o

CHAPTER 5

THE NINETEENTH CENTURY PHILIPPINE

ECONOMY, SOCIETY, AND THE CHINESE
MESTIZOS

o fully appreciate the details of Rizal's life related in the previous chapter, one needs to locate him within
the wider context
of the Philippines in the nineteenth century. This chapter will discuss the changing landscape of
Philippine economy in the nineteenth century and describe how these developments had an impact
on the society in which Rizal grew up, matured, and eventually was martyred. It will begin by
looking at the tremendous economic development starting in the late eighteenth century as a product of
multiple factors. The chapter will then map the effects of economic developments on Spanish
policies on education, social life, and the people of the Philippines. The role of an important
population, the Chinese mestizos, in Philippine life and economy will also be noted. These Chinese
mestizos will be located in the context of the changing social stratification in the Philippines.
60 THE LIFE AND WORKS OF JOSÉ RIZAL
THE NINETEENTH CENTURY PHILIPPINE ECONOMY.

SOCIETY, AND THE CHINESE MESTIZOS

61

LEARNING OBJECTIVES
The Changing Landscape of Philippine Economy and Society
At the end of this chapter, the students should be able to:
A locate Rizal's life in the Philippines within the wider context of the
developments in the nineteenth century; explain the important role of the Chinese mestizos and
their ranks within the changing Philippine economy and society; and discuss the interplay
of several factors that contributed to the changing landscape of Philippine society
and economy.
VOCABULARY
Many scholars consider the nineteenth century as an era of profound change in
the Philippines. During this period, vast 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
cash crop - crops cultivated for export decree – an order issued by a legal
authority; a policy pronouncement Galleon Trade – From 1565–1815, this was the form
of trade between the Philippines and Mexico. The galleons would sail to Mexico loaded with
goods and return to the Philippines carrying the payment in silver. insulares - pure-blooded
Spanish born in the Philippines mestizo - a person with mixed ancestry-one parent is
Chinese or Spanish and the other is a native; an important sector of the population in nineteenth
century Philippines merchant houses – firms established in Manila and other cities by foreign
traders pacto de retroventa – an agreement that allowed a landowner to sell his/her land with the
guarantee that he/she could buy the land back at the same price Parian - Chinese enclave
established in 1581 outside the walls of Intramuros. The Chinese were forced to live in the
Parian. peninsulares - pure-blooded Spanish born in Spain principalia – wealthy pure-blooded
natives said to have descended from the kadatoan class sangley - a term that proliferated
in the Spanish Philippines to refer to people of pure Chinese descent; came from the Hokkien
word “seng-li” meaning business
social stratification - a way by which people in a society are categorized based on Socio economic as
well as political standards
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 go.
To better facilitate the envisioned reorientation of the economy, Basco
established the Royal Philippine Company in 1785 to finance agricultural
projects and manage the new trade being established between the Philippines
and Spain (and Europe) as well as other Asian markets. These changes,
however, were met with lukewarm reception. Resistance also came from various
sectors like the Catholic Church that was not receptive of the labor realignments
entailed by the planned reforms, and traders
62 THE LIFE AND WORKS OF JOSÉ RIZAL
THE NINETEENTH CENTURY PHILIPPINE ECONOMY

SOCIETY, AND THE CHINESE MESTIZOS

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 kasamá. Aside from this mode, land
acquisition also came in the form of land-grabbing. As the growing economy required
better management of lands, inquilinos 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

that were still holding on to the Galleon Trade. It also did not help that the 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 cash crops became the major
source of revenue in the colony. As the provinces shifted to cultivating cash crops, land
ownership and management began to be a concern. The farmers felt the pressure of
the economy while the hacenderos grabbed the opportunity. For example, when a small
landowner needed capital and money, he would engage in a pacto de retroventa, an
agreement of sale guaranteeing that he could buy the land back at the same price
ement

