THE PHILIPPINES IN THE

19 CENTURY AS RIVAL’S
TH

CONTEXT
Prepared by:
DALYN ANECITO & JONEL ZAPICO
HST B2 PARIS
END OF GALLEON
TRADE
The early inhabitants of the archipelago were already trading with
the Chinese, Japanese, Cambodians, Bornneans and Siamese (Thais)
even before the coming of the Spaniards. When Spain colonized the
Philippines in 1565, the trading with these people were cut off. They
closed the ports of Manila except to the Mexicans. This was called
Manila Acapulco Trade otherwise known as Galleon Trade.
END OF GALLEON TRADE
The Galleon Trade began in 1565. The ships were
going back and fort Manila and Acapulco, Mexico.
The ships carried spices, wines, plants, animals, other
products and annual subsidy for the Philippines. For
250 years, the trade had served as the income
generating business for Spanish colonists in the
country.
END OF GALLEON TRADE
Manila became a trading hub not only in the Southeast region,
but in the entire pacific. It also allowed the modern and liberal
ideals and philosophies to enter the country. Thus, paved way
to the birth of nationalism and clamoring for independence by
the Filipinos.
The Galleon Trade ended on September 14, 1851 when Mexico
started its war for independence against Spain.
 Opening of Suez Canal
The opening on November 17, 1869 of the Suez Canal in
Egypt, one of the most important artificial sea-level
waterways in the world, paved the way for the Philippines'
direct commercial relations with Spain instead of via Mexico.
As travel time from the Philippines to Spain vice versa was
shortened 30 days from more than two months, this positively
affected the development of agricultural exports, which
brought economic prosperity to native indios or the so
called“ilustrados” (Filipinos with money and education).
These development also paved the way for Filipino
"ilustrados" to send their children to universities in
Europe.
The rise of the "ilustrados" was inevitable and they
became the new patrons of the arts that led to the
secularization of arts in the 19th century.
The Suez Canal was often called the "crossroads of
Europe, Africa and Asia" because the route was used to
transport goods to and from all three continents.
The new route was built for 10 years by a
French company led by Ferdinand de Lesseps.
Before its opening in 1869, goods were
sometimes offloaded from ships and carried
overland between the Mediterranean and the
Red Sea.
SUEZ
CANAL
What was the Suez Canal ?
● The Suez Canal opened to
traffic in November 1869
● It was built by Frenchman.
Ferdinand de Lesseps using
Egyptian forced labour; an
estimated 120,000 workers died
during construction
● It stretches 192km (120 miles)
between the Mediterranean and
the Red Sea
● It is 300m (984ft) wide at its
narrowest point
SUEZ
CANAL
● Both the Panama and
Suez Canals greatly
improved world trade.
● The Suez Canal
reduced the sea route to
Asia by 6,000 km
WHY IS THE CANAL SO
IMPORTANT
● By 1955 approximately two-thirds of Europe’s oil passed through
the canal
● The waterway closed 1967 due to the Six Day War, reopened 1975
● About 7.5% of world sea trade is carried via the canal today
● Receipts from the canal July 2005 to May 2006 totalled $3,246m
● In 2005, 18,193 vessels passed through the canal
OPENING OF THE
PORT TO WORLD
TRADE
OPENING OF THE PORT TO
WORLD TRADE
● It means that the goods from the Philippines could be shipped out
to any of the countries abroad.
● And goods from other country could enter the Philippines directly.
Before Spanish banned the other foreigners from living in the
provinces or having businesses in the Philippines. They did not apply
to Chinese settlers, but it covered other white men.
HISTORY OF
OPENING OF
PORT TO
WORLD TRADE
THE WORLD TURNS ITS EYES ON
THE PHILIPPINES
It all started when Royal Company of the Philippines, or in Spanish,
the Real Compaña de Filipinas. Governor-General Félix Berenguer
de Marquina recommended that the King of Spain open Manila to
world commerce.
Furthermore, the bankruptcy of the Real Compaña de Filipinas
(Royal Company of the Philippines) catapulted the Spanish king to
open Manila to world trade. In a royal decree issued on September 6,
1834, the privileges of the company were revoked and the port of
Manila was opened to trade.
September 6, 1834
● Philippines opened to world trade- by a royal decree, Su Majestad
or Your Majesty the King declared the Royal Company of the
Philippines abolished and opened Manila's ports to world trade.
Because Manila was a great harbour (the shape of the bay protected
trade boats from rough waters) it became one of the best cities to
trade with, luring American, British and other European and Asian
merchants to its shores. As a result, Spain's economic supremacy lost
its footing in the region.
• Modern methods of production and transportation, notably sugar
mills and steamships, opened the Philippines for economic
development. British, French, Dutch, and North American traders
began to demand Philippine agricultural products, including sugar,
cigars, and abaca (Manila hemp). Sugar became the leading export
crop.
• In 1834 Spain lifted restrictions on trade between foreign nations
and the Philippines.
WHAT IS THE IMPACT
OF OPENING THE PORT
TO WORLD TRADE TO
ALL FILIPINOS?
The Impact of Opening the Port to World Trade To All Filipinos
19thCentury
When world trades open to the Philippines, it has caused for the
Spaniards to sell more product to other countries. Since the
materials came from the Philippines. They use our resources and do
not repay us as they sell more things we grow to have less
resources. But the positive is that our economy increases.
The economy of the Philippines rose rapidly and its local industries
developed to satisfy the rising demands of an industrializing
Europe.
The Impact of Opening the Port to World Trade To All Filipinos
20th Century
● Manila and the Philippines garnered great economic growth
around this time.
● Many shops opened in the Binondo and the rest of the
"Extramuros" area (the areas outside of Intramuros).
● The best part of this was that some were also owned by Filipino
businessmen who were knowledgeable in finance and consumer
retail. Manila itself expanded - more people came to settle in the city
and grew rich through profit from trade.
The Impact of Opening the Port to World Trade To All Filipinos
● In short by 19th and 20th century, the opening of the port and the
other parts of the Philippine to foreign trade brought not only
economic prosperity to the country but also remarkable
transformation in the life of the Filipinos.
● As the people, prospered, their standard of living improved.
Monopoly
The word mono is derived from the Greek word 'monos' meaning one and
'polein' means to sell
■ It is a market structure characterized by a single seller, selling unique product
in the market.
■ The seller faces no competition as he or she the sole seller of goods with no
close substitute.
reasons why monopoly is created
1. Limited or prevent competition
2. It could fix prices for its product
3. Consumers would not have alternate source
4. Skilled labor are force to work what ever wages willing to pay
■ Between 1855 and 1873 the Spanish opened new ports to foreign trade,
including llo-llo in Panay, Zamboaga in western portion of the Mindanao, Cebu
on Cebu and Legaspi in Bicol.
■ It became their respective route to exporttheir crop to different places.
■ The opening of the Suez Canal in 1869 had contributed to a spectacular
increase in the volume of trade.
■ By the late 19th Century three crops which is tobacco, abaca, and sugar
became the main export commodities in the Philippine.
■ Being open to world trade and having these products abundant, the Philippine
became a major exporter for these product and became well known in other
parts of the world.
■ There was a increasing commodity concentration export in:
❖ United Kingdom
❖ China
❖ British East Indies
❖ United State
❖ And Spain
■ Because of these the economies of the regions colonial powers
tried to increased agricultural output by pressuring the peasants to
produce more goods for export and to develop plantation agriculture.
■ According to Benito Legarda in 1820 and 1870 peasants or poor
farmers are the primary responsible for transforming the Philippine
from a subsistence to an export economy.