ECONOMIC CONDITIONS IN 1830. 33 
FRANCISCO RAMON DE VILLALOBOS. 
On December 17, 1828, new regulations were issued by Don Mariano 
Ricafort, the captain-general of the Philippines, for the government 
of the Marianne Islands; and Don Francisco Ramon de Villalobos, 
captain in the royal corps of artillery, was sent thither to study the 
condition of affairs in that group, with a view of reporting upon them 
and making such suggestions as he might see fit for the improvement 
of the islands and the people. Instead of sending his correspondence 
through the governor, he communicated directly with the captain- 
general of the Philippines, as may be seen by his letter books in the 
archives at Agana. 
In the new regulations Article II provided for the absolute liberty 
of trade and for the abolishing of dues paid by vessels arriving at the 
islands. The object of this was to stimulate the application and the 
industry of the natives and inhabitants of the Marianne Islands, so 
that they might attain greater prosperity, even to such an extent, per- 
haps, as to become self-supporting. Villalobos belonged to that school 
of economists who believe ** wealth” and ‘* money ” to be synonymous 
terms, estimating the wealth of a country by the amount of coin it 
contains, and holding that trade should be restrained in such a manner 
as to prevent money from being sent out of the country. He writes 
to the captain-general as follows: 
The lack of circulation of coin is the cause of the very small interior and exterior 
trade of this territory, which consists almost entirely in bartering certain goods for 
others, with the countless difficulties arising therefrom which caused the establish- 
ment of money by our remote ancestors. This same cause has prevented the natives 
from dedicating themselves exclusively to one branch of industry or trade, each 
family finding itself obliged to engage in all occupations according to its needs, with 
the consequent imperfection and scarcity resulting therefrom, and, finally, as it is 
not possible for a single person or family to procure for itself as many articles and 
resources as are necessary for its nourishment, clothing, and conveniences, these 
natives have lacked the advantages enjoyed by other countries, in which the free 
circulation of money secures for them everything needful. 
It is evident, then, in order that the Marianne Islands may issue from so sad a 
plight, it is indispensable that there should be in them an abundance of money, and 
as long as this is not the case, whether, as in the former system, little comes in and 
soon goes out, or whether great sums come in and go out immediately, as will hap- 
pen in the present system, the evil will always be the same or nearly the same. 
At present there are in the Marianne Islands no articles of export to attract the 
attention of the foreigner but some edibles or beverages made from the coconut 
palm. Freedom of trade once established, it would introduce many articles, and the 
few things produced by the country would not suffice to pay for them, so that the 
difference would have to be made good in money. From this it would follow that 
money paid for salaries would remain here only temporarily; the country would be 
merely a channel through which the money from the royal treasury would flow to 
foreign parts with no hope of its return. The Mariannes would be deprived of the 
spirit of agriculture and industry, which I think ought, in a certain degree, to come 
before commerce, and the islands would be no less poverty stricken than they have 
been up to the present time. 
9773—05——_3 
