Gift to Spain of unusable tobacco.The fourth, fifth, and sixth classes, the greater part of which would before have been burnt, but which now form no inconsiderable portion of the total crop, are in the open markets positively unsaleable, and can be utilized only in the form of a bonus to Spain, which annually receives, under the title of atenciones á la peninsula, upwards of 100,000 cwt. If the colony were not compelled to pay half the freight of these gifts, Spain would certainly ask to be relieved of these “marks of attention.” Seeing that, according to the decision of the chief of the Government, the greater portion of this tobacco is of such inferior quality that it can find no purchaser at any price, it is impossible that its value should cover either the cost of carriage or the customs duty. Moreover, this tobacco tribute is a great burden on the colonial budget; which, in spite of all deficits, is charged with the expenses attending the collection of the tobacco, its packing, its cost of local transport, and half the expense of its carriage to Europe.
De La Gandara’s proposed reforms.Dated in March, 1871,—the beginning of a Golden Age, if De La Gandara’s plans had been carried out and his expectations realized,—there exists an excellent statement from the Intendant-General addressed to the Minister of Colonies pointing out plainly to the chief of the Government the disadvantages arising from this mode of administration, and urging the immediate repeal of the monopoly. In the next place proof was adduced, supported by official vouchers, that the profits derived from the tobacco monopoly were much smaller than usual. The total average receipts of the tobacco administration for the five years 1855 to 1869, according to official accounts, amounted to $5,367,262; for the years 1866 to 1870, only $5,240,935. The expenses cannot be accurately estimated, inasmuch as there are no strict accounts obtainable; if, however, the respective expenses charged in the colonial budget are added together, they amount to $3,717,322 of which $1,812,250 is for purchase of raw tobacco.
Slight real profit from monopoly.Besides these expenses pertaining exclusively to the tobacco administration there are still many other different items to be taken into account; yet the cost incurred in this branch of the service would be saved, if not altogether, at least largely, if the State surrendered the tobacco monopoly. The total of the disbursements must certainly, at the very lowest, be estimated at $4,000,000; so, therefore, the State receives only a net profit of $1,357,000; but even this is not to be reckoned on in the future, for if the Government does not speedily cease carrying on this trade, they will be forced into a very considerable and unavoidable expense. To begin with, they must erect new factories and warehouses; better machinery must be bought; wages will have to be considerably increased; and, above all, means must be devised to pay off the enormous sum of $1,600,000 in which the Government is indebted to the peasants for the crops of 1869 and 1870, and to assure cash payments for future harvests. “This is the only possible mode of preventing the decay of the tobacco cultivation in the different provinces, as well as relieving the misery of the wretched inhabitants.”
Suffering and law-breaking thru the monopoly.Later Agius proved how trifling in reality the arrears were on account of which the Government was abandoning the future of the colony, and showed the misfortunes, of which I shall mention, these briefly, only a few, resulting from the monopoly. He represented that the people of the tobacco district, who were the richest and most contented of all in the Archipelago, found themselves plunged into the deepest distress after the increase of the Government dues. They were, in fact, far more cruelly treated than the slaves in Cuba, who, from self-interested motives, are well-nourished and taken care of; whereas in this case, the produce of compulsory labor has to be delivered to the State at an arbitrarily determined price; and even this price is paid only when the condition of the treasury, which is invariably in difficulties, permits. Frequently their very means of subsistence failed them, in consequence of their being forbidden to carry on the cultivation; and the unfortunate people, having no other resources for the relief of their pressing necessities, were compelled to alienate the debtor’s bond, which purchased the fruits of their enforced toil but had been left unpaid. Thus, for an inconsiderable deficit of about $1,330,000, the whole population of one of the richest provinces is thrown into abject misery; a deep-rooted hatred naturally arises between the people and their rulers; and incessant war ensues between the authorities and their subjects. Besides which, an extremely dangerous class of smugglers have recently arisen, who even now do not confine themselves to mere smuggling, but who, on the very first opportunity presented by the prevailing discontent, will band themselves together in one solid body. The official administrators, too, are charged with gross bribery and corruption; which, whether true or not, occasions great scandal, and engenders increasing disrespect and distrust of the colonial administration as well as of the Spanish people generally.[13]
Growing opposition to the monopoly.The preceding memorial has been not only written, but also printed; and it seems to indicate that gradually in Spain, and also in wider circles, people are becoming convinced of the untenableness of the tobacco monopoly; yet, in spite of this powerful review, it is considered doubtful by competent judges whether it will be given up so long as there are any apparent or appreciable returns derived therefrom. These acknowledged evils have long been known to the Colonial Government; but, from the frequent changes of ministers, and the increasing want of money, the Government is compelled, so long as they are in office, to use all possible means of obtaining profits, and to abstain from carrying out these urgent reforms lest their own immediate downfall should be involved therein. Let us, however, cherish the hope that increased demand will cause a rise in the prices; a few particularly good crops, and other propitious circumstances, would relieve at once the Insular Treasury from its difficulties; and then the tobacco monopoly might be cheerfully surrendered. One circumstance favorable to the economical management of the State that would be produced by the surrender of the tobacco monopoly would be the abolition of the numerous army of officials which its administration requires. This might, however, operate reversely in Spain. The number of place-hunters created must be very welcome to the ministers in power, who thus have the opportunity of providing their creatures with profitable places, or of shipping off inconvenient persons to the Antipodes from the mother-country, free of cost. The colony, be it known, has not only to pay the salaries, but also to bear the cost of their outward and homeward voyages. Any way, the custom is so liberally patronized that occasionally new places have to be created in order to make room for the newly-arrived nominees.[14]
