CHAPTER 2

THE PHILIPPINES IN THE NINETEENTH CENTURY AS RIZAL’S CONTEXT

1. Economic:

• End of the Galleon Trade- this trade is between the Philippines and Mexico.
250,000 pesos worth of goods to be send to Mexico and 500,000 pesos worth of
goods to be send from Mexico to the Manila. In the nineteenth century when
commercial liberty was adopted as a European policy, the monopolistic galleon
trade declined. In 1811, the last galleon from Manila sailed for Acapulco, Mexico,
and the government’s monopoly of galleon trade came to an end.The trade only
seved the interest of the Spaish officials in the Philippines.

• Opening of the Suez Canal – the Suez Canal was opened in 1869. this
resulted on the shorter route and travel time between Spain and the
Philippines.Many Spaniards with progressive ideas migrated to the Philippines.

• Opening of ports to world trade- different ports all over the country were
opened to foreign trade: 1855, the ports of Iloilo, Zamboanga, and Sual. 1860,
Cebu fort was opened. 1873, tacloban and Legazpi ports were opened. The
opening of this ports increased the value or exports
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Comparison of the new route from the old route upon the opening of the Suez
Canal

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• Rise of the expert crop economy- Nicholas Loney, introduced the first modern
machinery that converted sugar cane into refined sugar. Governor Basco founded
the Economic Society of Friends of the Country in 1781 to efffectively implement an
economic policy in the colony. This was according to the King’s decree which gave
him the right to establish a society “ of selected persons who are capable enough to
produce useful ideas “..

• Monopolies- Governor Basco established government monopolies in 1782. the

most popular among which was the tobacco monopoly. The monopolies increased
the revenue of the government but it had a bad effects on the Filipinos.

2. SOCIAL : EDUCATION, RISE OF CHINESE MESTIZO, RISE OF THE INQUILINO

• EDUCATION: The Spaniards in the Philippines founded many colleges for men and
women which were opened only to Spaniards and the Spanish mestizos not until the
second half of the nineteenth century these colleges admitted natives. As a result, a
good number of those children became lawyers, physicians, pharmacist, teachers,
land surveyors, and merchants.