i(iiiiijgiiijiiii§ NOMIC CONDITIONS IN THE PHILIPPINES MILLER. iJibrns Wll »■ iji^WViPttrwK; QWT OF / Digitized by tine Internet Archive in 2007 witin funding from IVIicrosoft Corporation http://www.archive.org/details/economicconditioOpmillrich ECONOMIC- CONDITIONS IN THE PHILIPPINES BY HUGO H. MILLER u FORMERLY CHIEF, INDUSTRIAL DIVISION BUREAU OF EDUCATION, MANILA REVISED EDITION GINN AND COMPANY BOSTON • NEW YORK • CHICAGO • LONDON ATLANTA • DALLA-S • COLUMBUS • SAN FRANCISCO COPYRIGHT, 1920, BY HUGO H. MILLER ALL RIGHl-S RESEBVBD 320.3 tgfte iatfttngam grctf< GINN AND COMPANY • TRO- PKUnORS • BOSTON • U.S.A. i.x. PREFACE TO THE FIRST EDITION This book is written for beginners in the study of economic conditions in the Philippines. Its object is to explain the economic position of the Filipinos in their own Islands and in the world in general, and to state, analyze, and discuss economic conditions found here. Theoretic economics enter into this discussion only as subordinate to and explanatory of actual fact. It is believed that this study will give to students an idea of actual economic conditions existing in the Philippines and a comparative idea of those found in other countries, and at the same time will result in a knowl- edge of the natural laws upon which all economic discussion and reasoning must be based. ' Throughout the book the data obtained from special economic reports by teachers are presented in collective form. For reference purposes, information which warrants special notice is credited to the teacher who furnished it. I am also indebted to the following persons for reviewing the portions of the manuscript which treat subjects in which they are particularly interested. From the Bureau of Agri- culture : Mr. Otis W. Barrett, Chief of the Division of Experi- ment Stations ; Mr. P. J. Wester, Horticulturist ; Mr. M. M. Saleeby, Fiber Expert ; and Mr. C. M. Connor, Chief of the Agronomy Division. From the Division of Ethnology, Bureau of Science : Dr. M. L. Miller, Chief ; Mr. H. Otley Beyer and Mr. E. B. Christie. Dr. James A. Robertson, Librarian, Philippine Library ; Father Jose Coronas, Assistant Director, Weather Bureau ; Mr. W. L. Gorton, Chief of the Irrigation Division, Bureau of Public Works. In addition I have had ^^^rt /a OQ iv ECONOMIC CONDITIONS the cooperation of several persons in the Bureaus of Educa- tion, Customs, Internal Revenue, Science, and Public Works. The data furnished by Mr. Conrado Benitez of the University of the Philippines, Mr. Herbert W. Krieger, of the Philippine School of Commerce, and others are also duly acknowledged in the proper places. The manuscript was reviewed at the University of Cali- fornia by Professors David P. Barrows, Carl C. Plehn, and H. R. Hatfield, and at The University of Chicago by Professor Paul J. Goode. Books which were consulted and from which extracts are taken are mentioned in the text or in footnotes. H.H. M. PREFACE TO THE REVISED EDITION Changes in the course of study have necessitated the addi- tion of more commercial geography and theory of economics to this text. The book now becomes an outline for the entire course in commercial geography and economics in the fourth year of the high school. Economic facts as they relate to conditions in the Philip- pines are presented rather fully in the text. The material in commercial geography and economic theory is especially emphasized in the suggestions for review and original work by references to original sources and to textbooks. It is generally recognized that in an elementary high-school course in economics the maximum of facts and the minimum of theory is desirable. Nevertheless, theory is the course of least resistance for both teacher and pupils. Facts are hard to find, difficult to apply, and less susceptible to discussion than theory. The author hopes that the suggestions at the end of each chapter will be sufficient to point the way, and that the teacher will use his own initiative in having them applied to local conditions. One good original report by the pupil is, in the opinion of the author, far more profitable than the discussion of unapplied theory. A well-directed discussion of an economic condition of fundamental insular or local importance will result in a better grasp of the sub- ject of economics than the elaboration of intangible theory. The theory should be applied, else the subject will soar far above the heads of the pupils, and the objects of the course will not have been attained. vi ECONOMIC CONDITIONS The book has been revised in this spirit and with the hope that the course can everywhere be made a live and interesting one. Facts have been brought down to the year 1919, which date probably marks a new phase in the economic develop- ment of the Philippines. For assistance in the preparation of this edition I am especially indebted to Mr. John W. Osborn, Chief of the Academic Division, Bureau of Education ; Dr. Stanton Young- berg, Chief Veterinarian, Mr. Don D. Strong, Chief of the Fiber Division, Mr. Silverio Apostol, Chief of the Plant Industry Division, and Mr. Antonio Peiia, Chief of the Statistical Division, Bureau of Agriculture ; Mr. Francis B. Mahoney, Chief of the Commercial Intelligence Division, Bureau of Commerce and Industry ; the Directors of the Bureau of Labor and of the Bureau of Commerce and Industry for typed copies of their reports ; the Director of the Census of 1918; Professor Kenneth Duncan and Professor C. F. Remer of the Departments of Economics in Canton Christian College and Saint John's University, Shanghai, respectively. H. H. M. FOREWORD TO THE FIRST EDITION In accordance with the present purpose of the Bureau of Education to adapt its instruction as closely as possible to the life needs of the people of the Philippines, a course has been introduced into the high-school curriculum embodying a half year of physical geography, a half year of commercial geography, and a full year's study of economic conditions in the Philippines. This book is to serve as the text in the subject of economic conditions in the Philippines in the fourth year of the secondary course. It is not a theoretical treatise on economics ; it rather represents a study of everyday facts with which all young men have to do who are engaged in any useful occupation in this country. In the last year of his school work, instead, of devoting himself to purely academic studies, the pupil assimilates a body of information which tends to lead him into intelligent and useful citizenship. This is one of the richest and most interesting fields of investigation open to the Filipino student ; it is a new field ; it has never been covered heretofore in any adequate way, though all the facts involved have a direct bearing on the industrial and social welfare of the Filipino people. The preparation of this book has involved many months' work by a large number of well-qualified persons. The dearth of publications on the various subjects considered has necessitated the gathering of original information from all parts of the Islands, and on this task approximately one hundred and twenty American and Filipino teachers have been employed. Under date of March 1, 1912, an outline prepared vii viii ECONOMIC CONDITIONS by Mr. Hugo H. Miller was sent out by the Director of Education to these collaborators throughout the Islands. The outline took up in detail various subjects treated in this book, and by questions and sugg^estions presented a plan for a report on the economic conditions found in each district. Selected supervising teachers and special high-school teachers were engaged on this work. The nature of their ordinary duties is such that these persons must have a thorough understanding of the social and economic complexions of the communities in which they are working ; they are better fitted than any other class of persons to furnish information of this character. The reports submitted are voluminous and in most cases exhaustive and accurate. In the writing of this textbook Mr. Miller has had at his disposition all the data accumulated by the Bureau of Edu- cation in the working out of the program referred to above. He has brought to this task a breadth of view and a maturity of judgment resulting from several years' study of these problems from the vantage point of a supervisory position in the industrial department of the Bureau of Education. Mr. Charles H. Storms, Instructor in the Philippine Normal School, was temporarily assigned to the General Office of the Bureau of Education to assist in the preparation of this book. He compiled material from the special economic reports, col- lected and arranged data, criticized the manuscript and general contents, and wrote the chapter on sugar. The completed text is an original and valuable treatise on a vital subject, and as the facts here presented are digested by the many hundreds of pupils who will devote themselves to their study, the book may well prove to be one of the effective agencies in the material upbuilding of the Philippines. FRANK R. WHITE Director of Education REFERENCES Required Supplementary Text : Bullock's "Elements of Economics." Required Reference Texts, of which several copies should be available in the library : Miller's " Commercial Geography," " The Materials for Commerce for the Philippines." Toothaker's " Commercial Raw Materials." Brigham's " Commercial Geography " (edition of 1918). Finch and Baker's '* Geography of the World's Agriculture " (Depart- ment of Agriculture, Washington, D. C, 1917). Bishop and Keller's " Industry and Trade." Miller and Polley's " Intermediate Geography." Additional References : Statistics on principal crops of the Philippine Islands (issued annually in photographic form by the Bureau of Agriculture and obtainable on request through the proper channels). Statistical Abstract of the United States. The Philippine census of 1903 and the census of 1918. The World Almanac. Annual Report of the Director of Agriculture. Annual Report of the Director of Education. Annual Report of the Director of Health. Annual Report of the Insular Collector of Customs. Annual Report of the Director of Public Works. Annual Report of the Director of Forestry. Annual Report of the Collector of Internal Revenue. Annual Report of the Director, Bureau of Labor. Annual Report of the Director, Bureau of Science. Annual Report of the Director, Bureau of Commerce and Industry. The Philippine Agricultural Review. Publications of the Bureau of Science. Publications of the Manila Merchants* Association. Bulletins of the Bureau of Commerce and Industry. The Manila newspapers. CONTENTS PART I. INTRODUCTION Chapter page I. Primitivk and Civilized Teoplks 1 PART II. AGRICULTURE. 11. Rice as a Food Crop 25 III. Corn as a Food Crop 64 IV. Lesser Food Crops 74 V. Abaca as an Export Crop 84 VI. Copra and Coconut Oil as Export Crops .... 107 VII. Sugar as an Export Crop 126 VIII. Tobacco as an Export Crop 150 IX. Minor and Possible Export Crops 164 X. Location and Character of Agriculture . . . 178 XI. Development in Agriculture 187 Xn. Land Tenure 220 XIII. Agricultural Labor 275 PART IIL INDUSTRIES OTHER THAN AGRICULTURE XIV. The Animal Industry 323 XV. Fishing 339 XVI. Forestry 347 XVIL Manufacturing 359 XVIIL Exchange 392 XIX. Summary 441 APPENDIXES 455 INDEX 473 xi ECONOMIC CONDITIONS IN THE PHILIPPINES PART I. INTRODUCTION CHAPTER I PKIMITIVE AND CIVILIZED PEOPLES Approximately seven eighths of the population of the Philippines belong to a civilized people known as the Fili- pinos. It is with them that this book primarily deals. ^ How- ever, the primitive and semicivilized tribes, which make up tlie other eighth, offer excellent examples of various stages of economic advancement from one of the lowest known condi- tions of the human race up to the present plane achieved by the Filipinos. It is therefore proper to begin a study of eco- nomic conditions in the Philippines with a short discussion of certain typical • primitive and semicivilized tribes. The economic systems and ideas of these tribes are so simple as to be readily understood, and a study of them prepares the way for a comprehension of more complicated systems and ideas of civilization. Moreover, the trading operations of these tribes with the Filipinos are of considerable commercial importance. 1 The names by which various groups, tribes, and divisions of peoples in the Philippines are designated are very loosely used. Strictly speaking, the term "Filipino" applies to all Malayan natives of the Philippine Islands. Popular usage, however, tends to limit the term to the eight Christian peoples, and within the covers of this book that usage will be followed. By the term " Filipinos," as used here is meant civilized Christian Malayan natives of the Philippine Islands. 1 r^;: ECONOMIC CONDITIONS The Negritos The most primitive people of the PhiUppines are the Ne- gritos.1 Most of them are found in the hills and mountains of several of the larger islands and on a few of the smaller ones. They probably do not exceed thirty thousand in nuitiber. These people belong to the black race. They have a dark skin, kinky hair, thick lips, and flat nose. They seldom exceed five feet in height, and are usually under that measurement. They live in groups varying from one family to several scores of persons. In most instances contact with more advanced peoples has changed their original mode of living, but many of them still follow the primitive existence which has been theirs for centuries. The chief and almost sole aim of the Negritos is food. Their method of obtaining it is such that they keep only a small supply or none at all. They make small plantings of camotes, corn, and squash, but beyond this they usually have no idea of providing for the future needs of their stomachs, feeling that they can find food when necessity demands. The most primitive Negritos depend principally on the chase as the chief means of securing food, and to a less extent on fresh- water fishing. The men are the hunters. Their implements are bows and arrows, spears, blowguns, traps, nets, and bolos. They are assisted in the hunt by dogs, their only domestic animal. The women sometimes take the place of the dogs in rousing the quarry. When they kill a deer, they make a definite division of the carcass. The man who first wounded the animal receives the head and breast ; the back- bone is given to the man who discharged the fatal shaft; one hind quarter is given to the owner of the dogs that roused the deer; and the remainder is divided among the other hunters. If a family kill a deer or a boar, " they halt at the spot where the animal has fallen, scoop a hole in the 1 See "The Negritos of Zambales," by William Allen Reed, Bureau of Science, Manila. PRIMITIVE AND CIVILIZED PEOPLES 3 ground, place the animal in it, and build a fire. Each of them takes the piece of the animal that suits his taste best, and roasts it at the fire. They go on eating until they have filled their bellies; and when thus satiated, they sleep. . . . When they awake, they go through the same operation, and so on until all the meat is devoured ; then they set out on the hunt again." ^ While the meat thus obtained in the chase is the chief food of most Negritos, they have vegetable food also. Much of this is found in the forest in the form of roots. A small amount is obtained through cultivation in kaingin.^ The ground is rouglily cleared, and rice, corn, squash, and sweet potatoes are i)lanted. Among the most primitive people a few rude shelters are erected near this clearing while the crop matures ; but such settlements are not permanent, and when once the food from the kaingin has been consumed, they wan- der off. Indeed, it sometimes happens (as in case of death) that they leave before the crop matures. Hunting, as we have seen^ is the province of tlie men. They also assist in planting ; but cultivation is left almost entirely to the women and chil- dren. The implements used in agriculture are sharp-pointed sticks, with which holes are made for the seeds. Bolos are also employed for various purposes. The clothing of the Negritos is very simple. The most primitive form is made from beaten bark. The men wear a breechcloth. The women sometimes use this garment, but generally wear a short skirt. The Negritos have simple implements to help them in procuring and preparing food. They use pointed sticks for agriculture, and make arrows, blowguns, and nets for the chase. They obtain fire with the flint and steel, or by rubbing together two pieces of bamboo. They cook in green 1 See Buecher's ''Industrial Evolution," p. 9. This is a quotation from A. Schadenberg in the Ztsclir. f. Ethnologie, XII (1880), 143-144. Probably no Negritos now exist who do not cultivate crops in kaingin. 2 Temporary clearings. 4 ECONOMIC CONDITIONS bamboo tubes or in pots obtained by trade. They have bamboo combs and seed necklaces for ornament, and bamboo musical instruments for enjoyment. Migrating as they do from place to place, the most primi- tive Negritos accumulate but few articles. Bows and arrows, blowguns, traps, nets, and dogs they take with them. The meat of wild animals, the wild roots, and the product of their clearings they must consume on the spot. Permanent results A NEGRITO SHELTER of labor which cannot be easily transported, such as substan- tial houses, coconut palms, and fruit trees, are of no interest to the Negritos. In addition to providing themselves with the simple forms of food and rough implements and ornaments, many groups of them have been able to acquire articles of iron and steel (bolos and spears). The cotton cloth which they use is obtained from the lowlanders, in exchange for forest products. The life of the Negritos may be summed up as one continuous search for food. PRIMITIVE AND CIVILIZED PEOPLES 5 The Subanuns The Subanuiis are a pagan Malayan tribe of the Zamboanga Peninsula in Mindanao.^ As with the Negritos, but to a less degree, the chief aim in life of the Subanuns is food. Unlike the Negritos, however, they ordinarily secure their food through agriculture, and only resort to forest products when their crops fail. They follow the kaingin system. In the clearings they plant rice, sweet potatoes, corn, millet, yams, PLANTING RICE IN A KAINGIN tobacco, vegetables, bananas, papayas, and betel vines. The Subanuns are not naturally of a roving disposition, but their implements of agriculture are not such as to enable them to cultivate the same clearings year after year. As soon as the ground hardens and the cogon grass obtains a foothold, their pointed sticks are useless, and they find it easier to aban- don their fields and clear others. This does not mean that they leave the locality immediately. So long as there is new forest 1 " The Subanuns of Sindangan Bay," by Emerson B. Christie, Bureau of Science, Manila. 6 ECONOMIC CONDITIONS suitable for clearing, they remain. But feeling the ultimate necessity of leaving, they do not plant long-time crops, such as coconut palms, areca palms, and the like (although they greatly enjoy the products of these), nor do they build houses of a substantial character. A Subanun family seldom remains in the same spot for more than ten years ; the time is usually much shorter. In clearing the ground different families of the commu- nity cooperate. In cultivating the clearing the men of the family to which the land belongs make holes with sharp- ened sticks, and the women and children follow, planting the seeds. Weeding is done twice, but the crops receive little cultivation. Although the Subanuns do but little hunting and fishing, they have a supply of meat in the two domestic animals, the pig and the chicken. They understand the fermentation of rice, and make a rice beer. The clothing of the Subanuns is made from cotton and abaca ^ cloths. The men wear trousers and shirts, the women waists and skirts. Turbans are worn by both sexes. For ornament they wear silver trinkets, beads, earrings, necklaces of dried seeds, brass anklets and armlets, wristlets made of shells and silver, rings and earrings of wood, coconut shells, seashells, horn, and brass, as well as bamboo combs, many of these being obtained by trade. For shelter the Subanuns build houses of one room, on wooden supports. They make the floor of split bamboo, palm, or wood, and the rest of the house of bamboo and light mate- rials, such as the leaves of nipa, buri, sago, and other palms. The space beneath the floor they give to the pigs and the chickens. In the houses they have mats of pandan or palm leaves. Their bedding consists of a few strips of cotton cloth. They also have baskets for storing food, pottery obtained by trade, brass gongs, and Chinese jars secured through barter with the Moros. ^ Musa textilis, Manila hemp. PRIMITIVE AND CIVILIZED PEOPLES 7 The Subanuns build rice granaries, which consist of large baskets erected on a platform and protected by a roof. In this way they store food to meet the future needs of their stomachs, and thus they are not at the mercy of the vagaries of nature. They carry on manufacturing in a rude way. Pottery is made by women. The clay is formed by means of a stone, a stick, and the hand. The pot is first baked in the sun and A PRIMITIVE SMITHY then in a hot fire. These crude articles are often objects of trade. Coarse and unornamented baskets are made of nito,^ rattan, bamboo, and wood. The garments of the Subanuns are made from cloth of their own weaving. They understand the distaff and the spinning wheel, but the cotton which they use they obtain from the Moros, from whom they buy cotton yarn also. The abaca is a home product. The looms are crude. The Subanuns understand working in iron. They use as tools bamboo bellows, an anvil (a piece of iron placed on 1 The stems of climbing ferns (species of Lygodium). 8 ECONOMIC CONDITIONS a block of wood), and a hammer. The raw material they obtain by trade, and turn it into chopping knives and a few weapons. From bamboo and wood they make musical instru- ments, rings, and combs. Palm and pandan leaves they weave into mats. The Subanuns have been elevated to a higher plane of civi- lization by barter with the Moros, who are much more advanced. The Subanuns barter mountain rice, wax, resins, and rattan for cotton fiber, yarn, and cloth ; for weapons ; for brass boxes, jars, trays, gongs, and ornaments of various kinds; and for Chinese jars. The Moro traders arrive in boats. The Subanuns come down from the hills, bringing their products on their backs, since they have no beasts of burden, vehicles, or boats. Sometimes, however, they use rafts on the river. In their transactions the Subanuns are often badly cheated by the Moros. The articles with which the Negritos are familiar are few, but those found among the Subanuns are much more numer- ous. Of daily use among the Subanuns are houses and food (rice, sweet potatoes, garden vegetables, wild and domestic meats, fish, and the like), clothing of coarse cotton and abaca cloths, crude baskets, and bolos. The implements used in production consist of pointed sticks, bolos, and knives, and the apparatus for ironwork and for spinning and weaving. The products saved for future use are chickens, pigs, rice stored in granaries, and corn stored in baskets. All these articles may properly be called necessities, for, directly or indirectly, they all sustain life or shelter the body. Besides these the Subanuns possess articles which are in no way related to their physical comfort, but which are kept for ostentation and future needs. Such are the personal ornaments of silver, brass, shell, and bamboo, the brass gongs, and the large Chinese jars. Although these do not protect or sustain the body, yet they can be exchanged for wives, food, clothing, or shelter. In particular are the Chinese jars much esteemed, for these ^re beautiful and useful, and limited in number. PRIMITIVE AND CIVILIZED PEOPLES 9 In tlie following points the Subanuns have surpassed the Negritos : (1) in obtaining a more permanent residence, which would become fixed if their rude cultivation could overcome the hardening of the soil and the weeds ; (2) in securing improved methods of obtaining foods, and an increase in quality and variety ; (3) in storing up food for the future ; (4) in the rude beginnings of pottery, metal work, and weav- ing; and (5) in the articles of art kept for ostentation and for future needs. The life of the Subanuns may be characterized as one in which agriculture normally gives a sufficient supply of food and a surplus. The surplus is stored against future want, or exchanged for articles of value. The Mountain Peoples The Igorots, Bontoks, and Tfugaos ^ belong to the most advanced of all the Malayan pagan tribes. They live in the Caraballa Mountains, where the narrow flood plains and the steep hillsides offer but little fertile and arable land. Yet of their various forms of production these people are most advanced in agriculture, a condition which has probably been brought about by their restricted supply of wild foods. They clear the steep hillsides of pine trees, turn the soil with sharp sticks, and plant sweet potatoes, millet, or beans. Such fields are most often entirely dependent on the rainfall for moisture, and are usually abandoned after a few years' use. For their supply of rice these people rely on land made by building terraces on the steep hillsides and filling these with gravel, sand, clay, and soil. This land is usually kept from being washed down the hillside by a thick retaining wall built of 1 This discussion is based on "The Bontoc Igorot," by A. E. Jenks, Bureau of Science, Manila, the economic report submitted for If ugao by Roy F. Barton, and verbal information given by H. Otley Beyer, Bureau of Sci- ence. The Ifugaos and Bontoks live in subprovinces of the same names ; the Igorots live in the subprovinces of Benguet, Lepanto, and Amburayan. Formerly the name Igorot was applied to all these tribes. 10 ECONOMIC CONDITIONS stone. Such walls are from fifty centimeters to ten meters in height; in many communities they amount to thousands of linear kilometers.^ The human labor expended on these terraces is enormous. In places whole mountain sides are covered with terraces which contain thousands of hectares, being the results of generations of toil. In these fields several methods of irrigation are employed. Sometimes there are canals fed by springs. Sometimes rivers are diverted into canals by means of dams and weirs. Thus the water is brought to the terraces, and flows from plot to plot, over the whole mountain side. This work is done by communal labor, and the water is divided among those who build the system. For small patches, where a flow is not obtainable, water is lifted from rivers by sweeps, or is carried in jars. The implements of tillage employed by the Igorots and Bontoks are sharpened sticks ; the Ifugaos use crude wooden spades. These are effective in ground soaked and softened with water, and the soil is thoroughly broken up. The soil is then puddled with the feet. These people understand the use of fertilizers also, and add pig manure, ashes, grass, and sweet-potato vines to prevent impoverishment of the soil. Every two years they add new soil. The grain is sown thick in a small seed bed ; after it has sprouted, it is transplanted into the terraces. The cultivation of the fields is done care- fully. Women and children pull the weeds, and thin out the plants. Old women and children protect the crops during the day; at night fires are built to scare away wild hogs. The Bontoks and Igorots make scarecrows, consisting of bunches of leaves, figures of large birds, and the like. These are hung on poles, and are often kept in motion by systems of strings attached to floats in a rapidly moving current. In the rice harvest four or five cutters reap the grain and place it in bundles for one woman to bind and carry to the transportation baskets. 1 In Ifugao there are more than 19,000 kilometers of eight-meter wall. A Kaingin Rice Terraces ADVANCE IN AGRICULTURE 12 ECONOMIC CONDITIONS • Rotation of crops is practiced, but not for the purpose of in- creasing fertility or retarding the exhaustion of the soil ; it is rather to make constant use of the land. The best example of this is the planting of sweet potatoes in the terraces after the rice has been harvested. The system of agriculture as a whole is excellent, and such that the mountain people ^ wrest from their barren hillsides a supply of food more than sufficient for their immediate needs. In the villages there are granaries, built of heavy pine planks and timbers, with thatched roofs extending almost to the ground. Here the rice is stored. Corn and millet are kept in the dwellings. Beans are dried and stored in baskets. The Igorots slice, dry, and store sweet potatoes also. These peoples are fairly well supplied with domestic ani- mals. Horses of good breed are raised, and used for riding and packing. Carabaos and cattle are also raised, but are used neither in agriculture nor m transportation ; their flesh, however, like that of the hog, is much appreciated. Hogs are kept in pens; they are fed three times a day, with sweet- potato vines, parings, and green vegetable matter, always cooked. The refuse of tlie pen is the chief fertilizer. Besides these animals chickens and dogs are raised about the house. The sources of food eaten by the Ifugaos have been calculated by Roy F. Barton, as follows : Food Source Fraction of Total Subsistence Agriculture .... Primitive food getting Animal culture . . Importation .... Total .... .84 .094 .042 .024 1.000 The clothing of the men consists of a girdle of bast, rattan, or brass links. This supports a breechcloth, which is made 1 In this chapter the term " mountain people " refers to the Igorots, Bon- toks, and Ifugaos as a whole. Turning the ,Soil Photo by Roy F. Barton likm^M^HiK J ^P ^^ .-^ .-J \ mf^^^'-^mm ^I^^HKKaBmmKxmm ' 1 ^•'♦P''j^ S?«i 1 ^^^^"^L^m^^ iii |flnMHpn9 i4| 1 Planting RICE CULTIVATION IN TERRACES Photo by Roy F. Barton 14 ECONOMIC CONDITIONS of bark or of cotton cloth spun by the women, or obtained in trade with the Ilocanos. To this is sometimes added a light blanket, worn when it is cold, as in the late afternoon or the early morning. The Bontoks wear a small hat of basketwork, which is used more as a pocket than as a protection for the head. The Igorots wear a headband for the same purpose. The women wear a skirt, a girdle, and a waist, usually of cotton. Blankets are used by the women as well as by the men. A]S IGOKOT HOUSE The agriculture of the mountain peoples is such that there is no necessity for changing residence. Their houses are there- fore much more comfortably and permanently constructed than those of the Subanuns. They are of two types : one built high above the ground, on large pine timbers ; the other resting on the earth. The sides are of overlapping pine boards or of mud and stone. The steep-sloped roof is made of grass. The mountain peoples manufacture numerous articles. They make stone into hammers, and into troughs and bowls for pigs. They make the crude agricultural implements. They PRIMITIVE AND CIVILIZED PEOPLES 15 fashion wooden pails for the food of pigs, wooden dishes, bowls, dippers, and spoons for the household, and wooden shields and spears. They often carve tobacco pipes out of wood. This work is done laboriously with knives and fire, and the articles are frequently ornamented with the figures of people or of animals. The making of articles from metal is con- fined to a few persons, for the reason that this requires con- siderable skill and experience. In the smithies are produced PRIMITIVE POTTERY MAKING several styles of spear blades, battle-axes, and bolos. Two or three men work together. One operates the bellows, an- other feeds the fire and does the heavy striking during the initial part of the work, and the third, the blade maker, directs the labor and performs the finer parts of the production. The iron used is scrap, obtained from the lowlands. The metal is hammered with a large stone hammer on a stone anvil, and is tempered in water. Nearly all Igorot towns make the clay and wooden pipes locally used for smoking tobacco. A few men, however, gain a living by traveling from one town to 16 ECONOMIC CONDITIONS another making pipes of brass. These men fashion a model of the pipe bowl in beeswax embedded in a jacket of clay. When the clay is baked, the wax melts and is drawn off, leaving a clay mold. Into this the molten brass is poured. Brass pipes are usually fitted with a stem of similar metal. Where suit- able clay is found, pottery making is also carried on, and, as with the Subanuns, the work is left to the women. The bowls, formed with the hand and a stick, are sun-baked, then tired, and afterwards glazed with resin. Baskets, on the other hand, PKLMITIVE WEAVING are made by the men. These are produced in numerous forms, some for storing food, some for winnowing, some for holding rice. One of the most important kinds of baskets Ls that used by the men for transportation. A small amount of sugar cane is grown. This is crushed in crude mills, and the juice is crystallized in large iron boilers. It is often fermented in tightly covered jars. The drink thus made is known as basi. Tapui, or bubud, a rice beer, is made and drunk extensively. Several salt springs PRIMITIVE AND CIVILIZED PEOPLES 17 are to be found in this mountainous region. The salt from the water of these springs is allowed to accumulate on stones. The salt is then washed from the stones, and the resulting brine is evaporated. The Igorots obtain whetstones, flint, and clay for pottery, and to. a small extent mine copper and gold. From the forests they cut lumber for their houses, the logs being reduced to boards by means of axes. It i§ interesting to note that in the raising of crops and the transformation of materials the work is divided. The older children gather food for the pigs and guard the rice terraces. The men cut the wood and lumber, build houses and dikes, construct irrigation dams, and transport the harvested rice. They manufacture and sell basi. They produce implements and utensils for the house. They weave baskets, and work with stone and metals. The women are the spinners and the weavers (for some cloth is made by these people). They also prepare the seed beds and set out the rice plants in the terraces. They plant, cultivate, and harvest sweet potatoes, millet, corn, and beans, and assist the men in transporting soil. Some are makers of pottery and of salt. Both men and women thresh rice, carry water, and make the rice drink. The old people are the counselors, and do the light work. They guard the crops, attend the children, carry water, and cook the food. Division of Labor between Sexes in Ifugao^ Men Women Both Spading fields Planting rice Cooking Getting wood Tending rice Harvesting All work in wood Weaving Care of baby Pot burning Pot molding Carrying rice to granary Blacksmithing Gardening Camote culture Rice-field construction Basket making 1 By Roy F. Barton. 18 ECONOMIC CONDITIONS Often a larger number of persons than are included in the family are needed to do a piece of work. In housebuilding, and in much of the agricultural work, such as constructing a system of irrigation, several families group their labor. The mountain peoples do not employ animals in tilling the soil, nor do they often employ them in transportation. Goods are carried on the backs of men and women. Some of the articles manufactured by the mountain peoples are not produced in all communities. Thus, in Bontok, pot- tery is made by women of Samoki ; salt comes from Mainit ; battle-axes and spears from Baliwang and Balbalasan ; clay tobacco pipes are made in Agawa ; whetstones are the prod- uct of Basao. These articles are disposed of by men from the producing towns, who, traveling in groups, take their wares on their backs to other towns for trade. The system is one of barter ; that is, the men exchange their products for others obtainable in the different localities. Yet in all these trans- actions there seems to be a growing preference for the use of certain objects as a medium of trade. Particularly is this true of manojos (bundles capable of being grasped in the hand) of rice in head. The Igorots often pay for articles with these bundles. If they barter one article for another, they often esti- mate the values of these in terms of manojos of rice. To a less extent pottery, tobacco, and salt are used in exchange. More and more also the Igorots are employing silver and copper coins and even paper bills, but these are the result of a civilization higher than theirs. In comparing the Subanuns with the mountain peoples, as we have below, we readily see points in which the latter have surpassed the former, and other points in which the two are on the same plane. 1. Though the implements of agriculture ^ w^hich the Igorots and Bontoks employ are the same as those of the Subanuns, the former have, through irrigation, succeeded in preventing 1 The spades used by the If ugaos are superior to the pointed stick. PRIMITIVE AND CIVILIZED PEOPLES 19 the hardening of the soil and in keeping out weeds. By the use of fertilizers they have prevented exhaustion of the soil. Thus, being able to use the same piece of land constantly, they have achieved permanency of residence. 2. The mountain peoples have greater variety of food than the Subanuns. 3. The mountain peoples have as great a store of food as the Subanuns, and are consequently as far removed from danger of starvation. 4. In weaving and pottery the mountain peoples are no farther advanced than the Subanuns, but in woodwork and metal work they have surpassed them. In metal work they have gained division of labor, since various operations in the process of making articles of metal are carried on by different workmen. 5. The number of products used by the mountain peoples for ostentation are at least as numerous as those of the Suba- nuns, and many, such as the carved bowls and tobacco pipes, are of local origin and design. 6. The Subanuns have but the beginnings of commerce; for their trade consists only of that with a higher race. The Igorots, Bontoks, and Ifugaos, on the contrary, have developed a system of exchange among themselves which is more impor- tant than the commerce carried on with outsiders. This ex- change results from a diversity of production in the different communities. 7. Finally, the mountain peoples have acquired a very defi- nite idea of the value of their products. They are not cheated, as are the more simple Subanuns. The life of the mountain peoples may be briefly described as one in which an excellent, though still primitive system of agriculture provides an abundance of food and a surplus against the exigencies of a poor crop, and allows permanent residence and the utilization of the labor of a few men in the manufacture of useful articles and luxuries. 20 • ECONOMIC CONDITIONS General Comparison i Bueclier, in his " Industrial Evolution," has aptly stated that human needs are capable of an infinite multiplication and sub- division ; they are never at rest ; they increase in degree and extent with the progress of civilization. Thus we have seen that the needs of the Negritos are little more than food, and of this barely enough to keep life in the body. After a people obtains a supply of food above its actual immediate needs, its wants become more diversified ; it begins to improve its methods of production, to increase the variety of its diet, to make better shelter and clothing, and to develop taste for art and for display. In short, its wealth increases not only in amount but in kind.^ 1 In the consideration of these three groups of peoples the subjects touched on have been the products they use for food, clothing, shelter, and amuse- ment, how these products are obtained and exchanged, and in what manner they are divided among the people ; that is, the discussion has been about those things which minister to the physical needs of man and help him to live. Anything which helps man to live is called wealth. 2 Certain forms of wealth which the Subanuns possess would not be con- sidered wealth by the Negritos. For instance, the Chinese jars, which are with the Subanuns the most prized of all possessions, would not be valued by the Negritos. In the same way the irrigation systems and the fertilizers employed by the Igorots would be useless to the Subanuns, who consequently would not consider them wealth. Likewise a plow or the services of a tailor would not be considered wealth by an Ifugao. Thus it can be seen that objects or services which may be classed as wealth by one group of individ- uals may not be considered wealth by another. We should observe another peculiarity concerning those things which help man to live. " Some things are said to be valuable, as in the case of a gold watch or diamond ring, because in exchange for them we can get a great quantity of other articles. Ashes are of little or no value because we cannot get anything in exchange for them. Now this word ' value ' is a very difficult one and is employed to mean different things. We may say that quinine is valuable for curing fevers, that iron is valuable for the blood, or that water is valuable for putting out fires. Here we do not mean valuable in exchange, for quinine would cure fevers just as well if it cost a penny an ounce instead of some ten shillings; Water, if we can get it at the right time, puts out a fire whether it costs much or little or nothing" ("Political Economy," by W. Stanley Jevons). It is clear, then, that by value we may mean value in exchange or value in use, or both, and a thing which may have little value in exchange may have great value in use. Thus the value of air is the utility PRIMITIVE AND CIVILIZED PEOPLES 21 Not only does man come to possess a greater amount and variety of wealth as he becomes more civilized, ^ but he is less and less dependent on nature, and more and more dependent on his fellow man. The lowest form of human being that can be imagined is one whose only activity is the procuring of food, and who wanders about alone, living on worms, slugs, roots, twigs, and such nourishment as he can obtam wfthout the assistance of any kind of implement. Such a human being is not known to exist. All men so far encountered live in groups, understand fire, and possess certain implements which assist them in obtaining their living. The search for the necessities of life and the desire to obtain them with the least effort have caused such groups to evolve systems by which these necessities (wealth) are produced, exchanged, distributed, and consumed. The more complicated the system, the greater the wealth, and the greater the surplus over the bare necessities of existence. Greater complication of the economic system with advance in civilization is well illustrated in the tribes under discussion. Of the most lowly of known human beings the Negritos are a good example; but even among these people we see the beginnings of a system. There is a division of labor between the sexes ; in general, the men do the hunting, and the women gather or grow the vegetable foods. There is also some idea of division of wealth among. them, as shown in the distribution of the carcass of an animal killed in the chase. of the air we breathe ; the value of water is the utility of the water we drink or use in washing or cooking ; but, although this utility is great, neither air nor water can be exchanged for other articles. Hence the definition of wealth previously given must, from an economic standpoint, be qualified to exclude those things which have no value in exchange. Wealth consists of those things which help man to live, and which have value in exchange. Economics is the study of wealth. 1 The term '' civilization " is complex. It is usually interpreted to include government, literature, art, and morals, as well as food, clothing, shelter, amusements, and the like. Within the scope of this book, however, the term refers only to the material or economic advance. 22 ECONOMIC CONDITIONS The Negritos are in the stage of primitive group economy} in which production is solely for the group's needs, and in which goods are consumed where they are produced. On the other hand, the Subanuns are on the verge of, and the Bon- tok Igorots and Ifugaos are just entering, the stage of primitive town economy^ the stage of direct exchange, where goods pass directly from the producer to the consumer. The Subanuns are much more independent of nature than are the Negritos, since they have a surplus supply of food. The mountain peoples are still more independent on account of their irriga- tion system and their use of fertilizers. But their system of producing wealth, and of exchanging and distributing it, is, as a result, more complicated. There is greater division of labor between the sexes ; artisans such as the blacksmith and the pipe maker have emerged to spend their entire time in producing one kind of article. Thus we see an advance from a system in which the indi- vidual obtains his own food to a system in which certain persons do not produce food, but are dependent on others for their sustenance. They transform raw material into finished products and exchange them for food, clothing, and other necessities. We see, also, an advance from a condition in which men wander from place to place to a condition in which they form towns. A more advanced stage is that in which each town produces certain articles. Such a division in the pro- duction of articles brings into existence the idea of exchange, first between individuals and then between localities (towns). This exchange calls for men to take the goods from the pro- ducer to the consumer. From these men arises the need of a standard commodity which is acceptable in exchange for products, and by which relative values of articles may be measured. This standard commodity is money. Among the mountain peoples we have seen that bundles of rice are most often used as money. As civilization spreads, we observe 1 The stages of economic development noted in this book are suggested by Buecher's chapter on '*The Rise of National Economy." PRIMITIVE AND CIVILIZED PEOPLES 23 changes in the distribution of wealth. Among the most prim- itive peoples there is little difference in the amount of wealth possessed by individuals. This condition results from the simplicity of the method by which wealth is obtained, and from the small amount of wealth which exists. Among the mountain peoples, however, there are men who possess a large share of the surplus productive wealth of the community, such as rice terraces, pigs, and carabaos. Men who have none of these must work for the owners, or starve, or revert to more primitive conditions of living. Hence, to a large degree, these workers are economically dependent on the possessors of productive wealth. The Filipinos Among the semicivilized of the Philippines the mountain peoples have made the greatest economic advance. From them we may pass to the Filipinos. The system by which the Filipinos' wealth is produced, exchanged, distributed, and used shows they have reached the stage of national economy^ the stage of wholesale produc- tion and of the circulation of goods, where products must ordinarily pass through many hands before they reach the consumer. This stage is not so easily comprehended as are those of primitive and semicivilized tribes. It is not grasped in an idea, nor explained in a few words. It is a stage of civi- lization in which the actions of men are governed by many economic laws, many ideas, and many customs not found among primitive peoples. SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text 1. Make a table of parallel columns for the Negritos, the Subanuns, and the mountain peoples, comparing them as to {a) food ; (&) clothing ; (c) shelter ; (d) savings and other forms of wealth; (e) implements; (/) methods of agriculture ; {g) manu- facture ; Qi) commercial and industrial organization. 24 ECONOMIC COKDITIONS 2. Would more-advanced peoples occupy by preference land which the Negritos now occupy ? 3. What does your answer sug- gest as to the power and influence of the Negritos ? 4. Do these people do anything to advance the welfare of the country in which they live ? 5. Suggest a work of economic value which they could perform. 6. Make a general plan for the economic development of the Negritos, pointing out difficulties and the methods of over- coming them. 7. Apply to the Subanuns the tests suggested in the questions on the Negritos. 8. Under what influences have the Subanuns made their progress ? 9. Would additional outside influence be of value in hastening their progress ? 10. If so, how should this in- fluence be applied ? 11. Make a list of some of the forces which re- tard the development of a backward people and suggest remedies. 12. Apply to the mountain peoples the tests suggested in the questions on the Subanuns. 13. Do all forces which retard the progress of a backward people apply to the mountain peoples ? 14. Would any of the features of your plan for the economic development of the Negritos be useless if applied to the mountain peoples ? Suggestions for Reports from References 1. Give in some detail the governmental plan for the advance- ment of these tribes. 2. What ofiicials are in charge ? 3. How can the private citizen give aid ? 4. Can you justify the taxation of the Filipinos for the benefit of these tribes ? 5. Do you consider that the government or any private citizen has any right to exert influence for the purpose of changing the customs and habits of the primitive peoples ? 6. Defend your answer. 7. Where, how, and why are kaingin made ? 8. Their effect on standing timber and the cogon area. 9. Control by the Bureau of Forestry. 10. Reforestation and habitual kaingin makers. Selection on the Theory of Economics to be applied TO THE Material in the Chapter 1. Human needs. Wealth (Bullock, pages 10-13). 2. Stages in the production of wealth (Bullock, pages 29-31). PART II. AGRICULTURE CHAPTER II EICE AS A FOOD CKOP^ Importance and Food Value In nearly all parts of the Philippines the chief food is rice and fish, or corn and fish. As a general thmg, the more remote a place is from the sea, the less fish is consumed ; so that in many inland localities the diet is almost entirely vege- table. In ordinary times of plenty the food of both the well- to-do and the poor varies little in either quantity or kind. In times of scarcity, however, the food of the poor usually decreases both in quality and in quantity, while that of the rich is not affected. From the point of view of food values, corn is a better- balanced ration than rice. The latter is deficient in fat, and contains less protein than any other cereal. Corn, on the other hand, is high in fat, and has a considerable percentage of protein. The amount of protein contained in the three chief food cereals is as follows : ^ rice, 8 per cent ; corn, 10 per cent ; wheat, 12.2 per cent. Rice is easily prepared, and is easily digested when properly cooked, but its deficiency in nutritive values must be made up by other foods (such as fish, beans, and meat) which contain proteids and fats. The consumption of rice alone, toward which there is a present tendency in the Philippines, results in malnutrition. It would seem, also, 1 For description and commerce, see "Commercial Geography, the Mate- rials of Commerce for the Philippines," by Miller, Bureau of Education, Manila, 1911 ; also Bulletin 22, Bureau of Agriculture, Manila, 1912. 2 Farmers' Bulletin 298, United States Department of Agriculture. 26 26 ECONOMIC CONDITIONS that the cause of beriberi ^ is the lack of phosphorus in the diet of poHshed rice, a condition which can be overcome by the substitution of unpolished rice (which contains from three to five times as much phosphorus), or by the more extensive use of fish and other foods containing phosphorus. Cultivation Rice is not only the chief food used in the Philippines as a whole, but is the principal crop of these Islands. An appre- ciable quantity of mountain or highland rice is grown, mostly in kaingin, in the less densely populated regions. This is sown broadcast, cultivated, and reaped as are other dry-land crops. The amount of rice raised by this system, however, is small m comparison with that produced by the lowland (or flooded-field) system, by which the greater part of the rice crop of the Philippines is grown. Along most eastern coasts, and on the northeastern coasts of some islands, the rainfall is continuous throughout the year, so that there can be no definite seasons for rice culture. The inhabitants of one town may be plantuig while those of another town, not more than a few kilometers away, are harvesting. The central and western regions of the Philippines, however, are subject to a dry season, during which rice cannot be cultivated without extensive provision for water storage and irrigation. The amount of water so stored, or of water which can be diverted from rivers during the dry season, is almost negligible. Since the chief rice districts are in regions affected by the dry season, it holds generally for the Philippines that but one crop of rice is raised annually. This is planted and cultivated during the rainy season (from June through November) and harvested at the beginning of the dry season (December or January). The rice lands in the Philippines are divided into small fields in which dikes serve to keep the water. When the soil 1 A prevalent Oriental disease characterized by an anaemic condition of the body. RICE AS A FOOD CKOP 27 has become softened, it is plowed and , harrowed. The plow used is a small one-handled affair of wood, sometimes shod with iron, which merely digs and does not leave much of a furrow. The harrow is usually made of bamboo, with iron or wooden pegs driven through and fastened. In many places NEWLY PLANTED LOWLAND RICE FIELDS is is customary, further, to reduce the soil to a slush by 'driv- ing carabaos over it or by working it up with the feet. The seed is sown thick in beds, which are usually near the house of the farmer. When the young plants are a foot high or more, the women pull them and transplant them into the fields. If the rains are sufficient to drown the weeds, the farmers may rest until harvest time ; but if the weather is so dry that the water does not stand in the fields, it is necessary to cut out the weeds. 28 ECONOMIC CONDITIONS Harvest, Sale, and Consumption One of the most expensive operations in the production of rice is the harvesting, which is done by hand. The heads are cut with short stalks, which are tied together hi bundles about the size of the fist. In those regions of the Philippines where there are many small holdings, the farmers are wont to make communal labor of planting and harvesting. In many districts where land is in large holdings, it is customary to harvest on shares for an amount varying from one tenth to one third of the crop, the usual amount being one fifth. Dur- ing the latter part of a bountiful harvest even half the crop may be given to reapers as an inducement to keep them at work. In certain places there is a tendency to substitute daily wages for this system, particularly when a poor harvest occurs and the price of rice is high. In other places the two systems are combined, as, for instance, in Nueva Ecija, where wages varying from pO.15 to PO.20 are paid, with the privi- lege of carrying away as much rice as can be put in a basket. Thus a family of three may work six days and get P2.70 in cash, and four or five cavans of rice valued at ?10 or more. As a substitute, daily wages of only PO.40 are paid.^ This system of harvesting on shares is decried by those who have made a study of the situation from the commercial point of view. In the first place, it results in an exorbitant cost of the production of rice. In the second place, a family working a month can obtain enough rice to support them for six months, during which they need do no labor. This is con- ducive to laziness and vice. In well-populated sections of the Philippines there is, during the harvest season, an exodus to rice regions, sometimes a considerable distance away. Often whole families leave their homes. On returning they usually bring with them their share of the crop. 1 From the economic report of Cenon S. Monasterial, made in 1912. Wages and prices have risen since then. Treading out the (Ji A Steam Thresher METHODS OF THRESHING RICE WlNK()WIX(i WITH TMK WiND A Winnowing Machine WINNOWING RICE 82 ECONOMIC CONDITIONS At a glance it would seem that this state of affairs might be changed by machinery, but thus far the mechanical har- vester has not been successful in the Philippines. The crop is always cut by hand, and m nearly all districts the rice is threshed by pounding or trampuig it, although in the large rice-growing regions steam threshers are coming into use. These machines are generally owned by companies which /charge one tenth of the amount threshed. The companies are usually composed of local landowners, who thus divide the initial cost of the threshers among themselves, and by this cooperation gain the use of machinery which no one of them could afford to purchase by himself. The removal of the hull and bran is the final step in the preparation of rice for cooking. If rice is to be used locally, this process is nearly always done by hand, in a wooden mortar and with a wooden pestle, or in a crude rice mill made of mud and bamboo. In exporting regions, such as the Central Plain of Luzon, rice mills have been introduced in large numbers, the product being sent away in the form of polished rice. Except in large cities it is customary for the Filipinos to store rice in the husk, since it is supposed to keep better in this way. It is hulled as needed. Where mills exist, however, householders often take their rice to the factory one I sack at a time. The charges for milling rice are usually from twenty-live to forty centavos for a cavan of palay.^ The mill owners seldom do milling on shares. The larger mills buy palay just after the harvest season, but do not mill it until private milling is at an end. Thus the machinery is kept going the whole year, and a good profit is made on the rise in the value of the palay. In certain districts of the Islands, from northern Luzon to Mindanao, a peculiar phenomenon is connected with the sale of rice by owners of small amounts of land. Immediately after the harvest the price of rice is low, but with almost * From data at the Bureau of Agriculture. EICE AS A FOOD CROP 33 Rice Mills [Source : Bureau of Agriculture] NuMBEii OF Rice Mills Province 1 1 3 1 a .2 a 1 o a Is S 'S 1 "3 1 Total Maximum Daily Capacity Albay Antique .... Bataan Batangas .... Bohol Bulacan .... Capiz Cavite Cotabato ... Ilocos Norte . . . Iloilo ..... Laguna Lanao Leyte Mindoro .... Negros Occidental Nueva Ecija . . . Pangasinan . . . Sorsogon .... Tarlac ..... Tayabas .... Zambales .... 5 22 40 4 14 1 1 3 22 4 7 5 6 3 1 25 1 20 3 1 5 2 1 8 3 1 1 23 22 6 2 14 12 2 12 11 3 4 5 1 2 2 1 2 5 2 2 1 22 1 5 51 1 40 27 16 1 1 25 72 3 6 2 9 9 5 4 7 32 4 Cavans 947 2 820 5,531 16 9,066 990 3,059 150 120 1,794 5,330 108 55 160 450 3,880 1,525 56 1,090 796 244 Total .... 137 70 55 40 14 12 3 2 10 343 36,189 Note. The total daily capacity shown above does not represent the actual output of the mills, but their potential maximum capacity. The mills of Manila are not included. (The Statistical Bulletin No. 1, Bureau of Commerce and Industry.) This table indicates the provinces which are important in the production of rice for commerce. The table of Rice Production and Consumption on page 59 indicates, however, that several of the provinces which have facili- ties for milling large quantities of palay do not export rice ; in such provinces as Batangas and Laguna the product of the mills is consumed locally. 34 ECONOMIC CONDITIONS inconceivable shortsightedness the small farmers sell practi- cally their whole crop to the merchants who control the trade. Soon the small amount of rice which they have retamed is exhausted, and they begin to buy back at a constantly advanc- ing price what they have sold, so that before the next harvest they are obliged to pay from one hundred to two hundred per cent profit to the merchants. These small farmers often squander their money as soon as they have obtained it; this causes a considerable amount of misery. Sometimes they are so improvident, or so hard pressed, that they sell their crop in advance, at about half its nominal value. EicE Imports The amount of rice raised in the Philippines has been in- sufficient to supply local consumption by about twenty per cent. It was estimated by the Bureau of Agriculture that the local production in 1910 was about 530,000 metric tons of cleaned rice. In the same year 185,000 metric tons of rice were imported,^ the value being about twelve per cent of the total imports. In the middle of the nineteenth century the Philippines were already importing a little rice. In the year 1877 about 23,000 metric tons were imported, being 5.78 per cent of the total value of imports. Since then there has been a fluc- tuating but increased import. In the year 1903 about 334,000 metric tons of rice, valued at more than P 25,000,000, and representing about thirty-seven per cent of the total imports, were brought into .the Philippines. This is the largest annual import of rice in the history of the Islands. The lowest annual import in recent times was in 1913, when about 87,000 tons were brought in, valued at about p6,300,000. This value * The year 1910 may be taken as a usual one. If we allow an average consumption of one and a half chupas of rice a day for 6,500,000 inhabitants (that is, the population of the Philippines less the population of corn regions), we obtain a total yearly consumption of 715,000 metric tons, a verification of the accuracy of the figures above. EICE AS A FOOD CROP 36 represented about six per cent of the total value of all the importations into the Islands. The history of rice importations into the Philippines and of the price of rice is graphically shown in Chart I.^ In Figure I the light angular line shows the actual imports by years. The heavy line is a smoothed one, and shows the tendency of the rice trade over a period of years.^ The lines of Figure II represent actual prices and the tend- ency of prices respectively. From the smoothed line (heavy) it will be noted that the price of rice fell rapidly in the period 1877-1895 ; that it jumped considerably in 1899 ; and that since then it has been slightly on the increase. The high prices in 1912 and 1918 were the result of a general shortage in rice. From the smoothed line in Figure I it will be seen that imports of rice gradually increased during the later years of Spanish occupation, but were dropping sharply at the end of the nineteenth century. Perhaps they would have ceased, had not a new commercial policy been established, the policy of encouraging foreign trade. The high level of rice imports after 1900 (represented by the heavy line) was brought about by this change and by disturbances of one kind or another. Let us now study the particulars of our rice trade. Turnmg to the fine line, which shows actual imports, we see that rice imports have fluctuated greatly, there being six periods of extraordinary importation between the years 1877 and 1918. Either of two conditions may have caused these extraordinary importations, namely, the price of rice in Saigon, or shortage in the local crop. If we compare the line of actual imports with that of actual price, we shall see that they bear no con- stant relation. Imports of rice do not tend to increase as price decreases, nor vice versa. It is probable that the world price / 1 No reliable customs statistics are available for the years 1896-1898 inclusive. 2 The position of the smoothed line is obtained by averaging the figures of rice imports by fives. The averages so obtained are noted by crosses. 36 ECONOMIC CONDITIONS / of rice is not much affected by the unportations of rice into the Phihppines; it is also true that the Islands do not im- port larger quantities of rice when the price in Saigon is low. II 1880 1882 1884 1886 1888 1890 1892 1894 1896 1898 1900 1902 1904 1906 1908 1910 1912 1914 1916 1918 aw Rinderpest-1896- im Drojjghi 1903 i A 1 1 RICE IMPORTS OF JHE PfflLIPPINE ISLANDS .Absolute Averages by 5*s X Drought 1' 11-191S iWO 280 ' ' 260 -! / "Drougnt Typhoon 1913-P14 i \ K 180 1 \ / J \ \ / ./ \i IGO 7 J 1 1 X V 120 F,n( -of :oba tfon onol V / 1 7 lolera 18f 2-3 -Droug Kinder It 18 pest Cho / Fi( I. I. / 1887 / 80 60 40 20 12 Is §4 Drough ;187 '/ 1 =^ A i > fV , '\ / 1 V \ V 1 \ / \ r \ Ha If year onl 7 Fi ..r t p?^ \^ A ^ _l ' ^ y - jta ^^ *.*-H A, ^ / r V *' 'X ^\ 1 -^ -- /\ >^ ^ ^ / \ / / f \ \ \ / "- V \ \ CHART II, A complete or partial failure of the crop occurs in many locali- ties every year, and in exceptional seasons (as in 1911-1912) throughout the Philippines ; (5) preparation and cultiva- tion of the soil are usually poorly done, this being due, for the most part, to lack of suitable agricultural implements; (f?) pests, such as worms and field rats, do no small amount of damage to the rice crop, and in exceptional years locusts destroy much of the growing and standing crop ; (tZ) much of the possible crop of rice is lost because the seed is not selected. 4. Another important reason for the diminished cultivation of rice in the Philippines is the production of export crops, such RICE AS A FOOD CROP 39 as copra, abaca, tobacco, and sugar. These crops do not require \ so much work, and it is of a more agreeable character. The high price received for such exports, and the use of less and more easily obtained labor in their production, have encouraged land- owners to devote their holdings to these products rather than to the production of food. Indeed, it would seem that the net returns from raising export crops and importing food are fre- quently greater than the returns from producing the food itself, not only to the landlords, but to the laborers and to the Islands. Chart II, A, shows the relative increase of rice imports into the Philippines and the total exports from the Philippines since 1 1 i 1 1 1 1 1 1 1 1 1 i 1 1 PHILIPPINE ISLANDS Comparative increase in Rice imports _ / / r \ y / / / i^ X K / / 1 / / A- <7^ V \ / / ^J / 1^' / CHART II, B 1877.^ It will be seen that until 1895 rice imports, although they fluctuated greatly, increased in about the same proportion as the total exports. In 1899, however, rice imports increased in greater proportion than did the total exports, and up to 1913 kept this relative position (which is probably due to the scarcity of animals and the noncultivation of rice fields). How- ever, if we compare the years 1899-1912 (by bringing them together at 1899 in Chart II, B}, we shall see that in this period also rice imports and the total exports tended to increase in the same proportion, the upward movement during the first 1 This chart is drawn on a logarithmic scale, which shows no definite amounts, but (practically) percentages of increase and decrease. 40 ECONOMIC CONDITIONS few years being caused by famine, pest, and drought. Hence, from customs statistics it is learned that the general increase in imports of rice was due to a proportional increase in exports, and that the extraordinary high level in the importations of rice in the period 1899-1912, over the period 1877-1895, resulted from the scarcity of animals for cultivating rice fields. With the year 1913 a change appeared. General exports con- tinued to increase in volume, but a lower level in the importa- tions of rice seemed to have been reached. Evidently other factors than export crops influenced the situation in rice after 1913. Increase in Domestic Production The only economic consideration which would warrant the importation of rice by the Philippines is found under the fourth heading (page 38), the raising of such crops as furnish products which can be exported and exchanged for more rice than could be grown locally. But such a procedure, when carried to the extreme, results in a dangerous situation, since it makes the Philippines dependent on foreign supplies for food. It is an axiom of good government that a country should produce as much of its own food as possible, and keep on hand a supply as a protection against short crops or unfavorable conditions in the world at large. This subject cannot be treated here at length, since it properly comes under a more general heading (see Chapter XI), but it will be readily seen that if the crop in southeastern Asia (the rice-exporting region of the world) should be seriously curtailed by unfavorable climatic condi- tions, political upheaval, or the hke, the consequences would be disastrous to the Philippines. Such a condition was approached in the season of 1911-1912, when there was a partial failure of the rice crop. During the World War the demands in Europe for Saigon rice, and the lack of transportation to the Philip- pines, produced a situation fraught with danger to the Islands. A consideration of the methods by which production of rice RICE AS A FOOD CKOP 41 in the Philippines may be increased is therefore extremely important. Let us proceed to examine these methods: 1. An increase in the number of work animals (carabaos and cattle) will bring into cultivation much of the rice land now lying idle. In several districts of the Philippines there have been large importations of draft animals from Asia, and a correspondingly increased area devoted to rice production ; but on account of rinderpest and other diseases existing in Asia this importation is extremely dangerous. Several out- breaks of rinderpest and other diseases have been directly traced to infection introduced in this manner. Hence the importation of foreign cattle and carabaos has been carefully guarded, and the government has undertaken a campaign of quarantine and close supervision of the draft animals coming into the Philippines, with the hope that by this means rinder- pest will be held in control and no further infection from, out- side will be allowed to complicate the domestic situation. The average number of carabaos imported annually is about 1500, and the average number of cattle about 10,000. Most of the latter are killed for meat. From 1903 to 1917 the number of carabaos in the Islands had increased from 640,000 to more than 1,200,000, and the number of cattle from 130,000 to more than 500,000. This indicates that the attempt to guard the natural increase of work animals and of the imported animals has been successful. An indirect accession to the work animals available for rice fields is the result of the expansion of motor transportation, and the introduction of small farm tractors on dry cultures. Heavy machinery cannot be used on the soft rice paddies, but the use of tractors on sugar and other dry lands liberates a considerable number of animals for the cultivation of rice. The substitution of the motor truck for the carabao and bull cart is also a help. 2. A further increase in the yield of rice would be possible i if the profit could be increased by a reduction in the cost of the production. ^ 42 ECONOMIC CONDITIONS The fall in rice imports in 1'J13 was chiefly due to the large domestic crop of 1912-1913. This increase in the domes- tic crop resulted from the high prices of that period, and is a measure of the effect of good profits. The large areas planted with rice in 1917 and 1918 were the results of high prices for rice during war times. Indeed, from Chart III it is evident that there is a close connection between the price of rice and the production. Naturally, when the price is high and profits are good, a larger area is planted and more care is taken than when the price is normal and there is little margin of profit. But cannot greater profits be made from rice culture with- out abnormally increasing the price of rice ? Cannot the cost of production be lowered ? a. The largest reduction can probably be made in the har- vesting. The share system, by which the harvesters receive as much as half the crop, and the resultant ill effect on the workers, has been explained. By the substitution of a wage system these evil effects would be done away with, and greater profit would accrue to the grower. It is probable that further reduction in the cost of harvesting could.be made by the use of improved implements. It is possible that better hand imple- ments than the present short knives can be devised. In the United States the cradle is used to advantage. This cuts quickly, and leaves the grain in a condition to cure rapidly and evenly, and to be easily handled; but it takes a con- siderable amount of strength to use the cradle.^ Harvesters intended for the temperate regions have not been successful in the Philippines. For instance, some machines imported from America were found impracticable because they were geared to work at the rate of two and a fourth miles an hour (which is the rate at which horses can pull the machine), and would not operate when going at a rate of one and a fourth miles an hour (which is the speed of a carabao). Com- bined harvesters would also be unsatisfactory, on account of 1 The Louisiana Planter (August 6, 1910), p. 87. RICE AS A FOOD CROP 43 the smallness of the field and the tendency of heavy machines to become stuck in the mud. If machinery is to be used in the PhiUppines, the kind must be determined by experience in the local needs. h. If small producers would discontinue their practice of selling nearly all their rice at the harvest, only to buy it back later at a much higher price, much loss would be avoided. Photo by Bureau of Agriculture HARVESTING RICE BY HAND IN THE PHILIPPINES 3. Even with the present number of animals and the pres- ent area of cultivated land, the amount of rice produced in the Philippines can be greatly increased by better methods of cultivation. a. For the inefficient plow and harrow now used there can be substituted plows, harrows, and other implements which are much more effective in digging into the soil, turning it over, and pulverizing it. It must not be thought, however, that the agricultural machinery used in other countries can be used equally well in the Philippines. Such machinery is an outgrowth of need and experience. Nearly all of it originated in America, where the problem has been to culti- vate large fields with little labor, and where horses are used. The problem in the Philippines is to obtain machinery suitable for land soaked with water, machinery which can be drawn by 44 ECONOMIC CONDITIONS carabaos or cattle, and which will be effective in small fields where the furrows are short and the animals have to turn many times. ^ Plows adapted to American fields cannot be used in the Philippines because they do not meet these con- ditions. Drills for planting the seed have not been successful because they are not intended to work in soil so poorly plowed as the Philippine fields. On the other hand, plows which have been especially designed for Philippine use have succeeded in a number of districts. The matter of agricultural implements can therefore best be met in the Philippmes either by adapt- ing the implements and machinery of other countries to the local requirements, or by devising something new. The oppor- tunity is large. h. Another important consideration is that of selecting seed. There are many hundred varieties of rice in the Philippines, most of which are of the lowland. Some of these yield twice as much as others. In most communities farmers have come to recognize the kinds which give best results in their partic- ular soil, but in many localities there is still but little atten- tion given to the selection of the variety to be planted. It has been estimated by the Bureau of Agriculture that out of 1242 well-known varieties but fifty are capable of a yield and qual- ity commercially profitable. While there is often selection in the variety of rice raised, in but few instances is there any selection of the seed. Even if seed be put aside for the next planting, there is no attempt to pick out the best heads. Farmers usually take what palay is left over in their homes, 1 The difficulty of the short furrow results from the building of dikes with straight sides. This may possibly be overcome by making rounded dikes, over which the machine can be dragged. Plows, harrows, and drills can be pulled by carabaos or cattle ; binders and such machinery, which only work satis- factorily at a good rate of speed, may be propelled by gasoline. All heavy machinery, however, can only be used on firm ground. Most rice soils in the Philippines are such that during the planting or harvesting they are too soft to sustain machinery. The improved plow is thus far the only agricultural implement which has been successfully adapted to small farming in the Philippines. The single-handle steel-beam breaking plow is a success. Cradling a Field of Wheat Courtesy of Keller and Bishop Harvesters in Manitoba, Canada From Bri*2:ham's " Commercial Geography Wheat bundled by Harvesting Machines and piled in Shocks From Brigham's "Commercial Geography" METHODS OF HARVESTING 46 ECONOMIC CONDITIONS or they buy seed of any character. By the cultivation of the best varieties, and the careful selection of seed from these, the yield of rice in the Philippines could be increased several fold. c. Perhaps the most important factor m increasing the yield of rice is efficient irrigation. Without consideration of the addi- tional crops that could be raised by irrigation, which would at least double the total yield from the land under cultiva- tion, the benefit to be derived from a constant supply of water demands consideration. The prime need of rice during its growth is water. Conditions in the Philippines are such that at the present time commercial (artificial) manures cannot be profitably applied to rice lands ; but a constant supply of water assures a good crop on almost any type of soil which has an underlying impervious layer of clay.^ Rice lands are usually dependent on the rains, and much rice is lost here and there throughout the Archipelago in all years ; during seasons of widespread drought, such as occurred in 1911-1912, there is a general failure of the crop. These losses could be stopped by storage and irrigation. The methods by which the water may be obtained and distributed on the land will be taken up under a more general heading, but the question of organ- ization for the construction of irrigation systems may receive a word of attention here. In certain regions local capitalists have built irrigation systems on a small scale. In a few dis- tricts such systems have been constructed by cooperation ; that is, the fields which receive water belong to those who have built the system. Here and there are found rather extensive irrigation works, built years ago by the owners of large estates, particularly on the friar lands. Their efficiency has been in many cases reduced or destroyed through neglect or damage. But neither capitalistic, nor communal, nor private enterprise is able to build the irrigation works which certain regions need, and which topography warrants. Such projects must be undertaken by the government, since they require careful study for a long period of years, and the expenditure of ^ Bulletin 22^ Bureau of Agriculture, Manila. RICE AS A FOOD CKOP 47 large sums of money for construction and maintenance. It is estimated that there are in the Philippines 1,365,000 hec- tares of rice land under cultivation. Of these about 50,000 hectares are irrigated by old systems. Preliminary surveys have proved the existence of 485,000 hectares of land capable of irrigation.^ Much of it is rice land. How does irrigation increase the yield of rice ? Its effect in overcoming drought and in allowing the planting of more than one crop annually is self-evident. A less evident effect is that from the control of water. For instance, rice should be transplanted just before the nodes form ; never afterwards, because the yield is diminished. Philippine agriculturists do not thoroughly understand this, and usually transplant after the nodes are formed. However, they are often forced to delay transplanting because the rains do not fall in time to prepare the soil. If an irrigation system exists, the water can be turned on the fields when desired, and thus the time of plant- ing can be controlled. This control is also important in the choking of weeds and the withdrawal of water when the grain is ripening. The average annual production of rice throughout the Phil- ippines is probably less than twenty-five cavans a hectare. The average production of rice in exceptionally favorable years, when sufficient rain falls at the required time, is from twenty-five to forty cavans a hectare. Under the present sys- tem of tillage, planting, and seed selection this difference may be said to result from irrigation.^ Irrigated lands properly cultivated and planted with selected seed produce from fifty/ to seventy-five cavans a hectare. It may be stated, therefore, that the cultivated rice lands in the Philippines should, with irrigation, better cultivation, and seed selection, yield from three to four times the quantity of rice now produced. With an increase in the number of work animals and with a lower 1 Philippine Agricultural Review, Vol. II, No. 11. 2 These estimates are given after a careful review of all data available, including some eight hundred estimates from as many municipalities. 48 ECONOMIC CONDITIONS cost of production many of the rice fields which at present are lying idle would be brought under cultivation. With better means of production at least four times the present yield could be obtained. Hence it is possible for the existing fields to yield more than a sufficient quantity of rice for the needs of the Islands. 4. The changes on which this increased production depends can be brought about but slowly, and for quick returns another method of meeting the situation has presented itself. This is RICE HARVEST IN LOUISIANA From Brigham's " Commercial Geography " to bring large tracts of virgin land into extensive cultivation. Such an undertaking can be carried out only by the govern- ment or by large corporations. Throughout the Orient rice is raised in small diked fields, just as in the Philippines, except that in many localities hoes, spades, and mattocks are used instead of the plow, and that in most countries careful culti- vation of the soil and selection of seed are carried on, making the yield by the hectare much larger. In the United States, however, an entirely different method is followed. Rice was introduced into the American colonies in 1790, by accident. It gradually became the product of small fields along the southeastern seacoast. Modern machin- ery is now used in preparing the soil, and drills are used in RICE AS A FOOD CROP 49 planting. The crop is cut with sickles, but is threshed and cleaned by machines. In 1884 farmers were settling the great southern prairie of Louisiana and Texas along the Gulf of Mexico. They found that rice grew well, and they began immediately to adapt large agricultural machinery, such as is used in growing wheat. Difficulties were met and overcome. On thie whole, the exten- sive operations have been most successful, and larger areas are being given to rice every year. Large fields and more or less extensive irrigation systems are used, the water being pumped from rivers or wells. Heavy modern machinery is used in preparing the soil and in planting. From the time the rice is a few inches high until the harvest, the field is kept under water. Just before the rice is mature, the water is drawn off, so that by the time the crop is ready for harvest the ground is hard enough to bear the weight of the self-binders, which automatically cut and bundle the grain. Large threshers and mills prepare the rice for market. The product thus obtained is of high quality.^ The northern part of the Cagayan Valley is a large plain, with soil well suited to rice. In the northeastern part of the Central Plain of Luzon there are large tracts of virgin rice land. In such regions as the Gandara Valley of Samar, and the Agusan and Cotabato valleys of Mindanao, there are thousands of hectares of new rice land. It would seem that with modern methods all these were capable of producing vast quantities of rice at a low cost. However, the question of available labor and of conditions of weather and soil must be considered. The problem of bringing laborers into these regions, of founding settlements, and of importing food and other necessities is difficult. In the "bonanza" rice region of the United States planting is done at the beginning of the rainy season, and the harvest takes place during the dry season. 1 The World To-day (January, 1910), p. 09 ; Farmers' Bulletin 417, United States Department of Agriculture. The prices noted are less than the current prices for rice in the Philippines. 50 ECONOMIC CONDITIONS Frost and snow prevent the growth of weeds until the fields are again ready for planting. That is, the following conditions prevail : (1) machinery can be used on the land to prepare it for planting ; (2) a variety of rice is planted which matures during the ensuing dry season ; (8) irrigation is practiced, which insures the control of water on the fields during the growing season, and the withdrawal of water when the grain is ripening ; (4) this control of water and the absence of un- seasonable rains insure ground f}rm enough to support the machinery used in reaping ; (5) frost and snow then prevent the growth of weeds until the next planting season. These conditions are not applicable to the Philippines except in the western parts of the Islands, where a distinct dry season prevails. The eastern parts have no dry season. The central parts have a short but uncertain dry season.^ In the Central Plain of Luzon a definite dry season exists, but the varieties of rice which are planted mature in less time than the duration of the rainy season ; hence it would be necessary to plant early on dry soil with large machinery and reap by hand on soggy land, or to plant by hand within the rainy season and reap by heavy machinery during the dry season. Therefore it is not probable that large cultivation with machinery will succeed in the Philippines except on the limited soils which quickly become compact after a hard rain. However, it may be possible to develop or find a variety of rice which will mature in a longer period of time than those varieties now ordinarily planted. If so, the plan would be feasible. But losses would have to be anticipated, since rains may occur during the dry season ; these would lodge the grain and soften the ground, so that machinery could not be used for reaping. It might be possible, also, to develop or find a quickly maturing variety of rice which could- be planted at the beginning of the dry season and reaped before the end of the season. In this case, however, unseasonable rains might 1 See the discussion of Philippine climate in Miller and Polley's " Inter- mediate Geography." RICE AS A FOOD CROP 61 again interfere ; furthermore, plans would have to be perfected for cultivating the fields during the rainy season, to prevent the growth of heavy weeds, which would be expensive to remove. Irrigation would, of course, be necessary. The feasibility of extensive wet cultivation in the Philip- pines is therefore very doubtful. A more immediate and feasible way of increasing cultivated rice areas is by the settlement of virgin rice lands with colo- nists from the densely populated regions of the Islands. The provisions of the homestead law, the building of roads and railroads, and the improvement of water transportation, have opened up large areas of new land suitable for rice. The settlement of several rice regions, such as those of Nueva Ecija by Ilocanos, has been accomplished independently of government aid, and has brought several thousand hectares of land into cultivation. The government has undertaken the establishment of rice colonies also, by furnishing not only transportation to the new lands, but carabaos, implements, and funds. The colonists repay these advances as soon as their farms are on a paying basis. The six rice colonies of Cotabato were recruited from Cebu. They brought a thou- sand hectares of land into cultivation and were on a paying basis within two years after their formation. The success of these colonies augurs well for the development of the plan. During the war there was great development in the pi'O- duction of tractors from the point of view of size, price, and adaptability. The tractor of to-day is run by gasoline or kerosene ; by comparison with former types it is cheap, as regards original cost, maintenance, and running expenses. The development of these tractors was due to the lack of labor and of farm animals, and to the great demand for food products. Although these comparatively light machines are too heavy to use on flooded fields, they may possibly be of value in the cultivation of upland fields and the production of upland rice. Much of the failure in the production of upland rice is due to 52 ECONOMIC CONDITIONS the poor preparation of the ground ; lack of adequate culti- vation before planting permits the weeds to spring up and choke out the rice. The tractor and the modern plow turn the soil much more deeply than can be done with the carabao and native plow. For the three years previous to 1919 abun- dant harvests of upland rice were produced on certain limited areas in the vichiity of Munoz, Nueva Ecija, by the use of tractors with modern plows. Commercial concerns are already interesting themselves in this new phase of rice cultivation. If the results are successful, this adaptation of the extensive method of rice cultivation may bring large areas of uncultivated land into production, and solve the rice problems in the Philippines. The practical results are, however, still problematical. The Rice Situation in 1919 Has anything been accomplished in the past nine years toward improving the rice situation in the Philippines ? The experiences of 1919 indicate progress. The World War destroyed much food; there was a lack of food production in Europe ; the armies absorbed labor power ; the destruction of agricultural machinery and of ani- mals was appalling ; there was much diversion of labor from agricultural to war industries ; Europe called on Asia for food. Meanwhile the people of the Orient were demanding more food for themselves; the war conditions in Europe brought great prosperity to Japan, the Philippines, and other coun- tries, and gave the people greater purchasing power. At the same time a poor crop occurred in southwestern Asia. A world shortage of rice existed. In Japan serious rice riots occurred, because food was expensive and difficult to secure. Famines occurred in India and China. This condition became evident in the statistics of rice im- portation into the Philippines. For the first six months of RICE AS A FOOD CROP 63 1918 a normal importation of 77,642,000 kilos was recorded; for the first six months in 1919 the importation was only 42,634,000 kilos ; in July of 1918 there were 26,000,000 kilos imported, and in July of 1919 only 4,000,000 kilos. At the same time prices increased from about nine to sixteen centavos a kilo ; since the price of imported rice determines the price of the domestic crop, the cost of rice to the people in the Philippines doubled. As rice increased in price, speculators hoarded it, expecting I to realize tremendous profits. Moreover, a general poverty of \ transportation facilities left large quantities of rice in the gran- ary regions, while the export sections of the Islands lacked sufficient for daily food. The cost of rice rose to exorbitant / figures, and the people were unable to buy. At this point the government took the matter in hand | and fixed a price of Pl5 a sack. This, however, was too low, ' as became evident when the merchants refused to sell and withdrew their stock from the market. Then the government fixed a price of P16.25 for first-class rice, P15.75 for second- class rice, and Pl4 for third-class rice. These regulations proved only partly satisfactory ; for many retailers and some wholesalers were forced out of business. The government, therefore, began purchasing rice and sending it out to the provinces in which shortages existed. Typhoons and floods happened to occur in August and in- terfered with the moving of rice, especially from the Central Plain of Luzon, to such an extent that in localities like Sorsogon, Samar, Cebu, and Manila, which are dependent on imported rice, conditions of famine prevailed. The public jumped to the conclusion that Island-wide shortage of rice existed. This was a natural conclusion if drawn from the statistics of imports alone. The government, however, after investigating, announced that there was enough rice in the Philippines to last until the next harvest, and purchased only 3,000,000 kilos of the 10,000,000 made 64 ECONOMIC CONDITIONS available in Saigon through the United States government. Do available figures indicate that the government was right ? These figures have been plotted in Chart III. Of all the factors which have influenced the rice situation since 1910, it will be noted, only imports of rice into the Philippines have remained stationary, with a tendency to de- crease, while rice area, yield per hectare, total production, and consumption per capita have been increasing. These fig- ures, even if they are not gone into carefully, indicate a healthy condition of affairs. A more careful study indicates that the importation of rice in 1918 was due to the prosperity of the Islands. The pro- duction of rice in the Philippines was such in 1918 that the domestic crop would have been sufficient if the old standards had been maintained. The increment in the domestic rice crop would have been more than sufficient to feed the in- creased population of the Islands if the consumption per capita had been the same as in previous years. The average consumption per capita for the nine years 1910-1918 was about 85 kilos ; in 1918 it was about 112 kilos, an advance of 27 kilos. In other words, in 1918 the ten mil- lion people of the Philippines consumed an extra 270,000,000 kilos of rice as the result of prosperity and a betterment in the standard of living. About 160,000,000 kilos were imported, and 110,000,000 kilos were produced in the Islands. If the average consumption per capita for the seven years 1910-1916, 79.5 kilos, is selected for a basis, an even more favorable condition is indicated. These figures show that the production of rice had increased in much greater proportion than population. Imports of rice continued only because general prosperity had increased in the Philippines, resulting in increased purchasing power of the people. The people were consuming more rice per capita.