Wholesale rate highter than retail government.At the time of my visit, the royal factories could not turn out a supply of cigars commensurate with the requirements of commerce; and this brought about a peculiar condition of things; the wholesale dealer, who purchased cigars in very considerable quantities at the government auctions, paying higher than the retail rates at which he could buy them singly in the estancia. In order, therefore, to prevent the merchants drawing their stocks from the estancias, it was determined that only a certain quantity should be purchased, which limit no merchant dared exceed. A very intricate system of control, assisted by espionage, had to be employed in seeing that no one, through different agents and different estancias, collected more than the authorized supply; and violation of this rule, when discovered, was punished by confiscation of the offender’s stock. Everybody was free to purchase cigars in the estancia, but nobody was permitted to sell a chest of cigars to an acquaintance at cost price. Several Spaniards with whom I have spoken concerning these strange regulations maintained them to be perfectly just, as otherwise all the cigars would be carried off by foreigners, and they would not be able themselves in their own colony to smoke a decent cigar.
Money juggling.There was, as I afterwards learnt, a still more urgent reason for the existence of these decrees. The government valued their own gold at sixteen dollars per ounce, while in commerce it fetched less, and the premium on silver had, at one time, risen to thirty-three per cent. Moreover, on account of the insufficient quantity of copper money for minor currency, the small change frequently gained a premium on the silver dollar, so much so that by every purchaser not less than half a dollar was realized. In exchanging the dollar from five to fifteen per cent discount was charged; it was profitable, therefore, to purchase cigars in the estancias with the gold ounce, and then to retail them in smaller quantities nominally at the rate of the estancias. Both premiums together might in an extreme case amount to as much as forty-three per cent.[15]
Directions for cultivating tobaccoNot being able to give a description of the cultivation of tobacco from personal knowledge and experience, I refer the reader to the following short extract from the Cartilla Agricola:—
Directions for preparing and laying out the seed beds.—A suitable piece of land is to be enclosed quadrilaterally by boundaries, ploughed two or three times, cleared of all weeds and roots, made somewhat sloping, and surrounded by a shallow ditch, the bed of which is to be divided by drains about two feet wide. The soil of the same must be very fine, must be ground almost as fine as powder, otherwise it will not mix freely and thoroughly with the extremely fine tobacco seed. The seed is to be washed, and then suspended in cloths during the day, in order to allow the water to run off; after which it is to be mixed with a similar quantity of ashes, and strewn carefully over the bed. The subsequent successful results depend entirely upon the careful performance of this work. From the time the seed first begins to sprout, the beds must be kept very clean, in dry weather sprinkled daily, and protected from birds and animals by brambles strewn over, and by means of light mats from storms and heavy rains. After two months the plants will be between five and six inches high, and generally have from four to six leaves; they must then be replanted. This occurs, supposing the seed-beds to have been prepared in September, about the beginning or the middle of November. A second sowing takes place on the 15th of October, as much as a precaution against possible failure, as for obtaining plants for the lowlands.
Concerning the land most advantageous to the tobacco and its cultivation. Replanting of the seedlings.—Land must be chosen of middling grain; somewhat difficult, calciferous soil is particularly recommended, when it is richly fertilized with the remains of decayed plants, and not less than two feet deep; and the deeper the roots are inserted the higher will the plant grow. Of all the land adapted to the tobacco cultivation, that in Cagayan is the best, as from the overflowing of the large streams, which occurs every year, it is laid under water, and annually receives a new stratum of mud, which renders the soil particularly productive. Plantations prepared upon such soil differ very materially from those less favored and situated on a higher level. In the former the plants shoot up quickly as soon as the roots strike; in the latter they grow slowly and only reach a middling height. Again in the fertile soil the plants produce quantities of large, strong, juicy leaves, giving promise of a splendid harvest. In the other case the plants remain considerably smaller and grow sparsely. Sometimes, however, even the lowlands are flooded in January and February, and also in March, when the tobacco has already been transplanted, and grown to some little height. In that event everything is irreparably lost, particularly if the flood should occur at a time when it is too late to lay out new plantations. High-lying land also must, therefore, be cultivated, in the hope that by very careful attention it may yield a similar return. In October these fields must be ploughed three or four times, and harrowed twice or thrice. On account of the floods, the lowlands cannot be ploughed until the end of December, or the middle of January; when the work is light and simple. The strongest plants in the seed-beds are chosen, and set in the prepared grounds at a distance of three feet from each other, care being taken that the earth clinging to the roots is not shaken off.