The Former Philippines Thru Foreign Eyes · Chapter 34State of the Philippines in 1810 (4)
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“The latter,” says the Duke de Almodovar, “is reduced to two principal points: the first of which is the carrying of the trade of Asia with that of America and Europe; and the second, the encouragement and improvement of the productions and manufacturing industry of the Islands. The one is the essential attribute of the company, constituting its real character of a mercantile society; and, in the other respect, it becomes an auxiliary of the government, to whom the duties alluded to more immediately belong.” If to the above we add the preamble of the 43rd article of the new decree of 1803, the recommendation, made to the company, to contribute to the prosperity of the agriculture and manufacturing industry of the Islands, will appear as a limited and secondary consideration; for even if the question were carried to extremes, it could never extend to any more than the application of four per cent of the annual profits of the company indistinctly to both branches. If, however, any doubts still remained, the explanation or solution recently given to this question would certainly remove them; because, by the simple fact of its being expressed in the latter part of the aforesaid 43rd article, Profit percent to go to Spain.“That the above-mentioned four per cent was to be laid out, with the king’s approbation, in behalf of the agriculture and manufacturing industry of Spain and the Philippine Islands,” it is clear that the king reserves and appropriates to himself the investment of the amount to be deducted from the general dividends, in order to apply it where and how may be deemed most advisable. Consequently, far from considering the company in that respect under an obligation to contribute to the improvement of the Philippines exclusively, the only thing that can be required of them, when their charter is withdrawn, is, the repayment to the royal treasury of the four per cent on their profits, for a purpose so vaguely defined. In following up this same train of argument, it would seem that, in order to render the amount to be deducted from the eventual profits of the company, in the course of time, a productive capital in the hands of the sovereign, the funds of the society not only ought not to be diverted to the continuation of projects which consume them, but, on the contrary, it is necessary to place at their disposal the direct means by which these funds can be increased, in order to make up to the company in some measure the enormous losses experienced of late years, and at once free their commerce from the shackles with which it has hitherto been obstructed.
Need of special privilegesFinally, after twenty-four years of impotent and gratuitous efforts in the Philippines, and of the most obstinate opposition on the part of their rivals, it is now time for the company, by giving up the ungrateful struggle, to reform in every respect their expensive establishment in Manila, and to direct their principal endeavors to carry into effect the project so imperfectly traced out in the new decree of 1803. The opinion of the most vehement enemies of the privileged bodies tacitly approves this exception in their favor. Adam Smith, avowedly hostile to all monopolies, feels himself compelled to confess that, “without the incentives which exclusive companies offer to the individuals of a nation carrying on little trade, possibly their confined capitals would cease to be destined to the remote and uncertain enterprises which constitute a commerce with the East Indies.”
Spanish commerce in its infancy.Our commerce, compared with that of other nations, notwithstanding what may be said on this subject, is most assuredly yet in a state of infancy. That with Asia, more especially, with the exception of the Royal Company, is almost unknown to all other classes. If it is, therefore, wished to exclude our many rivals from so lucrative a branch of trade as that which constitutes supplies for the consumption of the Peninsula and its dependencies, the means are obvious. The most material fact is in fact already done. The navigation to the various ports of Asia is familiar to the company’s navy; their factors and clerks have acquired a practical knowledge of that species of trade, essential to the undertaking, as well as such information as was at first unknown; but, after the great misfortune this body has experienced, it will be indispensably necessary to aid and invigorate them with large supplies of money, following the example of other governments in similar cases; in order that the successful issue of their future operations may compensate their past losses, and worthily correspond with the magnitude of the object.
Philippines a burden to Spain.This Asiatic colony, although considered as conferring great lustre on the crown and name of our monarch, by exhibiting the vast extent of the limits of his dominions, has in reality been, during a long series of years, a true burden to the government, or at least, a possession whose chief advantages have redounded in favor of other powers, rivals of our maritime importance. Notwithstanding all that has been said on the score of real utility, certain it is, that the Philippine establishment has cost the treasury large sums of money; although, within the last twenty-five or thirty years, it must be confessed that the public revenues has experienced a considerable increase, and, of itself, has become an object of some consequence to the state.
Profit from tobacco monopoly and foreign trade.Among the various causes which have contributed to produce so favorable an alteration, the chief one have been the establishment of the tobacco monopoly, on behalf of the crown, and the opening of the port of Manila to the flag of other nations, at peace with Spain. The first has considerably increased the entries into the public treasury, and the second has tended to multiply the general mass of mercantile operations, independent of the other beneficial effects this last measure must have produced in a country, whose resources, trade and consumption had, from the time of the conquest, experienced the fatal shackles imposed by jealousy and ignorance.
