Economic InstitutionDuring Spanish Rule

Economic InstitutionDuring Spanish Rule

Part 1:

Manila-Acapulco Galleon Trade

The Manila-Acapulco Galleon Trade was a trade between Manila, Philippines and Acapulco in Mexico. The trade took place in a big boat called a Galleon.

First, a short video-clip Of the Manila-Acapulco Galleon Trade:

This is a Picture of a Spanish Galleon

The voyage between these two countries lasted approximately 200 days. Through the Manila Galleons, the Americas and the Asian worlds were linked.

To have access to this trade, a ticket called a “boleta” was needed, the cost of which was P250.

The trade benefited only a small group of privilege Spaniards, the government, church officials and some Spanish residents in Manila.

Those who participated in the trade profited much but in return, the agriculture and the care for resources were neglected because those who participated went to Manila often and

neglected their jobs, they also required more workers or ‘polistas’ in the shipyards to construct the Galleons.

Also the funds or “Obras Pias” that was donated by the rich people for charity were borrowed by some of the officials for the trade but were never returned.

Tempted by the lucrative trade, Chinese immigrants converged in Binondo, Manila as early as 1637. By 1687, retail and small credit business is flourishing and under the control of the Chinese Mestizos.

The Galleon trade lasted about 200 years. When the trade suffered losses, such as when the Galleons sank because of overloading and the ships were often raided by English and Dutch

Pirates. The king of spain ordered the abolition of the galleon trade.

POSITIVE EFFECTS OF THE GALLEON TRADE:

1. There were many goods and supplies being brought to Manila.

2. Intercultural exchanges between the Philippines and Americans. Symbolized by the Mexican made Virgin of Antipolo, the patroness saint of sailors.

3. The trade brought many valuable flora and fauna into the Philippines: avocado, guava, papaya, pineapple, horses and cattle.

4. The trade also brought to the Philippines the moro-moro, moriones & the Black Nazarene of Quiapo.

5. Also a lot of elements of our language are of Spanish origins. Ex. Tsokolate, tiyangge.

NEGATIVE EFFECTS OF THE GALLEON TRADE:

1. Galleon construction conflicted with the planting and harvesting schedules.

2. The growth of Philippine agriculture was retarded because the money and gains were channelled to the galleon trade.

3. Forced labor by the polistas ignited the Sumodoy revolt and the Pampanga revolt.

Part 2:

Royal Company of the Philippines

The Royal Company of the Philippines was created in 1785 by the Spaniard: Charles III to enhance trade between Spain and the Philippines.

To help the company, the king granted it some rights:

•Usage of the Spanish Navy flag in its vehicles.

•Right to buy equipment at government prices

•Non-payment of taxes for it’s exports.

•Right for its ships to travel to all ports in Manila.

The company was also granted exclusive monopoly of bringing to Manila Chinese and Indian goods and shipping them directly to Spain.

It was stiffly objected by the Dutch and English who saw it as a direct attack on their trade of Asian goods. It was also opposed by the Galleon trade who saw it as competition.

The rivalry between the company and the galleon trade resulted in political unrest in the Philippines. For the Spaniards, the company helped the early growth of agriculture, especially Philippine

grown products like indigo, sugar, coffee, spices and textiles. To the Filipinos, they were forced to plant more crops for exports from which they did not benefitted at all.

PURPOSE:

•To enhance trade, agriculture and other industries in the Philippines.

• To unite American and Asian commerce.

•The company offered foreign capital to the country to help it develop its natural resources.

Part 3:

Royal Economic SocietyOf friends

The Spaniard Jose de Basco y Vargas followed the royal order by forming a society of intellectuals capable of producing new and useful ideas.

He formed the Royal Economic Society of Friends, composed of leading men in business, industry and the professions, whom he prodded to exploit the island’s

(Philippines) natural bounties.

Basco introduced the Plan General Economico to make the economy self-sufficient from the annual Mexican subsidy. The plan included income-generating monopolies of tobacco,

areca nut, spirituous liquors and explosives.

Exploiting the country’s natural resourcesthrough agriculture, commerce and industry,

Basco gave incentives by awarding cash prizes and medals of recognition for excellence in farming indigo, spices, cotton, cultivating mulberry for silk production, bee-keeping,

mining, inventions, the arts and sciences.

The Society offered local and foreign scholarships and training grants and an endowment fund for a professional chair in agriculture, and established an academy of design.

It is also credited for the carabao ban in 1782, the formation of silversmiths and gold beaters guild and the construction of the first papermill in the Philippines in 1825.

Purpose: To make the economy of the Philippines self-sufficient from the annual subsidy from Spain.

Part 4:

Answering of the guide questions:

Part 1:

What were the effects of these imposed institutions by the Spaniards?

•These institutions increased and exposed the Philippines to global trade and new products but brought hardships to the Filipino people.

•The growth of Philippine agriculture was at a standstill because resources and labor were diverted to these institutions.

•The Management of local economy also suffered.

Part 2:

What was the reaction of the Filipinos to these imposed institutions by the Spaniards?

•Because of these institutions, Filipinos were more miserable. They were forced to do labor which did were not beneficial to them but to the Spaniards.

•Some of the provincial revolts are results of these unfair practice.

Part 3:

Why do you think the Spaniards imposed these kinds of institutions in the Philippines?

. The Spaniards wanted to effect progress in the Philippines.

•The Spaniards wanted to make the Philippines self-sufficient.

•The Spaniards also colonized the Philippines for the enrichment and expansion of the Spanish empire.

By: Group Tausugs

Thanks for Listening!!