^ 1 This same phenomenon was noted in Japan, where the increased income of the people during the war was to a considerable extent expended in buying more rice to eat. KICE AS A FOOD CBOP 66 People have a right to satisfy their hunger, and every country should build up a surplus stock of food against a failure of crops. The figures noted in Chart III should not be interpreted as meaning that the Islands are now economi- cally independent, so far as their basic food is concerned. Moreover, even with the very favorable conditions of 1918, the margin of safety was too small. If in 1918 the same unfavorable conditions of weather had prevailed as in 1912, a disaster could not have been averted, for it would not have been possible to secure sufficient rice from French Indo- China, Siam, or Burma to last until the next crop matured. The figures do indicate a most satisfactory development in the domestic rice industry, a development which shows that the Islands are able to produce their own food and to maintain an increased production of export crops. The large crop of 1918 was the result of the increased area given to rice and the large yield per hectare. The average area for the pre- vious eight years had been 1,024,000 hectares ; in 1918 it was 1,368,000 hectares. If profits remain attractive and animal diseases are held within control, this area will doubtless be increased. The yield per hectare of 732 kilos in 1918 was about 200 kilos greater than the average of the eight pre- vious years. This yield was largely due to favorable condi- tions, but there was undoubtedly some permanent increase in yield per hectare by reason of better methods of cultivation. The old problems of increasing the area and yield still remain, but it is possible that the Philippines may become independent of other countries for the basic food; if not entirely independent, at least for the proper amount of rice required to feed the population. The problem of distributing the surplus domestic crop must also receive attention. The table of production and consumption by provinces indicates that the surplus stock is nearly all in the Central Plain of Luzon. The problem is to move this and distribute it to the provinces where annual shortages occur. An improvement in railroads would be of assistance. The establishment of 56 ECONOMIC CONDITIONS warehouses, especially if under government control, would do a great deal to stabilize the industry. Farmers could then receive a fair price for their crops immediately after harvest ; hoarding and speculating would be prevented; and there would be a supply of rice for emergencies. PHILIPPINE RICE CONSUMPTrOPT Produced Tin ported 1910 1911 1912 1913 1914 1915 1916 1917 1918 CHART III. PHILIPPINE RICE CONSUMPTION The Rice Industry of the Future Chart III indicates that the five factors in the increased production of rice have received attention, but it is yet too soon to forecast whether rice imports into the Islands will undergo a general decline or a general increase. The general level of rice importations will depend largely on (1) the RICE AS A FOOD CROP 57 increase or decrease of the volume of Philippine exports ; (2) the availability of work animals ; (3) the extension of systems of irrigation ; (4) improvements in methods of cultivating and reaping ; (5) the standard of living and the purchasing power of the Filipinos ; (6) the increase in population ; (7) the facil- ities for transportation ; (8) the general world conditions in- fluencing the production and consumption of food stuffs^ and consequently the supply and the price of rice. In any year the climatic conditions during the rice season, the general conditions for health, and factors influencing the domestic and Saigon rice market, will determine the amount of the Philip- pine harvest and import. The price will be determined by the price of rice in Saigon, which is in turn fixed by the size of the crop there and by the world's demand for rice. SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text 1. With the present agricultural methods and conditions in^ the Philippines, is the rice import beneficial or not ? 2. Do you be- lieve that the imports of rice into the Philippines will increase or diminish ? Why ? 3. What percentage of the rice used in the Philippines is raised here ? 4. What percentage is imported ? 5. Why is it that the price of rice in Saigon fixes the price of rice grown in the Philippines ? 6. It was thought that the remission of the duty on rice in 1918 would effect a general reduction of from ten to fifteen per cent in the prices. Why ? 7. To make the Philippines self-sufficing how much must the normal rice crop be increased ? 8. Explain how it might be increased to this point on the present area normally given to rice. 9. Explain some abuses and give instances of lack of system in producing and marketing rice in the Philippines. 10. If the Philippines were blockaded, or shipments of rice were cut off, what steps would you propose for the immediate supply of food for the Islands ? 11. If the supply of imported rice were gradually diminishing, what steps would you take to have the domestic supply permanently increased to meet the domestic demands ? 68 ECONOMIC CONDITIONS 12. Explain the value of different kinds of rice on nonirrigated lands with respect to the period required to reach maturity, and the normal seasons of planting and harvesting ; on irrigated lands with respect to the production of more than one crop a year. 13. A comparison of the intensive cultivation of rice in the Philippines and of its extensive culture in the United States. 14. Can agricultural machinery be used in cultivating rice in the Philippines ? 15. Prepare a chart showing in terms of value what percentage the rice imports are of the total imports since 1899. 16. Smooth the curves by averaging the percentages by fives. 17. Inter- pret this chart, taking into consideration the fact that Philip- pine imports and exports have increased in about the same proportion. 18. What are the three great problems connected with the Philippine rice situation ? 19. What are the five most important factors with respect to increasing the production of rice ? 20. Should there be a high duty on rice imported into the Philippines ? Explain your answer. 21. What is the present duty? 22. What is the effect of the increased population on the rice question ? of the increased prosperity and purchasing power of the people ? 23. From the table on rice mills name the provinces where rice is raised commercially, and check your deductions from the table on rice production and consumption by provinces. 24. Explain how a better system of transportation will affect the rice problem in the Philippines. 25. In normal years a considerable amount of rice is fed to live stock, especially horses and chickens ; does this consumption of rice affect to any great degree the figures given in the text ? 26. The following item of news is taken from a Manila paper of August, 1919 : In the province of Sorsogon a man has been killed for half a cavan of rice. He had purchased the rice at the market and was returning home through fields of abaca, when he was set upon by four or five men and killed, the murderers escaping with the coveted rice. Comment on this. EICE AS A FOOD CROP 59 Rice produced and consumed (July 1, 1917- June 30, 1918) Pkovince Crop ^ Consumeds Surplus Shortage Abra Albay Ambos Camarines .... Antique Bataan Batanes Batangas Bohol Bulacan Cagayan Capiz Cavite Cebu Ilocos Norte Ilocos Sur Iloilo Isabela Laguna La Union Leyte Manila, city of Mindanao and Sulu : Agusan Bukidnon Cotabato Davao Lanao Sulu Zamboanga Mindoro Misamis Mountain Nueva Ecija Nueva Vizcaya Occidental Negros .... Oriental Negros Palawan Pampanga Pangasinan Rizal Romblon Samar Sorsogon Surigao Tarlac Tayabas Zambales Cavans ^ 138,142 298,679 366,608 208,016 133,768 141 323,003 350,588 781,514 321,757 653,048 414,471 51,728 635,798 265,206 1,285,063 16,876 272,042 492,187 475,198 9,309 8,257 20,731 16,283 175 42,623 102,109 98,309 250,593 2,267,632 97,058 413,726 56,565 13,797 772,119 2,585,344 342,315 63,525 140,069 75,610 189,664 1,019,161 360,649 321,011 Cavans 133,870 600,130 601,885 328,400 105,300 17,860 588,805 632,500 616,340 395,265 589,390 323,485 1,495,320 380,935 351,000 934,440 202,840 360,305 304,960 982,860 546,895 122,615 119,455 200,595 225,790 163,510 227,080 256,505 131,000 363,850 795,735 345,150 71,215 850,650 544,750 133,790 554,775 1,099,020 370,830 135,800 668,070 412,990 241,645 344,565 521,860 227,255 Cavans 4,272 28,468 265,174 63,658 90,986 254,863 350,623 187,227 1,922,482 25,843 217,344 1,486,324 674,696 93,756 Cavana 301,451 236,277 120,384 17,719 266,802 281,912 73,508 1,443,692 85,794 185,964 88,263 607,662 646,895 113,306 119,455 192,338 205,054 147,227 226,905 213,882 28,891 266,541 645,142 436,924 488,185 119,993 28,516 72,276 628,001 337,380 51,981 161,211 Total 16,750,472 19,521,285 5,665,616 8,436,429 Net shortage for the Philippine Islands in 1918 2,770,813 1 Bureau of Agriculture. ^ One cavan = 67^ kilos, * Estimated. 60 ECONOMIC CONDITIONS 27. Comment on the following item of news also : Hunger is already threatening. It is leading an element of the people to something like madness. It has been rumored that a band of " mal- hechores " is somewhere in Nasugbu, a neighboring municipality. No depredations have as yet been reported as committed by them, but it is apparent that they are capable of doing much harm to the community. The people are uneasy, and are on the lookout for impending danger. With this condition of affairs, living in this neighborhood is far from peaceful. The constabulary also received reports yesterday from Iloilo and Samar describing similar conditions. Panic, rioting, disorder, hunger, and actual famine are all hinted at, or predicted, in two telegrams just received at constabulary headquarters in regard to the rice situation in the provinces of Samar and Iloilo. The message received from the constabulary officer in command of the forces in Samar says that there is a rice crisis in every town of the province, including Catbalogan. The telegram says that rioting and general disorder is a possibility at the present time, and that the general situation is certain to become dangerous if a shipment of rice does not arrive there soon. In the in- terior of the province, the message says, the people have enough corn and root products to satisfy their immediate hunger, but the rice short- age is being felt in every town of the province. In August, 1919, an article appeared in the Manila papers stat- ing that unless the people ate seventy-five riceless meals before the next harvest, famine would result. This recommendation was based on the following figures : a population of ten million people for the Islands ; importations from Saigon in 1917 (147,000,000 kilos of rice) were higher than those of 1918 ; the native crop of rice of 1918-1919 was larger than that of 1917-1918 ; the average consumption per capita is 112 kilos per annum, or 307 grams a day. According to the figures above the Philippines require 402,700 kilos of foreign rice a day to meet the necessary consump- tion of the Islands. From the date in question until the rice har- vest in December there were 150 days, which indicates a shortage of 60,405,000 kilos. 28. What essential point did these figures not take into con- sideration ? 29. Prove from the same figures used in this article (Chart III) that the shortage did not necessarily exist. RICE AS A FOOD CROP 61 30. From Chart I why do you think a large rice area was planted in 1919 ? Suggestions for the Study of Local Conditions 1. Forms of seed selection in local rice fields. Make a list of local varieties of rice, explaining the characteristics and points in favor and against each. Bring in samples. 2. Write a description of a rice mill, comparing the different operations with cleaning by hand. 3. Bring in a report as to how rice culture in your province might be improved; how the cost of production and marketing might be reduced. 4. Bring in a paper making recommendations as to the re- establishment of old temporary dams and irrigation systems in the locality. 5. Describe the control of commercial stocks of rice in your locality and province. Suggestions for Reports from References, especially FROM Commercial Geographies 1. Make and explain a chart showing the uses of rice. 2. Ex- plain the control and prevention of beriberi. 3. From the latest " Statistics on Principal Crops of the Phil- ippine Islands " prepare a chart representing the amount of rice production of the Philippines. 4. Divide it into sections repre- senting the production of the chief rice-producing provinces. 5. Compare these. 6. From the table on rice production and consumption by provinces, and by referring to Miller's " Commercial Geography " and Miller and Policy's " Intermediate Geography," prepare a map of the Philippines showing the regions of rice ex- port and import, and those regions producing enough rice for local consumption. 7. Explain the reason for the importation of rice in each case. 8. In August, 1919, it was estimated that the crop of 1919 would be one third less than that of 1918. At the average consumption per capita for the previous nine years, would this 62 ECONOMIC CONDITIONS crop have been sufficient to feed the population of the Philip- pines ? 9. If not, how much rice would have been required in addition ? 10. From the statistics of the Bureau of Agriculture determine what the rice crop of 1919 actually was, and answer these ques- tions as to its sufficiency and the amount of import required. 11. Describe the production, harvesting, and marketing of wheat, and the milling of flour in the United States. 12. Make a comparison of its problems with the problems of rice growing and marketing in the Philippines. 13. Could a similar organi- zation for marketing rice be developed in the Philippines ? (Brigham, pages 1-21.) 14. Some capitalists have become interested in the development of lands in the Cotabato Valley and the Central Plain of Luzon. Both areas are capable of irrigation. They have decided to plant rice extensively. You are appointed by the directors of the com- pany to bring in reports as to the feasibility of the two schemes. Do so, making use of the charts of rainfall in Miller and Polley's " Intermediate Geography " in so far as the seasons of rainfall are concerned. 15. Make a study of Act Number 2818 of the Fourth Philippine Legislature, an act to encourage the increase of the rice and corn production in the Philippine Islands, etc., and bring in a report of what the government has done, and the success that has attended the application of this law to the Philippines as a whole, and to your locality. 16. The food-importing and the food-exporting countries of the world. 17. Discuss the difference in the effect of submarine warfare on the food supply of Great Britain and of France ; the effect of the blockade of Germany on its food supply. 18. Secure the necessary data from the latest annual report of the Collector of Customs, and bring Chart I down to the present time. 19. Comment on these new figures, in relation to those of former years. 20. Obtain from the Bureau of Agriculture the data necessary to bring down to the present the table on the annual rice yield in the Philippines. Make a chart representing these figures. Com- pare it with Chart I, Philippine Rice Imports. 21. Explain the RICE AS A FOOD CROP 63 causes for the extraordinarily high imports of rice in terms of Chart I and this chart ; for the unusually low imports. 22. Describe the world's production of rice and the rice trade (Finch and Baker ; Miller ; Toothaker ; Brigham), making careful comparisons with the Philippines. Studies from the Philippine Census of 1918 (when Available) 1. The rice industry of the Philippines. 2. Rice mills in the Philippines. CHAPTER III CORN AS A FOOD CROP^ Importance in the World As compared with wheat or rice, corn has, in the world's market, a rather pecuHar status. Although the world's corn crop is larger than that of wheat or rice, the comparative amount of corn directly consumed as a human food is small. Probably the chief reason for relegating it to the position of an animal food is the coarse and rough texture of corn meal when the ground fibrous hull is present. The people of wheat- eating countries are prejudiced against corn because of its color and the unfitness of its meal for porous bread. The protein of corn, unlike the gluten of wheat, is not elastic, and the bread is granular rather than porous. Moreover, corn bread is not so attractive as wheat bread, and does not keep in good condi- tion so long. In the Orient it is compared unfavorably with rice, since it has to be cooked nearly twice as long, and in tropical countries generally it has found less favor on account of the ease with which weevils destroy it when stored. Corn has therefore become the chief food in but few regions of the earth, although in many countries it is an important supplementary food. Throughout the world it has been used mostly in the fattening of hogs and cattle, and in several important manufacturing industries. In recent years, how- ever, the value of corn for direct human consumption has been more thoroughly understood, and methods of preparation have been developed by which this grain can be made more diges- tible and more appetizing. The chief advances made in the commercial preparation of corn have been in separating the hull from the meal, thus increasing its digestibility, and in * Bulletin 23^ Bureau of Agriculture, Manila, 1912. 64 CORN AS A FOOD CROP 65 eliminating the germ, thus preventing the meal from becoming rancid. In the United States, especially, these improvements have been undertaken in an organized manner, and corn propa- ganda has spread even to Europe in the attempt to educate people in the proper preparation of corn for food. During the World War the people of the United States were able to conserve millions of bushels of wheat by substituting corn for wheat on their tables; in Europe corn was mixed with wheat and other cereals in making bread. Corn surpasses all other crops in the return for the labor expended. In the United States such a large area is devoted to corn that even a slightly increased yield per hectare gives an aggregate increase of considerable value. The farmers of the corn belt obtain increased yields by improved methods of tillage and seed selection. These new methods and ideas, which are worked out in colleges and experiment stations, are brought to the farmers by different means. Among the most effective means is that of special railroad trains, fitted up as lecture halls and provided with corn experts, who are thus sent throughout the corn-growing area to advise the farmers. Much of the expense of these trips is borne by the railroad companies, who consider it a good investment, since the returns from the increased amount of freight given them by the larger crop more than recompense them for the outlay. Bulletins, the introduc- tion of the study of corn growing in the public schools, farmers' corn-growing cooperative clubs, and special corn demonstrators have also been effective. Though the total amount of corn produced in the United States shows a steady increase, the demand keeps pace with the supply. Since 1901 the world's production of corn has increased much faster than that of other cereals. Importance in the Philippines Corn was introduced into the Philippines from Mexico. Its social status in the Islands has been low, for it has generally been known as " poor man's rice." In 1912 the value of the 66 ECONOMIC CONDITIONS com crop was one eighth of that of rice, but the increased interest manifested in corn since 1912 has resulted in greater production. Now the people are beginning to understand its value as an article of human diet and as fodder for horses and carabaos ; and they are coming to realize that a large return may be expected from the amount of seed planted even when grown under poor conditions. In 1917 the value of the corn crop had more than doubled, and was one fifth of that of rice. The following figures indicate the increasing area devoted to corn : Year Hectares Year Hectares 1911 .... 302,516 1915 .... 443,048 1912 .... 340,916 1916 .... 432,766 1913 .... 383,709 1917 .... 429,293 1914 .... 421,309 1918 .... 418,386 n certain districts of the Ph ilippines corn is the chief f c of the people throughout the year. These districts probably include one fifth of tfie total population of the Islands. Unlike rice, corn demands a fairly porous soil, which will not hold water. Hence the coralline limestone soils found on Cebu, on Siquijor and in Oriental Negros, and in parts of Occidental Negros and Bohol are devoted to corn, and this cereal is the staple food in these localities. It is also the chief food crop in the upper part of the Cagayan Valley, which is the great tobacco region. Corn is planted there as a second crop after the tobacco has been harvested. In certain districts now pro- ducing export crops (for instance, parts of Misamis) corn was formerly the chief crop and food. A scarcity of animals is given as the principal reason for the diminished cultivation. Fish, meat, and beans supplement corn, though fish is prob- ably used to a less extent in these regions than in rice-eating districts. Corn may be crushed and ground into coarse meal in prim- itive stone mills run by hand, in which two or three days' supply can be prepared at one time. By sifting and blowing, much of the husk is removed ; the remaining meal is put into a pot of boiling water and cooked about fifteen minutes (half PHILIPPINE ISLANDS CHIEF FOOD CONSUMED ■1 Rice ^H Corn p^ Tubers (Statistics from Economio Reporti, Bureau of Education) V Sv /Formosa CHART IV 68 ECONOMIC CONDITIONS the time required for complete cooking). In the Cagayan Val- ley the kernels are soaked for about a minute and then pounded in a mortar with a pestle, a long task. By shaking and sift- ing, the large pieces of the inner portion of the kernels are separated. The finished product is known as corn rice ; it is usually cooked about half an hour before being ready to eat. It is interesting to note that in the corn-eating regions of the Philip- pines the Avealthier per- sons usually live on rice, and that rice is often served by the poor on special occasions. Never- theless, in certain regions in which corn was for- merly the chief food, but in which it is now dis- placed by rice on account of the availability of rice in exchange for export crops, many of the in- habitants still prefer corn and will put themselves to much inconvenience to procure it. The importance of corn as a supplementary food varies con- siderably in different parts of the Islands. In some regions, such as parts of northern Mindanao, Leyte, Bohol, Masbate, Batangas, Bulacan, and Abra, corn almost equals rice in the amount consumed. In other regions it occupies a minor place in the diet of the people, and in some localities it is scarcely eaten at all. As a supplementary food, corn is much grown on hill lands in kaingin, either by itself or as a catch crop. It is sometimes planted as a catch crop with sugar cane, and as a second crop after sugar cane or rice. In many regions CORN STORED ON FRAMEWORK CORN AS A FOOD CKOP 69 corn is planted in small patches here and there among main crops. Since corn requires less moisture than lowland rice and yields food in three or four months after planting, it often becomes an important crop after or during rice failure. As a result of the drought of 1911-1912, corn became an important crop in many regions of the Philippines, such as the Central Plain of Luzon and Laguna Province. In regions where corn is not the chief food the form in which it is usually eaten differs somewhat according to its importance in the diet of the people. In those districts where corn constitutes the largest part of the diet during half the year, it is eaten in the forms previously explained. Where it is of considerable importance throughout the year, it is often ground to a meal and mixed with rice to make the rice go farther. It is consumed to give variety to the regular diet; or it is eaten between meals, boiled or roasted on the cob. In a few places the people know how to prepare corn by removing the hull. Parched corn is eaten throughout the Philippines, and is often carried by travelers. In those localities where little corn is used, only one crop is grown ; but in most districts two crops, and, in many regions where corn is the chief food, three crops are produced annually. The cultivation of corn in the Philippines is as crude as the methods followed in the production of rice. Preparation of the soil is inefficient, seed selection is lacking, too many stalks are grown in a given space, and fertilizers are employed spar- ingly if at all. Corn is also lost by the attacks of pests in the field. On an average about fifteen cavans of corn per hectare are produced. In the United States the average yield per hectare is thirty cavans. At the present time corn is stored in three ways in the Philippines : (1) the whole ear, including the husk, is fastened to a framework or to the side of the house, end down and fully exposed to the sun ; (2) the ears are tied together, thoroughly cured in the sun^ and stored under the roof of the house, where smoke assists in protecting them from weevils ; 70 ECONOMIC CONDITIONS (3) where corn is not to be kept very long it is shelled, thor- oughly dried in the sun, and stored in large baskets ; shelled corn, however, is liable to attack by weevils. The difficulty of storing corn makes it a crop to be con- sumed soon after harvest. This is no slight discouragement to planting it. Increase in Peoduction and Use The increased production of corn in the Philippines is due to encouragement of the government.^ Reasons for promoting the growth of corn are found in the following conditions: (1) corn is an excellent human food when rightly prepared ; it becomes an important food crop where rice cannot be grown, and as a supplementary food it proves of great importance in connection with rice and durmg failures in the rice crop ; (2) on account of the possibility of three crops a year and the large yield per hectare corn is a good crop to raise for sale ; (3) the leaves of corn make excellent fodder, the gathering of which in no way diminishes the yield of grain ; this is an important consideration, for at the present time the Philippines are deficient in food for stock. As has been previously stated, no other crop responds so readily to intelligent labor as does corn. A few points may be briefly noted: 1. The better cultivation of the soil and the improvement of implements necessary in producing rice (see pages 42-44) are also essential factors in the cultivation of corn. 2. The question of seed selection is particularly important with corn, for many of the local problems may be solved by foresight in this matter. These problems are («) to secure an ^ The Bureau of Agriculture met with particular success along the railroad in Panay. During September, 1911, the railroad handled 18,000 kilos of corn from Iloilo Province ; in September, 1912, it handled 400,000 kilos, a gain of more than twenty-two hundred per cent. While the increased yield in the Islands during the Corn Campaign was partly artificial, much of the increased area planted at that time has been continued. CORN AS A FOOD CROP 71 increase in the amount of corn grown, which will result from the production of two ears on a plant and a greater number of seeds to the ear; (5) to have the ear grow on the lower part of the stalk, and thus reduce the liability of its being destroyed by winds; (c) to produce a hard flint variety combined with high yield; (c?) to produce an ear hanging downward, as a prevention to the entrance of rain. 3. Fertilizing is very important. Barnyard ma- nure, green vegetable mat- ter growing in the fields and carefully turned under, and commercial fertilizers all result in a largely in- creased yield. 4. Corn in the Philip- pines has always been planted too thick. If the proper distance is main- tained between rows, and between the plants in the row, a large increase in the yield can be expected. The system of growing legumes, such as cowpeas, green gram (mungos), pea- nuts, and the like, between the rows of corn would also tend to produce a larger crop and to increase the fertility of the soil. At the present time practically no rotation of crops for preserving or increasing the fertility of the soil is practiced in the Philippines. If corn were rotated with tobacco, cow- peas, peanuts, upland rice, and millet in proper sequence, the exhaustion of the soil would, to a large extent, be prevented. It has been shown that corn planted without effort to obtain the best results yielded from a given area ten and a fourth A PLOT OF CORN 72 ECONOMIC CONDITIONS pounds of seed ; that corn on the same area, when planted regularly in rows a half meter apart and frequently cleaned and hoed, gave about six times the amount of the first crop ; and that corn again on the same area, when planted in rows a meter apart and given the same cultivation, produced more than nine times the amount of the first crop.^ Improvements in the method of preparing corn will also result in a greater appreciation of it as food. As a substitute for the crude stone mill, there have recently been imported small steel mills. The cheapness of these renders it possible to place them in every small community if not in every house- hold. If corn is to be elevated from its lowly position as '' poor man's rice," the people must understand more thoroughly the methods by which palatable foods may be prepared from it, and the necessity of longer cooking. This matter has re- ceived attention and publicity ; with the increased production of corn already noted, there has been an increased use of it as a supplementary food, and, to a smaller extent, as a chief food in connection with fish, beans, and other products high in protein. The great problem which confronts the small producer of corn in the Philippines is to obtain better and cheaper methods of preserving the grain over a longer period of time than is now practicable. Treatment with carbon disulphide (much practiced in the United States) is impracticable here on account of the inflammable nature of the gas. It would seem that unless some herb or other simple insecticide is found, the evolution of a hard flint variety of the grain is the only practicable solution of the difficulty. For commercial purposes large amounts of shelled corn may be protected by means of carbon disulphide. 1 Agricultural Review, Vol. Ill, No. 8. CORN AS A FOOD CROP 73 SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text 1. What are the points against extensive production of corn in the Philippines ? 2. Where is it used as the chief food ? Why ? 3. What is its place in the diet of the people in other parts of the Islands ? 4. Explain the chief problems of producing and market- ing corn in the Philippines. 5. If all the Filipinos should sud- denly substitute corn for rice, what would be the effect on the economic condition of the country ? 6. Is such a change desirable? 7. State the comparative food values of corn and rice. Suggestions fok the Study of Local Conditions 1. Corn as a crop and as a food. 2. Varieties of corn recognized. Suggestions for Reports from References, especially FROM Commercial Geographies 1. From the latest " Statistics on Principal Crops of the Philip- pine Islands " prepare a chart representing the amount of corn pro- duced in the Philippines. 2. Divide it into sections representing the production of the chief corn-producing provinces. 3. Compare these. 4. Explain the causes for the heavy production of corn. 5. The world's corn industry.^ 6. The relation between the corn and the hog industry of the United States.-^ 7. Make and explain a chart of the uses of corn. 8. The cereal foods of the world : where they are grown and used ; comparative production ; comparisons with those of the Philippines ; international trade ; which are or can be grown in the Philippines ; why the others cannot be grown.^ 9. Make and explain charts showing the uses of wheat, rye, oats.^ 1 See Finch and Baker ; Miller ; Toothaker ; Bishop and Keller. CHAPTER IV LESSER FOOD CROPS Supplementary Foods While rice or corn is the chief food in nearly all parts of the Philippines, certain other crops are supplementary. The sweet potato is widely used as an important supple- mentary food to rice ; indeed, in certain inland mountainous regions of the Islands it is the chief food. The cultivation of this crop by the Igorots, on account of the lack of suitable rice lands in their country, has already been noted (see Chapter I). The same reason for its cultivation holds among the Filipinos also. In the Batan Islands sweet potatoes and other roots and tubers constitute the chief crops, not only because ground suitable for rice is not obtainable, but because the high winds which accompany the frequent typhoons destroy or badly damage the vegetation. The social position of the sweet potato in the Philippines is much lower than that of corn. To say " They live on camotes " indicates, in most regions, a state of abject poverty. The nutritive value of the sweet potato lies almost entirely in its starch, the protein and fat being negligible. The amount of sugar in the Philippine camote is small. Beans, fish, or other foods high in protein should be eaten with the camote. In many regions, particularly where it is the chief food, the camote is planted in separate fields. It is often grown as a second crop after rice, or as a catch crop between other plants. No attempt is made to cultivate carefully or to improve this root. As a general food, the sweet potato attains its greatest importance just before rice planting. At all times of the year it is eaten between meals. 74 LESSEE FOOD CROPS 75 Of the numerous species of yams, several are found wild or cultivated, and are probably the second most important sup- plementary food. These roots are sold in nearly all markets of the Islands ; their place in the diet of the people is much the same as that of the sweet potato. In certain localities they are used with sweet potatoes as the chief food, but in most places their value is purely supplementary, in varying degrees. The yams are peculiarly immune to the effects of drought and are therefore excellent dry-season crops. Their food value lies almost entirely in their starch. Taro is found in all markets. This root, however, is nowhere a principal or even an important food. Since its cultivation requires considerable moisture, it cannot be advantageously grown during the dry season except along streams. It is a starchy food. The value of cassava roots as food is not well understood in the Philippines in general. In the Sulu Archipelago cas- sava is the chief food ; in other parts, however, it is seldom used except in times of great need. Among other supple- mentary food crops may be mentioned the arrowroots, the millets, the beans, and the palm starches, but the amounts of these consumed in comparison with the foods noted above are small indeed. Foods of Luxury Foods of luxury raised and. eaten by the Filipinos are not numerous, nor of great quantity.^ The most important are the fruits. In the Philippines there is practically no cultivation of fruit, no orchards or organized systems of obtaining and disposing of fruit. The trees are simply allowed to grow, and the product is gathered when ready. There is not a fruit grown in the Philippines the yield of which could not be increased in quality and in quantity by careful propagation and cultivation. Mangoes are produced generally, and are 1 Luxuries include foods eaten not for their nutritive value particularly, but as relishes at or between meals. 76 ECONOMIC CONDITIONS exported from certain favorable localities in large quantities. During a short season mandarins ^ are sent from the groves of Batangas and two or three small centers. Lansones, which grow here and there in the Archipelago, are exported princi- pally from southwestern Luzon. Pineapples, chicos, guavas, tamarinds, papayas, and other fruits are produced locally and enter trade to a small extent.^ Of these the papaya is the most utilized. In general, fruits contain but little nourishment in comparison with their bulk ; this nourishment consists usually of sugars. Fruits aid and stimulate digestion rather than give nourishment to the body. In the Philippines green fruit is preferred, and consequently the nourishment which is developed in the ripe fruit is lost. Unlike most fruits, however, the banana contains a large amount of nutrition and has a distinct food value, especially when cooked. The place of the banana in the diet of the Filipinos is peculiar, and varies with the kind of fruit and the locality. The best kinds of bananas are considered luxu- ries for the table of the well-to-do, and bring a relatively high price in all parts of the Archipelago. The commoner varieties are the chief food in a few barrios^ throughout the year or during a large part of it. Probably in half the municipalities of the Philippines the banana is a recognized supplementary food, and enters into the diet of the people as largely as do the root crops and corn. In the other municipalities even the inferior varieties are considered luxuries, and very few are eaten. The cause of this great difference in the use of the banana lies in the madequate local production, which is due to neglect or unfavorable location. In no place in the Philip- pines is the demand for bananas fully met. About Manila, Cebu, and Iloilo there is a small trade in the fruit, and the fruit is found in the markets of most towns. The largest 1 Known locally as the Batangas orange. 2 For discussion of these fruits see " Commercial Geography, the Materials of Commerce for the Philippines," by Miller, Bureau of Education, Manila. * The Philippines are divided politically into provinces, municipalities, and barrios. LESSER FOOD CROPS 77 supply which the provincial householders possess is that obtained from plants grown in their own yards. Other domestic luxuries consumed by the Filipinos are sugar, onions, garlic, coffee, chocolate, buyo (betel), tobacco, and certain fermented drinks such as palm saps (tuba) and basi. Sugar enters the composition of numerous sweetmeats (dulces) made from other foods already mentioned and the meat of the coconut. Garlic and onions are greatly appre- ciated for flavoring foods. With those who have the means coffee or chocolate is drunk with the morning meal, and choco- late in the afternoon. The smoking of tobacco is a luxury freely indulged in by all classes. The chewing of buyo, how- ever, seems to be growing less. The wide consumption of distilled liquors will be discussed in another place. Fermented juices are also important. In the Visayas immense quantities of fermented coconut sap are drunk, and among the Ilocanos fermented sugar-cane juice (basi) is used by all classes. A small amount of fermented nipa sap is consumed near exten- sive swamps covered with nipa palms. Famine Foods In the discussion of the chief food crops it has been inti- mated that famines sometimes occur in the Philippines. This term, however, is almost too strong to apply to any conditions found in the Islands. It usually suggests periods in India and China when thousands die from want of food. Such a condition, however, is not even approached in the Philippines. In the worst times a few hundred persons, mostly old people and children, may die of malnutrition. The Philippines are not densely populated, and in times of necessity the people can resort to wild foods. Two different conditions of famine should be noted : (1) annual seasons of restricted diet result- ing from too small production of food ; and (2) extraordinary times of food scarcity caused by unusual drought, storms, or epidemics. 78 ECONOMIC CONDITIONS During the regular annual periods of food scarcity which occur in certain backward communities, it is customary to make the chief food go farther by adding less appreciated foods. Thus m rice-eating regions ground corn is added to the morisqueta,^ and more root crops are consumed. Li corn- consuming regions the people resort to cultivated roots and even to wild roots and starches from wild palms. In the most backward communities the coarsest forms of wild food sup- plement the chief diet. In these localities the period of famine is a time of real want, when the hunger belt must be drawn tight. Such annual periods of food scarcity occur, of course, only in the less progressive and poorer districts of the Philip- pines, but they are of sufficient importance to be noted as a condition, and not as an exception. From time to time extraordinary periods of restricted food supply occur in certain localities or throughout the Islands. In the most advanced and richest regions, in which there is diversity of production (as Laguna and Pangasinan), or where the land is given over to a successful export crop (as the present coconut region of Tayabas), drought has no serious ill effect on the people. But where the population .is dependent on one food crop or on an export crop which brings a low price, the effect of curtailment in food is often keenly felt. Here again the results of the famine depend on the character of the population. In the least civilized parts of the Philippines the people take to the hills and live on roots and other wild food until they can plant and harvest another crop. In more advanced localities the people resort to less appreciated foods. In rice-producing regions corn is usually planted, since it furnishes food more quickly than rice and requires less water. In many parts of the Islands more yams and vegetables are also eaten at such times. The most important sources of nour- ishment during the scarcity of cultivated foods are the palm starches. In some places palm starches are regularly included in the diet, such as buri starch on the Bondoc Peninsula, the 1 Boiled rice. LESSER EOOD CROPS 79 starch of the sugar palm in Mmdoro, and the starch of the sago palm in the northeastern portion of the Agusan Valley. But for the Philippines in general the palm starches may be considered foods of necessity, used only in times of scarcity. In coconut regions tuba is drunk to a larger extent during food shortage ; taken with a little rice and fish, or corn and fish, in the middle of the day, it sustains life until the next harvest. New Food Crops Certain food crops which are now seldom or never produced in the Philippines deserve much greater attention than they receive. Among these the most important is beans. Three general classes of food are recognized as necessary for the proper nourishment of the body: the carbohydrates, which are ob- tained from starches and sugars; the proteids, which are found in fish, meats, beans, and the like ; .and the fats, which may be either animal or vegetable. The diet of the Filipinos is plentifully supplied with fats from pork and coconut oil, which are eaten universally. The proportion of starchy foods consumed by the Filipinos is too great. Rice and roots are almost entirely starch. Corn contains a considerable amount of protein, but is essentially a starchy food. At the present time protein is supplied largely by fish, to a less extent by meat, and to a still less extent by beans. In certain localities (particularly on the island of Panay and among the Ilocanos) beans are a notable feature of the daily food. Yet even in these places the nutritive value of beans in connection with rice is not well understood. The chief reason for eating beans is that they can be grown between main crops. For the Philip- pines in general beans are used much too sparingly. The varie- ties found in the small stores and markets of most towns are principally imported from China. Those grown by individuals are consumed by the family or in the immediate locality, except in a very few cases, as in Ilocos Norte, Pangasinan, and Antique, from which beans are exported. 80 ECONOMIC CONDITIONS The most important varieties of beans grown in the Philip- pines are tlie cowpea, which is usually eaten green ; the lima bean, which is found both wild and cultivated ; and the green gram, which is the most important of the local beans, and which is valued for its dried seeds. All these varieties are rich in protein. The use of beans in crop rotation with starch- producing plants is not understood in the Philippines. The cultivation of beans in connection with rice, corn, and root A VEGETABLE GARDEN crops would improve agricultural conditions and furnish the necessary protein to the diet of the people. The present vari- eties grown are suitable, but others might be introduced. Recently the world has taken interest in the soya bean, which is produced and eaten in large quantities in China, Japan, and India. This bean is a prolific source of oil in these countries and in Europe, and its general food value is becoming rec- ognized to an ever-increasing extent. It is unusually rich in fat and protein, and contains practically no starch. The soya bean is not well known in the Islands, although quantities are imported from China and made mto bean cakes or curds, LESSEE FOOD CROPS 81 an excellent food, which is popular in the larger cities of the Philippines. The bean would be a good addition to the crops and foods of the Filipinos. The diet of the Filipinos is deficient in fresh vegetables also. After all, variety in diet is largely a matter of habit, and the customs of the Filipinos have been such as to eliminate almost AN EXHIBIT OF VEGETABLES FROM SCHOOL GARDENS Results of propaganda on vegetables all fresh vegetables except greens from their table. Near most houses there is a large space where a vegetable garden can easily be maintained, the product of which would be important not only in giving variety to diet, but in serving as food in times of scarcity. The schools in all parts of the Islands have taken up with great earnestness the planting of school and home gardens. In 1917-1918, according to the report of the Director of Education, there were 4023 school gardens and 82 ECONOMIC CONDITIONS 103,668 home gardens. In nearly all towns there is a notice- able increase in the number of gardens about the houses, and in the amount of fresh vegetables eaten. ^ SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text 1. Vegetables as an important factor in the national diet. 2. What constitutes a food of luxury in the Philippines ? 3. Under what conditions do foods of luxury become common foods ? 4. Under what conditions do common foods become foods of luxury ? 5. Suggest a method of introducing new foods into a country. 6. What conditions render such a plan advisable ? necessary ? 7. Should any effort be made to reduce some of the present foods of luxury to the level of common foods ? 8. If so, how would you develop this effort ? Suggestions for the Study of Local Conditions 1. Chief and supplementary foods. 2. Foods of luxury. 3. Foods used during periods of scarcity. 4. New foods that might be introduced. 5. A study of local bananas with respect to uses and quality (cooking, eating of various grades, vinegar) ; keeping and shipping qualities. 6. Local fruits and their varieties. 7. Those that might be produced commercially. 8. Has the consumption of vegetables increased ? Suggestions for Reports from References, especially FROM Commercial Geographies 1. Philippine commercial fruits. 2. Where they are produced commercially. 3. Some problems connected with their production and marketing. 4. Orchards. 5. Possibilities of exporting fresh fruit from the Philippines. 6. The import of fresh and preserved fruits. 7. Fruits that might be introduced into the Islands. (Miller.) 1 For a summary of the chapter on food crops, see Chapter XIII under the heading The Standard of Living (page 286.) LESSER FOOD CROPS 83 8. Growing, marketing, and preserving fruits and vegetables. 9. The industries in the United States. (Finch and Baker ; Bishop and Keller.) 10. Lists of imported dried and preserved fruits and vegetables found in Philippine stores. 11. Philippine fruits and vegetables in relation to their possibilities of being preserved commercially. 12. Make and explain a chart of the uses of the banana. 13. The white potato : its cultivation and use. (Finch and Baker.) 14. Imports into the Philippines. 15. The cultivation and use of camotes and other root crops in the Philippines. 16. The banana : its cultivation and commercial uses. (Miller.) 17. Citrus fruits. (Miller ; Finch and Baker.) 18. The school gardens of the Philippines : a review of the efforts made and the work accomplished. 19. The value of beans as food. 20. Possibilities of producing cassava and sago in the Philip- pines. 21. The production and consumption of cassava in Brazil. 22. Periods of famine in India and China. 23. Their causes and effects. 24. Remedies. 25. Periods of scarcity in the Philippines. 26. Their causes. 27. Foods eaten during times of scarcity. 28. Prevention of these periods. 29. The World War, and the food problem in Great Britain, France, and the United States. 30. How the problem was solved. 31. Vegetable foodstuffs imported into the Philippines. 32. The food supply of the United States. (Finch and Baker ; Bishop and Keller.) CHAPTER V ABACA AS AN EXPORT CROP The food crops of the Philippines are produced for consump- tion in the Islands. With the exception of rice they hardly enter commerce. Even rice is sent from only a few districts. The export crops, on the other hand, are grown almost entirely for use in foreign countries, only a small part of each being consumed in the Islands. In exchange for these crops there are brought into the Philippines (1)" necessary articles which cannot be made here, or which can be produced more cheaply in foreign countries, such as iron and steel goods and cotton cloth ; (2) food, such as rice ; and (3) luxuries, such as preserved foods, phonographs, shoes, and books. It is probable that the export crops equal in value those raised for local consumption. History of Abaca For many years the most important export from the Philip- pines has been Manila hemp. The fiber-producing qualities of the species of Musa, called in the native languages abaca, was well known to the Filipinos long before the days of Spanish occupation. When Magellan arrived at Cebu, the weaving in- dustry was already widespread. Levariza (1569) spoke of the great quantities of colored abaca cloths woven in the present province of Albay. Since the weaving and the use of the cloth were general among the natives, the Spanish government made the cloth legal tender for the payment of taxes. However, although weaving was a common household industry, this peculiar form of money was not easily obtained, and long argu- ments concerning the hardship of paying the taxes appeared from time to time in letters written to the Spanish king. 84 ABACA AS AN EXPORT CROP 85 In ancient times the fiber was obtained from the wild plant. The cultivation of abaca was not begun until the early part of the nineteenth century ; some abaca was exported in 1818. In 1824 the fiber was used extensively in New England ship- yards. The amount of abaca exported, however, was not large until the latter part of the century. From 1850 to the present time production and export have increased rapidly ; Figure I on Chart VI shows the increased volume of export from 1877 to 1918, inclusive. The popularity of abaca in the regions in which it can be grown 1 is probably due to the following facts: it is not attacked by pests, such as locusts (which are destructive to rice and other crops), nor by any serious fungous diseases; it resists drought fairly well ; not much labor need be expended on its cultivation, since it thrives in competition with other plants. Moreover, it has no particular season for harvest, and the laborers have more or less steady work throughout the year. Large and Small Producers In parts of the Philippines the fiber is still obtained from uncultivated varieties, although this product is uiferior to that stripped from cultivated plants. In the older abaca districts the holdings are usually small, consisting at the most of a few thousand hills. These holdings are sometimes owned by the men who strip the fiber, and sometimes by the people who live in the lowlands. Such small holdings are probably the result of local scarcity of labor and the general immobility of labor. They also result from giving one family the care of just the number of plants it can cultivate and harvest. The small owners and producers are nearly always economically dependent on certain provincial abaca buyers. Through ad- vances of money or food these buyers control the disposal of the debtors' product. The owners of several thousand hills 1 See Miller's "Commercial Geography, the Materials of Commerce for the Philippines." 86 ECONOMIC CONDITIONS are in a much better position, and are usually independent of all buyers. In many of the newer abaca regions there are plantations of more than a hundred thousand hills, the owners usually being corporations, which are, of course, independent as to the disposal of their fiber. Stripping The amount of labor involved in planting abaca and in cultivating the plot (late) or hacienda is comparatively small, but for the Islands as a whole sufficient labor to strip the fiber from the petiole has never been available. Most of the fiber is obtained by the laborious process of pulling the petiole under a knife by hand, as shown on page 101. This process requires not only great dexterity but great strength. The problem of the owner, therefore, is to find sufficient labor to strip his fiber. The wages of strippers usually consist of a certain share of the product. Formerly this share was one third, but for several years it has been one half of the fiber obtained. In certain places in which labor was particularly scarce, and which were particularly hard hit by the slump in prices of a few years ago, even more than a share of one half has been given the strippers, but on condition that they do the cultivating also. It is considered obligatory on the stripper to sell his share to the owner of the plantation so long as the latter pays a reasonable price for it, this price being slightly less than that of the open market. Hence, in the end, the total product of the plantation usually passes into the hands of the owner. In a few large plantations daily wages are given. In 1903 a hemp stripper with helper could earn from P2 to P2.50 a day.i At the low prices of 1911, however, a laborer and helper could not make more than half that amount. In 1918 strippers averaged about P4.50 a day. Because of the laboriousness of stripping, it is not customary for the strip- pers to work continuously. They usually strip hemp three days a week and devote the other three days to cleaning 1 Bulletin 5S, Bureau of Labor, Washington, D.C. ABACA AS AN EXPORT CROP 87 the late. Hence, no matter what the price is, the strippers' average annual income is probably no higher than that of laborers working in other agricultural pursuits. The strippers in most abaca districts are dependent on the crop for a living, and usually dwell with their families on the lates. They themselves do not raise any food crops or domes- tic animals suitable for food, nor are they encouraged to do so by the men who hire them. This condition, as we shall see later, results in an exodus of strippers from the abaca fields to the rice fields, or to other industries, when the price of the fiber is so low that stripping does hot yield a good living. Transportation Another important consideration in the production of abaca fiber is that of transportation. Usually the abaca lates are in the hills, and the cost of getting the fiber to the coast, if river transportation is not available, is often a difhcult matter. When the price of abaca was high, as in 1903-1906 and in 1918 (see Chart VI), the strippers could afford to carry the product by horse or carabao, or even on their own backs, over trails or across mountains to the nearest coast towns to exchange for rice and cloth. From these places it was taken to Manila or Cebu for shipment to foreign countries. When the price of abaca fell, however, strippers no longer obtained sufficient goods for their load to warrant carrying the fiber to market, and many interior regions, such as the mountains of Samar and the Bukidnon country of Mindanao, practically ceased to export. In general, when the price is low, much abaca goes to waste on the stalk in those regions from which transporta- tion to the market is expensive. Quality The quality of abaca fiber is an important consideration, and can be controlled in the stripping. The abaca exported from the Philippines has deteriorated greatly; this is made 88 ECONOMIC CONDITIONS plain by a comparison of the exports of 1881 with those of 1903 (as reported by a certain firm). This comparison has been given in graphic form in Chart V. It will be seen that by 1903 the second grade, which composed 61.8 per cent of the product of 1881, had almost disappeared ; that the largest part was fourth grade, very little of which had been produced in 1881 ; and that a new or fifth grade was being largely pro- duced. The general quality of the fiber has become even lower since 1903. This lowering in quality results from (1) the use of serrated knives, which give a larger yield with less effort, but which obtain a coarse abaca discolored by pulp ; (2) delay in stripping the separated petioles ; and (3) careless drying, due to the neglect on the part of the strippers in not imme- diately placing the fiber in the sun to dry, and in not protect- ing it from the rain or other forms of moisture which cause discoloration and reduce the strength of the fiber. These causes tend to produce coarse, spotted-brown fiber of uneven strength, instead of the long, soft, white fiber uniformly cleaned and having uniform strength. It is said that in former times it was customary for the authorities to burn inferior fiber to discourage its production ; for they maintained that the marketing of the lower grades injured the reputation of abaca fiber, and lessened the demand for it in the world's markets by inviting competition from inferior rope fibers. However, the local provincial buyers also have been held responsible for the production of lower grades of fiber in the Philippines. In 1903, during cleaning experiments made at Gubat, Sorsogon,! it was shown that during the first hour one and a half kilos of high-grade fiber valued at seventy centavos could be produced with a smooth-edged knife, and about three kilos could be cleaned with a serrated blade, the value of the latter being ninety-four centavos. At wages of half the product, therefore, the stripper obtained thirty-five centavos an hour by stripping the high-grade fiber, and forty-seven centavos an hour by stripping the lower-grade material, a 1 Bulletin 58, Bureau of Labor, Washington, D. C. ABACA AS AN EXPORT CROP 89 1881 1903 difference of twelve centavos an hour. In other words, the provincial middlemen took large profits from the higher grades, and reasonable profits from the lower grades. As a result, the producer received less by the hour for labor on the higher grades than on the lower grades. This, it was said, was not the fault of the large dealers and exporters, but of the local buyers. For instance, in 1912 atGubat,Sorsogon, good current fiber was seUing at P25 per 100 kilos, which would have been worth F40 in Ma- nila, a profit of sixty per cent to the buyer; at Tabaco, Albay, current United States fiber sell- ing in Manila at P28 brought P20, a profit of forty per cent; and so the percentage of profit fell as the grade became lower. Inferior grades of the fiber brought only a reasonable profit.^ With the idea of con- trolling the quality of hemp fiber and its pro- duction the Philippine Legislature passed Act Number 2380. The ex- ports for 1916 and 1917 were entirely of hemp graded under this law, and the customs statistics for these years liave helped to clear up the point of quality. The following table gives the details of the exports for the two years: First Grade 2nd Grade \ | 4th Gra*e Srd Grade 5th Grade CHART V. THE PERCENTAGE OF ABACA FIBER OF EACH GRADE SHIPPED BY A SINGLE FIRM Data from Bulletin 68, Bureau of Labor, Washington, D.C. 1 From data by the Fiber Expert, Bureau of Agriculture, Manila. 90 ECONOMIC CONDITIONS 1917 1916 Grade Quantity (in kilos) Value Average value per 1000 kilos Quantity (in kilos) Value Average value per 1000 kilos A, Extra prime . . . B, Prime C, Superior current . D, Good current . . . E, Midway 51, Streaky No. 1 . . 52, Streaky No. 2 . . 53, Streaky No. 3 . . F, Current G, Seconds H, Brown 0, Strings T, Tow 1, Good fair .... J, Fair K, Medium L, Coarse M, Coarse brown . . DL, Daet coarse . . . DM, Daet coarse brown OO, Strings Y, Damaged . . . . Hemp prepared with oil Not graded Various grades . . . 1,152,643 2,360,567 5,W3,069 7,675,611 14,996,615 2,003,547 4,868,491 2,593,126 24,151,154 5,738,246 3,355,923 522,670 1,863,973 18,297,299 23,995,466 10,011,423 19,854,724 6,853,837 7,386,935 3,443,999 397,321 579,464 819,977 569,124 P 1,770,216 3,085,422 6,330,932 7,044,859 11,917,408 1,293,279 2,838,663 1,429,240 17,118,331 2,591,037 1,419,070 126,380 281,794 9,826,569 10,390,369 3,523,462 6,383,368 2,046,681 2,167,502 948,030 71,601 137,811 553,242 320,293 P 1,535 1,307 1,065 917 794 645 583 551 708 451 422 241 151 537 433 351 321 298 293 275 180 237 674 562 939,666 1,426,020 2,831,906 4,402,325 10,330,419 2,384,680 2,936,454 1,066,529 16,547,107 5,773,682 3,137,714 856,542 1,478,109 17,119,707 22,831,770 7,489,694 20,750,667 8,485,812 3,465,750 1,460,950 531,181 687,466 242,754 59,188 P 907,110 1,148,338 1,828,866 2,469,628 4,980,320 1,026,831 1,185,809 402,679 7,691,871 2,140,773 1,122,601 118,071 163,316 6,625,592 8,222,700 2,579,226 6,521,409 2,451,883 1,077,497 411,838 53,713 139,782 109,250 5,490 P965 812 645 549 482 430 403 377 464 370 357 137 110 387 360 344 314 288 310 281 101 203 450 92 Total 169,435,204 P93,615,559 P552 137,326,092 P53,384,593 P388 A study of this table will indicate the grades that are pro- duced in largest quantity and those that are of most value. In general it may be stated that nearly all A and B, about one half of C, and a fractional part of D and E are sent to Japan to be made into Tagal hat braids. This fiber is long and glassy white, excellently cleaned. The strings (O) with which the hanks of fiber are tied when they reach the baling establishments, and the matted fiber or tow (T) resulting from pulling apart hanks of different grades, are also sent to Japan, where cheap labor is available to straighten them out for rope making. These grades are unimportant. Cordage fiber, grades J to C, are for the most part sent to the United States. Grades I to C are known as the " U. S. grades " or " grades of excellent or good cleaning." Some of the grades H and J, ABACA AS AN EXPORT CROP 91 and nearly all grades K to DM, are sent to the United King- dom. Grades J to DM are known as the " U. K. Grades " or '' partially cleaned fiber." In other words, there are three principal markets for Manila hemp : (1) Japan for the very best or Tagal grades ; (2) the United States for the higher cordage grades ; and (3) the United Kingdom for the lower cordage grades. The exports to these markets in 1917 were as follows: Market Japan United States . . United Kingdom . Grades A, B, C, (D, E) C — J H, J, to DM Kilos 6,000,000 95,000,000 49,000,000 A^ALIE P 8,000,000 59,000,000 19,000,000 The market for Tagal grades has become so distinct that they are now being graded separately. The demand for higher and lower cordage grades in the United States and the United Kingdom results from the differences in machinery, and is therefore constant. In the long run it is the competition between these two markets that determines the proportion of the higher to the lower grades of abaca fiber. If too little lower-grade fiber has been produced, these grades increase in price until the pro- ducer receives greater returns from shipping them. The lower grades are then produced until the resultant shortage in the higher grades increases the price of the grades for the United States. So the price and the production vary according to the demands of the United States and the United Kingdom. The figures of production are given in the table on page 92. In 1915 the United Kingdom grades amounted to about forty per cent of the total abaca production, that is, " fair " to " coarse brown and Daet coarse brown." In 1916 these grades had increased to fifty-five per cent, which was an over-production. In 1917 they had decreased to forty-seven per cent, and by the beginning of 1918 there was an actual shortage in the grades for the United Kingdom. Then the 92 ECONOMIC CONDITIONS COMPARATIVE PRODUCTION OF ABACA (MANILA HEMP) FOR 1915-1918 1915 1916 1917 1918 Graces Number of bales Per- cent- age Number of bales Per- cent- age Number of bales Per- cent- age Number of bales Per- cent- age Extra prime . . . Prime Superior current . . Good current . . . Midway Streaky one, SI . . Streaky two, S2 . . Streaky three, S3 . Current Good fair . . . . Seconds Fair Brown Medium Coarse and Daet coarse Coarse brown and Daet coarse brown Strings, tow, and damage .... 9,678 17,815 34,323 57,161 115,600 21,385 23,271 8,976 148,650 110,132 40,009 140,321 24,964 46,759 131,426 65,592 15,324 1.0 1.7 3.4 5.6 11.4 2.1 2.3 0.9 14.7 10.9 4.0 13.9 2.5 4.6 13.0 6.5 1.5 7,325 11,039 20,892 32,490 76,333 14,460 26,651 9,623 128,000 131,499 42,678 204,749 26,227 79,481 246,767 87,839 28,620 0.6 0.9 1.8 2.8 6.5 1.2 2.3 0.8 10.9 11.2 3.7 17.4 2.2 6.8 21.0 7.5 2.4 9,080 20,671 50,907 77,695 145,361 15,914 36,998 25,491 214,696 41,673 23,423 148,558 162,715 59,245 157,757 73,206 28,461 0.7 1.6 3.7 5.8 11.0 1.2 2.8 2.0 16.5 3.3 1.8 11.6 12.8 4.8 12.3 5.6 2.5 71 552 8,072 37,248 92,560 13,497 38,052 24,233 189,916 192,429 50,128 394,099 31,602 107,900 86,282 31,628 23,210 .01 .04 .61 2.82 7.01 1.02 2.88 1.84 14.34 14.56 3.79 29.83 2.39 8.17 6.53 2.40 1.76 Total 1,011,336 100.0 1,174,664 100.0 1,291,851 100.0 1,321,4791 100.00 pendulum swung again, and by the end of the year there was a surplus of fiber for the United Kingdom and a short- age in the grades for the United Btates. The quality of abaca fiber produced in the Philippines responds, in general, to the demands of the United States and the United Kingdom. Later we shall see whether these demands can be anticipated. Price The average price received for all grades of abaca fiber may best be discussed from a historic standpoint. Chart VI shows graphically the history of abaca exports and prices since 1877. From the heavy smoothed line it may be seen (Fig. I) that the export of abaca has steadily increased, the extremes being 37,000,000 kilos in 1877 and 175,000,000 kilos in 1912. From 1 Not including 32,799 bales of Tagal braid. ABACA AS AN EXPOKT CKOP 93 Figure II it may be seen that in the period 1877-1895 the price rose and fell twice without great fluctuation; that in the period 1899-1911 it again rose and fell; that since 1911 it has reached its highest point. It will be noted, also, that the drop in price from 1907 to 1911 was particularly rapid. This decrease in the price of abaca had great influence on the industry in the Philippines CHART VI. PHILIPPINE ABACA EXPORTS Census and Customs Statistics and warrants careful consideration. Such a drop may have been the result of several conditions, of which the following are probably the most important : (1) the competition of agave fibers, of which there had been a large production and which are always cheaper than abaca, with the lower grades of Manila hemp ; (2) overproduction of abaca fiber combined with a general falling off in demand, the result of lessened industrial activity in Europe and America; (3) a buying monopoly either in the Philippines or in the United States and Europe, or in both. 94 ECONOMIC CONDITIONS As has been previously stated, prices obtained for the lower and the higher grades of abaca in the early years of American occupation were such as to encourage the produc- tion of lower grades. Consequently the standard of produc- tion was continually lowered through neglect of the fields, the use of serrated knives, and poor curing. The fiber thus produced was not superior to sisal, henequen, Mauritius hemp, and New Zealand hemp, and its price was con- sequently reduced to that of these cheaper materials. Although not so much affected, the higher grades of abaca fiber also brought a lower price in the world's market. This s s? ABACA Relative Increase and Decrease of Export and Price /9 , 5,^- ^ ■< CHART VII cannot be explained by competition, since no other fiber used in making rope equals the best abaca. Again, on Chart VI it will be noted that in the period 1906-1909 the rapid decrease in the price of abaca is coincident with a rapid increase in its export. For the purpose of comparing other periods in the history of abaca, the lines showing relative increase and decrease in export and price have been placed together in Chart VII, and periods in this history have been indicated by rectangles.^ In rectangle 1 the broken line, which indicates the price of abaca, and the unbroken line, which represents the export of abaca, increase in about the same proportion. In rectangle 2, although there is an increase in the amount of abaca exported, there is a fall in the price. On the other hand, in rectangle 3 the decrease in the amount of abaca exported is accompanied by an increase in the price. In rectangle 4 1 These lines are drawn to a logarithmic scale. ABACA AS AN EXPORT CROP 95 there is a marked rise in the amount exported, and a marked fall in price. No figures are available for war times, but it is evident that the world's markets were undersupplied. Hence in the years 1899-1904, years of great prosperity in the United States and Europe, increase in the exports of abaca are accompanied by increase in price (rectangle 5). After this period there is again (rectangle 6) a decrease in the amount of abaca exported, probably due to the drought of 1903, while prices still continue to rise. Rectangle 7 shows another great increase in exports, which are again accompanied by a marked fall in the price. From this comparison of relative increase and decrease in price and export, it would seem probable that the fall in price during the period of 1906-1911 was due, to a considerable degree, to the correspondingly large increase in the production and exports during that time. This increased production was caused by large plantings (beginning with the years 1902-1906), which in turn had been brought about by the high prices and profits prevailing at that time. In 1907 there were panicky conditions in Europe and the United States, and industrial affairs were weak for a number of years. In 1908-1909 there was a reoccurrence of panicky conditions. At such times those industries in which much abaca is used, particularly the engineering industries, are most seriously affected. Hence it is probable that the fall in price of abaca from 1907 to 1911 resulted from overproduction and the general weak condition of industrial affairs.^ The low prices which abaca fiber was bringing greatly re- duced the amount of stripping from the old plantings. During drought the growth of abaca stops, and no petioles mature for stripping. Some plantations were almost destroyed in the drought of 1911-1912; in others it was impossible to strip fiber for several months. A decided decrease in the supply of abaca fiber resulted, as will be noted in the exports for 1913 and 1914. But in 1912 the Philippines began to feel the 1 Such cycles occur with all commercially well-established products. 96 ECONOMIC CONDITIONS quickening pulse of industry in Europe and America in increased demand for abaca fiber. If prices had not risen, enough fiber would not have been produced to meet this demand. Even if buying firms were in agreement, they would have been compelled to raise their buying price to the pro- ducers. In the space of a few weeks prices rose to the point at which they had been in 1907, an increase of one hundred per cent and more. These facts are shown in rectangle 8. By 1915 the effects of the drought had disappeared, and in response to high prices the stripping of abaca was everywhere resumed. In 1917 exports increased to 170,000,000 kilos, and in spite of extremely high prices in 1918 remained at that level. The maximum production from available abaca plants in 1918 was evidently, therefore, 170,000,000 kilos. The very much greater proportional increase in the price of abaca over the production of the fiber is seen in rectangle 9, an increase due to the great demand for the fiber for war needs in the Allied countries. With the end of the war the war's demand for abaca ceased, and the large stocks of abaca fiber on hand in the United States, the disorganization of industry in Europe, and the lack of transportation resulted in another of the periodic depres- sions in the abaca industry. The demand for abaca fiber weak- ened and prices broke. In July, 1919, they had fallen more than fifty per cent, to about P0.40 per kilo, which was about the current price in 1916, before the war prices became effec- tive. Another reason for the lack of demand for abaca was the failure of the government sisal monopoly in Mexico ; it caused a large quantity of sisal fiber, which competes with the lower grades of Manila hemp, to be dumped on the market in the United States at a very low figure. All these conditions resulted in a serious reduction in the exports of abaca, the accumulation of the fiber in the Philippines, arid a falling off in the amount of fiber stripped, especially in the regions where high wages and transportation charges left little or no margin of profit; laborers working on shares found that they could ABACA AS AN EXPORT CROP 97 not earn sufficient wages, and planted food crops or engaged in more remunerative industries. As to a buying monopoly, nothing definite is known, al- though it has often been stated that a monopoly, controlling both the Philippine and the foreign market, exists in the abaca trade. It is obvious that such a monopoly could easily be established, since the industry is centered in the Philippines and practically in two ports, Manila and Cebu, and almost the whole product is sent to London and New York. More- over, the bulk of the product goes to only a few manu- facturers of rope. It is known that stagnation in the domestic hemp market results from the failure of these concerns to buy (usually because they are stocked up). The competition be- tween the United States and the United Kingdom would tend to prevent a buying monopoly. Problems to be Solved The problems of the abaca industry are as follows : 1. To maintain the grade of Manila hemp. It is doubtful whether the Daet grades can be used to advantage for cord- age purposes, except perhaps as a mixture with the higher grades. There can be no doubt that the production of this type of fiber has hurt the reputation of our abaca, and for this and local economic reasons its production should be dis- couraged. During March and April of 1915 a worse type of stringy product appeared on the local market, coming from the Buhi district of South Camarines. The chief of the fiber division of the Bureau of Agriculture immediately instructed all fiber inspectors in southern Luzon not to grade it under any standard, even under the Daet type. This prompt action resulted in its disappearance from the market in less than two months after its detection. 2. To meet the market demands for the United States and the United Kingdom. This can be done if the Bureau of Agricul- ture interprets the statistics of production and export, and 98 ECONOMIC CONDITIONS anticipates the relative demands for higher and lower grades. Such action will prevent the overproduction of any grades, and insure the production of grades that will be in demand by the time they reach the export markets. The Bureau is in a position to advise growers and strippers, through its force of inspectors. The production of different qualities of hemp is easily adjusted by varying the kind of knife used and the pressure exerted on it. The greater the pressure, the higher is the grade of fiber produced. With a given pressure a smooth- edged knife will produce the highest-grade fiber ; a knife with thirty serrations to the inch, almost the same grade ; a knife with fifteen serrations to the inch, L grade ; a knife with twelve serrations to the inch, DL grade. Hence it is com- paratively easy for a stripper to lower or raise the grade and quality of his product, if he is once convinced that demand and price will make it remunerative for him to do so. The production of different grades can also be regulated through the larger owners and the graders, balers, and merchants, who can adjust prices to stimulate the production of the grades desired and store fiber against probable chauge in the market. 3. To protect the small producer from the middlemen. This is being done by displaying samples of the different grades in public places as well as in establishments for grading and baling, and by furnishing current market prices to be posted by public officials. Before the government grading went into effect, the different hemp buyers had different standards of grades and different nomenclatures for them ; the small pro- ducer could not tell which merchant would give him the highest price for his fiber. Now the gradings are standardized and published, and the small producer is in a position to know approximately what the grade of his fiber should be, and the price he should receive for it. 4. To equalize the demand for abaca. The history of abaca is one of great fluctuations in price, demand, output, and ex- port. If the government could advise planters concerning the probable general demands of the United Kingdom and the ABACA AS AN EXPOKT CROP United States, and if it could maintain a system of warehouses in which the fiber could be stored when the market is dull, it might stabilize the industry and permit the continuous stripping of the fiber to be carried on at a reasonable price. 5. To secure ma- chinery for strip- ping. In the periods when abaca fiber brings a high price, not enough labor- ers can be secured to strip it. In the periods when the fiber brings a low price, the laborers either refuse to work for the small wages received, or insist on having a larger part of the product. The in- vention of satisfac- tory stripping ma- chines would solve the labor problem. Such machines as these have long been in use in the production of the sisal fiber. In the last fifteen years numerous abaca-stripping machines have been invented and experimented with in the Philippines. As yet, however, none of them have been successful enough to be generally adopted ; they do not turn out a good grade of fiber, or do not turn it out rapidly enough; or they are so large that they require a great deal of power to run them, and are so heavy that they cannot be A SIMPLE MECHANICAL ABACA STRIPPER 100 ECONOMIC CONDITIOKS transported, which causes the additional expense of carrying the petioles to a central point. In hilly or broken coun- try, or in regions of small, scattered plantations, only the smallest machinery would be practicable. Successful strip- ping machines of large capacity might ultimately cause over- production and lower the price ; they would shut out small producers, and encourage large plantations, a result not de- sh-able from the point of view of political economy. Future of the Industry It has been stated that a decrease in the price of abaca greatly affects the industry. From Chart VI it will be seen that the general export price fell from 37.6 centavos in 1907 to 19.5 centavos in 1911, a drop of almost fifty per cent, which especially affected the lower grades. As a result, production was greatly curtailed in regions such as Albay, where the lower grades of fiber are produced, and in the interior of Samar and in the Bukidnori country, where the cost of transportation to the coast is an important factor. In the lowland regions producing a high-grade fiber, such as the lowlands of Samar, Leyte, and Davao, the drop was not felt so keenly. In many localities in which abaca could no longer be produced at a profit, the fields were allowed to grow up in jungle. In some places abaca was grubbed up, and the land planted with coco- nuts. If the rise in price of abaca had not given it a new lease of life, the industry would undoubtedly have died out in districts producing a low-grade fiber. As it happened, the rise in price which occurred in 1912 encouraged owners to renew their activity. In many places, however, they were unable, because of the lack of labor, to take advantage of the higher prices. As has been stated, strippers were dependent on abaca fiber for their living. They grew no food crops about their houses ; consequently, when the price of the fiber dropped below the point at which they were warranted in obtaining it, these men left the lates and sought Hand Stripping A Strtppi.ng Machine STRIPPING ABACA Photo by Bureau of Agriculture 1.02 , ECONOMIC CONDITIONS work in other agricultural occupations, especially in the culti- vation of rice. Sometimes they remained in the same locality, but just as often they went to other places. Thus, when their services were agam needed, many of them were no longer available. The increase in price and demand for abaca during the World War accentuated the shortage of labor and caused a demand for strippers and helpers which resulted m a substantial increase in wages, and, in some districts, the importation of labor. The world's consumption of Manila hemp in 1918 was about 1,000,000 bales. This was abnormal, and was due to the war. In 1919 approximately 800,000 bales were consumed, or 200,000 bales fewer than in 1918. This reduction in consumption caused the stock in the Islands to accumulate. However, typhoons and drought in 1918-1919 did consid- erable damage to existing plantations. The combination of events brought about the immediate curtailment of produc- tion, which will undoubtedly be felt for a few years. It was estimated that the production of abaca in 1919 would be twenty-five per cent less than in 1918. It was probable, there- fore, that a decrease in the production of hemp, such as is indicated on Chart VII for the years 1903-1906, 1909-1911, and 1912-1914, would again occur. Such decreases were brought about by similar conditions, that is, by overproduc- tion of fiber, which resulted in a temporary lack of demand, a consequent fall of price, and discouragement to producers and strippers, and by climatic conditions which wrought destruction in the hemp fields. The prices of hemp in the middle of 1919 were higher than those for 1912-1916 ; nevertheless, they were not profitable to the planters and strippers because the cost of production was so much greater than in the period before the war. In- deed, it will be impossible for the price of hemp to return to its former level ; a higher level of prices has been established by the higher cost of production. This new level will not be constant. Prices in the middle of the year 1919 probably ABACA AS AN EXPORT CROP 103 indicated the lowest point. As soon as industrial conditions in Europe and America adjust themselves, there will be a period of industrial revival, and with it a heavy demand for Manila hemp. This will cause fluctuations in prices, such as have occurred throughout the history of the fiber. The prices of abaca fiber will always be governed by the world's demand and the local supply, and will rise and fall with the impulse of industry in Europe and America, and with local conditions of weather and of labor. With high prices even the careless owner and producer of inferior fiber will make money. With a low market he will be forced out o^ producing, while the careful, systematic planter and producer of higher grades will still find abaca a profitable crop. The high prices of 1918 did not accrue to the producers of abaca alone. Wages of hemp strippers increased from fifty to more than one hundred per cent. The cost of carrying hemp from Legaspi to Manila rose in the same proportions. Every item for maintaining the plantations was increased. The value of the hemp exported in 1918 was Pll6,000,000. In 1914 the same amount of hemp would have brought only P33,000,000. The difference, P83,000,000, was distributed among the persons and factors that had to do with the pro- duction. A considerable part of this increased cost of produc- tion is permanent, and a higher level of price for abaca fiber may therefore be expected. New Uses of Abaca Up to the last few years nearly all the abaca exported from the Philippines has been used in manufacturing rope, for which purpose the best fiber has no substitute. Since historic times the Filipinos have woven from abaca fiber a cloth known as sinamay, although it is probable that the amount so used in the Philippines has never been more than ten per cent of the total production. Within the last few years, however, other uses have been found for the fiber. The knotted yam 104 ECONOMIC CONDITIONS used in the production of sinamay has been exported in increasing quantities to be made into hat braids and coarse material for stiff enmg clothes. In the year 1918 the value of this export amounted to more than Fl, 500,000. The highest grades of fiber, grades AA to EE, are shipped to Japan to be knotted and reexported as hat braid to the United States. In 1918 the export of this hemp to Japan was worth P6,000,000; in 1917 it was worth F8,000,000 (grades A, B, C, and D-E). For many years a strong wrapping paper has been manu- factured from old rope. When the price of paper is high, the waste from abaca stripping has been exported for this purpose ; with the low price of the fiber there was established, in one prov- ince, a factory which prepared and dried the whole petiole for shipment to the United States, where it was made into paper. Recently lupis (strips of the fiber with the pulp attached) has received a considerable amount of attention in local handi- craft work. It is probable that these new uses for abaca fiber are but the beginnings. Its strength and its resistance to water com- mend it for use in objects of art as much as for rope making ; the beautiful hues to which it can be dyed, and its luster, make it an excellent material for such purposes. SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text 1. The stripping of abaca, including a description of the prep- aration of the strips for the knife, of the knife and lever, of smooth and serrated knives, and of curing and baling. 