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 goods being traded. The influx of Chinese
settlements in the Philippines made the Spaniards suspicious of the Chinese. These
feelings led to stringent state policies towards the sangley ranging 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” in Philippine colonial
economy and society. Although the Spaniards were wary of the Chinese, they realized
the importance that the latter played in sustaining the economy. From the
goods loaded on the galleons to the development of retail trade, the Chinese
enlivened the economy. Eventually and gradually, they became integrated into colonial
society, giving rise to intermarriages with indios that gave birth to Chinese mestizos. The
Chinese mestizos assumed an important role in the economy
64 THE LIFE AND WORKS OF JOSE RIZAL
THE NINETEENTH CENTURY PHILIPPINE ECONOMY.
SOCIETY, AND THE CHINESE MESTIZOS

all throughout the Spanish colonial period. They influenced the changing economy in
the nineteenth century by purchasing land, accumulating wealth and influence.
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.
Impact on Life in the Colony

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:

Peninsular

Insular
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 order to mitigate these concerns, one measure implemented was the 1849
decree of Governor-General Narciso Claveria that urged the people in the colony
to adopt surnames. With the catalogo de apellidos drawn up, the colonial
government assigned surnames to people and forbade changing names at will.
Together with more policies like the registration and possession of a
Mestizo
Pure-blooded Spaniard born in the Iberian Peninsula (i.e., Spain) Pure-blooded Spaniard
born in the Philippines Born of mixed parentage, a mestizo can be: Spanish mestizo - one parent is
Spanish, the other is a native; or Chinese mestizo - one parent is Chinese, the other is a native

Wealthy pure-blooded native supposedly descended from the kadatoan class Pure-blooded
native of the Philippines Non-Catholic pure blooded Chinese
Principalia

Indio Chino infiel

As the Spaniards lost economic power in the nineteenth century, they asserted
dominance by virtue of their race. This issue brought complications with the rising
principalia and mestizo populations who realized their indispensable position in society
as movers and facilitators of the economy. The renegotiation continued throughout
the century as the mestizos
66 THE LIFE AND WORKS OF JOSÉ RIZAL
THE NINETEENTH CENTURY PHILIPPINE ECONOMY

SOCIETY, AND THE CHINESE MESTIZOS

ACTIVITY 2 Life in a Cigar Factory

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.
Read the following excerpts about the cigar factories in Manila in the nineteenth
century.

Note: As the economy developed with tobacco being one of the most profitable crops,
cigars became a prime export from the Philippines. This allowed the proliferation of
cigar factories in Manila that often employed women, called cigarreras. In the
following excerpts, you will get glimpses about the life in a cigar factory.
ACTIVITY 1
ОЇ
era:

Summative Activity

Create a worksheet containing the table illustrated below. Write the changes and
developments that were felt in the nineteenth-century Philippines. After listing the
changes, plot them within Rizal's biography and write which aspects you think
had a direct or indirect impact on Rizal while citing events in his life.

Change and Development

Relation to Rizal's Life
Economic
ABOUT THE WORK IN THE FACTORY: From foreign observers: I was surprised by
the order and decency which reigned over the multitude of women and young
girls; they certainly did not belong to the lowest rung of society and usually worked
by families. All were silent and none said a word but their eyes functioned very
effectively and their hands even more so. I noticed the celerity with which the
women rolled each cigar and pasted both ends. However their work was not
considered done until after both ends of the cigar were cut following a given model
and afterwards strictly inspected by the maestra of the section. Then only was the
cigar allowed to be part of a pack of 32; a thousand packs made up one chest and 500,
a half chest.
Political
Socio-cultural
68 THE LIFE AND WORKS OF JOSÉ RIZAL
THE NINETEENTH CENTURY PHILIPPINE ECONOMY, CO
SOCIETY, AND THE CHINESE MESTIZOS

ABOUT THE STRUGGLES OF THE CIGARRERAS: From a complaint as

reported by an inspector: The many abuses committed by the soldiers against the
female workers of the factory (if the abuses cannot be stopped) might cause the
closing down of the factory as a result of manpower shortage. These workers are
mostly the poor and needy people of the towns of Obando, Polo
to follow them to fields and forest. They (the cigarette workers) were only allowed to
go after much begging on their part and after bribing the soldiers. With this kind of
behavior it is certain that very soon the workshops of this factory shall run out of
employees. This is why I bring all these to your knowledge so that the Central
Government can adopt measures to curb such abuses which may adversely affect the
factory established in that area.

Source: Camagay, Maria Luisa, “The Cigarreras of Manila” Philippine Studies vol. 34 no. 4 (1986): 507-517.