Improvement in public finances.The improved aspect the colony soon assumed, by the introduction of this new system, as was natural, awakened the attention of ministers, and induced them more easily to consent to the measures subsequently proposed to them, principally intended to place those distant dominions on a footing of permanent security, so as to enable them to repel any fresh attempts on the part of an enemy. As, however, the productions of the country increased, the public expenses also became greater, although always in a much smaller proportion, with the exception of the interval between the years 1797 and 1802, when the government, fearful of a second invasion, was compelled, at its own expense, to provide against the danger with which these Islands were then threatened. If, therefore, as appears from the official reports of the treasurer-general, Larzabal, in my possession, the receipts at the treasury, in 1780, amounted only to $700,000 including the situado, or annual allowance for the expenses of government sent from New Spain, and after the ordinary charges of administration had been paid, a surplus of $170,000 remained in the hands of the treasurer; at present we have the satisfaction to find that the revenue is equal to $2,625,176.50 and the expenses do not exceed $2,179,731.87 by which means an annual surplus of $445,444.62 is left, applicable to the payment of the debt contracted during the extraordinary period above mentioned, now reduced to about $900,000 and afterwards transferable to the general funds belonging to the crown.
Economy over Spanish-American colonial administration.With regard to the administrative system, it is in every respect similar to the one observed in our governments of America, with this difference only, that, in the Philippine Islands, greater economy prevails in salaries, as well as in the number of persons employed. In former times, the establishment of intendencies, or boards of administration, was deemed expedient in Manila, Ilocos, Camarines, Iloilo, and Cebu; but they were soon afterwards reformed, or rather laid aside, on account of their being deemed superfluous. I would venture to state the grounds on which this opinion was then formed; but, as the sphere in which the king’s revenue acts in these Islands increases and extends, which naturally will be the case if the plans and improvements dictated by the present favorable circumstances are carried into effect, I do not hesitate to say that it will be necessary again to appeal to the establishment of a greater number of boards for the management and collection of the various branches of the revenue, whether they are called intendencies, or by any other name; as it will be extremely difficult for the administration to do its duty, on the confined and inadequate plan under which it is at present organized.
Fiscal system.Under its existing form, it is constituted in the following manner: The governor of the Islands, in his quality of superintendent or administrator general, and as uniting in himself the powers of intendent of the army, presides at the board of administration of the king’s revenue, which is placed in the immediate charge of a treasurer and two clerks. The principal branches have their respective general directors, on whom the provincial administrators depend, and the civil magistrates, in the quality of sub-delegates, collect within their respective districts, the tributes paid by the natives in money and produce, and manage everything else relating to the king’s revenue. In ordinary cases, the general laws of the Indies govern, and especially are the ordinances or regulations of the Intendents of New Spain (Mexico) ordered to be observed in the Philippines. It ought further to be observed, that, in these Islands, the same as in all the vice-royalties and governments of America, there is a distinct body of royal decrees in force, which, in themselves, constitute a code of considerable size.
Opposition to tobacco monopoly.The process of converting the consumption of tobacco into a monopoly met with a most obstinate resistance on the part of the inhabitants, and the greatest circumspection and constancy were necessary for the governor, Don José Basco, to carry this arduous enterprise into effect. Accustomed to the cultivation of this plant without any restriction whatever, and habituated to its use from their infancy, it appeared to the people the extreme of rashness to seek simultaneously to extirpate it from the face of the greatest part of the Island of Luzon, in order to confine its culture within the narrow limits of a particular district. They were equally revolted at the idea of giving to a common article a high and arbitrary value, when, besides, it had become one of the first necessity. Every circumstance, however, being dispassionately considered, and the principle once admitted that it was expedient for the colony to maintain itself by means the least burdensome to the inhabitants, it certainly must be acknowledged that, although odious on account of its novelty and defective in the mode of its execution, a resource more productive and at the same time less injurious, could not have been devised. Hence was it that the partisans of the opposite system were strangely misled, by founding their calculation on false data, when they alleged that a substitute, equivalent to the increased revenue supposed to arise out of the monopoly of tobacco, might have been resorted to by ordering a proportionate rise in the branch of tributes. In fact, no one who had the least experience in matters of this kind, can be ignorant of the open repugnance the natives have always evinced to the payment of the ordinary head-tax (cedula), and the broils to which its collection has given rise. Besides, if well examined, no theory is more defective and more oppressive on account of the disparity with which it operates, than this same wrongly-boasted impost; for, however desirous it may be to simplify the method of collecting the general revenue of a state, if the best plan is to be adopted, that is, if public burdens are to be rendered the least obnoxious, it is necessary preferably to embrace the system of indirect contribution, in which class, to a certain degree, the monopoly of all those articles may be considered as included which are not rigorously of the first necessity, and only compel the individual to contribute when his own will induce him to become a consumer.
