RIZAL REVIEWER (FINAL TERM)
The Nineteenth Century Philippine
Economy, Society, and the Chinese
(this covers the Galleon trade, the banning of
Chinese merchants and the reinstallation of the
Chinese mestizo back into the society)
 Description of the 19th Century Philippines:
This is an ERA OF PROFOUND CHANGE
Shift of power from Hasburg to Bourbon Dynasty
Because of this colonial policies were changes, thus
affecting the Philippines.
BOURBON POLICIES AND REFORMS
Jose’ de Basco y Vargas – the First Governor
General of the Philippines (arrived in 1778)
>THE GALLEON TRADE (1565-1815)
The Galleon Trade is the Spanish sailing
vessel that crosses the Pacific, and became the
bridge for trading between the Chinese an
Europeans.
This caused Manila to be one of the
greatest PORTS in the world. But sadly, this trade
benefited the Chinese more because of their
products and silks, and caused a negative effect on
the Philippine economy because the Chinese items
were treated as more superior.
>The Galleon trade was already established when
Basco arrived. The Galleon trade was crucial in
salvaging the power of the empire because this was
also the time of industrialization, which means
many countries are demanding raw materials.
Because of this PHILIPPINES BECAME EXPORT
ORIENTED.
>THE ROYAL PHILIPPINE COMPANY (1785)
This finance agricultural projects and
manages the new trade between the Philippines
and Spain (& Europe) as well as other Asian
markets. (They monopolized all trade and banned
the Chinese mestizos who were relevant in forming
the Filipino Middle Class)
Note: They banned the Chinese because they
benefited more from trades and became suspicious
when there was an influc of Chinese settlements.
This heavily affected the trade and economy of the
Philippines, as taxes were raised, restrictions for
the sangleys, the Chinese enclave (the Parian)
The Catholic church was not too supportive
of the labor alignments of this reform, and other
traders were still holding on to the Galleon Trade.
Why the Royal Philippine Company Failed
 People still preferred the Galleon Trade
 The weakened Economy because of the ban
of the Chinese Mestizos
 Corruption and Mismanagement
Because of this, Basco lifted the ban on Chinese
Merchants to strengthen trade once more. They
relaxed certain policies and allowed Manila to be
open to foreign markets and establish the
TOBACCO MONOPOLY to maximize production of
this goods.
>Mexican War of Independence (1810)
The Spanish lost their grasp on the Latin
American Colonies, causing the end of the
Galleon trade.
>Closing of the Royal Philippine Company
Manila was then opened to world trade by
1834. This strengthened trade and invited
foreign merchants and traders to take on
the role of financing and facilitating other
economic projects in the Philippines.
MAJOR INVESTMENTS WERE FROM BRITISH
AND AMERICAN TRADERS who then
decided to reside in the Philippines.
 >Cash Crops Developed They realized that they are valued in the society as
movers and facilitators of the economy, thus they
Tobacco, Sugar, Cotton, Indigo, Abaca and
demand social recognition that the Spaniards have
Coffee
denied them.
LAND BECAME MORE IMPORTANT
- They are the holders of economic and
cultural capital
LAND OWNERSHIP ISSUES - They have the opportunity to obtain higher
Farmers felt the pressure of the economic degrees of occupation (not only in the
system while hacenderos grabbed the Philippines but also in Europe)
opportunity.
 PACTO DE RETROVENTA
Agreement of sale with small landowners that they
could buy the land back at the same price (which
wasn’t likely to happen because of the increasing
demand of the economy and renewals of sales)

This caused farmers to forfeit the land and be

forced to become tenant farmers (Kasama)

 INQUILINOS (THE MIDDLE MEN)

They rent the land to sublet it to smaller farmers.

>RENEGOTIATING SOCIAL STRATIFICATION

Social Strata:
Peninsular Pure-Blooded Spaniard (born in Spain)
Insular Pure-Blooded Spaniard (born in Philippines)
Mestizo Half-Blood, 1 Native Parent and 1 Foreign Parent
(Can be Spanish Mestizo or Chinese Mestizo)
Principalia Wealthy Pure-Blooded Native, supposed descendant
from the kadatoan class
Indio Pure-Blooded Native of the Philippines
Chino Infiel Non-Catholic Pure Blooded Chinese

THE SPANIARDS LOST ECONOMIC POWER IN THE

NINETEENTH CENTURY, BUT THEY COMPENSATED
BY ASSERTING DOMINANCE BY VIRTUE OF THEIR
RACE.

 Rising Conflict with the Principalia and

Chinese