Philippines: The Economic Situation during Pre-Colonial and Early Colonial PDF

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Lou Marxis Gallevo Prof. Ruby Liwanag III-9 BSSE Philippine Development Experience Philippines: The Economic Situation during Pre-Colonial and Early Colonial Philippines is an archipelago with 7, 107 islands and islets. The strategic geographical location of the country is one of the primary factors...

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Philippines: The Economic Situation during Pre-Colonial and Early Colonial LOU MARXIS GALLEVO

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Philippine Development Experience

Philippines: The Economic Situation during Pre-Colonial and Early Colonial Philippines is an archipelago with 7, 107 islands and islets. The strategic geographical location of the country is one of the primary factors in experiencing colonization during the mercantile era (Merchant, 2009). Philippines being situated near at the equator provide an appropriate climate in producing agricultural goods such as fruits, vegetables, aquatic animals, and others. This helps the people of the islands to provide materials and goods that will benefit their family and the society, since; Philippine society has influence of Confucian values. More so, geographical structure of the archipelago; having wide-range of mountains, long coasts, wide plains and islets hone the way of living of the people (Diamond, 1997). The Pre-Colonial Philippines Before, the archipelago was constituted of small islands wherein every islands has their own politi al s ste

alled Barangay’- An early settlement in the Philippines was referred to as

a a ga , a Tagalog o d o igi all

ea i g

oat,

efe i g to a oatload of elated people,

their dependents, and their slaves. These ki ship g oups e e led

a datu, he e

a a ga

also meant the following of a datu, a political community defined by personal attachment, not territorial location. The barangay settled together in a community ranging from thirty to one hundred households, and through subdivision, many were still that size when the Spanish arrived in the sixteenth century- (Corpuz, 1997; Guerrero, 1970; Agoncillo, 1960). Since, the area was surrounded by waters, most of the people were sea fearers, and thus, they were able to have a contact with the kingdoms in Southeast Asia and North Asia; especially in China and Japan (Salazar, 1999). According to Samuel Tan (2008) in his book History of The Philippines, during the 500 B.C.E to 900 C.E; the Neolithic Era, there were jade ornaments in the archipelago which have an affinity to the ornaments of Vietnam as an artifacts belongs to the

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Sa-Huynh1(North east coast of Vietnam) . Hence, this suggests vividly an extensive interaction between the archipelago and the rest of the Southeast Asia, in effect, a highly developed maritime technology and trade. More so, as evidence to the prior conclusion, there was 15meter length boat being excavated during 1978 at Butuan, which was dated 320 C.E., this type of sea craft can explore adequately the interisland and interregional travel (Tan, 2008). In the 618 B.C, the islanders began the first contact to Tang Dynasty, China (Abinales and Amoroso, 2005; Salazar, 1999). Henceforth, the Chinese economic and Socio-cultural influences came by the way of Chinese porcelain, silk and traders/merchants, the latter was being engaged with the traders of India that filtered through the Indianized Empires in the Southeast Asia; the Srivijaya and Majapahit Empires (p. 31). Furthermore, in the 5th century C.E, the Kunlun ship presumably from Java and Shrivijaya have traded with the Philippines and other Southeast Asian Countries, and China (p. 32). In the late Neolithic, wet cultivation marked an essential point in the economic development of the archipelagic communities. The irrigation system was then implemented, likewise, the husbandry or domestication of animals, which resulted to the emergence of surplus of agricultural goods and other products out of the abundant resources (p. 27). In addition, 982 C.E Ma-i, probably Mindoro, brings goods directly to Canton for the first time. As evidence, Laguna Copper Plate was found in Laguna during 1986, the inscribed document was written using the Sanskrit. This artifact shown that there is an interisland contact between the people of one kingdom to another; however, the main content of the evidence was about the leader and his family or clan who was acquitted of debt to the Chieftain of the Kingdom of Tondo. This implies that even before, barrowing of goods or money were part of economic activity and system of the islanders. More so Abinales and Amoroso (2005) described the local community as: I this lo all fo used o ld, atta h e t to o e s o g oup a d village was strong. This can be seen in the attitude toward outsiders. At the beginning of the tilling season, no strangers were allowed in a village while ceremonies were conducted for a productive harvest. Likewise, a family engaged in harvesting rice would allow no outsiders into the house, lest the fields yield 1

