FE Tue Enp Or Tin E GALLEON TRADE Tes fateful day in 1815 to return to Manila, never galleon wade marked the Id symbols of con place oj the ¢ tobacco mone Manila, Toi merchant houses, ly, new ar powered mills, and most of all, cash « Centuries earlier, such ch tl been unthinkal an ites hi viewed the Phihppin lony with li ted economic potentials. unlike Spar Amenica Yet the Philippines was ricli aa ures and products. Cotton grown in Th and Batangas was said to be superior to that produced in B Panpang bay and Calcutta. Pa Baan, Laguna, all prod quality coming from Laguna, Sugar tron Pampanga and Pangasina be better than that produced m Java, China 01 Ber sina A propensity for trade (One account of the Philippine 19th cetary suid there wis “Seareely ani land or province that dll] not carry « traffic oF other ‘weekly sight an mi ationson the prices of local crops in demand ~ such as indigo, sugar, and vice ~ were such that « Sp onclided that the Filipino Tianguis or markets w inish observe Magallanes lejt Acapulco, Mexico, ive, In-a significant way, the end of the vorld trade, In illeon trade and the port towns, such as those of Bnitish, and other Furopean a, railroads, telegraapla lines, and steam ops such as sugar and abaca propensity to barter and ualfie.. an all kine: of ways" was “universal nat rade was limited by domestic proc vi That operated on relatively crude metly xls For ex the od that settled in the pepper, though grown in Tayabas, and Lagura, could not compete wit because of impuriti ake Black pepper giowa in the neighboring islands o| Asia. Despite China and other markets, and despite the su: pertonty Philippine products might have luad ‘over their counterparts in Asia, these good: could only be produced tn limited amounts and mainly for the local market Further the colony was not free to trade with outsid ers apart (rom Chinese and galleon tra But across the Iberian P ins mercantilist think of change began to sweep pinsula, Spain discarded z, Guided by Bourbon reformers, the colonial government attempt ed to develop the economy by experiment ing with such crops as cofl and spices, introducing new industries suck as silk Opposite: 4 anodern lighdouse imauth of Pasig River Inset: Expucrtates st th of the time ved in spaces homnes, along the beaks of the Pasigmn af the €Spread: Baiexports con cultural products that owmership structures, By th pended on land sec heer $505 percent of atl exports The toh a they defied le abaca, si 10, and coffe oducts may have be hhape of the export nade. Such 4s ina few products be Hf the centration of exp me the marked featur th cer a Domest value. In 18 to hall aw their value able was thi time the in 1860, 48.9 million in 1880, and 62 mi lion in 189 generally exceeded exports, But from 1850 ons ports U mports, and for most of the latier half of the century, the colony enjoyed a favorable balance of trad The main urvicles of the export wade wer ia nemp.and coffee, which con tituted 75 10.95 percent of total exporisalter 1850. Sugar andl abace accounted for the larg, est share, and coffee, the least The decade 870 to 1880 was patticularly good for these products, Not onl he volume of their -xports grow, but their average unit values (per metric ton) also peaked dh As a result Of cour alc fn smmodity exportsalso rose i 10, for example, these amounted ion pesos Twenty years later nearly tripled. Equally remark. h | to foreign shipping, Total trad 5 y Bentic p more than doubled. the trade was subject t0 acticall wiped out In the late 1890s because of a blight, hence the fall in are of the trade from stices of coffee and percent in 1890 Left: Ann Nocane boiling sugar cone inaclay-enctosed von pa% Leisure Time in Old Manila FELICE PRUDENTE STA. MARIA Ths tasted 0 enjoy moments of nie with one’ relations in the 180% annily-centeredness was the rule, whether ies, farmlands, or fishing environs In nieas under the Spanish empire’ political risdiction, churches and schook reinforced the virtues of wholesome family Ie was important for friends to meet an get along with one’ family. Family events — day or name day, 1, wedding, and even departure for oifered diversions from routine Catholic holy days and royal holidays wen reunion of the old Jhare talents in home ants, aration, « birthday, saint betroth: other occasions calling for immediate family, if not the clan gave members of a how Any eligible man or woman was expected to excel in the refinements associated with anid. Urbanity the quality of belng @ andl chufied, was a keyword in the The world’s ities of the period provided access to the best in ants and sciences, as exemplified