The foreign trade of the Philippines has always been subject to great fluctuations, owing to insecurity under the Spanish administration, the dissatisfaction of the native population, and to the frequent insurrections. These influences have stood seriously in the way of developing the wealth of the islands. Under a new and progressive administration, there seems nothing to hinder this fertile region from becoming one of the garden spots of the earth.
The possession of the Philippines, on the other hand, has not been a bonanza for Spain. The expenses cut so deeply into the revenues that only a few hundred thousand dollars were left yearly for the Crown. The bulk of the proceeds fell into the hands of the clergy and the hidalgos sent out to rob and misgovern the islands. In addition to the revenue to the King, a few Spanish noblemen receive pensions from the islands. Among them are the Duke of Veragua and the Marquis of Barboles, both descendants of Columbus, and, as such, entitled to the consideration of the United States.
The Spanish receipts were obtained from everything that could be taxed. In truth, the people were crowded wherever possible, and kept in a state of chronic irritation. This made them ready at any time to break into rebellion.
As regards the expenditure of money raised by taxes and duties, while little came to the King, little also was spent on the islands. It was estimated that in 1897 $611,145 were expended on public works. If so, the result was not visible in the Philippines. If a bridge was needed, the neighboring nations had to raise the money to build it. More money was set aside for the transportation of priests than for the building of railroads, while ten times the sum was donated to the support of the Manila Cathedral than was spent for new improvements and for public instruction. Regarding the officials, from the Governor-General down to the lowest underling, they seem to have devoted themselves industriously to robbing the people with one hand and the Government with the other, sowing a crop of hatred of the Spaniard and of Spanish rule, which had its harvest in the fierce insurrection of 1896–98.