Doubling of insular revenue thru tobacco.Let this be as it may, certain it is, that to Governor Basco we are indebted for having doubled the annual amount of the revenue of these Islands, by merely rendering the consumption of tobacco subservient to the wants of the crown. It was he who placed these Islands in the comfortable situation of being able to subsist without being dependent on external supplies of money to meet the exigencies of government. It ought, however, to be remarked that, although they have been in the habit of receiving the annual allowance of $250,000 for which a standing credit was opened by the government at home on the general treasury of New Spain, considerable sums have, nevertheless, on various occasions, been remitted from the Philippines to Spain, through the channel of the Captain-General. * * * If these remittances have been suspended for some years past, it has evidently been owing to the imperious necessity of applying the ordinary proceeds of the revenue, as well as other extraordinary means, to unforeseen contingencies arising out of peculiar circumstances.
Tobacco belt.The planting and cultivation of tobacco are now confined to the district of Gapan, in Pampanga Province, to that of Cagayan, and to the small Island of Marinduque. The amount of the crops raised in the above three points and sold to the king, may, on an average, be estimated at fifty thousand bales, grown in the following proportion: Gapan, forty-seven thousand bales; Cagayan, two thousand, and Marinduque, one thousand. This stock, resold at the monopoly prices, yields a sum equal to about one million of dollars, and deducting therefrom the prime cost and all other expenses, legally chargeable on this branch, the net proceeds in favor of the revenue amount to $550,000 or upwards of one hundred twenty-two per cent. This profit is so much more secure, as it rests on the positive fact that, however great the quantity of the article sold furtively and by evading the vigilance of the guards, as the demand and consumption are excessive and always exceed the stock on hand, a ready sale cannot fail to be had for all the stock placed in the hands of the agents of the monopoly. From this it may also be inferred how much the net proceeds of this branch would be increased, if without venturing too far in extending the plantations and consequent purchases, care was taken to render the supplies more proportionate to the consumption; for, by a clear profit of one hundred twenty-two per cent, falling on a larger capital, it follows that a corresponding result would be obtained. In a word, the sales, far from declining or being in any way deemed precarious, are susceptible of a great increase, consequently this branch of revenue merits the serious attention of government beyond all others.
Defective sales system.It is, however, to be lamented that, instead of every facility being given to the sale of tobacco and the consumption thus encouraged, the public meet with great difficulties and experience such frequent obstacles and deficiencies in the supplies, that with truth it may also be said, the sales are affected in spite of the administrators themselves. In the capital alone it is a generally received opinion that a third part more would there be consumed, if, instead of compelling the purchaser to receive the tobacco already manufactured or folded, he was allowed to take it from the stores in its primitive state; and if the minor establishments in the provinces were constantly supplied with good qualities, an infinitely larger quantity might be sold, and by this means a great deal of smuggling also prevented. Such, however, is the neglect and irregularity in this department, that it frequently happens in towns somewhat distant from Manila, no other tobacco is to be met with than what the smugglers sell, and if, perchance, any is to be found in the monopoly stores, it is usually of the worst quality that can be imagined.
Loss from preventable causes.I pass over, in silence, the other defects gradually introduced, as evils, in a greater or lesser degree, inseparable from this part of public administration in every country in which it has been deemed necessary to establish monopolies; but I cannot refrain from again insisting on the urgency with which those in power ought to devote themselves, firmly and diligently, to the destruction of abuses which have hitherto paralyzed the progress of the branch in question, because I am well persuaded, that, whenever corresponding means are adopted, it will be possible in a short time to double the proceeds. What these means are, it is not easy, nor indeed essential, to particularize in a rapid sketch, like this, of the leading features and present state of the Philippine Islands. I shall, therefore, merely remark, that it will be in vain to wish the persons engaged in the management of this department to exert their real zeal and sincerely co-operate in the views of government, as long as they are not placed beyond the necessity of following other pursuits and gaining a livelihood in another way; in a word, unless they have a salary assigned them, corresponding to the confidence and value of the important object entrusted to their charge, no plan of reform can be rendered efficient.
