ECONOMIC INSTITUTIONS IN THE PHILIPPINES UNDER SPAIN

1571

– 8 reales 1589 – 10 reales 1851 – 12 reales

In 1884…, the government instituted the “personal -a graduated poll-tax based upon the income of the taxpayer  ”  

The government required each province to meet the quota of  commodities assigned to it. The farmers of southern and central Luzon suffered suffered from this form of  taxation

 An annual subsidy that came from duties collected on goods from Philippines which were exported in Mexico

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In order:

To maintain spanish consular and diplomatic missions in any parts of Asia

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To provide pensions and gratuities to orphans and disabled soldiers in Spain’s wars in the colonies Source: Agoncillo and Guerero

- instituted in 1580 - men between the ages of 16 and 60  were  were required to render services for 40 days in the labor pool or polo - the laborers labo rers were called polistas  polistas - 1/4 real a day day plus rice to each polista  polista - reform decree of  1884 reduced the number of days required to 15 days

FORCED FORC ED LABOR

Conditions - it should be used only for necessary public works works and constructions constructions intended to to improve improve the community  - workers were to be paid in full for their work - alcaldes alcaldes mayor should consider conside r the physical physical condition of each e ach laborer laborer,, that is, the weak weak should not be overworked - laborers laborers should not no t be sent to to work work in distant lands - giving of servi se rvice ce should be timed so as not to interfere with the planting planting or harvest harvest seasons  

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http://ezinearticles.com/?The-Forced-Labor-and-Tribute-ofthe-Filipinos-During-Spanish-Period&id=5620267

The Filipinos were no better than slaves - no certainty in receiving their daily  allowances - made mad e to work beyond conditions - exemption through falla - resulted to  white collar collar job” job” mentality of  Filipinos “ 

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Basco’s Economic Reforms - came about during the period of “enlightened despotism” despotism” in Europe (1757 (1757-1800) -1800) - Governor General Jose Basco y Vargas instituted reforms intended to free the economy from its dependence depende nce on Chinese Chin ese and Mexican trade.

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- “Economic Society of Friends of the Country”  was established in 1781 1781

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- also brought about the establishment establishment of the Tobacco Monopoly Monopoly 1781-1782 1781-1782

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http://www.philippine-hist http://www .philippine-history.org/galleon-trad ory.org/galleon-trade.htm e.htm

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http://www.britannica.com/EBchecke http://www .britannica.com/EBchecked/topic/9310 d/topic/931000/enlightened-desp 00/enlightened-despotism otism

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http://countrystudies.us/ http://country studies.us/philippines/5.htm philippines/5.htm

Tobacco Monopoly - established by Basco in 17811782 and lasted until 1881 - tobacco industry was placed under government control

Advantages - Philippines became self-sufficient - considerable profit prof it to the gov governmen ernmentt - placed large hitherto undeveloped lands under large-scale cultivation Disadvantages - insurmountable economic economic difficulties to Filipinos - food production declined - government government agents abusing their t heir authority  - bad habits among Filipino farmers http://www.philippine-history.org/galleon-trade.htm

- Encomienda, from the word~ Encomendar [to entrust] - A revenue getting Hispanic Institution introduced to the Philippines via Mexico - A feudal institution to REWARD deserving generals and conquerors during the Reconquista FEUDAL LORDS = ENCOMIENDEROS - A GRANT GRANT TO A MERITORIOUS MERITORIOUS SPANIA SPANIARD RD TO EXERCISE CONTROL OVER A SPECIFIC PLACE INCLUDING ITS INHABITANTS Teodoro Teodoro Agoncillo, History of the Filipino People 

encomienda (ānkōmyān`dä) ānkōmyān`dä) [Span. encomendar= to to entrust], system of tributory labor established established in Spanish  America. Developed Developed as a means means of securing an an adequate and cheap labor supply, the encomienda was first used over the conquered Moors of Spain. Transplanted to the New World, it gave the conquistador control over the native populations populations by requiring them to pay tribute from fr om their  lands, which were "granted" to deserving subjects of the Spanish crown. http://encyclopedia2.thefreedictionary.com/Encomienda+sy stem

Purpose of Encomienda: 1. To orga rganize the colony 2. To ind indoctr octrin ina ate the nati native ves s Teach Catholic doctrines

