Economic Institution
Economic Institution
During Spanish Rule
During Spanish Rule
Part 1:
Manila-Acapulco Galleon
Trade
The Manila-Acapulco
Galleon Trade was a
trade between Manila,
Philippines and Acapulco
in Mexico. The trade took
place in a big boat called
a Galleon.
First, a short video-clip
Of the Manila-Acapulco
Galleon Trade:
This is a Picture of a Spanish Galleon
The voyage between
these two countries
lasted approximately 200
days. Through the Manila
Galleons, the Americas
and the Asian worlds
were linked.
To have access to this
trade, a ticket called a
“boleta” was needed, the
cost of which was P250.
The trade benefited only
a small group of privilege
Spaniards, the
government, church
officials and some
Spanish residents in
Manila.
Those who participated
in the trade profited
much but in return, the
agriculture and the care
for resources were
neglected because those
who participated went to
Manila often and
neglected their jobs, they
also required more
workers or ‘polistas’ in
the shipyards to
construct the Galleons.
Also the funds or “Obras
Pias” that was donated
by the rich people for
charity were borrowed
by some of the officials
for the trade but were
never returned.
Tempted by the lucrative
trade, Chinese immigrants
converged in Binondo,
Manila as early as 1637. By
1687, retail and small credit
business is flourishing and
under the control of the
Chinese Mestizos.
The Galleon trade lasted
about 200 years. When
the trade suffered losses,
such as when the
Galleons sank because of
overloading and the ships
were often raided by
English and Dutch
Pirates. The king of spain
ordered the abolition of
the galleon trade.
POSITIVE EFFECTS OF
THE GALLEON TRADE:
 1. There were many
goods and supplies being
brought to Manila.
 2. Intercultural
exchanges between the
Philippines and
Americans. Symbolized
by the Mexican made
Virgin of Antipolo, the
patroness saint of sailors.
 3. The trade brought
many valuable flora and
fauna into the
Philippines: avocado,
guava, papaya, pineapple,
horses and cattle.
 4. The trade also
brought to the
Philippines the moromoro, moriones & the
Black Nazarene of
Quiapo.
 5. Also a lot of
elements of our language
are of Spanish origins.
Ex. Tsokolate, tiyangge.
NEGATIVE EFFECTS OF
THE GALLEON TRADE:
1. Galleon construction
conflicted with the
planting and harvesting
schedules.
2. The growth of
Philippine agriculture
was retarded because the
money and gains were
channelled to the galleon
trade.
3. Forced labor by the
polistas ignited the
Sumodoy revolt and the
Pampanga revolt.
Part 2:
Royal Company of the
Philippines
The Royal Company of
the Philippines was
created in 1785 by the
Spaniard: Charles III to
enhance trade between
Spain and the
Philippines.
To help the company, the
king granted it some
rights:
•Usage of the Spanish
Navy flag in its vehicles.
•Right to buy equipment
at government prices
•Non-payment of taxes
for it’s exports.
•Right for its ships to
travel to all ports in
Manila.
The company was also
granted exclusive
monopoly of bringing to
Manila Chinese and
Indian goods and
shipping them directly to
Spain.
It was stiffly objected by
the Dutch and English
who saw it as a direct
attack on their trade of
Asian goods. It was also
opposed by the Galleon
trade who saw it as
competition.
The rivalry between the
company and the galleon
trade resulted in political
unrest in the Philippines.
For the Spaniards, the
company helped the early
growth of agriculture,
especially Philippine
grown products like
indigo, sugar, coffee,
spices and textiles. To the
Filipinos, they were
forced to plant more
crops for exports from
which they did not
benefitted at all.
PURPOSE:
•To enhance trade,
agriculture and other
industries in the
Philippines.
• To unite American and
Asian commerce.
•The company offered
foreign capital to the
country to help it
develop its natural
resources.
Part 3:
Royal Economic Society
Of friends
The Spaniard Jose de
Basco y Vargas followed
the royal order by
forming a society of
intellectuals capable of
producing new and
useful ideas.
He formed the Royal
Economic Society of
Friends, composed of
leading men in business,
industry and the
professions, whom he
prodded to exploit the
island’s
(Philippines) natural
bounties.
Basco introduced the
Plan General Economico
to make the economy
self-sufficient from the
annual Mexican subsidy.
The plan included
income-generating
monopolies of tobacco,
areca nut, spirituous
liquors and explosives.
Exploiting the country’s
natural resources
through agriculture,
commerce and industry,
Basco gave incentives by
awarding cash prizes and
medals of recognition for
excellence in
farming indigo, spices,
cotton, cultivating
mulberry for silk
production, bee-keeping,
mining, inventions, the
arts and sciences.
The Society offered local
and foreign scholarships
and training grants and
an endowment fund for a
professional chair in
agriculture, and
established an academy
of design.
It is also credited for the
carabao ban in 1782, the
formation of silversmiths
and gold beaters guild
and the construction of
the first papermill in the
Philippines in 1825.
Purpose:
To make the economy of
the Philippines selfsufficient from the
annual subsidy from
Spain.
Part 4:
Answering of the guide
questions:
Part 1:
What were the effects of
these imposed
institutions by the
Spaniards?
•These institutions
increased and exposed
the Philippines to global
trade and new products
but brought hardships to
the Filipino people.
•The growth of
Philippine
agriculture was at
a standstill
because resources
and labor were
diverted to these
institutions.
•The Management of
local economy also
suffered.
Part 2:
What was the reaction
of the Filipinos to these
imposed institutions by
the Spaniards?
•Because of these
institutions, Filipinos
were more miserable.
They were forced to do
labor which did were not
beneficial to them but to
the Spaniards.
•Some of the provincial
revolts are results of
these unfair practice.
Part 3:
Why do you think
the Spaniards
imposed these
kinds of
institutions in the
Philippines?
. The Spaniards wanted
to effect progress in the
Philippines.
•The Spaniards wanted to
make the Philippines
self-sufficient.
•The Spaniards also
colonized the Philippines
for the enrichment and
expansion of the Spanish
empire.
By: Group Tausugs
Thanks for Listening!!