ECONOMIC CONDITIONS IN 1830. 33 



FRANCISCO RAMON DE VILLALOBOS. 



On December IT, 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 artillerj^, 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 