2. Why labor is the chief factor in the production of abaca. 3. Judging from the respective shares of the laborers, compare the labor value of rice and abaca fiber. 4. Could the abaca laborer be made less dependent on the production of the fiber and the price of abaca ?. 5. Would it be economically of advantage to him and to the community ? ABACA AS AN EXPORT CROP 105 6. What must be the charaxiteristics of a successful abaca- stripping machine ? 7. What would the effect of a successful stripping machinery be on {a) the small plots of abaca ; {b) on the status of the laborer in abaca ; (c) on the planting and production of abaca ; (d) on the price of abaca fiber ? 8. What determines the average quality of abaca? 9. In the long run, what determines the average price of Manila hemp ? 10. What determines the price at any given time ? Explain your statements by referring to Charts VI and VII. 11. If you had a sum of money to invest, would you invest it in an abaca plantation ? Why ? 12. Make a chart showing the value of exports of Manila hemp since 1899. 13. Point out the periods of large exports and high prices, large exports and low prices, small exports and high prices. Explain the conditions that brought them about. 14. Why is it that after destructive typhoons in abaca regions, causing the blowing down of stalks, an unusual percentage of grades for the United Kingdom is produced? Suggestions for the Study of Local Conditions in Abaca Regions 1. How abaca fiber is brought from outlying districts to grad- ing centers. 2. How local conditions agree with and differ from those described in the text. Suggestions for Reports from References, especially FROM Commercial Geographies 1. From the latest " Statistics on Principal Crops of the Philippine Islands " prepare a chart representing the amount of abaca production in the Philippines. 2. Divide it into sections representing the production of the chief producing provinces. 3. Compare these. 4. Using these data and referring to Miller's " Commercial Geography " and Miller and Policy's " Intermediate Geography," prepare a map of the Philippines showing the abaca- producing regions. 5. Explain the conditions of soil and weather that make abaca production possible in each. 106 ECONOMIC CONDITIONS 6. Secure the necessary data from the latest annual report of the Collector of Customs, and bring Chart VI down to the present. Comment on these new figures. 7. From the Fhilipplne Agi'kulture Eevleiv, Vol. XI, No. 3: In the abaca districts, (a) a description of the standard grades of Manila hemp ; (b) the grading, baling, and inspection of abaca fiber. In the maguey districts, (a) a description of the standard grades of maguey and sisal; (b) the grading, baling, and inspection of maguey fiber. 8. A comparison between the cultivation, marketing, and manu- facturing of abaca in the Philippines and cotton in the United States. (Brigham, pages 22-39.) 9. Some attempts to solve the abacarstripping problem ; their results. 10. The structural and economic classification of fiber. 11. How various fibers are obtained. 12. Machines that have been adapted to the processes. (Miller.) 13. The cordage fibers of the world. 14. Max, where grown and used (illustrated with map). 15. The relation of flax and other cordage fibers to abaca. (Miller ; Finch and Baker.) Selections on the Theory of Economics to be applied TO THE Material in the Chapter 1. Market and normal values. (Bullock, pages 98-115.) 2. Explain the difference between economics and political economy. CHAPTER VI COPEA AND COCONUT OIL AS EXPORT CROPS Historical 1900 1902 1904 190<5 1908 1910 THE WORLD'S COPBA EXPORT In Thocsands op Tons 000 Dropped ^Philippine sliare Statistics from L.I'I8eHEL& CO iiondon Before the arrival of Europeans in the Orient the coconut palm was a most important plant; the meat, oil, sap, fiber, and other parts and j)roducts of the tree were already being utilized. It is evident that coconuts were a large crop in Ceylon long before the days of the Portuguese, for on their arrival they noted that the southeast coast of the island was a vast coconut grove. The Dutch gave great impetus to the coconut industry in their Eastern colonies by encouraging the production and export of coir fiber. ^ As late as the first quarter of the nineteenth century Europe knew little of the value and uses of coconut products. About that time a certain captain of Aberdeen took home a cargo of oil, but had considerable difficulty in disposing of it. It was finally bought by a woolen mill and utilized as lubricating oil. ^ i y^2M^ CHAKT VIII i J. Ferguson's " Coconut Planters' Manual.' 107 108 ECONOMIC CONDITIONS The recognition of the properties of coconut oil, which has placed it among the oils most highly valued for human consumption, did not come about until the latter part of the nineteenth century. For manufacturing purposes coconut oil was first utilized in large quantities for high-grade soaps and candles. Because of the advancing price of animal fats (but- ter and lard) there has been a growing tendency to substitute products from vegetable oils. Cottonseed and peanut oil are used to a large extent, but coconut oil, because of all oils 1896 1898 1900 1902 1904 1906 1908 1910 1912 ^^ ^lOSt cloSCly rCSemblCS butter in its composition, and because it has a high melting point, is the most suitable for the purpose. Various persons and coun- tries claim the credit for beginning the manufacture of imitation butter and lard from coconut oil. Before the World War the most important producers and consumers were Germany, France, and England. In Germany millions of pesos were invested in the industry. Not only was the consumption of this product increasing in these countries, but its manufac- ture and its use were spreading in other parts of Europe and in America. Meanwhile increased amounts of oil had been utilized in making soap and candles, the large consumption of whole nuts had continued, and the production of desic- cated coconut had increased. The adjustment of demand and supply in the product of a long-time crop like copra covers a long period. New plantings of coconut palms produce full yields only after seven years of growth. Thus the output of copra had not kept pace with the increased demand, and until 1914 prices had continued to rise. (See Chart XII.) CHART IX. PERCENTAGE OF THE WORLD'S COPRA SHIPMENTS FROM THE PHILIPPINES Statistics from L. Fischel & Co., London CHART X. PHILIPPINE COCONUT EXPORTS IN MILLIONS OF PESOS Customs Statistics. 110 ECONOMIC CONDITIONS Philippine Pre-Wak Production The production of coconuts before the World War is dis- cussed in terms of copra, since it was this dried meat of the nut that was exported to the oil-consuming countries. The Philippines then exported more copra than any other country. Chart VIII shows graphically the gradual increase of the world's copra export and the portion of it which came from the Philippines. Chart IX shows that on the average the Islands had usually been credited with about one fourth of the world's output. The exports from Java had advanced relatively more and from Singapore relatively less than from the Philippines. In general, therefore, it may be stated that the Philippines were keeping their position as the chief exporter of copra. Statistics given thus far have dealt only with the amount of copra ; but if the value of this export is considered, its im- portance is even greater. This is shown in Chart X. Chart XI shows the varying degrees in which sugar, abaca, tobacco, and copra have entered the export trade of the Philippines. Al- though in 1899 copra was the least important of the four staple Philippine export crops, in 1911 it approached abaca in value. ^ This advance came about not only through greatly increased amounts of copra exported, but through its advancing price, which in the period under discussion increased about one hundred per cent (see Chart XII). Philippine Post-War Production After the drought of 1912 (see Chart XIII) the amount of copra exported from the Philippines fell off about forty-five per cent, and before the trees recovered and production became normal, the World War began. The Islands had been sending 1 Figures for abaca do not include knotted abaca. Since eight ninths of the cost of knotted abaca is due to the labor of tying it, the relative positions of abaca exports and copra exports would be little changed by adding the value of fiber only. COPRA AS AN EXPORT CROP 111 their copra to Europe, mostly to France. As shipping became scarcer, the copra began piUng up in the warehouses of Manila and Cebu. The demand for copra in Europe had even in- creased, but it was possible to ship only a part of our product to the market. As local stocks increased, the price decreased (Chart XII). Finally two outlets for our copra w^ere found, the one (1) directly, the other (2) indirectly, into the United States : 1. In 1912 the United States imported about 21,000,000 tons of copra from the Philippines, which was about fifteen per cent of our total export of copra; in 1917 it imported 68,000,000 tons, which was more than seventy per cent of our copra exports; and in 1918 it imported our entire copra exports of more than 55,000,000 tons. The destination of Philippine copra was now changed from Europe to America. 2. Just before the World War coconut-oil factories were established in the Philippines to supply the domestic market and to export oil to China. The oil expressed from a ton of copra takes up only a small part of the space that the copra fills. While ships were too scarce and freights too high for copra, it was possible to ship the oil. Tanks and casks were made available, and more machinery was imported, with the result that while copra exports diminished, oil exports in- creased. In 1912 the coconut oil exported was worth only P80 and the copra more than p28,000,000; in 1918 the coconut oil exported was worth P63,300,000 and the copra Pl0,300,000. Practically all the oil was shipped to the United States. In other words, the coconut industry in the Philippines was saved from ruin for the period of the war by developing the United States market for both copra and oil. The unusually favorable results for the Islands can be seen in Chart X. In 1918 the value of our coconut exports was again greater than that of any other product except hemp. 112 ECONOMIC CONDITIONS Increase in Yield Although the coconut industry is a most flourishing one in the Philippines, certain conditions which are liable to affect it adversely should be understood. Mr. O. W. Barrett, formerly of the Bureau of Agriculture, estimated that the coconut production in the Philippines could be increased one fourth without increasing the area of production, if only the proper methods of cultivation should be followed.^ ^ CO in t- O O <=> C3 00 00 CO 00 00 03 Oi eo lO t- » H ; H ; -t »■ H ;■ H r 'A ^ H ;: H y H r. H y- H ; 4 ; -; ;: 4 ;: 4 ; -t ^ H r -t r H Sug ' 1 70 60 Abaca. _ Coconut — — ^ ._ Tobacco. h + + + + ,-• r-^x ,'*"' V 40 30 20 10 ..••■ [••••••• .- i 1 \ .••■ ■.l\ r \ r' ^ > \ / "N t^. ....•■" •V A. '■•. ^ \ t •*^« J '. 1 •t y. N V/ V'. / A ^ i**^ 's >• *■*. -•*!. If'v x«»-. , ,,J ^>_ ■/-^ /■ •;■; V v." *v, / >^ m ^ -m HV A Philippine Smoky Open Kiln CUEING COPRA 118 ECONOMIC CONDITIONS be produced iii commercial driers only, in which the moisture is evaporated by hot air or perhaps by steam. Such machines are used in parts of the PhiHppines, such as Laguna and Tayabas, but are not yet entirely successful. At the present time Philippine copra is among the lowest- priced copras in the world's market. The prices it has brought, in comparison with those of other large producing countries, can be seen on Chart XIII. As long as the present great demand for copra exists, there will be a good profit in the pro- duction of the inferior prod- uct now exported from the Philippines, although to-day more than fourteen per cent of the possible value of Philippine copra is lost by poor curing (see Chart XIV). But when the market is satisfied, prices will decline, and the lower grades will be more affected, just as the lower grades of Manila hemp bring proportionally lower prices when there is a general decline of that staple. The problem, therefore, is not only to increase the value of the present copra export of the Philippines by producing a clean white copra of low-water content (instead of a product which easily molds), but to anticipate the production of a higher grade of copra in other countries, which will force down the price of a low-grade Philippine product. Such an increase in quality will result from the use of mature nuts and the introduction of artificial driers. The use of ripe nuts CHART XrV. VALUE OF PHILIPPINE COPRA EXPORTS, lyil Data from L. Fischel & Co., London COPKA AS AN EXPORT CROP 119 may be brought about through the education of the coconut growers, or through government regulation.^ Large driers will be procured most readily by the owners of large planta- tions, although they can be erected cooperatively by smaller growers or by private individuals to whom local growers sell their coconuts. Such discussion does not take into account any improve- ment in the present methods of curing. In many districts the system of buying copra offers no inducement to the maker to produce a better quality, since all grades sell at the same price. Moreover, the continued advances of money compel the small producers to sell their product to certain dealers. This results in a lack both of competition and of incentive to produce the best copra. Changed conditions may produce copra of a higher grade. Domestic Consumption The output of copra in the Philippines depends in no small measure on the production of tuba. The owners of Visayan groves, particularly those in localities not connected with the market by reasonably cheap transportation, often find it more profitable to produce tuba for local consumption than to grow copra for export. To a considerable extent this condition is regulated by the price of copra ; for when the price rises, the tendency is to allow flower stalks to yield nuts rather than sap. The local use of the coconuts themselves is rather large. In several localities (for instance, in Ilocos Sur and parts of 1 On the island of Cagayan de Sulu an American trader and planter entered into an agreement with the Chinese traders for the purpose of encouraging the production of better-grade copra. By this agreement the producers had to chop up their copra in the presence of the buyer. If it were shown to be inefficiently cured, made of immature nuts, or smoked, it was not bought. If a Chinaman violated the agreement, he paid a forfeit. As a result, the producers used only matured nuts, and turned out a good grade of sundried copra, whereas on the neighboring islands the lowest grade of smoked copra was brought to market (from the report on the Sulu district, by H. C. Stanton). 120 ECONOMIC CONDITIONS Union Province) the whole crop of nuts is, as a rule, used locally or exported to other provinces for culinary purposes. Coconut oil is the fat which enters to the greatest extent into the diet of the Filipinos ; it is also employed locally for many other purposes. The value of oil in proportion to its bulk is much greater than that of copra, and oil is often produced in regions remote from a copra market, since the cost of trans- porting it is proportionally less than the cost of transporting copra. In a few localities from which transportation is dear the product of the coconut palm is reduced to alcohol by distilling the tuba. As such regions are tapped by systems of roads and railroads, the local production of oil and alcohol decreases, and copra is made instead. From 1910 to 1917 the amount of native oil produced declined from 7,000,000 liters to 2,600,000 liters, the decline being due to the exten- sion of roads and railroads in southern Luzon and the general high price of copra. The large plantings of new coconut groves are taking hun- dreds of thousands of nuts which would otherwise be made into copra, and the crop of a few regions in the neighborhood of districts where extensive new plantings are being made is sold almost entirely for seed. Future of the Industry In looking to the future of coconut oil we must first con- sider the possibility of competition. At the present time coco- nut oil is probably more used than any other. Increased demand has greatly increased the price, and consumers will naturally look for cheaper oils to take its place. Of these there are at present only two : the palm oil of Africa, which is not suitable for edible purposes ; and the soya-bean oil of China and Japan, which, though cheap and good, is not so suitable for artificial butters and lards as coconut oil. We are therefore safe in stating that at the present time no vege- table oil is known which can compete with coconut oil. The COPRA AS AN EXPORT CROP 121 production of synthetic oil is so improbable as hardly to merit consideration. The whole question of the future of the coco- nut industry can therefore be limited to a discussion of copra and oil. Chart XII shows the increase in the price of Philip- pine copra since 1899. Whether the high price now obtained for copra will continue depends on two things : the demand in Europe and America for products of coconut oil ; the pro- duction of coconuts. If the two keep pace, the price will continue at its present high point. If the demand increases in greater proportion than the crop of nuts, the price will rise still higher. If the output increases faster than the demand, the price will fall. According to the present uses of coconut oil, and the wider appreciation of its products, the demand will greatly increase within the next few years, especially in Europe ; the price will probably rise in the immediate future. On the other hand, millions of new palms have been planted in the tropics, and soon there will be a great increase in the amount of copra produced, which will probably bring the price down again. But even with greatly increased production it is probable th-at for many years to come copra will be one of the most profitable crops of the Philippines. New plantations set out several years ago by farsighted individuals are now begin- ning to bear. Each year finds a larger planting of new palms, and interest in the industry is increasing constantly. With better means of transportation new areas suitable to the coco- nut are being made available. At the present time only a fraction of the coconut lands in the Philippines are utilized. Mindanao contains thousands of hectares of such land. The Bondoc Peninsula may become as great a coconut grove as the region of Tayabas round Mount Banahao. Palawan, the high- lands of Cavite and Laguna, Sorsogon, Mindoro, Panay, the Sulu Archipelago, and numerous smaller areas offer oppor- tunities for coconut planting. Better methods of -cultivating the tree and of making copra are constantly being used throughout the Islands. Groves in Tayabas which were 122 ECONOMIC CONDITIONS formerly littered with rubbish and overgrown with under- brush now present clean, straight rows of palms. Here and there is observed the tendency to use ripe nuts rather than to cut nuts from the tree. Artificial driers are now being introduced. In many coconut districts there seems to be a desire to learn better methods. Copra or Oil Several million pesos are invested in coconut oil mills in the Philippines. In October, 1918, there were eighteen mills in the Philippines equipped to produce nearly a thousand tons of oil a day. However, they were producing only about half that amount, for the number of expellers had so increased that the domestic supply of copra did not provide material enough to keep them in operation. In 1918 the Philippines imported copra from Singapore.^ The country has become an exporter of oil instead of an exporter of copra. In general, it is much more desirable for a country to ex- port a product in a manufactured or semimanufactured state than in the raw state. The exportation of oil is more valuable to the Islands than the exportation of copra ; but unless legis- lative restrictions are imposed, the continuance of our expor- tation of coconut oil will depend on competitive conditions, that is, on competition for copra between the mills of Europe, America, and the Philippines. The oil mills of Europe and America will naturally attempt to secure copra from the Phil- ippines, and will offer as high a price as the oil market will allow. The Philippine mills will have to meet this price. Can they do it ? The answer largely depends on (1) the conditions of transportation, (2) copra cake, (3) the markets for Phil- ippine coconut oil, and (4) the conditions of labor and power in the Philippines. The situation may be expressed as follows, in terms of conditions favorable and unfavorable to the pro- duction of coconut oil in the Philippines : 1 In the first six months of 1919 the Philippines exported copra to the vahie of P 555,386 ; the imports amounted to more than P 3,500,000. COPRA AS AN EXPORT CROP 123 Unfavorable Favorable Loss of oil in barrels, or cost Loss of oil in transit through of maintaining tank steamers and decomposition of copra, tank terminals. Oil taking less space than copra Loss in value of copra cake. in proportion to its value. Cost of power. Labor. Copra cake is a valuable by-product of the mills in Europe and America, and offsets the freight on the copra. To Philip- pine mills it has been of so little value that nearly all of it has been burned for fuel. The question of freight rates is the determining factor. The lower the rates, the less advantage oil has over copra. There is a chance of disaster to the oil industry in the Phil- ippines when freights fall. The small and the poorly managed mills may be forced out of production. The larger and the better-managed mills will have a better chance, especially in the domestic market, in China, and on the Pacific Coast of the United States. Ships traveling from San Francisco to the Orient burn crude oil. When they reach Manila, part of their fuel tanks are empty, and can be filled with coconut oil for the return trip. Tank steamers that bring petroleum to the Orient may take back cargoes of coconut oil. Moreover, as world conditions become adjusted, Philippine oil mills must face competitive conditions so far as labor and power are concerned. In 1919 the situation with regard to power was so acute that mills were obliged to reduce their hours of running, especially in Manila, where most mills are dependent on electricity. The future of the oil industry in the Philippines will there- fore depend largely on the equipment and management of the mills, their facilities for loading oil on steamers in Manila, and the facilities provided by or for them to unload and store oil in the ports of Europe and America. But the future of the coconut regions of the Islands is bright in any case, for prices of coconuts will be high, whether the export takes the form of copra or of oil. 124 ECONOMIC CONDITIONS SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text I. Problems of the coconut industry in the Philippines. 2. If you had a favorable opportunity to buy a coconut grove that would come into bearing three years from now, would you purchase it ? 3. Why does an increase in the price of copra not result in a large immediate increase in the production of copra? 4. Is this true of rice ? Why ? 5. Nevertheless, an immediate increase in the production of copra can be effected by reducing the production of other coconut products. What products are these ? 6. Causes for the general increased demand for copra. 7. What is the comparative quality of Philippine copra ? 8. How may it be improved ? 9. Why were war conditions favorable to the establishment of coconut-oil factories in the Philippines ? 10. You are offered the opportunity of investing in a new coconut-oil factory to be estab- lished in Manila. You are looking for an investment. W^ill you invest in the oil factory ? Why ? II. The relative importance of the four great export crops of the Philippines (based on Chart XI). 12. From Chart XI com- pare the early histories of the hemp and coconut industries. Suggestions for the Study of Local Conditions 1. How the General Order 38 of the Bureau of Agriculture, concerning bud rot, is made effective. 2. The relation of this order to Act 1757. 3. How copra is made. 4. Oil presses. 5. Uses for coconuts. 6. Uses for coconut oil. Suggestions for Reports from References, especially FROM Commercial Geographies 1. From the latest " Statistics on Principal Crops of the Phil- ippine Islands " prepare a chart representing the amount of copra produced in the Philippines. 2. Divide the amount into parts rep- resenting the production of the chief copra-producing provinces. 3. Compare these. 4. Using these data and referring to Miller's " Commercial Geography" and Miller and Policy's '' Intermediate COPRA AS AN EXPORT CROP 125 Geography," prepare a map of the Philippine Islands which will indicate the copra-producing regions. 5. Explain why coconuts are not grown extensively in other regions. 6. By comparing the number of planted trees with the number bearing fruit estimate what will be the production of copra in the Islands seven years hence. 7. Make a chart repre- senting the total number of trees planted in the Philippines, and divide it into sections representing the trees planted in the prin- cipal provinces. 8. Will there be any important changes in the proportion of copra produced in the various provinces seven years from now ? 9. What provinces could increase their production by decreasing the local consumption of nuts, oil, and tuba? 10. Secure the necessary data from the latest annual reports of the Collector of Customs, and bring Charts VIII, X, XI, XII down to the present time. 11. Comment on these new figures. 12. Comment on the importation of copra into the Philippines. 13. Where is Philippine copra now sent ? 14. Make a chart show- ing the amounts of copra and oil exported from the Philippines since 1912, and the prices of copra and oil. 15. Make a chart showing the uses of the coconut palm. 16. The difference between oils and fats. 17. The kinds of oils as to source and use. 18. Fixed and volatile oils. (Miller.) 19. The uses of oils, fats, and waxes. 20. The world's produc- tion of copra and the commerce in it. (Miller.) 21. The dairy industry of the world, and its relation to coconut oil. (Miller, and other commercial geographies.) 22. Coconut oil used in imitation lard, salves, lotions, and soap. 23. Vegetable and animal oils and fats. 24. Where produced and used (illustrated with maps). 25. International trade. 26. The substitution of one for the other. 27. The oil industry of Mar- seilles, France. 28. Uses for coconut-oil cake. (Miller; Finch and Baker; and other commercial geographies.) 29. The manufacture and uses of desiccated coconut. Selections on the Theory of Econo:mics to be applied TO the Material in the Chapter 1. The laws of consumption. (Bullock, pages 13-21.) 2. The law of economy in organization. (Bullock, pages 82-91.) 3. The laws of supply. (Bullock, pages 91-96.) CHAPTER YII SUGAR AS AN EXPOET CROP^ Early History Sugar cane is not known as a wild plant, but its early home was probably in Bengal or Cochin China ; botanic, linguistic, and historic facts support this theory. Sugar was first men- tioned ^ in Chinese writings of the second century before Christ. In the eighty-sixth year of the Christian Era the kingdom of Funan sent a tribute of sugar to an emperor of the powerful Han dynasty then ruling China. In the seventh century the Chinese emperor Taitsong, carrying out a well-defined policy for increasing the prosperity of the realm, sent a man to the Indian province of Bahur to study the methods of sugar making. The embassy seems to have been successful ; for when Marco Polo visited China, six centuries later, he found that large quantities of sugar were being produced. The in- dustry flourished in other parts of the East also. Vasco da Gama, visiting Calicut in 1498, found the sugar trade of that port worthy of special mention. While the sugar industry was thus becoming well developed in the East, a definite knowledge of the product was advanc- ing westward, largely through the agency of Greeks, Saracens, and Venetians. In 327 b. c. Alexander the Great invaded India, and is said '' to have feasted on solid honey, not made by bees, which was procured from the stem of a reed." The Greeks called the new substance " Indian salt." According to Seneca and Pliny the Elder the fame of both India and Arabia as producers of sugar was well established in Europe by the first century of the Christian Era, although but 1 By Charles H. Storms. 2 W. C. Stubbs's "Sugar Cane." 126 SUGAR AS AN EXPOKT CROP 127 few Europeans had at that time ever tasted the substance. The Saracens carried the cane with them in their advance across northern Africa. Through the Saracens the Venetians became interested in sugar as a commercial product. These two peoples introduced the culture into Arabia, Egypt, Nubia, Ethiopia, Sicily, and Spain. By the end of the thirteenth cen- tury the sugar industry was well known in China and India, and in the countries surrounding the Mediterranean Sea. Sugar was not unknown in England, but was still regarded somewhat as a curiosity. In the Middle Ages the city of Venice, then the commercial leader of the world, became the center of the sugar industry. The Venetians carried the sugar trade into England. In 1319 was recorded the first sugar trade in the English market, in which a hundred thousand pounds of sugar was exchanged for wool. At that time sugar was valued in Scotland at from seventy-five to eighty centavos a pound.^ In 1912 the price had fallen to eight or ten centavos a pound. Even at this early age the Venetians recognized the possi- ble advantages to be derived from improved methods of pro- duction, and rich prizes were offered to stimulate inventive ability. The Venetian inventor of the art of making loaf sugar received a reward of a hundred thousand crowns. In 1503 the Venetians introduced into Europe the art of refining sugar. Thus during a period of fifteen hundred years the Indians, Chinese, Saracens, and Venetians each played an important part in the advancement of the sugar industry. The industry then fell into the hands of the rising powers of Spain and Por- tugal. In 1425 Dom Henry of Portugal sent seed canes to the Canary and Madeira islands. After the discovery of Amer- ica, Peter Etienza sent cuttings to the island of Santo Domingo, from which cane was carried to Mexico, South America, and northward into the newly opened territory of Louisiana. For three hundred years, however, the Canary and Madeira islands furnished a large part of the sugar supply of Europe. 1 "Sugar in Louisiana," Century Magazine.Yol. XXXV, November, 1887. 128 ECONOMIC CONDITIONS Until the latter part of the sixteenth century sugar was used principally as a medicine. The demand was therefore limited, but in 1575 it was greatly increased by the intro- duction of coffee, and in 1650 by the introduction of tea. The failure of the mines in the New World had caused a large number of disappointed seekers after wealth to turn to other enterprises, of which sugar production was by far the most attractive. The climate and the soil of the West Indies were known to be well adapted to the growing of sugar cane. Indian slaves were first used for laborers, and then negro slaves were imported ; to quote from Bourne, '' The development of the sugar industry and the growth of slavery were dependent on each other. Each sugar mill, run by horses or mules, required thirty or forty negroes. Each water mill required at least eighty negroes." In 1595 a company contracted with the government of Spain for the exclusive right of impoi'ting slaves into the Antilles for a period of nine years. ^ They paid the govern- ment 900,000 ducats for this monopoly .2 From 1680 to 1786 more than 2,100,000 Africans were imported, largely for use on the plantations. Sugar brought a high price in the European markets, and the trade grew rapidly. The port duties on Haitian sugar alone are said to have built many magnificent buildings in Madrid and Toledo.^ The many European wars of the eighteenth century forced Spain and Portugal into the background among the world powers. England became the mistress of the sea and the leader of the commercial world. The control of the sugar supply of Europe passed from Spain to England, where it was destined to remain until Napoleon should develop plans tO bring about a world-wide distribution of the industry. 1 E. G. Bourne's " Spain in America," p. 273. 2 Ibid. * Freeman and Chandler's " World's Commercial Products," p. 84. SUGAR AS AN EXPORT CROP 129 Beet Sugar and the Bounty System This wide distribution came about through the perfection of a process for extracting the sugar content of beets. Al- though the sugar beet had been known to European farmers for more than two hundred years, a practical method of ex- tracting the sugar was at that time a comparatively recent discovery, and its possibilities were not generally known. ^ The Continental sugar supply was greatly reduced as a result of the Berlin Decree (1805) and the Milan Decree (1807), since they caused the English to blockade the European ports under Napoleon's control. Napoleon planned to supply the consumers of continental Europe with sugar from the sugar beet, and applied the stimulus necessary to insure its cultiva- tion. By Napoleon's orders about eighty thousand acres were planted with beets. The price of sugar in European markets was rapidly advancing. The production of sugar from the beet offered an attractive and lucrative occupation to many of the inhabitants of France and of the German states, and the beet-sugar industry became important in these countries. The overthrow of Napoleon removed the restrictions on trade, and consequently the price of sugar declined to a point at which many of the farmers could not profitably raise beets. A few farmers in France persisted, however, and some French- men continued to manufacture sugar. They were able to com- pete with cane-growing countries because of their improved methods of cultivation and manufacture. The industry was not important, however, and in 1829 a production of only four thousand tons was reported. In 1835 the industry was revived in Germany, and after 1840 made a rapid advance. In 1884 1 In 1590 Oliver des Senes records the introduction of the red beet into Europe ; in 1747 Marggi-af obtained sugar from beets, but at an enormous expense ; in 1797 Achard invented a simpler method of extracting sugar from beets ; in 1805 Baron de Koppy built a factory in Lower Silesia, the annual output of which was to be 525 tons ; in 1810 Achard built a factory, produc- ing muscovado at a cost of Is. 6d. a pound, and white sugar at Is. 8d. a pound (Freeman and Chandler, "The World's Commercial Products," pp. 103-108). 130 ECONOMIC CONDITIONS 1836 1850 1860 1889 1906 TONS 18 16 12 10 the bounty system was adopted by Germany,^ and other coun- tries of contmental Europe quickly followed her example. The plan for encouraging the production of sugar varied somewhat in different countries, but the essential features were the same. The government placed a heavy tax on manufactured sugar ; but if the product was presented for export, this tax was returned and in addition a present was given the grower for each ton ex- ported. Under the French law sugar used at home cost the grower (the taxes included) about F0.17| a pound. Sugar for export cost from P0.076 to P 0.096 a pound because of the rebate.^ The results of the bounty system may be briefly stated. The amount of beet sugar exported was more than doubled in five years. Of the sugar found in the world's markets at that time about three fifths came from the sugar beet. Germany in 1881 pro- duced about 645,000 tons of sugar; in 1885 the yield was 1,150,000 tons. Of still greater importance was the fact that 1 Encyclopaedia Britannica, XXII, 625. 2 Beets producing 7^ per cent of their weight in sugar were taxed at $0.06^ a pound. Beets producing from 7^ to 10^ per cent were taxed at half this rate. Beets producing more than lOJ per cent were taxed at one quarter pf this rate (French law of 1884), CHART XV. AMOUNT OF SUGAR BEETS NECESSARY TO PRODUCE ONE TON OF SUGAR Data from Farmers' Bulletin No. 93 SUGAR AS AN EXPORT CROP 131 world-wide attention was drawn to the beet-sugar industry, and the aid of experts was enHsted in an effort to lower the cost of production. In about fifty years the yield per ton of sugar from beets was advanced from five to twelve or fifteen per cent.^ The use of the diffusion process of extract- ing the sugar assisted materially in securing this result. Per- haps careful seed selection was of even greater importance. The bounty system proved of unexpected assistance to the people of England, because the French and German consumers had to pay about twelve centavos more a pound for sugar than their near neighbors, the English. The latter were quick to use this advantage. The English farmers devoted their lands to the production of fruits and berries, and the capital- ists erected huge factories for canning fruits and manu- facturing jellies, jams, and candies. It is estimated that these factories furnished employment for more than 250,000 people.^ All continental Europe was forced to purchase its sweets from the English. Hence the local consumers in continental Europe had cause for complaint. They had to pay PO.20 a pound for sugar, while across the Channel in England the same article could be purchased for PO.08. The English cane-growing colonies also complained because the bounty-fed sugar had stolen from them the home market. This state of affairs seemed unnatural in every way and could not be indefinitely continued. After a time public opinion outweighed the influence of the beet growers and the English manufacturers of sugared products. In 1892 England called 1 In 1836 it took 18 T. beets for 1 T. sugar. In 1850 it took 13.8 T. beets for 1 T. sugar. In 1860 it took 12.7 T. beets for 1 T. sugar. In 1889 it took 9.25 T. beets for 1 T. sugar. From 5 per cent of sugar, as found by Marggraf , the sugar beet of good quality has increased to 15 per cent and more, and 12 per cent is considered necessary for profitable manufacture (Mary Hinman Abel, Bulletin 9S, 1906, Bureau of Agriculture, Washington, D.C.). 2 Review of Reviews, XXVII (February, 1903), 227 ; Scientific American (Supplement), LV, 22, 734. 132 ECONOMIC CONDITIONS a conference, at Brussels. Representatives of the powers at- tended. A union of the important countries producing beet sugar was formed, and a plan of action was ratified. It was decided to abolish the bounty system and establish a uniform customs duty of PO.IO on raw sugar and pO.ll on refined sugar. ^ Russia alone did not consent to this plan, because under the bounty system the Russian sugar industry was de- veloping at an amazing rate. Some countries still levy a duty on Russian sugar equal to the amount paid by the government to Russian beet growers. In 1907, however, Russia was ad- mitted to the union with the understanding that Russian sugar exports westward were not to exceed 200,000 tons a year. In 1912 arrangements were made for supplementary exports of sugar in case of shortage in European markets. The French and German sugar producers do not now receive a bounty, for they have reduced beet-sugar production to an economi- cal basis not yet obtained by the majority of the cane-sugar producers. The modern beet-sugar factory is a marvelous ex- ample of a productive organization in which waste has been reduced to a negligible factor.^ It is probable that the Conti- nental countries will revert to a modified form of the bounty system if changing conditions should make a bounty a necessity for the beet growers. Decline of the Cane-Sugar Industry While science, wealth, and statesmanship were uniting to establish securely the beet-sugar industry, a far different state of affaii-s existed in the West Indies, then the chief source of supply of the sugar from cane. The position of the planters there will be understood after a brief glance at their history in the nineteenth century. During the early part of the eighteenth century England controlled the sugar market of 1 Scientific American (Supplement), LV, 22, 734. 2 For a description and details of the manufacturing system, see Miller's "Commercial Geography," p. 29 ; and Newsom and Walker's "Handbook on the Sugar Industry of the Philippine Islands." SUGAE AS AK EXPOET CHOP 133 the West Indies. The industry at that time yielded immense profits, because the conditions were favorable. The profits were invested, or squandered, abroad.^ The planters made little attempt to prepare for periods of depression. In 1834 the English government proclaimed the emancipation of the West- Indian slaves. This was a blow to the planters because they understood no labor but slave labor.^ The measure of self- restraint necessary in dealing with free laborers had never been practiced by them, and troubles between planters and laborers often arose because of the violence of one or both par- ties. Moreover, the negroes did not know how to labor as free men. They were careless of their contracts with the planters, and often at a critical period would not labor at all unless paid a large additional sum. Thus they discouraged their em- ployers and destroyed their own means of obtaining a decent livelihood. The government paid about P200,000,000 for the slaves. This money the planters expended abroad also, and when labor and other troubles made ready money a necessity, they were almost bankrupt. The usurers supplied the money, but at ruinous rates. Political disturbances were of frequent occurrence in Cuba during this period. Sugar mills were burned, and lands were laid waste by opposing armies. These losses ruined many planters and disheartened others. The revival of the beet-sugar industry in Central Europe gave a sugar supply greater than the immediate demand, and the West-Indian product was crowded out of the market. Because of this condition and of antiquated methods the planters could not make sugar in com- petition with the energetic, resourceful producers of beet sugar. In the face of a most dangerous rival the colonial governments and the planters assumed for a time a listlessness which seemed to indicate the ruin of the industry. The production decreased at an alarming rate. 1 Morris's " History of Colonization," II, 57-58. 2 Ibid. p. 197. 134 ECONOMIC co:nditions Restoration of the Cane-Sugar Industry Early in the twentieth century, however, we find cane growers united in an attempt to reestablish their product in its old- time position in the world's market. Indeed, sugar-cane grow- ers throughout the world are now adapting to local needs many of the devices of the beet-sugar manufacturers. They are also spending fortunes in experimenting with new processes looking toward the elimination of waste. Java, Cuba, and Hawaii are the leaders in the restoration of the cane-sugar industry. Java long prospered during the period of its forced-labor system. Even during that period the sugar industry was re- garded at times as " an intolerable burden." ^ The change ^ to- free labor began in 1870, and was completed in 1890. Because of ignorance and mismanagement many of the factories were run for years at a loss. As a rule, the Javanese are slow to adopt new methods, but a marked change of policy has been apparent in recent years. Their sugar estates are large, and mills of the latest model have been installed. In 1912 there were nearly two hundred mills in the island. They exported more than 750,000 tons a year to India, China, and Japan, and could increase the amount to 1,500,000 tons. As a result^ of the Spanish-American War, much of the Philippine sugar formerly sent to China was exported to America ; Hongkong importers thereafter supplied the deficiency by purchasing annually from Java a constantly increasing amount.^ Before 1887 the best Cuban mills extracted sixty-three per cent of the juice of the cane. Modern mills now installed exert a pressure of five hundred tons to the square inch, ex- tracting ninety-five per cent of the juice, and leaving the bagasse practically dry. In 1909 one Cuban company threw out comparatively new machinery, costing nearly a quarter of 1 Annual Report of the Governor General of Java, 1834. 2 Day's "The Dutch in Java," p. 393. * The Louisiana Planter and Sugar Manufacturer, August 6, 1910. * The International Sugar Journal, XIII, 147. SUGAE AS AK EXPOKT CEOP 135 a million dollars, to install the newest model. The same com- pany operates fifty miles of railroad through its fields. The cane is not touched by the laborers' hands from the time that it is placed on the freight car in the field until the ash of the bagasse is removed from beneath the furnace. Thus it is evi- dent that a modern cane-sugar mill is an expensive affair. The opening up of new estates in Cuba, and the enlarging of the cultivated area of the older estates, would indicate the promise of satisfactory profits. Hawaii is probably the most prosperous of the three lead- ing sugar-producing countries. Her planters have keen busi- ness ability combined with energy and forethought. Where conditions have been unfavorable, they have procured the necessary changes. They unite to expend vast sums on ex- periments. They employ the most economical methods of growing, handling, and treatiQg the cane. As examples may be cited a recently perfected process for the rapid clarifica- tion of sugar and a new system of recovering the sugar formerly wasted in the molasses.^ On many estates the canes are floated to the mills in channels of running water, which may also be used to irrigate the fields. The cost of production in Hawaii is said to be lower than in Java or Cuba. Hawaiian sugar enters the United States duty free, a privilege which in 1914 was worth about $10,000,000 to the Hawaiian planters.^ The sugar mills of Formosa are of interest to the people of the Philippines, since the Formosan planters are their nearest and most favored competitors. The sugar industry was im- portant in Formosa long before the days of Koxinga. Koxinga, the Dutch, and the Chinese all gave it some encouragement. In 1902 the Japanese government enacted very favorable laws, which included the lease of government land, rent free, finan- cial aid to enterprises employing the most modern methods of culture and manufacture, and modem sugar mills erected and lent to the planters. 1 Far Eastern Beview (December, 1911), Vol. VIII, No. 7. 2 Taussig's " Some Aspects of the Tariff Question," p. 69. 136 ECONOMIC CONDITIONS This policy of government aid has produced revolutionary- changes in the methods employed, since the government will extend assistance only to those planters who make use of every approved modern device for reducing the cost per kilo of the sugar produced. Formosa has thus acquired a modern system of production without passing through a long and costly period of experimentation and failure. This result has been attained by a careful study of the methods employed in different countries throughout the world, and by the selection and adaptation of methods which seemed best suited to the needs of the Formosan planters. At one step the old three- roller mills with animal power, and the hand ladle for trans- ferring the sucrose, have been replaced by the twelve-roller steam mill and the electrically driven pump. History of Sugar in the Philippines There are no reliable data concerning the introduction of sugar cane into the Philippines. The suggestions have been made that certain varieties came from Java, others from Formosa, and at least one variety from Tahiti, brought, pre- sumably, by the Spanish.^ In some regions the primitive implements used in' cane culture still bear Chinese names ; this suggests that the Chinese had much to do with the establishment of the industry in the Islands. For three hundred years after the arrival of the Spanish, Philippine sugar was of little commercial importance. Sugar growing was confined to the provinces of Pampanga, Batangas, Cavite, Cebu, Iloilo, and Negros. Finally disturbances in dis- tant sugar-producing areas interfered with the world's supply, and created a demand for the Philippine product. During the Crimean War this demand caused local prices to advance to 111 and $12 (Mexican) per picul of 137J pounds. Although this price did not hold for any length of time, it served to draw the attention of sugar brokers to the Philippines as a 1 Philippine Census, IV, 26. SUGAR AS AN EXPORT CROP 137 possible source of supply. The opening of the Suez Canal, in the year 1869, also added greatly to the importance of the Philippine sugar fields, since it opened up a more direct route between the Orient and the Western World, and thus reduced the distance from Manila to Liverpool to less than ten thousand miles. The general effect which this had on the sugar industry in the Islands may be seen in Chart XVI. i " 1 I I 1 1 \ \ \ \ \ \ M \ i 1 i 1 g \ 1 i i i 1 \ \ iiiii I s ; 2 1 1 Tons i A / 1 \ K A r 1 I \\ \\ J r ^ f V J si r s/ v- / / N, 7 V -V 1 ^ CHART XVI. PHILIPPINE SUGAR EXPORTS ; QUANTITY IN THOUSANDS OF TONS Census and Customs Statistics In 1877 a British firm established a sugar central at Mandaluyon, on the Pasig River, about three miles from Manila. The plan was to lay pipes from such mills as were in the more immediate neighborhood, and pump the cane juice to the central. A fleet of schooners was equipped with tanks to bring the juice from the mills situated at a greater distance from the central. It was hoped to extend this serv- ice as far as the Visayan Islands. The mill turned out to be an unprofitable investment, and in 1880 its doors were closed.^ 1 Foreman's "The Philippine Islands," old edition, p. 312. 138 • ECONOMIC CONDITIONS In 1893 the total production of sugar was 300,000 tons, of which 261,686 tons were exported.^ The supply came from eighteen provinces, with the island of Negros far in the lead. Conditions in Negros at this time were ideal. Labor was cheap. There were plenty of work animals. When necessary, American and English firms supplied the working capital. The methods, however, were primitive and wasteful. In 1897 there were in the Archipelago three thousand plan- tations, each with a small milh In Luzon the share system was popular. The landowner not only leased to the tenant as much land as he individually could care for, but also provided carabaos, wooden plows, and other farming implements. The tenant received from one third to one half of the sugar, but the cost of crushing the cane and making the sugar was de- ducted from his share.^ In the southern islands the laborer received a stipulated daily wage, usually from P0.20 to P0.50. Many children found employment in the cane fields. Persistence of Antiquated Philippine Methods Since 1897 the sugar industry described above has not been profitable. All productive work was demoralized during the political disturbances of 1895-1899, a period for which we have little reliable data. In 1901 the exports were only one third of those of ten years before, and the renewed activity shown in other kinds of work is not found to the same degree in the sugar industry. The reason for this is plain. While the planters in other countries had been reducing the cost of production, usually by increasmg the number of tons per acre obtained from the original expenditure, the planter in the Philippines had faced a gradually increasing cost per ton of sugar. Indeed, the cost for the average farmer was nearly 1 In 1893 the United States and Canada took about thirty per cent of the exports ; Great Britain took thirty-seven per cent ; the rest was divided between China and Japan, with the exception of a small shipment to the continent of Europe (Census of the Philippine Islands, IV, 30). 2 Foreman's " History of tlie Philippines," p. 313. SUGAR AS AN EXPORT CROP 139 twice as much as it had been twenty years before, whereas the price of sugar in the world's market continued to be held fairly steady because of the competition which existed between the cane-sugar and the beet-sugar interests.^ . The fluctuations, decline, and rise in the price of sugar produced in the Philippine Islands may be seen by looking 00 00 00 32 24 20 ;h . -4 1- H , 4 ;i i ; H - H ^ ■4 ■ ^ H i- H ^ H t- ^ ; H ^ -t ^ H t^ 4 r- H »■ ^ ^ 1918 X= Price of Centrifugal Sugar 18.2 cts. ^= Price of Brown Sugar 9.5 cts. A /v \ / V ^ \ / /-> \, I \ A. 7 ^ / 1 V M -/ \ A ■ ^ V _/ V \ CHART XVII. PHILIPPINE SUGAR EXPORTS; PRICE PER KILO Census and Customs Statistics at Chart XVII. From 1877 to 1895 the downward tendency in the price of Philippine sugar may be explained by the presence in the world's market of a constantly increasing quantity of beet sugar. Many reasons for the increased cost of producing sugar have been given. Among those mentioned are the increasing cost of labor and of work animals, the necessity for borrowing 1 The Philippine Census, 1903, IV, 32. 140 ECONOMIC CONDITIONS money, and the losses due to drought and locusts. A reason more weighty than any of these is that the planters who com- plain of the increased cost of production are trying to use in modern times and under modern conditions the methods and the machinery which were successful during the earlier days of the cane-sugar industry. For example, in 1911 sixty- four mills were employed to grind the cane from two thousand hectares in Central Luzon. Thirty-four of these mills were run by carabaos; the rest were small steam mills. The former obtained about half of the cane juice ; the latter, from sixty to sixty-five per cent of it. The product, if it is to be exported in competition with that from other countries, must be able to compete with the product from mills which are extracting at least ninety-five per cent of the juice. ^ The district mentioned is fairly typical of many of the cane- planted areas of the Islands to-day. In a section of Iloilo Province the proportion of machines which are worked by animal power is a httle larger; the number of hectares per mill is about the same.^ The sugar which these mills are producing is of a low grade, but the cane as a rule is grown on high-grade sugar lands. From the foregoing pages it is evident that although the Philippines had modern sugar machinery sixty years ago, or about the time of the Crimean War, for various reasons they have not progressed so rapidly as other producers in the cane- growing tropics. During the past twenty years the gulf has been widening rapidly. A revolution in methods similar to that which took place in Formosa was needed to place the Islands among the sugar-producing regions of world-wide im- portance. The first measures in that revolutionary change have already been taken ; these measures have been adopted as the result of the opening of a new sugar market for the product of the Philippines, namely, the United States. 1 Economic reports by James H. Bass, Pampanga. 2 Economic reports by William E. Mack, Iloilo. An Antiquated Boiling Plant A Modern Central on Mindoro PHILIPPINE SUGAR MILLS 142 ECONOMIC CONDITIONS I860 1870 1880 1900 Markets for Philippine Sugar Very early in the history of the Philippine sugar industry England and the United States appeared as the most accept- able purchasers. The opening of the Suez Canal was an im- portant factor in the development of the trade with the former. The European buyers, however, did not greatly care for our sugar because of its low grade and the consequent high cost of refining it. With the appearance in European markets of large quantities of high- grade beet sugar, Philip- pine sugar was crowded out, and exporters sought, in China and Japan, mar- kets which could not pur- chase beet sugar because of the cost of transportation. Japanese markets were of little importance to the Phihppines on account of the rapid development of sugar fields in Formosa. ^ /\ / \ 1.. / '^^•SB. •^% ^s;:^^ J ^ \ y \ ^ \ / V \ --\ J ^w/*' ■^ — ^ \^ S- ^ ^ ■^ ^ V CHART XXIV. PHILIPPINE LEAF TOBACCO ; EXPORT PRICE PER KILO Census and Customs Statistics as much money from a low grade. Even when the growers sell by quality, the buyers classify the leaf as low as possible, reclassifying it higher when they sell it. The pernicious system of advances which applies to all Philippine industries is particularly in evidence in the Cagayan Valley. The ignorant planters are at the mercy of the small buyers, who lend them money on growing crops at exorbitant rates of interest, compelling them to sell their product at an exceedingly low price. Hence it is that the ignorance of the small farmers in the Cagayan Valley has resulted, first, in the production of a tobacco of much lower grade than should be grown in that region, and, secondly, in the farmers' being imposed on by dealers and kept in a state of poverty with no incentive to improve either their product or their lot in life. TOBACCO AS AN EXPORT CROP 159 The poor methods which result in low-grade tobacco begin with the seed beds ; ^ these are seldom well situated, and are neither properly planted nor properly cultivated. The fields are poorly tilled, and the farmer usually delays transplanting until the last minute. The cultivation is carelessly done. An immense amount of leaf is lost by worms. This negligence in cultivation alone probably reduces the tobacco crop of the Cagayan Valley by one half. Only about one third of the crop 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 ^0 • y V 10 / ^ '-X. '^--^ / 30 / / f -^'" ;: y / ^^ ^ 20 10 / United States All Co an tries 1 CHART XXV. PHILIPPINE CIGAR EXPORT; PRICE PER THOUSAND Customs Statistics is harvested at the proper time ; the other two thirds of it is gathered when too green or too ripe. The process of curing tobacco in this region has been without doubt the worst that ever existed in any tobacco-producing country in the world.^ Plans to effect Improvement in Quality The excellent quality of Cagayan leaf is therefore not the result of careful cultivation and curing, but persists in spite of the slack methods used in producing it. The great market 1 For details of planting, etc., see Miller's "Commercial Geography." 2 From an unpublished report by Boltos Brewer. 160 ECONOMIC CONDITIONS for Philippine tobacco is that for cigars in the United States ; this market demands a high-grade leaf. To bring about the production of such a leaf, however, is a complicated matter ; for it involves some change in the system of selling on the part of small dealers, so that they may have .an incentive to produce a higher grade of tobacco. Even under the strict rules of the monopoly it was impossible to counteract entirely the effect of the indolence and carelessness of the growers. They would not strive for superior excellence in cultivation, nor could they be made to understand the importance of attention to the details in curing.^ Moreover, the monopoly was a failure on account of its abuses, and furnishes an example of what may result from government control of large productive enter- prises. Hence any plan for improvement in the quality of Cagayan tobacco, if based on government control, must be considered a more or less dangerous one. It has been pro- posed to limit the amount of land cultivated and the number of plants grown by each farmer, and to supervise the various steps in cultivating, harvesting, and curing the tobacco by a system of government experts, who shall have authority to destroy tobacco which is not up to the standard. If carefully carried out, this plan might be a success, but its dangers are many. Of the two possible remedies, government regulation and education, it is probable that the latter will bring about results more slowly, but that the results will be more extensive and more permanent. Such results will also be obtained with less friction and with less danger of abuse. For several years the efforts of the government to improve the quality of tobacco in the Cagayan Valley have been in the way of instruction and example ; in view of the difficulty of the situation some success has been attained. Experts travel through the tobacco region, study the conditions, give advice, and use their influence to introduce better methods. 1 Bulletin No. 5S, Bureau of Labor, Washington, D.C. TOBACCO AS AN EXPORT CROP 161 Seed cleaners are stationed in numerous localities, so that the farmers are able to obtain better seed, which means a superior product. Experiment stations are also included in this plan. Even schools have taken up the subject; oral instruction is given in the classroom, and school plots are cultivated under the direction of the teachers. Act Number 2613, an Act to improve the methods of pro- duction and the quality of tobacco in the Philippines and to develop the export trade therein, is administered by the Bureau of Internal Revenue and by the Bureau of Agriculture. Tobacco is placed under the jurisdiction of the Bureau of Agriculture from the time it is planted to the time it is harvested. The Act provides that the Bureau of Agriculture through its agents and inspectors shall purchase seed, clean it, and distribute it gratuitously among tobacco planters ; that it shall be unlawful for any tobacco planter to cure leaf tobacco in any other manner than in a building or curing shed constructed in accordance with the specifications of the Bureau of Agriculture; that planters may be classified as first-class and second-class planters ; and that the Director of Agriculture may grant diplomas to planters or producers for excellence in the production of tobacco. The Collector of Internal Revenue has the power to estab- lish general and local rules respecting, the classification, mark- ing, and packing of tobacco for domestic sale or for exportation to the United States. In general, the Bureau of Internal Revenue has charge of all tobacco after it is harvested, that is, while it is being cured and fermented, and until it is exported from the Islands, either in the form of cigars or in bales to the United States. The government inspection of cigars for the United States has already been explained, and the results have been noted. The Bureau of Internal Revenue inspects and classifies leaf tobacco also, (1) as to its origin (from Isabela, Cagayan, or other provinces), (2) as to length of leaf, (3) as to soundness, (4) as to use (that is, coloring and texture), (5) as to the standard for export (that is, four 162 ECONOMIC CONDITIONS classes for superior tobacco from the Cagayan Valley and three classes from other provinces). This Act and its administration have tended to stabilize the tobacco industry in the Philippines, and to increase the quality of the leaf tobacco and of cigars exported to the United States. SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text 1. The reasons for forming the monopoly of tobacco. 2. Its rules and regulations and their effect. 3. Its abuses. 4. The effect of the abolition of the monopoly. 5. On what circumstance does the prosperity of the Philippine tobacco industry now depend? 6. Why the government controls the quality of tobacco leaf and of cigars for export to the United States, but not for other foreign markets, nor for the local markets. 7. The three markets for Philippine tobacco and its products. 8. The two forms in which tobacco is chiefly exported. 9. The form in which it is chiefly consumed locally. 10. Why the Isabela leaf is better than that grown in Union and Cebu. 11. The methods of growing and curing tobacco in the Cagayan Valley. 12. How these methods may be changed, and the quality of the tobacco improved. 13. The larger plantations and the small growers of tobacco in the Cagayan. 14. How the output of the small farms is marketed. 15. The problem of the quality of the Isabela leaf and the small producer. 16. How it is being met. Suggestions for the Study of Local Conditions In tobacco regions 1. A detailed report on the correct methods of tobacco culture and curing. 2. What the government is doing to increase the quality of tobacco (Act 2613). 3. Methods and procedures in grading Philippine tobacco. TOBACCO AS AN EXPOKT CROP 163 In cigar-making centers 1. Methods and procedures in grading Philippine cigars for export and in controlling the quality of the product (Act 2613). 2. Cigar workers. 3. How cigars are made. 4. Grades and shapes. Suggestions for Reports from References, especially FROM Commercial Geographies 1. The production and use of the world's tobacco crop. Illus- trated with maps and charts. (Miller ; Finch and Baker.) 2. The proper cultivation and curing of tobacco. 3. The world's commer- cial forms of tobacco. 4. Grades of tobacco. 5. Kinds of tobacco with respect to (a) source, (b) use. (Miller.) 6. From the latest ^^ Statistics on Principal Crops of the Philip- pine Islands " prepare a chart representing the amount of tobacco produced in the Philippines. 7. Divide the chart into sections rep- resenting the production of the chief tobacco-producing provinces. 8. Compare these. 9. Using these data, and referring to Miller's " Commercial Geography " and Miller and Policy's " Intermediate Geography," prepare a map of the Philippines showing the regions producing tobacco for export and for local consumption. 10. Secure the necessary data from the latest annual report of the Collector of Customs, and bring Charts XXI, XXII, XXIV, XXV, down to the present. 11. Comment on these new figures. 12. Chart the total value of tobacco exports from the Philippines since 1899, and* the amount exported to the United States. 13. From the latest annual report of the Collector of Customs, make a chart showing the export of leaf and stripped tobacco from the Philippines, and the principal countries to which it is sent. 14. Using data from the latest annual report of the Collector of Internal Revenue, make a chart representing the annual production of cigarettes, the local consumption, and the export. 15. Narcotics other than tobacco, such as opium, cocaine, buyo. Selections on the Theory of Economics to be applied TO THE Material in the Chapter 1. Monopolies (Bullock, pages 167-180). 2. The difference between fiscal, financial, and natural monopolies. . CHAPTER IX MINOR AND POSSIBLE EXPORT CROPS Abaca, copra, sugar, and tobacco compose about nine tenths of the exports of the Philippine Islands. In this chapter we shall consider certain minor agricultural exports and certain other crops which, though grown but little in the Islands, could be produced in much larger quantities. Agave Fibers Henequen ^ fiber has been known and used in Mexico for centuries. In 1783 its value for cordage was recognized; in 1830 a small quantity was shipped to Europe. Large pro- duction and export of that fiber, however, came about only when machinery had been invented to strip the fiber from the leaves at small cost. The machine used for this purpose was the result of a prize offered by the Mexican govern- ment. The low cost of obtaining the fiber then made it possible for henequen to compete successfully with other rope fibers, and caused large plantations to be started in Mexico. Various tropical and subtropical countries later es- tablished plantations with several species of agave, so that the amount of agave fiber now produced is very large. Im- proved machines and increased production have brought down the price, so that it is now profitable to grow agave only on large plantations where systematic cultivation, stripping, and 1 The identity of the plants from which agave fibers are obtained has now been determined as follows: sisal = Agave sisalana Perrinne ; henequen = Agave fourcroydes Lemaire ; maguey = Agave cantata Rox. 164 MINOR AND POSSIBLE EXPORT CROPS 165 marketing make it possible to eliminate the waste. The day- has passed when the small planter and stripper of agave fibers can normally make money. Agave cantala^ the species from which maguey fiber is ob- tained, was probably introduced into the Philippine Islands from Mexico; it is now found growing throughout the Archipelago. The possibility of raising it on poor soils, such as those found in Ilocos Norte, Cebu, Bohol, and other regions, caused large numbers of these plants to be set out several years ago when the price of agave fibers was comparatively high. In the meantime, however, the large sisal plantations in German East Africa and other countries came into bearing, and the price of these fibers fell. The scattered plantings of maguey in the Philippines do not warrant the use of strip- ping machines, since a continuous supply of leaves cannot be obtained, and transportation from scattered localities is expensive. In Java it has been proved that successful plan- tations must be well equipped with machinery, and must con- sist of about three hundred hectares with cantata as the chief crop, or a hundred and twenty-five hectares with cantata as the secondary crop.^ Since no plantmgs of maguey in the Philippines approach this size, it is evident that the com- mercial production of maguey here is not usually profitable. Indeed, in most parts of the Islands, in normal years, either the maguey leaves are allowed to go to waste or the plants are grubbed up. The usual annual export, valued at about PI, 000,000, comes chiefly from Ilocos Norte and Cebu, and is obtained by retting. The workers usually own the leaves ; before the World War they got from the sale of the fiber the equivalent of only a fair wage. The war prices of 1914 stimulated the stripping of maguey, and the export increased from about 7,000,000 kilos in 1915 to more than 14,000,000 kilos in 1917. This increased pro- duction was mostly the result of utilizmg fields normally 1 Bulletin of the Imperial Institute, London, Vol. X, No. 2, p. 301. 166 ECONOMIC CONDITIONS neglected. The value increased from about PI, 000,000 to about F4,700,000. This excellent price revived interest in maguey. More plants were set out, and the question of machinery was again agitated. In 1918 the amount of maguey exported from the Philip- pmes was more than 11,000,000 kilos, valued at more than ?3,700,000. Most of the export of 1917 went to the United States. In 1918 the United States took very little maguey from us ; nearly all of it went to Great Britain. In 1917- 1918 the average export price of maguey was about thirty- four centavos per kilo. With the end of the war and the dissolution of the Mexican Sisal Monopoly prices fell. For the first six months of 1919 only about 2,846,000 kilos of maguey were exported, at an average price of about twenty-five centavos per kilo. Many of the plantings of maguey were again abandoned, and the strippers turned to other industries. Unless the production is regulated, therefore, the industry will not be able to compete with those of other countries, now that conditions in the world at large are becoming normal. It is probable that maguey will continue to be a minor export of the Philippines, and that most of the product will be sent to the United States, as it was during the war. In parts of Cebu and I locos the plantations have been put on such a basis that machines have been successfully operated in much the same way as sugar centrals. There is room for such machines in certain localities where there are extensive plantings of maguey and good facilities for transportation to central points, at wliich stripping machinery can be established. A small amount of sisal fiber also is exported, the product of plants imported from the Hawaiian Islands. Maguey and sisal fibers are included in the fibers graded by the Bureau of Agriculture. The grades are now placed under three general types : maguey, or retted Agave cantata ; cantala, or Agave caritala, cleaned by machinery or knives; and sisal. MINOR AND POSSIBLE EXPORT CROPS 167 Kapok Kapok trees grow throughout the Philippines. If the fiber from these trees were gathered, the aggregate amount would be considerable, but with the exception of Oriental Negros few of the provinces produce the fiber in commercial quan- tities. Java is the chief source of the kapok used in Europe and the United States. ^ Much of the Java fiber is obtained 1900 1901 1902 1903 1904 1905 1906 1907 1909 1910 1911 1912 Tons 8000 6000 1 1 KAPOK Exports from Jav^ IN TONS (Phll.Agr.Rev.V.No.8) L / \ ^ ^^^ 4000 -^ — / Cents Gold 22 20 ■ ' 2000 ^ KAPOK '/ \, ^ 16 Maximum Price 1 PER POUND IN United States JN cents gold ^ X s ,^-^" ^ 12 10 8 6 4 2 CHART XXVI from trees planted along the roads, but regular plantations also exist. The amount of kapok exported from the Philip- pines is almost negligible in comparison with that from Java. In 1910 Java exported more than eight thousand tons. In 1910 the Philippines exported thirty tons, and in 1913 a hundred and thirty-four tons. If the pods from the kapok trees now existing in the Philippines were gathered, the present export could be increased many times without 1 The growth and final establishment of this industry can be seen on Chart XXVI. 168 ECONOMIC CONDITIONS decreasing the amount used locally. Since the World War the export has decreased. It may revive again when freights become normal. Fruits The position of fruits in the diet of the Filipinos has already been explained. The unsatisfied local demand for fruits would of course preclude export to foreign countries. There is only one considerable area in the Philippines which at the present time is economically dependent on fruit culture, and this is the orange district of Tanauan, in Batangas Prov- ince. But there are several fruits in the Philippines which could, either in their present variety or in an improved type, be produced in large quantities for both local use and export. With respect to foreign fruit markets two methods of dis- posing of the product may be considered, the export of canned fruit and the export of fresh fruit. A good example of the former method is the pineapple- canning industry of the Hawaiian Islands, where a very large amount of capital is invested in canneries. The plantations on which the fruit is produced are extensive, and a large num- ber of laborers are employed. Exports of fresh fruit require a market fairly close at hand. Some fruits, such as bananas, can be carried long distances if carefully picked and carefully packed. Others must be shipped in cold storage. An excel- lent example of successful fruit raising and export on a large scale is the orange industry of Southern California. In the latter part of the nineteenth century the attention of Ameri- can horticulturists was attracted to the industry of citrous fruits, and superior varieties were introduced from other orange-producing countries. Most of the fruit grown in Cali- fornia is transported in special refrigerator cars ; if it is to be carried by water, it is placed in the cold-storage compart- ments of steamers. California oranges are imported into the Philippmes and even into Australia. MINOR AND POSSIBLE EXPORT CROPS 169 Of the fruits grown in the PhiHppines the pineapple would be the best suited for large canning operations. The variety grown is not so good as some that are now being introduced. In many regions of the Archipelago the conditions of soil and climate are well adapted to the pineapple, and plantations have already been started. The mango is also a fruit which lends itself well to canning and preserving.^ Jelly for local con- sumption is now made from the Philippine guava. It is prob- able also that several other Philippine fruits will be found suitable for canning and preserving in commercial quantities. A large market for Philippine bananas, mangos, chicos, lan- sones, and citrous fruits could undoubtedly be developed in China and Japan, and for citrous fruits in Australia. A dis- cussion of Philippine export markets for fresh fruit is more or less academic at the present time, on account of the lack of fruit to supply even local demand ; but the subject is men- tioned because of its possibilities if the production of fruit in the Islands is ever placed on a scientific and commercial basis. Through the introduction of varieties from abroad and selec- tion from the seedlings at home, and through improved methods of cultivation, the standard excellence of the citrous fruits (orange, pomelo, mandarin, and lemon) will be raised. Citrous orchards cultivated on scientific principles and fruit handled properly could hardly fail to yield large returns on the investment; they would supply the local market with good fruit at lower prices than at present, and the business would ultimately develop into a considerable export trade. The banana industries of Jamaica and Costa Rica, the two most important countries in this trade, are examples of results that can be obtained from systematic fruit culture. Jamaica now exports to the American and English markets about 12,000,000 bunches of bananas a year, and Costa Rica about 10,000,000. These are purchased from the growers on the spot at from thirty to sixty centavos a bunch ; they are conveyed 1 For a discussion of methods in canning, see Miller's " Commercial Geog- raphy." 170 ECONOMIC CONDITIONS by rail to the ports from which large steamers, specially constructed for this trade, transport them to the markets. Thus a bunch of bananas hanging in a New England store may have been taken from the plant in Costa Rica fifteen days before. The success of this industry has depended on the care- ful cultivation of the best varieties, and on systematic trans- portation and marketing.! Total shipments of bananas to the United States in 1911 were 44,660,000 bunches containing from eighty to two hundred bananas each, valued at P28,600,000. These were sold in the United States at about the price de- manded for the better grade of bananas in Philippine cities. The number of vessels engaged in this trade is greater than the whole fleet of inter-island steamers in the Philippines. Rubber Rubber originated in Central and South America and in Africa. From time to time it had received the attention of experimenters and merchants, but it was not until 1820 that anything practical was done with it. The modern rubber in- dustry dates from the experiments of Goodyear, who found that a product impervious to water and not affected by ex- tremes of temperature was obtained by combining rubber with sulphur at high temperatures. Later Mackintosh dis- covered the art of waterproofing cloth by means of dissolving rubber in naphtha. Since that time the demand for rubber has increased by leaps and bounds, as new uses have been found for it. The supply, however, has not kept pace with the demand. For many years rubber was obtained in a wild state in the Amazon Valley and in Africa ; but the increased uses for it resulted in attempts to secure a more reliable source of supply, and experiments were made in cultivating plants which, in a wild state, yield rubber. Plantations were estab- lished in Mexico, Central America, the Malay Peninsula, Ceylon, and other countries. The high profits which these 1 National Geographic Magazine, Vol. XIII, No. 7. MINOR AND POSSIBLE EXPORT CROPS 171 plantations realized caused great interest in the cultivation of rubber, accompanied by extensive speculation in the stock of the plantation^. The shares were run far above their actual value, and the market broke. Since then the rubber-plantation industry has become more stable. At the prices before the World War the profits from cultivated rubber were large, though not nearly so large as those promised to speculators during the period of speculation. The Philippines have also been interested in cultivated rub- ber, but only with the opening of Mindanao and Palawan have large areas suitable to the growing of rubber been avail- able. It is true that throughout the other islands there are sheltered and suitable spots, where typhoons are not destruc- tive, but the aggregate area of these spots is small compared with the amount of land available below the typhoon belt in Mindanao, Sulu, and Palawan. Not only are these latter regions free from winds which break the rubber plants, but they are not visited by drought or a dry season, which unfit central and western Luzon and the western coasts of the Visayas. The wild hogs in Mindanao, Sulu, and Palawan constitute a menace to the young trees, but these can be guarded against by strong fences. The existence of plantations there proves that the trees grow well. The chief difficulty now is to obtain sufficient labor, and this is deterring many from entering the industry. Although the Philippines are a producer of plantation rubber,^ it is improbable that they will soon be an important factor, since the most favorable localities lack a supply of labor. The situation has been complicated recently by the possibil- ities of synthetic rubber. One of the leading chemists of the world has stated that artificial rubber will soon be produced in commercial quantities below the present price of either 1 See '' Rubber-Growing Industry of the Philippines " and " Cost of Pro- ductiop and Products," by Dean C. Worcester, Secretary of the Interior, Gov- ernment Printing Office, Washington, D. C. In 1918 the Islands exported 34,000 kilos of rubber, valued at P 75,000. 172 ECONOMIC CONDITIONS wild or cultivated rubber. If this is accomplished, it may be that tropical rubber growing will come to the same end as the indigo industry, which was destroyed by the production of synthetic indigo in Germany. Silk The raising of silkworms ^ would seem a possible industry in the Philippines because the climate is suitable and food for the worms is easily produced. The mulberry on which the Bombyx mori feeds was introduced into the Philippines in 1593. From time to time interest has been taken in silk rais- ing, and various persons and societies have endeavored to establish it in the Islands. The failure of these efforts has been due to lack of financial backing. Then, too, the agri- culturists never lent themselves williugly to the growing of the silkworms on account of the great care demanded. From 'the year 1870 no attempts were made to iutroduce the silk- worm until 1905, when the Bureau of Science at Manila took up the matter. There are now in the Philippines two kinds of worms : (1) Bombyx mori, feeding on the leaves of cultivated mulberry, and producing a cocoon which is reeled ; (2) Attacus ricinii, the Eri silkworm, which lives on the leaves of the cas- tor plant found growing wild throughout the Philippiues, and which produces unreelable cocoons from which spun silk is made. Experiments made with these two worms warrant the statement that silk raising can be carried on in the Philippines under conditions as favorable as those which prevail in the best silk-producing countries of the world, with the added advantage that no disease has appeared among the insects here or on the trees used for feeding them. In countries about the Philippines diseases among the silkworms cause heavy losses. By law it is now forbidden to import silkworms, eggs, or cocoons into the Islands. The spread of the silk industry must take place under the supervision of the authorities, since 1 See " Manual of Philippine Silk Culture," by Charles S. Banks, Bureau of Science, Manila. MINOR AND POSSIBLE EXPORT CROPS 17eS inexperience or slovenly methods may lead to diseases. In several places in the Philippines both the schools and private persons have become interested, and it would seem that the industry has already been launched. Its growth must neces- sarily be slow. For many years to come a considerable amount of silk produced in the Philippines can be used in the local production of cloths such as jusi (made from raw silk), silks, and pongees. The United States furnishes a large market for both silk fiber and silk textiles, so that the Philippines already have an outlet for surplus production. They also have the benefit of free trade, whereas the product of other countries is subject to a high duty. Essential Oils For many years there has been an export of ilang-ilang oil from the Philippines. Up to a few years ago the Islands were practically the only source of this oil ; the high prices received for the flowers made their production extremely re- munerative. At the present time such competition has devel- oped in Mauritius and Madagascar that the price for the flowers has dropped from forty or fifty centavos to seven centavos per kilo.i It is improbable that the growing of ilang-ilang will again be so remunerative as formerly. There are several other Philippine plants which yield essential oils for perfumery. The world's market is constantly demanding new perfumes ; Michelia ehampaca has been cultivated here with the hope that the high price will make, its oil a remunerative minor export of the Philippines.^ Coffee The coffee plant was introduced into the Philippines by Spanish missionaries, late in the eighteenth century. By 1858 considerable quantities were produced, especially in the high- lands of Batangas, Laguna, and Cavite provinces. In 1884 1 Journal of Science^ Vol. V, No. 4. . 2 For Philippine essential oils, see Journal of Science, Manila, Vols. IV, V. 174 ECONOMIC CONDITIONS the exportation of coffee exceeded P 2,000,000 in value. In 1889 the PhiHppine industry was practically wiped out by the attacks of the fungus Hemileia vastatrix. Although the indus- try is now flourishing in some localities, such as Benguet and Bukidnon, and the production for the Islands as a whole is increasing slightly, it is improbable that coffee will soon be exported in commercial quantities. The possibility that the pest will again become active, and the sure returns from copra, sugar, abaca, tobacco, and rninor export crops, are against coffee. The Philippines consume about 1,750,000 kilos of coffee a year, of which more than 1,000,000 kilos are imported, mostly from Hawaii and Java. Starches The production of cassava and sago in the Philippines has already been touched on with respect to the place of these plants in the diet of the Filipinos. As a source of flour, tapioca, and alcohol, cassava is an important crop. The export of tap- ioca from the Philippines is a possibility. Throughout the Visayas, and particularly in the Agusan Valley, the sago palm is found. In Borneo the starch from this palm is formed into pellets known as sago, and exported in large quantities. Extensive swamp lands suitable for sago palms exist in the Visayas and Mindanao. Among other plants which yield com- mercial starches, and which grow well in the Philippines, is the arrowroot. Oils The coconut is the principal oil seed produced in the Philip- pines. Several other oil seeds grow here, however, and are worthy of more careful attention for export. Among these are (1) the peanut, which is produced throughout the Islands for local consumption and for forage ; (2) sesame, which is grown here and there in small quantities for local use, and which is, to some extent, already being exported ; (3) the MINOR AKD POSSIBLE EXPORT CROPS 175 castor-oil bean, inferior varieties of which are found in all parts of the Islands, the oil having become very important as a lubricant for aeroplanes ; and (4) the candlenut, which is now gathered in commercial quantities in a few districts only, but which is being extensively planted by the Bureau of Forestry in reforested areas. In 1918 about 185,000 kilos of oil, valued at Fl30,000, were exported. Established New Crops This enumeration does not include all present or possible export crops of the Philippines. Other export crops may result from the effort of large enterprises backed by either local or foreign capital. The present methods used in the production of the four chief export crops, and of the more important of the minor exports, do not warrant the introduction of new plants among Filipino cultivators. In the older and well- settled portions of the Islands more can be done by organizing the established industries on a firmer basis, and by improving the crops already grown, than by introducing new crops. Nevertheless, diversification is a desirable condition in agri- culture. It is a kind of insurance which eliminates the chance of a general disaster from the failure of any one important crop. It provides new crops, more or less tried out, to take the place of those no longer profitable. It is a phase of national agriculture that should be developed by government support and cooperation. SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text 1. The value of diversification in crops to the country ; the locality ; the individual. 2. Its limits. 3. History of the coffee industry in the Philippines as an example of what may occur to other commercial crops if pests are not controlled. 4. You have one hectare of fertile land, which you are urged to plant with maguey. WiU you do so ? 5. Suppose the land is 176 ECONOMIC CONDITIONS sandy and not valuable for another crop. 6. If you had a hundred hectares of such land, under what circumstances would you plant it with maguey ? 7. What controls the price of maguey fiber in the Philippines ? 8. Show how the price of abaca fiber is deter- mined by much more direct causes. 9. Explain why the price of sisal fiber affects the price of Manila hemp. 10. Why do the lower grades of Manila hemp increase in price when there is a large crop of grain in North America? 11. From the history of the agave industry draw a comparison as to what would probably happen if successful stripping machinery were intro- duced into the abaca industry. 12. Uses of kapok, and the possibilities for its increased production for export. 13. Philippine fruits in relation to the possibility of growing them for export («) in a fresh state ; (b) preserved. 14. The banana industry of the West Indies and Central America. 15. Could a similar industry be developed in the Philippines ? 16. Bananas versus abaca in the Philippines. Suggestions for the Study of Local Conditions in THE Maguey Districts 1. The government grading of maguey. 2. Maguey retting. 3. How a maguey central is managed. 4. Report on the feasibility of establishing a maguey central in a selected locality. 5. Possibility for maguey and kapok commercially. 6. The fiber plants of the locality (illustrated by specimens). 7. Local fruits in relation to local consumption and domestic trade. Possibilities. 8. New and possible agricultui-al crops. Suggestions for Reports from References, especially FROM Commercial Geographies 1. The relation between sugar, starches, and alcohol. 2. The chief sources of commercial starches. 3. Uses of starch. 4. Philip- pine starches. 5. Make and explain a chart of the uses of the Buri palm. 6. Clothing fibers of the world. 7. Where produced and used, illustrated with maps. (All commercial geographies.) MINOR AND POSSIBLE EXPORT CROPS 177 8. The processes in the manufacture of cloth. 