by regular mass transportation, planned public 5 ling park a: ing parks and g services, learning institutions heaters and performing arts venue museums and visual arts gallenes, hote and restaurants, intemational exhibition: and chops. Urhan life was set to precision ind clock and the moon. The 19rh-century a (0 eryjoy the novelties andl to ma usioms of city lifestyl nidad was marked by delicacy in toste, graceful and studi ure extreme politeness, a desire for km especially through reading, aust sccomplishment. stylish atti 7 Id history and geography: snd ndly home, Since trap q re armported, tt fat more shal 1 most common pocketbooks could afford. Local attempts to copy fashion including those that could no} withst long sea voyages, somenmes resulted sn Among the culinary arts to master wer pickling, preserving, coniectione pastrymaking, bread baking, table seu and the cooking of outstanding hesta fare Te wasn F jood Preparation included cutting ingredients finely or intricately Pickles, for mstance ih vegetables shaped were decorated, into flowers or the letters of a name. Fruits and rinds were carved to resemble lacework before being preserved in syrup, To serve French classic cuisine wa lered the ultimate challeng; led in Parisian haute c Social status depen a familys ability to ‘unusual presentations: a sweet pepper stuffed and dee bush with each frui while clinging to its branch, an erupting foleano made of mashed potatoes and a hidden burner aflame; an epergne laden with catabao milk pastilles (pastillas dé leche), each in paper wrapper hancleut tobear the name of a guest or a hospitable ‘message Such as Amistad (friendship) oF Recuerdo (keepsake) ‘Women challenged their fingers by embroidering, beading, crocheting. ant making bobbin lace. French modiste skills, were part ofa young. lady’ schooling, and many girls proudly wore their own reations. Gifts were homemade. Ladies hhandrolled fine silk handkeschiels, then embroidered on them the monograns of nen and women who mattered in their hives, They sewed linens for home and parish church, and made labnie or paper Howers to decorate altars and processional carriages There wer towards love and m rage Te haperos of mantpulanng, kerchiels, hats, canes, Nower y consulted leter-wnting anguay fans, ha and stamps, T guidebooks, made mvrsible mk for love letters, practised florid penmanship, ane sought to master poetic style The arts ollered hobbies to fill up free hours, Invitations arnved! for bailes (dances including formal balls), Inerary programs) ogethers at home incerporating, music poetry, and conversation), bodas veladas (tmusic and Gveddings, usually with dancing, spect making, and poetry tecttal at receptions) and fiestas. Competence in a musical instrament was highly desired, especially for fute,violin, cello, piano, guitar accordion, and harp. Some parents prided themselves in having a family str ensemble, Love songs from zarzucla and opera were in vogue, along with the & rigodon, kabanera, and polka. Most Filipinos spoke only the languages of their provinces; speaking Spanish was a clear ornament. Ability in a foreign Language ‘was considered a mark of sophistication, indicating that one may have travelled and been educated overseas The local milieu enriched Philippine arts ‘with its own melodies and lyrics (lundiman, te keorido), ths culinary specialties. Manilans sought to give the colony's capital the city fashion it could master Moving picture machines and phonographs we 1800s, There miniarig), poetry (anit, ter (komedya, sarswela) and c introduced in the live theater with performances by loreign stars (Italian panist zarzuela), adding a sense of Town fiestas, a5 well a the world-« uitisite and literary societies, held annual ‘contests and programs that inspited ants 0 practice diligently at home Indoor entertainments sought increasing mopolitanism as international trade increased Then as now, a person could ect what he or she liked from foreign re al what was treasured from local xcition fhe family, immediate smmunuty and the Catholic Church (the lowed by the Crown) played powerful roles in shaping a person’ nse of well spent leisure timIn the early L9th century, sugar suury, the island of Negros had become the erown mostly by stnall landowners in the principal sugar producer and the volume of provinces of Pampanga, Taal, Cebu, and sugat exports alone av ranted to more than, Panay, They eithe vances for capital > million pounds. Early British mitiatives vee especially crucial in the development or were paid upon delivery for sinaller pur- and expansion of the sugar mdustry chases Sugar