CHAPTER 5:

THE NINETEENTH
CENTURY
PHILIPPINE
ECONOMY, SOCIETY, AND
THE CHINESE MESTIZOS
The Changing Landscapes of

Philippine
Economy and Society
 Dynastic shifts of Spain from Habsburgs to the
Bourbons.

 The House of Habsburg (traditionally

spelled Hapsburg in English), also called
House of Austria was one of the most
influential and outstanding royal houses of
Europe.

 The House takes its name from Habsburg

Castle, a fortress built in the 1020s in
present-day Switzerland, in the canton of
Aargau, by Count Radbot of Klettgau, who
chose to name his fortress Habsburg.

 The House of Habsburg became extinct in

the 18th century. The senior Spanish branch
ended upon the death of Charles II of Spain
in 1700 and was replaced by the House of
Bourbon.
 The House of Bourbon is a European royal
house of French origin, a branch of the
Capetian dynasty. Bourbonic kings first ruled
France and Navarre in the 16th century. By the
18th century, members of the Spanish
Bourbon dynasty held thrones in Spain,
Naples, Sicily, and Parma. Spain and
Luxembourg currently have monarchs of the
House of Bourbon.

 When the Bourbons inherited the strongest

claim to the Spanish throne, the claim was
passed to a cadet Bourbon prince, a grandson
of Louis XIV of France, who became Philip V
of Spain.
 Governor-General José Basco y
Vargas – the first Governor-general
under the Bourbon Mandate (1778-
1787).

 He was a naval officer of the

Spanish navy who served as the
53rd governor of the
Philippines under the Spanish
Empire, from 1778 to 1787. He was
one of the most economic
minded governors-general that
served in Spanish ruled Philippines.
 While Europe and the West were
undergoing industrialization, Jose
Basco found the Philippines to have
a great potential for raw materials.

 What does the Philippines offer to

cope up with the advancement?

 Basco established the Royal

Philippine Company in 1785 to
manage the new trade between
Philippines, Spain, Europe as well
as Asian Markets.

 The reform met lukewarm

reception, namely, from the
Catholic Church that still holding of
the Galleon Trade.
The Galleon Trade
 When the Spaniards came to the Philippines,
our ancestors were already trading A Spanish
Galleon with China, Japan, Siam, India,
Cambodia, Borneo and the Moluccas. The
Spanish government continued trade relations
with these countries, and the Manila became the
center of commerce in the East.

 The Spaniards closed the ports of Manila to all

countries except Mexico. Thus, the Manila–
Acapulco Trade, better known as the "Galleon
Trade" was born.

 The Galleon Trade was a government monopoly.

Only two galleons were used: One sailed from
Acapulco to Manila with some 500,000 pesos
worth of goods, spending 120 days at sea; the
other sailed from Manila to Acapulco with some
250,000 pesos worth of goods spending 90 days
at sea.
 The lifting of the ban to Chinese Merchant initiates a
big leap to the development of CASH CROP.

 Cash Crop – crops cultivated for export.

 Established the Tobacco Monopoly

 By 1810, the Mexican War of Independence rattled the

Spanish empire.
 The closing of the Royal Philippine Company opened
Manila to world trade by 1834.

 Foreign merchants (British and American) eventually

took over the financing and economy.

 What is the impact of the pacto de retroventa to small

land owner?
 What is the impact of the pacto de
retroventa to small land owner?

 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.
The Chinese and
Chinese Mestizos
 Sangley – a term that proliferated in the
Spanish Philippines to refer to people of pure
Chinese descent; came from Hokkien word
“seng-li” meaning business.

 The Spaniards were suspicious of the Chinese,

however, they proved to be “necessary
outsiders” in the Philippine colonial economy
and society.

 Intermarriages between Chinese and the indios

gave birth to Chinese mestizos.
 Mestizo – a person with mixed ancestry – one
parent is Chinese or Spaniard and the other is a
native.
 Life in the
Impact on

Colony
 The new economy demanded a more literate population.

 The decree of free primary education to teach the

population on how to read and write.

 Ateneo Municipal was established to address the

growing demand for more professionals.

 The escape of the population from the farmlands to the

trading centers.

 What were the negative effects of the overpopulation?

 In 1849, Governor-General Narciso Claveria decreed

“catalogo de apellidos” which required the people in
the colony to adopt surnames.
 Cedula personal, a registration
bearing one’s name and residence, was
issued
 Social
Renegotiating
Stratification
Social Stratification – a way by which people
in a society are categorized based on socio-
economic as well as political standards.
 As the Spaniards lost economic power,
they asserted the dominance by
virtue of their race.

 This issue brought complication with the

rising principalia and mestizo who
realized their indispensible position
in the society as movers and facilitators
of the economy.

 It was from their ranks that articulation of

nationalism would emerge.
Activity: Script Writing

1. Present a script for a role play which

tackles the negative impact of Social
Stratification during the 19th Century.

2. Explain the role and act of each character

with its relevance to the 19th century
society.
Rubric / Criteria for Activity 1:
1. The subject matter is properly
infused in the role play.

2. Organization of thoughts

3. Creativity of the presentation

4. With maximum member

participation