9. Uses of cloth. 10. International trade in cloth. 11. Cloth imports into the Philippines. 12. The proportion of cotton-cloth imports to all imports. (Commercial geographies and customs reports.) 13. Cotton. (Miller ; Finch and Baker ; Toothaker ; Bishop and Keller.) 14. The silk industry of the world. 15. Its relation to the mul- berry. 16. The possibilities of silk production in the Philippines. 17. Abaca, banana, and pineapple fibers, and the cloths produced from them. 18. Hats. 19. The fibers used. 20. Felt, braided, and platted hats. 21. Localities of manufacture. 22. Trade in hats. 23.' Phil- ippine hats. 24. The production and uses of coir fiber. 25. Possibilities of producing coir fiber in the Philippines. 26. The manufacture of coir mats in the Philippines. 27. Philippine mats and matting. 28. Commercial brush and broom fibers. 29. Those grown and used in the Philippines. 30. Japan as a manufacturer of brushes and brooms. 31. How paper is manufactured. 32. Kinds of paper. 33. Paper materials. 34. Possible Philippine paper materials. 35. Some minor fibers used by the Filipinos. 36. Fibers that might be introduced and grown commercially in the Philippines. 37. Regions in which they are now grown. 38. Uses. 39. Trade. 40. Dyes in their relation to fibers. 41. Local dyes. 42. Mineral dyes. 43. History of the Philippine indigo industry. 44. The fruits of temperate and subtropical regions and the trade in them. 45. Import of fruits into the Philippines. 46. The production, consumption, and trade in the world's chief crops for beverages (coffee, tea, cacao), with maps and charts. 47. The production, import, and use in the Philippines. (Miller ; Finch and Baker ; and other commercial geographies.) 48. The chief commercial spices. 49. How and where they are produced. 50. Those produced, imported, and used in the Phil- ippines. (Miller.) 51. The increasing uses of rubber. 52. The rubber-producing regions of the world and the trade in rubber, with maps and diagrams. (Bishop and Keller; Finch and Baker; and other commercial geographies.) 53. Philippine rubber regions. (Miller.) CHAPTER X LOCATION AND CHARACTER OF AGRICULTURE The Soil The rocks of the Philippines are chiefly of volcanic origin,^ and much of the soil has been derived from their disintegra- tion. In most cases it is a heavy red soil, exceedingly fertile on account of the minerals which it contains. It is much like the soils of the Hawaiian Islands, which also are of volcanic origin, and is well adapted to the growth of sugar, abaca, rubber, and the like. Large areas of the Philippines are covered with limestone, most of which is derived from coral. Residual soils of limestone formation are not very fertile, since the soluble part has been carried off by streams, and only the insoluble clay remains. However, the transported limestone soils, such as those found in the valleys and along the coastal plains near mountains covered with limestone, are exception- ally fertile. For instance, in Cebu the hillsides are not very fertile, whereas some of the best agricultural land in the Islands is to be found in the coves. Another fertile soil exist- ing in the Philippines is that from the disintegration of the sandstone. Of the transported soils two are exceptionally important: (1) the fluvial soils found in the valleys, which are very rich, on account of their chemical composition and their finely divided and loose state ; (2) a heavy, thick, grayish-blue soil, found at the base of many mountains and largely derived from rocks of volcanic origin, one of the best soils for rice growing. 1 For a discussion of soils in the Philippines, see Philippine Journal of Science^ Vol. V, No. 5, Sect, A. 178 Abaca and Coconuts about Mayon Volcano Rice Fields about Laguna de Bay PHILIPPINE SOILS 180 ECONOMIC CONDITIONS Climate The average yearly rainfall in the Philippines is 2200 mil- limeters (88 inches) ; all regions have an annual rainfall of at least 900 millimeters (36 inches). However, some of the regions which have the highest annual rainfall receive it during only six months of the year. In the chapter on rice it has been shown that the long dry season which occurs in western and central Luzon, and on the western coast of certain other islands, is an important factor in limiting the rice to one crop annually ; whereas on the eastern coasts the continuous rain- fall makes two and even three crops possible. Not only are there fewer quickly maturing crops in regions subject to a dry season, but without irrigation it is impossible in these regions to grow plants which take a year or more to mature. Abaca, rubber, and such long-maturing crops are therefore confined to those localities which have a fairly continuous rainfall throughout the year. Regions subject to heavy winds are not favorable to the growth of many plants. In the Philippines the best regions for abaca are those seldom or never visited by typhoons. Ex- cept in small, well-protected valleys rubber does not thrive in Luzon and neighboring islands, because of the destruction wrought by these violent storms. In the Batan Islands, on account of the typhoons to which those islands are subjected, certain roots have become the chief crops. The effect of temperature on agriculture is of great impor- tance, since for most products there are certain limits of tem- perature within which their growth is confined. Only a few agricultural products, such as corn and tobacco, have a wide range of growth in both temperate and tropical regions. A few other products of the temperate zone will grow in the tropics, but do not thrive there. Thus, the white potato will grow in the Philippines, but does not do well. Variation in temper- ature due to latitude is not great enough within the Philip- pines to create zones of agriculture. Mangosteens are strictly an equatorial fruit, and even in the Philippines are found only LOCAL CONDITIONS OF AGEICULTURE 181 in Sulu, Mindanao, and the southernmost part of the Visayan Islands ; but other products may be grown in the lowlands from Cagayan to Sulu. On the other hand, variations in tem- perature due to differences in altitude greatly affect plant life here. In the lower levels are found swamp and tropical forests, the coconut, bamboo, rice, sugar, and other lowland growth. At slightly higher elevations coffee and citrous fruits thrive best. Above 1000 meters (3000 feet) the tropical forest of the Phil- ippines gives way to pine ; it is in this region that many fruits and vegetables characteristic of the temperate and subtropical regions can be grown. Only a few high peaks of the Islands are covered with typically temperate-zone growths such as the forests of scrub oak. Transportation Facilities With people who live in so primitive a state as the Negritos, or even the Subanuns and mountain peoples, trans- portation facilities have little effect on the location of agricul- tural activities. The same may be said of families and groups among more advanced peoples who, through their own efforts, obtain from agriculture the products necessary for their exist- ence. However, as soon as the commercial idea is applied to agriculture, and crops are grown for exchange, transporta- tion becomes an important problem. In the Philippines the regions best suited to the cultivation of export crops are those along the coasts of the Islands, or those connected with the coasts by water transportation. With the advent of wheeled transportation plains and valleys have become important, since roads and railroads are constructed there rather cheaply. In general, then, it may be stated that the location and the character of agricultural activities is influenced (1) by the fertility and composition of the soil ; (2) by the amount and distribution of the rainfall ; (3) by the temperature ; (4) by the intensity of the winds ; (5) by the natural transportation facilities.^ iWhen agriculture becomes capitalistic, that is, when it is carried on by individuals and companies on a large scale requiring more than the 182 ECONOMIC CONDITIONS Philippine Agricultural Regions The results of these influences on agriculture in the Philip- pines are noticeable. Along the coasts of nearly all the Islands are found plains of greater or less extent, most of which have a fairly uniform surface, and slope gradually to- ward the sea. Coastal plains are nearly always fertile, since they are covered with sedimentary or volcanic deposits. More- over, transportation is usually easy both by land and by water. On the other hand, harbors bordering on coastal plains are apt to be few and poor. Most coastal plains were formed by the elevation of land masses, but most harbors are due to erosion and the sinking of land rather than to its upheaval. The most important coastal plains in the Philippines are those of the Ilocos provinces, Zambales, Mindoro Island, Antique Province, and Negros Island. But practically all the islands possess coastal plains of greater or less size, and even those found on the larger lakes, such as Laguna de Bay, are of importance. Because of their agricultural and transportation advantages, and because fishing can be carried on along their shores, the coastal plains of the Philippines are well populated in comparison with the interior regions. Another type of Philippine agricultural region of great fertility is the plain formed by the upheaval of the Islands. The Central Plain of Luzon (the granary of the Philippines), the Plain of Leyte, the Central Plain of Panay, and the Cotabato Plain contain the largest continuous stretches of agricultural land in the Philippines. The soil brought down from the surrounding mountains often covers these plains to a considerable depth. In the Central Plain of Luzon, and in labor of the owner and his family, two other considerations determine the location and character of agricultural activities: (6) the amount of labor available, and (7) the number of work animals and implements available, and the amount of machinery which exists or which can be acquired. The lack of sufficient labor has greatly influenced agriculture in Mindanao and other sparsely populated portions of the Philippines. The lack of work animals, of large agricultural machinery, and of modern sugar mills has retarded the growth of the sugar industry in Negros and other sugar regions. ^ Formosa PHTEIPPTNE ISLANDS CHIEF AGRICULTURAL REGIONS ^^ ENS'R. CO.,H.Y.\\ CHART XXVII. CHIEF PHILIPPINE AGRICULTURAL REGIONS 184 ECONOMIC CONDITIONS the Cotabato Plain, rivers offer cheap transportation, and road and railroad building is not difficult. Hence it is that these plains, so far as political conditions will permit, are among the richest and most densely populated regions in the Philip- pines. They are also the regions which offer greatest oppor- tunity for agricultural expansion in the future. Of Philippine valleys the Cagayan and Agusan are the most important, though many other small valleys, such as the Bicol and the Gandara, are very fertile. The population of the Philippines has not been dense enough to occupy more than the flood plains of these valleys. The great grassy stretches extending on each side are very fertile, but are harder to bring into and keep in cultivation than are the flood plains which annually receive sediment from overflows. In the Cagayan Valley the floods deposit from one to twenty-five millimeters of sediment on the flood plain every year. It is largely on account of the fertility thus added that tobacco of such good quality is continuously raised there. The rivers of these large valleys offer facilities for transpor- tation, but the swift current which often characterizes them lessens their value for this purpose. The valleys are subject to worse floods than are the plains, though it is probable that the increased fertility produced by the deposits of silt more than compensates for the damage wrought. Throughout the Philippines there are numerous small val- leys lying in the mountains or opening out into the coastal plains. These furnish some of the richest land for small farm- ing, but the difficulty in transporting the produce from them is usually so great that they are but sparsely settled. Many of them are not occupied at all. Another type of fertile Philippine agricultural region is the highland, good examples of which are found in south- western and southeastern Luzon. The soil is usually derived from disintegrated volcanic matter; its fertility and good drainage make it most suitable for such plants as the abaca and the coconut. These regions are sufficiently elevated for LOCAL CONDITIONS OF AGRICULTURE 185 the growth of coffee and other highland crops. The great drawback to these regions is the difficulty of transporting their products to the coasts, but this is now being overcome by the building of railroads.^ Of plateaus Benguet and the Bukidnon are the most important in the Philippines. Were it not for the difficul- ties of transportation, the Bukidnon plateau would undoubt- edly be a very rich region. The amount of arable land in Benguet is limited, but the transportation system now being developed will bring it into close connection with Manila. Plateaus occupy a peculiar position in the tropics, since temperate-zone and subtropical crops can be grown on them. Both these plateaus, for instance, have furnished coffee to the lowlands for many years ; Benguet will undoubtedly supply the Manila market with such temperate-zone products as berries and flowers. A few of the hills and low mountains of the Philippines support a considerable population, such as those of Cebu (the most densely populated of the large islands of the Philippines), where thousands of people eke out an existence from the shal- low limestone soil. The terraces of the mountains of northern Luzon have already been described. In other mountain regions agriculture takes the form of the kaingin system of clearings in the forest, such as those of the Subanuns. SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based oit the Text 1. Tabulate the important agricultural regions of the Philippines according to the following classification : (a) inland plains ; (h) great valleys ; (c) coastal plains ; (d) small valleys ; (e) highlands; (/) plateaus ; (cf) mountains. 1 This difficulty of transportation retarded the development of the high- land regions of the Philippines, and the land remained unclaimed. As the result of recent settlement, land is now owned in small parcels. Hence these highland regions in the Philippines are usually very democratic, since nearly all persons are landholders, and wealth is rather evenly distributed. Many of these regions bid fair to develop into wealthy communities. 186 ECONOMIC CONDITIONS 2. Tabulate the advantages and disadvantages of the regions included in each of these classifications as to (a) composition and fertility of the soil, (b) amount and distribution of rainfall and its effect, (c) temperature, (d) intensity of winds, (e) natural transportation facilities. 3. Locate a certain region of the Philippines that you think might be developed into an important agricultural region, and bring in a report covering its possibilities. Suggestions for the Study of Local Conditions 1. Make a map of the province or locality showing (a) the soils, according to their formation, and according to the crops grown ; (b) the means of transportation, indicating the areas well and poorly provided, and explaining the effect of transportation facilities on the character of the crops grown. 2. Philippine soils in their relation to crops. Suggestions for Reports from References 1. Climate of the Philippines in relation to the location of agriculture. (See Miller and Policy's " Intermediate Geography," and illustrate the discussion with a chart on which the distribu- tion of rainfall in Tuguegarao, Candon, Calbayog, and Surigao are plotted.) 2. Philippine agricultural regions that depend for their pros- perity on natural means of water transportation. 3. Explain how the improvement in these will increase the agricultural value of the region. 4. Philippine agricultural regions that have been or are being developed as the result of the building of roads and railroads, for exampl'e, Nuava Ecija, Northern Camarines, and southern Tayabas. 5. Using data from the census on the culti- vated area by municipalities, prepare a map of the agricultural regions of the Philippines, and compare it with Chart XXVII. Selections on the Theory of Economics to be applied TO THE Material in the Chapter Nature as a factor of production. (Bullock, pages 32-35.) CHAPTER XI DEVELOPMENT I:N" AGRICULTURE Advances made in agriculture by primitive peoples are due to environment, necessity, chance, and observation, rather than to knowledge. Even among civilized peoples, who understand the use of the plow and other advanced agricultural implements, who practice crop rotation, fertiliza- tion of the soil, and selection of seed, development in agriculture has also been the result of environment, necessity, and observation, rather than of science. For instance, people of the United States have developed machinery for agricul- tural purposes because their problem has been to cultivate large areas with little labor. On the other hand, the people of many parts of Europe and of Asia obtain greater yields per hectare, since they understand more thoroughly the principles of intensive cultivation. Their problem has been to obtain the greatest possible yield to feed the large number of people. Calamities The natural forces which bring about most calamities are usually too great for man to control, but he can so prepare himself for them as to recover quickly from their effects. Struggle with adverse conditions of nature has developed in him a vigor and resourcefulness w^hich forms a valuable national asset. Floods and high winds are the most common causes of calamities in the Philippines. Heavy rainfall at the head- waters of river valleys, such as the Cagayan, cause the streams to rise, sometimes far above their banks. Typhoons occasionally drive the sea a considerable distance inland, 187 188 ECONOMIC CONDITIONS causing the water of the rivers to overflow the land. The damage done by floods is usually the drowning of standing crops, the destruction of agricultural lands by changes in the river channels, injury to houses and agricultural implements, and the drowning of animals. Sea water is destructive both to crops and to soil. River water, however, is usually bene- ficial in the end; the overflow of the Cagayan River yearly enriches the soil of the flooded area; the amount of alluvial matter deposited by unusual floods often more than com- pensates for their damage. The damage may be prevented to a certain extent by so planting that the harvest comes before or after the floods usually occur. Typhoons bring with them high winds. In the northern part of Luzon they are of annual occurrence, and are pro- vided for in the character of the crops. In the central and southern parts of the Philippines typhoons are unusual, and their visitations are indeed calamities. Coconuts and abaca are the crops to which high winds are particularly injurious, and the effects of one storm may be felt for a long period of years. For instance, the injury done by the typhoon of 1908 to the yield of copra in Romblon lasted for more than five years. Eruptions of volcanoes affect only a small area ; but the destruction within this area is usually great. Mayon and Taal are the only volcanoes which have done any considerable damage within historic times. In 1754 Taal erupted from May to December; a large extent of cultivated land was destroyed by showers of ashes and mud, and by immense rainfall. 1 In 1911 another destructive eruption of Taal oc- curred, which killed hundreds of persons on the western side, covered the surrounding country with mud to a depth of from one to three feet, and destroyed or damaged the vegetation over a large area. The earthquake wave which the eruption caused was also destructive round the shores of the lake.2 In 1897 the flow of lava from Mayon Volcano 1 Census, 1903. 2 See ''The Eruption of Taal Volcano," Weather Bureau, 1911. DEVELOPMENT IN AGRICULTURE 189 destroyed plantations and towns on its sides and base.^ The rapidity with which volcanic ejecta decompose, however, and the richness of the soil thus formed, often compensate for the damage wrought to agricultural land and to property in general. The effects of calamities do not last long in the Philip- pines ; for both the soil and the people show remarkable recu- perative powers. Secondary effects may, however, persist for some time. For example, the typhoons which swept Samar in 1908 so reduced the crops that the people were forced to look to some other means of living than agriculture. The large weaving industry of Basey, Samar, is one indirect result of these typhoons. The number of mats woven on Romblon Island has been much greater because of the decrease in the yield of coconuts caused by the typhoon of 1908. Dry Seasons, Droughts, and Irrigation Droughts have not been discussed with other calamities, since, unlike them, their effects can be larg^y overcome. The regular annual period of drought, or dry season, which occurs for almost six months in central Luzon and the western parts of certain other islands, and for two or three months in parts, of the Visayas, has already been discussed with respect to its influence on the number and character of the crops, and on the seasons of agricultural activity. Extraordinary droughts, however, also occur in the Philippines. Sometimes they affect only a very small area, but at long intervals the entire Archi- pelago is subject to unseasonable dry periods. Probably the most serious of these occurred in eight months of the season of 1911-1912. In June, July, and August there were numer- ous typhoons, bringing copious rains, and planting conditions were excellent. In the critical months for the rice crop, Octo- ber, November, and December, there was almost a total lack 1 See " La Erupc<5n del Volcan May6n," by P. Jos6 Coronas, S. J., Manila, 1898. 190 ECONOMIC CONDITIONS of rain throughout the Islands and then- vicinity.^ This caused a large reduction in the rice crop. Corn, root crops, coconuts, abaca, and almost all the other crops were injured by the long period of dry weather. If extraordinary droughts happen at planting time, they usually result only in delay and a late field crop. If a field crop has already been planted, drought may cause its destruc- tion or a reduced yield. The yield of long-maturing crops, such as coconuts and abaca, is always affected by continued dry weather; abaca may even be destroyed by drought of long duration. The effect of drought can be reduced by conserving the moisture in the ground. The method of accomplishing this is called dry farming. It has been highly developed in the United States on the dry plains of the Northwest. Certain regions there have only a small annual rainfall, which occurs during a very short period. When the rains are over, the crops are planted. Then they are frequently cultivated shal- low, so that a layer of dust forms over the field. This dust mulch prevents the escape of moisture from the ground by evaporation, and conserves it for the use of the plants. It is probable that by this system certain field crops, such as millets and corn, could be grown in the Philippines during the ordinary period of the dry season, and that the yield of long-maturing crops could be increased. During periods of unusual drought dust mulching is of the utmost importance in keeping long-maturing plants alive. During the extreme drought of 1911-1912, for example, coconut groves which were cultivated shallow were little affected in their yield, but uncultivated groves decreased one half in the produc- tion of nuts. In Davao it is reported that the abaca stalks on an uncultivated plantation fell over from lack of moisture, but that on a neighboring plantation they were kept alive by shallow cultivation, which conserved the moisture. The 1 See "The Extraordinary Drought in the Philippines, October, 1911, to May, 1912," Weather Bureau, Manila. DEVELOPMENT IN AGRICULTURE 191 yield on the latter plantation was interrupted for only six months ; on the former plantation no stripping could be done for more than two years. The cost of cultivation necessary to produce and maintain the soil mulch is so little that this method is generally practicable. Soil mulch merely reduces the damage done by drought. The effect of long periods of dry weather can be wholly over- come only through irrigation. Even among such primitive peoples as the Bontoks and the Ifugaos we find that the value of irrigation is known, and that the more simple methods of accomplishing it are practiced. Irrigation for the production of crops was in use thousands of years before the Christian Era. In all parts of the world are found remnants of irriga- tion works, some of them of large size. Regions still exist wherein water is carried to the fields by human beings. Many devices, worked by human or animal power or by river cur- rents, are used to raise water and spread it over the fields. Occasionally the topography of the land to be irrigated and the position of the streams is such that water can be diverted from rivers by dams. Small areas can be irrigated by means of pumps. In certain parts of the world the geological forma- tion is such that good results are obtained from artesian wells ; these are often used over a considerable area. None of these methods, however, supplies a sufficient amount of water to be of great value, and with the exception of arte- sian wells all of them depend more or less directly on rainfall. Throughout the world reservoirs and irrigation systems are now being built to insure a constant supply of water, and to bring into cultivation lands which otherwise could not be used. Sometimes these structures owe their origin to private capital, but their great size and the number of interests involved often necessitate government ownership. In India there are 18,000,000 hectares of land under irri- gation. Of these 7,200,000 hectares are irrigated by govern- ment works.i Egypt has about 2,500,000 hectares under 1 Robert Buston Buchley's " Irrigation Works of India." 192 ECONOMIC CONDITIONS irrigation, an area which supports a population of 5,000,000, in addition to the payment of an immense interest on the national debt. Cape Province, in South Africa, is wasting enough water to supply more than 1,000,000 hectares of land. There are also systems supplying water to about 200,000 hectares.^ Australia supplies irrigating systems with water from artesian wells. The annual yield from these wells in the Murray River basin alone amounts to more than 750,000,000 cubic meters. These, with the other water sup- plies of that country, are under government control.^ The Filipinos have several primitive forms of irrigation. In a few places human treadmills, such as are found through- out the East, are seen. Sweeps are sometimes worked by human power to raise pails of water and empty them into irrigartion ditches. Carabaos are often used to turn water wheels ; but these wheels are sometimes turned by the force of the current. Temporary dams are frequently built to divert water from rivers. Pumps are being employed to a small extent. In the Central Plain of Luzon artesian wells are being used to irrigate small tracts.^ It is estimated that permanent systems of irrigation in the Islands supply water to about 50,000 hectares of land. These systems usually con- sist of permanent dams for diverting rivers, and of ditches for leading water to the fields. In a few places there are reservoirs. Irrigation in the Philippines is of the most importance to rice ; it has already been discussed in the chapter dealing with that cereal. The irrigation of sugar cane and other crops will generally be profitable. In regions subject to a dry season irrigation will result in the growing of more than one crop of rice or other cereal during the year, and will permit the intro- duction of long-maturing crops, such as abaca. In all regions, 1 Bulletin of the Imperial Institute, June, 1912. 2 Review of Reviews, XXXIV, 620. 3 These wells were originally sunk by the government to get a supply of potable and clean water. They are now found throughout the Philippines, but the best are in the Central Plain of Luzon, where the geological formation is favorable. DEVELOPMENT IN AGRICULTURE 193 whether subject to a regular dry season or to an even distri- bution of rain throughout the year, irrigation will give greater stability to agriculture by making crops independent of rainfall. Small irrigation systems may be built by the owners of large haciendas. Combinations of local capital may be sufficient to undertake the construction and maintenance of systems such as are found in Ilocos Norte, northern Tarlac, and Boac, in Marinduque. The general interest taken in irrigation is reflected in the claims filed for water rights, and in the liti- gation over them. Corporations and associations are building new irrigation systems of small size here and there in all parts of the Islands. From 1912 to 1917 about eight hundred projects were under consideration or construction. However, almost all irrigation projects must depend on the initiative of the government. In the past few years the Bureau of Public Works has repaired several of the old irrigation systems, and greatly increased their efficiency. At the same time, however, the construction of new, large systems has received the greatest amount of attention. In India the deciding question in determining what re- gions should first receive the aid of the government in the form of irrigation works has been. Will it pay? In the Philippines the officials have to consider the amount of land to be benefited and the cost per hectare, the attitude of the landowners toward the project, their ability to repay to the government the initial cost plus the running expenses, and the location of the project with respect to other projects of a similar sort. It is recognized that government works should be distributed throughout the Islands. The revised irrigation law provides for the collection of water rent and run- ning expenses of the plant in the form of taxes, the water rent going into a fund for the repayment of the original cost. Since this repayment tax is spread over a term of years, the farmer is not seriously incommoded, since the total addition to his taxes is, in normal years, but a small part of the addi- tional income received from a more abundant crop. Contrary 194 ECONOMIC CONDITIONS to the custom in many countries, notably India, the govern- ment expects no direct revenue from the irrigation systems which it builds. The funds expended are regarded as the money of the people devoted to the purpose of increasing the economic prosperity of the country. Guided largely by these considerations, the officials in charge of the work are studying every inhabited region where the water supply and general topography seem favor- able for irrigation. Thus projects in Cagayan and the Ilocos provinces are considered along with those of central and southern Luzon, Panay, and Leyte ; even central Mindanao, especially the valley of the Cotabato River, has received a preliminary examination. In this way irrigable land amounting to about 485,000 hectares has been located. ^ The work is one naturally attended with many difficulties and disappointments. The contours of the land must be accurately determined, a task which may involve weeks or months of labor, often in the depth of the jungle. The rivers and streams of the region must be examined, and both the maximum and the minimum flow of water accurately measured. In the typhoon belt this is extremely important; for although money must not be wasted in excessively strong works, all construction must be strong enough to withstand the greatest possible strain, even if the rainfall which causes the strain may not come for a period of many years. Then, too, the composition of the strata beneath the dams and main canals must be carefully determined by test wells. The strata must be of a kind not only to support the weight of the dam, but to retain the water. This is of the utmost importance, since any system, however expensive, could be rendered useless by the excessive seepage of water, and the collapse of a dam could be brought about by the flow of underground waters. The irrigation system on the friar lands of Cavite furnishes an example of a successful project. This system contains '^Philippine Agricultural Review, Vol. V, No. 4, p. 178. DEVELOPMENT IN AGRICULTURE 195 135 miles of ditches, 117 dams, and 12.5 miles of tunnels. These convey water to 21,000 hectares of land, which pro- duce yearly about 1,000,000 cavans of rice. The product per hectare averages from two to four times that of the nonirrigated lands of the immediate vicinity.^ The system of San Miguel, in Tarlac, irrigates 4000 hectares of land ; that at Pilar, in Bataan, 1000 hectares. The projected Santa Bar- bara system, in Iloilo Province, will irrigate 4000 hectares, at an estimated total cost of F190 per hectare ; it is proposed for construction as soon as legal requirements have been met. A large number of plans of smaller systems have been examined, and construction will begin as soon as conditions permit. These projects include nearly every province in the Islands. Unfortunately the natural difficulties are not the only ones with which the engineers have to contend. In some cases a system has been surveyed and found practicable, only to be given up because of the opposition of the very farmers whom it was intended to benefit. Various reasons are given for this opposition, but it seems to be based on a fear of the annual taxes and the alienation of prior water rights. Such opposition can best be met by showing the benefits of the completed systems; it is dying out as new systems are put into operation in different sections. To be successful, any system under government control must be administered in a fair and just manner, as regards both the collection of dues and the distribution of the water. Only in this way can the superintendent win and retain the confidence and good will of the farniers with whom he has to deal. Irrigation in the Philippines is of the greatest importance. It increases the food supply by increasing the number of crops, and gives stability to agriculture by insuring the pro- duction of full crops. In general, however, the possibilities for irrigation are still under investigation. The activities of the Bureau of Public Works during 1918, as regards irrigation, were confined largely to the 1 Manila Times, May 15, 1912. 196 ECONOMIC CONDITIONS maintenance of systems constructed by the government, the repair and improvement of systems in the Friar Lands Estates, and the surveys and prehminary field investigations of new projects. Six field parties were employed in making surveys : San Jose project, Province of Nueva Ecija ; Laoag- Vintar project, Province of Ilocos Norte ; Botolan project, Province of Zambales ; Naic project. Province of Cavite ; San Mateo project. Province of Rizal ; Bulo River project, Province of Bulacan. The area of land covered by these projects is approximately twenty-three thousand hectares. In addition to these surveys, which had been conducted under the supervision of the Central Office, other similar projects had also been investigated by the district engineers. In the department which determines water rights there were filed, during the year 1918, a hundred and thirty-two applications for water rights, and a Imndred and twenty-three statements of existing water rights. Surveys and field investigations had been completed on the following systems oi irrigation : Pansol Creek, Province of Bataan ; Talisay River, Province of Bataan ; Nayom River, Provinces of Zambales and Pangasinan ; Sierra Bullones River, Province of Bohol ; Bued River, Provinces of Pangasinan and La Union. In addition to these there were six systems of which the surveys had been completed before 1918, but for which the priority had not yet been determined. The surveys and field investigations of the following systems were to be made: Parasapas Creek, Province of Pangasinan ; Nagsincaoan River, Province of Ilocos Sur ; Ubbog Estero, Province of Ilocos Sur ; Maitim River, Province of Laguna ; Ange River, Province of Pampanga ; Nasisi River, Province of Albay ; Ynarihan River, Province of Camarines ; Gugo Estero, Province of Tarlac ; Buge Estero, Province of Tarlac. DEVELOPMENT IN AGRICULTURE 197 The area of land affected by the above systems is approxi- mately ten thousand hectares, with an approximate value of three million pesos. Pests Crops are more or less subject to attack by pests. Some pests have little ill effect on the vitality of plants and the amount of yield. Others are very destructive. It is seldom that pests can be wholly exterminated, but most of them can be held in check, or the effects of their ravages lessened. A few of the methods used in connection with different pests may be mentioned : 1. The most obvious methods, and those used by primitive and civilized peoples alike, are the mechanical protections, such as scarecrows for birds, and fences for pigs. In some regions bands of tar or other substances are applied to the trunks of trees to prevent worms and insects from crawling up into the foliage. 2. Many pests may be killed by hand or by mechanical means. For instance, locusts are driven into ditches, and there exterminated ; rats and other animals are caught in traps ; tobacco worms are picked from the plants. 3. Poisons and insecticides are used throughout the world. 4. By careful study the breeding places of pests may be discovered ; this knowledge offers an excellent method of control. The destruction of rubbish and dead trees protects coconut groves from the rhinoceros beetle and other beetles. 5. Sometimes certain forms of life destructive to pests are found. The increase of any insect would be very large if the natural restraints were removed. For instance, a single female of one of the commonest moths lays more than five hundred eggs. Two hundred of these may, under artificial conditions, become moths ; these produce fifty thousand eggs. Of these again twenty thousand moths reach maturity and produce five million eggs. This is the rate of increase of 198 ECONOMIC co:n'ditions such insects living in captivity ; it shows that the increase of one moth in three generations is equivalent to ten large and devastating swarms of caterpillars. In a wild state, however, insects do not multiply at this rapid rate, because of the checks imposed by climate, lack of food, and enemies. Heavy rains, wind, storms, and cool weather do much to check their multiplication. In regions where certain vegeta- tion dies down for a part of the year, for example, during the dry season in parts of the Philippines, food is lacking for many insects. Enemies of pests include parasites, the predatory insects, birds, bats, and the like. When insects become abundant, these enemies attack them and reduce their number. Fungoid and bacterial diseases also kill insects, as they do men and domestic animals. These natural checks tend to prevent a large ratio of increase ; if sometimes they were not temporarily suspended, they would keep the relative numbers of insects constant. Thus nature regulates the multiplying of insects, except where man artificially changes conditions of life in one or more of the following ways: (1) by introducing new insect or animal life ; (2) by modifying the climate through the destruction of forests or the construction of large artificial bodies of water ; (3) by destroying insectivorous birds ; (4) finally, and most important, by altering plant life through agriculture or forestry. For instance, breeding places for locusts have been greatly extended through the destruction of forests and the growth of cogon grass. In the Philippines nearly all the insect enemies of the crops are kept in check by natural causes. One of the most important enemies of a destructive insect is the fly which lays its eggs in the larvae of the pest. On hatching out, the larvae of the fly destroy the larvae of the pest. Many pests in the Phihppines are thus controlled by flies. When certain climatic conditions are favorable, there are extraordinary outbreaks in the spread of the rice caterpillar. The larvae of DEVELOPMENT IK AGRICULTURE 199 the flies seem to increase in like proportion, however, and thus no outbreak of this pest appears two years in succession.^ 6. Often one variety of a plant, more hardy and better able to withstand the attacks of pests, can be substituted for other varieties. For instance, the coffee industry of the Orient (in- cluding the Philippines) was practically destroyed by blight, which cannot be controlled below a certain altitude. Arabian coffee is most susceptible to this disease. On the other hand, other species of coffee, such as the Liberian, are more or less resistant to the blight. Hence such varieties and their hybrids are frequently planted instead of the Arabian. 7. Lessening the effect of pests by changing the season of planting is sometimes resorted to. An excellent example of this is afforded by the history of the cotton-boll weevil. These insects have found their way into the United States from Mexico ; they have spread over half the total cotton region of the country. Although much has been done to control or destroy them, no parasite or other natural enemy has been dis- covered. They cannot be poisoned, and mechanical means of 1 It is but natural that man should act on this knowledge of the destruc- tion of insects by their enemies, and attempt to discover and introduce forms of life that will be destructive to pests. The most advanced agricul- tural countries have been lavish of money and labor in searching for such checks, but thus far they have met almost complete failure. The scale which attacked the orange groves in California was destroyed by a ladybug introduced from Australia, but this is an exceptional case, since the scale in question was also introduced from Australia. The inoculation of rats with virus produces an epidemic disease destructive to them. Large amounts of time and money have been spent in searching for a fungus which will exterminate locusts. The danger of introducing animal or vegetable life which will in turn become destructive to agriculture must be recognized. For instance, ferrets have been introduced to kill off rats, but are themselves very destructive to poultry. The gypsy moth was introduced into the New England States in connection with scientific study, and has already proved exceedingly destructive to the foliage of trees. Millions of dollars have been spent in attempts to eliminate this pest, and it is only with great diffi- culty kept in control. Babbits were introduced into Australia for sport, but they multiplied so rapidly that they became one of the greatest sources of damage to many crops. (See H. Manwell-Lef ray's " Indian Insect Pests," Calcutta, 1906, office of the Superintendent of Government Printing, India.) 200 ECONOMIC CONDITIONS killing them have failed. A study of their life history, however, has brought out the fact that they are comparatively few in number immediately after winter, but multiply rapidly during the warm weather. It had been the custom in Texas to plant cotton late. The plan now adopted is to plant early-ripening varieties, to secure a good crop before the army of weevils has nearly reached its maximum. The cotton field is then plowed up and burned, to kill as many weevils as possible. Thus a profitable crop of cotton is grown where, under old conditions, nine tenths of the normal crop was destroyed.^ The boll weevil is found in the Philippines also. The chief agricultural pests in the Philippines have already been mentioned in connection with crops for food and export. Rats are particularly destructive to rice. They may be held in check by traps, poison, or virus. The chief enemies of corn are weevils, which can be prevented by growing a hard variety of grain well covered by husk. Swarms of locusts sometimes appear in the Philippines, particularly after an extraordinary dry spell, such as that of 1911-1912, which is favorable for their growth. They are destructive to many crops, such as rice, sugar cane, corn, and coconuts. Although they are attacked by many predacious animals, insects, and fungi, they increase so rapidly that they can be destroyed only by mechanical means or by insecticides. In the Philippines they are driven into trenches and killed, or insecticides such as arsenic and kerosene are used. Locusts breed in grasslands ; when the Philippines become more settled, they will probably disappear. In the meantime their occasional advent makes necessary not only the cooperation of the inhabitants of the regions affected, but the assistance of the government to annihilate the swarms of adults, and the young before they can fly. The control of coconut beetles by the destruction of their breeding places has already been discussed. The tobacco worms can be held in check by picking them from > Review of Keviews, February, 1904, pp. 188-191. A Swarm settled on Cultivated Vegetation Photo bv Bureau of Agriculture Effect on a Cornfield LOCUSTS 202 ECONOMIC CONDITIONS the plants, and by trapping the moths by light. In sparsely populated regions wild hogs and deer are destructive unless kept out of the fields by strong fences ; they are particularly dangerous to the numerous new coconut plantations. Only one important industry in the Philippines has been seriously affected by pests, and that is the coffee industry ; in 1889 it was practically destroyed, but is again becoming im- portant in certain highland regions. In general, it may be stated that, in view of the climate and the small amount of attention given to pests by the agriculturists, the destruction wrought by them is very small indeed. The natural checks hold most of them in control. Agricultural Machinery Civilized men have far outdistanced primitive tribes in cul- tivating the soil. The kaingin system among the Subanuns has already been discussed; it has been shown that these people cannot use the same land for a long series of crops, because their implements are too crude to work in hardened soil covered with grass. Moreover, they do not understand how to treat the soil to prevent it from hardening and to retard its exhaustion. Kaingin are also made by the Filipinos to a small extent. Many clearings of a permanent nature are also being made each year ; for as population increases, new land must be brought into cultivation. In forests the under- growth is cut down and burned, the large trees are felled, destroyed, or removed, and the stumps are pulled up, blown out by dynamite, or burned. The first crop planted is often corn. On the Manobo farm of Butuan it has been demon- strated that three years are required to clear forest land and put the heavy, clayey soil in condition for general crops. The cultivation of legumes and the use of green manure have met with great success in preparing the soil. Cogon grasslands are burned off, broken up four or five times with the plow, well harrowed, and planted. The grasslands of the Philippines DEVELOPMENT IN AGRICULTURE 203 are best brought into cultivation by tractor or cable plows, which are able to tear the mass of roots apart. The most primitive forms of agricultural implements are those used in the hack system, that is, the digging stick, the wooden shovel, and the hoe. Subanun and mountain peoples, as we have seen, have not advanced beyond this system. The Filipinos, however, employ the plow and the harrow almost entirely. Indeed, as has been seen in the rice industry, when carabaos and cattle are not available for pull- ing plows, agriculture languishes or stops. The Filipino plow and harrow are primitive, but are being grad- ually superseded by more advanced forms. The plow in its sim- plest form consists of a crooked limb of a tree pointed at one end. This crude, one- handled affair merely scratches the top of the soil. A cast-iron share and moldboard are now generally attached, and do fairly good work. The Philippine harrow is made of bamboo. It does not pulverize the ground thoroughly enough to produce a well-prepared soil. Cultivation of crops in the Philippines is done by the primitive plow or by hand. Except in a few places where special machinery has been introduced, the crops are harvested by hand. The invention or adaptation of machinery is not a simple matter; as mentioned in the discussion of rice machinery, it must be the product of experience. For instance, all the heavy PHILirrixNK I'LUW AM» HAKKUW 204 ECONOMIC CONDITIONS plows imported into the Philippines have proved unsuccessful ; the lighter and smaller plows have given satisfaction, but are too expensive. Furthermore, the point at which the carabao is attached to the plow must be lower than that at which the American horse is hitched. Experience has proved that plow points and shares made of the iron from Angat, in Bulacan, give great satisfaction in most Philippine soil. From this com- position of metal probably better plows can be made than those which are at present being imported into the Philippines. A MODERN PLOW AT WORK Until 1910 little had been accomplished in the introduction of more advanced agricultural machinery into the Philippines. Recently, however, much interest has been shown, and large and small machinery has been imported in considerable quan- tity. Much can be done in adapting such machinery to local conditions. The problems connected with agricultural machin- ery in the Philippines relate to two classes: small agricul- tural implements for small owners and small fields ; large machinery adapted for use on sugar plantations and other large areas. For the small farmers a light general plow, a hght PLOWING WITH A GASOLINE TRACTION ENGINE, AN OLD AND GEN- ERALLY UNSUCCESSFUL TYPE IN THE PHILIPPINES A SMALL KEROSENE-BURNING TRACTOR THAT HAS PROVED SATISFAC- TORY IN THE PHILIPPINES ON SUGAR LANDS AND OTHER DRY LANDS 206 ECONOMIC CONDITIONS disk harrow, an iron smoothing harrow, one-row corn planters and drills, and two-shovel or three-shovel cultivators are neces- sary. These must be built to sell within the purchasing power of the small owner. For large sugar plantations and other estates power machines, both traction and cable, are required ; these also must meet the local conditions of soil and cultivation.^ Remedies for the Exhaustion of Soil The tendency of plants to exhaust the soil can be retarded or prevented in four ways: 1. Exhaustion may be retarded in certain instances by fallowing. This is practiced in the Philippines in the culti- vation of sugar cane, where after the crop is gathered the land is allowed to remain idle. If only one crop is raised, and the fields are allowed to lie idle during the dry season, rice does not seem to exhaust the land. Cases may be cited where large areas have grown rice for at least a hundred years, and still produce crops without the use of fertilizer; this is probably due to the effect of the sun and air on the soil during the dry season. Nearly all the soils given to rice crack open when exposed to the air and the sun.^ 2. The fertility of the soil may also be mamtained by rotating certain crops. In temperate regions the rotation of crops has been carefully studied, but not much investigation has been made in the tropics. One authority ,3 however, has suggested that such crops as yams (ubi, etc.) be planted the first year, corn the second, sweet potatoes (camotes) the third, and castor oil or some such crop the fourth. Sugar cane is frequently followed by beans and corn ; rice is then planted and followed by beans and corn again ; then comes a second crop of rice, after which sugar cane is again planted. An important effect of rotation is the resting of the various layers 1 From information by the machinery expert, Bureau of Agriculture. 2 Bulletin No. 2£, Bureau of Agriculture, Manila. * H. A. Alford NichoUs in "Tropical Agriculture." DEVELOPMENT IN AGRICULTURE 207 of soils, since the roots of different plants are sent down to different depths. In addition, a proper system of crop rota- tion prevents vegetable and animal pests. Although different crops are planted one after another in the Philippines, the idea of the planter is not to rest the soil, but rather to use the land as much as possible. In the Cagayan Valley tobacco and corn are rotated. In other districts rice alternates with sweet potatoes or other tubers. 3. Some plants, such as green gram and the cowpea, gather nitrogen with their roots, and leave it in the soil. Many times the plant is not used at all, but is cut off before it matures and turned into the soil. These crops are planted with or before starch crops, such as the potato, the growth of which is aided by the nitrogen thus left in the soil. This fact has been under- stood in the Philippines, and green gram is sometimes planted before a starch crop. The cowpea and manioc have been rec- ommended as crops which can be planted together, the cow- pea supplying the nitrogen needed by the manioc.^ In the regions affected by the dry season, but provided with irriga- tion facilities, a crop rotation of corn with cowpeas between the rows, planted during the dry season and followed by two crops of rice, would probably be successful. Since the first period in the growth of rice occurs in seed beds, it is possible to accomplish this rotation within the space of one year. 4. Exhaustion of the soil may be prevented by adding fer- tilizers to it. Fertilizers are usually divided into two classes : («) the general fertilizers, which include farmyard manure, ashes of the waste part of crops produced on the land, the waste products of towns, and the like ; (6) special fertilizers, or artificial fertilizers, sometimes also called commercial ferti- lizers, which contain large quantities of nitrogen, phosphates, lime, and potash, in varying proportion, according to the crops. Special fertilizers are made from numerous products, such as guano, bones, oil cakes, slag, shells, gypsum, and many other 1 Journal of Science, Vol. Ill, No. 2, Sect. A. 208 ECONOMIC CONDITIONS minerals. Unless these fertilizers are applied properly, how- ever, they may do more harm than good. On account of the abundance and cheapness of land in most places the Filipinos have never carefully studied the remedies for the exhaustion of the soil. Improvement in Ceops In the first chapter it has been seen that most Negritos now plant a few crops; that the Subanuns are fairly well advanced both in the number of plants grown and in the variety produced ; and that the mountain peoples excel both these tribes in agriculture. It is a natural thing that man should eventually plant the roots and cereals which he primitively found and consumed in a wild state. When he has grasped the idea of agriculture, he increases the number and quality of his crops by importing new plants, and by breeding, cultivating, and selecting them. Improvement in cultivation is illustrated by every crop now grown by man. Plants freed from the noxious effects of weeds, and cultivated in soil more or less carefully prepared, produce their fruit in larger proportions than when growing wild. Moreover, the greater the care exercised in cultivatmg the crop, the greater is its utility. The kernels of grains have increased in size and number over the wild grasses from which they came. Vegetables have increased in size and palatability. The size, color, and flavor of fruits have been improved, and the seeds of many of them have been reduced in size or even eliminated. The tendency of plants to improve in favorable localities with careful cultivation is emphasized by selecting the seeds of the best plants for reproduction. Less advanced agricultural peoples usually practice seed selection unwittingly. Accord- ing to Mr. Roy F. Barton, the excellence of rice in Ifugao is probably due in great part to the selection of seed.^ In most 1 Economic Report by Roy F. Barton, Ifugao. An Excellent Type Photo by Bureau of Agriculture An Inferior Type CITROUS FRUITS Photo by Bureau of Agricultuw 210 ECONOMIC CONDITIONS districts the largest heads having the largest grains are care- fully selected and bound into bundles for the next year's planting; this custom, however, is not due to any scientific knowledge on the part of the Ifugaos, but to a religious super- stition, for they believe that if large grains from large heads are planted, the next year's crop will have large grains and large heads. Improvement by selection is understood and intelligently carried out only among the most advanced agri- cultural peoples. Thus varieties of wheat from the northern part of North America mature in much less time than those from the southern part ; as has already been noted, the intro- duction of the quickly maturing northern cottons into Texas has partly solved the problem of the boll weevil. In the United States flax plants are grown for their seed, in Russia for their fiber. In many parts of the Philippines the pineapple plant is valued for its fiber rather than for its fruit. In the United States one variety of corn may be grown because it is rich in oil, another because it contains more starch in propor- tion to the other constituents. In the same way certain wheats are selected and grown for the macaroni trade, since these con- tain a larger proportion of gluten than the ordinary wheats. In general, it is true that the Filipinos do not understand the improvement of plants by seed selection. On the contrary, selection in certain crops is often so made that the best plants are consumed or sold, the poorest being left to produce the seed for the next season's crop. Perhaps one exception should be noted, and that is the selection of the variety of rice. In a few localities the best varieties are always selected. After the drought of 1911-1912 early varieties were planted in many localities, so that the crop, being planted late, would mature more rapidly than usual. But, as has already been noted in the discussion of rice, it is seldom that any attempt is made to select the best heads in the field for raising the next season's crop. Probably every crop grown by Filipino agriculturists could be improved by selection. DEVELOPMENT IN AGRICULTURE 211 It must not be thought that the great advance made in the varieties and types of plants has resulted only from selection in the fields. Certain men have made the evolution of new plants their life work ; their results have been accomplished both by selection and by crossbreeding. Examples may be taken from almost every kind of agriculture. Two of impor- tance to the Philippines are corn with ears well covered by the husk as a protection against weevils, and the hybrid coffees, which are more resistant to the coffee pest than the Arabian species. Diversity of Crops The Philippines are an excellent example of a country where agriculture is largely dependent on foreign plants. We do not know what plants were brought into the Philippines before the arrival of the Spaniards, but the Europeans found already growing there rice, coconuts, sugar cane, yams, taro, bananas (including abaca), and several other plants of minor utility. Since that time tobacco, corn, maguey, cacao, coffee, the papaya, chico, guava, a great variety of vegetables, and several other minor economic plants have been introduced from Central America and other parts of the tropics. Even to-day new plants, such as the fruit called the roselle, are bemg brought into the Philippines. The introduction of- plants was formerly due to the activities of merchants, travelers, or sea captains ; but to-day governments and even private individuals send out agricultural explorers to search the world over for plants that will grow in certain soils and climates. Thus the agriculture of all advanced countries is becoming more and more diversified. It must not be thought that diversity of production is synon- ymous with self-sufficiency. The policy which has for its aim the domestic production of all articles required by the family, the community, or the country is open to criticism. On the other hand, the policy which makes the agriculturist, the agricul- tural community, or the country dependent on one crop places 212 ECONOMIC CONDITIONS agriculture on an unstable basis, particularly in the tropics, where the amount of yield and the demand for certain agricul- tural products fluctuate so much. The history of commercial tropical agriculture seems to present a succession of rich crops. The uses of a certain tropical plant being recognized in Europe and America, its planting was begun in the tropics. A brisk demand for its product ensued, and good returns were realized. Then there was a rush to extend the plantings and to take advantage of the rising prices and large profits. Methods of planting and of producing the commodity exported received little attention. There was much waste from poor methods, and the land was not utilized to its full capacity because energy was concentrated on this one crop. Extensive rather than intensive methods were employed, but large profits were made by reason of the high prices obtained for the product. But the turning point was always reached; then the in- dustry was given up, or was placed on a stable basis, so that good profits might be made through careful methods of agri- culture. Sugar of the West Indies is an example of an industry almost destroyed and later placed on a sound basis. Enormous profits were first made with crude methods; but as soon as economic methods and government aid produced sugar more cheaply from beets, the sugar industry was almost abandoned. It was renewed only by adopting improved methods from the beet-sugar industry. In Ceylon the profits in coffee were wiped out by a pest; later the Cinchona industry felt the effects of overproduction. The indigo plantations which for a time produced such large fortunes in the Ilocos provinces of the Philippines were made unprofitable by the production of synthetic indigo. The competition of sisal fiber helped to reduce the profits from abaca plantations, and will probably affect that industry seriously unless better methods are employed in the cultivation and stripping of abaca. Millions of coconuts are now being planted in the tropics. This is due to the high prices offered for copra. But the demand will sometime be supplied, and profits will then be made only from groves which are well DEVELOPMENT IN AGRICULTURE 213 planted and cared for, and of which the product is carefully prepared. The small plantings of maguey are profitable in the Philippines when the price of agave fibers is high. With the increased production and low price, maguey is profitable only in large plantations where every advantage can be taken of the reduced cost of large production and of most advanced methods. Since the Philippines produce export crops, they are depend- ent on foreign countries for a large portion of their food supply. The Islands import rice because large regions produce abaca fiber, copra, sugar, or tobacco for export, and take rice in ex- change. Hence a short crop in southeastern Asia, or political unrest there, means a curtailment of the rice supply of the Philippines, high prices, and suffering among the poor. The ideal condition would be one in which the Philippines produce enough rice to supply local needs, raising and exporting prod- ucts only in exchange for cotton goods, steel, luxuries, and other articles which cannot be produced here at all, or only at a much higher cost than that of imported goods. It is interesting to note that Laguna Province was not much affected by the scarcity of food after the drought of 1911-1912 for the reason that the diversified products raised there insured the people against famine.^ On the other hand, after the typhoon of 1898, which partially destroyed the copra and abaca of Masbate, the rice imports into Masbate dimin- ished because the people had nothing left to exchange for rice.^ This condition caused a considerable amount of suffering among them, and many had to take to the hills to find food. Another interesting example is that of the people of Cagayan Jolo, who had depended almost entirely for their living on the exportation of copra and cattle, and had bought their rice from Palawan.3 In 1910 this source of supply was suddenly cut off ; several trading boats were sent to the Palawan coasts, 1 Economic report by R. G. McLeod. 2 Economic report by James C. Scott. * Economic report by H. C. Stanton. 214 ECONOMIC CONDITIONS but returned empty. Hence, although the people had plenty of copra and cattle, they were unable to buy rice, and had to subsist on coconuts and a limited amount of wild roots found on the island. They immediately began to plant camotes and rice, but on account of their inexperience their first crop was practically a failure. The second, however, was much better ; at present the possibility of a rice famine on Cagayan Jolo is remote. Another pertinent example may be taken from the abaca region of the Bicol Peninsula. If the occupants of the small abaca fields would plant food crops about their houses, instead of being dependent on abaca, they would be able to tide themselves over the times when the low price of hemp does not provide an adequate living. As it is, they abandon their fields when the price of hemp becomes so low that they cannot obtain a living by stripping it. In the two great crises of the hemp industry, namely, in 1911-1912 and 1919, the situation was complicated by an increase in the price of rice coincident with the decrease in the price of hemp. The plant- ing of more food crops and of coconuts in the abaca regions would give greater stability to the hemp industry by making the people less dependent on it for existence. It holds for the individual, the family, the community, and the country, that the safest and sanest condition of agriculture is one in which a sufficient amount of food is raised locally to provide for ordinary needs, and export crops are grown to exchange for products not necessary for existence. It is prob- able that the food crops raised in the Philippines could be increased to the point of supplying local demand without decreasing the amount of land devoted to export crops. The yield of rice and corn to the acre can be made larger, and much idle land can be brought into cultivation. The present difficulty of providing a domestic supply of food can be met not only by a general increase in the production of rice and corn, but by a greater utilization of small parcels of land in such crops as corn, sweet potatoes, beans, bananas, and gar- den vegetables, in patches for family or local consumption DEVELOPMENT IN AGRICULTURE 215 supplementary to the staple food. Great progress has already been made, but there is still much to be done before the Islands can be economically independent so far as food is concerned. The experiences of 1919 and the food shortage indicate the dangerous condition of the Islands. Summary The Philippines are not among the more advanced agricul- tural countries of the world. However, this is a situation not without hope. The farmers in what are now the advanced agricultural countries did not work out their problems by themselves alone. The greatest and most lasting results have been obtained from the study and experiments of expert agriculturists and scientists in different parts of the world, and have been carried to farmers by all the modern means of publicity, such as publications, lectures, and demonstrations. Efforts for bettering agricultural conditions in the Philip- pines have extended over a period of several years. It is probable that advance in agriculture in the Islands will be slow, but with the education of the masses, and with the example set for them by agriculturists who have had special training or experience, adoption of modern methods will ultimately follow. Like those of other countries, the farming districts in the Philippines differ in the character and the intelligence of their population. In the wealthiest and most progressive communities a considerable advance in agriculture has occurred in the last few years. Three factors that are bringing about general improvement in agriculture warrant special mention. First, the prosperity of the Philippines in recent years has increased the purchas- ing power of the agriculturists and given them the funds necessary to improve their lands and purchase machinery. Many farmers have used to advantage their increased means. Secondly, the government control of grading tobacco and 216 ECONOMIC CONDITIONS abaca has encouraged better methods in these crops. Thirdly, special schools exercise an ever-widening influence on agri- culture. By 1918 there had been established in the Islands twelve agricultural schools and fifteen farm schools, besides one hundred and twenty settlement farm schools. SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text I. What are the chief problems connected with the improve- ment in agriculture in the Philippines ? 2. Do these more closely resemble the development and problems of agriculture in the United States, or of agriculture in China and Japan ? Explain. 3. Explain the conditions and factors which are now bringing about improvement in Philippine agriculture. 4. The relation of capital to development in agriculture (a) in large agricultural enterprises ; (b) among small farmers. 5. Agricultural calamities in the Philippines. 6. How their effects may be mitigated. 7. How the government assists the victims. 8. The drought of 1912 was unfavorable to rice and favorable to sugar cane. Explain why. 9. You are the manager of a large sugar, coconut, or abaca plantation. A drought occurs. What steps might you take to save your crop? 10. Explain the value of irrigation in times of drought, with relation to water control and planting and harvesting ; in the growing of more than one crop annually on the same piece of land ; in the production of long-maturing crops. II. Compare the extent of irrigated lands of India, Egypt, and the Philippines. 12. Private and government activities in the Philippines in building irrigation systems ; what has been accomplished ; future activities as planned. 13. Explain the methods of controlling pests. 14. List the problems of agricultural pests in the Philippines under these methods. 15. State the problems with respect to agricultural machinery in the Philippines. DEVELOPMENT IN AGRICULTURE 217 16. From the history of the coffee, indigo, tobacco, sugar, and abaca industries select incidents showing the danger of depending on one crop. 17. How can this danger be guarded against ? 17. The Governor of the Department of Mindanao and Sulu has advised hog drives on a large scale among the settlers who are too limited in their means to fence their places with woven wire. The idea of these drives is that the whole community shall engage in them for the purpose of exterminating or driving away as many wild hogs as possible, and to make of the occasion a fiesta. Comment on this plan. 18. Under the authority of the Administrative Code of the year 1917 the Director of Agriculture forbade the importation of fresh fruits, except bananas and pineapples, from certain foreign countries infested with the Mediterranean fruit fly, including Spain, France, Italy, Australia, and the Hawaiian Islands. Explain why the government took this precaution (United States Agri- cultural Year Book, 1917). 19. The following is an extract from a newspaper of July 13, 1919: The economic situation of the province is reported to be the worst the people have ever experienced ; hemp, the only product that gives the people a living is hardly bought, while rice, upon which the people depend, is quoted at an excessively high price. How might the people of Sorsogon have averted this situation ? 20. What steps do you suppose they took to provide themselves with food ? 21. In spite of the stagnation of the hemp industry the Philip- pines as a whole were prosperous in 1919. Why ? 22. Would they have been prosperous if the hemp industry had been stagnant in 1907 ? (See Chart XI.) Suggestions for the Study of Local Conditions 1. The fundamental needs for improvement in agricultural methods in the locality. 2. Is any advance being made ? 3. Special reports on local pests. . 4. The citrus canker in its relation to the orange industry. (Where orange trees are important.) 218 ECONOMIC CONDITIONS 5. Extension of the use of the modern plow on small farms. 6. How it has been brought about. 7. Details of its construction. 8. Results from its use. 9. Diversity of crops in the locality. 10. List of plants recently introduced into the locality. 11. Remedies applied to the exhaustion of the soil. 12. Im- provements in crops noted. 13. If there is an area of land that you think capable of irriga- tion, bring in a report on the project, discussing such points as ownership of water rights ; source of water, amount, reliability ; proposed works ; contour of the land, drainage ; soils, crops ; distribution of the water among landowners ; water charges and payment of the cost and upkeep of the system. Suggestions for Reports from References 1. Go through current publications (including commercial geographies) and describe the different kinds of agricultural machinery found there. 2. How the industry of agricultural implements in the United States originated. 3. How it has been conducted. 4. Its relation to agriculture in America. 5. Its expansion into foreign countries. 6. During the World War the depletion of farm labor and work animals, and the necessity for increasing agricultural products, resulted in the successful application of the gasoline tractor to agriculture. These farm tractors are small and compact, and have been successful in the United States and Great Britain. The caterpillar tractors are adapted to moist and uneven ground. Bring in a report on the use of these small tractors in the Philip- pines ; explain their special importance here in relation to the rinderpest and the scarcity of work animals. 7. Types of machinery that might be used in rice cultivation. 8. Improvement in the plow used in the Philippines. 9. The food supply of the United States. (Finch and Baker.) 10. The conservation of fertility in rice fields. 11. A study of methods used in China and Japan. 12. Intensive agriculture in Japan. 13. A study of the methods of food production in an over- populated country. 14. Gardening in China. (King's "Farmers of Forty Centuries " may be consulted for all these topics.) DEVELOPMENT IN AGRICULTURE 219 15. From some civic biology ^such as Hodge and Dawson's) bring in a report on the economic importance of fungous diseases, illustrating it with examples from the Philippines. 16. In some biology (such as Hodge and Dawson's "Civic Biology ") read carefully the material on the control of pests. Make an outline of the problems and apply them so far as possible to the Philippines, using examples. 17. Philippine birds in their economic relation to man. (Publica- tions of the Bureau of Science will be of assistance on this subject.) 18. The control of dangerous agricultural pests by the Bureau of Agriculture under the authority of Acts 2515 and 1757. 19. In 1918 "Abaca heart rot" was found in Laguna and Cavite. It is thought to have originated in old, poorly cultivated patches of abaca. A quarantine was established, and experiments were undertaken for its control. Report on the history of this disease since that time. 20. The " pink disease " (fungous) was discovered in the Philip- pines in 1918. It had evidently been introduced on plants imported for experimental purposes. It attacks one hundred and seventy-five species of trees, many of them being fruit trees. Bring in a report on the course of this disease in the Philippines since 1918. 21. A comparison of the water resources of the United States and the Philippines. (Brigham, pages 180-201.) 22. Forests and their relation to water supply. 23. Deforesta- tion and deserts. 24. Reforestation in Europe, America, China, the Philippines. 25. How water rights are secured and protected by Philippine laws. Selection on the Theory of Economics to be applied TO THE Material in the Chapter Capital as a factor of production in agriculture. (Bullock, pages 45-48.) CHAPTER XII LAND TENURE Introduction The total land area of the Philippines is about 120,000 square miles, or 30,000,000 hectares/ It will be seen by referring to Chart XXVIII that one half of this area is forested and the other half open land. It is probable that all this area was once forested, and that not until the Malayan peoples came were kaingin and permanent clearings made which resulted in open lands. About one third of the original virgin forest remains ; one sixth has grown up again in second-growth forest ; about forty per cent is open grass- land ; and only ten per cent of the total area is now cultivated.^ The problems concerning tenure of Philippine agricultural hnds fall under two considerations: (1) the size of parcels; and (2) the system of cultivation with respect to laborer, owner, and country. Size of Parcels ' Most primitive peoples have no conception of ownership of land; for they do not occupy a region permanently, and 1 The following areas are given for comparison : Cuba, 44,000 square miles Japan, 175,000 square miles Austria, 116,000 square miles Chile, 291,000 square miles Ecuador, 116,000 square miles Mexico, 767,000 square miles Philippine Islands, 120,000 square miles India, 1,773,000 square miles Great Britain, 121,000 square miles United States, 3,567,000 square miles 2 These estimates are from reports by the Bureau of Forestry. The Bureau of Agriculture estimates the area of cultivated land as 15 per cent of the total area. In many countries of Europe all available land is cultivated. Even in the United States, a comparatively new country, 46 per cent of the land is in farms, and 25 per cent of the land is improved. In Java 40 per cent of the land is cultivated. 220 LAND TEISTFRE * 221 often are not directly dependent on the land for food. How- ever, as soon as a man brings a bit of land into cultivation, he appropriates it for himself. Most Negritos observe the right of the cultivator to the exclusive use of the land he has cleared, and some even place a value on such land. Among the Subanuns a kaingin is owned by the family that has cleared it, and the right to use it can be exchanged. Among advanced agricul- — tural peoples improved '^/' land becomes the chief / WWMM^++V+x > form of wealth. Rice / Av+V+^!k / /+ + + + + + A terraces compose almost / /++++tv+"'"+V all the wealth of the L, .,..,,,,,,,,,, ,,,, /%+5>tv>!-^'^- mountain peoples of Lu- ^MmM m^^- /%V.V/.V zon, among whom private ownership of land is ^) recognized. The areas cultivated by the Filipinos may be considered as divided into r"-^ small parcels, parcels of virgin forests L^^s^^ 1 . ■ . 1 1 SECOND-GROWTH |+++++|l6V* medmm size, and large forests 1 ^ -^ + l parcels. The amount of grasslands ^H **^^ land which a man with cultivated lands... .dl^«^ one work animal (carabao chart xxviii. covering of the or ox) can cultivate is Philippine land area about one hectare (two Estimates of Bureau of Forestry and a half acres). Any plot of land less than this may there- fore be considered a small parcel. With the help of the whole family it is usually possible to cultivate a larger area than this, the amount varying from one to five hectares, accord- ing to the size of the family. Pieces of land which are more than five hectares in area are nearly always worked entirely or in part by persons other than the immediate family of the owner. Chart XXIX shows graphically the portions of the Philippines in which parcels of three sizes are most important. 222 ' ECONOMIC CONDITIONS It should be understood that there are parcels of land of all sizes everywhere in the Philippines. The map shows only the size of parcels into which most of the cultivated land of any given region is divided. The Philippine census of 1903 states that about half the parcels of occupied land are less than one hectare in area, and that a fifth of these are less than .01 hectare (.025 acre).^ The average size of Philippine farms is given in the census as 3.5 hectares (8.5 acres), which means that parcels of less than one hectare predominate. Those of medium size (from one to five hectares) are next in impor- tance, while of the larger parcels (of more than two hectares) there are comparatively few.^ Most of the land in the province of Albay is in holdings which are from one to five hectares in size. This province can therefore be taken as typical of the Philippines in general; the following figures, compiled by J. Q. A. Braden, Provincial Treasurer, show the averages for the Islands : 62.3%, or 50,770 parcels, contain less than 1 hectare 52.3% 23.9 %, or 23,201 parcels, contain 1 hectare but less ' than 2 hectares 10.55%, or 10,242 parcels, contain 2 hectares but less than 3 hectares 8.2%, or 7,960 parcels, contain 3 hectares but less than 5 hectares 3.5 %, or 3,300 parcels, contain 5 hectares but less "1 than 10 hectares !► 5.05 % 1.55 %, or 1,602 parcels, contain ten hectares or more J 100% 100% 1 Since the Philippines are a land of scattered holdings, the small plots mentioned are in the hands of a smaller number of owners than would at first be thought. The question of the distribution of land among the people is a different subject, and is taken up under the heading Systems of Cultiva- tion, on page 226. 2 It will be noted that the map gives these data with reference to the total area, whereas the census gives them in percentages of the total number of holdings. Parcels of land in France are of about the same size as in the Philippines. In the United States the average size of farms in 1910 was 55 hectares (138 acres), and the average amount of improved land in it 80 hectares (75 acres). 42.65% CHART XXIX. LAND TENURE : AREA OP CULTIVATED PLOTS 224 ECONOMIC CONDITIONS Ilocos Norte may be taken as an extreme example of the predominance of small holdings. As shown by the records of the provincial treasurer, 100,000 hectares of cultivated land are divided into 200,000 parcels, averagmg a half hectare each. On the other hand, in parts of Negros and Iloilo three fourths of the land is hi plots of more than ten hectares each. The large parcels have in a few cases been handed down intact from early Philippine times. Many are the whole or parts of large Spanish land grants made from the public domain. Some estates have been formed gradually by pur- chase of contiguous smaller pieces. A few have more than '1000 hectares (2500 acres), many have from 100 to 500 hectares (from 250 to 1250 acres), while most have less than 100 hectares. In none of the larger estates is the whole of the arable land cultivated. FORMATION OF SMALL AND MEDIUM PLOTS The fields of medium size and the small plots are the result of several conditions : 1. The method of lowland rice culture, which necessitates dividing the land by dikes, results in small plots. Level strips of small area, but of varying elevation, are made, so that water from the canals will flow from the higher levels to the lower levels. 2. When land was plentiful, and was owned by virtue of tenancy and use alone, the settler cleared and claimed only as much as he could cultivate. The plots are of medium size. The manner in which the Philippine Islands were originally occupied is illustrated by the procedure of Ilocano immigrants in settling new country. They come in groups of from five to twenty, each group under a headman, who takes possession of a certain amount of public land. When this is cleared and put in a state suitable for cultivation, it is divided among the immigrants by the headman. Often several families who wish to migrate intrust their savings to one of their number, who buys land for their new homes. This land is distributed LAND TENURE 225 among those constituting the community, but the title remains in the name of the headman. ^ 3. Large parcels of land have been broken up through inher- itance. The parents apportion them among the children, both male and female, and thus after several generations the plots become so small through division and redivision that they can- • not be further subdivided. In this way it often happens that several persons will own an undivided interest in the same plot. In the more densely settled portions of the Ilocano coun- try it is almost impossible to purchase even half a hectare of i land that is not owned by from three to twelve persons. 4. It is with the greatest reluctance that the average Fili- pino parts with his land ; but sometimes misfortune or need of money, occasioned by funeral, marriage, or other family event of importance, compels him to sell or mortgage a part of it. This land is seldom redeemed. Sometimes, induced by high prices offered by the tenants, the larger holders are persuaded to sell small pieces of their land. The feeling which prompts the tenant to buy a piece of land long held by himself or family, and which makes the owner so loath to part with inherited holdings, accounts for the persist- ence as well as for the growth of small plots. The property of the wife is kept separate from that of the husband. Every parcel is divided among the heirs. Tuherited property is so highly prized that owners do not care to sell it, even at three or four times what it is worth. The majority of landowners possess more than one small plot ; but it never occurs to them to sell several of their small parcels to buy adjacent property, although they might be able to obtain the latter at from one half to one third of the original price.^ This desire for land (inborn, and the result of an aristocracy based on land ownership) is even now causing the extension of small holdings in most regions. It is true that in the most backward parts of the Islands the attitude of the people is 1 From the economic report of Fred O. Freemyer, Pangasinan. 2 From the economic report for Laguna Province, submitted by R. G. McLeod, Division Superintendent. 