Kinds of Encomienda 1] Royal or Crown- land reserves for the crown and included principal towns and ports, like Bagumbayan [Luneta], Malabon Malabon,, Navotas Navotas,, Santa Ana

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2] PrivatePrivate- were granted to the individu individuals als who  were  were either Kigs’s Proteges or men who served ser ved with Sampalok,, Pandakan Pandakan,, merit during Conquest,like, Sampalok

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Batangas at Bataan

ENCOMENDERO ENCOMENDERO authorized to collect Tribute of 8 reales yearly in cash or in kind from all 19- 60 years old Filipino Males of Private Encomiendas. > ¼ of the total collection went to the encomendero, another portion the priests and the remaining to the government.

Duties of an ENCOMENDERO: > keep peace and order > assist missionaries in teaching Christian gospel to the residents Benefits of an ENCOMENDERO: > impose tribute according to the limit and kind set by the higher authorities

GALLEON TRADE

What IS A GaLLEON TRADE? T RADE?

*also known : Manila-Acapulco Trade (Spanish Spanish:: Galeones de Manila-Acapulco (Tagalog Tagalog:: Kalakalang Kalak alang Galyon ng Maynila at   Acapulco  Acapu lco)

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*Trading *Trading between Manila in Spanish East Indies (present day-Philippines), and  Acapulco  Acapulc o, New Spain (present-day Mexico). *A trade monopoly of the Spanish government government of the t he importation and exportation of various products in the country that lasted for more than 250 years . (1565-1815) *The only chief source s ource of  official as well as individual income in the the colony. colony. http://www.philippinehistory.org/galleon-trade.htm

The Manila-Acapulco galleon trade began when Andrés de Urdaneta, sailing in convoy under Miguel López de Legazpi, Legazpi, discovered a return route from Cavite City to Mexico in 1565. a well-known circumnavigator before his stint as an Augustinian priest, the galleons, (one galleon at a time) plied the trans-pacific from the Philippines to Mexico. it would take four months of sailing from Manila (which actually landed first in Cebu) to Acapulco, New Spain (presentday Mexico).

http://en.wikipedia.org/wiki/Manila_galle http://en.wi kipedia.org/wiki/Manila_galle ons

The Manila-Acapulco trade route started in 1568 and Spanish treasure fleets (white) and its eastwards eastwards rivals , the Portuguese India Armadas routes of 1498-1640 (blue).

http://oh-wheezers.blogspot.com/2010/10/manila http://ohwheezers.blogspot.com/2010/10/manila-acapulco-ga -acapulco-galleon-trade.html#axzz22 lleon-trade.html#axzz22BrJZ2wL BrJZ2wL

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*The Galleon trade had funds called Obras Pias ( “pious works – foundations which invest their money in in trade and devotes the profit profit to charitable charitabl e works works ) which whic h were were donated by rich people people for charity charity.. - CLERGY – CLERGY – heaviest investor in the galleon trade . *obras pias was controlled by the friars friars *Some friars borrowed money from the funds and most often, the money mone y was Never returne returned. d.

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• The Manila Galleon Galle on was the single biggest piece of evidence attesting to the importance of the Philippines to Spain then. Manila became a trading and transshipment transship ment port for Spain where men and merchandise could be picked up and transported to  Acapulco,  Acapulco, Mexico Mexico.. • Asian countries such as China, Japan, India, Siam, Moluccas brought their products to Manila to to be sold to Spanish Spani sh traders who exported them to Mexico, where they w were ere sold at high profit. p rofit. • However , in the late 16th century, SPAIN closed the colony colony to foreign commerce and allowed allowed only 2 countries : CHINA and MEXICO .

RESTRICTIONS imposed by spain (1593) RESTRICTIONS *Galleon traders were allowed only one port of entry in Mexico  – ACAPULCO – ; *Only two ships each year to trade , 1 incoming and another outgoing ; *Galleon traders were allowed no more than P250 000 worth of exports from manila and no more than P500 000 worth of imports i mports from Mexico .

Silver bullion

minted coins

*In the book, After the Galleons, Benito Legarda sites that during the galleon trade, 99% of goods arriving the Philippines were Mexican silver headed for China. In those times, a piece of gold in China was equivalent to 6 to 8 pieces of silver, while in Europe, a piece of gold was equivalent to 13 pieces of silver. The chinese could only sell their commodities on a wholesale basisto a government appointed committee committee , which in turn distributed the commodities to retail merchants in the colony .

