‘THE NINETEENTH CENTURY PHILIPPINE ECONOMY. SOCIETY, AND THE CHINESE MEsTizos 61 The Changing Landscape of Philippine Economy and Society Many scholars consider the nineteenth century as an era of profound change in the Philippines. During this period, yast economic, political, social, and cultural currents were felt. Change, however, had its initial ripples in the previous century. By the late eighteenth century, the monarchy in spain experienced a dynastic shift from the Habsburgs to the Bourbons. Under the new leadership, Spain recalibrated colonial policies that would have an effect on the Philippines. With the goal of invigorating the profitability of the colonies like the Philippines, Bourbon policies and reforms were carried out. The first governor-general to the Philippines under the Bourbon mandate was José de Basco y Vargas who arrived in the Philippines in 1778. By the time Basco arrived, the Galleon Trade, the main economic institution existing in the Philippines, was already a losing enterprise. As Spain sought ways to salvage the dwindling economy of the empire, the global wave of industrialization became a silver lining. As many imperial powers in Europe and the West were undergoing industrialization, an increased demand for raw materials presented an opportunity to look into the agricultural potential of the Philippines. Thus, it was viewed that the transformation of the economy towards being export- oriented, harnessing the agricultural products that could be yielded from the archipelago, was the way to g0- : thi TTo better facilitate the envisioned reorientation of the ‘onomy, Basco established the Royal Philippine Company 1785 to finance agricultural projects and manage the new trade beng established between the Philippines and Spain (and Europe) 8 Well as other Asian markers. These changes, however, were — With lukewarm reception, Resistance also came from varies Scots like the Catholic Church that was not receptive 9” labor realignments entailed by the planned reforms, an’ Ws62. THE LIFE AND WoRKS OF JOSE RIZAL that were still holding on to the Galleon Trade. It also did not help that che Royal Philippine Company was fraught with issues of mismanagement and corruption. As Basco pushed for the reforms, he lifted a ban on Chinese merchants that reinvigorated internal trade; initialized the development of cash crop farms; relaxed certain policies that allowed the gradual opening ‘of Manila to foreign markets; and established the Tobacco Monopoly to maximize the production of this export good. Global events continued to affect the Philippines at the beginning of the nineteenth century. By 1810, the Mexican War of Independence rattled the Spanish empire, as it would eventually lead to the loss of the precious Latin American colonies. With this came the eventual end of the Galleon Trade which became a concern in the Philippines. As the Philippine economy hung in the balance, policies were recalibrated and with the eventual closing of the Royal Philippine Company, Manila was opened to world trade by 1834. As a result, foreign merchants and traders came and eventually resided in Manila and took over the role of financing and facilitating the burgeoning agricultural cash crop, export-oriented, economy. Some of the major investments came from British and American traders that set up merchant houses in Manila. The rapid development of the economy began to flow in the Philippines through cash crops. By the first half of the nineteenth century, majority of the exports of the Philippines came from cash crops like tobacco, sugar, cotton, indigo, abaca, and coffee. The importance of land became more evident as cas crops became the major source of revenue in the colony. As the Provinces shifted to cultivating cash crops, land ownership a" snuseoett began to be a concern. The farmers felt the presst® of the economy while the hacenderos grabbed the opportu" For example, when ’ ) a small land 3 d moneys ie vould er ndowner needed capital ani ve gage in a pacto de re etrol ent Buaranteein, venta, an agreem 6 that he could buy the land back at the same P"™THE NINETEENTH CENTURY PHILIPPINE ECONOMY SOCIETY, AND THE CHINESE MesTizos 93 at which it was sold. However, it became difficult to buy back land given the continuously increasing demand of the economy and the renewals of the sale, which further buried the farmers to indebtedness. Eventually, they would forfeit the land and would be forced to become tenant farmers, or kasamd. Aside from this mode, land acquisition also came in the form of land-grabbing. As the growing economy required better management of lands, inguilinos emerged, renting land to sublet it to smaller farmers. These factors would bring change to the social stratification in the countryside that, as the next chapter will show, did not continue without tensions and contestations. The Chinese