226 ECONOMIC CONDITIONS such that the condition of land tenure remains unchanged. Moreover, in a few locaKties where large parcels predomi- nate, large proprietors are increasing their holdings ; they buy those of the younger generation who prefer to sell and enter some other form of employment than agriculture, and those of the small proprietors who get into financial difficulties through ignorance or inability to handle their own affairs. But the Fil- ipino share tenants are ambitious to own their plots, and the small proprietors to acquire further holdings. In most cases they fail to do this through ignorance and inability to manage their business ; but those who succeed in establishing them- selves as independent landowners, and in extending their holdings, are constantly increasing the number of small plots. This will be further discussed in considering the share tenant. Systems of Cultivation The rights of a person in a piece of land are not always complete, and may change ; customs, inheritance, law, or con- tract may limit them to a term of years, or to a certain amount of the product. These various rights will be best understood by a discussion of the systems by which land is cultivated. The large parcels in the Philippines are cultivated by pro- prietary, share, or rent system. The small parcels may be cultivated by the peasant proprietors or by hired labor, or may be leased for a definite amount of money or of product, or on a share of the crop. THE PROPRIETARY SYSTEM In the proprietary system the owner superintends the affairs of his estate directly or through managers. The laborers work for a wage ; they are supervised in small groups by foremen. The Sugar Haciendas of Occidental Negros The sugar haciendas of Occidental Negros offer the best example of the proprietary system, and will be discussed here. There are about four hundred sugar haciendas in that province, LAND TENURE 227 the average amount of land cultivated on each varying from 100 hectares (250 acres) in some parts to 250 hectares (625 acres) in the San Carlos district. During the busy season an average of from one hundred to two hundred men are employed. Only about a fourth of these laborers reside per- manently on the plantation ; about three fourths of them are brought in, usually under contract, from the island of Panay and from the Bantayan Islands during the milling season, which extends from October through March. The contract which the laborer makes with the owner or his managers is usually a verbal one, to work at a certain daily wage, the employer furnishing the transportation to his estate, and advancing money to pay the laborer's indebtedness at his home or the necessary amount for the support of his family while he is absent. Sometimes this agreement is made with a foreman who has taken a labor contract to cut and haul all the cane in a field. In any case the men work in squads or groups of from eight to thirty, with one foreman for each group. The foreman directs and disciplines the laborers, but in some cases questions may be referred to the overseers or manager. Families often accompany the married men. The women and children do the lighter work about the farm and may even clean and plant the cane points. The laborers usually live in villages grouped about the owner's house, the permanent laborers in houses, the tempo- rary ones often in barracklike structures which may be rather crowded during the milling season. Before the World War the wages given were keep and money, varying from PO.20 to P0.60 per day, according to the locality and the demand for labor. Since laborers seldom work continuously, the aver- age amount earned each week is only from Pi to P2. Most of the money is spent in gambling at cards or in the cockpit, and some goes for clothing, food, and tuba ; but the average workman takes part of his wages home with him. The laborers receive food from the manager while they are working. This consists of a ration of rice or corn with fish, usually dried ; 228 ECONOMIC CONDITIONS occasionally, perhaps once a week, meat is included. As a rule, the permanent laborers are better housed and fed than the temporary ones. They sometimes have garden plots and a few chickens and pigs. The relation between planter and laborer is only the business one of employer and employee. The planter tries to obtain the greatest possible results. Most of the laborers, however, are drawn from the class which, largely from ignorance, de- sires to work as little as possible for the wage, and to obtain as many advances as the planter can be persuaded to make. The planter is expected at any time to advance money to his tenants up to two months' wages, to furnish medicine and to support the families during sickness, to get them out of trouble, to settle petty disputes and quarrels, and to give advice and counsel on all subjects. Custom generally con- cedes him the right to fine his men when necessary, to bring back men who have gone away owing him money, and to collect from the children the debt of a man who has died. The laborers do not leave for any action on the part of the planter if they think it just. The planter is deterred from the abuse of these powers by fear of losing his laborers. The difficulties in the labor situation in Negros arise chiefly because the laborers belong to the least intelligent classes of the Filipinos, and are without any property or other interests which might give them the stability found among most Philip- pine agricultural laboring classes. Most of them are recruited from districts where sugar growing is practically unknown ; often they do not understand even the first rudiments of agriculture. The cost of bringing a laborer from Panay may amount to twenty pesos. If, therefore, he works only a part of the time (he usually takes many intervals of rest) this amount of capital is lying idle. After pay day from thirty to fifty per cent of the men may be absent from work. It thus becomes necessary to maintain a force of a hundred men to have sixty working every day. The percentage of dishonest persons among the laborers is large, and on an average from five to ten LAND TENURE 229 per cent break their contract, and leave the planter with only a debt in his possession. A planter of Negros annually loses in this manner from P50 to P1500, according to the number of men employed; in some districts the loss amounts to ten per cent of the annual expenditure for labor. However, the planters also are to blame for the unfortu- nate situation. Many of them do not give enough personal attention to their farms, and as a whole they are making little effort to better the condition of their laborers. There is lack of cooperation among planters, who accept as laborers men known to have absconded from other employers, leaving their debts behind them. Then there has been little attempt to establish labor on a firmer basis by increasing the number of permanent laborers, by providing small garden plots, and by encouraging education. In general, planters have preferred to keep the men in debt, hoping thus to retain their services, and have not encouraged independent workers. It is notice- able that those few planters who provide good food and shelter for their laborers, and who treat them well and encourage schools, have the least trouble and are even able to obtain locally all the labor necessary. The adoption of modern methods permits planters to keep the permanent laborers, and to do away with the unsatisfactory migratory seasonal labor. ^ The Proprietary System in Other Provinces The haciendas of Oriental Negros are similar to those just discussed, but many of the peasant proprietors (who predom- inate in that province) are available as laborers during the rush season.2 The proportion of permanent laborers on the sugar hacien- das is much greater in Iloilo than in Negros. All extra labor 1 Agricultural labor is discussed in Chapter XIII. 2 Much of the information concerning the haciendas of Negros was de- rived from the reports of Eugene H. Rabun, C. A. Harbaugh, Martin S. Jones, and Roscoe L. Hall, supervising teachers. - 230 ECONOMIC CONDITIONS needed during the milling season can be obtained locally in Iloilo, and the labor troubles are of much less importance than in Negros. Rice, corn, abaca, and sugar are produced on the haciendas of Leyte. Many laborers live permanently on the land ; but a large number are brought annually from Cebu. Little diffi- culty is encountered with labor by planters of long experience. Great care is exercised in establishing the estates, and only good workers are allowed to settle on the farms, those who do poorly being weeded out. However, some trouble is had with transient laborers who go away owing money. The abaca haciendas of the Bicol Peninsula are worked on a somewhat different plan, since abaca is usually stripped on shares. Most of the laborers live permanently on the haciendas, and are often assigned a small patch of ground on which vege- tables, bananas, and the like can be grown. Tenants sometimes leave the haciendas when the landlords try to discourage the maintenance of these plots. The wage of a laborer stripping on shares varies, according to the amount of fiber he obtains and the market price, from one half to two thirds. In some places a ration valued at one tenth of a peso for every arroba of hemp stripped is also given. The laborer's share must usu- ally be sold to the Owner of the land. Sometimes the owner furnishes fiestas during the year. The temporary laborers on an abaca plantation are few ; they are often better off than the permanent laborers, since they have small parcels of their own. The foremen have the general supervision of the strip- pers, weigh the abaca, and so on. The laborer must often transport the clean fiber to the selling place. He has also to cut weeds from the fields, and set out new plants. Laborers on the hacienda of Sorsogon break their contracts, but to a much less extent than in the Visayas. Another troublesome habit of the laborers is stealing and selling hemp. There is also a tendency among them to work a few days and idle away the rest of the time. This is particularly true where the people are not interested in garden plots or in small holdings. LAND TENURE 231 In parts of the Cagayan Valley, particularly in Isabela Province, exists a mixed form of the proprietary share sys- tem. Tobacco is the staple crop. The laborers are assigned permanent plots, and receive two thirds of the crop. In ad- dition they obtain the entire product of the cornfields ; before the World War they received from P0.25 to P0.40 a day for any work which was not connected with their crop. They are supervised by foremen, and usually sell their share to the owner of the land. Forms of the proprietary system exist in other provinces also. New Plantations Many new haciendas have lately been established in the Philippines for the cultivation of abaca, sugar, rubber, coco- nuts, pineapples, and other crops. About the Gulf of Davao are several abaca plantations which are cultivated by hired labor, and stripped on shares. Most of the labor is permanent, but a considerable portion is floating. The largest sugar plan- tation in the Islands is that in Mindoro, on which modern methods are employed. The laborers have been brought in and settled permanently in villages. They are well treated ; and it is reported that little difficulty is had with them. On the large sugar haciendas now established in Laguna Prov- ince thirty-five per cent of the laborers live permanently on the land ; the others are brought in from the surrounding vil- Jages. They received, before the World War, their keep and from F0.50 to F0.60 a day. In general the new plantations are being worked on the proprietary system, with labor per- manently established on the land. PEASANT PROPRIETORS In several sections of the Philippines the greater part of the land is tilled by the men who own it. Such localities are, first, those in which there is much new land, or in which much unoccupied land is found, such as Nueva Vizcaya 232 ECONOMIC CONDITIONS Province, parts of Isabela and Cagayan provinces, the lumber- ing regions of Bataan Province, parts of Tayabas Province, Butuan and Palawan provinces, and parts of Mindanao ; secondly, regions long settled, in which the cultivation of the land by peasant proprietors has come about from the wide distribution of wealth, such as parts of Tarlac, Pampanga, Laguna, Batangas, Cavite, and Camarines provin- ces, Albay, Sorsogon, and Antique provinces, parts of Capiz and Leyte provinces. Oriental Negros, Bohol, and Misamis provinces. There are other regions in which the land is owned by the tillers of the soil. These are not given in Chart XXX, but a comparison of that chart with Chart XXIX will show them. They are Ilocos Norte, Ilocos Sur, and Pangasinan provin- ces ; much of Bulacan and Bataan provinces ; parts of Rizal, Cavite, and Batangas provinces ; parts of the Bicol provinces ; and parts of Cebu and Leyte provinces. In these regions the interleasing share system predominates (page 256). In all parts of the Islands there are also peasant proprietors, who own and till a greater or less portion of the land. The number of plots, their size, and the area of total hold- ings of the peasant proprietors vary. In general the plots of larger size occur in the more recently settled regions or in those having much unoccupied land. In such districts the cultivator usually owns one plot, from one to five hectares (2.5 to 12.5 acres) in area, according to the requirements of tobacco, rice, corn, sugar, coconuts, and abaca. In well- settled regions the peasant proprietor often owns several small plots, sometimes as many as ten or more, but usually about three. The total area of these may be considerably less than is necessary to yield the proprietor a living, in which case he leases more land on shares ; or it may be larger than he can cultivate, in which case he lets other persons cultivate some of the plots on shares. Usually the plots of one owner are separated, often by several kilometers, so that peasant pro- prietors in general lose much time in going to and from their PHILIPPINE I^ANDS LAND TENURE SYSTEM BY WHICH LARGEST PAKl OF THE AREA rs CULTIVATED if. mH Proprietary •/ I j Share ^^^ Peasant proprietary (Data from Economic Reports, Bureau of Education) CHART XXX. LAND TENURE ; SYSTEM BY WHICH LARGEST PART OF DIFFERENT AREAS IS CULTIVATED 234 ECONOMIC CONDITIONS fields ; they are also compelled to spend a great deal of extra energy in keeping each of their little plots fenced, watered, and free from weeds. The condition of the Philippine peasant proprietor is better than that of any other tiller of the soil in the Islands. His position is more stable ; for he owns property which protects his creditors from loss. He is not often an habitual gambler or a permanent borrower. His intelligence is greater than that of hired or share laborers, since his self-reliance and initiative are more developed. His income is greater because he obtains the total crop from the land he works. The total annual income of peasant proprietors expressed in money was estimated by the economic reports at from ?100 to P500 with the average about P250. Nearly all this is spent for food, clothing, and shelter. In some places the remainder is devoted to amusements and luxuries ; in others it is habitually saved by the peasant proprietors. The Ilocanos are able to save from five to ten per cent of their annual income ; they invest their savings either by purchasing work animals to cultivate their land or by purchasing land to increase their present holdings. The income of the peasant proprietor is seldom wholly de- rived from agriculture. During the off season he may find employment on a neighboring hacienda, harvesting sugar, stripping abaca, or working in the coconut groves. At the time of harvesting rice he and his family may reap rice on shares. He may be a porter, driver, fisherman, lumberman, or wandering merchant. Often the women of the household greatly increase the family income by keeping small shops, by weaving cloths, hats, mats, baskets, slippers, and the like, or by making pottery, embroidery, and other products in the home. Some of these products of their industry find a ready domestic use within the household; but most of them are sent to the market.^ 1 For a discussion of the relation between agriculture and household manufacture, see Chapter XVII. LAND TENURE 235 Small Owners who cultivate their Plots with Hired Lahor^ or who rent them In most parts of the Philippines few or no owners of small plots cultivate them with hired labor; in the Visayas, how- ever, there are regions in which that system is common. Several thousand plots are cultivated by hired labor on Panay, Negros, Samar, Leyte, and Cebu islands. In Tayabas Province and the Bicol Peninsula hired labor is employed on small coconut and abaca holdings. Small owners frequently rent their plots to cultivators. Small owners usually interest themselves in remunerative occupations. Those who retain a few of their fields often work harder and cultivate them better than their tenants. Some occupy government positions or are employees of large companies ; some are fishermen ; some interest themselves in commerce, and become storekeepers or wandering merchants ; some are day laborers, especially on public works ; others are carpenters or barbers ; many are teachers ; among the Ilocanos and in Capiz Province and elsewhere they often devote them- selves entirely to handicraft work in the homes. However, some small owners are satisfied with the meager income they obtain by renting their plots or by working them with hired labor, and set themselves up as petty landlords. In a few regions these men and the small owners who lease their land on shares constitute a large idle population. THE RENT SYSTEM In the proprietary and peasant proprietary systems the owners till the soil or supervise the work, and are the only persons directly interested in the crop. They have the whole right to the use of the soil, since they own the land in fee simple. Sometimes cultivators obtain a temporary right to the total product of the land by paying a stipulated sum of money or amount of product ; that is, they rent the land outright. This 236 ECONOMIC CONDITIONS system is one much practiced in Europe and the United States. In the PhiHppines it is employed to no great extent, although it is growing in favor in certain districts.^ In most provinces land is rented directly to the cultivator at prices ranging from three to twenty pesos a hectare for rice soils. In Isabela Province tobacco land rents for from thirty-five to a hundred pesos a hectare, according to the fer- tility of the soil and the number of carabaos included.^ The payment of a definite amount of palay at harvest time is an even more common form of rental, and ranges from one to twelve cavans of palay a hectare (or the same numbers of cavans for every cavan planted). The amount of rent depends on the fertility of the soil and the nearness to the village or town ; it is usually one third of the crop. The renter furnishes his own carabao. The rental system is found in Isabela Province, in the Central Plain of Luzon, and in Zambales, Rizal, Laguna, Batangas, Mindoro,Panay, and Leyte provinces. In Zambales rent in kind is the system most used, but the form of control by the landlord approaches that of the kasama system. In parts of Bulacan as much as fifty per cent, and in Rizal Province in the zacate fields near Manila twenty-five per cent, of tlie land is rented outright.^ In La- guna it is known as the Busian system.^ In this system the rent is a fixed charge against the renter. If the crop fails, he is usually given possession of the land for another year, so that he may pay off the debt to the landlord. In Zambales ad- vances of palay and money at high rates of interest are made, as in the kasama system. 1 In Pampanga the large landowners rent tracts of considerable area to tenants, who in turn become landlords by subleasing the parcel to other tenants. The rent in this case is usually money. (From the economic report submitted by Mrs. Lois Stewart Osborn.) In Iloilo the sugar land is some- times rented for cash at approximately eight pesos a hectare, this rental in- cluding the use of the mill and all the buildings on the land. Such large rented areas are worked by either the proprietary or the share system. 2 Reports of Walter K. Ferret and Horatio Smith. 8 From economic report of Fred T. Lawrence. * Reports of M. M. Boney and R. G. McLeod. LAND TENURE 237 SHARE SYSTEMS In the three systems just described the possessor of the land is the only person directly interested in the amount of the crop. A large part of the cultivated area of the Philip- pines is leased on shares, by an arrangement in which the owner of the land and the tiller of the soil are different per- sons, but both are directly interested in the amount of the crop. In some regions and under certain circumstances the share tenants are comparatively free in action ; in others they are to a greater or less extent under the direction and supervision of the landlord, not only in matters pertaining to the tilling of the soil, but in family and everyday affairs. The Manorial System The manorial system approaches that which existed in Europe at the time of the Spanish conquest of the Philippines. We can best understand the mediaeval manor by picturing to our- selves the economic life of a v^^hole village as a unit with the manor house its central point.^ The whole of the cultivated land then fell into two species : demesne land, land cultivated entirely for the benefit of the lord, which might consist of a separate enclosed portion, or of holdings scattered among the holdings of the villagers, or both ; and land held in villeinage, that is, land held from the lord by his tenants, who were unfree, and were bound to pay certain services to the lord. The amount of land owned by each tenant, and the services due to the lord, depended on his status. Two main classes can be distinguished : the ordinary holding was a virgate or yardland, usually thirty acres (12 hectares), held in scattered strips ; the holder of a virgate was called a villein. Next came the bordars or cotters, the general size of whose holding was one or two acres (| to | hectare) though it sometimes rose to five acres (2 hectares) or more. These did not possess either oxen or a plough, and were in a decidedly lower position than the villeins. Both villeins and cotters were unfree, but their position was not that of slaves ; a slave is bound to his master ; his servitude is personal, he is destitute of rights, he may be called on to do anything. . . . But the villeins and cotters were 1 Buecher's ''Industrial Evolution," p. 103. 238 ECONOMIC CONDITIONS territorial serfs, bound to the land to perform certain fixed services, and they were not destitute of rights, in general opinion at any rate ; how far these rights could be enforced by law was another matter. Services were paid in labor on the lord's demesne, and out of the very great variety of them two main classes emerge : " week work," that is, labor for certain days a week regularly all the year round, vil- leins generally giving three days' work and cotters two ; and " boon work," extra labor in addition to the week work at times of the year when there was special need for it ; such boon work would be demanded at harvest, haymaking, and ploughing. In addition to week work and boon work there were often small tributes or payments in kind ; fowls and eggs, bushels of oats, and so forth; and the villagers had to do what cartage the lord required. These duties discharged, the tenant had the rest of his time to work on his own holding. It is evident that the principal task in managing an estate was to see that the villeins and other tenants paid their services duly, and to superintend them at their work. Such work when ill looked after would tend to be little, for the laborer had no inducement to work hard, and in the case of the boon work, the villein had every incentive to evade or put off fulfillment of his duty. . . . Whether an estate was valuable or not mainly depended on the amount of labor available. Fertility would be undeveloped, size would merely prove cumbrous, if there was a want of labor. There was no class of laborers who could be hired ; a lord must depend on the services of his tenants. Thus pains were taken to keep up the labor on an estate. It was, generally speaking, impossible for a man on it to leave it ; heavy fines were asked before permission was given. New holdings could easily be bestowed out of the waste, or existing ones divided if more land was required. But above all, when the aim of good management was that each manor should be self-sufficing, that the customary labor should be enough and no money disbursed to hire more, it was important to have an exact account of the labor on each estate. To know this was to know the value of the manor.^ The manorial system is most closely approached in parts of Mindanao. There the tenant has the use of a certain piece of land allotted to him by the owner. The product of the land is his own, to do with as he likes. No rent is paid, but the tenant is obliged to work for the landlord a certain part of the time, for which he receives wages. It is the custom for the tenant to work every second week for the landlord. If the 1 George Townsend Warner's " Landmarks in English Industrial History." LAND TENURE 239 two have a disagreement, the landlord must purchase whatever permanent crops the tenant may have planted, before the latter leaves.^ There are isolated cases of the landlord's receiving the entire crop from a certain part of the land cultivated by the tenant, the latter taking the crop from the remainder. On certain haciendas on Negros Island part of the land is tilled by share tenants, who often have to work two days a week (dagyao) for the landlord. Formerly this service was given without extra compensation, but now daily wages are paid.^ The Kasama Share System The two methods above are local in occurrence. In most cases land is leased on a share of the crop. The regions in which the greatest area of the land is worked by share systems is shown on Chart XXX. In general the relation of the tenant to the landlord and the conditions of both have brought about share systems of three kinds : 1. Large haciendas cultivated on the share system: the kasama, kanan, or inquilino system. 2. A large number of scattered plots owned by one person and leased to tenants : the scattered-holdings system. 3. Leasing and re-leasing by peasant proprietors : the in- terleasing system. The kasama system is found on nearly all the large hold- ings in the Central Plain of Luzon, in Zambales, and in the Cagayan Valley (see Charts XXIX and XXX). It is also found to some extent in most other parts of the Islands. The owner of a large share estate may or may not give personal attention to his land. He either lives on the farm and closely supervises the tenants, or he lives in town and interests himself in other things. In the latter case he may have a manager, who is to be considered the landlord in this discussion, or his tenants may take care of themselves in a 1 From the report of M. A. Maxey, Baganga District, More. 2 From the report of H. E. Carmichael. 240 ECONOMIC CONDITIONS disorganized manner. It is only the supervised, or organized, estates that will be taken up for discussion. On most of the organized haciendas worked on the share sys- tem the landlord has a considerable amount of jurisdiction over the affairs of the tenant. He determines the crop to be planted, the time of planting and harvesting, and such matters as pertain directly to the cultivation of the plot assigned to the tenant. The relation between landlord and tenant in private affairs depends largely on the custom of the community, the character of the individual landlord, and the class to which the tenant belongs. The more closely the tenant resembles the laborer described in the proprietary system, the greater is the control of the landlord over his actions. In the kasama system as it exists in the Central Plain of Luzon the land- lord exercises his control most effectively, and the tenant is correspondingly dependent. A Typical Kasama System.^ The owner furnishes the tenant with land, a carabao, and seed, the product of the crop to be equally divided between them after deducting the seed. Upon delivery to the tenant of the animal he takes " bugnos," advance money. This varies from P15 to P 70 and forms a retainer, as it were, until the owner sees fit to re- lease him and his family. The money itself he generally spends for his womenkind, and the remainder at the cockpit, which is his natural de- pravity, but his only pleasure in a life of hopeless drudgery. Naturally, as he lives from hand to mouth, he is without resources, except cooking pots, a mat or so, and a few clothes. At the end of the week, usually on Sunday, he draws a ration of palay from the owner, which varies, though usually a half cavan a week is sufficient for his family. This amount he pays back in kind with no increase, upon gathering his crop. But all other supplies of money that are generally drawn from time to time from the owner are paid for in " takalanan " ; that is, at the end of the season the tenant repays the landlord in palay at less than mar- ket value, say at from P0.50 to P0.75 a cavan, a gain to the owner of from 150 to 200 per cent. 1 This is an extract from an unpublished report, " Circle for the Study of Social and Economic Conditions in the Philippines," a synopsis of notes on the kasama system as found in Nueva Ecija, by Percy A. Hill, issued by the Committee on the Prosecution of Investigation and Publication, Manila, 1909. Mr. Hill is a planter in Nueva J^cija. LAND TENURE 241 When the land, for the proper and timely preparation of which the tenant is held rigidly responsible, is once prepared, the seed rice or other crop is distributed in the fields awaiting transplanting. This part of the work is sometimes paid in total by the owner, the tenant doing the harvesting at his own expense ; but the general custom is for the owner and the tenant to pay halves, the tenant naturally taking the money from the owner, paying the same rate of interest as the " takalanan," which swells his debt. The planters receive commonly from P0.15 to P0.25 a day with rations, and if the tenant has in his family anybody who can plant rice, he naturally reduces the price of his share of the planting. The crop once planted, the ration of palay is usually discontinued ; but the family has to exist, and so a new schedule is put into force, that of " terkiaan," 50 per cent increase, or "takipan," 100 per cent increase, so that if a tenant receives 5 cavans between planting and harvest he must pay back 7^ cavans if "terkiaan," or 10 cavans if "takipan." After stacking in February, threshing commences, usually with carabao or cattle. The winnowing of the grain is generally done by the tenant's womenkind, who receive four per cent for their work. The crop is now ready for division ; first the seed is deducted and the crop is halved ; out of the tenant's half is deducted for the owner his total amount taken in rations, his " takalanan " and " takipan." Generally all he has left is an increased debt and the four per cent received by the women for win- nowing ; however, he manages to exist until the cropping commences again, when he resumes his ration and debt. On large farms and haciendas years often pass without a " patuid," or settlement, and the tenant never knows whether he owes P50or PlOO; thus, practically not only his work is demanded, but that of his wife and children, until they are old enough to enter as tenants, or until death passes the debt on to the younger generation. Their lives are a con- tinual round of work and drudgery, the owner generally finding some- thing to be done at all times. The tenant's food consists of rice and vegetables, which he raises himself, generally camotes, corn, beans, and greens, varied by fish caught in the rice fields during the wet months, and by an occasional piece of meat. On this meager diet he works day in and day out, his only pleasure being tobacco and an occasional drink of "bino." As a rule, he uses two suits of clothes and one hat a year, a total value of about P 5. A large family usually swells the debt. If he gets despond- ent, he has his former owner transfer him and his debt to another. He owns no land, nor property, as a rule, and his house is a *' cubo " or hut of light materials, put together in two or three days. Of course his con- dition often varies. An old " kasama " often lives as well and as con- tent as the owner, and at the present time an increasing number are 242 ECONOMIC CONDITIONS acquiring animals of their own and hunting up homesteads or leased lands, but many who obtain an animal fall into debt again. The average charges against a tenant and family of three persons, estimated from observation and experience, are as follows : Plow, and other implements .... 3.50 cavans of palay Eation, ^ cavan weekly, May 1 to Sep- tember 30 10.00 cavans of palay Supplies,tobacco, sa!t, etc 6.00 cavans of palay Money received at P0.50 per cavan, P 12.00 (used for oil, meat, clothes, matches, etc.) 24.00 cavans of palay Terkiaan, October 1 to November 15, 3 cavans 4.50 cavans of palay 48.00 cavans " Bugnos " (advance money) .... P20.00 A good average crop for a tenant is 100 cavans ; his share of one half (50 cavans) less 48 cavans leaves him 2 cavans to pay on interest of the ^■20 advance money. Therefore as a rule PlOO is sufficient to support a family of three for a year, with palay at P2 per cavan. If corn, beans, or peas are raised, one half goes to the owner after the deduction of the seed, but only a small amount of secondary crop is grown. The owner exercises a power over the tenant that would be difficult to define. He is consulted on all affairs of ways and means and even marriage, absence from the land, use of animals, extra day or night work. In petty lawsuits the tenant must obtain permission to partici- pate ; otherwise he pays for loss of time at an enormous rate. The dense ignorance of the tenant often leads him to be imposed on by his more astute fellows and landlords, but on the other hand he exasperatingly celebrates every fiesta in the calendar, and without care- ful watching will lose in a month by carelessness the crop it took him six months to produce. Yet he cheerfully submits to working out debts which are sometimes held only by verbal promises, often over a period of years; and once out of debt, he usually manages to fall in again before he realizes it. It is to the natural advantage of the owners to secure and keep the tenants in a constant state of debt. In general, conditions on large estates worked by the share system approach those just described. Number of plots leased. The amount of rice, tobacco, or corn land leased to the tenant in an organized-share hacienda varies with the locality, and particularly with the richness of the soil, but is usually one or two hectares. The amount of PHILIPPINE ISLANDS Resrions in which most Agrricullural Labocera TM] Own their work animala MilJ (Peasant proprietors and share tenants) ^M Do not own their work animals (Share tenants and hired laborers) (Data from Economio Reports^ Bureau of. Education) "^ Eormosa CHART XXXI 244 ECONOMIC CONDITIONS land given a tenant for sugar and abaca plantations is larger than for tobacco or rice, and varies from two to five hectares in plots separated or contiguous. It is seldom that more than one plot is leased, although on an hacienda where both rice and corn are grown, a tenant may have one lowland and one high- land plot. When the landlord has lands both for rice and for corn or tobacco, two plots are sometimes taken, since these crops are grown at different periods of the year. A house plot in the village either goes with the leasehold or is rented at a small sum by the year. Permanency of tenants. The agreement between tenant and landlord is sometimes, but not generally, written, and is most often for one season. Usually it is indefinite in nature. If the landlord is kind, and the tenant efficient, the lease continues. If the tenant does not please the landlord, he is ejected ; if in turn he is not pleased, he may leave. In some places there are landlords who cannot get tenants in the local- ity, but have to go to other towns each year to secure them. Division of the crop. The share of the crop credited to each of the three factors which produce it varies according to the custom of the locality, the fertility of the soil, the proximity to the town or market, and a variety of other conditions. How- ever, the apportionment is usually based on a valuation of one third for the labor, one third for the work animal, and one third for the improved land. The division of crop there- fore depends on who owns the carabao. If the tenant pos- sesses a carabao, he gets two tliirds of the rice crop, and the landlord one third ; in other cases the owner usually gets two thirds, and the tenant one third. It seldom happens on a large share estate that a third person owns the work animal. On Chart XXXI it will be seen that most of the tenants on estates in the Cagayan Valley and in Zambales Province own their animals, whereas those on estates in the western part of the Central Plain of Luzon do not. In the Visayas most tenants on large share estates are furnished with animals by the owners. In some places tenants harvest and thresh the LAND TENURE 245 crop ; in others this is done for a separate consideration ; additional harvesters are often employed on shares. There are many variations in this general division of the crop, all of which cannot be given here ; the most important, however, deserve mention. When the rice land is exceedingly fertile, the owner may receive one half the crop instead of one third ; if it is not very fertile, or is far from the village (as upland fields), his share may be only one fourth, or even less. In Occidental Negros the landlord furnishes land, seed, and animal. The lessee does the work until harvest. One eighth of the crop is given to the harvesters; two thirds of the re- mainder goes to the landlord, and one third to the lessee. If the former furnishes the land only, he receives but one third. In some places an exact division of the crop is made under the first arrangement. In Bataan Province the landlord plants the crop, advances thirty pesos a hectare without interest, and cuts the crop. The tenant does all the other work, gathers the crop after it has been cut, and delivers the landlord's share at his home. In this case the crop is divided into two equal parts. If the landlord furnishes the land, carabao, and seed, and pays for extra labor in transplanting, he receives three fifths, the harvesters one fifth, and the tenant one fifth. In Bataan the landlord on a sugar estate furnishes seed, fencing, and milling, and feeds the mill laborers. The tenant of a small plot does the planting and cultivating, feeds and pays extra field laborers, hauls the cane to the mill and sugar to the market, and receives half the product. If a third man is the owner of the mill, he furnishes the necessary labor for his mill, and the sugar produced is divided equally among the landlord, the tenant, and himself.^ 1 In parts of Negros fully sixty per cent of the hacienda owners have men renting sugar lands from them under the parcero system. The parcero owns from one to twenty-five carabaos, and leases approximately two hectares of land for each work animal. He furnishes animals, labor, and field machinery, but is often financed by the planter, who lends him money at fifteen per cent interest, with his work animal and standing crop as security. The harvested cane is turned over to the planter, who takes fifty per cent of it as rent for 246 ECONOMIC CONDITIONS On abaca plantations the division is one third or one half unless the price of the fiber is low, and then the laborer ob- tains the greater share. It should be noted, however, that the third factor, the animal, does not enter into the production of abaca. Neither is the animal considered on a coconut planta- tion. In Laguna Province the tenant takes care of the grove, keeps out beetles, reports damage, and collects the nuts for counting. A number of nuts sufficient to pay the cost of pick- ing and transporting are taken by the owner, and the tenant receives one fifth of the remainder. In southern Luzon, and on the Visayan Islands, half the copra is given to the tenant when he does the work outlined above and also prepares and dries the meat. In Tayabas the landlord gets two thirds of the copra, but has to build and maintain the drying kiln, and to provide the tenant with a house in the village. Usually a part of the natural increase of domestic animals placed in the tenant's care becomes his property. By this custom a tenant frequently obtains a carabao, which advances his economic condition considerably. Mutual rights and duties of landlord and tenant The mutual rights and duties of landlord and tenant differ in various parts of the Islands. The tendency is to relieve the tenant of all duties except those directly connected with the piece of land leased. In most regions, however, it is still customary for the landlord to call on the tenant for group labor at harvest time, to repair and build houses, fences, ditches, mills, and the like, and to get wood and run errands. The custom of making small presents of farm or handicraft products to the landlord is still practiced by the tenant in some places, but is rap- idly disappearing. No wages are paid for extra work unless it is of long duration, and then a money wage is often given. the land. The planter also charges two pesos for each picul of the parcero's sugar for grinding the cane and boiling and transporting the sugar to Iloilo. When the whole hacienda is leased, the lessee does all the work and turns half the sugar over to the owner of the land and mill. In this form of lease the land is not worked by the parcero himself, but is cultivated according to the proprietary system. LAND TENURE 247 Otherwise a gift from the landlord, and, in case of group work, a fiesta are supposed to recompense the tenant. The tenant's family, however, nearly always receives a daily wage when working for the landlord. The more services the tenant ren- ders the landlord, the more likely he is to receive substan- tial advances of food and money, and the more lenient is the landlord's treatment of him. Formerly the tenant had to supply the landlord with wood, but this duty is now required in but few regions ; he also threshed his rice, but with the introduc- tion of threshing machines such duties are constantly growing less numerous. The landlord may provide a tenant with a fiesta for a variety of reasons. He generally does this when he is the beneficiary of group labor. Sometimes he gives a fiesta at a stated period ; for instance, after the harvest, or, less frequently, after plant- ing. He often supplies music or other amusements at the yearly village fiesta. Control of landlord over tenant. The control which the land- lord exercises over the private affairs of the tenant varies greatly in different parts of the Islands. He usually defends him in court and against other persons in matters that pertain solely to the crop, and often looks after his private interests before the law. He does this to keep the tenant contented, so that he will remain on the estate. The tenant is to a large extent dependent on the landlord, and looks on him as his leader and director in times of emergency. The landlord arbitrates the tenant's quarrels and gives him advice and the benefit of his close supervision. An important consideration in the share system, partic- ularly on rice haciendas, is the question of advances and interests. Conditions in Nueva Ecija have already been quoted. For the Islands as a whole, interest on such advances ranges from fifty to five hundred per cent a year. When a debt is paid in kind, the landlord often takes produce at a lower rate than the market price ; for instance, ?0.50 a pavan below the market price for palay when it is selling at // 248 ECONOMIC CONDITIONS from Pi. 75 to P2.25 a cavan. The landlord makes a further profit by holding the rice until July or August, when the price rises to P2.25 or P2.75. At this time the tenant fre- quently buys back at an advanced price the same amount of palay that he parted with at the end of the harvest, thus contracting another debt which must be paid at the next harvest, and so on from year to year. Most advances are paid in kind. In sugar, too, the landlord buys the tenant's share at a low market price, and holds it for a higher price, often making a large profit. It is through advances, interest, and debt that the planter often controls the actions of the tenant and holds him to the landT^Serfdom for debt was an ancient institution in the Philippines ; to-day the Filipinos feel that honor compels the payment of a debt as soon as possible, and that a debt of a father attaches itself to the succeeding generation. An ignorant tenant, therefore, considers himself legally bound to the land- lord by debt ; in any case, he feels in honor bound to repay his debt as best he can. Hence it is that a tenant thrown out of a share estate because of his refusal to pay such a debt loses his reputation not only with the landlord but with the tenant class. By the law of custom he becomes an outcast . The ejected tenant, who has broken his contract or refused to cultivate the land, must usually leave the district. The landlord thus feels it to be to his interest to keep the tenant in debt ; since he charges a high rate of interest on advances, he usually manages to keep the tenant's share covered. A tenant is thereby virtually working for his keep and a little spending money. Occasionally there is a landlord who encourages the tenant. to get out of debt and acquire work animals and land, but he is the exception ; sometimes there is a landlord who refuses to accept the payment of a debt, for the sake of keeping the tenant on the land. In the most backward parts of the Islands the landlord has practically the control of the tenant; but the more enlightened the community, the less is the power of the LAND TENURE 249 landlord. Where labor is scarce and there is a considerable amount of wealth generally distributed, the balance of power may be in the hands of the laborers. The landlord on a large organized share estate determines the kind and amount of crop to be planted, and the time of planting and harvesting. The tenant must obtain permission to raise crops other than that so determined, to raise stock for his personal use, and, if in debt to the landlord, to sell his portion of the crop. The tenant nearly always carries out the orders of the landlord with respect to the tilling of the soil. Cases are known, however, where the tenant did not cultivate all the land he leased, and consequently the crop was smaller than it should have been ; but the landlord claimed and received as his share the amount of palay which 1^ would have obtained had all the land been cultivated. Sickness, however, is usually considered an acceptable reason for the production of a partial crop. As previously stated, the tenant for the most part remains permanently on the farm. Sometimes another person who wants the tenant will persuade him to change, and will advance the money to pay off his debt to the landlord, thus assuming the debt. When the landlord is dissatisfied, he may tell the tenant to get the necessary money to pay his debt, in which case the tenant finds another landlord to assume it. When the landlord sells his land, his rights in the debt of the tenant are sold with it. In a few cases a tenant will leave the landlord when in debt to him. Here the latter has no recourse, though sometimes custom obliges any land- holder who accepts a tenant to assume his debt to the former landlord. In case of the death of the tenant his children usually assume the debt. If they are old enough, they work it out on the land ; young children often come to serve in the house of the landlord at a stated wage until the debt is paid. This is the foundation of the bonded debtor system discussed in Chapter XIII. It is seldom that the children repudiate the debt of their father ; the unity of the Fihpino 250 ECOKOMIO COKDITIOKS family is close ; moreover, failure to assume such a debt might result in the children's being ostracized by their associates. In most cases where the tenant is mistreated by the land- lord he simply leaves the estate. Both tenant and landlord have the right to take any matters involving breach of con- tract, mistreatment, or injustice to the courts, but neither often avails himself of this privilege. However, instances seem to be multiplying, since the tenant is beginning to understand his rights before the law. The ownership of a work animal or of a small plot of land, or of both, gives greater stability to the tenant, secures him better treatment and terms from the landlord, and is more satisfactory to the landlord. Sometimes the tenant gives the landlord a guaranty of some sort ; this may be a title to a small plot of ground, or another person may stand responsible for his debt. In some places legal contracts are made, and debt or damages due the landlord can be obtained from the sale of the tenant's property. Such a tenant at will is, of course, much better off and much more independent than those previously described. Income of tenant. The income of the tenant on a large share hacienda before the World War varied from P80 to P200 ; the average was probably PlOO. In general, a tenant of this class saves but little ; most of his income is expended for food, a little for clothing and luxuries, and the remainder in gambling. The largest income is, of course, obtained by the tenant owning a carabao. Summary. In general the relationship of father and child may describe the attitude of landlord and tenant to each other. The landlord is paternal, the tenant filial. Nevertheless each looks out for his own interest; the landlord tries to get as much out of the tenant as he can, and to keep him indebted and contented, so that he will not go away; the tenant obtains as many advances as he can, and works as little as possible. The landlord regards the tenant as a natural and easy means of getting his land worked. The tenant looks LAND TENURE 251 on the landlord as a business benefactor. Their condition and the real feeling of each to the other depend on the dis- position and the enlightenment of the landlord, and the state of ignorance of the tenant and his willingness to work. In most cases the tenant must depend on the landlord. Often he is unable to plan his career alone, and looks to the land- lord for direction in the most trivial matters. The latter usually encourages this dependence, and stands in a paternal attitude toward the tenant. The tenant generally respects and loves the landlord ; the landlord is godfather to his children ; perhaps the landlord's father was the tenant's god- father. The landlord appreciates the work of a good tenant, and encourages him to increase his output. At times an unscrupulous landlord may overburden his tenant, or even require services which he has no right to demand. On the other hand, the tenant, if left to himself, neglects his duties and often causes the landlord much inconvenience. The land- lord is not always gently paternal, but may be domineering, arrogant, and selfish ; the tenant is often so extremely igno- rant, lazy, shiftless, and fickle that it is impossible to utilize him as a producing agent unless some system of compulsion is maintained. In the more advanced regions of the Philippines the tenant is beginning to learn something of his personal legal rights in his relations with his landlord. The landlord who has been somewhat overbearing in the past is being deserted. The confidential relation is in some cases becoming less close ; in a few regions a considerable amount of trouble is experienced with the tenant who leaves without making a settlement. Share System of Scattered Holdings The share system of scattered holdings is found in those regions in which all or part of the land is divided into small and medium-sized parcels. Such holdings do not permit of the hacienda system (either proprietary or share) even when 252 ECONOMIC CONDITIONS owned by a few rich families. Leo J. Grove, Supervising Teacher, has estimated that the total cultivated area of Camiling, in Tarlac Province, is about 16,000 hectares, divided into 15,000 parcels. By subtracting a third of the parcels, and a thousand hectares allowed for building lots, we shall see that the average parcel is about one and a half hectares. About half of these parcels are owned by people who have from five to thirty scattered plots, and do not work their own land. Where such holdings exist, it is a common practice of the tenant to take more than one plot ; these plots are as a rule widely separated. They aggregate in area the amount of land ordinarily leased by a tenant under the kasama system. The tenant tries to get adjacent plots, but on account of the peculiar method by which these are owned (explained under the heading Size of Parcels, page 220) it is not often that such plots are available. For instance, in the coast towns of Albay it is rather common for a tenant to rent one plot on the mainland and one on an adjacent island. The owners of parcels of land which are not large enough to support the family often cultivate other plots on shares. The systems of division of the crop are much the same as those discussed under the kasama system. However, a few others exist. Sometimes, as often occurs in Samar, the work animal is owned by a third person, who receives one third of the crop. On the small sugar plots where the landlord provides a primitive mill the tenant usually gets two thirds of the sugar produced, but furnishes all the labor. In the production of abaca the landlord sometimes pays a premium over the usual share if the tenant materially improves the production. In the cultivation of intensive crops which require no animal, such as betel in Pasay near Manila, the crop is equally divided between landlord and tenant. Some- times the owner of a small piece of land borrows money on it, and gives the lender full possession and rights to its use until this is returned. The interest takes the form of the LAND TENURE 253 product of the land; it may net the lender from forty to eighty per cent. The owner gets back the land whenever the money is returned. In the usual contract for sale a time is set when the borrower loses the land if the money is not returned. In the system noted above, however, the contract extends indefinitely. Under this system the tenant often brings virgin land under cultivation on condition that he have the use of the land for a period of years, or receive a portion of it, cleared and planted, as his own. On coconut lands in Oriental Negros the tenant sometimes receives all that he can raise between the palms he sets out. He must care for the young trees, and when they are too old to permit cultivation between them, he receives from one tenth to two tenths of a peso for each of them. In Cavite he is given a fourth of the land, having cultivated between the trees for four or five years. In Mindoro and other places where land is plentiful the tenant receives half the land. In Sorsogon the tenant clears the forest, plants a garden plot with corn and sweet potatoes for himself, and sets out abaca for the landlord. In three years the abaca is ready to strip. From the first three strippings the tenant receives the entire product ; then, about four and a half years after the planting, the ordinary division is made. When the tenant clears rice land, constructs the necessary irrigation canals, and brings the plots into cultiva- tion, he receives as payment, in Pangasinan Province, the crop for from one to five years; in Sorsogon, the crop for about three years. ^ ^ These are excellent examples of rent in the economic sense of the word. The rent for the productive powers of rice land in Sorsogon Province is, for each crop, one third of the labor of clearing the land, of draining it, and of diking it, ^ 'aboroniand '^^ -pj^^ word " rent" has two meanings, one popular, the other scientific. Thus far it has been used in the popular sense, and refers to the sum paid for the use of the productive powers of the land as well as of the improvements thereon, such as fences, irrigation ditches, freedom from stones, and the like. The rent for a given plot of land increases with the value of these improvements, and decreases with the exhaustion of the soil (productive powers). The scientific meaning of the word is limited to 254 ECONOMIC CONDITIONS The services which the tenant performs for the landlord in the system of scattered holdings are much fewer than those in the kasama system. The custom of requiring services is fast passing away. In general, too, the condition of the tenant is much better under this regime than under the kasama system. The tenant often possesses one or more carabaos or is the owner of small plots of land ; the landlord can obtain from the sale of these any sums due him. Indeed, a consideration of the productive powers of the land ; in the following discussion of the law of rent (taken from Laughlin's " Elements of Political Economy ") it should be so understood : "Lands are of varying degrees of productiveness. They vary not only in their power of producing different articles, such, for example, as wheat and tobacco, but they do not all produce the same thing equally well. . . . The slope, drainage, constituents of the soil, vary from field to field even in the same farm, so that some lands afford a large return to labor and capital, while others do not ; the former are superior, and the latter are inferior soils as regards fertility. "Two pieces of land, which are of equal fertility, as regards their natural productiveness, might also be so affected by situation that one would be classed as superior and the other as inferior. Suppose that one piece. A, were situated near a railway station, and another, B, twenty-five miles away from any market, and that each parcel of land produced one hundred bushels of wheat. In the case of B the value of ten bushels might be spent in carrying the produce to the station near which A was situated. The farmer of B would be no better off than if he cultivated land close by A which produced but ninety bushels. The cost of transportation enters into the outlay of producing wheat on B, so that although equal in natural pro- ductiveness, B is really inferior to A by situation ; consequently we may speak of superior and inferior lands, although this difference of grades may be due solely to situation. . . . " When different grades of land are in cultivation at the same time (pro- ducing the same article), the cultivator of the richer soil receiving the same price per bushel as the cultivator of the poorer soil, the former will get more for his work . . . than the latter. The same labor . . . produces on the rich land more bushels per acre than it does on the poorer land ; and as the price at which each bushel is sold is the same, the return to the former . . . is greater than the return to the latter . . . although they are equal in both cases. This surplus of the value of the product of the richer over the poorer land, when both are needed for cultivation, is rent ; and the whole of it goes, under free competition, to the landlord or owner of the land. "This law accounts for the range of rents per hectare mentioned under the Rent System, and also for the varying parts of the crop which are given the landlord in the share system." LAND TENURE 255 in some localities the landlord will seldom advance much money unless the tenant owns some property. The financial and general condition of the tenant under this system is much better than on the large estate. His in- come before the World War varied from Pi 00 to P400, and averaged probably P200. He obtains an additional income from other sources than the plot he rents, just as a peasant proprietor obtains an additional income. The following is an estimated income : - Farminy Rice PlOO Sugar 100 Mango trees 20 P220 Fishing 10 Wages as carpenter 25 Earnings of wife and daughter as hat or mat weavers, etc 25 P280 In general, it may be stated that since, under this system, the holdings and tenants are scattered, the landlord cannot exercise the same control over his tenants as he does in the kasama system. Moreover, the tenants usually belong to a more intelligent class of laborers, and in the majority of cases own work animals and often small plots of ground. These give stability and a sense of responsibility not pos- sessed by the tenants on the large hacienda. Landlord and tenants usually get along well, the landlord looking on his tenants as poor relatives (which they often are) for whom he is somewhat responsible, and being recognized by them as a superior personage. Sometimes the tenants are independent of the landlord except in matters directly concerned with the soil. It is evident, therefore, that the tenant under this system is in a much better condition than the tenant under the kasama system. His income is greater, and he is much more independ- ent of the landlord. Indeed, he may rent from two landlords. 258 ECONOMIC CONDITIONS enough money through outside work and through household industries to purchase a carabao and even the land on which they live (see Household or Domestic Manufacture, page 365). In Laguna Province the landlord often furnishes the land and seed, and sells carabaos to the tenants on credit without interest, although if payment is made in produce there is the usual discrepancy between the market price and the price credited to the tenants. Throughout the Islands the larger number of tenants who attempt to provide themselves with carabaos and land fail. As soon as they become independent and are deprived of the benefit of supervision by the landlord, they relapse into indo- lence, devote themselves to gambling, or commit indiscretions, and soon lose their possessions. Their inability to manage their own affairs is against them. Often their attempt is pre- mature, because they have to borrow money to pay for the animal or land, and the high rate of interest charged on sums borrowed soon results in the loss of animal and holdings. Sometimes the former tenant and his family will get along well until death or marriage occasions a fiesta, at which time all accumulation and possessions are spent. In spite of these conditions, however, the peasant proprie- tors are almost everywhere increasing in relative importance, especially since the economic development of the Philippines has brought with it higher wages and ability to save for investment. Condition of the Classes of Cultivators It would appear that the greater the percentage of large holdings in a town, the poorer is the condition of the laboring class. The hired laborer and the poorer tenant are illiterate ; their knowledge seldom extends outside the hacienda; they have no initiative or idea of responsibility; their attitude toward the landlord is subservient ; they lack stability ; they are poorly clothed, fed, and housed, and simply exist. The public schools have not drawn so large a proportion of pupils LAND TENUKE 259 from this class as from other laboring classes. More farm work is expected of the children, and they are not encouraged to go to school. Tenants as a class are usually poor, but their livelihood is assured ; their food, housing, and clothing are better than those of hired laborers ; they are usually ignorant, and in debt on account of the high rate of interest, but they receive the protection and advice of the landlord. Their assumption of responsibility is. greater than that of hired laborers, and as a class they accumulate more. Even if he owns nothing, the tenant's interest in a share of the crop gives him a certain stability, and it is only where this is taken away (by action of the landlord, who appropriates all the crop above the bare necessities and holds the tenant in debt) that he is reduced to the condition of the day laborer. The income of the tenant having a carabao or land is larger than that of the simple tenant; his position is the most stable of the tenant classes. In the most backward regions of the Philippines the peas- ant proprietor classes are very ignorant, and often not very industrious. Sometimes they are really tenants on share, since their land is controlled, through debt, by the landlord class. Such proprietors are little better than the average tenants on share, if indeed they are as well off. If possessed of a false pride on account of ownership of land, the peasant proprietor has no inclination to exert him- self, and does not supplement his income with the proceeds of outside labor. The difference in the individuality of peasant proprietors is especially noticeable when industrious peoples like Boholanos or Ilocanos settle among an indolent population. The peasant proprietor usually has some education ; he can get money at a lower rate of interest (though still usurious) than the tenant ; he builds a better house and has better food and clothing ; he usually prides himself on the ownership of animals, a granary of palay, rice, or corn, and a small amount of land ; he is anxious to give his children the advantages of education; and his social pleasures are much greater than 258 ECONOMIC CONDITIONS enough money through outside work and through household industries to purchase a carabao and even the land on which they live (see Household or Domestic Manufacture, page 365). In Laguna Province the landlord often furnishes the land and seed, and sells carabaos to the tenants on credit without interest, although if payment is made in produce there is the usual discrepancy between the market price and the price credited to the tenants. Throughout the Islands the larger number of tenants who attempt to provide themselves with carabaos and land fail. As soon as they become independent and are deprived of the benefit of supervision by the landlord, they relapse into indo- lence, devote themselves to gambling, or commit indiscretions, and soon lose their possessions. Their inability to manage their own affairs is against them. Often their attempt is pre- mature, because they have to borrow money to pay for the animal or land, and the high rate of interest charged on sums borrowed soon results in the loss of animal and holdings. Sometimes the former tenant and his family will get along well until death or marriage occasions a fiesta, at which time all accumulation and possessions are spent. In spite of these conditions, however, the peasant proprie- tors are almost everywhere increasing in relative importance, especially since the economic development of the Philippines has brought with it higher wages and ability to save for investment. Condition of the Classes of Cultivators It would appear that the greater the percentage of large holdings in a town, the poorer is the condition of the laboring class. The hired laborer and the poorer tenant are illiterate ; their knowledge seldom extends outside the hacienda; they have no initiative or idea of responsibility; their attitude toward the landlord is subservient ; they lack stability ; they are poorly clothed, fed, and housed, and simply exist. The public schools have not drawn so large a proportion of pupils LAND TENURE 259 from this class as from other laboring classes. More farm work is expected of the children, and they are not encouraged to go to school. Tenants as a class are usually poor, but their livelihood is assured; their food, housing, and clothing are better than those of hired laborers ; they are usually ignorant, and in debt on account of the high rate of interest, but they receive the protection and advice of the landlord. Their assumption of responsibility is. greater than that of hired laborers, and as a class they accumulate more. Even if he owns nothing, the tenant's interest in a share of the crop gives him a certain stability, and it is only where this is taken away (by action of the landlord, who appropriates all the crop above the bare necessities and holds the tenant in debt) that he is reduced to the condition of the day laborer. The income of the tenant having a carabao or land is larger than that of the simple tenant; his position is the most stable of the tenant classes. In the most backward regions of the Philippines the peas- ant proprietor classes are very ignorant, and often not very industrious. Sometimes they are really tenants on share, since their land is controlled, through debt, by the landlord class. Such proprietors are little better than the average tenants on share, if indeed they are as well off. If possessed of a false pride on account of ownership of land, the peasant proprietor has no inclination to exert him- self, and does not supplement his income with the proceeds of outside labor. The difference in the individuality of peasant proprietors is especially noticeable when industrious peoples like Boholanos or Ilocanos settle among an indolent population. The peasant proprietor usually has some education ; he can get money at a lower rate of interest (though still usurious) than the tenant ; he builds a better house and has better food and clothing; he usually prides himself on the ownership of animals, a granary of palay, rice, or corn, and a small amount of land; he is anxious to give his children the advantages of education; and his social pleasures are much greater than 260 ECONOMIC CONDITIONS those of either the tenant or the hired laborer. In general, the peasant proprietor lacks the advantage of supervision by better educated men, and he is liable not to get so much out of the land as he might. He stands some chance of losing his possessions by quarrels in court, crop failures, or other misfortunes. On the other hand, his greater interest in the crop more than offsets the decrease due to lack of supervision by the landlord, and he often grows a far greater variety of crops than does the tenant. To sum up, the peasant proprie- tor is hard working, but lacks the elementary education and business thrift to provide for emergencies. Condition of the Landlord Classes In considering the landlord classes we include only those who own large estates, either proprietary or share. Many are care- less in their farming, trusting rather to luck than to good management, and therefore many haciendas are heavily encum- bered with debt. The average landlord feels that the proprietary or tenant system is the only one which will succeed with the class of men with whom he has to deal. He may even oppose the effort of tenants to better their condition and become inde- pendent, because he feels that he is being deprived of labor. In general, the landlord class in the Philippines has no appre- ciation of modern methods, and does not give enough atten- tion to the land. Systems of accounts are needed, as well as carefully worked out farm systems, and a greater knowledge of farming and business is required. Encouragement of greater efficiency in laborers through general education, fair treat- ment, and just reward, and the use of modern methods give better results in agriculture than the advance and debt system at high rates of interest, such as now prevails on nearly all large Philippine estates. This advance and debt system seems at first sight advantageous to the landlord, since he receives a large rate of mterest and is able to hold his tenants. It is LAKB TENUKE 261 really, however, disadvantageous to him, since it compels him to invest all his money in agriculture. Were the hired labor- ers and the tenants independent of these advances, the land- lord classes could invest their money in other enterprises and increase general business activity in the Philippines. Encouragement of an Agricultural Middle Class So far as the Islands in general are concerned, the peasant proprietor is the best citizen because of his stability and his sense of responsibility. Few of the tillers of the soil in the Philippines get out of the land nearly what it should produce ; nevertheless it is probable that the peasant proprietor, although lacking supervision of the landlord, produces more than other agricultural laborers. But more than this, the independent tiller of the soil is the best citizen ; a man who owns something for the government to protect takes a greater personal interest in that government. It is noteworthy that the lawless elements with which the Philippines have at times been harassed have not originated where peasant proprietors predominate. The peasant proprietary system has disadvantages. In the culti- vation of export crops such as sugar and tobacco, and, to a less extent, abaca and copra, the hacienda system is often the best, since the tillers of the soil, when left to themselves, fre- quently produce a low-grade article, and are at the mercy of the middlemen. In such cases agricultural progress may be hampered ; for instance, at the present time it would be im- possible for peasant proprietors to improve the methods of producing sugar, as is being done on the large sugar haciendas. When food crops are raised, however, the peasant proprietor, as consumer, is directly interested not only in the amount but in the quality of the crop. The government recognizes the desirability of an independ- ent agricultural middle class, that is, a class between the hired laborer and the landlord, for independent citizenship is always the basis of democracy. The homestead laws, the 262 ECONOMIC CONDITIONS activity looking toward the settling of land titles, and the agitation for lower rates of interest, all have in view the extension and protection of the peasant proprietary class. PUBLIC LAND AND HOMESTEADS To obtain title to a piece of public land in the Philippines, certain government regulations must be carried out and cer- tain sums of money paid. The mere settlement and tillage of the land do not give title. There are three methods in the Philippines whereby public land may be owned or con- trolled by an individual. First, a plot of 16 hectares (40 acres) of unreserved, unappropriated public land which is not more valuable for mining or forestry can be taken as a homestead ; the person taking up this land must reside on it for a period of two years immediately preceding the date of filing his final proof, cultivating and improving it for five years, and must pay PlO at the beginning and at the end of the term. The fees may be paid in installments of P4 each. Secondly, a plot of 16 hectares of public land which has not been surveyed under either the Spanish or the American rule may be purchased by an individual ; although it is not necessary for him to reside on the land, he must cultivate it for five years before he can ob- tain a full title. Thirdly, public lands are also leased to individ- uals, corporations, or companies in parcels of not more than 1024 hectares (2400 acres) for a period of twenty-five years with the privilege of renewing the lease for another twenty-five years.^ The amount of public land in the Philippines is very large ; nevertheless, the results obtained from the homestead law have been unsatisfactory. In the year 1912 only 3105 homesteads were taken, the largest in a number of years and double that for the year 1910. Of the applications filed five years before, five per cent of the applicants did not cultivate any of the land applied for, and fifty per cent were not complying with 1 " Primer containing Questions and Answers on the Public Land-laws in Force in the Philippines" ; also Act 1864 of the Philippine Legislature. LAND TENURE 263 S2is ii <3 1^ 1^ 05 <0 WIS s ^- I- 4 55 Si OQOC O rHo5rH00 ;S?^^2S§?28§ e<5eooo«ot^ooe<5«o S!SSS|||go| 1^ ti! t- lft'oO,3^ OsS 53 "«— ^r\ SV .~ri 264 ECONOMIC CONDITIONS the law concerning residence. The average area cultivated was four hectares. The Filipinos often become squatters on land in preference to taking up a homestead. In some places landlords oppose homesteading by the tenant class. In certain regions where most of the public land is in the highlands, the people prefer to lease land in the lowlands, so that they may grow irrigated rice. Undoubtedly the building of roads into the interior of certain islands will increase the number of homestead applications there. Lack of animals has in many instances reduced the number of applicants ; in general, also, the village system has kept a hold on the tenant, who has preferred to live with his relatives rather than establish him- self alone at some distance from the barrio. With the excep- tion of a few peoples such as the Ilocanos and the Boholanos, the pioneer spirit has been lacking among the Filipinos. By 1918 conditions were still far from satisfactory, although the increase in applications had been very great. From 1904 to 1912 there were 17,000 applications, and from 1912 to 1918 there were 43,000, making 60,000 applications in all. Of these about 30,000 had been approved, the other half having been withdrawn or pending. The number of Torrens titles granted was 1640. Most of the applications were from Nueva Ecija; Tayabas, Cagayan, and Camarines follow in the order named. Most of the leases to corporations have been made in Davao. There are some leaseholds in other parts of Mindanao and Sulu. AGRICULTURAL COLONIES One reason fot* the large number of homestead applications filed in Nueva Ecija is its proximity to the densely populated Ilocano provinces and the southern part of the Central Plain of Luzon. (See Chart XXXIV.) There are large areas of fertile unoccupied land in the Department of Mindanao and Sulu which are too distant to be settled by individual initi- ative alone. In these the government is settling colonies. LAND TENURE 265 Cotobato is the principal region. In 1917 it had six colo- nies with 929 families, or 5310 persons. They cultivated more than 1000 hectares of rice land alone, besides raising quantities of corn and other products. They had 3893 pigs and 14,560 chickens. All this had been accomplished since Act Number 2254 was passed in 1913. The government paid the passage of the colonists, advanced money, and pro- vided carabaos and farm implements. By 1916 the colonies were well established, and the colonists had begun to repay these advances. Act Number 2806 authorizes provincial boards to organize and manage agricultural colonies on public lands. LAND TITLES Throughout the Philippines much of the land, both large and small parcels, is held by people who have no documentary title to it. In most cases their titles can be proved. In many cases large tracts are disputed by two or more parties ; or squatters have taken possession, claiming them as public land. In a few instances this situation has produced a very chaotic condition. The laws of the Philippines allow indi- viduals to prove their ownership of pieces of land in courts of land registration, and to obtain legal registered Torrens titles. In time all parcels of land will be legally registered, and agriculture will be placed on a much firmer basis than it now is. It is the practice of the courts to grant Torrens titles when ten years' continuous, undisputed occupation of the land is proved. The percentage of farms held under legal title varies in different parts of the Islands. For instance, in Union Province eighty per cent, that is, about 70,000 parcels, are held under no legal title ; in Rizal about fifty-five per cent of the farms, or about 16,000 parcels, are also held under no legal title. From 1903 to 1918 there had been for the entire Philippine Islands only about 15,000 applications for registration of title, 266 ECONOMIC CONDITIONS of which more than 12,000 had been confirmed by the courts. The individual registration of titles is slow and costly, par- ticularly for small parcels. The law therefore provides that cadastral surveys may be made covering whole municipalities. From 1903 to 1918 there were 220 cadastral surveys, cover- ing 235,000 parcels. Even under the cadastral system the registering of land titles will be comparatively slow, how- ever, and a satisfactory situation with respect to titles of agricultural lands cannot be expected within this generation. INTEREST RATES The exorbitant interest charges in agriculture which have obtained in the Philippines have been noted in this chapter. The necessity of reducing these is evident. Legislation has made high rates illegal. The question really depends on land tenure and available capital, which is discussed under Ex- change, in Chapter XYIII. Act Number 2508 and amend- ments authorize the organization of Agricultural Credit Cooperative Associations. By 1918 there had been 240 of these societies organized ; about half of them were successful. These had pooled the money received as membership fees, and were lending it successfully to their members. The ex- tension of the number of these societies and their usefulness were greatly hampered, however, by the lack of capital. In 1919, therefore, the Philippine Legislature passed Act Num- ber 2818 appropriating Pi, 000,000 for investment in loans to Agricultural Credit Cooperative Associations. All this money was distributed in 1919. Although this Act is un- doubtedly a step in the right direction, its purposes are limited. Only F2000 can be lent to any association, and the period of maturity is fixed as of June 30, 1925. More- over, these loans have been granted only for the breaking and cultivation of new rice or corn lands; or for the pur- chase of work cattle or agricultural implements necessary to increase the production of rice and corn; that is, this Act LAND TENURE 267 aims particularly at effecting an increase in the food supply of the Islands. If these loans prove successful, the Legisla- ture may be persuaded to appropriate additional capital for the purpose of financing small farmers in general, no matter what the product of their farms may be. CACIQUISM It is evident that the ignorance of the agricultural classes, their lack of initiative, and their inability to care for them- selves, together with the ancient custom of loans, high interest ,^ rates, and honor connected with debt, place a considerable amount of power in the hands of large landowners and persons of intelligence. In the Philippines the possessor of such power is called a cacique. The control which the cacique may exer- cise over his tenants or even over peasant proprietors has been discussed at length in this chapter, and applies not only to agricultural affairs, but to everyday private and public matters. Often so complete is the control of the cacique that he can use his power to his own advantage and to the detriment of the tillers of the soil. It is such abuse that has attracted odium to the word. During the last ten years the power of this class of men has waned with the increase of education and the greater initiative and independence of the people. This question is a delicate one, but will probably be solved in time by the education of the masses, both in and outside the schools. Great care must be taken, of course, that the laborer, while given a knowledge of his rights and a desire for better things, is not at the same time deprived of his present ideas of the honor of paying obligations. This might result in as bad a condition as that on the haciendas of Negros. Laborers who are not capable of becoming peasant proprietors must be taught to feel the force of moral obligation, if the power of the landlord through time-honored custom is removed. As they become aware of their rights, laborers must acquire a corresponding sense of responsibility. That the present 268 ECONOMIC CONDITIONS system of public instruction Avill finally do away with one- man -power there can be little doubt. The following extract from the report of the Director of Education, 1912, is of interest in this connection: The aims of instruction in the lower grades of the public schools are to enable the pupil to understand, read, and write simple English ; to give him a sufficient knowledge of figures so that he can later protect his own interests in minor business dealings ; and to provide him with a limited fund of information on the subjects of geography, sanitation and hygiene, government, and standards of right conduct. In 1918 the Legislature provided funds to extend both primary and intermediate education to all children of the Philippines. The following table indicates the growing importance and scope of public education in the Philippines : 5C o J , s -^ o a o faol O < & H H :i H » t^ O J 2 ^ C H H ^ i^ < ^ S5 5?. fa r ?, o W H "^ ^ § tf u m s D ^ 11 n > < OS W >< < 5S 2 Cm m 5« 1 O A ^ pi 1908 3,932 486,676 339,243 264,807 P5, 12 7, 11 7. 15 10.53 1,394,000 34.09 1909 4,424 570,502 405,478 299,625 5,747,997.32 10.08 1,419,700 40.10 1910 4,531 587,317 427,165 314,336 6,475,326.81 11.03 1,445,900 40.61 1911 4,404 610,493 446,889 355,722 6,447,713.25 10.56 1,472,400 41.46 1912 3,685 529,665 395,075 329,073 6,527,636.65 10.43 1,499,500 35.32 1913 2,934 440,050 329,756 287,995 6,461,322.41 14.68 1,527,100 22.26 1914 4,235 621,030 489,070 428,552 7,639,178.65 12.30 1,655,200 39.93 1915 4,291 621,114 501,630 448,014 8,056,121.10 12.97 1,583,900 39.21 1916 4,412 638,543 .523,272 471,195 7,430,439.73 11.64 1,611,600 39.62 1917 4,702 675,998 567,625 514,263 9,164,222.58 13.56 1,639,800 41.22 1918 4,747 671,398 569,475 521,377 10,730,210.00 15.98 1,668,500 40.24 Since the agricultural tenants are beginning to organize themselves into unions, and the government has passed a law authorizing the appointment of a committee to investigate the conditions of the agricultural tenants, the question becomes one that must be solved. LAND TENURE 269 At the beginning of the year 1918 there was organized in the Miinicipahty of Bulacan, in Bulacan Province, a society called Union fig Magsasaka, composed of agricultural laborers commonly called " aparceros." The aim of the society was the betterment of the conditions of the aparceros. From the be- ginning this society was an important body, since it had nine hundred and seventy-three members, with committees properly organized in several barrios of the municipalities of Bulacan, Bokawe, Guiguinto, and Bigas. The conditions of agricultural labor (aparceria) which ex- isted in the province of Bulacan before this society came into existence were as follows: the harvested palay was divided into equal parts between the landowner and the agricultural laborer, the expenses for preparing the land and cultivating it being met by the tenants. The agricultural laborers did not object to dividing the product into equal parts, but wished the expenses also to be divided equally. The laborers made the following demands: (1) that the expenses for the transplanting, sowing, reaping, and threshing be divided between the landowner and the agricultural laborer ; (2) that the straw be for the laborer ; (3) that the expenses for the transportation of that part of the harvest belonging to the landowner be met by him, the agricultural laborer taking charge of the work; (4) that the land commonly called " cara- tin " (lands near the sea which become flooded at high tide) be the subject of a special contract between the landowner and the laborer (aparcero) ; (5) that the seed be the land- owner's, but that an equal amount of palay be given to the aparcero before the partition of the crop ; (6) that the money lent to the aparcero be paid in palay at current market value ; (7) that no member of the Union ng Magsasaka should be dismissed except after an investigation by the society and the landowner ; in the same way no member of the society should quit work without six months' notice to the landowner. As a result, an agreement was reached between the land- owners of Guiguinto and the representatives of the association : 270 ECONOMIC CONDITIONS 1. The expenses incurred by the transplanting of seed, the planting, reaping, and threshing, shall be divided into equal parts between the landowner and the agricultural laborer. 2. The product harvested shall be divided between the agricultural laborer and the landowner. 3. The straw left in the threshing shall also be divided between the two parties, but the quantity necessary for feeding the carabaos in the intervening period between the planting and the reaping shall be deducted before the division. 4. The expenses for the transportation of the share of the landowner shall be met by him, but the work shall be done by the laborer. 5. The lands called " caratin " (lands which become flooded at high tide) shall be the subject of a special contract between the two parties. 6. The seed shall be the landowner's, and shall be returned by the agricultural laborer in the same quantity and quality after the harvest. 7. The total amount of money borrowed by the laborer for the preparation of the land and the planting shall be paid in palay at the current market value. All money borrowed for different objects other than the one already stated shall accrue at interest not higher than that allowed by Act Number 2655, known as the Usury Law. 8. Any member affiliated with the Union ng Magsasaka shall not be dismissed without an investigation by the repre- sentatives of both parties. 9. No member affiliated with the Union fig Magsasaka shall leave or quit work without six months' notice to the landowner. The landowners of Bokawe would not enter into any terms of agreement with the members of the Union, and so the laborers emigrated to neighboring provinces.^ 1 From the report of the Director, Bureau of Labor, 1918. LAND TENURE 271 SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text 1. Cause of the formation of small land holdings in the Philip- pines. 2. Regions in which they predominate. 3. The medium- sized plots and democracy. 4. Regions where large land holdings predominate. 5. Large holdings in relation to extensive agri- culture. 6. The cause of the scattered holdings in Philippine agricul- ture. 7. The bad effect of this system. 8. What steps Filipino agriculturists take to reduce these bad effects. 9. The probable results of education, advance in agriculture, and advance in pros- perity and the standard of living on the consolidation of scattered holdings. 10. Why is the peasant proprietor the backbone of a country like the Philippines ? 11. How can the number of peasant pro- prietors be increased ? 12. Share systems used in the Philippines. 13. The theoretical advantage of the share system over the proprietary system (a) for the laborer, (U) for the proprietor. 14. Duties of (a) the laborer, (h) the proprietor. 15. Division of the crop among the factors of production, that is, (a) the land, (h) the capital, such as carabaos and implements, and (c) the laborer. 16. Abuses of the system (a) by the landlord, (h) by the tenant. 17. Economic status of the share tenant. 18. Can these abuses be regulated by law? 19. What will be the effect of education and general economic progress on the relations between tenant and landlord ? 20. Have a student draw up a bill which shall regulate the aparceria system (share system) by protecting the aparcero as well as the landlord. 21. Have the class convene as the Philippine Senate and discuss this bill. Such a bill was discussed in the Philippine Senate in 1918. 22. Why the public lands of the Philippines should not fall into the hands of a few. 23. How the Homestead Law prevents them from doing so. 24. From Charts XXXIV and XXXV decide which provinces and regions of the Philippines should have the least homestead 272 ECONOMIC CONDITIONS applications ; which the most. 25. Indicate what you think are the principal regions of homesteading, and tell what peoples are settling in each. 26. You own a farm of twenty hectares, but have no legal title to it. You wish to borrow P2000 to make improvements. Will the bank lend you money ? Why ? 27. On what security will you be able to borrow the money ? 28. What interest shall you have to pay ? 29. Compare it with bank interest. 30. The provisions of Act 496. 31. The Land Registration Act. 32. The effect of this law in lowering interest and improving agricultural conditions. 33. The following statistics are taken from the census of 1918 : There are 88,086 farms in La Union with an area of 65,932.89 hec- tares, valued at P38,098,118. Of these farms 1089 are under Torrens titles, 2301 under royal titles, 3581 under possessory titles, 180 under judicial titles, 10,741 under private deeds, and 69,706 under no title other than mere occupation by those working them. Furthermore, 72,593 of them are worked by owners ; the remaining 15,493 are worked by tenants, either under lease or rent, payment being made in produce, money, or labor. In Rizal there are 29,994 farms with an area of 42,981.42 hectares, valued at P9,903,914. Of these farms 2137 are under Torrens titles, 675 under royal titles, 2309 under possessory titles, 462 under judicial titles, 6522 under private deeds, and 16,357 under no form of title other than mere occupation by those working them. Furthermore, 18,061 of them are worked by owners; the remaining 11,833 are worked by tenants under conditions described for La Union. Display and compare these statistics, and on the basis of these data comment on certain economic differences in the provinces of La Union and. Rizal. 34. A Committee on Customary Law has been appointed by the Insular Government. Compile some of the customary laws in so far as they affect commerce, industry, and agriculture in your locality. 35. Under what procedures have these customary laws been applied ? 36. Could they be applied in the regular courts of the Philippines ? 37. How might government bonded warehouses be of assistance to small landowners and to farmers of rice on shares ? LAND TENURE 273 38. Act 2865, passed by the Legislature in 1919, provides for a special committee to take charge of the investigation of contro- versies between the owners and tenants of large estates. Deter- mine what the government has done to carry out the provisions of this law. In 1919 a committee was appointed by the governor- general to investigate and render a report on the tenant prob- lem on an estate in Rizal Province. 39. Act 2508 and the organization and practices of Agricultural Credit Cooperative Associations. 40. Has your province organized any agricultural colonies on public land by authority of Act 2806 ? If so, have they been successful ? If not, why ? 41. In the table it will be noted that the average cost of edu- cating pupils is gradually increasing. Explain why. 42. What percentage of the school population is receiving an education ? 43. If the entire school population of the Philippines receives the same average education that is now being given to pupils actually in schools, how much will it cost the government ? 44. Are the actual plans of the government wider in scope ? Suggestions for the Study of Local Conditions 1. Size of parcels of land. 2. If large plantations exist, explain how they are managed. 3. Systems of share holding, and the eco- nomic and social status of the cultivators. 4. Relations with pro- prietors. 5. Peasant proprietors, their economic and social status. 6. Examples of persons leaving the community to take up homesteads. 