refminy completely int Chit he 1830s and the 1850s, the production The tobacco monopoly of sugar expanded great In contrast, toba Inv 1855, Hailo was opened to foreign corm ang it nd N By the clase of 1 Spread Moly was oneetup, the government enjoyed sale control ver the produchon. manufacture, and (rack of tobacco mittally in Manikaand its adjacent outhern Luzon, and subsequently in P Mindoro, and Cagayan. Spain then be he countrys largest trading partner [c In L847 Spain held 48 Left Cigar maker ane buyers in Manila poly howe peset t snizational problems and corruption i zealously guarding its smuggl Infierent aur acco growers complamed about th rem of grading, tobacce adi tated bow much they would be pard. The ficial practice of payn bh 7 tificates instead of cash also anger tobacco producer By the midalle of the 19tt hhants, British x witl The demand paca, particularly tron U.S. chip makers, helped develop abaca snexport crop. Foreign shippers fourd Phil y lighter than others bn Jso sturdier in salt water, unlike ot her ype of condage that had to be tarred for prote tion against the salt. The b yernp buy rs were American trade their upphies through am me of as uh Inited States more than doul 1, for niost of che period, the Jom: vily to European markets, rice irket in China. The opening of a asinan, itt 1855 helped to China, Sual being aae val Ports and communications Hehe century tn L niligenous 1extth pesos; in 1846, their value vose to 72,649 pesos. From Ol-wast importance to foreign comm he wid-1f the mid-1860s, external steam navigation and the rise of the per mostly American) demand for abaca clott Kong, and Singapore, th in the lining and baling of cotton increa! Lransshipmeni and the value of native textile expos jumped The average t at vessel: event hi (08,901 pesos in 1856 and thatcleated through Philippine ports jump esos itr 1864. Thre later mn 47.099 1 rowever, the demand declined and the value 345.350 tom 5 ne nam 1us textile Exar also increased L 4 ‘ ntl his amounte u period i n the pu part from steam f re disph nthe m: Iso introd I u anu oxliet Bri k tablishmer u 1 nth bought Icerraken a I ange business in Manila wa: xl by British banks alread 1 Asia’ the London-based Chat stopped by A ransportation by co: Pulled of horses that traveled 20 kilometers a day, the coach accommodate India, Australia, and China, ranch in Manila inv Le ten seated ps ight more stand- and the Hong k ing A new mode ased Hongkong an: sport was intro- Shanghai Banking Corperation, which pul duced with streetcars. In Manila there were up.a branch threv years late at least five car lines rar 200 Bur there were also two Filhpmo financial meters long (the Malacaa 4.400 houses that v up. one by Pars-edu meters (th wesiveets cared Dama: richo, who ran a stnall of N noneylending husiness, and the other, a in rink pur up hy Francisco Rodriguez, who to electric lighting, belo led a coloilal ile, B v1 q ppe Financing foreign trad ny ually Lon he wat wally important aspect of foreman com- helped ‘ nemunit merce was its financing, The first bank in and evertuall se Bitish sul the Philippi ne Barn bi rh I hy Spain, he returned pino, established in 18 b capital 108 i associated ign “upplied by local Catholic charitable of nk as a compar nuzations ~ dealt mostly with Loca! busut 0 i 1 banks, Upon his including the cole ernment’ trans- deat becuieathed his fortune to ction ropelized The the Queenof England y he far Left A baniene El Bas ccation, that 1s, takin posits from and making loans to tt eral public. In this sen: 16 the Philippines only fourth decade of garded as banking operations, lls lending and foreign exchange dealin ould be and were found jong before the advent of formal banking, performed! by moneylenders or moneychanger The venerable abras pias or pious legacies, or instance, had financed much of the galleon trade, trade with ighboring regions and building struction since the 16th century These were U to yield lamentary bequests lent out soa ficient income to carry out thi for the id, distributing alms, and in one ding a water system for Manila (the Cartiedo obra pic) The earliest dome were those of Paris-educated Damaso Gorricho, and of the Anglicized Filipino Quaker Francisco “Quico” Redrigue2, whe had studied in Calcutta and Goa. They speaking swere not banks, stri stipulations, such as saying masses richod w credited with organizing, toward 1830, the first Filipino finanetal insuitunion which was conducted as a companion to the Brtish and American commercial houses Afier his death following the Crimean Wat nother Filipino hnancing firm was statted by Mariano Tuasor