It appears that of the $1,360,506.53 the sum of $118,103 was spent on the colonial department in Madrid; $70,822.73 on the colony of Fernando Po, on the coast of Africa; $718,000 on pensions, and $367,000 was paid for interest. Nearly all of the $65,150 devoted to the state was used to defray the cost of Spain's diplomatic and consular service in China, Japan and the French and British colonies. Of the sum alloted for the church and courts, $460,315.14 was spent on the courts, $625,860 for salaries of the bishops and parochial clergy, and $419,680 for materials for the ecclesiastical establishment. War, though it was a time of peace, absorbed almost a third of the entire revenue of the government. Seven hundred seventy-one thousand forty-three dollars twenty-five cents was paid for the salaries of officials in the administrative bureaus, $1,997,649.27 for the army (13,291 individuals, of whom only 2,210 were Europeans), and $1,332,484.32 for materials for the army.

Of the allotment for the treasury, $232,996 went to maintain the central offices of the intendency-general and the controllership, and $216,244 for provincial administration. Of the navy allotment $1,147,540.20 went for materials and $1,349,504 for salaries and wages. The governor-general and provincial governors and commanders received for salaries $272,606, the Civil Guard cost $843,735.91, the maintenance of communication, including posts, $969,921.92, and the general directorate of the civil administration $88,555. Of the money appropriated for public works, $141,175.55 was spent for special institutions of instruction, chiefly in Manila, and $109,690 for public works generally. One hundred forty-two thousand three hundred sixtyfive dollars went for the general inspection of mountains, $15,575 for mines, $103,570 for agricultural schools and stations, and $37,462 for navigation and lighthouses.

14

These figures are interesting as a basis for comparing the Spanish and American administrations. It appears that taxes are

14 Report of Schurman Commission (1900), I, p. 79.

higher at present than they were before 1898, but they are more justly distributed and the people are better able to pay, and the proceeds are spent for the benefit of the country instead of being stolen or wasted.

CHAPTER XI

Personal Status and Trade Restrictions

Classification of Residents-Restrictions-Status of Natives-Slavery Forbidden by Law-The Tribute and Its Collection-The Encomiendas-A Sort of Slavery-Restrictions on Commerce—The Galleons-Japanese and ChineseSegregation and Regulation of Chinese-Massacres-Effect of the Restrictive System on Character of the Natives.

The reader who would understand the Philippine people and judge of their capacity for self-government must never lose sight of the vital fact that they are the products of the Spanish mission system of colonial government, a system designed to save souls, but not to develop merchants, traders, agriculturists or citizens. At every point where it touched the natives it was restrictive and repressive, seeking to control his every thought and action. Nothing was further from the thought of the Spaniards, particularly those to whom Spain delegated the actual power, than to train the inhabitants for citizenship in a free constitutional government. The laws were paternal in character and were enforced by a superior class of foreigners temporarily resident in the country and to but a limited extent identified by interest or sympathy with the people. The Spaniards who were without some official position in either Church or State were of little importance in the community.1

The inclination of the Spanish mestizos was to identify themselves with the Spanish official class in order to share the privilege of living on their native blood relations. Frequently they

1 The number of unofficial Spaniards increased during the last three or four decades. In 1899 a Spaniard, Señor José de Loyzaga, the editor of El Commercio, testified that there were about 3,000 Spaniards in the islands. "The Spaniards who hold extensive properties here are no more than three. The rest of them are engaged in keeping shops or something of that sort." Rept. Schurman Com., II, p. 373.

270

were greater tyrants than the Spaniards. The civil, military and ecclesiastical officials, a few Spaniards who were engaged in some business favored by the government, such as farming a monopoly, the Chinese and the natives constituted the inhabitants. The great proportion of Chinese were native born, but they were always regarded as a distinct class and subjected to special laws and regulations.

Until about the middle of the nineteenth century foreigners, other than Chinese, were not permitted to reside in the Philippines. After the relaxation of the laws governing foreign commerce a few English, Swiss, French and American traders established themselves in Manila; but they were a negligible factor except in so far as they aided in developing commerce. They were, in a sense, transients, although but little more so than the Spanish civil and military official class who were there to govern the inhabitants for a while and then returned to the Peninsula or to some better official position in Mexico or South America. The sort of people who might accompany a governor-general to the Philippines was determined by law. Discharged soldiers were not allowed to remain in the country. Of course these restrictions were not always enforced, but the policy was fixed and definite 2

Trade was regulated for the benefit of the India House in Seville, and until after the loss of Mexico the foreign commerce of the islands was little more than a form of gambling engaged in by the public officials and their friends, often with money borrowed from the Obras Pias. Commerce, in a broad and generous sense of the term, was forbidden by law. Manufacturing in such a community could never rise much above the level of tinkering. Agriculture never made substantial progress. There were a few haciendas, or plantations, which were owned by the friars or by Spaniards, or caciques, and worked by tenants or by workmen who were generally in a condition of peonage, if not

2 From December, 1853, to November, 1854, there were four governorgenerals. From 1835 to 1897 there were fifty governor-generals, each serving an average of one year and three months.

十

actual slavery. The small farms were constantly being divided among heirs until they became little more than truck patches.

In the provinces the people lived in villages gathered about great stone churches and conventos in which the parish priest lived and from which he practically governed the local community. All the political institutions were designed for the attainment of religious ends. The legal status of the natives was that of minors who were never expected to reach their majority. They were the wards of the State, by which they had been placed in the custody of the Church to be made into Christians, but never into citizens.

The system was admirably adapted for its purposes. It assumed that the Indians were incapable of development; that they were children and would remain children through successive generations. It contemplated a perpetual condition of tutelage. It succeeded for centuries in isolating the country from the influence of liberal ideas which were revolutionizing and remaking the Western world. It left its mark upon every Filipino who was born and reared under its influence. It paralyzed individual initiative, denied the right to participate in public affairs or to acquire modern scientific education. It kept the people shrouded in the mists of economic, religious and political medievalism, and it fought with unparalleled bitterness every attempt to let in the light of modern civilization. Its beneficial work, for which full credit should be awarded, was completed by the end of the first half century of Spanish occupation; thereafter it was obstructive, repressive and detrimental to the best interests of the people.

When the Spaniards arrived in the Philippines they found three conditions of persons among the natives-the chiefs, the timaguas or plebeians, and slaves. Of the latter class there seems to have been a great number. Slavery was an established institution and has never been entirely disestablished in all parts of the Archipelago. According to Morga there were two classes of slaves-seguiguilires, who were in absolute slavery and required to do all kinds of work in and about the master's house, and namamahays, who lived in their own houses and came at the