7. Examples of homesteads taken up in the locality. 8. Local interest rates on agricultural loans. Suggestions for Reports from References 1. Average size of Philippine farms compared with those of other countries. 2. The peasant proprietors of France, the back- bone of the Republic. 3. In 1918 a strike of tenant farmers occurred in Bulacan, and many moved from the region affected to Nueva Ecija. If possible bring in a report of this or a similar occurrence and explain the fundamental causes, the results, and, in your opinion, the reme- dies which might have prevented it. 274 ECONOMIC CONDITIONS 4. Lessons from the pioneer settlements of the United States which apply to Philippine conditions. 5. What the settlement of the Cagayan Valley, the Bukidnon Plateau, and the Cotabato Valley means to the Philippines. 6. Reasons why greater advan- tage of the Homestead Law has not been taken. 7. In 1913 you filed application for a homestead under Act 926. You have just been granted your Torrens title. Write a letter to a friend telling how you secured it. 8. You have been elected secretary of a corporation which pro- poses to lease land in Mindanao. Write a letter to the stockholders, explaining just what the directors of the company propose to do under Act 926 and the Corporation Law, Act 1459. 9. Look up the records in some local case of land title that has been fought through the courts, and bring in a report as to the points that arose, and that led to the decision granting the Torrens title. 10. Secure the data from the 1918 census, and prepare maps like those on Charts XXIX and XXX. Selections on the Theory of Economics to be applied TO the Material in the Chapter 1. Eent. (Bullock, pages 279-291.) 2. Single tax. (Bullock, pages 324-330.) CHAPTER XIII AGRICULTUEAL LABORS Since nearly all labor in the Philippines is at present agri- cultural, and its problems differ from those pertaining to labor engaged in manufacture and commerce, agricultural labor deserves to be considered separately. Statistics on occupations in the Philippines are often mis- leading; for the same individual frequently pursues more than one occupation. Agriculture is nearly always the chief employment,^ but the income of almost all Philippine agri- culturists is considerably augmented during the off-season and in spare time by fishing, trading, weaving, driving, and similar employments. Philippine Village Labor The provinces of the Philippines are divided politically into townships, and these again into barrios with the centro de poblacion as the center. In most regions the people of the barrios are grouped into villages (sitios), consisting of clusters of from five to several hundred houses. In only a few places do the people live in isolated houses on the land they cultivate. 1 In the economic sense of the word, labor is any physical or mental action which produces wealth. It includes not only manual labor, but that of supervision and direction. In the popular sense, however, the word does not include the effort of supervision and direction. In this chapter the word is so used, and refers to peasant proprietors, tenants for rent, and share and hired laborers. 2 In the United States secondary production is not common ; in the East and in parts of Europe it is quite general. In Germany twelve per cent of the persons engaged in agriculture, forestry, stock raising, or fishing have a second or third occupation (Buecher). 276 276 ECONOMIC CONDITIONS The founding of these villages can often be accounted for by economic reasons,^ but political and social considerations have been even more potent. The persistence of villages has economic, political, and social significance. It is supposed that the Malayan peoples came to the Phil- ippines in boats called " barangayes," under the command of a captain or pilot. The land in a settlement was apportioned among the families, and all continued to live under the direc- tion of the chief.2 These little communities were held together by the need of mutual protection aganist the depredations of neighboring villagers. After the conquest the Spaniards built on this system. They concentrated the people in vil- lages to Christianize them and make their government easier, and also to protect them from bands which had not " come under the bells " and from the Mohammedan Moros of Minda- nao and Sulu. A cause for the concentration of people in rice regions is that the flooded fields are not good places for houses, which are consequently clustered together on higher land.^ 1 See Chapter X. 2 Compare with the discussion of Ilocano immigration on page 224. 8 The result of intervillage warfare in the Mountain Province is thus described by C. R. Moss, Division Superintendent in 1910 : Igorot villages have been settled in easily defendable spots, on account of feuds with neighboring people. The superstition of the Igorots in their primitive state is such as to lead to a ceaseless condition of strife between neighbors. The practice of head hunting is a part of the religion of most wild Igorots. A head is taken from a village ; the people of that village, to appease the spirits, are bound to secure a head from the offenders. The duty of collecting this so- called "debt of life" falls first on the relatives of the beheaded person, and is never forgotten. Such a state of affairs naturally leads to open rupture between villages, and of course, since a village is likely to be attacked, it is advantageous that it be located in a place which is easily defendable. In the northern subprovinces of the Mountain Province, under the vigorous rule of the provincial authorities, the practice of head hunting is being exter- minated, but this attempt is so recent that thus far there has been very little migration from the old villages. On the other hand, in the southern subprovinces heads have not been taken for about two generations, and all the towns are at peace with each other. As a result, the villages are generally smaller than those of the wild peoples, and in their location agricultural advantages have been considered rather than facilities for defense. Their present tendency is to break up into smaller groups and form new villages in places suitable for agricultural work. AGRICULTURAL LABOR 277 Similar agricultural village communities also exist in Java.^ The land surrounding them is often undivided communal land used by all the members of the village. Sometimes it is periodically divided among the people. Some lands have fixed divisions and are subject to periodic assignment. Certain public services must be rendered to the community or to the headman, which were originally a burden on the land rather than on the individual. This might best be expressed by saying that each person enjoying the use of a portion of the village domain pays his rent in personal services to the village. These services consist in building and maintaining roads, bridges, irrigation ditches, markets, cemeteries, watchhouses, and other public works ; in guarding dikes and ditches in time of flood ; in watch duty ; and in certain personal services to the village headman, such as cultivating his ground, caring for his horses, bringing fuel, repairing his house and sheds, cleaning his grounds, and accompanying his wife to market. All these services are assigned and regulated by the headman or village chiefs, and usually may be bought off, like the road tax m America, for a fixed amount. When the Spaniards came to the Philippines, they probably found some such system as this in the villages. A modified form of this system still persists on the island of Cagayancillo, in the Visayas, in Sulu, and among the Moros. It is approached in an organization reported, by Fred O. Freemyer, to exist among Ilocano immigrants in Pangasinan. From four to twelve families come together. The houses are built within a common inclosure, and the land they farm is either owned or rented in common. If it is owned, the title is usually in the name of the headman, who assigns to each his share. If it is rented, the contract is usually signed by the headman only. During the planting and the harvesting the families work in common, but at other times each is given a particular part of the field to oversee. Such work as house- building and the digging of irrigation canals is usually performed in common, the one for whom the others are working being expected to provide a small feast with perhaps " basi " or " nipa vino." In case some members of the community do not own carabaos or other work animals, they are allowed to count two days' work as equal to one day's work of a man with a carabao. They are usually very fair with each other in their dealings. 1 Jsee Bulletin No. 58, Bureau of Labor, Washington, D. C. 278 ECONOMIC CONDITIONS These are the only instances known to the writer where communal land tenure is approached among the Filipinos. If it once existed, it has now disappeared. Group labor, however, is still found in villages. The Filipinos have been opposed to free group labor on public works, because they were so often made the victims of irregular official exactions. Nevertheless, in the last few years group labor has been used in the construc- tion of schoolhouses, churches, bridges, and even for the build- mg of roads. Group labor for the benefit of the individuals of a village is still widely practiced, though it is becoming of less importance. In a few districts it is not practiced at all. Buecher in his " Industrial Evolution " divides labor in common (group work) into three kinds : companionship or fraternal labor ; labor aggregation ; and joint labor. Companionship or fraternal labor occurs when several workers come together and labor without the individual's becoming in the progress of his task in any way dependent on the others. . . . The sole aim in union is to have the company of fellow workmen, to be able to talk, joke, and sing with them, and to avoid solitary work alone with one's thoughts. The student whose work thrives best in undisturbed solitude will on hearing this probably shrug his sympathetic shoulders in pitying con- tempt, and find the subject hardly worth serious consideration. But anybody who has ever observed a group of village women braking flax, or doing their washing at the brookside, or watched a troop of Saxon field-workers hoeing turnips, or a line of reapers at work, or listened to the singing of a group of house painters, or of women at work in an Italian vineyard, will be of a different opinion. The lower the stage of a man's culture, the more . difficult it is for him to stick to continuous and regular labor, if he is to be left by himself. Thus fraternal labor accords very well with the economic principle, even though it originates primarily in the social instinct. In the com- pany of others people work with greater persistence than they would alone, and in general, because of the rivalry, also better. Work becomes pleasure, and the final result is an advance in production. By labor aggregation we mean the engaging of several workmen of similar capacity in the performance of a united task, . . . too heavy for the strength of one person. . . . Labor aggregation is of special importance for seasonal work or for work that is dependent on the weather. . . . AGRICULTURAL LABOR 279 These circumstances have early led to a species of social organization of aggregated labor, founded on the duty recognized the world over of mutual assistance among neighbors. We may use the expression cur- rent among the southern Slavs and call it bidden labor. Whenever any- body has work to be done for which his own household is not adequate, the assistance of the neighbors is sought. They give it at the time with- out further reward than their entertainment, which the head of the house offers in the accustomed way, solely in the expectation that when need arises they too will be aided by their neighbors. The work is carried out in sprightly competition amid jokes and song, and at night there is often added a dance or like merrymaking. . . . We come now to the last kind of labor in common, which we have designated joint labor. Certain tasks in production require for their performance the simultaneous cooperation of various classes of labor. . . . Since they cannot possibly be performed by one workman, several work- men of various kinds must be combined in one group to form an organized and indivisible whole. Instances from agriculture are numerous. Thus in drawing in hay or corn, the load builder, the pitcher, the after raker, in binding, the binder and the gatherer, form natural groups ; in mowing grain a second person is required to glean ; in digging potatoes another gathers them up. In the Philippines labor in common is often performed with the understanding that the beneficiary will work in a like manner for each member of the group, plowing and plant- ing fields in rotation, for instance, and harvesting the crops. The beneficiary of an unusual piece of work, such as house- building, recompenses the laborers by providing for them meals of extra quality and quantity, and by amusements. Such a time is made the occasion of a fiesta. In the Philippines labor in common is often put on a per- manent basis of reciprocity into which the elements of lottery, insurance, and banking enter.^ The most common form is in connection with many of the village economic activities, such 1 The data on this subject were turned over to Conrado Benitez, Instructor in Economics in the University of the Philippines, who prepared this dis- cussion. Reports on the "turnuhan" of Majayjay, Laguna Province, by Getulio Vitasa, and on those of Cavinti, Laguna Province, by Petronio Perez, deserve special mention here. 280 ECONOMIC CONDITIONS as making kaingin ; plowing, planting, harvesting, threshing, and husking ; building liouses ; making hats ; in fact, doing any work which the member whose turn it is wants done. These " turnuhans," for such we shall call them, are not regu- lar associations with formal rules and regulations. They are simply spontaneous associations of persons with a common aim to help each other, and different places have different practices in regard to details. In the town of Cavinti, in Laguna, for example, help is given to one of the members once a week. Those who fail to help must work alone some other day, or give an equivalent in money, namely, half a peso. The man who was expected to work with a carabao must pay a peso and a half in lieu of service. This payment of money in place of service is a modern development, as shown by the fact that in tlie original " suyuan " to pay money is considered a breach of good manners ; for the word '^ suyo " means favor, and to pay for a favor is, of course, improper.^ In some towns where hats are made the women help each other. Sometimes the materials are supplied by the members themselves ; in other cases the one for whom the finished hats are intended supplies them. There is always a fixed minimum number of hats to be made by each member, and anybody failing to contribute this number pays the value in money. In regard to food for members during the work, practices again differ. In some organizations members furnish their own food; in others they are fed by the beneficiary.^ 1 Again, this idea that it is improper to receive money for a favor sur- vives even to-day among the servants (not the modernized ones who have seized upon the idea of a tip), who, ashamed to take money from the family guests ordinarily, do so when told that it is for cigarettes or buyo. In fact, to-day, when tipping, it is good manners to say "for tobacco or buyo." 2 Group labor, as originally found in the labor turnuhan, has recently shown an interesting development in the provinces of Tayabas and Laguna, where money turnuhans are being established. The money turnuhan is an association run according to by-laws subscribed to by the members. These require a contribution of money at regular intervals, usually every Sunday, the sum collected to be given to one of the members chosen by lot. The turnuhan runs until every member has drawn the prize. A successful mem- ber cannot draw again. AGRICULTURAL J.A1H)R 281 The tiinuihaiiH ani run in ahoiil Hh'- .same way everywhere, for tluM^on- stituiiouH a(l()|)t('(l in (liflVriuit towns are mere (topics of tli(^ orij^inal fronj Lucban, in Tayahas. The nnnihcr of nn'inhcrs ranges from '2^) to 500, tlie usnal lUimlxT hcinjj^ between 25 and 50. One cxisls in M;ij:i\ jiiy which lias 1000 members, but these are divided into live scrtionsof 1*00 each, and each section is run like an iiuh^peiulent orL;:iiii/:ii ion. Thi^ mana<;('ment is ordinarily in the hands of a dire(!tor, l»iil t<>i I lie hir^er tuiMiuhans thcic an; tiire(( oirKtcrs, (Jie din'etor, tJie ,s('(ii(;ii\ licasnrer, and the insi>ector. 'IMu^ amount of individual fees ranges from 1*0.20 to IM.OO weekly. Tlu^ nundx-r of years that a turnuhan runs depends on its size. From one to five years is the usual tim(^ limit, but sonu' turnuhans must run nineteen yejirs before all the members can get their money back. The manager is granted special privileges for his sc^rvices. Tn many turnuhans lu^ nnuuves tlui first drawing. In all of them i\u\ winner pays a certain jKU'cc'iitage of his prizes (from one to two ])or cent) for tlu^ expenses of nuinagenu'nt. Tlu; turnuhans make ])rovisi()ns for their protection. Mendxirs failing to pay their dues ;it'lir ;i certain number of weeks lose what i\u\y have paid in, and the money I liiis (M)ne('t«'d is dis- tributed among tin; nu^mbers at I lie end. If a mendx'r dies, his share is usually given to his heir, who ((uidniu's to ])ay tlu! »hu's. In some e,as(^« the deceased's shanj is turned ^Z HOUSES the draining of lands about the house, the water supply, and the vending, preparing, and eating of foods. Lack of atten- tion to these matters not only increases the death rate, but affects the physical condition of the people. According to official statistics, out of 7910 deaths in Manila in the year 1917 there were 1448 caused by tuber- culosis of the lungs. This death rate from consumption is i^proached only by the city of Calcutta. Although tuber- culosis is most prevalent in Manila, it is widespread in the Philippines. It is even stated that there is scarcely a single family which has not one member a victim of the disease. Conditions for the spread of tuberculosis are perfect in those TYPES OF PHILIPPINE HOUSES 294 ECONOMIC CONDITIONS parts of the Islands in which there is overcrowding in unsani- tary houses built close together in unsanitary places. More- over, the free access of air, which the construction of the nipa house so well permits, is usually shut off by the Filipino family, since windows and doors are closed at night. Often as many as ten persons sleep in one room, with one or several individuals suffering from advanced pulmonary tuberculosis.^ Organized efforts to combat consumption (antituberculosis work) have already been carried on in Manila for some time, and are now taking effect in the provinces tlirough the schools and other agencies, chiefly the Antituberculosis Society. The energy of the government has heretofore been chiefly spent in combating the dangerous communicable diseases, cholera, smallpox, dysentery, and leprosy. These are now held in check, and more attention can be given to the improvement of general sanitary conditions. According to the Director of Health, conditions on the Islands are better than they have been at any time in the last fifty years; in comparison with other countries it may be said that the Philippines are healthy. By means of quarantine infectious diseases have been kept out ; trained health service has been able to isolate and quarantine infected regions within the country. Towns and cities have been cleaned up. There are now a thousand artesian weWs in the Islands, furnishing pure drinking water; and water works have been installed in several cities and towns. Furthermore, the Filipinos have changed their attitude with regard to sanitary measures; for where formerly they hindered the health oflicials, they now assist them, knowing that what is being done to combat and prevent disease is being done for their own welfare. Proper medical attendance, which has been lacking, is being provided through medical schools. 1 From an article by Drs. W. E. Musgrove and A. G. Sison in Philippine Journal of Science, Vol. V, No. 3. AGRICULTURAL LABOR 295 Clothing In the temperate zones, during a large part of the year, clothing is required to keep warmth in the body and protect it from dirt. Clothing in the tropics has the latter use to an even greater extent, on account of the presence of a greater number of bacteria ; with respect to temperature, its use is to protect the body against heat. The clothing of the Filipino agricultural laborers is now well suited to their needs. It con- sists essentially of a broad-brimmed hat and of an upper and lower garment. Professor H. D. Gibbs, from his investigations on sunlight, in the Philippine Bureau of Science, has reached the conclusion ^ that the ideal protection for the body in the tropics is doubtless an umbrella, under which the subject is constantly in the shade, and the radiation and evaporation of perspiration are unobstructed ; and that it is remarkable how the broad hat and scanty, loose garments of the native in the tropics approach this form of protection. However, good clothing is often worn for the pleasure it gives the wearer, and the requirements of the Filipinos have increased in greater proportion here than elsewhere. The Filipinos as a race desire to appear neat and well dressed. Hence much imported cloth, such as drills and calicoes, is worn ; the use of shoes, even among the agricultural laborers, is now rather widespread ; where a few years ago shoes were luxuries, they are now necessities. Amusements Relatively to his requirements for physical well-being the Filipino laborer has greater physical pleasures than the laborer in America or in Europe. He is materially better off than the laborer of Porto Rico or Java; for in the latter countries the great pressure of the population places before the poor man the unwelcome choice between constant toil and insufficient 1 From " Original Communications, Eighth International Congress of Applied Chemistry," XX, 176. 296 ECONOMIC CONDITIONS nourishment.^ The amusements of the Filipino may be enu- merated as follows : gambling (at cards and other games, and at cockfights), fiestas, music, dancing, sipa (a game played with a rattan ball), and new amusements (such as phonographs, cinematographs, and the like). The degree to which these amusements are enjoyed by the people is not the same through- out the Islands. Mr. Gil Raval, writing from Ilocos Norte in 1910, reports as follows: Their amusement is almost nothing. Drinking too much basi or wine at a wedding or christening party, and dancing and singing in the rice fields during rice harvest, are regarded by them as their most enjoyable times outside of Christmas and the Fiesta of the Patron Saint of the town, when there are fireworks and " moro-moro." The farmer's wife has another kind of amusement. It is her great delight to go to church on holidays and to market on market days. She wears her Sunday dress, and on her head puts a finely woven basket full of vegetables and other things to be sold in the town. With the money she will surely buy several skeins of brightly colored cotton thread and one or two coconuts. Gambling with cards is unknown to these people. Cock- pits in this region are not very well attended by farm laborers as compared with those in the southern provinces. It is safe to say that about ninety-eight per cent of the attendance in the pits here consists of those town people who follow gambling either for amusement or for their living. The following, however, describes other conditions : The bulk of the money received goes for ceremonials, weddings, bap- tisms, and such fiestas, at monte, the cockpit, and the like. Cockfighting is not a sport for sport's sake, nor even for the sake of seeing blood shed, but a game of chance. Cock- fighting, cards, and lotteries were previously encouraged; the Filipino's desire for games of chance is largely a question of custom and inheritance. It is widespread among all classes. According to the authorities of the Hawaiian Sugar Planters' Association the Filipino is the foremost gambler of the various peoples there ; out of the one hundred and thirty-six convic- tions of Filipinos in the district court of Honolulu eighty-two 1 Bulletin No. 58y Bureau of Labor, Washington, D. C. A Cockfight Athletic Games OLD AND NEW AMUSEMENTS 298 ECONOMIC CONDITIONS were for being present at gambling games. The ill effects of gambling on the mental and moral qualities of a people are marked. The effects on economic conditions are just as great. The desire of the devotee of cockfighting and gambling at cards is not only for diversion, but for money easily gained. His hope is to obtain in a day what would ordinarily take months or years of drudgery to earn ; often to win freedom from a debt which holds him bound to the land. On the other hand, gamblmg is often the very cause of such a debt. A large population dependent on gambling for a living offers a bad example of comfortable idleness to the productive agricultural laborer. In addition there is great economic waste connected with cockfighting in the time and energy spent on raising and training the cocks and on the food provided them. The imme- diate effect of this can be seen in the inferior condition of Philippine poultry (see Chapter XIV). As early as Pigafetta's time the evil effects of cockfighting are noted. The sums of money that pass hands are large in proportion to the means of the gamesters. It is evident that this sort of diversion demoral- izes more and more a people which is of itself given to idleness and vice, and which is easily led by the impressions of the moment. The people cannot resist the temptation to get money without working for it. Many load themselves with debts on account of the losses which they suffer ; the bandits and pirates are in great part ruined gamblers. Among the younger generation gambling is of much less importance than with the older people ; even among the latter it has decreased because of the sentiment aroused through schools and organizations, and because of laws prohibiting lotteries and games of chance, and regulating cockfighting. However, people must have amusements ; if one is taken away, another must be substituted. Through the schools athletic games are being given to the people ; these games will in time probably supersede cockfighting, while better homes, higher standards of living, and widespread social life will lessen general gambling. Greater economic effort and interest in production will diminish the amount of idle time AGRICULTURAL LABOR 299 and the necessity of seeking amusement. It is noticeable that least gambling is reported among peasant proprietors. The adoption of baseball by the younger generation, as well as the interest in it manifested by parents, is a remarkable achievement; throughout the Islands the effect of this and of field sports is noted in the decreasing attendance at the cockpit. Besides substituting a clean sport for cockfighting, athletics will improve the physical condition of the Filipinos, and give both participants and spectators an idea of system and of unity. The feasts observed by the Filipinos are both public and private. They occur on holidays and in the observation of marriages, christenings, and the like. When such ceremonials are carried to the extreme, the time lost may be considerable, and the amount of food consumed is often sufficient to feed a family for several months. A family sometimes spends its entire wealth on a fiesta, and even contracts a debt at heavy interest. Recently school and industrial exhibits, and fairs, have become popular, inasmuch as the industrial idea has been established. Many forms of amusement are finding a place in the Phil- ippines. Among the most important are the phonograph and the cinematograph, both of which are now recognized the world over as excellent and instructive. There are few large Philippine towns in which the cinematograph is not found. Summary The standard of living has been raised much in the last ten years ; this is perhaps manifest to the greatest degree in the better quality and the greater amount of clothing used, and in the higher forms of amusements ; the careful ob- server sees advances in housing and food also. More strong- construction houses are being built ; sheet iron is being substituted for nipa roofing; and cement houses are seen here and there. There is greater demand for tools, cutlery, 300 ECONOMIC CONDITIONS and the like. More furniture is found in the houses. Kero- sene lamps have been substituted almost everywhere for the dim, open coconut-oil lamps. Pianos, automobiles, sewing machines, and clocks are common. Chart III indicates that the Filipinos are actually eating more rice per capita. Chart XXXII shows that in the years from 1900 to 1917 the 1900 1902 1904 1306 1908 1910 ' 1912 1914 1916 1918 PHILIPPINE ISLANDS Increase in Imports of Luxuries in Millions of Pesos Statistics froni Reports of the Collector of Customs / \ / / \ / \ / 4 \ / / / / ^^ /\ / / / / / CHART XXXIT. INCREASE IN IMPORTS OF LUXURIES imports of what had been luxuries for the Filipinos increased almost tenfold. 1 During the same period the total imports only trebled. This elevation of the standard of livitig has come about (1) through greater production and a larger portion thereof received by the laborer, (2) from general education, (3) as 1 The dates and the articles selected preclude the possibility that the increase in these products is consumed by the foreign population. AGFvICULTUKAL LABOE 301 the result of travel, and (4) from the example of returned travelers and strangers. It is seen in all classes, but chiefly in the middle class now springing up. EDUCATION AND TRAINING Walker in his '' Political Economy " states that the intelli- gent laborer is more useful than the unintelligent for the following reasons : (a) Because he requires a far shorter apprenticeship ; he can learn his trade in a half, a third, or a quarter of the time which the other requires ; (J)) because he can do his work with little or no superintendence ; he is able to carry instructions in his mind, and to apply them with discretion tc the varying conditions of his work ; (c) because he is less wasteful of materials ; (d) because he readily learns to use machinery, however delicate or intricate. Brains are not alone required for the invention of machines ; they are required for their adjustment, their ordinary use, and their occasional repair. The Filipino laborer is lacking in education and training. In Hawaii it is found that he is so unaccustomed to work, and is so ignorant of the customs and conditions found there, that it requires a considerable amount of time to train him for the work on the plantations. In the Philippines it is now recognized that the laborer accomplishes a good day's work if he is intelligently supervised, but that he requires a foreman to keep him busy and show him what to do. In other words, he is lacking in system. The reason is that he has had open to him few kinds of activity other than the agricultural, from the most primitive times. Therefore, when he is required to do work which needs more intelligence and the use of modern implements, he is at first inaccurate. His final success in competition with other nationalities in the Hawaiian Islands, and the satisfaction which he gives not only on modern estates in the Philippines, but on public and -private works, has demonstrated, however, that by training he may become an effective laborer. 302 ECONOMIC CONDITIONS Dignity of Labor The ideas of a people as to dignity of labor in general and of certain forms of labor in particular are not the same, but are principally the result of local conditions. This is evident in the case of the Filipino. The older generation of the Fili- pino deemed any kind of physical labor a lowering of social position, an idea doubtless obtained from medieval standards during the colonization of the Philippines.^ The Filipino thought himself elevated socially when he was able either to direct manual labor without doing it himself, or to do work which did not soil his clothing. Up to the last few years almost the only form of manual labor found in the Philip- pines was agriculture, and the agriculturist was to a greater or less degree bound to the soil. Thus the manual laborer was looked down on ; indeed, he himself fek that he was inferior, and thought that if he could acquire enough land to live without labor or could become a clerk, his position in life would be much more agreeable and his class higher.^ Soft hands and soft muscles, and a life of ease without re- sponsibilities, were the end to be attained. Education, policy, and example taught this. These marked the " illustrado," the man of dignity, education, and affluence. They set him apart from the producers of wealth as a person to be respected and perhaps feared, one to be envied and imitated. 1 To obtain an idea of the dignity in which manual labor was held in Spain during the time of its greatest influence on the Philippine character, Le Sage's "Gil Bias" should be read. This picaresque romance gives an idea of conditions existing at that time. 2 In certain countries of Europe and in Japan, where the feudal system once existed, this feeling still persists. In new countries such as the United States and Australasia manual labor is not looked on as degrading, nor does the farmer or mechanic feel himself inferior to the man who works in an office, or who directs others. Greater wealth and the possibility of obtain- ing a living with less work are striven for, but the laborer is not considered inferior, nor does he feel inferiority. This condition, the willingness to sub- mit to discipline, and an equal opportunity to advance, are the foundation of democracy. AGRICULTUEAL LABOR 803 The Filipino, therefore, has considered labor, and particu- larly manual labor, undignified. It is interesting to note the relative dignity which he attaches to the different kinds of effort open to him. The following lists are the result of observations made by different persons : In general 1. Lawyer and doctor. 2. Government employee. 3. Merchant. 4. Big landowner. 5. Independent farmer. 6. Fisherman. (Ranks higher than 7 because independent.) 7. Tenant farmer. 8. Water carrier. 9. Road worker, laborer in general. 10. Street cleaner. 11. House servant, "muchacho." In Sorsogon 1. Office worker. 2. Foreman. 3. Farm worker. 4. Road worker. 5. Pruning. 6. Abaca stripping (servant). In Cehu 1. Official. 2. Teacher. 3. Clerk. 4. Farmer. 5. Fisherman. 6. Tuba gatherer. 7. Servant. 8. Wood vender. 9. Grain vender. In Moro 1. Sailor. 2. Diver. 3. Boat builder. 4. Carpenter. 5. Agricultural laborer. The fact that the Filipino was so long excluded from cleri- cal positions has given to these an enhanced value in his eyes. Nevertheless, the Filipino really prefers agriculture to other kinds of manual labor, principally because he has always been used to it. Agricultural labor necessarily has little dignity in it where the worst phases of the kasama system exist ; but in many places it is considered honorable when in- dependent. Respectability usually rests more on the owner- ship of land than on anything else, and a family tries to belong to the landholding class even if the ownership em- braces only a barren hillside. The Filipino prefers agricultural work not only because he is used to it, but because it offers 304 ECONOMIC CONDITIONS him greater freedom than routine work ; it allows him to work in the early morning and late in the day, and to rest during the heat of midday ; it is often nearer his home, and by having no boss over him he can work according to his own inclinations. The Filipino laborer will often refuse day labor on roads or other constructions, to go to work in the fields at even half the wages. Some forms of agriculture, such as rice planting and harvesting, seem to be held almost in venera- tion ; in places it has been practically impossible to get men to do any other kind of work during the agricultural season. In the last few years the Filipino's ideas of manual labor have changed greatly. There is a general concurrence in this opinion in every part of the Islands. This change has un- doubtedly been brought about by democratic examples, by the teaching of democratic ideas, and by the greater oppor- tunity and measure of reward offered to the laborer. In the more advanced agricultural regions the wealthier farmers and proprietors are not a,shamed to be seen in working clothes superintending the farm or even doing work on it. In the schools and industrial exhibits the dignity and the value of work have been emphasized. When the common schools were first established in the Philippines under the American regime, family servants often carried the pupils' books to school. Students generally expressed great distaste for any kind of industrial work. This was a reflection of the ideas of their parents on the aims of education and the dignity of labor. To-day, however, this dislike of industrial instruction is not evident even with respect to such forms as gardening and growing corn, which necessitate work in the soil. The causes responsible for the almost revolutionary changes in the Filipino's attitude toward manual work in general, and agriculture in particular, may be enumerated as follows: (1) change from the medieval to the American point of view ; (2) change in the aims of education ; (3) industrial work; (4) inflow of capital, giving wider opportunity for employment in various kinds of industrial effort ; (5) greater AGRICULTURAL LABOR 305 protection afforded to the laborer in the reward for his labor ; (6) increase and diversification of wants. Decrease in the drudgery of agriculture by the adoption of better methods and more machinery will enhance the dignity of this occupation. Reward for Labor bonded debtors! There are two classes of persons held by debt in the Philip- pines, the household servants and the ordinary laborers. The first class is common, and usually comprises youths of both sexes from ten to twenty years of age. There are provinces and parts of provinces where most of the household servants are so held ; indeed, it is a common way of holding servants. The second class includes laborers of various kinds, such as farm hands, cattle herders, gatherers of tuba, and watchers of coconut groves ; even sailors are included, and others who, although not properly household servants, may be called on by their creditors for occasional personal service. Such laborers are usually mature men who become indebted. Generally both classes of debtors are unable to read and write, and cannot perform simple arithmetical calculations ; the second class, however, being older, are able to do the simple calculations required in changing money. The debts of laborers are incurred either by the laborers themselves or by their parents. The debts of servants are almost always incurred by the parents. There are various ways by which a parent pledges the service of his child for debt. The simplest one is where he borrows money from a rich man on the security of the labor of his child, who serves in the house of the creditor till the principal is paid. Another way is where a parent already in debt has some rich man assume it, and for security gives his child to be held until he 1 For the relation between the share system and bonded debtors, see page 249. 306 ECONOMIC CONDITIONS is able to pay. Sometimes the debt is inherited by the son at the death of his father. Sometimes a man, having taken on credit more goods than he can pay for, gives his child to pay his debt. It is a certain sense of honor, and reverence to their parents impels many to pay off such debts. The average amount of the debts incurred differs in the different provinces ; individual debts vary even more widely. Generally speaking, they range from five to a hundred pesos ; the average amount in the Islands is probably from twenty to thirty pesos. Naturally we should expect the debt to diminish with the length of service, because the servant, as will be shown later, often receives a salary. But in many cases the debt increases in spite of the monthly deductions for salary, either because new loans are made or because the servant is charged for clothing given to him, and usually also for articles lost or broken by him. From some of the accounts kept by the creditor it would seem well-nigh impossible to pay off a debt with service, since the reward for such service is small.^ ^ Copy of the original account of a servant who began service on February 1, 1911, at 3 pesos a month: Took cash P 10.00 Took cash 2.00 Took 1 hat 1.25 Took cash .50 Took cash .50 Total P 14.25 Salary for 3 months 9.00 Debt increase 5.25 Took cash P5.50 Took 1 pantalon drill 1.20 Took 1 patadion 2.50 Took 1 pieza sinemay 2.00 Total P 16.45 Salary for 5 months 15.00 Debt increase . 1.45 Oct. 8. Took two cavans palay 5.00 Took cash 3.00 Took cash .50 Took cash 3.00 Feb. 1. Feb. 20. March 15. April 4. April 20. April 30. June 3. June 22. Aug. 27. Sept. 14. Sept. 30. AGRICULTURAL LABOR 307 The household servants, as a rule, do not get a regular sti- pend. They are given their food and usually the cast-off cloth- ing of the creditor's family. Occasionally they receive some spending money during a fiesta. Some creditors charge them for clothing; but others, especially the rich, do not. Those who get a regular salary are given very little, from half a peso to three pesos a month. This amount is generally less than that given to nonbonded servants, who get from four to seven pesos a month. The treatment of household servants differs with different creditors. As a general rule, they are treated as inferiors, but nevertheless their lot is not grievous. They are usually better off with their masters than they would be by themselves, because their physical needs are satisfied, and they do not become public charges. Those who have reported on the subject make the same general observation, that indebted servants abound in those regions where, on account of the density of population, conditions of living are hard and a chronic state of poverty exists. Of course we must recognize that there are individual attitudes toward the servant class. There are some creditors who chastise their servants regularly, and for slight mistakes ; there are those who, by means of in- correct accounts, try to keep their servants in debt for longer periods of time than necessary. On the other hand, many creditors treat their servants kindly, although as inferiors ; some treat them as members of the household, and give them a chance to improve their conditions. It is even reported that an unusual number of masters help their servants in marriage by giving them either a house or a piece of land to cultivate. Several causes hold these servants to their lot. In the case of children pledged by their parents the chief cause is, of course, parental authority. This is probably the most potent force that keeps them in practical bondage. A second cause, especially in the case of those whose debts were self-incurred, is the difficulty of getting a living, already alluded to. Again, custom plays an important part, and is reported to be one of 308 ECONOMIC CONDITIONS the cliief forces that hold bonded servants. Moreover, in many- cases the servants believe themselves to be held by legal bond. It is seldom that a written contract is made ; in many cases where none exists the servants are nevertheless made to be- lieve that they are held legally. Other forces, such as shame and a certain sense of honor, have been reported, but prob- ably loyalty would describe better the feeling which binds many servants to their masters. If we look only at the sur- face, we are shocked to find the existence of a servant class that is practically in bondage ; however, our feeling is modi- fied when we understand the close personal relationship which takes the form of protection on the part of the master, and loyalty on the part of the servant. Bonded debtors as described here are disappearing in a good many communities ; there are fewer of them to-day than during the Spanish administration.^ The following is a list of some Filipino names for bonded debtor and interest: Dialect Bonded Debtor Interest Tagalog Pampanga Bicol Misamis . . . . . . Visaya alila, bataan, alipan, muchacho, propis magipus bataan, uripen, para utang, prenda, recibo prenda, hipoteca olipen, sologo-on, su- lugo, utangan, bina- tonan patubo, upa sa salapi, pakinsbang, tube, baba, i uteres tubu halaga, tube, pagpagan- ancia, interes, per ciento tube, saca dihap, tube, patubo, saca pasaca REWARD AND INCENTIVE TO LABOR The Malayan idea of incentive to work has been debt and fear. The modern idea is greater dignity and reward. It is obvious that bonded debtors have no incentive to labor. 1 The data on bonded debtors were turned over to Conrado Benitez, In- structor in Economics, University of the Philippines, who, with the help of additional information collected by him, wrote the above discussion. AGKICULTURAL LABOR 309 Their position does not improve with greater effort on their part. Tlieoretically speaking, the various Philippine agri- cultural classes can be graded as follows with respect to their reward and its effect on incentive to labor: (1) bonded debtors ; (2) wage workers ; (3) share workers and share ten- ants; (4) peasant proprietors. However, other conditions must be taken into consideration, especially the education and char- acter of the laborer, and the attitude of the employer toward him. The share system offers no incentive where exorbitant rates of interest hold the tillers of the soil practically inden- tured to it. The laborer for daily wage is not efficient if held in the same manner, or if not imbued with sufficient honor to give equivalent labor for his wage. Even the peasant pro- prietor may be a relatively inferior producer if false pride in his position as landholder and the love of gambling draw him away from the land. In all these points the Filipino agricul- tural laborers differ, not only individually, but by groups and according to customs and conditions in various regions. In general, however, the Filipino has lacked incentive to labor because he has not received the rightful share of his production, and has not been protected in his property. Small return, lack of security, and apathy of the government toward industry contributed not a little to foster indolence. Greater effort did not result in greater reward. The laborer could be deprived of his savings in many ways. The possession of much wealth carried certain dangers with it. Hence the Filipino lacked incentive to earn more than the bare neces- sities, and came to feel that only by immediately consuming them could he enjoy the results of his labor.^ Unlike the working classes in Europe and the United States, where harder conditions of living exist, the Filipino workers cannot be driven by the scourge of necessity to sustained indus- trial activity ; hence the relation between reward and efficiency is especially important here. ^ The writings of Jos^ Rizal may be consulted on this point, that the in- dolence of the Filipino results from lack of incentive to labor. 310 ECONOMIC CONDITIONS Numerous instances may be cited in which it has been proved that the greater the FiKpino's incentive to work, the better laborer he becomes. Small piece contractors on local railroads show twice as much efficiency as day laborers.^ In the Hawaiian Islands the Filipino contract laborers in cane cutting, and contractors who cultivate a piece of ground and sell the product to plantations, earn more than the day labor- ers. Furthermore, sugar planters there say that although the Filipinos do not work regularly in the beginning, yet after the first money is spent for fancy clothes and ornaments instead of for the necessities of life, they usually settle down to regular work, earn more than enough to live comfortably, and increase in efficiency. With better education, with the knowledge that he will be protected in the reward of his labor, with greater and higher wants, the law of increased efficiency with increased reward will apply to the Filipino even more than it does now. Mobility of Labor The demand for labor in agriculture varies with the season ; it is greatest at the seasons of planting and harvesting. The degree to which this demand is supplied depends on the mobil- ity of labor. In the United States, for instance, there is an exodus of workers from the city to the farm and the orchard during the harvest seasons, and a movement of laborers from south to north as the crops mature. In Ceylon there is a seasonal movement to the tea plantations from India. Such seasonal labor movements occur in the Philippines also. Within given regions they often take place from town to town ; one town plants a kind of rice which matures early, another a kind which is harvested late ; and so the harvest occurs at intervals. In such regions many persons move from town to town to help in the harvest. When the crop is short in any one place, an especially large number of persons participate 1 Report of the Philippine Commission, 1907, p. 1021. PHILIPPINE ISLANDS MOBILITY OF LABOR H Regions from which seasonal ^ labor is drawn ^ Regions to which seasonal ^ labor goes (Data from Economic Reports, Bureau of Education inil-1912} N. (Form 1 U *, Fonnosa CHART XXXIII 312 ECONOMIC CONDITIONS in the exodus from it to the rice fields of more fortunate regions. These people often belong to the small floating popu- lation which goes from barrio to barrio as work demands, but most of the harvesters are permanent residents of some one locality. Hence the ill effects of this system can be seen (1) in the temporary abandonment of home and domestic animals (whole barrios are often deserted), (2) in time lost in trav- eling, and (3) in loss in education of children taken from school. Yet such an influx of laborers is often necessary for the harviesting of the rice crop ; in densely populated districts the added supply of rice so obtained is very important. There are also several large areas in which the labor supply for the harvest is deficient, and definite regions from which labor is commonly drawn to them. Such regions are shown on Chart XXXIIL The character of the migration from Panay and Cebu to the sugar fields of Negros has already been discussed in the chapters on sugar and land tenure. The migration involves several thousand men, usually not accompanied by their fam- ilies. Most of these are rice farmers, who leave after the harvest and return for planting, a period from November to March. Many go back to their homes as poor as they left them, or with only better clothing. Some have saved money for the purchase of land or work animals. This differs from other movements chiefly in that the laborer is under contract and works for a wage. There is also a migration from parts of Batangas to San Pablo, in Laguna Province, and to Tayabas Province, where the laborers work in the coconut groves. The other great seasonal labor migrations indicated on the map are in connection with rice harvests. The most impor- tant of these is that of Ilocanos to the central Plain of Luzon (the provinces of Pangasinan, Tarlac, and Nueva Ecija). This migration occurs from December to April. Rice matures early in the Ilocano provinces ; after the harvest hundreds of fam- ilies journey south in groups, some walking and camping, AGRICULTURAL LABOR 313 others going by sailboat. They harvest rice for one fifth of the crop. Some convert their share into money, but most of them return by boat with the rice. Many take cloths woven in their homes or in their locality and dispose of them to the people of the Plain. The Ilocanos are the most mobile of all Filipino peoples. Harvest by outsiders is not always to the economic advan- tage of the owners of small rice fields, but custom permits anybody to help in the harvest for a share of the crop. The ill effect of the large share given to the harvesters has already been explained (Chapter II). Lack of mobility of labor in certain regions of the Islands may be accounted for by the antipathy of the people, and by the debt system, which holds them to the locality.^ The establishment of peace conditions, the construction of rail- roads, and in general the improvement in means of communi- cation tend to increase the mobility of labor. This is noted in all parts of the Philippines. Plantation Labor The discussion of agricultural labor as presented in Chap- ters XII and XIII is from the point of view of the country as a whole, and with respect to systems of agricultural organi- zations now extant. Investment of foreign capital in Philip- pine agricultural enterprises has usually taken the form of plantations on which a supply of efficient labor must be established and maintained. The increasing number of such plantations makes the question of an effective supply of labor extremely important. Early during the American occu- pation it was recognized that such a supply did not exist here, and the admittance of Chinese coolie labor was agitated. As a result, such labor was excluded by law from the Philip- pines, chiefly for the following reasons : (1) the natives object 1 This question is taken up at length under the heading Density of Population in Chapter XVII. r 814 ECONOMIC CONDITIONS to the Chinese ; (2) the Chinese seldom remain primary- producers for any length of time; (3) the Chinese become a commercial class, driving native and white merchants out of business. Since the passage of the exclusion law, there has been suggested the possibility of bringing in indentured coolie laborers under contract to leave the country at the end of their term of service. In view of the fact that such systems have been recently repudiated in countries which have used them, such action would be a distinct step backward.^ Plantation labor here must therefore be Filipino. Much doubt was at first expressed as to whether Philippine agri- cultural laborers would ever be efficient enough for planta- tion purposes. In view of experience with them on various plantations now established here, and their success in com- peting with the laborers of other nationalities on the planta- tions of the Hawaiian Islands, it appears that the Filipinos make efficient resident plantation laborers if they are paid a just wage, are well housed in villages under attractive sur- roundings, are provided with amusements, are superintended by overseers who understand them, are assured of the receipt of the total wage earned, and in general are treated with justice. The use of a bonus, share, or piece system is also efficacious.^ The creation of a supply of resident labor on a modern plantation is, of course, imperative. The measure of success which the Filipino laborer has attained in the Hawaiian Islands and the cause of it may be understood from the following extracts : ^ Filipino immigration to Hawaii was started in a small way in Decem- ber, 1906, between which time and December, 1907, approximately 1 For a discussion of this point, see any United States text on colonial government. "The History of Colonization" (published by the Bureau of Education, Manila), Chapter XVI, may be reviewed. 2 The question of the supply of such labor and the regions from which it can be drawn is taken up under the heading Mobility of Labor (page 310) and in the treatment of emigration in Chapter XVII. 2 These extracts were taken from a communication received from the Hawaiian Sugar Planters' Association, Bureau of Labor and Statistics, in AGRICULTURAL LABOR 315 200 Filipinos were brought in. In May, 1909, recruiting operations were again commenced, and from July, 1909, to September 30, 1912, approximately 10,400 arrived. On October 31, 1912, our plantation pay rolls showed that there were 6724 men, 50 women, and 29 minors regularly employed. Of these, 2 men were working as skilled men, 5130 working as day laborers, 1291 working as contractors, and 301 working as profit-sharing planters. Day laborers receive wages at the rate of $20 a month of 26 days of 10 hours each, plus overtime, and extra compensation for Sunday work when required. They are also entitled to a bonus on their yearly earn- ings, if they have averaged 240 days' labor for the year on the same plantation, at a rate based on the New York prices of sugar. During the last year this bonus amounted to 13 per cent, and partial returns from 35 plantations show that 841 Filipinos received $15,487.02, an average of $18.42. Contractors are gangs of men who undertake certain specific planta- tion operations, such as cultivating fields of cane, cutting, loading, and the like, and are paid so much per ton of cane. Contractors receive a considerably larger amount than ordinary field laborers, ordinarily earning from $26 to $35 or $40 a month. Profit-sharing planters are those who take over portions of land and raise cane for sale to the plantations. These men also receive consider- ably higher amounts than day laborers. In addition to wages all laborers are furnished free of cost with com- fortable houses, firewood, water for domestic purposes, and medical and hospital attendance. Comparatively few of the Filipinos coming to Hawaii have pre- viously been accustomed to continued or systematic work, and their development into satisfactory laborers involves time, patience, and care- ful supervision. I think, however, that they compare favorably with the initial immigrants of other nationalities. At first many of them do not work regularly, and we have noticed a tendency after the first pay day to lie off and spend the money earned, much of it going for fancy clothes and adornments, rather than for the necessaries of life. After the first money earned is spent, they are more apt to settle down to regular work. After finding that they can earn more than enough to live comfortably, and that they can make some saving, the majority of them increase in efficiency. Recently a good many of them have been returning to the Philippines, paying their own passages, with considerable sums of money saved up. answer to a schedule of questions. It must be remembered that the report was made on Filipinos in competition with labor from practically all coun- tries from which contract labor can be brought into the Philippines. 316 ECONOMIC CONDITIONS At first the Filipinos are not capable of doing the heavier work on the plantation, and so far few of them have taken the heavy loading eon- tracts ; in the other kinds of plantation work they are gradually taking their places, even in the mills ; those who are doing contract work are, of course, above the average in efficiency. The motives causing Filipinos to come to Hawaii are difficult to designate, since they probably vary in different cases. My impression is, however, that a desire for a change and a prospect of bettering their positions are probably the chief motives. . . . This office has no accurate knowledge of the number engaged in other gainful occupations. Many of the Filipinos are working for the Federal Government in construct- ing the dry dock, as stevedores, as yard and house boys, and in the pineapple industry. . . . Although the beginning of any immigration naturally has its draw- backs and discouragements, and there are many exceptions to the gen- eral rule, our Association has, on the whole, found it worth while to encourage the coming of Filipinos. The majority of them have never been accustomed to work, come poorly clothed, ill-fed, and ignorant of our customs and conditions, and it requires a considerable amount of time for the proper building up of their bodies, and training them for the work. When this is done, however, the majority prove fairly steady and efficient workers, and seem willing. The average man is not unruly, and all comply .with camp sanitary requirements.^ The experiences of large Philippine plantations, such as the San Jos6 and the Calamba Sugar Estates prove that the Filipino agricultural laborer is efficient when satisfactory conditions of living, working, and remuneration are maintained. SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text 1. The dependence of the economic position of the Philippines on its agricultural labor. 2. The village system of the Philippines. Why it developed. 3. Philippine regions in which scattered farms are the rule. How these developed. 4. Will the village system persist ? Give reasons. 5. Points in favor of and against the village system. 6. Labor in common. Examples from the Philippines and other countries. 7. Is it being less used in the Philippines ? Why ? 1 In 1918 more than 2700 Filipino laborers went to Hawaii, most of them from Cebu, the Ilocos provinces, and Oriental Negros. Fewer than 1000 laborers returned from Hawaii that year. AGRICULTUKAL LABOR 317 8. Explain the relation between group labor and the modern mutual-insurance company. 9. Explain the difference between health, accident, life, fire, marine, and fidelity insurance. 10. Mutual- benefit and benevolent societies in the Philippines. 11. Three points with respect to efficiency of labor. 12. Should the efficiency of the Filipino increase ? Why ? 13. Plans for improvement in the standard of living of the Filipinos. 14. Public libraries, the reading habit, and gambling. 15. The relation between reward for labor and efficiency of labor, as noted among different kinds of agricultural laborers in the Philippines. 16. In 1918 retail prices on the principal articles of consump- tion, such as rice, flour, and cotton cloth, were about one hundred per cent higher than in 1913. Wages increased about fifty per cent. Were laborers' wages really increased or not ? Explain. 17. Explain how the real wages of an abaca stripper depends on the price for different grades, and on the time and effort required to produce a kilo of each. 18. Change in the ideas with respect to dignity of labor that has been effected in the Philippines during the past twenty years. 19. By Act 2782 the Philippine Legislature has provided funds which will assure every Filipino an intermediate education. What, in your opinion, will the effect of this step be on (a) advance in agriculture, (b) the system of scattered holdings, (c) the size of cultivated holdings, (d) the condition of the aparcero, or tenant on shares, (e) the increase in the number of peasant proprietors, (/) on homesteads, (jj) the efficiency of labor, (h) the reward of labor, (i) the dignity of labor ? 20. Agricultural industries of the Philippines that require seasonal labor. 21. Regions from which it is drawn. 22. You are about to establish a sugar plantation in Occidental Negros. Should you prefer to rely on seasonal labor or on permanent laborers ? 23. What steps will you take to keep your laborers permanently on the plantation ? 24. Explain the difference between " production per man '' and ^' production per hectare," and illustrate your data by references to various countries in the world. (See Miller and Policy's " Intermediate Geography.") 318 ECONOMIC CONDITIONS 25. The following is an extract from a paper published in 1919 : In the Philippines the mortality rate among persons more than five years of age is the same as in the United States, but under that age there are three deaths for one in America. This terrible condition is being considered by the Council of State with a view to reducing the infant mortality. What suggestions on this could you offer to the Council of State ? 26. Show that the standard of living in the Philippines has increased with respect to (a) the amount of food eaten, (h) the quality and diversity of food consumed. 27. In August, 1919, certain men of Manila jwesented a peti- tion to the mayor, requesting that a law be passed abolishing " panguingue" in the city, stating that women neglect their homes, their babies, and their hungry husbands, and that most of the earnings of the tired and hungry husbands are lost. Comment. 28. From the following table of health statistics for the Philip- pines determine the average annual increase of population in the Philippines for the ten years before 1918 : Health Statistics of the Philippine Islands from 1904 to 1917 [Source : Philippine Health Service] Year Philippine Health Service's Estimate of Population Births Deaths Number OF Deaths per 100 OF Births Number Per 1000 Number Per 1000 1904. . 7,765,228 216,176 27.839 146,921 18.920 67.964 1905. . 7,897,237 244,586 30.971 166,555 21.090 68.097 1906. . 8,031,490 215,296 26.806 143,284 17.840 66.552 1907. . 8,168,025 258,010 31.588 138,464 16.952 53.666 1908. . 8,306,881 278,369 33.511 190,495 22.932 68.433 1909. . 8,448,098 243,726 28.850 179,355 21.230 73.589 1910. . 8,591,716 290,210 33.778 191,576 22.298 66.013 1911. . 8,737,775 302,855 34.660 188,412 21.563 62.212 1912. . 8,886,317 290,995 32.746 185,185 20.839 63.639 1913. . 9,037,385 316,056 34.972 154,086 17.050 48.753 1914 . . 9,191,020 347,337 37.791 163,943 17.837 47.200 1915. . 9,347,267 327,206 35.006 176,313 18.863 53.884 1916. . 9,506,170 336,328 35.380 190,430 20.032 56.620 1917. . 9,667,774 350,002 36.203 209,444 21.664 59.841 AGRICULTURAL LABOR 319 29. The Manila Merchants' Association has furnished figures on fourteen of the principal articles of necessity, showing the percentage of increase between the years 1913 and 1919. Four articles of food (Hour, rice, salmon, and condensed milk) show an average increase of 214 per cent, whereas in the case of clothing and cotton goods the average increase on nine articles is 177 per cent, etc. The following is a copy of the table indicating the increases : Food 1913 1919 Percentage OF iNCKEASE Flour, per bag .... Rice, per cavaii . . . Salmon, per case . . . Condensed milk, per case P3.00 5.00 6.50 8.00 P7.00 17.50 23.50 25.00 133 250 261 212 (Average increase on the four articles of food, 214 per cent.) Clothing, etc. 1913 1919 Percentage OF Increase Gray shirtings, per ptece .... P8.00 P20.00 150 White shirtings, per piece . . 6.50 18.00 177 Turkey red cloth, per piece . . 2.50 6.00 140 White cotton drills, per piece . 8.50 22.50 165 Nainsooks (white), per piece . . 2.80 8.00 186 White ground prints, per yard . .08i .27 217 Colored ground prints, per yard .10 .32 220 Cotton colored trouserings, per piece .16 .47 194 Boots and shoes, one kind'with the otl ler 145 (Average increase on the nine articles of clothing, etc., 177 per cent.) Petroleum, per case P4.00 P8.85 121 (Average, 183 per cent.) Cotton yarn has increased 300 per cent. Hardware, paints, oils, etc. have increased more than 200 per cent. Rent for furnished room ^ Rent for unfurnished house y Increased more than 100 per cent. Servants' wages J 320 ECONOMIC CONDITIONS The figures given on page 319 indicate an increase of a hundred per cent in servants' wages during the period under discussion. Was this increase sufficient ? 30. The government bonuses of 1919 were as follows : On less than P2400 per annum, 25 per cent ; On from P2400 up to but not including P4000 per annum. 15 per cent ; On from P4000 per annum, 10 per cent. 31. What was the economic basis for not granting a flat bonus of, say, 20 per cent to everybody ? 32. Were the bonuses granted adequate in view of the figures from the Manila Merchants' Association ? 33. In general, what class of society was better off in 1919, {a) day laborers and persons on salaries, (h) farmers owning their own lands, (c) farmers on shares, (d) merchants, or (e) manufacturers ? 34. Why in general is an increase in prices beneficial to producers, and harmful to persons with fixed incomes, such as laborers and persons working on the basis of a salary ? 35. Why is just the opposite true when prices fall ? 36. Secure data from the census of 1918 and bring in a report as to occupations in the Philippines, indicating the importance of various primary and secondary occupations. 37. Secure data from the census of 1918 and bring in a report on classes of buildings according to the materials in various provinces. Suggestions for the Study of Local Conditions 1. Secondary employments. 2. Village and scattered-holding systems. 3. Forms of group labor. 4. Persistence of group labor. 5. Improvement in standard of living. 6. Examples of reward for labor affecting its efficiency. 7. Seasonal labor. Suggestions for Reports from References 1. Government insurance funds : land title, property and fidelity bond. (Annual report of the Treasurer of the Philippine Islands.) 2. From Act 2581, and the latest annual report of the Insular Treasurer, determine the activities of insurance companies in the AGEICULTURAL LABOE 321 Philippine Islands, and point out the control exercised over them by the government. 3. A study of the business transacted by life-insurance com- panies and fire-insurance companies in the Philippine Islands as reported in the last Annual Eeport of the Insular Collector of Customs. 4. Secure the necessary data from the latest annual report of the Collector of Customs and bring Chart XXXII down to the present. 5. Comment on these new figures. 6. Food industries. (All commercial geographies.) Selections on the Theory of Economics to be applied TO THE Material in the Chapter 1. Standard of living. (Bullock, pages 21-28.) 2. Factors of production. (Bullock, pages 35-45.) 3. National insurance and its distribution. (Bullock, pages 255-260.) 4. Interest. (Bullock, pages 261-270.) 5. Wages. (Bullock, pages 271-279.) 6. Rent. (Bullock, pages 279-291.) 7. Profits. (Bullock, pages 293-296.) 8. The relation of laborers to the product of their labor. (Bullock, pages 318-328.) 9. The labor contract. (Bullock, pages 297-300.) 10. Labor legislation. (Bullock, pages 300-304.) PART III. INDUSTRIES OTHER THAN AGRICULTURE CHAPTER XIY THE ANIMAL INDUSTRY Domestic Animals The Philippines are naturally an excellent grazing country. The grasslands of the Islands comprise approximately forty per cent of the total area.^ In many parts there are extensive ranges of good pasture grasses, as well as large areas of cogon grass, which afford good pasturage if kept closely cropped.^ The carabao is indigenous to the Philippines. Cattle, horses, and goats were introduced by the Spaniards from Europe, Mexico, and China. These rapidly increased in number, and by 1609 were raised on stock farms in different parts of the Islands.^ Before 1888 the amount of live stock in the Philippines was greater than the needs of the people required. In the grazing regions there were many thousand head of carabao, cattle, and horses ; and plenty of animals were available for agriculture. Since that date, however, rinderpest, surra, and the ravages of war have reduced the number to only a frac- tion of what previously existed. 1 See Chart XXVIII. 2 For a discussion of Philippine grazing area, see Miller's " Commercial Geography." « Blair and Robertson's "The Philippine Islands," XI, 89. 324 ECONOMIC CONDITIONS In the consideration of the various domestic animals of the Phihppines the carabao must be placed first, as being the most important.^ Probably ninety per cent of the agricultural and transportation work is done by carabaos. They are used in preparing the land for planting, in cultivating it, and in trans- porting the crop to market. Their milk is used exclusively by the Filipinos. Whether carabaos are better work animals than oxen is a debatable question. There can be no doubt, however, that the Filipino farmers and laborers prefer the carabao, and it is given better treatment and more attention than any other domestic animal in the Islands. The particular advantage which the carabao has over other draft animals is its ability to work easily in mud, where oxen are of little value and the horse is useless. This consideration is a most impor- tant one on account of the semiliquid state to which the low- land rice fields must be reduced before planting. For work in these fields the carabao is the only animal in existence that is satisfactory. Though carabaos can draw heavier loads than cattle, they are really inferior as draft animals, since they are unable to work so continuously or to perform labor in the sun so well. Moreover, they do not increase so rapidly, and are somewhat more susceptible to disease. The cattle found in the Islands came originally from China and Spain. There were formerly large numbers of them, but diseases have now so reduced them that only a few small herds are left. The larger of the native cattle make good work animals, and many of them are used for that purpose. Most domestic cattle, and particularly those of the larger herds, are small in stature and are killed for beef. Their small size is not due to the lack of feed, but to deterioration, since no fresh blood has been introduced into the herds for a number of years. Besides these native cattle several thou- sands have annually been imported from China, Indo-China, and certain other countries. Most of these were intended for 1 This discussion of Philippine domestic animals is taken largely from the Agricultural Review, Vol. IV, No. 9. THE ANIMAL INBUSTKY 325 meat, but a large number were sent into the provinces and used for agriculture or transportation. To improve the local stock, the Bureau of Agriculture has from time to time im- ported various breeds. Some of the crosses produced have proved satisfactory. Among these the Nellore cattle of India are worthy of special mention, since they are seldom attacked by the tick and resist rinderpest, the two chief cattle pests in the Philippines. Little fresh milk is used in the Philip- pines, and only a few milch cows have been imported, from Australia. The horse of the Philippines is a descendant of the Sulu horse and the horses brought by the Spaniards from Mexico and China. Although it is a small animal, probably no other breed of horses in the world has the combined qualities of style, action, vigor, and endurance to the same degree that the Philippine breed has. This has doubtless come about from the little attention given to these animals ; and thus, by a process of natural selection, those have survived which are best fitted to endure the conditions of Philippine life. The Philippine horse is used for riding and light hauling. No heavy work in the field or on the road is performed by it ; cattle and cara- baos are used instead. In mountainous regions horses are often utilized as pack animals. To a person familiar with the horses of Europe or America the uniformity in the types of Philippine horse and its limita- tion to light draft work seem peculiar. The types of European and American horses are many and varied, from selection and breeding. Some are strong, massive draft animals, used to pull great loads through the streets. Others are bred for work on farms. Then there are horses for driving in carriages, and others for riding. Within each of these types there are subtypes. The horses from certain localities in the Philippines, such as Abra, Batangas, and Cebu, have a reputation for strength and speed, but no breed has been developed here other than the general type. During the last fifteen years the demand for horses in the larger towns has depleted the farms 326 ECONOMIC CONDITIONS of their best animals. The poorer animals have been left to reproduce their kind ; as a consequence, the Philippine horse has deteriorated. Before surra became prevalent in the Islands, the supply of horses in all districts was plentiful. This disease, however, left many towns with scarcely an animal, and everywhere the price given for a good horse has increased several fold. Chiefly for this reason a large number of horses have been imj^orted from Australia. It is important that the native horses be improved. This can be accomplished through selection, better care, and cross- ing with high-grade animals imported from other countries. Horses, since they have greater speed than either carabaos or cattle, would be more suitable for transportation ; except in rice paddies they would be better for plowing and tilling the land. Indeed, in Cuenca, in Batangas, much of the plowing is done by horses ; in certain localities the small native horse is now used for both plowing and tilling. On the wharfs at Cebu wagons are seen hauled by native horses. In the Islands as a whole, however, the horse will not supplant other work animals for heavy transportation and for agricultural work until the breed has been improved. Swine are a source of great wealth in the United States, where large and important industries in agriculture, com- merce, and manufacture are dependent on them. It is doubt- ful if these industries could have attained their present state of development if it had not been for the care taken in im- proving the breeds of swine, to produce the greatest amount of meat and fat from the food given. Swine are bred commer- cially on the farms ; they are fattened for market on food of which the value and economy have been determined by experience or by scientific experiment. In comparison with the attention given to raising swine in the United States the situation in the Philippines is peculiar. Here the swine are really scavengers, for they are seldom penned, and are compelled to find most of their food. The THE ANIMAL INDUSTRY 327 number of swine raised in the Islands is not great, but most families have a breeding female, the young from which are raised and eaten. Usually, however, they are confined to a pen for a few weeks to be fattened by special feeding before they are killed. Philippine swine are long-nosed, narrow-bodied, and flat- sided. Their shape is not conducive to a large yield of fat and flesh, even if they do respond fairly well to feeding. The greater part of the population of the Philippines is dependent on swine for its meat supply. Pork is found in nearly all markets, whereas beef is often lacking. There is always a good local demand for pork in all parts of the Islands, and a constant shipment to the larger towns. There is also a large importation of pork products. Hence the Philippines offer an exceptional opportunity for the raising of swine on a commercial basis. Good food for fattening swine is produced in the Philip- pines. At the present time chopped banana stalks and tiqui- tiqui are the most used, but these are of low nutritive value. Corn, which is probably the best of all food for swine, is raised here. By changing corn into pork the farmers in the United States make millions of pesos annually. Other Philippine food for swine consists of peanuts, sorghums, and the various kinds of beans. Rice bran is abundant and nutritious. The milk of the coconut contains a considerable amount of nutri- ment ; instead of being Avasted, as it now is, it might well be saved and given to the swine, just as in the United States skimmed milk, a by-product of the dairy industry, is fed to them. Coconut milk, however, should be used in connection with other food. Copra cake from the oil presses is also excellent food. However, that the Philippine swine may be profitable, it is necessary to improve the breed. Swine of good breed have been introduced into certain localities, as in Lipa, in Batangas, where to-day can be found specimens which compare favorably with the American hog. 328 ECONOMIC CONDITIONS A small number of goats wander about nearly every barrio in the Philippines. No particular care is given to them ; they are seldom used except to furnish flesh for feasts, or, in a limited way, to transport small loads. The goat could be made of considerable importance in the Philippines if the value of its milk were understood. Goats' milk is superior to that of the cow or of the carabao, and is produced much more econom- ically. In many countries, both temperate and tropical, it is consumed in large quantities. Some of the best breeds of milch goats, such as the Maltese, have already been introduced into the Philippines ; the increase of these would probably go a long way toward reducing the high rate of infant mortality in the Islands. There are no chicken farms in the Philippines, but each family usually has a few chickens for its own use. Poultry, next to pork, is the chief meat eaten, but in the Islands as a whole there is an undersupply of poultry and eggs; this is due not only to the small number of chickens and ducks raised, but also to their poor laying qualities. Such a condi- tion is largely the result of cockfighting. The high valuation placed on the game bird, rather than on either hens or eggs, has resulted in a small type of chicken for food, which lays only a few small eggs and has tough, and poorly flavored meat. The eggs annually imported from China amount to more than 4,000,000 dozen yearly, valued at from P600,000 to P700,000, but these do not entirely supply the demand of the larger cities. In many of the smaller communities eggs are seldom available. Increase in the amount of domestic poultry and of eggs may be brought about either by increasing the number of domestic chickens used for food, or by raising poultry on farms, as is done in the United States and in certain countries of Europe. In any case, however, good results will be secured only by improving the breed of poultry. At the present time farmers often add to their income by the manufacture and sale of articles made in their homes. The sale of chickens, ducks, 3,nd eggs can also be made to yield additional income. THE ANIMAL INDUSTRY 329 Poultry raising as a business has received some attention in and about Manila, but as yet little has been accomplished. In raising poultry here cleanliness must be the great care. Animal Breeding In most civilized countries of the world man's control over flora and fauna is such that he determines their types. Improvement by selection in the vegetable kingdom has already been explained. The effects of selection are often better shown in the animal kingdom. For instance, the horse may be bred either for massiveness and strength or for speed ; some cattle are bred for meat, others for milk.^ Some breeds of chickens are noted for their laying, others for the quality of their flesh, and still others for their ability as fighters. In animals selection is little practiced by the Filipinos, and for this reason the animals raised on the Islands for any great length of time have deteriorated. By careful selection and the introduction of new breeds from foreign countries great improvement can be made in all domestic animals. Forage Another problem connected with the animals in the Philip- pines is that of forage.^ In the temperate zone the grass is killed by frost or snow ; hence it is necessary to provide forage for the winter months. In the tropics the growth of wild grasses and other forage plants is continuous through- out the year, except in regions subject to a dry season, in which regions some system of irrigation is usually found. The chief forage crop now cultivated in the Philippines is barit (^Leersia hezandra), which is fed green. A large amount of food is also obtained from the by-products of the crops grown for man, the most important of which are rice straw,. 1 Gregory, Keller, and Bishop's "Physical and Commercial Geography." 2 This discussion of forage is based upon data from the Agricultural Review, Vol. IV, No. 8. 330 ECONOMIC CONDITIONS corn leaves, sugar-cane leaves, and peanut vines. Cattle and carabaos thrive on the native pastures and the grasses grown for forage, but the Filipino horses are insufficiently fed on their ration of green grass with an occasional small portion of unhulled rice. At present a sufficient amount of home- grown food cannot be obtained for the several thousand horses imported from America and Australia. Since about three million pesos' worth of food is normally imported every year, it is important to find forage crops that can be grown and cured locally as substitutes for this, so far as food value and cheapness are concerned. Experiments on local and imported grasses have been made to determine (1) which will yield palatable hay ; (2) what the possibilities are of curing hay, so that it will keep in storage ; and (3) what the profitableness of the crop is, as compared with other field crops. None of the local grasses give promise as hay crops. On account of the humidity of the atmosphere, even during the dry season, only the slender-stemmed imported grasses can be easily and satisfactorily cured. The best of these have been found to be Rhodes grass QChloris gayand) and Tunis and Sudan grasses (^Andropogon halepensis). The production of corn-blade fodder seems practicable. Curing hay from all these plants during the dry season presents no great difficulty. From the point of view of market facilities the best localities for commercial hay growing at present are in Luzon. Rinderpest The greatest problem connected with agriculture in the Philippines is that of overcoming rinderpest, or of holding it in check. 1 The history of rinderpest extends over a long period of years. This disease has existed on the continent 1 This discussion on rinderpest is largely based on an article in the Agricul- tural Review, July, 1911, written by Dr. A. R. Ward, Chief Veterinarian of the Philippine Bureau of Agriculture. It sets forth the present policy of that bureau with respect to rinderpest. Photo by Bureau of Agriculture Curing an Introduced Grass for Hay Gathering Zacate, or Green Feed FORAGE 332 ECONOMIC CONDITIONS of Asia since the earliest authentic records, whither it was carried by great migrations and by war and commerce. There are definite accounts of its appearance in Europe from time to time during the past fourteen hundred years. In the eighteenth century 200,000,000 head of cattle were destroyed by it in Europe. In its last invasion of England, in 1865-1866, some 279,000 head of cattle were attacked in eighteen months. Long experience has demonstrated that rinderpest can be exterminated by the slaughter of the diseased and suspected animals, together with thorough disinfection, or by prevent- ing the intermingling of the infected animals with the well. By these methods the disease has been overcome in Europe. In the past sixteen years an earnest effort has been made to control the disease with antitoxic serum, but a critical study of the results of its use has led to the abandonment of this method. In the discussion of the importation of rice it was noted that rinderpest was introduced into the Philippines about the year 1888. It rapidly spread to many of the provinces, and thousands of cattle and carabaos died. On the ranges of the Cagayan Valley ninety-five per cent of the cattle perished; everywhere in the Islands the losses were tremendous. In 1892 practically all the cattle on Masbate Island succumbed. By the year 1894 the disease had largely spent itself, but only a small percentage of the animals were left. These were apparently sufficient for the needs of the Islands, how- ever, since few cattle were imported. With the World War came the destruction of live stock and a reoccurrence of rinderpest. This outbreak was probably due to infected cattle brought in during some of the numerous shipments from China, where the pest existed. Again there were large losses, from which the Islands have never recovered. This attack spent itself, but sporadic outbreaks have occurred almost every year. Many of these outbreaks are undoubtedly caused by infection from imported animals, and others by local infectioUt THE ANIMAL INDUSTRY 333 The effect of rinderpest on economic conditions in the Philippines has been great. In agriculture it has caused the abandonment, permanently or temporarily, of thousands of hectares of land, and a consequent increase in rice imports ; with carabaos selling at exorbitant prices hundreds of people in certain regions were driven from farming in the lowlands, and resorted to the kaingin or some otlier means of earning a living. It has also encouraged the growing of such export crops as abaca and copra, which do not require much labor and cultivation. It has increased the difficulty of carrying agricultural products to market. The additional cost of log- ging operations has checked the building of good houses because of the lack of cheap lumber. Finally, it has so reduced the domestic supply of beef that the diet of the Filipinos now contains little meat. The problem of increasing the number of animals in the Philippines sufficiently to meet insular needs is difficult, and has given rise to disagreements on the part of experts and other interested persons. Obviously the quickest and easiest method is to import animals from other countries, such as China, Indo-China, India, and Australia, all of which have a surplus. However, from the standpoint of the agri- cultural and industrial welfare of the Philippines, it is necessary that the imported animals be free from disease. Cattle from the countries just mentioned are subject to attacks of either rinderpest or pleuropneumonia, and their admission, even after careful quarantine, has been found dangerous, several outbreaks of rinderpest having been directly traced to them. Outbreaks of rinderpest have at times been caused by the introduction of animals which were killed for meat almost immediately. The safest procedure would be to place an embargo on the importation of carabaos and cattle, and at the same time to undertake a systematic quarantine of the Islands and by the immunization of work animals stamp out the disease. The high prices which work bullocks bring in the Philippines 334 ECONOMIC CONDITIONS warrant the expense of immunizing them for export from Asia. It has now been fairly well proved that the bul- locks of southwestern Asia can be successfully immunized against rinderpest. Immunized animals from that region may therefore be safely imported for purposes of agriculture and transportation. The foreign population has always preferred cold-storage meat imported from Australia ; such meat could be brought into the Islands for consumption by the Filipinos. This plan is not practicable, however. In the first place, the Filipinos boil their meat, and cold-storage meat is not so good as fresh beef when cooked in this way. The Filipinos pre- fer fresh meat. Moreover, the natural increase in animals is not sufficient, even when supplemented by importations of immun- ized animals from Asia ; agriculture is progressing too rapidly. The plan of embargo was begun, but has now been abandoned. Carabaos and cattle are now imported into the Philippines under strict quarantine. Occasionally an out- break has occurred of rinderpest and other epidemic diseases, but these have so far been held in control. Certain chances must be taken to meet in some degree the pressing needs of the Islands for work animals and animals for slaughter. In the past few years an average number of about 1500 cara- baos and 10,000 cattle have been imported annually, chiefly from the French East Indies. The cattle are valued at about P 50 0,000. They are mostly slaughtered. In addition, the normal import of fresh beef into the Islands is valued at more than P 1,000,000. It comes from Australia when shipping is available. Coincident with this importation of animals there is being carried on a campaign to control rinderpest in the Islands. The methods employed by the Bureau of Agriculture consist in confining the sick and in keeping the susceptible animals isolated from one another. In other words, it is hoped to control the disease by quarantine. Pursuantly to this policy districts in which epidemics occur are specially quarantined. This would be a much easier task were the agricultural and THE ANIMAL INDUSTRY 335 grazing lands of the Islands divided into parcels by fences, as in most countries of Europe and America. In the Philippines the lands are unfenced, and consequently animals graze together. In many of the Islands, especially in Luzon, there is also an extensive movement of cattle from province to province, which increases the liability of spreading the disease. However, by local quarantine it is hoped to hold outbreaks in check. Under the most favorable conditions the extinction of rinderpest will involve many years of work, with occasional periods of seeming failure ; there will be annoyance and loss to agriculturists, who during the quarantine cannot use their animals at all, or only to a limited extent. If, by keeping out foreign cattle not immunized, and by imposing local quarantine to protect native carabaos and cattle, rinderpest is finally controlled in the Philippines ; and if a sufficient number of cattle for agriculture, transportation, and food are raised, one of the greatest economic problems of the Islands will have been solved. Stock raising may become a most important industry in numerous grazing regions. Mean- while it is not probable that much capital will be invested in large stock-raising enterprises. The breeding of domestic cattle will probably be limited for some time to isolated regions and to small islands. Can a general campaign of immunizing carabaos and cattle be carried to a successful conclusion, just as vaccination has held smallpox in control ? Probably not at this time. Such a campaign would require the cooperation of the entire com- munity and of every region of the Philippines; this cannot be expected until the people are educated to a general under- standing of its importance. Moreover, it will require a large government appropriation and effort. With its present appro- priation and force the Bureau of Agriculture is able to im- munize annually no more than 10,000 or 12,000 animals, which are fewer than the normal annual increase in the Islands usually is. That there has been a considerable increase in the number of domestic animals is indicated by the table on page 336. 