THE NINETEENTH
CENTURY PHILIPPINE
ECONOMY, SOCIETY
AND THE CHINESE
MESTIZOS
Objectives
➢ locate Rizal’s life in the Philippines within the wider context of the
developments in the 19th century;
➢ explain the important of the Chinese mestizos and their ranks within the
changing Philippine economy and society; and
➢ discuss the interplay of several factors that contributed to the changing
landscape of Philippine society and economy.
Vocabulary
cash crop - crops cultivated for export
decree - an order issued by a legal authority; a policy pronouncement
Galleon Trade - From 1565-1815, this was the form of trade between the Philippines
and Mexico. The galleons would sail to Mexico loaded with goods and return to
Philippines carrying the payment in silver.
insulares - pure-blooded Spanish born in the Philippines.
mestizos - a person with mixed ancestry—one parent Chinese or Spanish and the other
is a native; an important sector of the population in 19th century Philippines.
merchant houses - firms established in Manila and other cities by foreign traders.
pacto de retroventa - an agreement that allowed a landowner to sell his/her land with
the guarantee that he/she could buy a land back at the same price.
Vocabulary
Parian - Chinese enclave established in 1581 outside the walls of Intramuros.
The Chinese were forced to live in the Parian.
peninsulares - pure-blooded Spanish born in Spain.
principalia - wealthy pure-blooded natives said to have descended from the
kadatoan class.
sangley - a term that proliferated in the Spanish Philippines to refer to people of
pure Chinese descent; came from the Hokkien word “seng-li” meaning business.
social stratification - a way by which people in a society are categorized based
on socio-economic as well as political standards.
The Changing Landscape of Philippines
Economy and Society
➢ 19th century was considered as an era of profound change in the
country.
➢ during this period, vast economic, political, social, and cultural currents
were felt.
➢ by the late 18th century, the monarchy in Spain experienced a dynastic
shift from the Habsburgs to the Bourbons.
➢ with the Bourbon leadership, Spain recalibrated colonial policies that
would have an effect on the Philippines.
➢ Bourbon policies and reforms were carried out with the goal of
invigorating the profitability of the colonies like the Philippines.
➢ Jose de Basco y Vargas who arrived in the Philippines on 1778 was the
first governor-general to the Philippines under the Bourbon mandate.
➢ the Galleon Trade was already a losing enterprise by the time Basco
arrives in the Philippines.
➢ the global wave of industrialization became a silver lining as Spain
sought ways to salvage the dwindling economy of the empire.
➢ an increased demand of raw materials presented an opportunity to
look into the agricultural potential of the Philippines.
➢ Basco established the Royal Philippine Company in 1785 to finance
agricultural projects and manage the trade between the Philippines
and Spain (and Europe) as well as other Asian markets.
➢ resistance from the Catholic church were apparent as they were not
receptive of the labor realignments entailed by the planned reforms,
and traders were still holding onto the Galleon Trade.
➢ Basco lifted a ban on Chinese merchants that reinvigorated internal
trade; initialized the development of cash crop farms; relaxed certain
policies that allowed the gradual opening of Manila to foreign markets;
and established Tobacco Monopoly to maximize the production of this
export good.
➢ by 1810, the Mexican War of Independence rattled the Spanish empire
which led to the loss of precious Latin American colonies as well as the end
of the Galleon Trade in the Philippines.
➢ Manila was opened to world trade by 1834 after the closing of the Royal
Company.
➢ foreign merchants and traders came and resided in Manila and took over
the role of financing and facilitating the burgeoning agricultural cash crops,
export-oriented economy.
➢ rapid development of the economy began to flow in the country through
cash crops like tobacco, sugar, cotton, indigo, abaca, and coffee.
➢ importance of land became more evident as cash crops became the major
source of revenue in the colony and as the provinces shifted to cultivating
cash crops, land ownership and management became a concern.
➢ farmers felt the pressure of the economy while hacienderos grabbed the
opportunity. For example, when a small landowner needed capital and
money, he would engage in a pacto de retroveneta. However, it became
difficult to buy back the land given the continuously increasing demand of
the economy and and the renewals of the sale,which further buried the
farmers in debts.