Abuses by revenue officers.At the same time steps are taken to augment the revenue arising out of tobacco, it would be desirable, as much as possible, to improve the methods used with regard to those who gather in the crops, by endeavoring to relieve them from the heavy conditions imposed upon them; conditions which, besides exposing them to the odious effects of revenue-laws, by their very nature bring upon them many unpleasant consequences, and often total ruin. In order that a correct opinion may be formed of these defects, it will suffice to observe that, under pretext of preventing smuggling, the guards and their agents watch, visit, and, if I may use the expression, live among the plantations from the moment the tobacco-seedlings appear above ground, till the crops are gathered in. After compelling the Filipino planter to cut off the head of the stem, in order that the plant may not become too luxurious, the surveyors then proceed to set down, not only the number of plants cultivated on each estate, but even the very leaves of each, distinguishing their six qualities, in order to call the farmers to account, respectively, when they make a defective delivery into the general stores. In the latter case, they are compelled to prove the death of the plants and even to account for the leaves missing when counted over again, under the penalty of being exposed to the rigor of the revenue laws.
Burdensome and unprofitable inspection.It cannot indeed be denied that by this means two important objects are attained, at one and the same time; the one, the gradual improvement of the tobacco, and the other, the greater difficulty of secreting the article; but, on the other hand, how great are the inconveniences incurred? Independent of the singularity and consequent oppression of a regulation of this kind, as well as its too great minuteness and complication, it is attended with very considerable expenses, and renders it necessary to keep on foot a whole army of guards and clerks, who tyrannize over and harass the people without any real motive for such great scrupulosity and profusion. I make this observation because I cannot help thinking that the same results might nearly be obtained, by adopting a more simple and better regulated system. I am not exactly aware of the one followed in the Island of Cuba, but as far as I understand the matter, it is simply reduced to this: the growers there merely present their bales to the inspectors, and if pronounced to be sound and good, the stipulated amount is paid over to them; but if the quality is bad, the whole is invariably burnt. Thus all sales detrimental to the public revenue are prevented, and I do not see why the same steps could not be taken in the Philippine Islands. It must not, however, be understood, that I presume to speak in a decisive tone on a subject so extremely delicate, and that requires great practical information, which, I readily acknowledge, I do not possess. I merely wish by means of these slight hints, to contribute to the commencement of a reform in abuses, and to promote the adoption of a plan that may have for basis the relief of the growers, and at the same time advance the prosperity of this part of the royal revenue.
Coco and nipa wine monopoly.The monopoly of coco and nipa, or palm-wine, is a branch of public revenue of sufficient magnitude to merit the second place among the resources rendered available to the expenditure of these Islands, converted into a monopoly some years ago. In like manner as the consumption of tobacco, it has experienced several changes in its plan of administration, this being at one time carried on, for account of the king, at others, by the privilege being let out at auction; till at length the Board of Control, convinced of the great profit gained by the contractors, resolved at once to take the direction of this departure under their own charge, and make arrangement for its better administration. Having with this view established general deposits and licensed houses for the sale of native wine, with proper superintending clerks they soon began to reap the fruits of so judicious a determination. In 1780, the privilege of selling the coco and nipa wine was farmed out, to the highest bidder, for no more than $45,200 and subsequently the increase has been so great, owing to the improvements adopted, that at present net proceeds equal to $200,000 on an average may be relied upon. In proof of this, the proceeds of this branch, in the year 1809, may be quoted, when the total balances received at the Treasury, after all expenses had been paid, amounted to $221,426, in the following manner:
The prime cost and other expenses that year amounted to no more than $168,557 by which means, on the whole operation, a net profit of thirteen and one-half per cent. resulted in favor of the treasury.
Wine monopoly district.The monopoly of native wine comprehends the whole of the Island of Luzon, excepting the Provinces of Cagayan, Zambales, Nueva Ecija, Camarines and Albay, and is under the direction of three administrators, who act independently of each other in their respective districts, and have at their disposal a competent number of guards. These administrators receive in the licensed establishments the coco and nipa wines, at prices stipulated by the growers. That of the coco is paid for at the rate of two dollars per jar, containing twenty gantas, equal to twelve arrobas, seven azumbres and half a cuartillo, Castilian measure, and at fourteen reals in the places nearest the depots. The nipa wine is laid at six and one-half reals the jar, indistinctly; prices which, although extremely low, are still considered advantageous by the Filipinos themselves, more particularly when it is besides understood, that, from the circumstance of their being growers of this article, they are exempted from military service, as well as several other taxes and public charges.