836 ECONOMIC CONDITIONS ercent- ageof lopula- tion CO 00 lO OS CO :o CO ■^ © to & d q T— 1 q t-H q »H » CN O^ ^ o 00 (M CO o CO "^ o -* O CD X t- lO l>- tM CO "* 00 1 co^ o^ o^ b- 00 I— 1 CO^ oT ,_r co" 00 co" >o i-T -rtT O (N 3 J?; t^ 00 o 00 rH 00 (N CO iH OS CO^ t-^ 00^ q_ - 00 q CO g4 CO c4 CN CO is 1— 1 "* CO I— 1 OS CO lO o O (N 1 t- o OS 00 (N OS CO 1— 1 o^ -^ (M O § TtT 5." iH ocT i-T t-^ s ^ ^ o '^ '^ (M Ol t- CO ^ CO !>• 00 OS 1—1 1-^ Ol^ (M^ CN^ CO^ rn" r-T CO 00 t- to 00 ■* ,_! o o o •< J ff^ 00 CO o 00 (jq 1— o o CO CO co^ 1—1 00 (M lO t- o s o t^ CO CO i-T as" OS co" OS oo" d~ a, S 00 CO «<« t^ CO ^ CO CO o H Oi h- 00 o CO to CO 00 o &H Co" 00- oo" os" oT os" os" Os" os" d" IH Si CO o ,_, (M CO ■^ to CO I- 00 o T-H u Oi OS OS OS OS OS s OS OS > r-l 1— t r-t IH ""^ '"' '"' '"' rH 1— ( THE ANIMAL INDUSTRY 337 SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text 1. What has been the percentage of increase in the domestic animals in the Philippines since 1903 ? 2. Account for these increases. 3. Why can the government not shut out all cattle from the Philippines (thus preventing the importation of rinderpest and other epidemic diseases of cattle), and rely on the natural increase of work animals to care for the needs of the country ? 4. What is the policy of the government ? 5. The chief difficulties in the control of rinderpest in the Philippines are unfenced fields and the lack of cooperation of the people, who insist on evading quarantine and using their animals. Explain why these difficulties occur, and how they may be mini- mized or overcome. 6. Would fencing the agricultural lands pay? 7. You have been designated by the directors of a corporation to select a locality for starting a cattle ranch. Bring in your report. 8. Explain how the increased use of gasoline tractors and motor trucks will indirectly help the natural increase of work animals to meet the needs of agriculture. 9. How would the control of rinderpest in the Philippines increase the standard of living here ? Suggestions for the Study of Local Conditions 1. Chickens, ducks, and eggs. Could the production be in- creased ? Is the demand met ? 2. Consumption of meat (beef and pork). Is enough available ? 3. Rinderpest and its control. Is the supply of draft animals adequate ? Suggestions for Reports from References, especially FROM Commercial Geographies 1. Compare the number of domestic animals in percentages of the population in the Philippines with those of the United States and other countries. 2. The world's draft animals. (All commercial geographies.) 338 ECONOMIC CONDITIONS 3. The gasoline engine and draft animals. 4. Make and explain charts showing the uses of beef cattle; of pigs. 5. The world's cattle industry (Brigham, pages 40-49 ; Bishop and Keller; Finch and Baker). Sources for the supply of work animals and meat for the Philippines. 6. The cold-storage industry. (In and about Manila a report on the methods used in local cold storage may be written.) 7. The pork-packing industry of the United States. 8. The world's swine industry. 9. The world's sheep industry. (All com- mercial geographies.) 10. Goats. (Finch and Baker.) 11. By-products of the animal industries (leather, furs, fertil- izers). (Bishop and Keller, and other commercial geographies.) 12. Tanning materials : those used in the Philippines ; produc- tion and uses of leather in the Philippines. (Miller.) 13. The value of the goat in Italy. 14. The poultry industry in the United States. (All commercial geographies ; Finch and Baker.) 15. Why the Philippines do not produce enough eggs for local consumption. 16. Can poultry be raised commercially in the Philippines ? 17. Hay and forage. (Miller ; Finch and Baker.) 18. With data from the census of 1918 prepare maps showing the distribution of the following animals in the Philippines : carabaos, cattle, horses, swine, chickens. CHAPTER XV FISHING Inshore Fisheries The countless lights seen at night along the coasts of well- populated islands, such as Cebu and most islands of the Archipelago, are indicative of the extent of inshore fisheries in the Philippines. Most of the fish caught in the Philippines come from these inshore fisheries ; although no large enter- prises are involved, their aggregate is very large. Nearly all the Islands have shallow waters along the coasts, and the fishing banks are prolific and widely scattered. Those of which the commercial value is best known are at Sitanki, Masbate, Cebu, Corregidor Island, Cuyo Islands, Zamboanga, and San Miguel Bay. Although other methods of fishing are employed, the use of the dragnet is distinctly the most efficient and popular. The boats ordinarily used for this kind of fishing are fairly large, carrying from thirty to forty men. Work is usually done at night, when lights can be used to attract the fish. For catch- ing small fish along the beaches and in shallow waters purse nets and hand traps are used by men, women, and children. Shrimps, clams, oysters, crabs, and other shellfish are also gathered. Fish corrals, or traps, made of bamboo have been used in the Islands from historic times. The natives were using them when the Spaniards came to the Islands ; a large part of the fish consumed here are still caught by this method. Commercially speaking, this is the most profitable of all methods employed. As a rule, the Filipinos who live along the coast divide their time between the farm and the sea. Few of them make 339 340 ECONOMIC CONDITIONS a business of fishing. Outside of the large towns it is usual for each family to secure its own supply of fish, or to purchase it from those who have been more diligent or fortunate. On unusually successful days the catch of fish may exceed local demands, and the surplus is carried to other towns. Near the large towns, especially where prolific banks exist, there are barrios that live almost entirely by fishing. For instance, at least four fifths of the people in the Malabon district of Rizal BOATS USED FOR INSHORE FISHING Province derive their living directly or indirectly from the sea. Even about Manila Bay, and on the rivers and estuaries emptying into it, may be found towns largely dependent on fishing. Their product is sold in Manila and other large places. In general, however, a fishing barrio is the poorest part of a town. The people barely make a living, and in many cases have to supplement their earnings by means of a few coconut trees or other small plantings of grain or tubers about their houses. In certain localities in the Philippines, such as the mouths of the Cagayan River in northern Luzon, and the Agusan FisHma 341 River in Mindanao, schools of fish appear at certain seasons of the year, and the catch is often large. During these runs the inhabitants of the neighboring provinces come in their boats. It is estimated that twenty-five hundred persons from Ilocos Norte alone come each year to the fishing grounds near Aparri. They dry the fish, or make them into bagoong for shipment inland. The fishermen are not necessarily the owners of the boats, nets, and traps with which they carry on the inshore fishing. The work is often done on shares, the size of the shares vary- ing with the method of fishing. In Batangas from eight to twelve men operate a boat under the direction of a headman, who sells the fish and divides the money. The owner of the boat and nets receives one half; the other half is divided among the men, the headman receiving twice the share of any other. When the boats and nets are owned by different persons, the owner of the nets receives one fourteenth, and the owner of the boats six fourteenths. In some other places the workers are paid in fish at the rate of about half a peso a day. In general, however, it may be stated that where boats and nets are used, the catch is divided equally between the owner of the equipment and the fishermen. Under this arrangement the fishermen repair the nets or make new sections during the off season. Five men are usually required to run a trap and keep it in repair ; it is not often that an owner personally takes care of it. The catch is divided into two parts, half for the owner and half for the laborers. A division more advantageous to the owner is that in which he receives all the fish until he is reim- bursed for the expenses of making the trap, after which he receives one half of the catch, and divides the other half among the laborers. In a few instances the men are hired outright to tend the trap. It is not often that the fishermen themselves vend their catch. Usually fish merchants (men or women) purchase the fish, to sell it again in the market or peddle it about the town. 342 ECONOMIC COifDITIONS Fresh-Water Fisheries In several of the larger fresh-water lakes of the Philippines a considerable amount of fish is caught. For instance, it is estimated that the fish taken during one year along the north- eastern shores of Laguna de Bay is worth about ?40,000. The methods by which these fish are caught and the division of the product are similar to those of inshore fishing. The rivers contain several varieties of fish. The mud fish is found in abundance, the number caught in the rice fields sometimes being so large that at plowing time the fishing privileges are sold. Besides the mud fish, frogs are obtained, as well as fresh-water clams and other shellfish. Much river fishing is done during the rainy season or when people are not engaged in planting rice. Boats, nets, and traps are used in the rivers ; in the shallow fields hand traps are much employed. Some fishing is also done with hook and line. These fresh-water fish, together with fresh or preserved fish imported from the coast, constitute a large part of the proteid food consumed in the inland regions of the Philippines. Fish Culture In the provinces about Manila, and to a certain extent near Iloilo, milk fish are grown in ponds. These fish form an important part of the commercial supply for the two cities and for the country roundabout. The ponds are expensive ; for it requires a considerable amount of capital to build them and to carry on the industry. Preserved Fish A large part of the fish eaten in the Philippines are consumed fresh, chiefly because the majority of the people obtain their own supply. However, if there is a surplus, it is often dried, and thus preserved for a few days. Fish caught in commer- cial quantities are made into bagoong, or sometimes smoked. INLAND FISHERIES CATCHING MUDFISH WITH HAND TRAPS IN THE RICE FIELDS DRYING FISH 344 ECONOMIC CONDITIONS The food value of bagoong has ah'eady been discussed in its relation to the standard of living. Preserved fish are of course more generally consumed in the interior than along the coasts. Increasing the Supply. Deep-Sea Fishing The market for fish in the Philippines is greatly under- supplied. There are few towns in the Islands which at the present time could not consume more fish than are available. In many places the poor buy canned salmon, because it is cheaper than local fish. This condition arises from the inade- quate methods of catching fish and the limitations of- inshore fishing; the largest and most prolific banks are almost un- touched. The fish imported into the Philippines are valued at more than Pi, 000,000 annually ; they consist, for the most part, of cheap canned salmon and sardines. In other countries in which fishing is an important indus- try the fishing grounds are often a long distance from home. Large sailing or steam vessels carry the fishermen and their smaller boats to the banks, where they remain several days. Often small steamers or launches are used to manage the nets. By these methods great quantities of fish are caught in the deep-sea banks. The lack of fish in the Philippine market has led to interest in these larger fishing enterprises, and the government, as well as private companies, has investigated the matter with a view to improving existing conditions. The reports, however, are unfavorable to the use of extensive methods. The capital which must be invested in such an enterprise and the expenses connected with it are very great. Consequently, to make it profitable the catches must be large ; but fish in the Philippines do not seem to be abundant except in the vicinity of coral reefs, and these ruin expensive appa- ratus. Efforts to use large apparatus were given up until recently, when the Japanese became interested. In Japan a large number of steam trawlers are used in the fisheries. Pos- sibly some such system can be made effective on the coral fishing banks of the Philippines. FISHIKO 345 Minor Sea Products Although food is the chief object of the fishing in Phihp- pine waters, certain minor fishing industries are of enough importance, either actual or potential, to be noted. Chief among these is the mother-of-pearl fishing carried on in the southern part of the Islands. This industry exports a prod- uct valued at from P300,000 to P700,000 annually. A small amount of tortoise shell also is exported. The export of pre- pared beche de mer (trepang) also amounts to several thou- sand pesos. Among the most important fishing industries which will admit of commercial development in the Philip- pines is that of sponge fishing. Several excellent commercial varieties of sponges are found here, and a small export has already developed. SUGGESTIONS FOR REVIEW AND ORIGINAL WORK I. Importance of fish in the diet of the Filipinos. 2. Com- mercial forms of fish in the Philippines. 3. How the Philip- pine supply of fish might be increased. 4. Methods of catching fish. 5. Fishponds. 6. A report on fish found in the local market. 7. Is the demand for fish supplied ? 8. The world's fishing banks. 9. The chief kinds of commercial fish. 10. The preparation of fish for commerce. (All commercial geographies.) II. Varieties of Philippine commercial fish and their uses. (Miller.) 12. The mother-of-pearl, beche de mer, and sponge fisheries of the Philippines. (Miller.) 13. The following figures are taken from the census of 1918 : In eight provinces of the Philippines there are 1149 Filipinos and 21 foreigners engaged in the fishing industry, making incomes of not less than PlOOO each a year. Their combined capital, in- cluding real estate and improvements on fish farms (so designated iii the courts) is P 2,493,010; their gross returns in 1918 were P 2,946,940, the gross profit being P 453,930. 346 ECONOMIC CONDITIONS The provinces covered by these figures are Batangas, Cavite, Laguna, La Union, Leyte, Pampanga, Rizal, and Sorsogon, The report by provinces follows : Batangas : Filipino fishermen, 100 ; foreigners engaged in the industry, none; capital invested in the industry, P 163,829; returns in 1918, P296,529 ; gross profit in 1918, P 122,700. Cavite: Filipino fishermen, 130; foreigners engaged in the industry, none; capital invested in the industry, P 300,530; returns in 1918, p523,386; gross profit in 1918, p223,306. Laguna: Filipino fishermen, 177; foreigners engaged in the industry, none ; capital invested in the industry, P 48,026 ; gross returns in 1918, p308,463; gross profit in 1918, P260,447. La Union : Filipino fishermen, 85 ; foreigners engaged in the industry, 1; capital invested in the industry, P 52,237; gross returns in 1918, P 122,876; gross profit in 1918, P 70,639. Leyte : Filipino fishermen, 219 ; foreigners engaged in the industry, 7; capital invested in the industry, P 213,651 ; gross returns in 1918, P463,626; gross profits in 1918, p249,975. Pampanga : Filipino fishermen, 101 ; foreigners engaged in the industry, none ; capital invested in the industry, P 772,917 ; gross returns in 1918, P 322,534. (Much of the capital is in the form of real estate and improvements on fish farms.) Rizal : Filipino fishermen, 168 ; foreigners engaged in the in- dustry, none; capital invested in the industry, P 874,956; gross returns in 1918, P 449,294. (Much of the capital is in the form of real estate and improvements on fish farms.) Sorsogon : Filipino fishermen, 169 ; foreigners engaged in the industry, 1; capital invested in the industry, P 66,864; gross returns in 1918, P 260,236 ; gross profits in 1918, Pl93,372. In all these provinces the capital invested includes the value of real estate and the improvements on fish farms. This being a fixed value carried over from year to year, the returns on the investment for 1918 alone are considerably more than the P 453,930 reported. By means of reports, charts, and tables, compare the fishing industries of these various provinces. When the census of 1918 is available in printed form, compare the fishing data of all the provinces in a similar way. CHAPTER XVI FORESTEY Amount and Kind of Timber As has already been stated in the discussion of the soil, it is probable that the entire land area of the Philippines was originally covered with unbroken forests. The second-growth forest, the grass, and the cultivated lands are due to the clear- ing away of trees. The present forest area is approximately 150,000 square kilometers, or about half the total area of the Islands. Of these 100,000 square kilometers, or about one third of the total land, consists of virgin forest. The second- growth forests may ultimately become of commercial value, but at the present time they warrant small consideration. In spite of the richness of the Philippines in fine woods for furniture the real wealth of the commercial forests consists in the dipterocarps, timber for structural purposes, such as the lauan, apitong, and yacals. There are two reasons for this: first, much of the 2,000,000,000 board feet of standing timber in the Philippines is made up of the dipterocarp family ; secondly, these trees occur in forests sufficiently heavy to be exploited by the use of machinery, while the trees yielding fine wood for furniture, such as narra, acle, and tindalo, are scattered here and there among trees of little or no utility. The lumber output of the Philippines therefore consists prin- cipally of lauan and such structural material rather than of the finer woods for furniture. 1 Unless otherwise noted, most of the data for this chapter is taken from "The Forests of the Philippines," Bulletin No. 10, Bureau of Forestry, Manila. 347 348 ECONOMIC CONDITIONS Government Regulation In the civilized countries of the world the governments now regulate the utilization of the forests, and protect them from fire and other destructive forces. The necessity for this reg- ulation and care arises from several causes: 1. Lumbermen, if left to themselves, will give little consid- eration to the reforestation of the land on which they work. They annihilate whole areas, instead of cutting and utilizing only the mature trees, and planting new trees to take the place of those removed. If unregulated cutting is allowed, future generations will be left without a supply of lumber. Government regulation prevents deforestation. 2. Deforestation also causes floods and the destruction of waterways and fertile land. The dense growth of trees on mountain slopes tends to regulate the speed with which water reaches the ground and flows into rivers. In forested areas running water seeps gradually to the drainage streams and finds its way in even flow to the sea. As a result, destructive rushes of water do not occur in the lowlands, and the rivers are deep enough throughout the year to afford navigation. Where the hills and mountains are denuded of their forest, the rain is not regulated in its fall by the leaves, nor in its flow by the cover of leaves, twigs, and other forest litter ; it rushes over the surface of the ground into the streams. Dur- ing a storm the rivers flow in destructive floods; when the rain is over, they fall rapidly and become too shallow for navi- gation. Forests hasten the making of soil and help to pre- serve it ; floods from bare hills cover the valleys with gravel and sand. Deforestation in the Philippines may result from either the kaingin system or unregulated lumbering. The kaingin system of agriculture has been considered under the discussions of the Subanuns and the soil. It has already caused a loss of millions of pesos to the timber. The making of kaingin is permitted, under certain conditions, on FORESTRY 349 such parts of the public land as are more valuable for agri- culture than for forestry. The enforcement of the law con- cerning the making of kaingin is difficult, however, and timber worth millions of pesos is still destroyed annually. In the theory of government regulation the government is considered the owner of the forests and the products of the forests. It disposes of these by giving them away or by selling them. For domestic purposes all second-growth and lower-group timbers and all minor products can be obtained free of charge and without license. If a portion of the public forests, known as a communal forest, is set aside, the inhabitants of a town are permitted to obtain the free products only therein. Under other circumstances licenses must be obtained. In certain cases licenses are issued free of charge : (1) to inhabitants of the Philippines for first-group timbers to be used for the con- struction of homes of strong material; (2) to miners for all forest products growing on their claims and used in the devel- opment of their mines ; and (3) for minor products and second-group and other lower-group timbers to be used in the construction of public works. Licenses which must be paid for are four in number : 1. Miners must pay for timber and other forest products gathered outside of their claims and used in the development of their mines, but the amount which they must pay is only one half of the regular sum. 2. Ordinary licenses, which provide for the collecting of products from certain definite areas, are granted for a term of one, two, or three years, and are renewable at their expiration. Full charges are made for these licenses, and more than one license may be given to exploit the same area. 3. Exclusive licenses grant to a single person, to a firm, or to a corporation the exclusive right to gather forest products from a particular area. 4; Exclusive license agreements are granted for a period of not more than twenty years for large areas which can 350 ECONOMIC CONDITIONS have their timber cut without permanent injury to the forests. When such an agreement includes more than a thousand hec- tares, the concession is put up for bid. The granting of such an agreement is contingent on a guarantee that an efficient plant will be installed, and that a certain amount of develop- ment will be done yearly. In this way it is impossible for companies or individuals to obtain forest areas for the purpose of holding them as investments instead of exploiting them. The forest operations carried on under license are regulated by the Bureau of Forestry. On land which is more valuable for agriculture than for forest growth clear cutting is allowed. Where the land is more valuable for forest than for other purposes, the smaller trees and a sufficient number of seed trees must be left ; in certain cases it is not permitted to cut definite species of trees. The forestry employees also see that all the merchantable timber is utilized, that the stumps are not unnecessarily high, and that timber is not abandoned in the forest. For the purpose of establishing a system of forest charges, the timbers of the Philippines are divided into four groups, and a decreasing rate by the cubic meter is charged according to the value of the timber. The government also regulates the gathering of minor forest products, and charges ten per cent of the assessed market value of each product. Logging Operations In general, the logging operations carried on in the Philip- pines are of two kinds, steam logging and logging on a small scale. In 1917 there were 1906 commercial licenses in force, of which 10 were license agreements, 117 licenses for 1000 cubic meters or more, and the remainder for less than 1000 cubic meters. Almost a thousand licenses were for less than a hundred cubic meters each. Thus it is seen that the majority of the licenses are granted to small operators, who use animal or human power to get the timber to tidewater. FORESTRY 361 The method of extracting timber by carabaos is crude and wasteful ; in connection with the methods of obtaining labor and of financing the enterprise it is the main cause of the high price of lumber in the Philippine market. As a rule, the licen- see is not the actual workman. He seldom or never visits the forest, but furnishes a follower or friend with carabaos and other equipment, and receives a certain percentage of the value of the logs hauled to the beach. This follower or friend selects the woodmen, and pays a stipulated amount for the timber delivered on the beach. The pernicious system of advancing money and provisions, which applies to all Philippine industries, is also found in logging operations, and the laborers are usually kept in debt to the men for whom they work. With the growth of the lum- ber industry such methods are fortunately going out of use. In many instances the licensee is the lumberman, who pays his workmen a direct wage and treats them fairly. So long as the former system exists, however, and the actual cutting of timber in the woods is left to ignorant workmen without supervision, the cost of timber for structural purposes will be abnormally high. What is needed more than anything else in small for- estry operations in the Philippines is competent supervision of logging. With such supervision the cost of cutting timber and removing it to tidewater could be reduced by at least a half. Certain portions of the Philippine forests are adapted to small logging operations by animal power rather than to exten- sive operations by steam power. The former will persist, and will be found profitable in isolated patches of the dipterocarp types, and in patches of the molave type, where valuable trees are too far apart to warrant the establishment of extensive machinery. Several exclusive license agreements have been given to large companies using steam-logging methods and railroads to transport the logs from the forest to the mills at tidewater. These companies exploit large areas containing close forests of merchantable timber, composed principally of lauan and 352 ECONOMIC CONDITIONS other trees of the dipterocarp family. There are numerous forests m which such large operations can be carried on ; in the near future it is probable that many more companies will invest m this industry. Such logging and milling operations require a large amount of capital, of course, and are therefore carried on by corporations. The larger of these companies employ as many as twelve hundred laborers, most of whom must be brought in. It is therefore necessary for a company of this kind to build a barrio capable of holding at least ten thousand persons. The labor problem in forest operations does not seem to be difficult ; for the supply is equal to the demand. These large lumber companies are of great economic value to the Philippines, since they supply the home market with lumber which otherwise would have to be imported from America. Without the exploitation of the large forests the mature timber goes to waste, because the small licensees are unable to get it out. By close government supervision the mature trees are utilized, and the forests are improved, so that they become a constant supply of commercial timber. Milling Operations In milling operations two methods are to be noted, hand sawing and steam milling. At the present time hand-sawed lumber can compete successfully with the product of steam mills. The hand sawer is often able to get nine or ten board feet from each cubic foot of lumber; the steam mills cut five, six, or seven board feet from the same amount of raw product. Moreover, all the waste from hand sawing is carefully utilized either for firewood or for other purposes. The steam-sawed material, on the other hand, is all of standard size, and large contractors prefer to use it rather than the irregular-sized lum- ber from whipsawing. If it were not for this irregularity in size and the scarcity of whipsawers, the hand-sawed material would become a more formidable competitor with the lumber from the steam sawmill. Animal Power Steam Power LOGGING OPERATIONS 354 ECONOMIC CONDITIONS Problems of the Lumber Industry The problems connected with the production of lumber in the Philippines are as follows: 1. To overcome the high cost of logging in operations carried on by small licensees. The high cost can be reduced by having paid laborers, better supervision, and reform in the present crude methods and equipment employed. 2. To reduce the high cost of milling by better equipment and better arrangement of the mills now used, by bringing in or training competent men to manage the operations, and by reducing the excessive waste in the steam mills. 3. To lower the high cost of transportation (which is due to the exorbitant charges made by shipping firms) by increas- ing the number of boats in the Philippines, and consequently by increasing competition in the carrying trade. These problems are distinctively of a pioneer nature, and will be solved in time. Markets for Philippine Lumber There are three markets for Philippine lumber. During the year 1917 the commercial timber produced in the Philip- pines amounted to approximately 370,000 cubic meters, or 160,000,000 board feet. This was enough to satisfy the needs of the Islands except a little timber and lumber for special purposes, which was imported. Thus it will be seen that the local market in the Philippines is now supplied from domestic timber. This condition did not exist several years ago ; for as late as 1910 the Islands were importing almost a third of their commercial lumber. Meanwhile the domestic demand for lumber has greatly increased. The establishment of sugar centrals, coconut-oil mills, and other industrial enterprises, along with the prosperity which they have brought, has in- creased the demand for lumber,* year after year. The increase in the annual production of timber extending over a period of years is noted in the following table : FORESTRY 355 Utilization of Forest Products from Private and Public Forests [Source : Bureau of Forestry] Fiscal Year Timber First Group 2 Lower Groups 3 Total 1908 Cu. m. 25,586 35,357 31,962 39,312 52,091 59,422 23,751 55,798 52,512 55,060 51,431 Cu. m. 78,692 108,404 121,656 145,316 172,856 217,749 77,752 241,297 226,483 288,958 318,700 Cu. m. 104,278 1909 143,761 153,618 184,628 224,947 277,171 101,503 1910. 1911 1912 1913 19131 1914 297,095 1915 278,995 344,018 370,131 1916 1917 The production of 1917 does not represent the limits of the domestic market. The output of 1917 sold for record-breaking war prices ; with lower prices the amount of lumber used in the Islands will greatly increase, for hard construction will take the place of bamboo and nipa to an increasingly greater extent. Nevertheless, the question of foreign market is one which may at some time become of considerable importance. 1 July 1 to December 31, 1913. 2 First group : acle, baticulin, betis, camagon, ebony, ipil, lanete, mancono, molave, narra, tindalo, and yacal. 2 Lower groups : Second group : alupag, aranga, banaba, bansalaguin, banuyo, batitinan, bolongeta, calamansanay, calantas, dungon, guijo, macaasin, malacadios, mangachapuy, palo maria, supa, teak, and tucan-calao. Third group : agoho, amuguis, anubing, apitong, batino, bitanghol, catmon, calumpit, dalinsi, dita, duhgon-late, malacmalac, mala- papaya, malasantol, mayapis, nato, palosapis, panao, sacat, santol, tamayuan, and tanguile. Fourth group: all species which are not included in any of the other groups. 356 ECONOMIC CONDITIONS Should the local demand for lumber become satisfied, Phil- ippine timbers will find an excellent market in China, where their reputation is good, and where the demand for lumber is enormous. At the present time there is a small export of lumber, principally to China and the United States; in 1918 it amounted to about ten thousand cubic meters. The total consumption of commercial lumber in the Philip- pines (375,000 cubic meters), as compared with that of other countries, is small. The possibilities of the lumber industry here are great, however, for large tracts of virgin forest are available. The thing most needed is capital. It is estimated that the forests of the Philippines could, without injury to them, yield 5,000,000 cubic meters of lumber annually, or about thirteen times as much as they now yield. Although there is prospect of the full utilization of this wealth in the immediate future, it is nevertheless probable that if present investments continue, the next fifteen years will witness an output of more than 1,000,000 cubic meters yearly. Minor Forest Products Minor forest products are also of considerable importance. The fuel used in Philippine households, and to some extent in commercial enterprises, is wood. Most of it is obtained from the forests of mangrove, which makes excellent firewood. Char- coal is another important product. A considerable amount of tan and dye bark is now gathered from Philippine mangrove forests. The possibility of extracting cutch from mangrove bark is worthy of careful consideration. The importance of rattan and bamboo used in the construction of houses and for numerous minor purposes places these two forest products among the most important for domestic use. The amount of rattan formerly produced in the Philippines was not enough to supply the local demand, and a considerable amount was annually imported. During the World War, however, lack of imported supplies stimulated local production. The local FORESTRY 857 production of rattan is now large, and may continue. At the present time rattan is chiefly gathered by the wild tribes and the hill people, from whom the lowlanders obtain it by trade. The amount and quality of rattan existing in the Islands warrant the gathering of it for export to Europe and America. The demand for bamboo is supplied almost entirely from uncultivated clumps, although this giant grass is often planted. The planting of bamboo for commercial purposes is warranted by its present high price. The principal minor forest products gathered for export are gutta-percha, resins (particularly almaciga), beeswax, candlenuts, and dye woods (particularly sappan). Nearly all of these are obtained by trade with the wild tribes and the hill people. SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text 1. Regulations of the Philippine government with respect to the preservation of Philippine forests. 2. Explain how the local production of Imnber for domestic consumption has increased the wealth of the Philippines. 3. Explain the relation of the domestic lumber market to our export markets for lumber. Suggestions for the Study oe Local Conditions 1. Local opportunities for reforestation. 2. Local sources of lumber. 3. Some local manufactures of wood. 4. Compare the cost of a hard-construction and a bamboo house of the same size. 5. Do you think that hardwood houses will ever be within the financial means of the majority of the people in your community ? 6. Is there now a tendency to substitute wooden houses for bamboo? 7. Would this tendency be increased if lumber were cheaper ? 8. What effect has this on the risk of fire ? 9. Which construction makes the more healthful home ? 10. What are the comparative ages of a bamboo and a wooden house ? 358 ECONOMIC CONDITIONS Suggestions for Reports from References 1. The results of deforestation in China. 2. A modern lumber mill. 3. Modern logging operations. 4. Lumber and paper. (Bishop and Keller and other commercial geographies.) 5. Forest areas of the Philippines. 6. Control of the Bureau of Forestry over the cutting of Philippine timber. 7. The grading of timber. 8. The gathering of minor forest products. 9. Forest zones, reserves, and commercial forests. 10. The grouping of Philippine commercial woods (illustrated with samples). 11. Building wooden ships in the Philippines. 12. Relation of forests to mining. 13. The lumber industry in the Philippines (illustrated with charts showing the chief provinces in which lumber is produced, and the principal kinds of lumber manufactured). 14. From the annual figures of the production of timber, on page 355, and the annual report of the Director of Forestry, make a chart showing graphically the increase of the commercial timber industry of the Philippines. 15. Philippine minor forest products. 16. How, when, and where they are produced. 17. The importance and use of each. 18. The possibilities of manufacturing cutch in the Philippines. (Miller.) 19. Forests and forest products of the United States. 20. Kinds of lumber obtained. 21. For what purposes the United States uses Philippine woods. (All commercial geographies ; the annual reports of the Director of Forestry and Internal Revenue should also be consulted.) CHAPTER XVII MANUFACTURING Density of Population ; Commerce and Industry i The density of the population of a country is reckoned in terms of the population divided by the total area. The density of the population of the Philippines and of various other agricultural countries is shovv^n in the following table: Australia 1.5 to the square mile Brazil 8 to the square mile Mexico 20 to the square mile Siam 30 to the square mile Cuba 55 to the square mile Philippines 87 to the square mile India 200 to the square mile Straits Settlements 350 to the square mile China proper 500 to the square mile Java 600 to the square mile 1 The question of the density of population is important with respect to the supply of food and the character of production. For example, there are five men, each having two hectares of land, which lie in juxtaposition and are of equal fertility. Suppose that these five pieces of land are joined to make one farm, to be worked by the five men. On account of the division of labor thus made possible the crop from the ten hectares will be greater than if each man had worked by himself ; therefore tlie share of each man will be greater. Suppose that two more men are added. Since a greater division of labor can be carried out by the seven men, the total amount of produce will again be greater, and the share of each laborer will be larger. Suppose that two more men are added. Then, on account of the increase of labor on the land, and the greater subdivision of labor, the gross production will again be increased ; but since the limit of the chemical and physical capabilities of the soil has been passed, the share of each laborer will be less. In the same way, for each laborer added the gross production will be greater, and the proportional production will be less. The more labor put on a given piece of land, the greater will be the gross production from it, and the 359 360 ECONOMIC CONDITIONS In comparison with many countries, especially agricultural countries like China and Java, the Philippines are sparsely populated. In no districts are there such conditions of famine as exist in parts of India and China, where dense populations live on the verge of starvation, and the failure of crops results in thousands of deaths. The Philippines are still below the point of diminishing returns from land. As a whole, they need greater population. In 1800 Java had twice as many inhabitants as the Philippines, but in 1900 it had four times as many. This difference in the rates of increase has probably resulted from the high infant mortality in the Philippines (as explained in Chapter XIII). It is probable, however, that the rate of increase in the Philippines is greater now than it has been in previous times. The PhiHppines are not evenly populated (the different densities are indicated on Chart XXXIV). Several regions with rich soils are heavily populated ; some regions, such as the Ilocos provinces and Cebu, have a large population in pro- portion to the fertility of the soil and the amount of arable land. In 1903 Ilocos Sur Province had a density of 400 in- habitants to the square mile, Cebu 340, and Pangasinan 335. On the other hand, vast amounts of fertile lands are not occupied, and many fertile regions are but sparsely settled. greater the proportional return up to a certain point. After tliat point has been reached, the more labor put on the given piece of land the greater will be the gross production, but the less will be the proportional return. This is known as the law of diminishing returns from land. The same law which applies to a small portion of land holds good for a large portion. Hence in any given agricultural community, after a certain population is reached, the law of diminishing returns causes the supply of food to increase more slowly than the population increases. The law of .Malihus is that population tends to increase faster than food. Any check on population, or any increase in the supply of food, diminishes the degree to which the law operates in a given region. The checks to population are (1) later marriage and fewer children to the family ; (2) war, famine, and pestilence ; and (3) emigration. Increase in the supply of food may result from (1) improved means of agriculture, which increases the production per hectare ; (2) processes which make food products more nourishing ; (3) manufacturing and commerce, the products of which are exchanged for food. MANUFACTURING 361 The three regions in which the pressure of population is most greatly felt are (1) the Ilocano provinces, (2) Taal and Lemery in Batangas Province, and (3) Cebu, Bohol, Siquijor, and parts of Oriental Negros. These and the regions in which emigrants from them settle are indicated on Chart XXXV. Other emigrations are from the Batan Islands to Luzon ; from parts of Pangasinan to Tayabas ; from parts of Bulacan to Tarlac and Nueva Ecija ; from central Camarines and central Albay to northern Camarines, Catanduanes, Sorsogon, and Masbate ; Ilongos from Panay to Xegros ; and from Cuyo to Palawan. In addition, government labor agencies have ob- tained laborers from Manila, Cebu, Iloilo, Bohol, and Antique for Tarlac, Bataan, Mindoro, Mindanao, and Negros. In the past there has been too little emigration from the more crowded districts. In some places this results from the antipathy of the people and a low standard of living. Many laborers have not cared to leave their homes because of fear for their personal safety and the safety of property and relatives left behind, but this is being remedied by peace conditions and better means of communication. Fear of Moros and semicivilized tribes still deters some from going to Mindanao. The clan feeling keeps many people in the place of their birth, even when they realize that they could make a better living elsewhere. Furthermore, there has been opposition '' by many landowners doubtless guided, rather than by solicitude for the public welfare, by purely selfish motives, such as the desire to have a constant supply of cheap labor, available for their own pri- vate work ; cheap labor, thanks to the abundance of laborers in their respective pueblos." ^ Immigrants from the densely populated parts of the Islands are considered more industrious than the people among whom they settle. Many immigrants, particularly the Ilocanos, buy or homestead land, or become squatters ; others become tenants or laborers, and often finally accumulate enough money to buy land and work animals. Many return to the place of their ^ The quotation is from the report of tlie Director of Labor, 1011. CHART XXXIV PHILIPPINE ISLANDS Hf Emigration Areas Immigrration Regions being settled by Peoples from IIIIIIIH Ilocos Provinces 11 Taal, Lemery & Cavite ^^^ Cebu, Bohol & Siquijor (Data from Economic Reporte, Bureau of Education ) r^ CHART XXXV 364 ECONOMIC COI^DITIONS birth after they have succeeded in acquiring a little property. This is especially true of the Ilocanos and Taalenos. In several densely populated regions tlie additional income obtained from commerce and manufacture supports a much larger population than could exist by agriculture alone. These regions are parts of the Ilocano provinces and Bulacan, the Taal-Lemery district of Batangas, Lucban in Tayabas Prov- ince, and parts of Cebu Province and Bohol. In all these regions there are people dependent wholly or in part on man- ufacture. There are other places, not affected by pressure of population, in which the failure of crops led to manufacture. The weaving industry of Lipa, in Batangas Province, dates from the failure of the coffee crop ; the extensive production of mats in Basey is the result of the typhoons which destroyed the rice and coconut crops. In general, manufacture is stimu- lated by a reduction of the harvest. Sometimes, as in the Romblon mat weaving, the output of manufactured articles decreases when returns from agriculture again become normal ; but in many places the impetus of short crops has resulted in established industries. Where large holdings exist the land- less population sometimes becomes dependent on manufacture alone, as in the case of the chinela makers and shoemakers of Mariquina, in Rizal. In most cases the incentive which results in manufacture is the desire for a larger income than can be made from agri- culture, money to be spent for amusements, better clothing, the education of the children, and the purchase of land and work animals. The tenant or peasant proprietor obtains from his small plot enough produce to sustain him and his family. Returns from domestic manufactures often provide the only income. Families pursuing household crafts usually have a higher standard of living than those depending entirely on agriculture. This peculiar relation of agriculture and industry is due to the periods of rest between agricultural activities (especially between harvest and planting, and planting and harvest), when the agriculturists are not busy in the fields. MANUFACTURING 365 It is chiefly the women and children who utilize these in- tervals in manufacturing, at the same time performing their regular duties of the household. The men are idle, or engage in fishing, driving, or daily labor for other persons. Some- times they obtain and prepare the raw material for the women, such as the bamboo splints for hats, the clay for pottery, and so on. The children perform the coarser work, and learn their mother's trade by assisting her. The old and crippled often devote their time to manufacture. Household or Domestic Manufacture 1. The beginnings of manufacture are found m the attempt to provide the home with certain products made from raw materials. In the Philippines, houseivork^ as it is called, takes the form of making the following articles : cotton, banana, pine- apple, jusi, and abaca cloth ; rice and winnowing baskets ; fish baskets ; fishnets ; bamboo and rattan chairs ; rope ; mats ; kitchen utensils ; hats ; pottery ; hammocks ; saddles ; sieves ; boats ; harness ; plows ; harrows ; wooden furniture ; brooms ; and rice mills and mortars. 2. The next stage in manufacture results from the different degrees of efficiency of the Avorkers. Some become more ex- pert than others, and their product is admired and desired. They begin to produce for exchange, especially when their landholdings become small. Wagework ^ is carried on when the consumer of the article furnishes the laborer with mate- rial and a wage. In the Philippines, pottery, textiles, nets, bolos, steel articles, gold and silver jewelry, mats, embroidery, furniture, agricultural implements, and carving are the most important of the articles so made. The workers usually labor at home, but sometimes, as in the case of weavers, they work in the house of their employer. Some wage workers become dependent on manufacturing. 1 The terminology used is Buecher's. 366 ECONOMIC CONDITIONS 3. In the handicraft stage the laborers produce articles from their own material, in anticipation of a demand for them, or to order. In either case the product is sold to the consumer. The articles previously enumerated are made by handicrafts- men. The producers dispose of their wares in various ways. Some sell them in their homes, some have small stores, others vend them in the local market. Some carry their product to neighboring towns on market days, or travel from house to house. Occasionally articles are gathered and kept for disposal at a fair, such as the mats of Tanay, in Rizal, which are sold at the Antipolo festival. 4. As soon as industry grows to national and international proportions, the middleman comes between the producer and the consumer. In household production this is known as the commission system. The producer no longer looks for the con- sumer. The merchant finds and organizes the market, deter- mines its needs, and indicates the nature of the products desired. In the Philippines the principal articles made and sold under the commission system are hats, mats, sinamay, cotton cloths, baskets, pottery, sawali, buri sacks, bolos and other products of iron and steel, rope, embroidery, chinelas, shoes, and knotted abaca. Most of the embroidery and knotted abaca and many of the hats are produced for export; the other products are for the most part consumed in the domestic markets. In a few instances these products are accumulated in the home, and finally given to somebody to sell on commission. Sometimes, as with Calasiao hats a member of the family takes the wares to a retailer or exporter. Often the producers sell for cash to a regular merchant or agent. The advance and debt system is also found in commission household manufac- ture. Often the merchant advances the raw material ; some- times he advances money, food, and other things in anticipation of goods ; sometimes he owns the looms and other implements with which the work is done. The condition of the housework laborers under such an advance and debt system is often as MANUFACTURING 367 bad as that of agricultural workers under the kasama system. They are subservient to the will of the merchant who controls their labor and output. In most towns there are local brokers or agents who gather up the product of the place and dispose of it to general brokers, domestic dealers, or exporters. In some towns two or three of these persons control the industry. When not effected through export houses closely in touch with the trade, such control sometimes causes inertness, as is the case in the sabutan-hat industry of certain towns in Laguna Province. For the export trade the form and quality of the output is very important, and is subject to change of fashions in foreign countries. Export houses control these matters through the brokers and agents ; in certain new industries they place the monopoly of buying in the hands of a few per- sons, to exercise better supervision over the workers. Where there are independent peasant proprietors, and where wage- work and handicrafts coexist with commission work, so that the producer may sell direct to the consumer, control by middlemen is at a minimum. This is also true of towns pro- ducing and exporting articles for which there is sharp com- petition. This is seen among the Ilocano peasant proprietors, and in the buntal-hat trade of Lucban, in Tayabas, and the; knotted-abaca industry of Lipa, in Batangas. Export demand often causes an industry to be carried on under the commission system only. Usually, however, the community of manufacture is built up on all the different systems. The needs of the consumer or of the worker seem to determine which of the systems is used ; the same worker may be under each of the different systems at different times. For example, a mat maker may use the mat he makes (house- work) ; he may make a mat to order for some other person from materials furnished by the latter (wagework) ; he may make a mat from his own materials and sell it to the consumer (handicraft) ; finally, he may make a mat and sell it to a merchant, who again sells it locally or ships it away (commis- sion system). All four systems usually exist together, and 368 ECONOMIC CONDITIONS the one used at any particular time seems to depend on the demand for the articles and the needs of the workers. The wage received in commission work depends on the demand for the article manufactured and the mfluence of brokers. In certain textile industries of Iloilo, where the weavers are largely controlled by brokers and the product competes with imported, machme-made cloths, the wage is estimated at P0.09 or PO.IO. Here the worker, if dependent on weaving alone, is apt to sink deeper and deeper in debt to the broker. Usually the wage is the same as that received in agriculture, from P0.30 to F0.60 a day. The wage is highest in the industries producing chiefly for foreign demand, which is not easily controlled by brokers. The hat weavers of Lucban make from P0.50 to Pi. 20 a day; the workers in knotted abaca often clear more than ?1 when prices are high. The value of household products consumed in the Islands has not been determined. Thousands of yards of cloth are woven and used annually. In several towns almost every house has a loom. Thousands of hats and mats are annually disposed of in the local market. Practically all the pottery used is of domestic manufacture. In 1918 hats valued at more than pi, 800,000 were exported, knotted abaca valued at more than Pi, 000,000, embroidery valued at more than P4, 300,000, and laces, textiles, baskets, and the like in smaller amounts. In comparison with the millions of pesos' worth of household manufactures annually consumed in and exported from the countries of Europe, Japan, and China the output of Philippine households is small. When Europeans first came to the Islands, the natives already practiced hand weaving, loom weaving, and other arts; the newcomers taught them crafts, such as embroidery, wood carving, and metal work. That these industries have not grown to greater proportions is due (1) to the lack of the industrial and commercial idea ; (2) to the localization of industries in one barrio or town ; (3) to the lack of improvement in methods ; and (4) to the lack of a market. Hat Weaving Loom Weaving TWO PHILIPPINE HOUSEHOLD INDUSTRIES 370 ECONOMIC CONDITIONS In the last few years the production of household industries has been increasing. It can be measured in the foreign trade by the export of hats, which was less than 200,000 in 1907 and more than 1,600,000 in 1912; and by the export of embroidery, which was almost nothing in 1912, and amounted to more than P4,000,000 in 1918. Greater production of com- mercial goods in the home is coming about as the result of the industrial and commercial idea now felt in the Philippines. The established industries are spreading beyond the limits of the barrios and towns, to which a certain immobility has here- tofore confined them. New industries are also being founded through individual effort and industrial work in the schools ; for example, the chinela and shoe industries of Gapan, Nueva Ecija, and Mariquina, in Rizal, have grown from the success of one man or family. The Malalos balangot slipper, now sold all over the Islands, was first made at Malalos, in Bulacan, in 1907, by a Japanese. The large basket industry of the town of Bulacan had its beginning in 1908, in the teaching of bas- ketry in the schools. Industrial instruction in the schools has been general only during the past few years ; but the nucleus of several household industries, such as slipper making, bas- ketry, textile, mat, and hat w^eaving, embroidery and lace making, has already been established in many towns. The aims of the Bureau of Education in promoting its industrial program have been most practical. The attempt has been to turn the pupils directly and normally from the public schools into an industrial life which will enable them more adequately to meet their increasing needs. Contrary to the prevailing theory and practice of certain other countries, industrial instruction in the Philippine schools is highly commercialized. Commercial firms are beginning to invest money to finance household industries, the large hat production of Apalit, Pam- panga, and neighboring towns being due to their backing. Moreover, free trade with the United States has opened up a large market. The entire production of baskets can be placed there for years to come. In 1918 the United States imported MAISrUFACTURmG 371 almost the entire embroidery output of the Philippines, and all the laces. Most of the hats exported from the Philippines, valued at more than Pi, 000,000, now go to the United States. There is still opportunity to establish large household industries in the Philippines, and their recent introduction and growth have been rapid. Care must be taken that the workers receive the greatest possible return, and that they are not exploited by the middlemen. If household industries are carried on in connection with agriculture, either by the agriculturists themselves or by certain members of the family, industry is made secondary to agriculture, and the workers are placed in an independent position. The greater the intelligence of the workers, the less advantage can be taken of them; therefore the schooling of the masses will make them free agents in housework as well as in agriculture. Much division of labor, whereby the worker does only a small part of the work on a given article, places him at a disadvantage, for he then sells his labor only. If he makes a finished object, he can sell it to anybody. The government may stand ready to purchase and dispose of articles from workers who are being exploited. Workers may cooperate to dispose of their goods. It is always possible to produce an inferior article, and it is often possible to reduce the cost of production at the expense of the laborer. In the large cities of the United States and Europe both methods are employed to meet competition. The working of laborers in their homes and in shops (sweatshops) for the purpose of getting the greatest amount of labor from them at the least cost is called " sweat- ing." The lowering of quality and the sweating are both ultimately disastrous. The reputation of the articles suffers, and the efficiency of the laborers is reduced. Either laborer or merchant may ruin an industry by the shortsighted policy of immediate interest, exploitation. The value of household industries in the Philippines rests on their correlation with agriculture : the utilization of spare 372 ECONOMIC CONDITIONS time for production, the returns from which can be employed in increasing the standard of hving, educating the children, and purchasing land, implements, and work animals.^ Factory Manufacture Under the commission system capital controls the market- ing of the products of an unorganized army of laborers ; the factory system divorces the workers from agriculture, and organizes them into a compact and well-disciplined body. The em^bryo of the factory is occasionally encountered in the Philippines, in loom weaving, for instance, where the original outlay for machinery is an expense which often cannot be afforded by the laborer. Sometimes as many as ten looms are found in one house ; they are worked by laborers hired by the day. In such a case the owner is able to supervise all the processes of manufacture. Sometimes women are em- ployed to knot abaca in the home. Chinelas are often made in small factories. Dyeing with indigo is sometimes done in factories. The factory system with hand labor is impor- tant in Europe, China, and Japan, but the Filipinos prefer to work independently if they can, and the abundance of land in the Islands usually permits them to do so. Attempts to evolve factories from highly organized household industries, such as the hat industry of Lucban, in Tayabas, have been failures. The only successful factories employing handwork are to be found in the tobacco industry ; for instance, in the cigar factories of Manila, where hundreds of workmen are grouped in one establishment, little machinery is used. In general, therefore, it may be stated that manufacturing and agriculture are still closely connected in the Philippines. Machinery is usually associated with factories, since it must be placed at the source of power. The laborer must be brought to the machinery. He now works at regular 1 In Batangas wages from the knotted-abaca industry have enabled many tenants to purchase land. See pp. 234, 235, 254, 257, 258, 261. Japanese weaving by Hand Power Looms FACTORY WEAVING 374 ECONOMIC CONDITIONS hours, and makes liis home in the narrow confines of a city ; thus his divorce from agriculture is complete. Machinery and the factory system have largely displaced household manufacture because (1) certain articles can be made by machinery and not by hand, (2) machinery produces in large quantities, (3) it is cheaper than hand labor, and (4) greater division of labor and utilization of by-products are possible and result in a further decrease in the cost of production. ^ 1 The members of a Philippine agricultural family are usually jacks-of-all- trades : farmers, carpenters, fishermen, weavers, and the like. Nevertheless, division of labor among the sexes is carried out. The women plant the rice, carry on the household industries, and prepare and cook the rice. The planting and harrowing of the fields, the construction of houses, and fishing are usually left to the men. In many places are found a few artisans, such as barbers, carpenters, and blacksmiths, who devote themselves to their special work. The localization of industries is a form of division of labor, and is largely the result of a local supply of raw materials. It is found among the mountain peoples (see Chapter I) and occurs to a much greater extent among the Filipinos. Division of labor may be summed up as that system of production in which one man or a set of men makes one part of an article or performs one step in the work. In some household manufactures in the Philippines it is not observed. In weaving mats and cloth, and in making clay jars, bamboo chairs, and bolos, the workers may do all the steps required to complete one article. In mat weaving, for instance, the weaver may cut pandan leaves and do all the stripping, bleaching, weaving, and selling. In bolo making the blacksmith may buy materials from the Chinese store (no matter how many kilometers away the market is), go out to the forest to burn wood for charcoal, form and finish the blade, put on the handle, and on the market day sell his finished article in the town. Usually, however, a certain division of labor occurs. In the making of copra different persons or sets of persons often do the picking, transporting to the kiln, husking, splitting, placing on the kiln, removing the meat, and Sacking. In the production of abaca in quantity one man cuts down the stalks, another transports them to the stripping sheds, another separates the petioles, another strips the fiber, and still another puts it out to dry. The weaver of sinamay often buys the knotted abaca from another person. In the cleaning of rice division of labor takes place where one set of laborers pounds the paddy, another winnows it to remove the husk, another pounds the rice to polish it, and a fourth group winnows it to remove the bran. Where division of labor can be carried on, the cost of producing an article is greatly lessened because time is saved and fewer tools are used. The laborers do not have to change from one part of the work to another, and therefore become much more skillful and do the work not only better MANUFACTURING 375 There are few factories in the Philippines. Distilleries are about the only ones found in the provinces. Most factories are in Manila and a few in the other ports of entry. The most important are tobacco factories, rectifying plants, lumber mills, ice plants, ropewalks, cotton mills, shoe factories, and match factories. Oil factories are a recent development. but also in less time. In the Philippines the women usually do the trans- planting of rice, because they are recognized as quicker and more skillful than men. Cigarette packers become so expert they do not have to count the number of cigarettes that they grasp ; their sense of touch enables them to determine the number in the hand. The joining of two bamboo hats to make a double hat is regarded as a separate part of hat weaving in Baliuag- Pulilan, in Bulacan Province. The making of buntal hats in Lucban is divided into three steps : (1) the weaving of the crown and brim, (2) the weaving back of the libers along the edge, and (3) washing and ironing the hat and curling the brim. Each group of workers is skilled in its par- ticular part of the manufacture. In bolo making the assistants (apprentices) hammer out the rough bolo which the master workman finishes. Tools are saved by division of labor, since they do not have to be dupli- cated. Instead of one man's needing all the tools for the production of cleaned rice, for instance, each laborer needs only the one connected with his particular part of the work. Another advantage of the division of labor is that it provides light work for the young, the aged, and the weak, and common labor for the unskilled. For instance, among the Igorots the divi- sion of labor in agriculture is so arranged that the children and the aged do the light work, such as picking up the camotes which have been overlooked in previous harvests, and guarding the fields. In making single hats the skilled weavers begin the hats and weave the crown and the brim ; the children and the unskilled workers finish the hats by weaving back the fibers along the edge. Children often knot the abaca used by their mothers in weaving. The modern centrals will allow the planter to devote his entire attention to raising sugar cane and leave to experts the manufacture of the sugar. In factory work where machinery is employed, the tendency is to give each process to a different laborer. Hence, in the making, some articles, such as shoes, may pass through the hands of a score or more of men. To have division of labor, extensive production is necessary. For instance, it would not pay to have a division of labor in the cleaning of one cavan of rice, or in the production of copra from a few scores of coconuts, or in the making of five shoes. It is necessary to have hundreds of cavans of palay and thousands of nuts or shoes. A by-product is a secondary product obtained in the process of manu- facture. Thus molasses, bagasse, and the leaves are by-products of sugar ; husk, bran, binlid, and straw are by-products of cleaned rice. The principal product of the coconut is the oil obtained from the copra. The by-products 3,re the oil cake, which is used for feeding animals ; the husk, which is used 376 ECONOMIC CONDITIONS Household versus Factory Production The persistence of household industries in the face of competition with factory products may be accounted for: 1. Inertia often causes a household industry to persist even at prices which do not give a living wage. Many old cotton industries, such as that of Taal, in Batangas, in which cloths resembling machine-made textiles are woven, are in this condition. These are gradually growing less numerous, however. Modern shoe factories recently established in Manila have somewhat injured the home shoe industry at Mariquina, in Rizal. The leather employed in these factories is much superior to that used in Mariquina ; hence the prod- uct of the former is preferable to that of the latter, even at a higher price. A large number of the skilled shoemakers of Mariquina are now working in the factories of Manila; they are making more money than they were formerly earning in their homes. 2. Where machine-made articles must yield a profit to several middlemen, they are often sold in a given region at higher prices than like articles produced there by hand. 3. Certain articles cannot be made by machinery, such as straw braids for hats, knotted Manila hemp, plaited hats, and most varieties of baskets. 4. The demand for certain articles, such as the " gee " strings of the mountain peoples, is not great enough to warrant special machinery for their manufacture. for fuel ; the useful coir fiber, which is obtained from the husk ; the shell, which is made into household utensils for domestic use, and which can be beautifully polished and carved ; and the milk, which can be made into vinegar. A difference should be noted between a derived product and a by- product. Candles, for example, are not a by-product of the coconut, but a product derived from the main product, coconut oil. Sinamay and rope are not by-products of abaca fiber ; they are articles made from it. The waste from the production of abaca fiber, useful in making paper, is a by-product, since it is obtained as an additional product when abaca is stripped. In many manufacturing industries the profits are derived entirely from the by-products. MANUFACTtTEING 377 5. Household workmen can often understand and satisfy the demands of style better than the factory. Tins is seen in the Ilocano cloth industry. 6. A prejudice often exists in favor of handwork, because such products are supposed to be better made. This is often mere sentiment; still, in certain articles finer and more perfect work can be done by hand than by machinery. This applies particularly to embroideries and laces. 7. In housework the workman labors for himseK. Hence his interest in it causes his highest technical skill and his whole artistic sense to be embodied in the finished article. This interest persists in wage, handicraft, and commission work ; for this reason handmade articles possess individuality and artistic qualities not obtainable in machine products. Household manufacture the world over is not waning. On the contrary, it is being revived, but is restricted to the spheres in which it has peculiar advantages. Its greatest importance is supplementary to agriculture. Location of Manufacture 1. Raw material. The supply of raw materials is an impor- tant factor in determining the location of manufacture. Thus rice mills are situated in rice-growing regions, sawmills in the forest, and factories near good harbors or railroad centers, where raw materials can be transported cheaply. The Philip- pine nipa shingle industry and the distillation of alcohol from nipa tuba are centered in the river deltas on which large nipa swamps grow. The household manufacture of sinamay is largely confined to the abaca regions. The production of hats and mats from buri-palm straws (buntal, Calasiao, and buri) is established near the large buri areas in Luzon. The chinela and leather industries of Gapan, Nueva Ecija, are dependent on each other. 2. Cheap and efficient power. Often raw materials are trans- ported many miles to the supply of coal or to water power, since it has been found cheaper to take the raw materials to the 878 ECOIslOMIC CONDITIONS power than to take the power to the raw materials. Thus iron ore is carried from Spain to England, and from the mines about the Great Lakes to the coal of Pittsburgh to be smelted. Raw cotton is sent from southern United States to the water power of New England, and to the coal of Great Britain. Sev- eral factories are built in Manila in preference to other places because coal can be imported into Manila at a lower cost. 3. Skilled and cheaj? labor. The amount of skilled and cheap labor procurable in a given place largely determines the extent of its manufacturing. In the Philippines raw mate- rials are often sent from towns where labor is hard to get to towns where there is an adequate supply. This is particu- larly true of such household industries as hat weaving. The buntal straw from which hats are made in Lucban, in Taya- bas, is imported from the buri area, where no hats are made because there are no weavers. The hats made in other towns are usually finished in Lucban, since skilled laborers are available. In the same way buri midribs are imported into Calasiao, in Pangasinan, from other towns where the raw materials exist, but where a labor supply is not available. By cheap labor is not meant labor which receives low wages, but labor which produces much in proportion to the wages given. Often labor which receives low wages is not cheap in the end, for it produces little wealth. Thus cotton cloths produced in India by poorly paid labor cannot compete with those of England produced by labor which receives much higher wages. An English laborer produces more in propor- tion to his wages than an Indian laborer, and English labor is therefore cheaper. Labor must be skilled where machinery is used, and the supply should everywhere be large and constant. If there are many laborers one day and few the next, no en- terprise, either manufacturing or agricultural, can be carried on. As labor is the most important of the factors which determine the cost of an article, so it is one of the most important which determine the location of industry. MANUFACTURING 379 In the past the Filipinos have done little work with tools or machiaery. The artisans of the Philippines have been Chinese carpenters, cabinetmakers, and masons. The Filipinos have been mostly employed as tailors, silversmiths, goldsmiths, painters, and blacksmiths, and in structural work which necessitates climbing to a considerable height. They are now taking up other trades to an ever-increasing extent. In prov- inces where skilled workmen formerly had to be imported, a sufficient supply of local labor for normal building operations is now available. The implements and methods are primitive, adopted from the Chinese. The Filipinos have proved themselves especially efficient as sawmill hands, cigar makers, and tenders of cigarette machines. They are also proving satisfactory in machine shops, ship- building and repair shops, railroad work, and the relatively numerous factories now established in Manila. Capitalists are investing money in factories dependent on Filipino labor ; this is an encouraging sign. The problem of training a sufficient body of men to use tools and take charge of machinery is difficult, since the Fili- pinos have been agriculturists. Their proficiency in handwork, however, has made it easier to build up a class of Filipino artisans, such as is now being formed in factories and Insular and Federal shops. The schools are turning out trained arti- sans, and are teaching woodworking and other arts and trades in their general course. They have assisted greatly in the change of feeling toward trade and factory work, so that these are coming to be recognized as honorable and dignified methods of earning a living. In modern industrial nations it is felt that conditions of apprenticeship in the workshop or factory are not such as to give all the training necessary to those who are to engage in trade and industry. They are one-sided and imperfect. Technical schooling is becoming more necessary for the training of workers. Sometimes this is given in the factories ; more often it is left to schools. The 380 ECONOMIC CONDITIONS present demand for skilled labor in the Philippines tends to enhance the importance of technical education here.^ The idea of trade and labor unions showed itself in the Philippines early in the present century. Unions are combina- tions of labor which try to meet the concentration of power in the hands of employers (an outgrowth of the factory system) by a similar concentration on the part of the employed. Unions do not exist for the purpose of striking. The strike is one of the means by which they try to obtain their ends. The modern unions of the better sort have for their objects the protection of the worker against encroachment by employers ; the uplift of their members ; the raising of their standard of living ; an increased wage ; and mutual insurance for sickness, accident, or death. In their relations with employers unions resort to discussion, contract, arbitration, and sometimes to the strike. The labor unions established in Manila in 1901 and 1902 under the auspices of a general labor union or federation were formed by a group of men, not laborers themselves, for per- sonal and political ends. They had none of the objects noted above, and illustrate the mischief that false leaders may accom- plish with a body of somewhat ignorant workers. The feder- ation was disbanded by the government a few months after its establishment, because of its seditious tendencies. A new organization, similar to the first, has managed to keep alive, but its activities have not been effective ; its or- ganization is too complex, and it has tried to do too much at once. Meanwhile trade unions, namely, unions of those who belong to the same trade, have flourished under autonomous management, and have proved to be more useful than the federation, because they have been more easily managed and have been able to frame different policies to suit the various 1 The typographical trades in the Philippines offer an excellent example of the success of the Filipinos as skilled workers. In the Bureau of Printing:, of the 466 employees more than ninety-three per cent were Filipinos. Their work has received the highest praise from authorities (Annual Report of the Director of Printing, 1912). In 1918 practically all were Filipinos. MANUFACTURING 381 needs of the separate groups of workers. To-day they are the organizations that uphold the interests of the laboring class. The '' Union de Tabaqueros de Filipinas " is the largest and strongest union. The machinists' and seamen's unions are strong organizations. There are also smaller trade unions. Successful and unsuccessful strikes have been carried on, but the tendency to strike is becoming less strong. To-day trade unionism rather than general labor unionism is the tendency.^ In 1918 the total number of labor societies in Manila was 143, and the membership more than 147,000. No data are available with respect to labor organizations in the provinces. In this same year 84 strikes, 63 of which were in Manila and the rest in ten provinces, involved 16,000 workers, 11,000. being in Manila. Of these 84 strikes, 50 resulted from peti- tions for increased wages, 15 from personal causes, such as sympathy for fellow laborers or feeling against foremen, and 8 from requests for the general improvement of conditions. Of these strikes 62 resulted favorably for the laborers. It must be remembered that prices and the cost of living were increasing in 1918. In this year there was also organized in Manila the first committee on arbitration, the Committee on Conciliation and Arbitration of the Union de Tabaqueros de P'ilipinas and of the Manila Tobacco Association. With respect to arbitration the terms read as follows : 7th. That the " Manila Tobacco Association " and the " Union de Tabaqueros de Filipinas " shall appoint three representatives for each of the said bodies, which representatives shall constitute a " Committee on Conciliation and Arbitration," to which committee shall be submitted all questions and matters which might arise hereafter between employ- ers and laborers, both parties being prohibited from taking radical measures without first submitting their controversies and conflicts to the said Committee. The decisions of this Committee, in order that ^ I am indebted to Mr. Conrado Benitez for data on unions in the Philip- pines. Bulletin No. 58, Bureau of Labor, Washington, D. C, may be con- sulted for details of the early history of the movement. 382 ECOKOMIC CONDITIONS they may be valid, shall be approved by at least two members of each party. This Committee can also, after a previous agreement, appoint an arbiter, whose decisions shall be compulsory to both parties. 8th. The Committee on Conciliation and Arbitration mentioned in the preceding paragraph shall be vested with power to issue rules and regulations tending to the obtaining of its aim, which is the cordial harmony between Capital and Labor, or between employers and their laborers and employees. Another innovation which also occurred respecting the re- lation of laborer and employer is the collective contract of labor agreed upon between the printing establishments of Manila and the " Union de Impresores de Filipinas." The principal terms contained in this contract are as follows : 1. No signing printing establishment shall admit into its shops any laborers not affiliated with the " Union de Impresores de Filipinas." 2. The daily work shall be eight hours. 3. All work done outside the hours designated shall be considered extraordinary, and laborers shall be paid 50 per cent more of the wages agreed upon. 4. The fixing of a minimum scale or rate of wages which should be at least P2 for any classified laborer in printing establishments. 5. The regulation of apprenticeship. In order that anyone may be considered an apprentice, it is required that the applicant be at least 14 years of age and that his knowledge of reading and writing be at least of primary grade. 6. The organization of a committee on Conciliation and Arbitration, which shall be composed of not more than three representatives from each party; the decision of the said committee being compulsory to both parties. Upon request of any representative from any party an Arbiter can be nominated. This nomination shall have the consent of all the members composing the committee, and the decision of the Arbiter so designated shall be compulsory to both parties, with no further investigation. 4. Low cost of transportation. Manufacturing cities must be near their markets, or connected with them by some means of cheap transportation, so that their products may compete in price with the same articles manufactured in other places. MANUFACTURma 883 Cheap methods of interisland transportation have made Manila and other ports of entry successful manufacturing centers. Better communication with Europe and America will do much for Manila as a factory city. 5. Capital.^ Increase in manufacture, and the accumulation of capital, are coincident. In the transition from housework to commission work we see the worker gradually emanci- pated from the soil, and the growth of capital. The looms, yarn, tools, and implements of household weavers are capital ; 1 Capital is that part of wealth which is used for the production of more wealth. Wealth therefore is or is not capital according to its use. Thus the fodder given to a carabao is capital because the animal helps to produce wealth, but fodder given to a race horse is not capital because no wealth is produced by the race horse. A building used as a factory is capital, but a building used for a clubhouse is not capital. Food is the most simple form of capital. At the end of the harvest the farmer has enough food to last him for a number of months. That is his wealth. He may or may not use it as capital ; if he is idle, it is not capital ; if he produces, it is capital. The growth of capital is well illustrated in the economic stages exempli- fied by the Negritos, Subanuns, and mountain peoples. The amount of wealth in the form of implements, tools, and food employed to produce further wealth increases with each culture stage. The growth of capital is the result of saving by the individual, as is often illustrated in the increase of animals. Batangas Province furnishes instances of families who raise a few chickens, sell them for a small sow, and raise the sow and a litter of pigs, which they trade for a calf. Thus a work animal is obtained. The matter of saving has already been discussed in connection with land tenure, and the incentive toward ownership of a farm which the possession of a work animal gives the tenant has been explained. Saving is the great law of capital. The forms which capital takes can be grouped as follows : 1. Productive improvements on land. 2. Buildings, such as barns and factories, devoted to productive industries. 3. Means of transportation, such as roads, canals, railroads. 4. Raw materials. 5. Auxiliary materials, such as coal and lubricating oils. 6. Tools and machines. 7. Domestic animals. 8. Money, weights, and measures. 9. Stocks of goods in stores and warehouses. 10. Books, instruments, and the like. Like the word "wealth" the word "capital" has other meanings than the economic. From the point of view of the individual, capital consists of all his possessions which bring him wealth. Thus a note or a mortgage is 384 ECONOMIC CONDITIONS so are the advances of food and material made by brokers. In the factory system complete emancipation is effected, and the laborer becomes dependent on the capital of others. The avail- ability of such capital therefore helps to determine the location of factories. The capital possessed by the Filipinos is not large ; it is tied up in agriculture. Most of the capital invested in Phil- ippine manufactures is foreign, and any great increase in manufacturing must result from foreign capital, for even with great saving the Filipinos cannot soon accumulate enough surplus wealth to finance- large enterprises. There is no doubt that the Filipinos can save. Sucli primitive Malays as the Bontoks often have in their granaries the rice crop of five years before. The Ilocanos are probably the most saving of the Filipinos. In Hawaii, it is noted, the Filipinos usually spend all that they first earn, and then settle down to regular work. When they find they can earn more than enough to live comfortably, they begin to save. With the establishment of peace and security the prosperity of the Philippines and the domestic capital of the country have increased. The Postal Savings Bank was established by the government to encourage small savings by providing a place of safe deposit. In 1918 there were more than 78,000 deposi- tors; the deposits were F4,928,152. The savings deposited in commercial banks indicate the growth of wealth in the Islands. In 1907 they amounted to about F560,000; in 1912, to almost Pl,000,000 ; and in 1918 to more than Pl,600,000. The total resources of the Philippine commercial banks are even a better index of the accumulation of capital in the Islands : capital to the holder. But from the point of view of political economy (that is, from the point of view of the country as a whole), notes, mortgages, and such commercial paper are not capital. Thus a mortgage on a factory is not capital to a country. The factory is the capital, and the mortgage merely shows that somebody owns a part of it. Economic capital consists only of that wealth which produces more wealth. Interest is payment for use of capital, just as wages are payment for labor. MANUFACTURING 386 Year Total Resources 1907 P 34,000,000 1910 46,000,000 1913 67,000,000 1915 71,000,000 1916 122,000,000 1917 239,000,000 1918 400,000,000 In 1918 the Bureau of Commerce and Industry estimated that the grand total of capital in operation by domestic and foreign concerns exceeded P500,000,000, of which PlOO,- 000,000 represented American and foreign capital. The future will probably see an increase in the American and foreign capital invested here. The larger part of the domestic capi- tal of the Philippines has been of recent growth. Corporate activity became noticeable in the Islands in 1906. Since then more than three thousand corporations and partnerships have been registered. The purpose for which they were organized indicates the relative importance of capitalistic enterprises in the Islands. The table on page 386 shows the need of capital to develop natural resources and manufacturing. Thk Philippinks as a Manufacturing Country Unfavorable Conditions Favorable Conditions Lack of highly developed inter- High cost of transportation island and land transportation favors working up raw materials facilities. into semimanufactured form ; for Distance from the markets of example, coconut oil, centrifugal America and Europe, and poor sugar, transportation facilities to those markets. Agricultural system favors Amount of labor is limited and household industries. Labor is is demanded in agriculture ; labor skilled in handwork; for example, lacks skill in handling machinery. embroidery, cigar making. Lack of power. Lack of capital. What capital Abundant agricultural raw is available is required for the materials. Metals are available, development of agriculture. but not developed. 