Solheim, W. (1959). Introduction to Sa-huynh. Retrieved October 1, 2016, from http://hl-128-171-5722.library.manoa.hawaii.edu/bitstream/10125/16640/1/AP-v3n2-97-108.pdf

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nothing but straw. Upon pain of death, strangers were warned away during the funeral of a datu. Further evidence is found in the differential treatment of slaves from within the community and those from outside. Slaves born within a household were considered part of the family and were rarely sold. On the other hand, when a life was to be sacrificed—for instance, when a slave was to be buried with a great datu to serve him in the afterlife—someone captured in war or purchased from outside would be chosen. But evidence of early shipbuilding indicates that communities were not insular. Travel for the purpose of trade was common and had an impact on the growth of settlements and the way they were governed. A a haeologi al site i Ta ja , Neg os O ie tal i the Visa as , sho s a settle e t s e olutio from before the tenth century to the sixteenth century. In its earliest form, this coastal community at the mouth of a large river covered less than seven hectares (around fifteen acres). The e a atio of Chi ese po elai f o the t elfth e tu is a sig of ea l t ade, ut does t prove direct contact with China. By the sixteenth century, when the settlement engaged in metal production, it covered thirty to fifty hectares (roughly one hundred acres). Houses by then varied in type and size and included one with fortifications— all signs of growing social stratification. As more goods were imported into coastal settlements, those who controlled the trade grew in material wealth and status. Not surprisingly, these were the datus who controlled harbors, collected trade duties, and imported goods. As a class, they were distinguished by their possession of larger-than average, well-constructed, sometimes stock added houses filled with such foreign prestige goods as Chinese porcelains, gold ornaments, musical instruments, wood carvings, and fine silks and cottons (pp. 31-32)

More so, during the 1001 C.E in Butuan, a gold mining and trading center in northeastern Mindanao, sends its first tribute mission to Sung, China. In the 11th century C.E Sung Dynasty have become the major trading partner of the Southeast Asian kingdoms, and resulted to the decline of Srivijaya wherein the trading system became at hands of the Chinese people. However, during the political change from Sung to Ming Dynasty (1368–1644), Emperor Tai Tsu limits the interaction among the people of Southeast; thus, the rise of Majapahit Empire had begun. This Indianized Kingdom became the leading trading master of Southeast Asia (para. 2). Furthermore, according to Pike (2012) Philippines was part of the profitable trading partners of the Indianized Kingdom together with China, Vietnam, Burma, Cambodia, and Siam. According to the the study of Abinales and Amoroso (2005) entitled State and Society of The Philippines, around 1100 C.E first Malays from Borneo settle in Manila/Tondo and intermarry with native Tagalogs. In line with this, c. 1275 Arab missionaries and Chinese traders bring Islam to the Sulu archipelago, this only suggest that in doing economic activities it is not only the products or goods that traders and merchants used to deliver but also the culture and values (p. xvii). Hence, during the 1277–1368 Yuan-dynasty trade proliferates with Visayan settlements of Butuan, 3

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Tanay, and Cebu (Ibid.). Followed by an essential marked on 1368–1424 when Sulu sends six missions to China during the period of Ming tribute trade to strengthen the relationship among the kingdoms (ibid.). People of the archipelago during the pre-colonial era displayed similar characteristics among the nomads of the other parts of the world. These have justified the intellectual and social capacity of man to cope with the things that are existing in the society. The above presented information was mainly depi ted the Asia s atio alis

Mehta, 1

, the e o o i a ti it that t igge s to ha e a i te a tio

and shared values among the people. However, being welcoming and hospitable with aliens becomes one of the considered factors for the islanders to experience the hostility of the so called Colonization. The Early Colonial Era

