The neglected condition in which agriculture is in Filipinas, considered under this last aspect, and the backwardness in knowledge of the manipulations required in the preparation of its raw products for their consumption in trade, proceed from the following causes: (1) The lack of a stable and regular system of commerce which can assure to the inhabitants of the islands the annual exportation of the produce of an extensive agriculture. The foreign vessels resort to the ports there, some years in excessive number and others very infrequently; and this irregularity always produces an effect opposed to the interests of the colony. The extraordinary rise in prices—which during the last three years has reached a value double that from which the ability to sell at all times would enable the colony to gain a profit—and the consequent lack of commodities for supplying all the vessels, prevent them from returning in the following years; while the decline of prices below what is fair, caused by the non-arrival of ships, discourages large production in agriculture. The Indians are absolutely without capital and storehouses which would enable them to hold back their produce for another market. They are induced to cultivate the soil solely by their present advantage; they always sell, but they suffer from the stern law of trade which, although it flatters them in years of scarcity, equally tyrannizes over them in years of abundance—for they are always deceived regarding the actual prices of the general market, of which they are ignorant; and one year only of unsuccessful sales, whether from lack of foreign ships, or through the loss of their crops, will be a warning to them for a long time. In short, the agriculture of Filipinas at this time depends on the irregular and transient stimulus which is furnished to it by the peripatetic capital of the mestizo, who buys only in the years when he calculates that he must in view of the condition of the crops and the market, make a profit; while the Indian farmer always sows his seed heedless of results, and without the guidance of that elementary principle in affairs of commerce that the estimate of what he acquires ought to be based on a calculation of the market for it. For the corrective of this evil, and assuming that, for reasons that are rightful and conformable to sound policy (as I have set forth), the residence of foreigners in the islands ought not to be permitted, I find no other means than this, that the government encourage, by judicious measures, the direct and unlimited commerce of España with that colony—of which I shall speak in another chapter, [presenting] the rough sketch of a plan which ought to produce the following effects: (a) The definite and reliable annual exportation from those islands, not only of the great quantity of sugar, indigo, coffee, and other native products which are needed in the ordinary consumption of España, but of that which Spanish commerce can dispose of in the other nations and free ports of Europa. (b) The establishment of Spanish trading posts [factorias] in the interior of the provinces of Filipinas, which the Spanish mercantile interests will carry on for the sake of acquiring the agricultural produce at first hand, freeing the Indians from the oppressive rule of the mestizo trader, and forming contracts with them, at prices agreed upon, for a certain number of years.
[The backward condition of agriculture proceeds] (2) from the lack of great agricultural establishments. One of the causes for this is the fact that the capital of the islands, which ought to be employed for that object, has been diverted by the commerce of India, China, and Nueva España, which offers greater and quicker profits. The religious orders administer their estates as in mortmain, or by ecclesiastical rules. The Indians cultivate, not from inclination but through necessity, the little plots of ground on which they have fixed their abodes. They lack the buildings and appliances necessary for the preparation of the little sugar and indigo that they collect; and from that results the wretched and unreliable quality of those articles which so discredits them in the trade. They lack also the capital to incur the expenses of a regular plantation, and these enterprises require costly outlays at the start. But this cause of backwardness would be remedied by the impulse which would be given to commerce by the exportation of native products, which would attract to agriculture the capital which it has hitherto lacked, and by the special protection which the government can grant to large capitalists who may devote themselves to agriculture.
(3) From the ignorance of the Indians, not only of the various methods of making plantations, but of the means of preparing the raw materials for their employment in the trade—a cause which is so universal and so mischievous that the agricultural products of Filipinas, which ought to be, on account of their excellent character and the extent of territory of the islands, commodities which should supply all the markets of Europe and hold the first rank in quality, are the most scarce in general commerce, and moreover lowest in price, as I am going to prove by some instances. The sugar of Filipinas is today the most important commodity for exportation which the commerce there includes. The cultivation of the sugar-cane cannot be improved; but the manufacture of the sugar is so defective that, in spite of the superior quality of the cane, the sugar which is produced from it is inferior to that which is called terciado [i.e., brown] at Habana. Although in the market of Cadiz the white sugar from Habana is worth thirty-two to twenty-five silver reals, and the brown sugar twenty-six to twenty-eight, the white sugar of Manila is worth twenty-four to twenty-five[12]—that is, nine silver reals less than the former, and two or three reals less than the latter on each arroba. Consequently, the temporary privilege granted by his Majesty in exempting the products of Filipinas from duties is the only support of the expeditions which have come [thence] to the Peninsula; and