Coco-wine.The coco-wine is a weak spirit, obtained in the following manner: The tree that produces this fruit is crowned by an assemblage of large flowers or corollas, from the center or calix of which issues a fleshy stem, filled with juice. The Indian cuts the extremity of this stem, and inclining the remainder in a lateral manner, introduces it into a large hollow tube which remains suspended, and is found full of sweet and sticky liquor, which the tree in this manner yields twice in every twenty-four hours. “Tuba”.This liquid, called tuba, in the language of the country, is allowed to ferment for eight days in a large vessel, and afterwards distilled by the Indians in their uncouth stills, which are no other than large boilers, with a head made of lead or tin, rendered tight by means of clay, and with a pipe frequently made out of a simple cane, which conveys the spirit to the receiving vessels, without passing, like the serpentine tube used in ordinary stills, through the cooling vats, which so greatly tends to correct the vices of a too quick evaporation. The tuba, obtained in level and hot situations, is much more spirituous than that produced in cold and shady places. In the first, six jars of juice are sufficient to yield one of spirit, and in the latter, as many as eight are requisite; a much greater number, however, would be wanted to rectify this spirit so as to render it equal to what is usually known by Hollands proof. I am not positively certain what degree of strength the coco-brandy, or as it is usually called coco-wine, possesses, but it is evidently inferior to the weakest made in Spain from the juice of the grape. The only circumstance required for it to be approved of, and received into the monopoly-stores, is its being easily ignited by the application of a lighted candle.
Nipa brandy.The nipa is a small tree of the class of palms, which grows in a very bushy form, and multiplies and prospers greatly on the margins of rivers and watery tracts of land. The tuba, or juice, is extracted from the tree whilst in its flowering state, in the same way as that of the coco, and afterwards distilled by a similar process; but it is more spirituous, from six to six and a half jars being sufficient to yield one of wine. The great difference remarked in the prices of these two species of liquor, arises out of the great number of uses to which the fruit of the cocal or coco tree is applicable, and the increase of expense and labor requisite to obtain the juice, owing to the great height of the plant, and the frequent dangers to which the caritones, or gatherers, are exposed in passing from one tree to another, which they do by sliding along a simple cane (bamboo).
Little drunkenness.The impost on, or rather monopoly of, native wine, is in itself little burdensome to the community, as it only falls on the lower and most dissipated orders in society, and for this reason it is not susceptible of the same increase as that of tobacco, of which the use is more general, and now become an object of the first necessity. The native of the Philippine Islands is, by nature, so sober, that the spectacle of a drunken man is seldom noticed in the streets; in the capital, where the most corrupt classes of them reside, it is admirable to see the general abstinence from a vice that degrades the human species. The consumption of the coco and nipa wine is, nevertheless, considerable, for it is used in all their festivities, cock-fights, games, marriages, etc. Accordingly if it is desired to augment the annual sale of these liquors, no way could be more efficient than to increase the number of their festive meetings, and seek pretexts to encourage public diversions, so long as these do not go contrary to the well-regulated order of society, and conflict with the duties of those who are intrusted with its superintendence.
Extension of monopoly urged.I am still of opinion, however, that, without resting the prosperity of this branch of the public revenue on principles possessed of so immoral a tendency, it might be rendered more productive to the treasury, if the monopoly could be introduced into the other districts adapted to its establishment. By this I mean to say that, as hitherto the monopoly has been partial, and enforced more in the way of a trial than in a general and permanent manner, much remains to be done, and consequently great scope is left for improvement in this department of the public revenue. This most assuredly may be attained, if all the local circumstances and impediments, more or less superable, which the matter itself presents, are only taken into due account, and proper exertions made to study and discover the various indirect means of increasing the total mass of contributions, by applying a system more productive and analogous to the nature of the Philippine Islands. With regard to the revenue of the two particular articles above treated on, I merely wish to make it understood that, far from introducing by means of the monopoly, a new vice into the provinces in which I recommend its establishment, it would rather act, in a certain degree at least, as a corrective to pre-existing evils, and the government would derive advantages from an article of luxury, by subjecting its consumption to the same shackles under which it stands in the northern provinces, where its administration is established and carried on for account of the royal treasury.
Former customs usage.In former times, when only vessels belonging to the Asiatic nations visited the port of Manila, with effects from the coast of Coromandel, or the China junks, and now and then a Spanish vessel coming from or going to the Island of Java, with spices for account of Philippine merchants, the receipt of duties was left in charge of a single royal officer, and the valuations of merchandise made by him, in concert with two merchants named by the government; but with the knowledge and assistance of the king’s attorney-general. The modifications and changes which have subsequently taken place in this department have, however, been frequent, as is evidently shown by the historical extract from the proceedings instituted before the Council of the Indies, by the merchants of Seville and Cadiz, in opposition to those of the Philippine Islands, printed in Madrid, 1736, in folio, by order of the said council; but as it does not enter into my views to speak of times so remote, I shall confine my remarks to this branch considered under its present form.