Economic condition

Year
1521

The Philippines enjoyed free trade China,

Thailand (Siam) Cambodia (kampuchea)
and Moluccas.
Year
1591

The galleon trade started between Acapulco

(Mexico) and Manila, under a Royal decree that
banned trade between Manila and Peru.
What is the name of the trade between
the Philippines and Mexico that began
in 1521?
• Manila–Acapulco galleon trade
• The Manila–Acapulco galleon trade finally
began when Spanish navigators Alonso de
Arellano and Andrés de Urdaneta discovered
the eastward return route in 1565.
Year
1593

The king issued a Royal Decree that limited

the capital investment to an outgoing galleon
at 250,000 peso and 500,000 pesos to incoming
galleon.
What is a royal decree?

• an order given by a king or

queen The soldiers read the
people a royal decree.
Year
1702

The capital investment for each trip going to

Mexico was raised to 300,000 pesos and
600,000 pesos for its return trip
Year
1734

The king issued another decree that raised

capital investment for outgoing galleons to
500,000 and one million pesos for the return
trip.
Year
1778

Governor-General Jose Basco arrived in

Manila and Launched economic reforms aimed
at making the colonial government self
sufficient.
What was the general economic plan of governor
general basco for the Philippines?

Filipino farmers and traders finally had a taste

of prosperity when Governor General Jose
Basco y Vargas instituted reforms intended to
free the economy from its dependence on
Chinese and Mexican trade. 
Year
1781

Gov. Gen. Basco established the sociedad

economica de amigo del Pais which has composed
of charitable Filipinos. The organization taught
modern agricultural methods that increased the
yield of new inventions which would benefit
commerce. It established agricultural schools, and
sold indigo to other countries.
Year
1782

Basco set up the Tobacco Monopoly with the

approval of the king. The tobacco monopoly
implemented strict regulations on the planting,
harvesting and selling of tobacco leaves. It
assigned specific land areas where tobacco
could be planted.
 What can tobacco be used for?

• Dried tobacco leaves are mainly used for smoking

in cigarettes and cigars, as well as pipes and
shishas. They can also be consumed as snuff,
chewing tobacco, dipping tobacco and snus.
Tobacco contains the highly addictive stimulant
alkaloid nicotine as well as harmala alkaloids.
Year
1784

Basco issued a law that prohibited the

foreclosure of a piece of land owned by a lender
to farmers. It also prohibited the imprisonment
of convicts during the planting and harvest
seasons.
Year
1789

Manila was gradually opened to foreign

trade.
When was the manila open to the worldwide
trade?
• It was opened to foreign trade in 1832, and
commerce was further stimulated by the
opening of the Suez Canal in 1869. The
Manila area became the centre of anti-
Spanish sentiment in the 1890s, and the
execution of Filipino patriot José Rizal in the
city in December 1896 sparked a year-long
insurrection.
 Year
1811

The last galleon left Manila and return to the

Philippines in 1815.
 Year
1834

Manila is opened completely to foreign trade

worldwide.
Year
1842

Business man from the United States, Great

Britain and other countries open their Business
houses in Manila.
Year
1873

From 1855 onwards, several ports were opened

in various part of the country. Among these
were the ports of Suwal, Iloilo, Zamboanga,
Legazpi and Tacloban.
 Year
1882

The Tabacco Monopoly enriched the coffers of the

colonial government, but it had its share of negative
effects. The farmers were not paid the amount due
them, and were even banned from smoking their own
product. As a result Gov. Gen. Primo de Rivera
abolished the monopoly in 1882.
Year
1870

The total amount of Philippine exports

reached 108 million pesos.
Cherry Lynn S. Velasco
BSED 1 E

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