it is unquestionable that when that privilege ceases that commerce will likewise come to a complete stop. For if from the twenty-four silver reals, the highest price at which an arroba of the Manila sugar can be sold, be deducted for duties eight reals and twenty-seven maravedís, the trader will receive a price of only nineteen silver reals, five cuartos; subtracting from this the fourteen and one-half reals of the prime cost at Manila (according to the latest information received), and the only profit left to him would be four reals, three maravedís—with which it is absolutely impossible for him to pay either the heavy freight charges on that commodity, or the interest on money and the insurance premiums, on a voyage three times as long as that from Habana. The low price [of sugar] in the market has no other cause than the lack of skill at Manila for manufacturing the sugar; this art is there found entirely in its infancy, and without any other method than that which, since very ancient times, the Chinese have taught them. [The sugar-makers have not proper machinery or appliances, or the knowledge, for any of the stages of the process; and their product is inferior, when it might be as good as that of Habana—or even better, if the same skill and care were used in making it as are used there. The above profit of nine reals on the arroba, if equally divided among the grower, the manufacturer, and the government (for duties which in that case should be imposed on the sugar), would yield each of them $300,000 annually, on the estimated production of 1,000,000 arrobas which would be practicable for Filipinas—to say nothing of the increased benefits to the laboring class—with improved methods of manufacture. To secure this, the government must be energetic in promoting large establishments there, and introducing machinery and skilled laborers. “The funds in the communal treasury of the Indians, which at the present time must reach about $300,000, and whose object is the benefit of those same Indians,” might aid the government in meeting the expenses of such measures; the skilled artisans could instruct the Indian farmers in the new improved methods, and the industry would be almost perfected in two years’ time, at very little expense. Bernaldez describes in similar manner the deficiencies, possibilities, and needs of the indigo, coffee, and cacao industries, and urges the government to extend like care to these; what has been done thus far by the colonial government has been quite ineffective, because it has been in the form of proclamations and enactments which merely required small plantations to be made by all the inhabitants, but these failed because they disregarded the principles of political economy and made no provision for the individual interest of the cultivator.] There are, then, two means which ought to be adopted for the promotion of large plantations in Filipinas, incentive and instruction; and for this it is necessary to grant pecuniary rewards to the agriculturists, and furnish them with teachers from the near-by islands of Java or even Bourbon, where not only coffee but cacao is cultivated.
(4) And, finally, the cause which likewise exerts a powerful influence in [causing] the neglected and backward condition of agriculture is the slothfulness of the Indians and their absolute indifference to acquiring and keeping property. [This sloth is caused by the climate, the abundant supply of the necessities of life with little labor, and the hospitality which prevails among the natives;] and if it were not that in the capital and its adjacent provinces there has now been introduced a certain degree of decency and [even] luxury in some families of that class, it would be difficult to find any one to render service or to practice the useful arts that are necessary in villages. [With a people like this, it would be hazardous to attempt to compel them to work; but “even if they are naturally slothful, they have their likes and dislikes; and a wise government ought to avail itself of these two powerful resources to urge them to work.” The Indians dislike to pay direct taxes, and hate the collector of these; also they are passionately fond of cockfighting and spectacles of all sorts, and of office-holding; and if these characteristics are considered in the policy of the government much can be done to make them industrious. Bernaldez recommends: That a system of direct, unlimited, and regular commerce be established between España and Filipinas, for the purpose of maintaining a reliable and definite annual exportation of the latter’s products. That agricultural establishments be protected by the government, being allowed (although at their own expense) the assistance of a band of irregular soldiers. That machines, tools, and other aids to agricultural production be admitted free of duties. That skilled workmen be taken to the islands as instructors in the manufacture of sugar and indigo, and cultivators of coffee, etc., with their machinery and tools; their salaries for three years and their transportation to Manila being paid from the communal funds of the Indians. That large rewards be paid to the farmers who shall make large plantations of coffee and other useful trees or establish the silk industry. That the owners of these large plantations shall be allowed to keep on their lands each a cockpit for his laborers, free of expense. That groups of Indians, Chinese, and mestizos, limited to twenty families each, who shall maintain an indigo or sugar plantation of a certain extent in good condition, shall be relieved from paying the tribute so long as the plantation is kept up. That every Indian who works for wages during five consecutive years, to the satisfaction of his employer, shall be perpetually exempted from tribute, the employer paying the laborer’s tax for twenty years. That the Indians and mestizos who cultivate large plantations on their own account shall have the preference for the offices in their respective villages. That the government of Filipinas take measures to avoid frauds in connection with these proposed changes.]
