58 THE ECONOMIC CONDITION OF THE PHILIPPINES 



1871 he relentlessly exposed the condition of affairs under the 

 monopoly and strongly advised its abolition, unless the gov- 

 ernment wished to destro}' tobacco planting altogether and 

 bring about the absolute ruin of the planters, who were living 

 in the greatest misery. Furthermore, he showed that the neces- 

 sary new buildings and plant in the factories would pretty well 

 absorb all the profit of the ensuing year. This very competent 

 and energetic man could not carry his wishes into effect at the 

 time; but ten years later, in conjunction with the colonial min- 

 ister, Fernando de Leon y Castillo, he was able to bring about 

 the abolition of the monopoly, and on July 1, 1882, the plan- 

 ters were freed from their chains. On January 1, 1883, the free 

 manufacture of tobacco was also allowed. The rate of duty was, 

 however, raised, tobacco and cigars paying an export duty, while 

 the import duty was raised 50 per cent. In the first place, the 

 treasury bonds had to be redeemed, and this was clone by means 

 of auctions, whereby $150,000 was redeemed monthly, prece- 

 dence being given to those holders who offered their bonds at 

 the lowest rate. The government had even the impudence to 

 declare that demands for more than 80 per cent would not be 

 regarded. The first bondholders were ready to take 45 and 55 

 per cent, but it was soon found that a number of holders were 

 prepared to take vigorous steps, refusing to accept less than 80 

 per cent. This caused the government to hasten the redemp- 

 tion, and at the close it had cleared a sum of two and one-half 

 million dollars. 



Since January 1, 1883, various cigar factories have been estab- 

 lished, of which, however, only a few turn out a really first-class 

 article. The cigars manufactured by many Chinese factories 

 and in the homes of the natives are of very inferior qualit}\ 



A new tariff was introduced in 1891, which professed to be 

 based upon a duty of 20 per cent. In reality, however, nearly 

 all articles yielded more, some even yielding over 100 per cent on 

 their value. Then there were various additional fees to pay on 

 imports, and the export fees were also several times changed. 

 Today the practice is as follows : To the import tariff, which in 

 the case of some articles is increased by 20 per cent, are added 

 harbor dues, amounting to 10 per cent and 8 per cent of the 

 value of the goods, which is fixed by law. Spanish goods pay 

 only the harbor dues and the 8 per cent of the value, thus get- 

 ting upon the market to the disadvantage of other better and 

 originally cheaper produce. 



