Cheska Lorraine S.

Bustos Readings in Philippine History

BSCE 1-H Reporter No. 10

Economic Life under the Spain

We Filipinos improved our social and cultural life under the rule of Spain but our
economic life did not improved very much, while we were being colonized by the
Spaniards , the Filipinos benefited only a little from economic change made by Spain. It
was the Spaniards who benefited more than Filipino. This slow development in the
wealth of our country was one of the reasons of the Philippine revolution.

Slow Development under Spain

The economic wealth of the Filipinos did not really improve a lot under Spain. This
due progress was due to:

1. Lack of interest of Spain of practical matters

2. Their interest was in Catholicism
3. In dreaming of an empire in Asia.
4. While we were a colony of Spain, the Filipinos did not really share in the wealth
of the nation.
The Spaniards did not go deep into the mountains and the forests. In short
Spaniards did not really know how to make money grow.

Economic changes made by Spain

1. New Way of Land Ownership

Spain introduced the idea that a person and his family could own a land.
Before the entire barangay owned the land in common under the Datu`s
leadership. But after the Spaniards came, the land was divided among the rich
hacienderos, the religious orders , and others. Rich landowner could now pass on
their land to their heirs,
2. Encomienda
An encomienda was the money from the tribute upon a certain
conquered territory. It was given by the King to a Spanish conquistador as a
reward for his services. In 1991 there were 267 encomiendas in the Philippines.
But due to abuses, the system abolished in the 16th century.

3. Tribute
The tribute was the residence tax during Spanish times. Each family paid
one peso per year. A single person paid one-peso half. The tribute was replaced
by the CEDULA TAX. Filipino were very unhappy with these taxes because the
Spanish officials cheated and oppressed them.

4. Forced Labor (Polo y Servicio)

All male Filipinos from 16-60 years old were forced to work for the
government for 40 days. This forced called POLO. But in 1884, it was reduced to
15 days. The Polistas (forced labor) worked for various works like buildings,
roads and bridges and etc. A polistas could get out of work by paying a sum of
money or hiring somebody else to do his polo.

5. Abolition of Slavery
 One of the good things Spaniards did for the Filipinos.
 A Filipino could own slaves like they owned property.
 In 16th century the Spanish missionaries protested to the king about
keeping of slaves in the Philippines. A royal decree was made in 1589 to
abolish the abolition of the slave in our country.
 This ahead of other countries in giving freedom to slaves. The United
States did not ban slavery until 1862.
 Britain ended slavery in the British empire in 1833.
 6. Galleon Trade and Subsidy from Mexico
 The Galleon trade was named after the sailing ship which sailed once a
year from Manila to Acapulco, Mexico and back. The galleon left Manila
with a rich cargo of Chinese silk and wood carvings. It returned from
Acapulco with a rich measure of Mexican silver pesos, wines, sardines,
official documents, the royal subsidy and new officials for colony.
 It ended in 1851 when Mexico revolted against Spanish.

Introduction of New Plants and Animals

Spanish colonizers imtroduced new plants and animals in the Philippines.

 New plants include corn, coffee, cacao, beans, achuete, maguey, peanuts, chico
and papaya.
 New animals were sheep, cattle, goats, horse, pigeons, swan, carabao, ducks,
geese, and better breeds of chicken and rooster.

Introduction of New Industries

The Spanish taught the Filipinos better methods of farming, cattle-ranching, the
making of candles and soap, the construction of stone houses, the buildings of
roads, bridges and dam, and the weaving of hats and mats. The Filipinos began to
grow large amounts on sugar, coconut and tobacco.
Economic Society and the Royal Company

Two economic organizations:

1. The Economic Society of Friends of the country

- It was founded in 1781 by Governor General Basco. He was the Spanish
governor general who helped develop Philippine agricultural the most. The
Economic Society sent the first shipment of Indigo (dye) to Europe. It bought
special birds from China to fight the locusts that destroyed crop. And it
imported new seeds and machinery from United States to help farmers. The
economic society stopped operating in 1909.
2. The Royal Company of the Philippines
- In 1785, King Charles III founded the Royal Company of the Philippines. This
was another business firm to take advantage of the trade and shipping
industries. It was owned by the king foreign banks, and private citizens in
Spain, Mexico, Cub, the Philippines and other Spanish colonies.

Scientific Survey

The first Scientific Survey of the Philippines was done by the Spaniards under the
command of Captain Alejandro Malaspina in 1789. A botanist named Antonio Pineda
went with the expedition . He made a study of the Philippine plants. From his first
expedition came the first modern shipping chart and map of the Philippines.

Opening Doors to the World Trade and Foreign Investments

 In 1834, Spain officially opened the Philippines to the 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.
 The Rise of the Banks

The first bank was started in the Philippines by the Spaniards. Several
religious orders and rich Spaniards gave loans for businessmen. The interest was
used for charitable works. This was called the Obras Pias (good works) system.
The first Filipino bank was founded at Manila in 1830 by Francisco
Rodriguez. He was a Filipino Quarker (Protestant) who lived in England. This
bank was no longer exist.
The oldest existing bank in the Philippines is the Bank of the Philippine
Islands. It started at the Banco Espanol-Filipino. In 1862 the Monte de Piedad
Savings Bank was also founded by the Spaniards.

Improvements of Transportations and Communications

 1891- British build the first railroad from Manila to Dagupan.

 February 1, 1859 First postage stamp
 1854- first monthly mail from Manila to Hong Kong
 1783- First telegraph
 1890- first telephone

Social Classes

Three social classes during Spanish era:

1. The upper class

- Composed of the richest and most powerful peple in the society. They were
also called Principalia or Illustrados. They were the former datus and
maharlikas, the biggest landowners or hacienderos, the leading professionals
like doctors, lawyers, engineers and teachers. From this class came the local
officials like gobernadorcillo and cabeza de barangay.
 2. The middle class
They were newly rich people who owned lands and business worked as
professionals, but were not rich as the upper class. The richest of the middle class
could also become illustrados. Out of the middle class came Rizal, Aguinaldo and
the Lunas brothers.

3. The lower class

This inludes the workers and tenants farmers. They were the servants of the
other classes, the factory workers or the masses in the countryside. Out of this
classes came heroes like Bonifacio, Emilio Jacinto and Diego Silang.

Historical Values

1. Our country`s natural resources and wealth were not developed by Spain.
2. During Spanish times , the Spanish benefited the most from the nations wealth
and rich Filipinos copied their arrogant snobbishness and aristocratic ways.
3. There were a little development under Spain in land ownership, abolition of
slavery , new trade and companies, new banks, better roads and bridges, modern
electricity, railways and ships, the new middle class and prizes and exhibitions.
4. But the oppression of the Filipinos by Spanish and the rich caused unhappiness
and led revolts and revolution later on.
 References;

http://www.slideshare.net/mobile/praejames245/economic-life-undr-spain

http://www.slideshare.net/mobile/patsjane27/ecoomic-life-under-spain-
54002028