This way of looking at the Philippines began with Spanish rule in the early 1500s . The Spaniards themselves were organized under a highly centralized, autocratic kingship, and when they encountered datus, they presume that they were perceived as kings in the European context. They soon realized, however, that a typical datu had only a local following and that there were many datus competing within a small area. Then they often erred in the other direction, seeing o ki gs o

ule s

o th of

e tio . In seeking to impose its own state structure and

universal moral code, discussed in the next chapter, Spanish rule nearly succeeded in obscuring the cultural and political links of the Philippine archipelago with the rest of maritime Asia. 1521 the arrival of Ferdinand Magellan in Mactan, Cebu. 1542 A Spanish expedition to the archipelago bestows the name Felipi as i ho o of P i e (later King) Philip II of Spain. 1568 Philip II empowers Miguel Lopez de Legazpi to establish cities and towns and grant his followers encomiendas. 1571 Legazpi conquers Maynilad, an outpost of the Brunei sultanate. King Philip grants the new settlement, Manila, the royal title of city.

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Philippine Normal University Philippine Development Experience

1572 The galleon trade begins between Mexico and China, with Manila as transshipment point. 1595 Philip II decrees Manila the capital of the Philippine Islands. 1609 The polos y servicios (conscript labor) edict is decreed to ensure manpower for public works projects and naval battles against the Dutch, which continue up to 1648. 1639 A Chinese revolt rocks Manila, led by Christian converts who protest the conscript labor policy. Revolt spreads to areas south of Manila. 1648 The Spanish sign a peace treaty with the Dutch at Westphalia, recognizing Dutch independence and ending all attacks on the Philippines. 1660-1661

Revolts erupt in the provinces north of Manila to protest abuse of conscript labor

1700 The Sulu and Magindanao sultanates fight to control trade in the region. 1739 The first viable road system from Manila to northern Luzon opens. 1743 The British step up attacks on Spanish galleons plying the Acapulco–Manila route. 1745 An early revolt over access and control of hacienda lands occurs in Cavite municipality and Batangas province. 1777 A royal decree orders indios to engage in the production of cotton and other fibers. 1781 Governor-General Basco y Vargas implements the tobacco monopoly, limiting production to areas designated by the government. 1784 The Philippines remits 150,000 pesos to Madrid, the first remittance since the establishment of Spanish rule. The first shipment of indigo is sent to Europe. 1785 The Royal Company of the Philippines is established to promote economic development. The office of cabeza de barangay becomes elective. 5

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1796 The Astrea, the first U.S. ship to trade in the Philippines, loads indigo, hemp, spices, and sugar for export. 1807 Spanish deserters revolt in Ilocos to protest the government wine monopoly and prohibition on the production of basi (rice wine). 1815 Galleon Trade Ends 1834 The Royal Company of the Philippines is abolished. Americans establish two commercial houses in Manila. A royal decree declares Manila open to international trade. 1853 The British firm Smith, Bell and Company is established in Manila and becomes a major trader of sugar and hemp. Source: Abinales, & Amoroso. (2005). State and Society in the Philippines. State and Society in East Asia Series. United States of America; Rowman & Littlefield Publishers, Inc. doi:0-7425-1023-9

The economic situation of the Philippine back then was heavily influenced by our Spanish colonizers. This creates a system which lessens the trade capacity of the country in producing goods for the neighboring kingdoms and states. The production of surplus goods was mainly enjoyed by the Mother Land; Spain. However, despite of the disadvantages that the corrupt officials have done, this brought new set of ideas came from Europe. The lifestyle of the Filipino as ha ged f o

a s all illage s a d isla de s t pe to o se ati e a d lass o e.

During 1581, Chinese merchants were compulsory to live in the Parián, a controlled area constructed outside the exhilarated walls of Manila. Officials could easily gather taxes and restrict trade. Chinese who established were mandatory in paying a yearly license fee, tribute, and house tax totaling eightyone reales , render unpaid labor, and pay occasional capricious taxes. In addition, “pai s a

itio

to regulate the spice trade was a primary reason for retaining the

Philippines, its navy lacked the ability to operate in a distant region and the Dutch won control of 6

Philippine Normal University Philippine Development Experience

Maluku. What kept the Spaniards in the Philippines was the value of Manila as a staging post for religious missions, especially to China and Japan, and as a transshipment point for the galleon trade