Questions for Reflection

seek employment in the establishment, starting either as bustaquems or sorters of
tobacco until they learn how to make cigars. They live miserably in the nearby
poblaciones and go to their homes only during fiestas or after having been
paid their wages. However, a group of soldiers would get together at night and
search their homes under the pretext of looking for tulisanes and then would
mercilessly maltreat them. On the night of March 20 of this year (1856) at 12
midnight, a maestra by the name of Maria Tac came to me weeping to denounce the
abuses of these soldiers. While she and her son and two other companions were
sleeping, the door was forced open and four or five armed men broke into it
and searched the house and their belongings for smuggled items. Not having found
more than a peso and some cuartos which they took, they left uttering profanities,
showing no respect for the maestra. The following day I went to see the
gobernadorcillo of the mestizos to present the attached report. Without knowing what
decision was taken in this regard, all I assure you is that the money taken was not
returned and the abuses continue to be committed.
On the night of the 14th of this month between 9 and 10 in the evening, some
soldiers led by their lieutenant, while on patrol in barrio Dampalit, met female
cigarette workers residing in other towns and forced the workers
Divide the class in groups of five members and discuss the following questions. Prepare
a short report and share your discussions with the class:
1. What can you say about the conditions of the
cigarreras in Manila? What do these excerpts reveal about the life in
nineteenth century Manila? 3. How can these excerpts be related to a discussion
about the situation of women in nineteenth century Manila?
nings for
some cwing no
SUMMARY

This chapter aimed to situate Rizal's life within the larger context of the nineteenth
century. It focused on the economic and social developments in the century that
shaped the world in which Rizal lived. The Philippines, being part of the wider
Spanish empire, underwent changes when the Spanish Crown also had a dynastic shift
in the eighteen century. With this came the Bourbon reforms that brought new
policies of economic
70 THE LIFE AND WORKS OF JOSÉ RIZAL
THE NINETEENTH CENTURY PHILIPPINE ECONOMY

SOCIETY, AND THE CHINESE MESTIZOS

: 71
reorientation for the colonies. With the development of the cash crop economy and
the opening of Manila and other cities to world trade, the economy boomed in the
nineteenth century.
This development in the economy also had a profound impact on the social
and political landscapes. The new economy resulted in changes in policies about
education and heightened the surveillance and regulatory mechanisms of the state.
Furthermore, the nineteenth century saw the ascendance of the mestizo and
principalia classes that would assert their relevance in society.
Thus, it is not wholly surprising that men like José Rizal flourished in the nineteenth
century. Born in the 1860s, Rizal grew up in a society in transitions. By the time he
matured, he could reap the benefits of the changes that were happening. As he
was exposed to higher education, he would realize that as much as economic
development was a reality, so was the rising inequality and worsening conditions for
the majority of the population.
Schumacher, John N. 2009. The Philippine background. In The
Propaganda Movement, 1880-1895, pp. 1-18. Quezon City:
Ateneo de Manila University Press. Schumacher, John N. 2008. Rizal in the context
of the
nineteenth-century. In The Making of a Nation, pp. 16–34.
Quezon City: Ateneo de Manila University Press. Wickberg, Edgar. 1964. The
Chinese mestizo in Philippine
history. Journal of Southeast Asian History 5(1): 62–100. Wickberg, Edgar. 2000.
The Philippine Chinese before 1850.
In The Chinese in Philippine life, 1850–1898, pp. 25–36. Quezon City: Ateneo de
Manila University Press.

LORE

BIBLIOGRAPHY AND FURTHER READINGS

Abinales, Patricio and Donna Amoroso. 2005. State and society

in the Philippines. Pasig: Anvil Publishing, Inc. Bankoff, Greg. 1996. Crime, society, and
the state in nineteenth
century Philippines. Quezon City: Ateneo de Manila
University Press. Camagay, Maria Luisa. 1986. The cigarreras of Manila.
Philippine Studies 34(4): 507–517. Diokno, Maria Serena I. 1998. The end of the
galleon trade.
Kasaysayan Series Vol. 4: Life in the Colony, pp. 7–25.
Hong Kong: Asia Publishing Company Limited. Diokno, Maria Serena I. 1998. The
economy transformed.
Kasaysayan Series Vol. 4: Life in the Colony, pp. 27–42. Hong Kong: Asia Publishing
Company Limited.