Banking with the 1 funds, however, wa and part nniercial firms. A German businessman reported that up to 1860 and even later. ses: Kur u Poole Hubbell & ¢ They do net app in f mission merchant 1 atons (in the 18205) involved making nsure their hold on the harvests. At that made m silver coun, and such re financed by specte 4 1830 internatronal payments bega vade for the most part in bills, drawn primarily on London, but also on other usable in domestic payments, and « way of ising pesos had to be found Ths was accomplished by accepting money frorn the pubic evidenced by a note or quedan (ftom the words thereon queda en nuestro poder la cantidad dk The quedane senerally yielded 8 percent hac a term of one year and Most were der, but there we were negotiable by endorsement. These depesits came from the more affluent elements of Manula society, including the four friar orders, bu! ‘ors frora the also depo: and from mode rounds. Using thece funds for advances to agriculture was a clear instance of financial intermediationFormal institutional banking started just Epilipino de Isabel II (extant to this day as hie Bank of the Philippine (sland) thorized on August 1. 1851 and mmencing operations on May 1, 1852 fall the initial capital of 400,000 pesos fe peso symbol was devi 1903) came from ¢ Feajas de comunidad (lund e 1 public works), and the other hall he obras pias and th marked for = loca from the general pul Foreign merchant houses. By 1896 1 capital had grea nanagers were 19 p general, and \ own notes, However, ts quasi nature, while assuring at of official protection, also exposed 11 19 extraordinary demands by the government, such as an attempt to bortow money interest-free and without a definite maturity dat Two decades later the entry of tw British banks strengthened? banking ~ the Charteied Ban Australia and China epened by Jarn Somerville in December 18 and the Hongkong and Shangha Banking Corporation by Charley | Barnes on 11, 1875, The latter, founde: nied by had till then ell & Sturgis, and among i shareholders were Manila tnerchants, both, foreign ancl domestic. Both bank borrowed consid ble stums from the Banco Espanol-Filipino With their coming, the foreign merchant is diminished their reliance on divect deposit-taking and came to depend more on bank bo Le, Hubbell & Companys bankruptcy tn 1887 the Fong Kong Bank held nearly 45 percent of ts liabilities. The commercial banks put up branches in other ports of entry, hike Hoi Commuted funds of the obra pia de la Misericordia amounting t0 33,959.67 pesos fin wings At P capitalized th Ahorros (extant to this day), a unique combination of savings hank and pawn shop, which started operating July 24 1852. With its founding, the institutional Monte de Piedad y Caja de structure of 19th-cencur >anking was completed. Mariano Tuason, manager of banlking operations for | M. Iuason & Company t 1860, tried to compere with the Banco Espanol-Fipine by prope Philippine checks be accepted for official payment stain himats, ally secured This was rejected prec secautse the government did not const par with the no, which 1 stablished he firm’ cheeks on a Banco Fspanol Fili dered its own bank, The Tuason banking operations vg depos at interest, discounting commercial bills and promissory in, Panis and account and drawing bills on Lond Madrid Santiago was mong, Jose Rizal effeets in Foi! bill of exchange datec August 29, 1896, drawn on the Madrid banker A be Company ayo by Tuasal ho the Philippines ecily thro}Hy 1837 there wer nsuich meveluant firms, at least wo of which itish, at bur run by an Amencan The trade network trade was concentrated on « lew product the chstribution of these produc ended loconcentrate ona f Tie Date States, Gicat Britam, and ; hilippines’ key trad b the Ltotal Together these th 1 half of the 1 ei Hor fh Is ast nt frory 1825 to the u nat anderestimated because official 1 fied Hong Kong, then under Resh con. cal, alternatively undi naan th British East Indies (Brita nies sibveast Asia), With Hong Kong, the Bn h East Indies controlled st larger share of the trade that latgest chunk of the commerce. The Hon, > explain why China: Kong facter could al fare of the trade fluctuated herween extrem low and high points me it would be hard to sa products that passed ie finally lane isa vital transshipment por ly with China and other parts of Ast ith Europe and the Unit Since Spanish tariff law faicon Spanish ships, forergn shippers took ad. cantage of it by loading impos on Spanish ships while transporting exports on their own ie F A further look at the trade figures from Legardlas sinddy shows that in the