The continuous trade from Acapulco to Manila was identified by Mateo (2011) in his study as: By this name (and other ones, like The nao of Acapulco, the ship from China, etc.) is referred mainly the communication system between the Vice-kingdom of New Spain (Mexico) and the its depending colonial territory of the Philippines. The route lasted 250 years, from 1565 to 1815, crossing the Pacific Ocean in yearly bases, and heavily depending of the geographical conditions. The first trip was conducted by the Augustinian Fr. Urdaneta, although other ship of the same expedition commanded by Arellano went back to Acapulco ahead of Urdaneta, as we will explain later. This galleon brought Mexican and Peruvian silver to Manila which was exchanged in this entrepôt by Chinese silk arriving there from Fujian and Guangzhou. This route was also one of the most important ways of East-West communication especially in the 16th and 17th centuries (p. 1)

Source: Mateo, J. (2011). The arrival of the Spanish galleons in Manila from the Pacific Ocean and their the Kuroshio stream (16th and 17th centuries) (Doctoral dissertation,

National

Taiwan

departure

along

University,2011)Journal

of

Geographical Research. UMI No. 47:17-38.

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Philippine Normal University Philippine Development Experience

The figure shown above depicts the route of Manila-Acapulco Trade. This was the first crossing from the Pacific ocean (east to west) and vice versa. More so according to Hecht (2003) The soalled Ma ila Galleo

Nao de Chi a o

Nao de A apul o

ought po elai , silk, i o ,

spices, and myriad other exotic goods from China to Mexico in exchange for New World silver. (It is estimated that as much as one-third of the silver mined in New Spain and Peru went to the Far East.) On the return leg, the precious Asian wares traveled across the Pacific, via the Philippi es

olo ized

“pai i the late si tee th e tu

, to A apul o o Me i o s

est

coast. They then crossed Mexico overland for shipment to Spain. However, much of the porcelain and carved ivory remained in the Americas and, in many cases, influenced artists working there: Mexican ceramics display the impact of the Galleon trade most vividly. But Chinese silk designs may have inspired some of the patterned garments of Guatemalan sculptures, whose faces also betray the subtle influence of Asian ivory carvings. Furthermore, this figure also displaying the routes that have taken by the two Chief during their expedition with regards to the galleon trade. This trade have brought a lot of things in the country, not just the products itself but also the cultural value from the origin of the ships. As per mentioned by the National Commission for Culture and the Arts (NCCA) (2010), as Ni k Joa ui fi st

ediu

oted, …the

to edu e the o ld to a illage .

This experience of traveling of the Spaniards from the country to Mexico, gave them new idea about the currents of the winds such as Habagat and Amihan, in order to navigate back and forth. Furthermore, according to Legarda (1999) the reorientation of the colonial economy began with the arrival in 1778 of Governor-General José de Basco y Vargas, who saw the futility of the galleon trade and the potential for large-scale production of cash crops for export. He encouraged Spaniards to invest in the cultivation of spice plants; of silk, cotton, indigo, and hemp; of fruit trees, sugarcane, cacao, and coconut. He tried to spur local manufacturing to limit the silver drain. And he established the Royal Company of the Philippines in 1785 to finance these projects and handle the new trade he envisioned with Europe, other Spanish colonies, and the rest of Asia (pp. 77-88). Legarda (1999) described the end of the galleon trade as : 8

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The last day of the galleon trade—exports of Philippine origin accounted for less than 10 percent of the value of total exports, and many of these were harvested forest or sea p odu ts su h as i d s est, othe of pearl, tortoise shell, sea cucumber, and timber. By the 1840s, though, almost 90 percent of total export revenue came from six Philippine-grown cash crops: sugar, tobacco, abaca (hemp) fiber and cordage, indigo, coffee, and cotton (pp. 45) Moreover, Wickberg (1965) have mentioned that in 1834, the company was eliminated, and Manila was officially opened for trade and residence to merchants of any nationality coming from any foreign port. At the same time, discrimination against Chinese ships trading at Manila ended; henceforth all ships were subject to the same levies and processes (p. 48). The latter were British and some American trading companies that advanced imported goods on credit, allowing Chinese businesses to operate with little of their own capital (pp. 47-49). The influence of trading system among the Manila residence and its suburbs was inevitable. It creates complexities in the way of living o...