1|

Module 3: The Nineteenth Century Philippine Economy, Society,

Chinese Mestizos and the Agrarian Dispute

Objectives
At the end of the module, you should be able to:

1. Locate Rizal’s life in the Philippines within the wider context of the developments in the
nineteenth century;
2. Explain the important role of the Chinese mestizos and their ranks within the changing
Philippine economy and society;
3. Explain how the Hacienda de Calamba issue serves as an exemplary illusion of agrarian
conflicts in the late nineteenth century; and,
4. Discuss the interplay of several factors that contributed to the changing landscape of Philippine
society and economy.

Introduction

This module discusses the changing landscape of the Philippine economy in the nineteenth century and
describe how these developments had an impact in the society in which Rizal grew up, matured, and eventually
was martyred. It will begin by looking at the tremendous economic development starting in the late eighteenth
century as a product of multiple factors. The module will then map the effects of economic developments on
Spanish policies on education, social life, and the people of the Philippines. The role of an important population,
the Chinese mestizos, in Philippine life and economy will also be noted. These Chinese mestizos will be in the
context of the changing social stratification in the Philippines.

Moreover, this module will also discuss the dispute that happened between Rizal’s family and the
Dominicans over the Hacienda de Calamba. This will also attempt to how the historical context behind this
incident that played a pivotal role in Rizal’s life.

Activity
Below are the pictures that show how the Philippine society looked like in the 19th century. Analyze
each picture and decide whether it is economic, political, religious or cultural aspect and provide a brief
explanation. Write your answer on the space provided.

1. 3.

2. 4.

Module III- The Nineteenth Century Philippine Economy, Society, Chinese Mestizos, and the Agrarian Dispute
2|

No Aspect Explanation
1.

2.

3.

4.

Analysis
Answer the following questions based on the activity.

1. Describe the social stratification of the 19 th Century Philippines.

_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________

2. How different is the social stratification of the 19th Century Philippines to the present-day Philippines?
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________

Abstraction

Many scholars consider the nineteenth century as an era of profound change in the Philippines, during this
period, vast economic, political, social, and cultural currents were felt. Change, however, had its initial ripples in the
previous century. By the late eighteenth century, the monarchy in Spain experienced a dynastic shift from the Habsburgs
to the Bourbons. Under the new leadership, Spain recalibrated colonial policies that would affect the Philippines. With
the goal of invigorating the profitability of the colonies like the Philippines, Bourbon policies and reforms were carried
out. The first governor-general to the Philippines under the Bourbon mandate was José de Basco y Vargas who arrived
in the Philippines in 1778.

By the time Basco arrived, the Galleon Trade, the main economic institution existing in the Philippines, was
already a losing enterprise. As Spain sought ways to salvage the dwindling economy of the empire, the global wave of
industrialization became a silver lining. As many imperial powers in Europe and the West were undergoing

Module III- The Nineteenth Century Philippine Economy, Society, Chinese Mestizos, and the Agrarian Dispute
3|

industrialization, an increased demand for raw materials presented an opportunity to look into the agricultural potential
of the Philippines.

Thus, it was viewed that the transformation of the economy towards being export oriented, harnessing the
agricultural products that could be yielded from the archipelago, was the way to go.

To better facilitate the envisioned reorientation of the economy, Basco established the Royal Philippine
Company in 1785 to finance agricultural projects and manage the new trade being established between the Philippines
and Spain (and Europe) as well as other Asian markets. These changes, however, were met with lukewarm reception,
Resistance also came from various sectors like the Catholic Church that was not receptive of the labor realignments
entailed by the planned reforms, and traders that were still holding on to the Gallon 1rade. It also did not help that the
Royal Philippine Company was fraught with issues of mismanagement and corruption. As 5asco pushed for the reforms,
he lifted a ban on Chinese merchants that reinvigorated internal trade; initialized the development of cash crop farms;
relaxed certain policies that allowed the gradual opening of Manila to foreign markets; and established the Tobacco
Monopoly to maximize the production of this export good.

Global events continued to affect the Philippines at the beginning of the nineteenth century. By 1810, the
Mexican War of Independence rattled the Spanish empire, as it would eventually lead to the loss of the precious Latin
American colonies. With this came the eventual end of the Galleon Trade which became a concern in the Philippines.
As the Philippine economy hung in the balance, policies were recalibrated and with the eventual closing of the Royal
Philippine Company, Manila was opened to world trade by 1834. As a result, foreign merchants and traders came and
eventually resided in Manila and took over the role of financing and facilitating the burgeoning agricultural cash crop,
export-oriented, economy Some of the major investments came from British and American traders that set up merchant
houses in Manila.

The rapid development of the economy began to flow Philippines through cash crops. By the first half of the
19th Century, majority of the exports of the Philippines came from cash crops like tobacco, sugar, cotton, indigo, abaca,
and coffee.

The Chinese and Chinese Mestizos

The sectors that greatly benefited from the changing economy were the Chinese and the Chinese mestizos. Since
pre-colonial times, the natives of the Philippines had had trade relations with the Chinese. During the height of the
Galleon Trade, it was also Chinese products that comprised most the goods being traded. The influx of Chinese
settlements in the Philippines made the Spaniards suspicious of the Chines. These feelings led to stringent state policies
towards the sangley ranging from higher taxes, the restriction of movement with the establishment of the Chinese
enclave (the Parian), to actual policies of expulsion.