*Exports to acapulco consisted mainly of chinese and other Oriental goods brought by the chinese merchants ; only a negligible portion of these exports were truly philippine products. about 90% of bulk of items leaving the Philippines were Chinese origin, and only 10% was sourced from the Philippines such as gold, pearls and plants.

NEGATIVE NEGATIVE AND POSITIVE EFFECTS OF GALLEON TRADE NEGATIVE EFFECTS -The economy of Philippines slowed down -The basic agricultural production were set aside due to the prioritization of its commercial aspect like abaca and tobacco -The Spaniards forgot that it was not only the galleon trade were the source of income of the government -, many people died as since the boat sank a couple of times because of an overload in goods like gold and silver. silver.

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http://wiki.answers.com/Q/What_are_the_effects_of_the_Man ila_Galleon_Trade

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*POSITIVE EFFFECTS  -They were able to prolonged the colony of  Spain ( for spain ) -It was the main source of income i ncome for both the government government and the church leadership leade rship -It maintained the natural resources of the country  -It opened the doors to the westerned countries for the conceptualization and adaptation adaptatio n of  the modern technologies -It manifested a cultu cultural ral exchange for the Filipinos and foreigners -Obras Pias http://wiki.answers.com/Q/What_are_the_effects_of_t he_Manila_Galleon_Trade

End of the Galleon trade *Revolution in Mexico *Constant attacks attacks by pirat pirates es in in the Pacific *The galleon trade stopped when Mexico declared independence from Spain *Because it was always raided and sinking, the King of Spain had to abolish the Galleon tr trade ade

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principles of enlightenment Pedro Rodriguez de Campomanes : economic development developmen t through agriculture agricultu re and industry.

Governor general Jose Basco y Vargas  – arrived in 1781  – 1781 : Real Sociedad Economica de Amigos del Pais

Jose Basco y Vargas as president businessmen,  – inventors, inven tors, excelled in in the sciences, liberal arts and engineering.  – Self- sufficient , self-reliance cash rewards to  – plant cash crops

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MAGTANIM AY DI BIRO.

Governor general Simon Salazar de Anda encourage the  – establishment of an economic society  – little improvement kingdom of Hyder Ali of   – Mysore Ramon Ysasi and  – Miguel Antonio Gomez Source:: Basques in the Source Philippines by Marciano R. de Borja

LEGACY  form of socialization shared issues issues publicly   ways  ways to improv improve e agriculture, agriculture, industry and other other fields ields were discussed in public

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Royal Company of  the Philippines (Real  Compana de Filipinas)

March 10, 1785 King Charles III Governor General Jose Basco y   Vargas  Vargas To reorient the entire commercial system of the t he Philippines Charter: Charter: 25 Years Years Capital Stock: P 8 000 000

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The Monopoly of trade between Spain and the Philippines

The exemption from taxes of tobacco shipments

SPAIN

Abolition of the old restrictions prohibiting the exportation of Asian goods to Spain Privilege to use the flag of the Spanish Royal Navy on its vessels Privilege to buy guns and ammunition from government factories

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1792 They began to lose money  1803 Charles IV succeeded privileges Granted additional privileges Charter: Extended by 15 years Capital Stock: P 12 000 000 September 6, 1834 The Company was abolished because of  bankruptcy. 

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REFERENCE: Philippinealmanac.com

Infrastructure, Telecommuni elecommunications cations and Public Utilities Dev Development elopment The Ferrocarril de Manila [120 mi. up to Dagupan] The only railway line in the  Archipelago  Archipelago Constructed using mainly Filipino Labor Labor and operated regularly before be fore the outbreak outbreak of the Philippine Philippine Revolution in 1896.

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Compañia de los Tr Compañia Tranvias de Filipinos 

Established in Manila, 1885 by Jacobo Zobel Zangroniz and Adolfo Bayo

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Tranvia de vapor [steam-powered]

Calesa and Carre Carretela tela

Puente Colgante st - 1 Suspension bridge now Quezon Quez on Bridge Bridge

Thank You for Listening