386 ECONOMIC CONDITIONS Domestic Corporations incorporated from March 30, 1906, TO June 30, 1918 Class I. Natural resources 1. Mining 2. Agriculture 3. Lumbering 4. Fishing 5. Others II. Commerce 1. Wholesale and retail . . . 2. Transportation 3. Banking and insurance . . 4. Import and export , . . . 5. Drug store 6. Warehouse 7. Commission and brokerage . 8. Others III. Industry 1. Construction and repair . . 2. Distilleries and breweries . . 3. Electric light and power , . 4. Vegetable oil 5. Cigars and cigarettes . . . 6. Printing and publishing . . 7. Shoes and other leather goods 8. Ice and cold storage .... 9. Rice mills 10. Others IV. Miscellaneous 1. Recreation 2. Hotels and restaurants . . . 3. Educational and religious . . 4. Clubs and societies .... 6. Others Total Num- ber 379 109 228 31 10 1 324 143 85 13 31 10 9 10 23 205 28 22 14 17 10 32 3 10 8 61 478 49 10 259 134 26 1,386 Capital Sub- scribed P35,449,008.00 21,714,279.00 11,178,279.00 2,199,330.00 277,120.00 80,000.00 37,156,032.00 10,798,880.00 9,744,496.00 9,400,000.00 5,380,475.00 596,400.00 413,650.00 169,100.09 653,031.00 20,055,032.05 4,368,255.00 1,173,250.00 2,625,290.00 1,578,300.00 808,832.75 479,661.00 451,606.00 379,010.00 254,767.00 7,936,060.00 2,938,032.44 775,214.00 527,045.00 232,965.00 8,980.44 1,398,828.00 P 95,603, 104.00 Capital Stock P 67,969,046.00 39,019,900.00 21,290,146.00 6,959,000.00 620,000.00 80,000.00 72,443,050.00 26,655,530.00 19,272,020.00 11,250,000.00 9,125,000.00 2,330,000.00 1,690,000.00 406,000.00 1,714,500.00 49,502,577.30 6,687,500.00 8,257,500.00 6,687,500.00 5,104,500.00 1,992,000.00 1,352,210.00 902,000.00 611,000.00 375,867.00 13,542,000.00 17,246,494.44 2,083,200.00 1,262,600.00 487,000.00 38,194.44 13,375,500.00 F207,161,167.74 Note. Twelve corporations reported to have been dissolved are not included. MANUFACTURING 387 SUGGESTIONS FOR REVIEW AND ORIGINAL WORK Suggestions based on the Text I. Are the Philippines a densely populated country ? 2. Prove your answer with comparative figures. 3. How many fold may the Philippine population be increased before the country will become as densely populated as an agricultural country ? 4. Improvement in agriculture in relation to diminishing returns from land. 5. Explain why dense populations develop manufacturing. 6. Explain why manufacturing regions are densely populated. 7. Density of the population of the Philippines in relation to (a) seasonal labor, (h) the settlement of regions newly opened to agriculture, (c) manufacturing and commerce. 8. Illustrate the stages in manufacture by examples from the Philippines. 9. Why will household production of manufactured articles continue in the Philippines ? 10. Figures which show the growth of capital in the Philippines. II. Name five companies in the Philippines whose stocks are now available for investors. 12. Which do you think a good investment? 13. Why? 14. Japan imports abaca fiber worth P 4,000,000, and reexports it as braid worth P 14,000,000. Explain how this is a loss to the Philippines. 15. Name three partly manufactured products that the Philippines have begun to export in the past few years. 16. Why is this more beneficial to the Philippines than the export of the raw products ? 17. Name some other raw products that might be exported in semimanufactured form. 18. Are conditions favorable or unfavorable for manufacture in the Philippines ? 19. In 1918 the oil mills in Manila were forced to stop for a considerable part of each working day because they were not able to secure electric power. Using this as an example, explain the necessity for abundant power in manufacture. 20. If electric power is developed in the Philippines as it has been in Italy, what effect might its introduction into house- holds have on the development of household industries in the Philippines ? 388 ECONOMIC CONDITIONS • 21. In 1918 about 8000 emigrants were sent to sparsely populated regions of the Philippines ; these emigrants went from Cebu and Iloilo for the most part. In the same year about 2700 emigrants went to Hawaii, of which more than 1000 emigrated from Cebu, 850 from Ilocos Norte, and 300 from Oriental Negros. Comment on these emigrations as to (a) the effect of density of population, (b) the advantage or disadvantage, economically, of these migrations of laborers. Suggestions for the Study of Local Conditions 1. Density of population. 2. Emigration or immigration. 3. Household industries. 4. Factories. ^. Industrial centers. Suggestions for Reports from References, especially FROM Commercial Geographies 1. The concentration of industries in the United States and parallels in the Philippines. (Brigham, pages 92-110, 202-228 ; Bishop and Keller, 201-209.) 2. The United States, the United Kingdom, Germany, France, Belgium, Japan as manufacturing countries. (Brigham ; Bishop and Keller.) 3. The production of cloth, hats, mats, pottery, and embroidery in the Philippine households. 4. Encouragement by the govern- ment. 5. The export of household manufactures from the Philippines. 6. The United States as a favorable market. 7. Philippine factories. 8. The growth of the Philippine ex- port of manufactured and partly manufactured products. 9. The life-insurance companies in the Philippines as factors in stimulating the growth of capital through saving. 10. From the latest report of the Collector of Internal Revenue determine the income tax per capita in each province ; the tax per capita on merchants and manufacturers. 11. Plot these figures and comment on them. 12. From figures in the annual report of the Treasurer of the Philippine Islands make a chart showing the increase in the com- mercial savings accounts since 1907. 13. Make a similar chart MANUFACTURIKG 389 showing the total resources of commercial banks since 1907. 14. Interpret this chart in terms of accumulated capital and of what you have learned about the history of the trade in export crops. 15. The financing of industry and the development of corporations. (Bishop and Keller.) 16. The corporation laws of the Philippine Islands. You have just organized a corporation which has entered into the business of manufacturing cigars. Explain how the organization was effected. 17. The production of coal and iron, and how manufacturing and industry in general depend on them (illustrated with charts, tables, and maps). (All commercial geographies.) 18. The importa- tion of coal into the Philippines. 19. The importation of iron and steel, and their manufactures. 20. The commercial history of petroleum. 21. Its manufacture and uses. (All commercial geographies.) 22. Imports of petroleum and its products into the Philippines. 23. The production and use of gold, silver, copper, and plati- num. (All commercial geographies.) 24. The production of gold in the Philippines (see the Treasurer's Annual Report). 25. The production and use of the principal metallic minerals. (Bishop and Keller and other commercial geographies.) 26. The production and use of the principal nonmetallic .minerals. (Bishop and Keller and other commercial geographies.) 27. Textile manufacture. (Bishop and Keller and other com- mercial geographies.) 28. Chemicals and dyestuffs. (Bishop and Keller and other commercial geographies.) 29. Development in the uses of electricity. (Bishop and Keller and other commercial geographies.) 30. The making and use of cement. 31. Its particular value for construction in the Philippines. 32. Domestic production of cement. 33. The world's production and supply of salt. 34. Its produc- tion and trade in the Philippines. 35. Other uses of minerals. (All commercial geographies.) 36. Although statistics on household industries in the Philip- pines will not be available until the publication of the census of 390 ECONOMIC CONBITIOKS 1918, preliminary figures indicate the importance of these indus- tries. Statistics from eight provinces are as follows : Provinces Establishments Value of Raw Materials Value of Production Batangas Cavite Laguna La Union Leyte Pampanga Rizal Sorsogon 12,097 2,440 1,651 752 5,302 3,425 2,166 959 P 1,132,204.14 207,278.02 233,783.15 112,638.44 487,470.07 340,672.89 360,383.38 112,637.80 P2,341,212.45 585,027.02 547,491.97 1,883,905.82 1,498,215.34 1,028,994.45 788,827.65 293,093.53 Total 28,792 P2,987,167.89 P 8,868,868.23 From these statistics compare the production of household industries per capita in the different provinces. 37. Compare the value of the product of the household indus- tries with the values of various crops, as shown in the statistical reports of the Bureau of Agriculture. 38. If a copy of the census of the Philippine Islands for 1918 is available, make charts indicating the provinces in which house- hold industries are of greatest importance. 39. Make a small map showing the distribution of household industries in the Philippines, using data on household industries by municipalities from the census of 1918, and letting each dot represent 100 workers or 10,000 pesos' worth of product. Manufacturing in the Philippines (From the Census of 1918) 1. From the data on population by provinces and municipalities in the census of 1918 make a small map showing the distribution of population in the Philippines. Let each dot represent 10,000 inhabitants. Compare this map with Chart XXXIV. 2. Make a chart of the provinces in the order of density of population. 3. Which provinces have areas of very dense and which of very sparse population ? MANUFACTURING 391 Selections on the Theory of Economics to be applied TO THE Material in the ChapI^er 1. The law of diminishing returns. (Bullock, pages 74-75.) 2. Review the references for the organization of labor. (Bullock, pages 304-316.) 3. The factors of production. (Bullock, pages 32-54.) 4. The organization of the factors of production. (Bullock, pages 55-60.) 5. Business corporations. (Bullock, pages 60-73.) 6. The law of economy in organization. (Bullock, pages 82-91.) 7. Monopolies. (Bullock, pages 169-197.) 8. Labor adjustments. (Bishop and Keller, pages 385-396.) 9. Explain the following quotation from Clay's "Economics for the General Reader " : " The employer buys labor, not the laborer ; if he can get a great deal of labor from one man, he may pay him as well and will probably pay him better than buying a little labor from each of two or three men." CHAPTER XVIII EXCHANGE Just as a division of labor results in commerce between men, so commerce between regions arises from those different conditions of soil, climate, and environment which cause one locality to produce certain things cheaper and better than they can be produced elsewhere. Since each person produces but one commodity, he must exchange this for whatever he re- quires ; since the inhabitants of a given place produce and export those commodities which they can obtain in greatest amounts, or which will bring them the greatest returns, they are obliged to import other products in exchange.^ Commerce in the tropics consists of the export of raw materials to the northern temperate regions, and the import of manufactured goods from those regions. 1 In the coconut region of Sariaya, in Tayabas Province, practically all food- stuffs and manufactured articles are imported, since it is more profitable for the people to give all their attention to their coconut groves than to branch out into other industries. Hence all available land is planted with coconuts. Abaca, sugar cane, tobacco, and the coconut palm flourish in the Philip- pines. Consequently hemp, tobacco, copra, and sugar are exported, v^^hile rice, cloth, machinery, flour, and other manufactured products are imported. So, in most localities, certain things which are not produced at all, or not so cheaply as in other regions, are imported and paid for with those products to which the locality is adapted. Commerce also arises from the habits of people. National habits spring, for the most part, from environment which creates peculiar material wants. These habits are most apparent when people move to other lands. Thus, the Americans and northern Europeans have brought to the Philippines their taste for butter, and the people of southern Europe their taste for olive oil. Tea must be imported into the Philippines for the consumption of the Chinese and other tea drinkers. Trepang (a sea slug obtained in the Philippines) is not consumed by the Eilipinos, but by the Chinese. The Filipinos use many fruits, such as papayas, in a green state, whereas Europeans and Americans consume them only when ripe, 392 EXCHANGE Total Foreign Commerce of the Philippines On Chart XXXVI it will be seen that the total volume of foreign trade was fairly constant during the last years of the 1872 1874 1876 1878 1880 1882 1884 1886 1888 1890 1892 1894 1896 1898 1900 1902 > 2 § S S3 2 S cS S o> o> o> o> 1 _ War P467.000.00( f Average by 5's X 400 360 340 320 300 280 |260 r 1 Reciprocal FrelB Trade United States/ a. 240 (Average | 1 1 P200.006.000/j^ X ;/ 200 An leri :an 1/ Occupation \ / 160 Pl20.006.000, i 140 ^ .4>. ^ r 120 Spanish (jccvipat on 000 /^ 1 L 11 A 1 \ ^ /^ f "^ k^ ^ i-s, *?S ^ 1 60 N iO 20 _ _ _ _ __ 1 CHART XXXVl. TOTAL FOREIGN TRADE OF THE PHILIPPINE ISLANDS IN MILLIONS OF PESOS Census and Customs Statistics Spanish occupation. For the twenty years from 1874 to 1894 the average total trade was about P75,000,000. This stagnant condition was changed by the American occu- pation. The restrictions on internal and external trade were removed, and interest in the economic development of the 394 ECONOMIC CONDITIONS country was encouraged. By 1902 the foreign trade of the Philippines had increased to more than Pi 20,000,000, a level which was maintained until 1909. In 1909 the Payne tariff provided for reciprocal free trade between the Philippines and the United States ; this gave to the Philippines a practically unlimited market at prices much higher than could be secured in other countries of the world. The production of export crops rapidly extended ; by 1913 the total trade of the Islands reached the level of more than F200,000,000. The trade would probably have remained there had not the World War occurred. In 1916 the great demand for raw materials which this conflict caused finally affected the Islands. In the last two years of the war the volume of Philippine trade doubled; in 1918 it was more than P467,000,000. An examination of the statistics covering the export of hemp, coconut products, sugar, and tobacco indicates that the larger part of the increased value of exports from 1910 to 1913 was due to increase in the actual amount of products sent out of the Philippines ; the amount of goods imported also greatly increased. On the contrary, the increase in value of exports in 1917 to 1918 was mostly due to war prices; that is, the Philippines received much more for only a slightly greater volume of products, and had to pay higher prices for goods imported. In general, the increased value of trade in 1913 was due to the amount of goods, and in 1918 to the high price. What will the post-war level of Philippine exports be ? It will certainly be much higher than the level reached in 1913. The war demands have increased the acreage of Philippine export crops, and a considerable percentage of war profits have been invested in improvements to agricultural lands, and in machinery to aid in the manufacture of raw materials, as in sugar centrals and oil mills ; the world level of prices has permanently increased, and higher prices may be expected for all Philippine products. World conditions indicate a perma- nent increasing demand for cane sugar, copra, and oil ; and a market for Philippine cigars and tobacco has evidently been EXCHANGE 395 firmly established in the United States. Of all the principal export crops of the Philippines hemp is the only one that does not seem to have an immediately bright future ; it is probable that the slump in 1919 was merely a repetition of similar periods in the history of abaca. Although it is prob- able that the general level of exports will not be so high as in 1918, because of the abnormal war prices ruling at this time, nevertheless there are indications that the Philippines will enter a period of great prosperity and attain a volume of trade much higher than at any previous period. For the first six months of 1919 the value of exports from the Philip- pines had decreased about twenty-five per cent over the exports for the first six months of 1918; imports increased heavily, however, and as a consequence the total trade for the first half of 1919 was only a little less than that for the first half of 1918. BALANCE OF TRADE On Chart XXXVII both the imports and the exports of the Philippines from 1899 to 1918 are indicated. It will be noted that during certain periods imports have exceeded exports ; and that during other periods exports have exceeded imports. In general, exports and imports seem to counterbalance each other in the foreign trade of the Philippines. Large importa- tions of rice probably had something to do with excessive imports in the years from 1899 to 1904 and from 1910 to 1914. Imports would have been much greater in 1917 and 1918 if it had been possible to secure goods. With the end of the war a greater proportion of orders from the Philippines were filled in the United States and Great Britain ; in the first six months of the year 1919 imports had again exceeded the exports. In 1912 Philippine imports were Pl23,000,000, and exports about ^110,000,000, a difference of about Pl3,000,000. In 1916 the difference was P49,000,000, but this was an excess of exports over imports, the exports for the year having been ?140,000,000, and the imports about P91,000,000. Such a 396 ECONOMIC COKDITIONS difference between imports and exports is called the balance of trade, the significance of which is usually misunderstood. Two centuries ago the mercantilist theorists supposed that an excess of exports was favorable to a country and an excess of imports unfavorable. Such, however, is not the case, since other factors influence the balance sheet of the country :i Items tending to excess imports 1. Imports 2. Receipt of a loan 3. Interest on capital invested in other countries 4. Earnings of native mer- chants abi-oad 5. Donations received 6. Profits of shipping 7. Expenditures of other nations 8. Indemnities received 9. Travelers from other coun- tries Items tending to excess exports 1. Exports 2. Repayment or an advance of a loan 3. Payment of interest on for- eign capital 4. Profits of foreign merchants 5. Donations given 6. Payments to foreign shipping 7. Expenditures made abroad 8. Indemnities paid 9. Travelers in other coun- tries 2 In the long run the balance of trade of the Philippines should be favorable. Excess exports should be sent away to pay (1) interest on large sums of foreign capital invested here, (2) profits of foreign merchants who control the trade of the Islands, (3) charges for the use of foreign shipping, (4) money taken or sent away, (5) expenditures of travelers and students abroad. 1 That both rich and poor countries may have an unfavorable balance of trade or a favorable balance may be seen from the following pre-war figures : Imports Exports Austria-Hungary Belgium . , . Canada . . . China .... United Kingdom Brazil .... British Indies . United States . $ 641,576,000 832,406,000 521,448,000 306,812,000 3,309,987,000 256,942,000 449,583,000 1,653,265,000 $ 483,773,000 682,418,000 290,224,000 245,538,000 2,204,322,000 325,271,000 719,334,000 2,170,320,000 2 Bastable's ''The Theory of International Trade.' FOREIGN TRADE OF THE PHILIPPINE ISLANDS --Imports / i /! / 1 / 1 1 1 1 1 1 ^ J 1 1 1 1 1 1 1 1 1 7 \^ "^N 1 1 ^' ^ / 1 "" ' ^^ ^'-- • 7 1898 1900 1902 1904 1906 1908 1910 1912 1914 1916 1918 CHART XXXVII. FOREIGN TRADE OF THE PHILIPPINE ISLANDS IN MILLIONS OF PESOS Census and Customs Statistics 398 ECONOMIC CONDITIONS CHART XXXVIII. ARTICLES INCLUDED IN THE PHILIPPINE EXPORT TRADE Averages of ten years in percentages On the other hand, the expenditures of the United States government for supplies for its troops and vessels stationed here, and for the payment of these troops, tend to re- duce the excess of exports, while the inflow of foreign capital still more greatly increases the imports, and even results in an unfavor- able balance. This may con- tinue for some time. That a rich country like the United Kingdom should have an unfavorable balance of trade, and a poor country like India a favorable bal- ance of trade, shows that these words are misnomers when so employed. Excess imports and excess exports are the results of complex conditions, and either of them may indicate a healthy condition of a country's for- eign commerce. PHILIPPINE TRADE WITH THE UNITED STATES The character of exports from the Philippines may be seen in Chart XXXVIII. The proportion of each of the four principal exports in the export trade from year to year is indicated in Chart XL In Chart XXXIX may be seen the character of the average imports. CHART XXXTX. ARTICLES INCLUDED IN THE PHILIPPINE IMPORT TRADE Averages of ten years in percentages EXCHANGE 399 Chart XL indicates that the imports from the United States have greatly increased in importance since 1909. Before that time, and from the beginning of the American occupation, the imports into the Philippines came for the most part from Great Britain and the United States, and to a less extent from Germany and France. (This discussion does not include 100 90 80 70 60 c v " 50 u. 40 30 20 10 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 CHART XL. COUNTRIES PARTICIPATING IN THE IMPORT TRADE INTO THE PHILIPPINE ISLANDS IN PER CENT OF TOTAL IMPORTS Customs Statistics TT nited States tilted Kingdom I, Price Imports from French Indo-China not included. / ^ ^ ^ y\ ' _^ / ^V / ^ _^- ^\ _^ / -^ V. .-r^- "^, _-—"'' -" — — """ 'izn i-^-^ ^■--> the import of rice from French Indo-China.) Until 1909 Great Britain had been the source of about twenty per cent of the imports into the Philippines ; the United States controlled somewhat less than that proportion. In 1909 the Payne tariff made it cheaper to import certain classes of goods from the United States, for these paid no duties ; consequently the proportion of imports from the United States greatly increased. By 1913 the share of the United States in the import trade into the Philippines was fifty per cent. It would probably 400 ECONOMIC COKBITIOKS have remained at those figures if the World War had not made the Philippines dependent on America for many articles which would normally have been procured in Europe. In 1918 this had increased to almost sixty per cent. Between 1909 and 1913 the percentage of imports from the United States trebled. In the same period the value of these imports increased more than fivefold, that is, from P10,000,- 000 to more than P50,000,000. This happened because the import trade of the Islands increased very greatly during the period in question, and nearly all of the increase came from the United States. Many products, such as automobiles, had never before been imported in quantity ; other products that had previously been imported from the countries of Europe, such as cotton goods and iron and steel products from Great Britain, sardines from Spain, dyes, medicines, and chemicals from Germany, jewelry, watches, and fine goods from France, were now obtained from America. In the period from 1915 to 1918 about seventy per cent of cotton goods and an aver- age of eighty-five per cent of iron and steel products were imported from the United States. These are the two largest items in the import trade, as will be seen in Chart XXXIX. The importance of the trade of the Philippines with the United States can be determined from the table on page 401, which shows the exports of the United States to the principal countries in the years 1918 and 1919. Just as the United States has found a most excellent market for its goods in the Philippines, so have the Islands disposed of their products to the United States. Jn Chart XLI it will be seen that in 1918 sixty-five per cent of the value of the export trade from the Philippines went to the United States. In 1914 the percentage was fifty per cent; in 1908, before the Payne tariff became effective, it was about thirty per cent. The value of the United States market to the Phil- ippines is even better illustrated in Chart XLIII, which takes into account the great increase in the value of exports from the Philippines. From 1908 to 1914 the increase was from EXCHANGE 401 Exported During the Year ending June, 1919 During the Year ending June, 1918 To Europe Austria-Hungary $19,441,603 322,940,837 93,167,530 976,696,797 8,843,882 22,908,250 496,174,736 103,801,757 101,641,460 11,390,318 98,931,638 78,119,187 2,147,412,241 Belgium $95,390,695 4,969,542 883,734,921 Denmark France Germany Greece ... 2,573,882 477,898,774 6,381,964 25,216,242 116,705,346 67,163,288 4,122,550 1,995,863,297 Italy Netherlands Norway Russia in Europe Spain . • Sweden United Kingdom Total amount for exports to Europe . . . $4,481,470,236 $3,670,020,501 To North America 813,723,031 48,131,130 119,962,982 229,545,706 778,490,022 43,582,982 107,077,033 235,469,608 Central America Mexico Cuba Total amount for exports to North America $1,211,362,849 $1,164,619,645 To South America Argentine Brazil 138,831,832 93,294,275 70,288,581 109,373,150 66,270,046 63,529,124 Chile . Total amount for exports to South America $302,414,688 $139,172,320 To Asia China 82,992,495 64,272,887 326,462,268 41,455,457 43,476,623 52,292,943 267,641,212 34,718,541 British East Indies Japan Russia in Asia Total amount for exports to Asia .... $515,185,107 $398,129,319 To Oceania Australia and New Zealand Philippine Islands 1,37,034,154 69,930,876 83,960,179 48,425,088 Total amount for exports to Oceania . . . $206,965,030 $132,385,267 To Africa British Africa 55,344,450 44,747,874 Total amount for exports to Africa . . . $55,344,450 $44,747,874 Total amount for exports to all countries . $6,772,742,360 $5,549,074,926 402 ECONOMIC CONDITIONS about ?20,000,000 to about P50,000,000. But in 1918 the exports from the Philippmes to the United States were ahnost P 180,000,000, being an increase of ninefold. All of the four chief exports from the Philippines entered into this in- crease of exportations. More hemp goes direct to the United States than via London, and the value of the hemp sent to 100 90 70 60 40 20 10 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 CHART XLI. COUNTRIES PARTICIPATING IN THE EXPORT TRADE FROM THE PHILIPPINES IN PER CENT OF TOTAL EXPORTS TT nited States nited Kingdom Japan + + + + + France / ^^ V \, \ / x^^^ \ /' \ / — >- /^ "^^ ^>, *-v* ►..^ ■.-^ |_+jH ■*-^ '*^» f^^ K ^"^ ► + H- + ,--' — --.!!!'■' v"^ Mr— ^^^X + + + Customs Statistics the United States is much greater than that sent to England. The product of the numerous sugar centrals and cigar factories, established in the Philippines since 1909, is prac- tically all sent to the United States. During the World War the United States absorbed almost the entire export of Philippine copra, and the product of the new Philippine coconut-oil industry. In addition, the market furnished by the United States is responsible for the large exports of embroidery, hats, and lumber. EXCHAKGE 403 The growth of trade between the United States and the Philippines is shown on Chart XLIV. It will be noted that before the present tariff relations became effective, exports to the United States exceeded imports from that country. Before the World War they were practically equal. This exchange of goods is beneficial to both countries, as a study of the export figures will show. The United States is a large importer of tropical raw products for manufacture, and an exporter of manufactured goods suitable for use in the tropics. The Philippines supply many of these raw materials, and demand the manufactured products. Of the exports from the Philippines to the United States almost seventy-five per cent were raw or partly manufactured, and of the twenty-five per cent ready for consumption a large part were products of handicrafts which cannot be produced in the United States. Of imports from the United States about ninety per cent were manufactures and food products ready for consumption, and about ten per cent were raw and partly manufactured products. The Philippines and the United States are reciprocal pro- ducers and consumers. The rapidly increasing trade between them is strengthened by the mutual elimination of trade barriers (tariffs). PHILIPPINE TRADE WITH COUNTRIES OTHER THAN THE UNITED STATES Since 1909 the percentage of nearly all other countries in the Philippine trade has been decreasing. This is particularly true of the United Kingdom, as shown on Charts XL and XLI. The value of imports into the Philippines from the United Kingdom continued about stationary until the begin- ning of the war, after which it declined, on account of the lack of goods in the United Kingdom, and the lack of trans- portation facilities. The amount of goods exported to the United Kingdom remained about the same, the increase from 1915 to 1918, noted on Chart XLIII, being almost entirely due to the high prices. 404 ECONOMIC CONDITIONS Before the war Japan's trade with the Philippines had in- creased very greatly, especially with respect to imports into the Islands. During the war the manufacturing industries in Japan were greatly benefited, because competition with the countries of Europe practically ceased. It is natural 120 •g60 / / TT nited States 11 i ted Kingdom / u Price Imports from French Indo-China not included. / ' / ^ s. / / N 1 / / / / ^_ l_. . ^^ / — ,^* .-=: '—■ ^ 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 CHART XLII. COUNTRIES PARTICIPATING IN THE IMPORT TRADE Customs Statistics that the imports from Japan into the Philippines should in- crease, since Japan is so close, but it is questionable whether the rising line of importations noted on Chart XLII can be maintained by Japan after exportations again begin from Great Britain, France, and Germany. The increase in the exportations to Japan noted on Charts XLI and XLIII were almost entirely due to the abaca-braid industry, which EXCHANGE 405 i / r'T nited States nited Kingdom apan ranee / U __ J / + + +->-F / / / / / / / / y V / r y \ / / \ y <^ y ^ '^^ / — '^' ^-- '"^ :ti+'' .j^ ■"^c ^^. /' ^^ - +-4-+ + * + + ^ rt*-' ++-*^ X .-"' --^ ^^y- tl^- :»-; ^ + + . + ++ + 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 CHART XLIII. COUNTRIES PARTICIPATING IN THE EXPORT TRADE Customs Reports attained a large growth in the years 1912 and 1913 in Japan ; the raw material for this industry came from the Philippines. France has never imported largely into the Islands, but has been a heavy buyer of Philippine copra and to a less extent 406 ECONOMIC CONDITIONS of Philippine tobacco. The line on Charts XLI and XLIII representing exports to France for the most part represents copra. The decrease in this trade is a war condition. Whether the line will again rise when conditions in Europe become normal is a question of great moment to the Philippine oil mills. The question arises, Will the copra trade to France be resumed ? If it is resumed, the copra thus diverted from the Philippines will necessitate the closing down of a number of coconut-oil mills in the Islands. In addition to the trade noted above, the Philippines nor- mally import a quantity of foodstuffs, especially flour, meat, and dairy products from Australia. Food products are also brought in from China, especially fish, fruits, eggs, and ver- micelli and macaroni. The import trade from other countries, especially countries in Europe, is small. In addition to the countries already mentioned, the Philip- pines export in normal years a considerable quantity of tobacco to Spain, and a good deal of sugar to China. Our exports to other countries are small, consisting for the most part of the four staple export crops either in raw or partially manufac- tured state, such as knotted hemp to Italy, and cigars and cigarettes throughout the Orient and to Europe. Domestic Commerce of the Philippines The amount of a country's domestic commerce depends on the territorial extent of the country, especially from north to south, the consequent different conditions of climate and soil, and the number of different products raised. The United States has so great a diversity of production because of its extent that it could be self-supporting if necessary. The domestic commerce of the Philippines is limited, be- cause there is little diversity of production for domestic con- sumption. Only a few regions raise crops for export to other parts of the Islands. Such are the orange regions of Batangas, the tobacco district of the Cagayan, and parts of the rice region of the Central Plain of Luzon. In a few places household EXCHANGE 407 (T articles are manufactured for domestic trade, such as the cotton cloths of the Ilocanos, the hats of Mavitac and Cavinti, in Laguna Province, and sleeping mats from several towns. However, most regions of the Philippines are self-sufficing or produce crops for export from the Islands ; hence domestic trade for the most part consists of moving the export crops to the ports and distributing imports. In districts where farm- ing is done for subsistence, as in Ilocos Norte, the amount of imported goods consumed by a family is small indeed. The Ilocano agriculturist is not a commercial farmer; he ^ produces just enough rice, corn, beans, chickens, and hogs for his own needs ; he raises enough sugar to supply himself with basi, and enough cotton to clothe his family. On the other hand, in a region devoted to export crops almost everything ^ consumed may be imported. Internal Revenue licenses and domestic money orders are measures of internal prosperity. The following tables show that Internal Revenue licenses issued in 1917 were more than twice as numerous as those issued in 1919 ; the amount of domestic money orders almost trebled during the same period, and increased more than sixfold from 1906 to 1917; Year Money Orders issued Payable in THE Philippine Islands Number Amount 1906 1907 1908 1909 1910 1911 94,261 98,813 107,751 126,148 151,357 191,614 160,524 200,653 254,880 285,057 334,066 381,874 P3,687,126.81 3,229,446.09 3,645,123.13 8,017,355.96 9,781,670.48 12,265,166.15 1912 11,184,401,70 1913 1914 1916 1916 1917 12,848,999.08 14,880,007.02 15,453,467.04 16,996,113.80 22,487,134.52 408 ECONOMIC CONDITIONS Transportation ^ Inland transportation in the Philippines is carried on over trails and roads, and by water and railroads. Trails are found in the less developed parts of the Islands, particularly in the mountainous regions. Human beings are employed as porters (cargadores) to a great extent ; horses and carabaos are also 200 180 140 |l20 «100 / .E sports from the Philippines nports into the Philippines / / 1 i i / / / / / 1 / / / '/ f ^ r:^ / >- pine National Bank notes of 20 centavos, 50 centavos, and Pi of 1917. 27. The silver-certificate-reserve account and the gold-standard fund. (Annual report of the Treasurer of the Philippine Islands.) 28. The bank notes of the Bank of the Philij^pine Islands and of the Philippine National Bank. 29. The circulation of money is often taken as the index of the prosperity and domestic commerce of a country. In 1917 the circulation per capita of the Philippines was about Pl2. Compare this with the circulation of other countries. 30. From the annual report of the Treasurer of the Philippines prepare a chart showing the total annual circulation since 1906. 31. Interpret this historically as a reflection of the domestic commerce of the Philippines. 32. Compare it with the export commerce. 33. From the annual report of the Treasurer of the Philippines prepare a chart showing the percentage of silver certificates and bank notes of P2 or more to the total circulation. 34. Explain how this represents increased purchasing power. EXCHANGE 439 35. Explain the usury law of the Philippines. If possible secure a copy of the court records of a case tried under this law. 36. On what sort of security do bankers ordinarily make loans ? 37. What forms of security may be accepted by the National Bank of the Philippines ? 38. Why did the old Agricultural Bank of the Philippines fall short of meeting the needs of the country ? 39. Define the following terms : discount, deposit, issue, loan, overdraft. 40. Describe the method of making a deposit in a postal savings bank. 41. How can you make a withdrawal ? 42. Describe the method of establishing a checking account in a bank ; a savings account ; of obtaining a certificate of deposit. 43. Explain the difference between these two accounts. 44. Of what assistance is the checking account in promoting exchange ? Suppose you were saving PlO a month; how would you handle your savings until they reached the sum of PlOOO? 45. Mention various approved ways of investing PlOOO. 46. Why government supervision of banks is necessary, and how it is effected in the Philippines. 47. The regulations governing the formation of rural credit societies. 48. Their similarity to the turnuhans. 49. Have the class organize itself into a rural credit society. 50. Marketing. (Bishop and Keller.) 51. Government and commerce. Activities of the government of the United States. 52. Activities of the government of the Philippines. Selections on the Theory of Economics to be applied TO THE Material in the Chapter 1. Exchange: The theory of exchange. (Bullock, pages 97-115.) Metallic money. (Bullock, pages 116-122.) Credit and its instruments. (Bullock, pages 123-128.) Laws of money. (Bullock, pages 128-142.) Government paper money. (Bullock, pages 143-149.) Banks as institutions of credit. (Bullock, pages 149-158.) Bimetallism. (Bullock, pages 158-166.) Eailroad rates. (Bullock, pages 208-216.) Public control of railroads. (Bullock, pages 216-225.) International trade. (Bullock, page 226.) 440 ECONOMIC CONDITIONS 2. The Philippines have a natural monopoly of hemp. Why can they not sell abaca at any price they desire ? 3. In 1919 the Philippine government created a monoxjoly of rice for the purpose of controlling the distribution of the avail- able stock in the Philippines. Determine what the result of the prices fixed by the government was (a) as to the sale of rice through the usual channels, (b) on the planting and the produc- tion of rice. 4. Explain the difference between such a monopoly and a financial monopoly. CHAPTER XIX SUMMARY 1 Comparison with Former European Conditions BEFORE THE INDUSTRIAL REVOLUTION The economic life of the Philippines is to-day predominantly national, with much of the old town economy and even domes- tic economy remaining. The Philippines are an agricultural country, with an extensive supplementary household manufac- ture. In many respects the conditions here resemble those of England and the Continent before the Industrial Revolution, about a hundred and fifty years ago.^ Up to this period the general character of industry was much the same as in the Middle Ages, or even earlier. Both agriculture and manufacture were still pursued by primitive methods; the farms were small, and the manner of cultiva- tion unscientific. Indeed, in many parts of England there still remained the old common fields, which dated back to the days of the Norman Conquest and before it, and were cultivated by peasants who, in many respects, had not pro- gressed much farther than their villein ancestors. ' But the peculiarity of the tillage system was that each vil- lager had his strips or patches of land in different parts of the common field, not in juxtaposition. This custom, doubtless a relic of primitive times, was the cause not only of endless inconvenience, but of the slow development of the science of agriculture. Disputes were constantly arising concerning the boundaries of the strips or the method of cultivation, and 1 Mr. Herbert W. Krieger assisted in gathering historical data. 2 Adapted from H. de B. Gibbins's '^ Economic and Industrial Progress." 441 442 ECONOMIC CONDITIONS there was no opportunity for anybody who was cleverer than his fellows to follow out a course of his own, or to indulge in agricultural experiments. Much time was lost in going from one field to another. The domestic system was very general in England and on the Continent before the changes brought about by the Indus- trial Revolution. Manufactures were closely associated with agriculture, and the craftsmen spun and wove with spinning wheel and loom in their own houses, to which very often a small piece of land was attached. At one time the weaver had furnished himself with warp and weft, worked it up, and had taken it to the market himself for sale ; but by degrees this system had become too cumbrous, and the merchants themselves gave out the yarn to the weaver, or in other cases got together a few looms in a village and had them worked under their own supervision. Aside from the many villages there were towns. Citizen- ship in these towns depended on the possession of a home and land. People who lived outside a town were not granted many of the rights that its citizens possessed. The occupations of the townsmen were, of course, more varied than those of the villagers. In addition to agriculture the townsmen carried on manufactures and trade. Trading was the principal thing that marked off the life of the towns- men as distinct from that of the villagers. Articles of home manufacture, such as cloth, leather, and arms, and goods of wood, metal, and leather, were sold; likewise foreign goods brought to the towns from the Continent were displayed for sale in the towns. The so-called market towns disposed of the products of manufacture. The market towns sold mostly local produce. Town fairs, held at stated periods, were important for a time, and merchants came from far and near to display their goods. Such fairs were held at different periods, so that merchants could attend many of them. SUMMARY 443 THE INDUSTRIAL REVOLUTION During the eighteenth century the old common fields, with their minute parcels of land, were gradually inclosed and turned into the trim and well-ordered private fields of the present day ; but the old system was hardly dead at the close of the eighteenth century, although rapidly becoming obsolete. The last century, however, was remarkable for the growth and progress made in agriculture and stock-breeding by the methods of a few pioneers. It was the beginning, also, of the age of the capitalist-farmer and of large holdings in place of the peasant cultivator and his tiny patches. Indeed, without capital and large farms it is difficult to see how improvement could have taken place, at least with such rapidity. Improvement in implements, the introduction of machinery, new crops and rotation of crops, all received their impetus during this period. The first of the great mechanical inven- tions of the Industrial Revolution had to do with spinning and the weaving of cloth. The first successful invention was the spinning jenny, in 1764, which was able to spin eight threads at a time. Improvements on this machine, greatly increasing its spinning capacity, were finally combined in the mule. There remained to be invented a weaving machine that could keep pace with the increased possibilities in spinning. This was realized in the power loom. About the same time in America an apparatus was invented that was able to sepa- rate the cotton seeds from the fiber of the boll. Formerly this had to be done laboriously by hand. Cloth manufacture was now free to go forward unhampered, were it not for one diffi- culty ; the repeated inventions had so increased the size of the spinning machinery that it could no longer be placed in the houses of the laborers. To work the machines by hand power was almost impossible. Special buildings were constructed, and horse power was employed. Later the buildings were placed by the side of streams, and water power was utilized. 444 ECONOMIC CONDITIONS The first steam engine to be used to supply power in a cotton mill was in 1785. It had been used earlier for other purposes. It was now necessary for laborers to leave their homes and work in factories. They did not possess enough means to set up their own factories, and capital was supplied by successful merchants or by the former owners of large estates. Since domestic manufacture was no longer profitable, the displaced HUMAN POWER : AN OIL PRESS hand workers gave up their small landholdings and went to the factory towns as wage laborers, or devoted themselves solely to the cultivation of their small holdings. Often they sold their land and became agricultural laborers. Wood in England was well-nigh exhausted at the opening of the Industrial Revolution. As a result, the smelting of iron was on the decline. The use of coal in the reduction of the iron ore relieved the situation and stimulated new methods of coal mining. Its use for making steam caused factories to be founded in the proximity of coal fields. Many canals were 1 g : ^ ff'j^'Cur 1 ^- me^. MM M m^' ^ - '^ >^ ifiif^*\ L ^ ■:■...... -^ „. .f-- i.-.:_JL^_ m. An Animal-Power Cane Crusher --■- ^ ~-~^^^f^^,7. -try :M|^B P^WHNI A Watek-I'uwek Cane LKL^iii-.u POWER 446 ECONOMIC COKDITIOKS built, and great cities sprang up along them. Later the con- struction of steam railroads brought further change in the localization of the great centers of industry. Cities that had harbors were now connected by railroads with the mines and with the regions of agriculture and the raising of sheep. The period of great inventions did not cease with the years immediately following the beginning of the Industrial Revolu- tion, but have continued to the present time. The application of electricity to industry, and the use of fuel oil for power, are achievements of the modern age. Invention after invention is recorded annually in the history of the industrially progres- sive nations. The elements have been so completely mastered that the poorest laborer of to-day may in many respects live more comfortably and safely than could- the lord of the manor in medieval ages. Resume of Economic Advance in the Philippines The Philippines are now going through an industrial revo- lution similar to the one which took place in England, except that the impetus has come from without, and that the achieve- ments of other countries can be taken for guides and goals. At the beginning of the seventeenth century Manila had come to be the commercial center of the Far East, and her mer- chants were in control of the commerce between the Orient and Spain and the Western World. The period of the brilliant success of Spanish effort in the East was brought to a close through the petty jealousy of the Spanish merchants at home. Only one vessel was permitted to ply between Mexico and the Philippines. The freight charges on this galleon were heavy, and served to raise the price of products to such a degree that an importer or exporter of goods for the Mexican and Phil- ippine trade could realize a profit of several hundred per cent. From the beginning of the seventeenth century Spanish dominion both in Europe and in her colonies began to decline. After the Mexican trade ceased, the new outlet of Philippine trade was Spain itself. The route was by way of the Cape of SUMMARY 44T Good Hope. Profits were now decreased, and trade became more extensive, since it was no longer a monopoly. Some few foreign business bouses began operations in Manila, but under many restrictions. The wider market open to Philippine prod- ucts stimulated the production of Manila hemp, sugar, and tobacco for export. In 1837 Manila became an open port for the ships of foreign nations. The cultivation of the staple export crops became still more extensive, and coffee and sev- eral minor crops, such as coconuts, made their appearance. In 1855 Iloilo and Zamboanga, and in 1863 Cebu, became ports of entry. These concessions to foreign trade were accompanied by a liberalizing of the customs duties. The prices of the export crops had so increased that it became profitable to the planter to introduce their cultivation and to purchase much of the rice required for the food supply. The opening of the Suez Canal greatly stimulated the trade re- lations of the Philippines by shortening the distance between Europe and the East, and gave the Philippine planters an oppor- tunity to compete with the more favorably situated countries. The stagnant economic condition of the Philippines in the last decade of the nineteenth century is indicated by the dead level of foreign trade which existed through that period (see Chart XXXVI). The economic advance of the past decade is likewise indicated by an increase in foreign trade never before approached in the history of the Philippines. It has been occasioned by the removal of industrial restrictions, by encouragement to the economic independence of the individual, and by the opening of a market (the United States) for ex- port products. Agriculture has been most affected, but manu- facture (both factory and household), forestry, mining, and commerce have also progressed. The industrial growth of the Philippines will continue, and will be based on the natural resources, the supply of labor, and the amount of available capital. Although exports may fall off when world conditions become normal, the impetus given to Philippine industries by the war's demands will have a lasting effect. 448 ECONOMIC CONDITIONS Present Economic Tendencies Household manufacture dependent on agriculture will per- sist with the systems of peasant proprietor and share tenant. The drift is toward commercialism and the commission system, and the perfecting of old articles and the introduction of new wares for the United States market. The growth of factories will occur in the larger ports of entry. At the present time the Philippines are hampered by POWER : COAL IN BARGES, UNITED STATES From Brigham's "Commercial Geography" the lack of coal or other means of obtaming power. The Spaniards began to search for gold when they occupied the Islands, and later interested themselves in other minerals. Gold mining became important after the American occupa- tion, but until recent times was rather speculative. At pres- ent there are some successfully operated gold mines and dredging properties. Should great finds be made in any of the Philippine mining regions, the resultant thronging of people to the new fields might settle certain sparsely populated re- gions, just as California, Australia, and Alaska were settled. Although, so far as value is concerned, gold is the most SUMMARY 449 important mineral now produced in the Islands, there are de- posits of many other minerals, both metallic and nonmetallic. The production in 1918 is noted in the following table : Estimated Statistics of Mineral Production in the Philippine Islands in 1917 [Approximations only] Quantity Value Metallic IroTi metric tons • . 50 125,000 2,119,000 Pesos 18,00.000 6,250.00 2,816,638.37 Silver (alloyed with gold), tine grams . Gold, fine grams Value of metallic Nonmetallic Coal metric tons .... .... 3,200 14,000 725,000 230,000 26,000 3,350,000 2,840,888.37 80,000.00 Clay products, metric tons liime metric tons 900,000.00 270,000.00 Sand and gravel, cubic meters .... Stone, cubic meters 700,000.00 350,000.00 780,000.00 Mineral w^aters, liters 85,000.00 Value of nonmetallic 3,165,000.00 6,005,888.37 The Philippines are chiefly an agricultural country, and the development of agriculture must require the principal attention and effort of the government and of the people in the years to come. The development of the mineral resources and of power, however, is not to be neglected. Act Num- ber 2849 of the Philippine Legislature created the National Development Company. Its purpose is to engage in com- mercial, industrial, and other enterprises. The government is to hold the controlling shares ; provincial and municipal governments, or the public, may have the remaining shares. The legislature has also created the National Cement Com- pany, the National Iron Company, the National Petroleum Company, and the National Coal Company. Material for the 450 ECONOMIC CONDITIONS production of cement is found in the Philippines, although the one factory here has not yet been successful. Cement is particularly important in the Philippines, and its production here on a cheap and extensive scale would be of great assist- ance to industry. There are traces of petroleum in various parts of the Islands, but as yet little has been done in the way of investigation. The National Coal Company is the only one of these corporations authorized by law that was actively producing in 1919 ; it was operating in Mindanao. In addition private coal mines are being developed in various parts of the Islands. In 1918 the total import of coal into the Islands was about 405,000 metric tons, valued at more than p4,500,000. Most of our imported coal comes from Japan. The 3000 odd tons of domestic coal produced in 1917 seem to be trifling. Somewhat more was produced in 1918 ; the total possible output in 1919, even with the devel- opment of the mines noted above, was about 20,000 tons. It is evident, therefore, that there must be a large development of coal mines in the Islands to meet the demands. More- over, it is probable that special methods of burning Philip- pine coal must be adopted, since the coal is very soft, and powders easily. Countries like Italy, in which coal is lacking, have been able to develop electrical power. Japan is also a country in which the water power existing in the mountainous regions is converted into electrical power and transmitted to indus- trial centers. In the Philippines there are possibilities of developing electrical power, especially in regions which are not greatly affected by dry seasons, or in which water can be stored. The table of rice mills on page 33 indicates in a general way the provinces in which water power exists. In the immediate future the factories needed will probably be similar to those already established to produce goods for domestic consumption (such as matches, cigarettes, and cottons), and to work up raw materials (for example, turning abaca into rope, copra into coconut oil, and tobacco into cigars). SUMMARY 451 In forestry, capitalistic methods of large production will soon supply domestic demands, and export will follow. In agriculture the tendency to large estates in certain localities will probably be offset by the general desire of the Filipinos to become inde- pendent small farmers. It may be that ultimately the creation of educated profes- sional and artisan classes will result in a movement lead- ing away from the land, and the consolidation of small plots into larger holdings. On large and small holdings better methods and machin- ery are gradually finding their place. The agricul- tural laborer is receiving economic independence and greater incentive to pro- duce, and the old forms of bondage are breaking down under education and en- lightenment. Greater production is tak- ing place under the impetus of a profitable market in the United States.^ The value of that marl^et and the value of the Filipino as an agri- cultural laborer are being recognized in increased capitalistic agriculture. Foreign cap- ital, particularly from the United States, is being invested in large estates purchased from private owners or leased from 1 The United States annually imports raw tropical products worth about $1,000,000,000. POWER : BOTACAN FALLS 452 ECONOMIC CONDITIONS the government; domestic capital is also increasing. The increased products are being carried by an improved system of domestic transportation ; better connections by steamers are being made with foreign countries. The Philippines are a country of great potentialities. Mod- ern methods, labor economically free, and sufficient capital are causing a wider and better use of the abundant natural resources and a greater production of wealth. Suggestions for Review and Original Work I. From the latest " Statistics on Principal Crops " of the Philippine Islands, Bureau of Agriculture, prepare a diagram representing the total area under cultivation. 2. Divide it into sections, one representing the area devoted to food crops, the other the area devoted to export crops. 3. Divide these again into sections representing the respective crops. 4. Make a similar chart representing the values of the crops. 5. Make a deduction from these diagrams as to the importance of various crops according to the area and the value. For example, add the areas devoted to food crops and their values ; add the areas and values of export crops also; compare these and explain the relation of value to area on the importation of rice into the Philippines. 6. The general future agricultural prosperity of the Philippines. 7. Which product in your opinion has the greatest future, abaca, copra, tobacco, or sugar ? 8. Which has the least chances of greater prosperity ? 9. Have the Philippines such a complete monopoly of abaca that they can fix the price for it ? 10. A comparison of the Philippines with England at the time of the Industrial Revolution. II. On what do the present household industries of the Philip- pines depend ? 12. The future of these industries. 13. Will the Philippines ever be a manufacturing country ? 14. If the United States should adopt free trade, or the Philip- pine products should again have to pay duty on entering the United States, what would be the effect on Philippine industry ? 15. Explain in detail. 16. The present tendency with respect to import tariffs in the United States. SUMMARY 453 17. The prosperity of the Philippines depends largely on the world's economic condition with respect to the demand for raw materials. Explain why, and give examples from the history of the abaca trade. 18. The revenue of the Philippine government, and how it is expended. 19. The organization and duties of the Bureaus of Agriculture, of Internal Revenue, of Forestry, of Commerce and Industry, of Education, with respect to the economic development of the Philippines. 20. Government aid to manufacturing enterprises in the Philippines. 21. Government aid to agricultural enterprises in the Philip- pines. 22. Government supervision and aid, and the resultant increase in the quality of hemp, maguey, tobacco, copra, and sugar. 23. Control of public utilities exercised by the Philippine government. 24. Secure from the Provincial Treasurer copies of the laws and regulations governing (a) postal savings banks, (I)) the Phil- ippine National Bank, (6) rural credit banks and societies. Dis- cuss the activities of each of these institutions in promoting savings and in extending loans. 25. Wages in the Philippines (from the census of 1918). 26. Forms of increased wealth noted in the community. 27. Plans for the economic improvement of the province. 28. A review of Bullock's " The Elements of Economics," illustrating the economic theory by examples from economic conditions in the Philippines and other countries. 29. Bring in reports on the following subjects : the industrial development of the Philippines (a) during the Spanish period, {b) from 1900 to 1909, (c) from 1910 to 1914, {d) during the World War, (e) since the World War. 30. Write a paper or prepare a discussion on what the World War meant to the economic development of the Philippines. 31. In the table on page 454 compare the figures of the trade of Siam with those of the same period in the trade of the Philippines. 454 ECONOMIC COI^DITIONS Values of Imtouts, Exports, and Total Trade of Siam from 1909 TO 1918 Year em>kd Makch .11 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 Population 7,999,000 8,007,000 8,178,000 8,266,000 8,397,000 8,449,000 8,542,000 8,636,000 8,731,000 8,827,000 Imports P 56,258,015 57,580,266 50,752,485 53,765,997 58,866,036 67,764,387 58,485,383 56,358,810 65,667,519 72,569,637 Exports P 73,790,156 75,401,668 81,039,742 62,215,925 60,076,767 86,223,878 75,749,963 79,160,144 90,814,253 92,542,026 Total Trade P 130,048,171 126,721,704 131,792,227 115,981,928 115,912,805 153,988,265 134,235,346 135,518,954 156,481,772 165,111,663 Note. The values above are reduced from sterling (British currency), which is equivalent to $4.8665, or P9.7330. Population for 1918 estimated only. 32. International competition for industrial and commercial supremacy. (Keller and Bishop.) APPENDIX I TABLES OF EQUIVALENT WEIGHTS AND MEASURES ^ [Conforming to Act No. 1519 of the Philippine Commission] CURRENCY PI Philippine Currency = .^0.50 United States Currency LENGTHS Units Inches to milli- meters 25.4001 50.8001 76.2002 101.6002 127.0003 152.4003 177.8004 203.2004 228.6005 Milli- meters to inches 0.03937 0.07874 0.11811 0.15748 0.19685 0.23622 0.27559 0.31496 0.35433 Inches to centi- meters 2.54001 5.08001 7.62002 10.16002 12.70003 15.24003 17.78004 20.32004 22.86005 Centi- meters to inches 0.3937 0.7874 1.1811 1.5748 1.9685 2.3622 2.7559 3.1496 3.5433 Feet to meters 0.304801 0.609601 0.914402 1.219202 1.524003 1.828804 2.133604 2.438405 2.743205 Meters to feet 3.28083 6.56167 9.84250 13.12333 16.40117 19.0a500 22.96583 26.24667 29.52750 Yards to meters 0.914402 1.828804 2.743205 3.657607 4.572009 5.48M11 6.400813 7.315215 8.229616 Meters to yards 1.093611 2.187222 3.280833 4 ..374444 5.468a56 6.561667 7.655278 8.748889 9.842500 Miles to kilo- meters 1.60935 3.21869 4.82804 6.43739 8.04674 9.65608 11.26543 12.87478 14.48412 Kilo- meters to miles 0.62137 1.24274 1.8G411 2.48548 3.10685 3.72822 4.34959 4.97096 5.59233 AREAS Square inches Square centi- Square Square deci- Square Square Square miles Square kilo- to meters feet to meters yards meters to meters Acres Hec- Units square centi- meters to square inches square deci- meters to square feet to square meters to square yards square kilo- meters to square miles to hec- tares tares to acres 1 6.452 0.1550 9.290 0.10764 0.836 1.196 2..5900 0.3861 0.4W7 2.471 2 12.903 0.3100 18.581 0.21528 1.672 2.392 5.1.S00 0.7722 0.8094 4.942 3 19.355 0.4650 27.871 0.32292 2.508 3.588 7.7700 1.1583 1.2141 7.413 4 25.807 0.6200 37.161 0.43055 3.344 4.784 10.3600 1.5444 1.6187 9.885 5 32.258 0.7750 46.452 0.53819 4.181 5.980 12.9500 1.9305 2.02M 12.385 6 38.710 0.9300 55.742 0.(M583 5.017 7.176 15.5400 2.3166 2.4281 14.246 7 45.161 1.0&50 65.032 0.75347 5.&53 8.372 18.1300 2.7027 2.8328 17.297 8 51.613 1.2400 74.323 0.86111 6.689 9.568 20.7200 3.0888 3.2.375 19.768 9 58.065 1.3950 83.613 0.96875 7.525 10.704 23.3100 3.4749 3.6422 22.239 1 By Dr. Alvin J. Cox, Bureau of Science. 455 456 ECONOMIC CONDITIONS MASSES Units Avoir- dupois pounds to kilo- grams 0.45359 0.90719 1.36078 1.81437 2.26796 2.72156 3.17515 3.62874 4.08233 Kilo- grams to avoir- dupois pounds 2.20462 4.40924 6.61387 8.81849 11.02311 13.22773 15.43236 17.63698 19.84160 Quintals to avoir- dupois pounds 220.46 440.92 661.39 881.85 1,102.31 1,322.77 1,543.24 1,763.70 1,984.16 Metric tons to avoir- dupois pounds 2,204.6 4,409.2 6,613.9 8,818.5 11,023.1 13,227.7 15,432.4 17,637.0 19,841.6 Arrobas to kilo- grams 11.500 23.000 34.500 46.000 57.500 69.000 80.500 92.000 103.500 Kilo- grams to arrobas 0.0870 0.1739 0.2609 0.3478 0.4348 0.5217 0.6087 0.6956 0.7826 Piculs (or pi cos) to kilo- grams 63.250 126.500 189.750 253.000 316.250 379.500 442.750 506.000 569.250 Kilo- grams to piculs (or picos) 0.01581 0.03162 0.04743 0.06324 0.07906 0.09487 0.11068 0.12()49 0.14230 CAPACITIES Units Gallons Liters to Bushels to hecto- Hecto- liters to Gantas to Liters to Cavans to Liters to liters bushels liters gantas liters cavans 1 3.78543 0.26417 0.35239 2.8377 3 0.33 75 0.0133 2 7.57087 0.52834 0.70479 5.6755 6 0.67 150 0.0267 3 11.35630 0.79251 1.05718 8.5132 9 1.00 225 0.0400 4 15.14174 1.05668 1.40957 11.3510 12 1.33 300 0.0533 5 18.92717 1.32085 1.76196 14.1887 15 1.67 375 0.0667 6 22.71261 1.58502 2.11436 17.0265 18 2.00 450 0.0800 7 26.49804 1.84919 2.46675 19.8642 21 2.33 525 0.0933 8 30.28348 2.11336 2.81914 22.7019 24 2.67 600 0.1067 9 34.06891 2.37753 3.17154 25.5397 27 3.00 675 0.1200 APPENDIX II STATISTICAL TABLES TABLE I. POPULATION OF THE PHILIPPINE ISLANDS BY PROVINCES IN ORDER OF DENSITY Pbovincb City of Manila La Union Cebu Ilocos Sur Cavite Pampanga Pangasinan Bulacan Laguna Batangas Iloilo Bohol Rizal Albay Misamis Capiz Antique Leyte Ilocos Norte Tarlac Oriental Negros . . . . Occidental Negros . . , . Romblon Batanes Bataan Ambos Camarines .... Sorsogon Nueva Ecija Zambales Cagayan Samar Tayabas Mountain Abra Surigao Isabela Mindanao and Sulu : Sulu . Lanao Zamboanga Bukidnon Davao Agusan Cotabato Mindoro Palawan Nueva Vizcaya Philippine Islands . . . Akea 1 IN Square Miles 20 350 1,867 442 464 823 1,944 1,007 722 1,270 2,040 1,536 913 1,543 1,030 1,710 964 3,005 1,293 1,178 1,902 3,125 497 74 480 2,851 2,274 2,069 1,421 3,007 5,234 4,195 6,447 1,475 2,889 4,052 1,082 2,439 6.383 3,871 7,486 4,294 9.620 3,983 5,619 3,530 114,420 Population 1903 2 Number 219,928 137,839 653,727 187,411 134.779 223.754 397.902 223.742 148,606 257,715 410,315 269,223 150,923 240,326 175,683 230,721 134,166 388,922 178.995 135.107 201,494 308,272 52,848 46,787 239,405 164,160 134,147 104,549 156,239 266,237 204,739 95,495 51.860 115,112 76,431 120.768 67,899 65,496 125.875 39,582 35,696 62,531 7,635,426 Per square mile 10,996 217 337 398 218 258 334 191 236 215 202 178 206 135 47 132 118 129 135 112 108 98 92 87 73 71 62 49 31 50 48 36 44 16 15 78 15 1915 » Number 266,246 148,459 727,955 170,877 157,477 270,070 535.025 251,249 175,401 286,643 454,911 307,914 180,527 292,157 177,128 286,927 159,870 478,480 185,446 167,738 265,202 414.113 66.113 8,685 51,267 293,012 201,050 168,026 110,634 192,422 325,232 254,052 387,388 65,170 117,640 98.748 110.548 79.597 124.869 58.150 109,921 69.690 97.661 63.777 65.131 34.665 .503.271 Per square mile 13,312 424 390 387 339 328 275 250 243 226 223 200 198 189 172 168 166 159 143 142 139 133 133 117 107 103 88 81 78 64 62 61 60 44 41 24 102 33 20 15 15 14 10 16 12 10 83 1918* Number 280.460 156.390 766.830 180.000 165,890 284,500 563,600 264,790 184,770 301,950 479,200 324.360 190,170 307,760 186,590 302,250 168,410 504,030 195,350 176.700 279,360 436,230 69,640 9,160 54,000 308,660 211,790 177,000 116,540 202,700 342,600 267,620 408,070 68,650 123,920 104.020 116.450 83,850 131,540 61,260 115.790 62.880 102.870 67.180 68,610 36,520 10.010.810 » Per square mile 14,023 447 411 407 358 346 290 263 256 246 235 211 208 201 181 177 175 168 151 150 147 140 140 124 112 108 93 86 82 67 65 64 63 47 43 26 108 34 21 16 16 15 11 17 13 11 87 1 Furnished by the Bureau of Lands. * Census of 1903. ' From Professor Beyer's "Population of the Philippine Islands in 1916." * Estimated on the basis of Professor Beyer's estimated population in 1918. 467 458 ECONOMIC CONDITIONS o o pq Q 05 Pm I si H W Sw m W OH w o gS hQ ;z; P o I to iq t^ O .-<_ t- (N CO e^__ iC 00 © ■* ^^ 05_ O O O 00_ lO X_ tO_ tO_ ■* t- CO 05^ CO to "3 '^" oo" im" ■*"•*" 00 oo ■*" ^* ^ -h" lo nT o" lO «-^ oj" o o -h" r-i" cs" o •<1< r-i CO 0000 lO CO O ^ (N ■* (N IM O ■* to (N O CO U3 tO 00 rH (N CO rt T^ t-. iq r)<_ (N (N O C» -t ■^_^ M rt_ tO_ O CO 00 U5 rH rt Ci ^CO»-<"lO00»Ot>riCO5"cO(Nr-rrH ■* IN ^ © o T»< to ■* to ■<}< ■* to •<»< 00 to •«*< Tjt Q to to (N 00 to O 00 O IN IN ■* ■* C COW t^ t^ tOOO CO -^ to ■* CO Ol O O «^ (N t^ 00 r Tf" rH 00 to CO V O iH tO ■* TjT to •c«>^tD"to'coto"ic CO -te^ fHrt 00 1 05 i52 gg§§^2S^S232SgS^§§g :^?5SSSS^ (NTft IN to »0 © 05 CO toco to lO t^ ■* lO rt t^ t^ t^ (N ■«}< 00 "5 t^ 00 tO r-<_o> t-;^T}<^oqoq©tqt>.or>.cqooO'*ooo5iNio ^rn^ in 00 •*"to"oo to""3"co to to CO Tjt'co i-TrH r-T i" 1" 05 Ttl00TtH00C^tDtO(NtO!N- (c Tj<" to in" CO co" t^ o os" os" o o t-^ 00 © TJH O CO t^ -1 iM t^ to rt © t^ IN CO 05 t^ CO CO (N r-l M ,-( ■* .-< CO --H coo X (N CO O © QO 05 OS » CO t^ (N © rt t^ 00 03 i-t i-H ■* CO ■* oi" rt ©" oi to ■*" t>r tC eJ t>r IN rt" (n" rt" OJ (N -H C^ (N IN 00 CO CO (N CO Oi U5(NI>CO-*'C©©T(^(N» § 5" ^" 2 g ^' i § s 2 s g ^" s' s s s s' s 5" § § ?5 § s" s "^ i (N Tt< 00 to X 01 to -"JH CO UO ■* 05 to lO ■* © Oi © t^ IN IN rt rt IN «"^- oo"^"co"©t--t>."tCto"u5co-^"--.H" 00 ^ s (NOOOO-*©-*-*MtO©-*c^OiN©-*tOtOtO©00->iftCtOOO©TfiTj4 IN'rHOOIN©t^OOlN'OOOOJ©©OOt^OO©iNeO'*Tl.t>.t^U500COtOt^ (NCOtOCOC^©l^'qt^'-itO00-*00'H©COIN©iNt^00©t^lN©tO->Ji 00 ^" O © 03 ■*" rt" TjT rH to" ©" lo" ©" in" 00 CO © © -h" 1-h" co" co" t>^ to iC ©" to -T t--*Ot^OfOtOtO'H©CO©INt^©tO-*Tt<00 OOt- ^'*IN©_tOlNtO00©INX©©X(NtO©-*cOe^» rHrH (N to CO CO ©" to" l^ -*" to to to Co" -h" rt" r-T © !N-H ■*" © 05 gg§;ss^?5gSg§55S?5S?fe^g5SS;§§^2§§?? iO_ to to N IN © (N t>._^ i». -^ •* »0 ■.^ oo" rt" O ^" to "O ©" CO "O t^ c^" t-^ IN u? eq" ^" in" in" in" ©" oo" ©" oo" — " to" oo" cq" ©" CO to CO "O ^- © © lO O ■* cq CO CO trs rt OOt^ © -"l* to CO 00 © IN IN © © iC rt © © © -* 03_ CO_ q © 00 © t>._^ ^ IN to 00 ^ (N -^ rt (N O •^TjTlN t-^ tC tC CO CO CO tHC0"'h" i2 CO (N to 05 117,021,611 648,267 22,376 110,960 30,001,039 19,136,989 7,047,664 150,346 9,705,062 8,426,851 6,667,656 3,115.795 13,019,776 4,772,756 29,520 1,323.645 1,440,571 2,429,913 658,949 1,561,665 7,360 323,139 447,053 1,379,272 89,666 13,190 1,315,949 © C^ © •* © © b- © t^ CO CO t^ 00 t^ © t^ IN © © © CO rH 00 00t~ CO© r-llO ©■.tO©,-l©'* © r^ O 00 00 IN 00 to ^" ©" ■*" rt" tC Cl" ©" Co" © t-" ©" CO ©" 5^* ©" © ©" t>r ,-H* CO ^% §SgS^S?2Sgfe^??^2^5Sl: ??'^ = «' 2S CO 00 2 ©IN (N O O © >0© CO lO t^ © rt ■* ^ lO to 00 t^ CO ^ U3 1-1 © 00 CO »oi^ e--ai io^__rH© •©rHoo_oo_ic©_ r rH (n"in -H 00 ....______..___■'■_■■._ _ . _ . .11 United states Hawaii . . . Porto Rico . . Guam United Kingdom Japan .... France .... Germany . . . China .... Hongkong . . . Spain .... Australia . . . French East Indies British East Indies Belgium . . . Switzerland . . Italy .... Dutch East Indies Siara .... Netherlands . . Austria-Hungary Japanese-China . Norway . . . Canada .... Denmark . . . French Africa British Africa . . All other countries 3 ^ APPENDIX II 459 12; (— 1 O o f^ o w 00 OS 1— 1 tj tH 8 CO ^p5 w W n w HH c ; HH S Q tf Q o W 1^ W s g r/5 «! g S M Pm W g ev) « 00 o < rJIOOOOrHI, _ _ ___. ■«f-Ht>rco ^ t^t^-too-^oo OC<55OtO«00Oi >cos«5ooT).(N-3<00^l OOIN 1 IN'<*._^ CO t^ "5 iC CO O W -H Ti<^ t-. CO Tj<^ (N CO IN N CO 7 c^" « CO o o o t»" © »H r>.* o CO CO CO CO cj to ffl of CO — O lO th It 05 00 to O rt Tf IN .-4 OiOiNiOOOiOtOOtOOOiOOi "jTfitoi-iootO'^cooO'Hosi-ii t000'^O0000!NO00-*iN-*T}<(M00t0-^TjitOOt0ON»00 iO5«COt^O5(N00OSCOTfoOQOco_oo.-HtN^oo-*__»oo2eo_c^'*ocTfieo-*c^'^_rtCOo O 00 00 00 (N 00 T)<^ to 05 oi in" M o" CO oT 00 ■ (N O C-1— ((7^t>«t>»00Oc^^r*»-HO«5 I"* ) 00 1^ ^ 05 O "-I 00 o too to ■* «o ■* «o ICOiNO O CO ■* -H IN lO (N to 00 iH (N 1-H lo t-Ti-Tto tC Tj? 'lOOCOOSfO' ._ ^„», ., itOTfiOcOiCiCtOtOOOCO(NOt»iO' iNOiiN-HiOiOOOWTlltOUS tOi-itOi-HOOOOtO-HiNCOOOCOCO •*tOt^CV»>-itOM'^05tO— ICOOSU5 C0_ O CO t- lO^ CO lO^ C>» rH IN CO O 00 O »C05(N esit^05"co "_" " "_" IN f^ 5^ CO (N 00 to lO O 00 O t^co ^ e^-HiNc^t^'^05 I CO t^ >flo ( CO -^ ic t^ ■* ' IC lOi-HOOiCOO-^i-ilNCOINt*! ~ (NiNOOOqM'*_tOt>_ »C in"ot»to>ooo5t^«toeoootoo5 OSTj^OtO-'Jtt^OOt^OSOSOOOS iCtOOtO-^iC>OT»<05(NO Jt^iOr-HlNtOtoaiCOOD '00f^(NO5t^OlN"5M. „.. iOCO-h^tH r^ iOiN"5 t^ 05 v_-05 IC t* »0 -H !N 0 00 IN O O to 1-H IN •* 05 N(N ^TfcO 0'-<«5W5t^lN"5INi e^" CJ" ■*" co" Co" 00 o' oo" os" • 0» -^ IN 00 r^ 05 -< IN CO CO CO I -I hi p ab o S Isl ss • X5 hJ ^ ■{J • p^oaQSOiii2;(n2;Q500»?PQQSW'?35'< ■ III • tie 460 ECONOMIC CONDITIONS s O 05 o o PQ PQ 20 o g I— I 7-t t0X5O00CCO T}fMoo!Ncqiocq»oiccooq« *^®'^. C005 T«00-*eOlCCOt>.""50 ^fOr^ -^ J eo ic CO t>." "5 O I rH tq t^ Tjf O 00 t» 3 ^ CO ^ CO O . O rt IC 00 I 05 t^ to I It O CO zz CO lO . IN O O O CO •* CO lO -H O^ Tl^ O iq 00 (N tCco CO O CO ■ . CO "5 t^ 05 X 05 ' O »0 rt__ C0_^ CD_ IN O t>^ 1 __ 00 TjT Tj? |C o' oo" i> lo co" s._-H'r ^ t>r oi" lo -H < IN O .-HrHrHlOMM*© (N CO ^ O 05 IN I N. to lO IN "5 to lO t^ Ttt O -* Tfl lO CO IN rH T}< e* ■* "J" CO Co" CO" CO d" CO" IN o O «> b- 00 05 05 ■* lO IN CO ■* CO rH Oq_ lO 1-l_ tH 0^ !-!_ i-H 05 lO tH (N »C CO IN COt-T Tj<_ CO CO en 0_ t-<_ O t^ 00 i-H 00 -H 00 CO to o CO «: o '^ ■* CO IN CO 6,420 5,780,473 84 1,233,258 1,280,597 4,957,763 365,814 1,367,052 4,418,307 68,269 2,691,738 418,779 208,733 8,206,294 9,697,614 36,400 1,339,276 1,046 00 05 C^ i i CO CO00CDTt»0 (M05CDC0»HC0»O(NO050005 t- co_^ iq 05^ oo_ oq t^ CO 00 O c^ O ■*" lO 00 CO rH* oo" 'I)? CD to 05 »0 IN •OCOO>r-llflt>.Or-ICOC<)00'H (N CO •* r-H 00 to O 0> ^ ■«»<_ r-Tcd CO INOIO rH Ifl a -H >> ^ e3 23 I sJ a • Pi a - il APPENDIX II 461 i w Eh O Q W H tf n flH 00 XI OS W T— 1 TA) Q s T— 1 c; „ H CO p:! m ^ CQ <5l ^ Ph w H-4 pel Ph Q W f^ Q CJ ^ jyj w OQ w Ph M S 00 © OS g ss 2§o§g 1 § ^ t>; "^ '^ ®.*. CO t^iq o o © 00 © lo' 00 00 Nto" ■<1< '-J'co i«i © g- 00 ^ so t^ OS t^ (N U5-< t^ ■* CO ■* t> »o IN e>i CM 00 lO CO .-H M CO eo ^ § 1 ??l IIIS 2 |g ?3ig ss; « "^ © N eo CM CO rH CM t^ C» o 00 t^ t^ lO O lO t^ rt 00 OS r^tC ciui t^ © r^ (O lo oioo eo a)rt< rHOOrH ..CO © © U3 CT> (N iCI^ OS ■* CM ^ ■* "5 ^. M s N eo ■* iO eo '"' QO s; g §jes2 © ® © lO © ■* CM t- © CM CM © CO s y S 1, '^ ■*. ''i '^ 1 t^cot-. <»«l © © CM i-H OS t>r o fo o t>r CO t>^ "-H CO cm"©" rH t^ s OS •*^ eo 00 00-* t^oo © eo US ©©© rH r»< OS t>- 05 © 00 00 OS lO X t^ CO © i ^ in" IN CO eo g . © 00 CM CM rH CM •* 00 OS eo IN ^ CO CO "5 © rt © rH oq_ 00_ qoq (N to IC t^ lO* (N rH 00 ^ ss •* 1© CM TjT rH (C ©" CO ;:? to 00 O N (N iC OS «©eo «U5 © OS CO IN © ■* © 00 i -^--5'^' ©" ©" ■*" •^ § 00©«MOOOO(NOO(N Tjtu5t-»©eot>-©50© © ■* IN O 00 ©MCO ^ S§g^ s? T CM CM O © CM CO 00 ■*. ^. 00 ^ Os" cm" ■* IN 1> i-T C^ -H IN* CO iC t>r lO ^"«5"C0" f Mi^ tC id OS^OS(NiOr-iC0-*00 ::'5:r?5§ © ■^ 05 O N IN 'H CO 00 -H (N th ©"^S © b> "I Os"« (N THINrH N « Tt*" CO CO id rH •* © ©■^tOOOINCM-*©-* ©©■><<©© 00 © o 00 oo CM •* ■* o O 00 11 ■ »0_ « rH "* IN >0_ •* rH Jo5__co OS © 00 © CM t>. © ^ II Tt* C> CO 00 w Tjr tC-T OS* TjT oo" tCcM (m" os" © t^TtC §§ SSS'^'gf t^ ©" ococor^cMiN-^ooco CM 00 CO CO rH S^S o © r^ 05 OSININrHC0CO.-HeO00 CM CM — 1 rH ^ COrH rH "^ « 2 '^ --"%" cm" cq ■*" CO ^ '^ ^ § lllglll © rH © 00 O >/3 © CO ©©oo©Soo t>. CM QQ CO ■* 00 Tl* CO o©t^ © © CM 00 U5 00 © © t^ T}< -H CO © q ic Tj<_ 00 CM »o eo rHOSlOrJtrHOOO lo" cm" oi' ©" o" TfTT^© CM © CO 00 CO rH s (N -^fOOCOrH-Ht^t^ rH T*l CM CM CM r^ OOrH t^rHCOTjH CM© OS (N O^t^iOiCtO© CM IN rH © rH CM CO -H (N lO IN 1-t (N TjT CO t« IN ■<}( CM © rHTHOSUjTjtOt^COOO O lO CO CO IC rH CO >0 -H © C» C* Tt< CM ■* "oo" iC ■>i><(N50-OOS r- Tt ■* iO rH r--* m 00 q rH CM Tf! M N © CO -T lo t-T co" Qo" co" lo TtT os" ©" ©" ©" CO »o" oo" ©" ■*" ©" oo" ©" eo" Tj<* TfT § •*" COTjtiOOSlNrttOOOt^ (N 00 (N M M © CO Tjj^ CM ©rH © t>. 00©© eo ■* CM i^ rt ■* s t^ OS CD 00 C^ lO T-< CM C4 00 ■. © t^ CO o "oo" •* g •* '^. «i CM-* 00 CO lO CO © 00 h^t>^odeo"rHco"ooco«o «SSK| ©" t>." -" O" -h" 1 1 s t^ iNcocooob-ooeo eo_ eo t^. M .-<_ ic p5 t>. NCM© t^ lO CO t^ 00 ^. o eo -^"tj*" 1-1 rH 50 CO TjT CM »o 1 '^ © S eo 1 o . • •1 ■ a i! as o -a e. *o£ fflOE- ooo s c c j < 1 a. E 1 i ■1! s 1? • a II IJII mbroideries ats ... . netted hemp , emp . . . . :aguey . . . WWMWSS .2 H II 462 ECONOMIC CONDITIONS H CO o Tj< X O X CD ox (NXCOOXO COX x«o coo 1 00 ic —1 o> Oi ^ t- t^ lO 05 i« X CO 1-1 CO coxxc5 1 q(Nqi* Oi -< M «0 CS 00 CO ©_ 00 CO CO CO 1-H t^_ CO ■* X s 00 CO* to O" rf ■*■■ rH Ot^ lOCO M -i 10 l> ci IN IN 05 1*" "5 b. X 1* OS r- (NiOOOXX t-X 1-t .-H 1>;M M lO CO T«*CC q M ■* Ttl rH CO (N lO •-T (N rHrH ■^" O iM «* X (N 00 00 rf CO CO Xt^rHOSXO t^COt^ M ■* X — 1 CO !N -H 03 r^ t^ O IC tH COCOOSO o ■*. t "?, '*. "*. ■*. "^^ ■* <» 00 -H (^ 00 t^" i-Ti-T CO "i "^^ "^ C?. — CO iC t^ X oq rH q OS* CO CO of X* CO CO en* 0* 00 t>." X* o rt rH (N (N 00 O CO ■* lOiOTHCDOSt^ TJIOSX 05Tf< IO05 rM W 00 0> ■* ,-1 CD CO X (N (Nco-^ocoos eocoio <35 CO CO »C «-r -* ^ -CO 0- H '-< 8g??S?S?2S o CO (N C00it^ N O OJ ■* t, t- c^ CO X XOCOXCOX COCOX C3S OS OJ CO ,-4 tC CO O CO 05 CO* (N CO OS*C 1> 00 0 CO COCOCOOCOCO 050SO C0-5oSrH 1-1 CO X CSj_ lO IN 05_ 00 00 CO rH l> X CO IN >OC0t^ rH CO X t^ rt •^ rH '~* rt rH c.- rH rH ■r lO -H* o" 00* t-T rt" CO* ion 00 X* TjH* OS* 10" 00 0" CO* ■** CO rH IN CO s CD CO CO O 05 rt !N t~ OJ COCDOrHINX >OCOCO Sg{:S CO O lO t-- q CC IC 1^ •<1< CO ■^ 00 rH lO 0_ t^ CO o OS xt- lOifXb-r^-* t^ior^ CO Tf 10 CO s O" CO CO* 05* "O cq* 00* CO* t^ OS t-T OS* CO ■*" N-" IN di CO* (N* ■*" rH* CO* t^ CO 00 CO lO IN CD OJ Ttl tOSCCOSCOrH COININ rt Tt<05Tt< IN 00 o OSrH ■*-*cOCO(N<3s ■<}.__ b- -H x_ CO CO o CO "O CO^ ^ IC OS* 03* O IN* oT lO tsTco CO t>^ rH* rH* OS* 00 00 rH* -: 0" 05* rH* 05 05 i-H lO CO lO O -H i-H CO 05 CO O 05 o XX •^ 10 t-OrHW»0^ COOSCO rji OJ CO "5 '^ ^.qxcDiNq It CO CD OJ rH t^ CD crJ IN .__ o COrH CO OX X r-llO X b-_ OI_ t-_ IN M O -1 05 rH lO CO (N CO »o 1-^ CO -^ ej CO t^ U5 OJ IC g ■* X ic ^^ CO CO X 05 05 COt-OCO-*^ r^JlOX 1-1 CO 05 lO X X o 1*1 10 xoo5x->it rH-*CO ^0010 ■ 05 IN ■* 05 X IN t^ X < CO'^lCrHlJ<'«* XrHTfl ??J?S5. 00 CO t-. C0_ C^__ 05_ IC o CO ■* M TJ5 ^ X t>-_ CO M O ■<*<* X* -H* X* CO UJ lO OS CO IH* of (N 00 00 CO Cft OS CO Tj<*(N05 t-^ 5i IN CO OS -H CSl CO -H IN ;s§ ^Sg^nSS 2S5S OJrHCOTt* »o t^ OJ OJ t^ -H* CD*-; CO co^- X ^* T^»OrH*rH* o 1 • I ::i::: 1=::: •0 d ' " " i a I,'- a . 1 1 esof . esof . ilous sto it . . la ware s d H a "5 a other printed manufactures ir . . . . dstuffs . . . 2 • s ■ > >> ■ id manufacturi d manufacturi and other prec ations of, unsc tone, and chic ibers, vegetable, ai grasses, and manufaci Ish and flsh products . rults and nuts . . . lass and glassware . . J< s ^•d-o g S E *i 05 . 5 q 03 *2 in . :z; grlcultu arabao ther cat ooks ani rass. ani Tieat flc ther bre s o a s 58 ill hemical clnes oal . ocoa or offee opper, a otton, a lamond and Im arthen, ggs . 1 JiNlNO-*O00OO(N^ lO 05 rH 00 o 'H oq s^ » (>._ 03 W t>r in" •*" O 05 iC to O 00 q ■*_ 00 00 ■* 00 to >0 05 00 00 CO M "S ■* -H hT ic 00 lO -< OOOtxt^'O'^tOWM'-^OOW .Hir50^iNe<5i-t(Nr-it>-o^oo 0- UJ to CO o ■ o o CO t-T 00 ■*" ■<}*' I ^«• Tt< oi ^ 00 CO 05 I h- 05 ^ M 00 to lO OQOOI osot^ooooco-Htocor^iot^ C^INtOt^iNi-iiNiOrtOOiOOtO i^(>t>.IN05l0 1>0 »0 lO h-' co" 00* IC m" o" 'ij^" t-" Oj" 0000'CCOtO(NO500O3CvIO5 COi-HCOOOtOO'-iiN'-i'C-'f OO—i-^iMCvitbiO'Ot^OlNOf" 00 -I Tf rl (N lO iC5»OCO-*iN(NtO00 CO rt cDO00O00T}<-tOCOTj't>''-i !>. M ^ 00 ""l <^ <^, ^. t^ '3^. ^. O^otoodiNorcotococo'ci - ■■ - 00 c r ' t^ lO »o t^ IN > OONOOOOOOS^OOOOOi OOO-HC^OOCOTfOO^lOCOl (N t^ O CO t» "__ 0_ ■* 00 Ttt^ O I rt" lO* t>r tC oo" -^ -H O "5 of rt* < 0>0-H(MiO-0 O O N -H 00 00 oT t>r to" to !N o to" Ol" t>^ oo" (>.M(NOO(N05C000tDC0 >005!N-HTHTj*" t>r 05 CvT of rH tC tC 03* t>^ tH .^ f." rHiO(Nt^tOOSlN'-i'0(N-*>OOS INeOCOtOt^t^t^(OiOCO"5tO_ O tO_ O CO 00 O" t>^ to lO" (N to" t-" n" t-" TtT ■*" lo" t^iotOrHeocoo5tooooort i-i lO tO_^ 05 !-<_«>• (N rH iO_ iO_ CO lO^ ■* rH CO CO CO (N e^J rH rH to .M (N 00 O 0-* "3 0> t^ Ol Ot>-iO (NCON'O'^NiNOO'-HrH C003-*Ot^0005COSOrtOt0iO00C0.* CO ' t^Tjit^t^t^ooto-Hiot^to .HINt^COOOOCOOSNINM t-. O ■*_ CO TiH^ 05_ t^_ to "5 IN oq_ ^•-Ttoos-Hiooiio^-^i-ios OtOiN^t^OO-^INCO^QO t>. CO "5^ »H M 03_ >H 0_^ tO_^ "5 t^ -Tt^riNofrH oJlN r^ COCO(NC005t^(NC>^rt<0{0 COCOTjiiOrtt^-^QN'005 ''i ''?. '^ ''I '?,■*. ^ R *i '-'- "l 00 to CO 05 o 00 CO 05 t>r - ■ 1 to CO o "" ■■ " ^t^ to N. CO ' IN 1^ >0 I CO O IN . . (N 05_ ^_^ 00 00 0)_ C0_ CO 00 t^ i iNcoior^Oos^jTco-^cooo ooo5iOTt<>oiNeor^'Htor^ to 00 00 IN 00_ rH 1-1 to 05 to t> i-n'rHCOoTcO of(N CO T}< T-l to to to ■ 05 00 00 O M< 03 IN CO O Ol lO 0» CO to "5 lO Tjt »0 'J* IN O M P CO lO (N 05 rttOt^tOCOCOtOiNOOOOOO t^ OOrHOO!NtD05-HCOOOO'*'0500 CO -1 (^ 05 O lO O i-H 05 (N N. OJ CO 00 ■* lO O 1 1-^ <^1 "^ '^. '-^. (O 5^ ■* 1-h" IN ■<1<" ■* ■* (N of CO -HCO Tt< iO»OfOt^COtOT}<05tO O500 to tOCOCOIN05000(OCO coto to iN-HTj X H h-I « ^ H 2 H J -, i O p « 51 H 10 -< 5 « H > -< Qi M t4 c5« (N 00 »C CO « CO •^ lO ■^ iM IC CO I I t>. fH 1-4 CO CO «0 t- Tt< b- O rt Tt< eo (N CO "5 CO OJ ■*■ O CO I I I I I I CO O CO >0 CO ■* O ■* ?D CO CO «0 lO lO CO CO OJ CO O iCi O —I - o o r>- 2 s eg g e £ s ^ fl ^ 5 = ■* tJ4 t^ lo o •a^ IN rt^ lO CO CO O ■<* CO i-J^ »C CO 00 00 CO (N CO "5 (N (N CO tH lO lO CO CD 00 CO CO IC 05 rf CO" rH CO TjT CO S g 2 e :§ :§ ^ ^ •^ -^ is is CO 00 »C Ol 00 O 00 00 l^ C» t>. OS C o +* St- ::= ^ § ^ Sl^ 0,oX>^j33fl3 0030ai-(SeJ O O H H O 0^ m ■rs P S^ o o O 00 CO Hi iu CO 1-1 CO > *-■ 31 §1 w S^ o •Sis'? 470 ECONOMIC CONDITIONS TABLE XVII. FACTORIES AND INDUSTRIAL ESTABLISH- MENTS IN THE CITY OF MANILA IN 1915 ' (Source : Bureau of Labor) Factories and Establish- ments NUM- Value op Output in 1915 Number of Laborers Engaged Male Female Chil- dren under sixteen years Total Aver- age Daily Hours op Labor Aerated water . . . Bacon Bed Bread, biscuit, and sweetmeat bakeries . Breweries Button Candle Candy Caramel Carpentry shops . . Carriage shops and iron works .... Chocolate .... Cigar and cigarette Coffee grinding mills . Comb Dried and smoked fish Drug Dyeing establishments Electric power plants . Fertilizer 2 . . . . Fish traps ^ . . . . Foundries, iron works and machine shops . Furniture Gas plants .... Hat and umbrella . . Ice plants .... Ink2 Line Machine shops, foun- dries and shipyards . Match Musical instruments . Oil 3 Preserved foodstuff 9 1 1 46 2 1 9 11 14 54 41 29 32 2 3 27 1 4 1 1 17 52 23 1 15 3 1 2 1 1 12 1 6 P248,460 12,000 112,288 1,603,079 1,745,000 759,821 366,513 756,646 224,011 153,123 318,305 11,777,591 15,400 13,131 689,614 15,754 1,536,457 4,061 4,955 549,734 744,518 243,998 1,429,671 221,684 692 12,979 512,866 374,000 16,795 189,208 20,000 136 5 25 615 196 180 46 131 89 147 268 99 4,961 4 7 120 11 19 214 8 52 425 304 89 316 84 1 4 325 123 24 21 15 16 3 3,465 1 448 1 149 100 55 3 31 3 30 155 5 28 615 232 200 46 131 89 147 269 102 ,874 4 7 128 14 19 214 8 52 425 307 89 496 84 1 4 328 253 24 21 70 * Latest available data. ^ without definite hours. » In 1918 there were 18 oil factories. APPENDIX II TABLE XVII.— (Cmtinued) 471 Factories and Establish- ments Printing and binding of books .... Rice mills .... Rope Sails constructing . . Saw-mills Sculpture and marble cutting shops . . Shoes, slippers and other leather goods . Soap Soup-paste and sauce . Spinneiy Tanneries .... Tile and brick . . . Tin shops .... Trunk, harness and other leather goods . Weaving Wheel Wine and liquor dis- tilleries Total . . . . Num- ber 43 2 2 4 21 18 172 40 13 1 7 2 51 9 1 2 11 823 Value op Output in 1915 P633,171 1,141,608 106,000 27,578 1,584,937 74,603 1,328,987 1,023,378 163,859 22,400 272,184 66,977 299,113 192,927 214,000 10,349 2,490,561 34,324,986 Number op Laborers Engaged Male 617 59 78 13 636 93 800 143 86 12 37 50 118 120 105 5 160 12,196 Female 41 7 30 1 100 20 4.102 Chil- dren under sixteen years 19 27 1 583 Total 677 66 135 13 637 94 842 144 95 12 37 50 118 121 213 5 181 16,881 Aver- age Daily Hours OP Labor 8 13 8 9 9 9 8 8 9 9 10 8.5 9.5 9 11 1 Production of 20 saw-mills only. 2 Without definite hours. INDEX Abaca, 6, 7, 84-106, 190, 230, 246, 252, 253 ; new uses of, 103-104 Advance and debt system, 86, 119, 158, 228, 240-242, 247, 250, 308-309. See also Bonded debtors Agave fibers, 93, 164-166 Agricultural implements, of Negritos, 3; of Subanuns, 5; of mountain peoples, 9, 10 ; of Filipinos, 27, 38, 39, 41,70 Agricultural machinery, 29-32, 41-52, 202-206, 305 Agriculture, of Negritos, 3; of Suba- nuns, 5-6; of mountain peoples, 9- 17 ; of Filipinos, 25-317, 371, 447-452; location and character of, 178-186; advance in, 187-219, 422 Alcoholic beverages, of Subanuns, 6; of Filipinos, 11, 120, 289. See also Beverages Amusements, of Negritos, 4 ; of Suba- nuns, 8 ; of Filipinos, 295-299 Animals, 323-338. See also Work ani- mals Area, 220 Arrowroots, 75 Artesian wells, 192 Artisans, 379 Athletics, 297-299 Balance of trade, 395-398 Bananas, 76, 169, 170 Banks, 279, 384, 428-432 Barter, 1; of Negritos, '^i-, of Subanuns, 6-8 ; of Filipinos, 422-427 Beans, 12, 25, 66, 74, 75, 79-80 Beasts of burden, see Work animals Beetles, 113-114 Beriberi, 26 Beverages, of Subanuns, 6; of moun- tain peoples, 16-17 ; of Filipinos, 11 Bonded debtors, 247-250, 305-308 Bontoks, see Mountain peoples Bounty system, 129-132 Brokers, 85, 98, 158, 366-368, 371 Bud rot, 114, 115 Bugnos, 240 Busian system, see Rent Buyers, see Brokers By-product, 375-376 Caciquism, 23, 86, 267-270 - Calamities, 187-189 Camote, see Sweet potatoes Capital, 304, 383-385, 447 Capitalists, 46 Carabao, 323-324. See also Work ani- mals Carbohydrates, 79 Cassava, 75, 174 Catch, division of, 341 Cattle, 324-325 Champaca, 173 Chinese, i:36, 313, 314, 419-421 Citrous fruits, 169 Civilization, 21 Clearings, 202, 224. See also Kaingin Climate, 180-181 Clothing, of Negritos, 3 ; of Subanuns, 6; of mountain peoples, 12; of Fili- pinos, 241, 295 Coal, 444-445, 448-450 CockfightiHg, 296-298 Coconut, 107, 125, 246, 253 Coconut oil, 108 Coffee, 173-174, 199 Cogon grass, 5 Coir fiber, 107 Commerce, 22, 153-154, 392-440; of Negritos, 4; of Subanuiis, 8; of mountain peoples, 18; of Filipinos, 392-407, 446-447; domestic, 406-407. See also Barter Communal labor, see Group labor Contract labor, 227-231, 313-316 Co(")peration, 46, 229. See also Group labor Copra, 107-125 Corn, 5, 12, 25, 37, 64-73, 78 Cotton, 6, 7, 14, 199-200 Credit, 421, 428-432 Crop, division of, 242, 244-246, 252-253 Crops, cultivation of {by Subanuns, 5- 6; by mountain peoples, 9-10; by Filipinos, 26-27); diversity of, 78, 211-215; introdtiction of neto, 175; rotation of, 206 {by mountain peoples, 12, 71, 80) Cultivation of crops, by Subanuns, 5-6 ; by mountain peoples, 9-10; by Fili- pinos, 26-27 ; systems of, 226-261 Death rate, 285-286 Debt and debt systems, see Advance and debt system. Bonded debtors, Kasama system 473 474 ECo:s^OMic coNDiTio:^rs Disease, 291-294 Domestic animals, of Suhanuns, 6; of mountain peoples, 12; of Filipinos, 323-329 Domestic commerce, 406-407 Drouglit, 37, 40, 40, 69, 85, 115, 171, 189-197, 213 Dry farming, 190 Dry season, 26, 46, 49, 50, 75. See also Drought Education, 255-258, 268, 298, 301, 304. See also Industrial instruction Emigration, see Immigration Essential oils, 173 Estates, see Proprietary system Exchange, 392-440. -ir)3, 414-422 Meat supply, of Negritos, 2; of Saba- nuns, 6; of mountain peoples, 12; of Filipinos, 25, 66, 288-289, 333-336 Merchants, 22, 417-422; among moun- tain peoples, 18; among Filipinos^ 18, 34, 158, 371, 417-422 Metal work, of Subanuns, 7; of m,oun- tain peoples, 15, 16 Middle class, 261-262 Middlemen, see Brokers Migrations, of Negritos, 4; of Suba- nuns, 5-3; of mountain peoples, \A', of Filipinos, 28, 310-313, 361-364. See also Immigration Milk, 286 Millets, 75 Mining, bij Igorots, 17 ; brj Filipinos, 447, 448-449 Money, 22, 154, 424-428; of mountain peoples, 18 ; of Filipinos, 424-428 Monopoly, 97, 128, 153-156, 158; price fixed by, 433-434 Mountain agriculture, 9-10 Mountain peoples, 9-19, 276 Mulch, 190 Musical instruments, of Negritos, 4; of Subanuns, 8 National economy, 23 Negritos, 2-4, 21 Oranges, 168 Ornaments, of Negritos, 3-4 ; of Suba- nuns, 6, 8 Palm starches, 75, 78, 79 Parcels, size of, 185, 220-226, 232, 242, 441-446 Peasant proprietors, 231-235, 25(5-268, 284. See also Small farmers Peoples, primitive, 1-23 Pests, 41, 69, 70, 85, 113-114, 172, 174, 197-202 Pig, wild, 114, 171 Pineapples, 108, 169 Plantations, 86, 100. See also Labor Plow, 203 Population, density of, 77, 359-365 Pottery, of Negritos, 4 ; of Subanuns, 7; of mountain peoples, 16 Poultry, 283, 328-329 Power, 140, 372-375, 377-378, 444, 448- 450 Price, 32, 87-103, 119-123, 164, 171, 411, 432-434 Private ownership, see Land Production, systems of, 21-23; cost of, 41, 138; factors of, 244-240; division of, 392 ' Profit, 42, 153, 240-241, 421 Proprietary system, 226-231, 256-268 Protein, 25, 74, 79 Public lands, 262-264 Quality, increase in, 115-119, 152, 156- 162 Railroads, 120, 408, 411-412 Rainfall, 180 Rainy season, 26, 49, 50 Red weevil, 114 Rent, 235-2;i6, 244-246, 252-255, 277 Responsibility, 258, 259 Rhinoceros beetle, 113 Rice, 25-03, 68, 69, 70, 78, 206, 207, 213, 236, 244-245, 247, 276; cultivation of (by Subanuns, 5; by mountain peo- ples, 9-10; by Filipirios, 26-27, 40; see also Agricultural implements and Machinery) ; fermentation of, 6 ; as money, 18; food value of, 25-26; milling of, 32 ; threshing of, 32 ; con- sumption of, 34, 54-57; imports of, 34-40; short crops of, 40 (see also Drought) ; increase in production of, 40-52; yield of, 47; extensive culti- vation of, 48-52; price of, 53-57; situation of, in 1919, 62-56 ', future of, 56-57 Rice colonies, 51 Rice fields, of mountain peoples, 9-10; of Filipinos, 27 Rice harvest, among mountain peoples, 10; among Filipinos, 28, 42, 234, 310-313 Rinderpest, 37, 41, 330-336 Roads, 408, 410, 411 Rotation of crops, 206 ; by mountain peoples, 12, 71, 80 Rubber, 170-172 Sago, 174 Salt, 17 Sanitation, 283, 291-295 Savings, of Subanuns, 7 ; of Filipinos^ 2M, 281-282, 308-310, 3&4 476 ECONOMIC CONDITIONS Scattered holdings system, 251-255 Schools, 81 Seed, selection of, 44, 70, 208-211 Servants, see Labor and Bonded debtors Share systems, 237-268, 341 Shelter, of Negritos, ^', of Subanuns, 6; of mountain peoples, 14; of Fili- pinos, 241, 291-294 Silk, 172-173 Slaves, 128, 133, 248. See Bonded debtors and Kasama system Small farmers, 34, 85-86, 98, 156-159. See also Peasant proprietors and Tenants Soil, 178; exhaustion of, 206-208 Speculation, 171 Spinning, among Suhanuns, 7 ; among mountain peoples, 14 Standard of living, 286-301, 364 Starches, 174 Storage, see Granaries Subanuns, 5-9 Sugar, 16, 77, 126-149, 226-229, 245 Sweet potatoes, 9, 12, 74 Swine, 326-327 Takalanan, 241 Takipan, 241 Tapahan, 116 Taro, 75 Temperature, 180-181 Tenants, 225, 226, 236-255. See also Small farmers and Share system Tenure, see Land tenure Terkiaan, 241 Tobacco, 5, 66, 77, 150-163, 231 Tobacco monopoly, 37 Town economy, primitive, 22 Towns. 22 Trade, see Barter and Commerce Traders, 422-425 ; wandering, 18, 422- 425 Transportation, 382-383, 408-414; of Suhanuns, 8; of mountain peoples, 16, 18; of Filipinos, 41, 87, 181, 408- 414; centers of, 414-417. See also Railroads, Roads, Waterways Tuba, 119 Turnuhans, 280-283 Typhoons, 115, 171, 180, 187-189, 194 Uang, see Rhinoceros beetle Vegetables, 77, 79-82, 230 Village labor, 275-284 Volcanoes, 188-189 Wages, 28, 42, 227, 231, 246-247 Wandering traders, 18, 422-424 Wants, diversified, 20 r\ Waste, 165. See also By-product Vy Water 190 Waterways, 412, 414-417 Wealth, 20-23, 154 ; for ostentation, 4, 6, 8, 20, 383-386 ; of Negritos, 4 ; of Subanuns, 8; distribution of, 22-23 {by Negritos, 2, 21; among mountain peoples, 23) Weaving (loom), among Subanuns,! ', among mountain peoples, 14; among Filipinos, 84, 368 Work animals, among Subanuns, 8; among mountain peoples, 12, 18;' among Filipinos, 37, 40-41, 244, 245, 246, 257-264, 323-326, 329-336 Yams, 75. 78 1 RETURN CIRCULATION DEPARTMENT TO— ^ 202 Main Library LOAN PERIOD 1 HOME USE 2 : 3 4 5 ( b ALL BOOKS MAY BE RECALLED AFTER 7 DAYS Renewals and Recharges may be made 4 days prior to the due date. 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