Economic Achievements of Spaniards

1. Introduction of new plants and animals from Mexico;

2. The establishment of new industries;
3. Opening of the Manila Acapulco Trade;
4. The founding of the Economic Society of Friends of the Country;
5. Tobacco Monopoly;
6. Creation of the Royal Company of the Philippines;
7. The opening of the Philippines to World Trade

Introduction of New Plants and Animals

The early Spanish Colonizers introduced new plants in the Philippines. These are the following:

 Achuete  Beans  Peanuts

 Cacao  Maize (Corn)  Chico
 Coffee  Maguey  Papaya

The following animals were likewise introduced into the country.

 Cattle  Fighting roosters  Ducks

 Goats  Carabaos  Pigeons
 Horses  Chickens  Swans
 Sheep  Geese

Introduction of New Industries

The early Spanish missionaries introduced new industries in the Philippines. They taught the Filipinos
better methods of farming, cattle ranching, the making of candles and soaps, the construction of stone
houses, the building roads, bridges, and irrigation dams, the distillation of wines from native plants, the
manufacture of lime and bricks, the quarrying of adobe stones for construction purposes, and the
weaving of hats and mats from buri and pandan fibers.

Under Spanish Authorities patronage the coconut, hemp, sugar, and tobacco became the major
industries in the Philippines.

GALLEON

GOVERNOR GENERAL JOSE BASCO Y. VARGAS (1778-1787)

- The most economically-minded Spanish Governor General.

- Appointed Governor General of the Philippines by King Carlos III.
- His policy was to develop the natural resources of the Philippines so as to make her financially
independent of Mexico.
BASCO AND ECONOMIC PROGRESS

BASCOS GENERAL ECONOMIC PLAN

Aims: to foster Philippine Agriculture, Commerce, and Industries

System of Rewards- He offered prizes to all person who could excel in the cultivation of cotton, mulberry
trees, and spices; to those who could manufacture silk, porcelain, hemp, flax, and cotton; to those who
could develop the mines of gold, iron, copper, and thin; to those who could make useful inventions; and
to those who could distinguish themselves in arts and sciences.

Governor General Basco issued circulars on better methods of producing cotton, silk, sugar and other
commodities. He ordered the planting of 4,000,000 mulberry trees in Camarines in order to foster the
silk industry.

On March 20, 1784 he issued a decree providing that the lands, carabaos and farm implements of the
farmers could not be arrested or jailed during the time of planting and harvesting of crops.

Three Outstanding Events during Basco’s Admininistration contributed to Philippine Economic

Development:

1. The founding of the Economic Society of Friends of the Country in 1781;

2. The establishment of the tobacco monopoly in 1782; and
3. The creation of the Royal Company of the Philippines in 1785.

Economic Society of Friends of the Country

To implement his General Economic Plan Governor General Jose Basco Y Vargas founded the
Economic Society of Friends of the Country.

This society was inaugurated in Manila on April 26, 1781, with Ciriaco Carvajal member of the
Manila Audencia. As first president.

1784- first shipment of indigo to Europe.

1824- it imported martines (birds) from China to fight the locust that were destroying Philippine
crop.

1829- it imported machines for huling rice from Cadiz, Spain.

1837- it awarded a prize of P1000 to Dr. Paul de la Gironiere, for raising good coffee in his plantation
in Jala Jala.

1853- It awarded P2000 and a gold medal to CandidoLopez Diaz, a Filipino inventor, for inventing a
machine for cleaning hemp fibers.

Imported Agricultural Implements, cotton, seeds and spinning machinery from the United States.
 Tobacco Monopoly (1782-1882)

-A government Monopoly of tobacco was establish by Basco on March 1, 1782 persuant to king
Charles III’s royal decree of February 8, 1780.

Francisco Leandro De Vianna

- Royal fiscal assigned in Manila to devise a plan allowing the Philippines to raise revenues on its
own and thus be able to supplement the Spanish subsidy.
- He was the first one to proposedcreating a tobacco monopoly.
- De Vianna reasoned that “Tobacco was a product widely consumed throughout the islands, with
a market of roughly one million”. He projected earnings as much as P400,000 from the venture.

Basco adopted De Vianna’s proposal. So that after studying the proposal, Basco sent his plan to establish
large-scale tobacco production in the colony under complete ownership and management by the
colonial government of Spain.

What probably perked up the ears of the Spanish King about Basco’s plan was its “selling point” to make
the Philippine colony financially “self-sufficient”. The King of Spain issued a royal decree on February 9,
1780 setting in motion Basco’s Plan.

TOBACCO MONOPOLY PROVISIONS:

1. Cagayan Valley, Nueva Ecija, Marinduque and the Ilocos provinces were required to cultivate
tobacco and the farmers were given strict quotas to be raised annually.
2. All tobacco crops in theseareas were sold to the government, which undertook the manufacture
of cigars and cigarettes and their sale to the public.
3. The cultivation of tobacco outside the provinces selected to grow tobacco was
prohibited;
4. Contraband sale of tobacco was also prohibited;
5. The government had the exclusive right to purchase all tobacco products, to inspect
and classify the tobacco plant, and to prepare and manufacture cigar and cigarettes;
and
6. The government had the right to prohibit the exportation or importation of tobacco
by any agency not connected with the government.

WINE MAKING MONOPOLY

Real Campania de Felipinas

-also known as “Royal Company of the Philippines”, was establish on March 10,
1785 by Charles II under Governor General Jose Basco’s implementation.
Aims of Royal Company of the Philippines:
1. To promote the progress of the Philippines by improving the foreign trade of
the colony with Spain; and
2. To develop the natural resources of the Philippines by encouraging industry,
manufacturing, and agriculture.

Trade and Industries during Spanish Colonization