Philippin expont sector it the years 1899-1890, the ompetition among, Britain, the United States, and China wae keen, he United States taking the lead for most al the period exceph in the 1870s and the 1890s, In 1880, ight: Bish corn textiles were adopted ‘as saya (skin) material by the local for stance, the U.S. accounted for 44.4 percent of total exper >wed by Britain with 25.9 and the British Fast Indies (with Hong Kong) with 21 8: Spain had a measly 8 percent share Even then, Britain and China were never far behind, unlike Spain The import sector, on the other hand, wa. arly dominated hy Britain and, to a lesse dere, China, This was due to Britain’ tex: Ule imports that constituted a lange compo: nent of the total import trade, Even Spain - enjoyed a larger share of the import trade n the United States, which was, of course. reversed when the latter imposed {ree trade nother way to look at the geographic Lisiribution of foreign commerce is ¢ ‘ompare the respective shares of traders in pecifie commodities. Brisain had a greater share of the sugar trade uruil the 1870s (45.4 3) But in the next decade and 1 hall, the American share increased wemen 5.1 percent), with Britain regain ing the lead only in 1895. In contrast, absca was more of an American preserve Except for the last two decades of the century, the ql ably larger than that of Britain (73.5 instance, to Britain’ 25.2in | American commercial interest in the Phil fe of the abaca trade was consider ppines stemmed anitially from a desire ain a foothold in China. The location of the Philippines along the route to Canton ted American traders to the colony’ F number of Ametican ships were frequent Manila. In 1816 an American commercial agent hing in Manila was appointed perina nent consul Spain's last moves American commercial imteresis receive ost in 1848 when Spain declared! Manila an open port for whaling vessels. Th a { American business can be gauged fron he influential role played by three Ameri rms in the export-mny rade: Peele Hubbell andl Company: Richaw > Tucker: ane! Russell and Sturgis (On the other hand, Britain was already my ‘ontiol of large portions of the colonizee world when it entered the Philippine trad Moreover, it dominated foreig orldwide. Thus when the colony \ opened to ouisicle commerce, the Brit were among the first 1o respond, In 18 Jish firm obtained a permit to operate in. Manila, and in 1844 the frst British consul In no dime at all, Butish interests in. sugar, abaca, and tobacco grew Uoilo, was singularly responsible for intro. lucing milling machinery and creating a fernle environment for the budding sugar in- yy Ways British com dustry in Negros. [nmi‘mercial activity stimulated alu uders such as the and even Spanish merchant In vain did Spain attemp! to reduce fo eign interests or at least slow them down, I 1841 [he colonial government refused to al Jow an English company to buy the Domini can hacienda in Calamba, Laguna, Four year later a group of Spanish merchants tried to monopolize the trade to and from Mindanao Chinese. These on the foreign ownership of lancl was evade And it was only late in the century that the ment imposed corporate [axes so thal rain could gain, ho Aivectly. fro the profitable European and A\ trad Import and export duties wer i posed, the latter being much | a import duty tates. The ave rival expr uly to total exp (fro u to slightly more than 2 percent from 1 to 1850, while the ratio of import duty t 892 the average ratio of import duty to toxal nntin 1867 to 7 8in 1876, 10 Li nd 147 i 1892. In contrast, the rati xport duty hardly Quetuated from 1.710 1 the preferential tariff \Limposed on goods transported on Spanish cessels, which was less chan hall the rate lev ‘on goods in foreign ships. But even that was circuinverned by tradets who reloaded broad nd Hong, n traders, Spain repealed the poliey in only to reimpose i until 1891 at higher Aifferential rates than before, In particular higher dutie posed on cotton, & ramary Brash ir mainly because of ressuce from Catalan cloth make I Brush ned! to circumvent the u port houses set up branche 1 Barcelona undet theit own or other names. rom where th hele cargo to M: vila eu ' apore, Hong Kong augon. The cat ild then land in Mt 4 vessel. Noned the icy appears to have had sore succe $10 1802, the value of Spanish ation text wonted to the Philippines re than 21 times. tn fact, rom a hare of onl percent of textile im P umped co 25 percent in 1891 andl ur percent 19 1895, Left: Clerical safhf the importexport firm Peele, Hulbel ‘ane Company: 1 mss the forerunner of present Warner Barnes and Com Incorporated