Considerable quantities of coarse canvas and striped cloths are manufactured from cotton in the province of Ylocos; and in those in the more immediate vicinity of the capital, the striped cloths called “tapis” are universally worn by the native women over their petticoat. None of these articles except the Abaca rope are exported, and probably the whole of the cloths might be imported at a cheaper rate than they are made. The Phillippine Company, by a mistaken policy, expended large sums in endeavoring to render these manufactures articles of export to Spain and the Americas; but after heavy and repeated losses, the attempt was at length abandoned.

I am not certain whether there was not a clause in their charter, obliging them to attempt this; and from the interfering spirit of Spanish legislature throughout the last two centuries, it is more than probable it was so. For the Company must have seen the impropriety of endeavoring to establish manufactures in a country so thinly populated, and where the little security for property or power of enforcing contracts, must have exposed them to a thousand losses unknown in Europe.

This last circumstance is one which is at all times a severe check on the prosperity of any undertaking in this country. The most shameless frauds are daily committed, particularly by the Chinese and Chinese Mestizos, and for these there is no resource; complaint is unavailing, for the trouble of obtaining redress is greater than the injury, and it is a matter of common conversation—how so and so has been cheated in his contracts. They appear to mistake indolence for compassion, and allow themselves to be robbed with impunity, rather than pursue the offender, or, should they do so, the magistrate to whom they apply is but too apt, if the affair is intricate, to mistake procrastination for deliberation, and thus the culprit escapes unpunished. The losses of private merchants and the individuals in this way, would, if enumerated, exceed belief. Another and a most serious drawback to the commercial prosperity of the Phillippines, has been the negligence or ignorance, or both which have prevented the establishment of bonded warehouses, or a system of drawback duties on re-exportations. A glance at their position, and the consideration of the monsoons, will convince any one, that this was of all things that for which ample provision should have been made; and it would be no exaggeration to say, that this commerce would in a few years have increased tenfold with China alone, had this plan been adopted. The enormous duties and vexatious spirit of the Chinese government, together with, what must doubtless be often the case, the fleecing combinations of the Hong merchants;[102] would long ago have driven every vessel from their ports, could another have been found near enough to insure a supply of goods, which, from the enterprising spirit of the Chinese, could not have failed. Manila is this port. From Amoy and Nankin, the granaries and workshops of the eastern provinces, the most fertile and commercial part of the empire, it is but a short run to Manila; and thus, when the Chinese could freely trade in their favourite article, opium,[103] and find too an assortment of European and Malay goods, while the European could complete his investment of funds with the valuable produce of China,[104] without the expense of the measurement duties, and while the Malay could trade with both, an emporium might have risen, inferior only perhaps to Batavia or Calcutta.

An attempt was made in 1817, by a Spanish merchant, to commence something of this sort. He purchased a quantity of Turkey opium from an American, with an understanding that it was to be reshipped, on payment of a small additional duty. It was so, but a quantity of the opium was plundered from the custom-house godowns, and the proprietor was told “that the king was not responsible for losses.”

Plan of the environs, and a portion of the coast and bay adjacent to the city of Manila, 1779 (?)

[From original MS. map (in colors), in Archivo general de Indias, Sevilla]

It would be foreign to the object of a cursory sketch like the present to enter farther into the details of this subject. Enough has been said to bear out an assertion, which those who are acquainted with the trade will not think exaggerated, that had this system been fairly and equitably established, one half of the trade to China would before this have centered at Manila; and it is only at Manila that the advantages of such a transit could have been unknown or neglected in the 19th century. I proceed to make some observations on the capital and its inhabitants.[105]

PART II