➢ the hacienderos would eventually forfeit the lands of the
farmers and they would be forced to become tenant farmers
or kasama.
➢ land acquisition also came in the form of land-grabbing.
➢ as the growing land economy required better management of
lands, inquilinos emerged, renting land to sublet it to small
farmers.
The Chinese and Chinese Mestizos
➢ Chinese and Chinese mestizos were the sectors who greatly
benefited from the changing economy in the country.
➢ Natives of the Philippines have had trade relations with the
Chinese since pre-colonial times and during the height of the
Galleon Trade, it was also the Chinese products that comprised
most of the goods being traded.
➢ the influx of the Chinese settlements in the country made the
Spaniards suspicious which led to stringent state policies
towards the sangley ranging from higher taxes, movement
restrictions with the establishment of the Chinese enclave (The
Parian), to actual policies of expulsion.
➢ Chinese proved themselves as the “necessary outsiders” in
the Philippine colonial economy and society.
➢ Spaniards realize the importance that the Chinese played in
sustaining the economy.
➢ eventually, the Chinese became integrated into colonial
society, giving rise to the intermarriages with indios that
gave birth to Chinese mestizos.
➢ the Chinese mestizos assumed an important role in the
economy all throughout the Spanish colonial period as they
have influenced the changing economy in the 19th century
by purchasing lands, accumulating wealth and influence.
Impact on Life in the Colony
➢ new economy demanded a more literature population to address
the rising need for a more literate professionalized workforce to
man the trading in Manila and other centers.
➢ this demand compelled the issuance of the colonial government
order in 1836 that required all to read and write.
➢ a passage of an education decree in 1863 was created that
mandated free primary education.
➢ the 19th century also gave birth to many schools that addressed
the growing demand for more professionals like Ateneo Municipal.
➢ the complex nature of the developing economy also allowed the
government to intensify bureaucratization and to streamline
colonial governance.
➢ As Manila became a trading center, it became a viable destination for people
seeking better opportunities or those wanting to escape the worsening
conditions in the farmlands.
➢ the increase rate of internal migration raised several concerns:
1. people flocked the centers of trade like Manila. Overcrowding implied
issues in living quarters, sanitation and public health, and increase in
criminality.
2. the continuous movement of people made tax collection extra difficult.
➢ the 1849 decree of Governor-General Narciso Claveria was created to urged the
people in the colony to adopt surnames. the catalogo de apellidos drawn up, the
colonial government assigned surnames and forbid changing names at will.
➢ registration and policies like cedula personal was bearing one’s names and
residence, the colonial government sought to have a better surveillance
mechanism.
➢ The guardia civil was established to help carry out these policies better.
➢ As the new economy afforded the colonial state new opportunities, it also
prompted the state to be more regulatory and to assert its authority.
Renegotiating Social Stratification
The Philippine society felt the impact of the developing economy. As a result, social
relations underwent redefinitions and the changing dynamics brought about a renegotiation of social
stratification. With the growing relevance of the mestizo population, new lines were drawn with the
following social strata:
Peninsular Pure-blooded Spaniard born in the Iberiab Peninsula (i.e., Spain)
-
Insular Pure-blooded Spaniard born in the Philippines.
Mestizos Born of mixed parentage, a mestizo can be:
Spanish Mestizo - one parent is Spanish, the other is native; or
Chinese Mestizo - one parent is Chinese, the other is native
Principalia Wealthy pure-blooded native supposedly descended from the kadatoan class.
Indio Pure-blooded native in the Philippine.
Chino infiel Non-Catholic pure-blooded Chinese.
➢ as the Spaniards lost economic power in the 19th century, they
asserted dominance by virtue of their race.
➢ this issue brought complications with the rising principalia and
mestizo populations who realized their indispensable position in
society as movers and facilitators of the economy.
➢ the renegotiation continued throughout the century as the
mestizos and principalia elite eventually demanded social
recognition that the pure-blooded Spaniards had consistently
denied.
➢ the wealthy mestizos and member of the principalia continued to
amass economic and cultural capital as they availed themselves
of the opportunity to obtain higher degrees in education not only
in the Philippines but also in Europe.
➢ these activities augmented their relevance in society as it was
from these ranks that articulations of nationalism would emerge.