Of the anfion, or opium
[Bernaldez describes the efforts made by the English East India Company to import opium into China, although against the will of the Chinese government, and states that a certain amount is smuggled into Manila to supply the Chinese settled in Filipinas; he supposes that the prohibition of this trade in the islands arose from the fear of the governors that the Indians would become habitual users of this drug and thus be injured; but in his experience of seventeen years in various judicial positions in Filipinas he has never seen a scandalous case of opium inebriacy among the Chinese of Luzon, nor any Indian brought into court for using the drug; and “the Indians without exception regard the use of opium with the utmost indifference and contempt.” He thinks that it should not be prohibited in Filipinas, since its use appears not to injure the Chinese there, or to be necessary for the Indians; while the islands] ought not to be deprived of a revenue that is exceedingly lucrative for agriculture, commerce, and the treasury; of an article which in the order of nature ought to be exclusively for the trade and benefit of the islands; and a means by which the Manila commerce would draw great wealth from China, turning in its favor, and with large sales, the balance of trade with that empire, which is now and always has been against Manila. A chest of opium, weighing one pico of Filipinas or 100 cates of China (each of 22 onzas), would probably cost the Manila grower for all expenses at most 100 pesos; and its value in China is usually 1,400 to 1,600 pesos. Add to this advantage that of the large and secure market which Filipinas has close at hand, since there would be annually consumed in China more than eight millions pesos’ worth of this article from the islands; this would permit all the extension which they choose to give to the cultivation of this article. And if 8,000 chests of opium produced in Filipinas would yield in China 12,000,000 dollars, the royal exchequer, which ought to secure its proportion of the great advantages to agriculture and commerce, could without any difficulty load that product with a duty so considerable that it would produce four to six millions of pesos a year. [Bernaldez therefore recommends: That the government, without abrogating the present prohibition of the importation and use of opium in the islands, give free permission to capitalists to cultivate the poppy and export opium from Filipinas; that the poppy-fields be close to the capital and enclosed; that the harvest be superintended by trustworthy persons from the revenue service, as is that of tobacco; and that the entire product be deposited in the magazines of the custom-house. That at the time of its exportation a duty of 25 per cent be collected on the value of the opium, at the prices current in China. That the concession of raising opium should be granted by preference to the planters who already are maintaining large plantations of sugar, indigo, coffee, and other useful products.]
Of the cotton manufactures
The Madrast commerce annually carries into Filipinas fabrics of cotton, called cambayas, to the value of $300,000 to $350,000, a sum which the traders carry back to their own country in cash, without taking away any natural or industrial product of Filipinas. Likewise the Chinese carry into the islands annually, by means of their champans, cotton fabrics with the names of manta Hipo, Chuapo, and others, to the value of $300,000, nearly all of which sum they carry back to their own country in cash. The Armenians of India and the Chinese had likewise the control, from the time of the conquest of the islands, of importing into them annually the enormous quantity of small cotton articles [pañuelos] and ordinary cambayas which the natives of the country consume, until intercourse with those coasts was interrupted in the late war with Inglaterra. Then necessity and the high price of those goods induced the natives of Filipinas to manufacture them, and in such abundance that the ships which arrived at Manila, after the peace, with those commodities suffered great loss; and from that time the importation of those fabrics ceased, and the natives continued to manufacture them in the country. This has not been the case, however, with the fine cambayas and kerchiefs from Madrast, nor with the cotton fabrics from China; for the former are dyed with the beautiful and permanent Indian colors, furnished by certain plants which are to this day unknown in Filipinas, and the latter [are desired] on account of the very low prices at which the Chinese sell them. Thus, although various manufacturers of Manila have attempted to weave and dye that class of goods, they have not obtained favorable results, and have abandoned to the Armenians and Chinese the exclusive provision of Filipinas with those commodities. It seems impossible that a colony in which is produced cotton of a quality superior to that of all the other colonies in Asia, whose natives are industrious, and where the general consumption of the country offers a large and sure market for cotton fabrics, must be dependent for its supply on foreign manufacturers, and carry on with them a commerce which is one-sided [pasivo] and ruinous. Nevertheless, the causes of this incongruity lie in the great population of India and China as compared with that of Filipinas, which causes the wages paid for the spinning of the thread (and it is this item which increases or diminishes the cost of the woven goods) to be very low; in the enormous crops of cotton which those countries produce as compared with that of Filipinas, which abundance causes a diminution in the price of the raw material there; and, finally, in the superiority of the dyes of India, which no colony has been able thus far to imitate.
In order to compensate for the cheapness of hand labor in the great populations of India and China, it is necessary that in Filipinas cotton-spinning machinery should be introduced, and that this project be encouraged by all means; that instructors in weaving and dyeing cambayas and kerchiefs be taken thither from Madrast, who shall at the same time introduce into Filipinas a knowledge of the plants from which the Oriental dyes are obtained, with the methods of planting and cultivating these—meeting this expense from the communal funds of the Indians. [These measures, and the promotion already urged for large plantations of cotton, would furnish employment to many natives of Filipinas, and “place in circulation within the country itself the $650,000 which annually are carried out of it in hard money to foreign lands for the value of the cambayas and other fabrics imported into it.” Moreover, a new and important line of goods would be added to the exports of Filipinas in these fine cotton fabrics, which would be equal to those of India and even cheaper; while the islands can always supply their own coarse cottons much more cheaply than these can be manufactured in España, an industry which should therefore be fostered in Filipinas. These coarse commodities could thus be supplied also to España, more cheaply than they can be manufactured there; thus Spanish commerce would be liberated from its present dependence upon foreign countries for them, and the money paid for them would instead go into the hands of Spaniards, in Spanish possessions. To secure these ends, the government of Filipinas should be cautious in imposing import duties on the fine foreign goods, gradually increasing them according to the ability of Philippine manufacturers to displace foreign goods by native products. Bernaldez therefore recommends: That encouragement and rewards be conferred on those who introduce cotton-spinning machinery; that instructors in weaving and dyeing be brought from India, as above mentioned; that the manufacture of coarse cotton fabrics in the islands be promoted; that duties on the fine goods should be gradually increased; that raw cotton be permitted free exportation from the islands; and that the authorities of the exchequer there confer on these matters with the local manufacturers and merchants.]