Spanish

Philippine Economy Under the Spanish Occuption

On April 27, 1565, Spanish troops numbering a mere 500 soldiers invaded the archipelago and attacked the defiant Tupas, son of Humabon, and Tupas was made to sign an agreement after his defeat and effectively placing the Philippines under Spain.

1565, May 8. The Island of Cebu is surrendered to Legaspi by its ruler King Tupas. Legaspi establishes the first permanent Spanish settlement on Cebu and becomes the first Spanish Governor-General.

1565, Feb 13. With four ships and 380 men, Miguel Lopez de Legaspi arrives in the Philippines.

System of Government Centralized form of government. Frailocracia

Religion Christianity's Introduction

Social Structures Principalia Ilustrados

Educational System Educational Decree 1863 focused on the Christian Doctrines

System of Writing Latin alphabet

“PHILIPPINES UNDER IMPERIAL

SPAIN”

The Spaniards implemented economic programs which are mainly about land ownership and taxes. The programs are encomienda, hacienda, imposition of different kinds of taxes, galleon trade, monopoly and polo y servicios.

Economy

EncomiendaThe encomienda is a land ownership system with the use of titulo as proof of ownership. These are the lands given by the King of Span to its soldiers who joined the military expeditions. The landlords are called encomendero. They are the ones who collect the taxes or rent from the residents of their land. It is his obligation to protect the residents from any danger or threat like bandits and invaders. But as depicted in the picture, the contrary was happening.

Taxation To support the colony, several forms of taxes and

monopolies were imposed.

Direct:The tithe is the payment of the 10% of an individual’s annual income to the government. The sanctorum is the tax being paid as support to the church. The tribute(buwis) is the tax or rent given to the landlord a resident is under. It may be in cash or in kind (tobacco,chickens, produce, gold, blankets, cotton, rice, etc., depending on the region of the country), fixed at 8 reales and later increased to 15 reales.

Tributo = 10 realesDiezmos prediales (tithes or 1/10) = 1 real

Treasury = 1 realSanctorum tax (church tax) = 3 reales

All in all, an average Filipino will pay 15 reales.

IndirectAlso collected was the bandalâ, an annual enforced sale and requisitioning of goods such as rice. Custom duties and income tax were also collected.

By 1884, the tribute was replaced by the Cedula personal, wherein colonists were required to pay for personal identification. Everyone over the age of 18 was obliged to pay. The local gobernadorcillos had been responsible for collection of the tribute. Under the cedula system, however, taxpayers were individually responsible to Spanish authorities for payment of the tax, and were subject to summary arrest for failure to show a cedula receipt.

Forced Labor (Polo y

servicio)

Polo y servicio is the forced labor for 40 days of men ranging from 16 to 60 years of age who were obligated to give personal services to community projects. One could be exempted from polo by paying the falla, a daily fine of one and a half real.

In 1884, labor was reduced to 15 days. The polo system was patterned after the Mexican repartimento, selection for forced labor

Manila-Acapulco

Galleon TradeThe Manila-Acapulco Galleon Trade was the main source of income for the colony during its early years. Service was inaugurated in 1565 and continued into the early 19th century.

The Galleon trade brought silver from New Spain and silk from China by way of Manila. This way, the Philippines earned its income through buy and sell - that is, they bought silk from China for resale to New Spain and then bought American silver for resale to China.

The trade was very prosperous. But It neglected the development of the colony's local industries which affected the Indios since agriculture was their main source of income. In addition, the building and operation of galleons put too much burden on the colonists' annual polo y servicio, resulted in cultural and commercial exchanges between Asia and the Americas that led to the introduction of new crops and animals to the Philippines notably tobacco that gave the colony its first

The trade lasted for over two hundred years, and ceased in 1821 with the secession of American colonies from Spain.

real income which benefit extended to the common Indio.

Royal Society of Friends of the Country

Established by Jose de Basco y Vargas, the society was tasked to explore and exploit the island's natural bounties.

The society led to the creation of Plan General Economico of Basco which implemented the monopolies on the areca nut, tobacco, spirited liquors and explosives.

It offered local and foreign scholarships and training grants in agriculture and established an academy of design.

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

It was introduced on 1780, vanished temporarily on 1787-1819, 1820-1822 and 1875-1822 and ceased to exist in the middle of the 1890s.

Royal Company of the Philippines

March 10, 1785, Charles III created the Royal Philippine Company with a 25 year charter.

It was granted exclusive monopoly of bringing to Manila, Philippines; Chinese and Indian goods and shipping them directly to Spain via the Cape of Good Hope.

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 vehemently opposed by the traders of the Galleon trade who saw it as competition. This gradually resulted into the death of both institutions: The Royal Philippine Company in 1814 and the Galleon trade in 1815.

On June 12 1898, Emilio Aguinaldo declared the independence of the Philippines in Kawit, Cavite, establishing the First Philippine Republic under Asia's first democratic constitution.

The country under Spain was economically under developed. The Philippines was an economic burden to Spain that caused an annual deficit to the Spanish coffers.

Philippine Economy under Spain

The founding of the Economic Society of Friends of the Country helped in theagricultural advancement of the country.

The Tobacco Monopoly made the Philippines the greatest tobacco-growing country in the Orient. All farmers had a quota of tobacco toraise annually and all were sold to the Government.

Spanish policies imposed here were not that helpful for the Filipinos and most government officials were of Spanish by blood and Filipinos were the ones made to work tedious jobs.

There were many changes in the Filipino society during the Spanish colonization.

Spanish authorities did not show any sign of fairness towards the Filipinos especially in the division of responsibilities in polo y servicio. Because of this irresponsibility, Filipinos still work apart from their allotted time for work.

Filipinos who were working in the Galleon Trade experienced misfortune because of the heavy loads Spanish authorities were asking of them. As a result, many workers died and later on separated families because of poverty being experienced.

Presentation by:BADONGEN, SHIELA MAY B.

ABAD, JOHN DEREK A.

MRS. VIOLETA F. APILESSST IV adviser