and Chinese Mestizos The sectors that greatly benefited from the changing economy were the Chinese and the Chinese mestizos. Since Pre-colonial times, the natives of the Philippines had had trade relations with the Chinese. During the height of the Galleon Trade, it was also Chinese products that comprised most the 800s being traded. The influx of Chinese settlements in the thilippines made the Spaniards suspicious of the Chinese. These feelings led to stringent state policies towards the sangley ‘anging from higher taxes, the restriction of movement with the establishment of the Chinese enclave (the Parian), to actual Policies of expulsion. The Chinese, however, proved to be “necessary outsiders” Selilippine colonial economy and society. Although the ‘hallards were wary of the Chinese, they realized the importance Mt the latter played in sustaining the economy. From the 800ds loaded on the galleons to the development of retail trade, hinese enlivened the economy. Eventually and gradually, itteme integrated into colonial society, siving rise to Matriages with indios that gave birth to Chinese mestizos. * Chinese mestizos assumed an important role in the economy they 364 THE LIFE AND WORKS OF JOSE RIZAL all throughout the Spanish colonial period. They influenced the changing economy in the nineteenth century by purchasing land, accumulating wealth and influence. Impact on Life in the Colony The economic developments, as mentioned, precipitated social, political, and cultural developments as well. For example, the new economy demanded a more literate population to address the rising need for a more professionalized workforce to man the trading activities in Manila and other centers. This demand compelled the issuance of the colonial government order in 1836 that required all towns to set up primary schools to teach the population how to read and write. It eventually led to the passage of an education decree in 1863 that mandated free primary education. Eventually, the nineteenth century also gave birth to many schools that addressed the growing demand for more professionals. Schools like Ateneo Municipal were established during this time. The complex nature of the developing economy also allowed the government to intensify bureaucratization and to streamline colonial governance. As Manila became a trading center, it became a viable destination for people seeking better opportunities or those wanting to escape the worsening conditions in the farmlands. The increased rate of internal migration raised several concerns. One, people flocked the centers of trade like Manila. Overcrowding implied issues in living quarters, sanitation and Public health, and increase in criminality, Two, the continuous movement of people made tax collection extra difficult. In ordet to mitigate these concerns, one measure implemented was the 1849 decree of Governor-General Narciso Claveria that urge! the people in the colony to adopt surnames, With the caalas? Ree rere ak ae tomer ae eee pele and forbade changing names at will. Tose" like the registration and possession Of3 THE NINETEENTH CENTURY PHILIPPINE. ECONOMY, SOCIETY, AND THE CHINESE MESTIZOS 65 cedula personal bearing one’s name and residence, the colonial government sought to have a better surveillance mechanism. To help carry out policies better, the guardia civil was eventually established. As the new economy afforded the colonial state new opportunities, it also prompted the state to be more regulatory and to assert its authority. Renegotiating Social Stratification The Philippine society felt the impact of the developing economy. As a result, social relations underwent redefinitions and the changing dynamics brought about a renegotiation of social stratification. With the growing relevance of the mestizo population, new lines were drawn with the following social strata: Wealthy pure-blooded native supposedly descended from the kadatoan class Chino infiel Non-Catholic pure blooded Chinese Principalia As the Spaniards lost economic power in the nineteenth century, they asserted dominance by virtue of their race. This ‘ssue brought complications with the rising principalia and mestizo populations who realized their indispensable position m Society as movers and facilitators of the economy. The "enegotiation continued throughout the century as the mestizos66 THE LIFE AND WORKS OF JOSE RIZAL and principalia elite eventually demanded social recognition that the pure-blooded Spaniards had consistently denied them. These wealthy mestizos and members of the principalia continued to amass economic and cultural capital. They also availed themselves of the opportunity to obtain higher degrees of education not only in the Philippines but also in Europe. These activities augmented their relevance in society as it was from these ranks that articulations of nationalism would emerge.