The Chinese, however, proved to be "necessary outsiders" in Philippine colonial economy and society. Although
the Spaniards were wary of the Chinese, they realized the importance that the latter played in sustaining the economy.
From the goods loaded on the galleons to the development of retail trade, the Chinese enlivened the economy. Eventually
and gradually, they became integrated into colonial society, giving rise to intermarriages with indio that gave birth to
Chinese mestizos. The Chinese mestizos assumed an important role in the economy all throughout the Spanish colonial
period. They influenced the changing economy in the nineteenth century by purchasing land, accumulating wealth and
influence.

Impact on Life in the Colony

The economic developments, as mentioned, precipitated social, political, and cultural developments as well. For
example, the new economy demanded a more literate population to address the rising need for a more professionalized
workforce to man the trading activities in Manila and other centers. This demand compelled the issuance of the colonial
government order in 1836 that required all towns to set up primary schools to teach the population how to read and
write. It eventually led to the passage of an education decree in 1863 that mandated free primary education. Eventually,

Module III- The Nineteenth Century Philippine Economy, Society, Chinese Mestizos, and the Agrarian Dispute
4|

the nineteenth century also gave birth to many schools that addressed the growing demand for more professionals.
Schools like Ateneo Municipal were established during this time. The complex nature of the developing economy also
allowed the government to intensify bureaucratization and to streamline colonial governance.

Renegotiating Social Stratification

The Philippine society felt the impact of the developing economy. As a result, social relations underwent
redefinitions and the changing dynamics brought about a renegotiation of social stratification. With the growing
relevance of the mestizo population, new lines were drawn with the following strata:

Peninsular Pure-blooded Spaniard born in the Iberian

peninsula (i.e., Spain)
Insular Pure-blooded Spaniard born in the
Philippines
Mestizo Born of mixed parentage, a mestizo can be:
Spanish mestizo – one parent is Spanish, yje
other is a native, or
Chinese mestizo – one parent is Chinese, the
other is a native
Principalia Wealthy pure-blooded native supposedly
descended from the kadatoan class
Chino Infiel Non-Catholic pure-blooded Chinese

As the Spaniards lost economic power in the nineteenth century, they asserted dominance by virtue of their race.
This issue brought complications with the rising principalia and mestizo populations who realized their indispensable
position in society as movers and facilitators of the economy.

The renegotiation continued throughout the century as the mestizos and principalia elite eventually demanded
social recognition that the pure-blooded Spaniards had consistently denied them.

These wealthy mestizos and members of the principalia continued to amass economic and cultural capital. They
also availed themselves of the opportunity to obtain higher degrees of education not only in the Philippines but also in
Europe. These activities augmented their relevance in society as it was from these ranks that articulations of nationalism
would emerge

Module III- The Nineteenth Century Philippine Economy, Society, Chinese Mestizos, and the Agrarian Dispute
5|

Agrarian Disputes

The origin of the friar estates can be traced back to land grants awarded to the early Spanish conquistadores who
arrived in the Philippines during the late sixteenth and early seventeenth centuries. Approximately 120 Spaniards were
given grants that were often composed of a large tract of land known as sitio de ganado mayor (measuring 1,742 hectares)
and smaller tracts of land known as caballerias (measuring 42.5 hectares).

In time, the Spanish hacenderos failed to develop their lands for three reasons. First, the Spanish population in
the Philippines was transient. It was a common practice for Spanish administrator to return to Spain after serving the
colony. Second, the market for livestock products, which haciendas offered, remained relatively small until the latter
part of the Spanish colonial period. Third, the Galleon Trade based in Manila offered bigger economic rewards and
attracted more Spaniards. Because the Spanish hacenderos lacked the interest and inclination to develop their lands, the
religious orders soon took over the task.

Often, the lands were donated by Spaniards seeking spiritual benefits. There were cases, too, in which estates
that had been heavily mortgaged to the ecclesiastics were eventually purchased by the religious orders themselves.
Records reveal that several Filipino principales also contributed to the formation of the friar estates through donations
and sales. Despite these methods, there persisted a commonly held belief among the Filipinos that the religious orders
had no titles to their lands and that they had acquired these lands through usurpation or other dubious means.
Nevertheless, religious estates in the Tagalog region continued to grow that by the nineteenth century, they constituted
approximately 40 percent of the provinces of Bulacan, Tondo (presently Rizal), Cavite, and Laguna.

The preoccupation in the estates was varied during the early centuries of Spanish colonial rule. In the sixteenth
and seventeenth centuries, the estates primarily served as cattle ranches as well as farms of subsistence crops. Rice and
sugar later served as main commodities produced in the haciendas and became important sources of income for the
religious orders especially during the nineteenth century.

Agrarian relations in the haciendas developed in the time. In the sixteenth and seventeenth centuries, the social
structure found in the haciendas was primarily composed of lay brother administrators at the top and cultivating tenants
below. Although the lay brother administrators were under the direct authority of the heads of their religious orders,
they were relatively free to make their own decisions on administrative affairs. The tenants, on the other hand, were
expected to work the land and pay an annual rent, which was usually a fixed amount of harvest and in later centuries,
money.

By the mid-eighteenth century, an expanding economy based on exporting agricultural crops ushered in change
and gradually implemented an inquilinato system. Under this system, an individual rented land for a fixed annual
amount, known as canon. Aside from the rent, the inquilino or lessee was also expected to render personal services to
his landlords. If the inquilino failed to satisfy these requirements, he could face expulsion from the land. Usually, the
inquilino, in turn, would sub-lease the land to a kasamá or sharecropper who would then take on the task of cultivating
the soil. Thus, a three-tiered system emerged with the landlords at the top, the inquilinos at the middle, and the
sharecroppers at the bottom.

By leasing the land to an inquilino, the religious hacienderos freed themselves from the social responsibilities
borne from a direct interaction with the sharecroppers since it was now the inquilinos who dealt directly with the kasamá.
The sharecroppers, on the other hand, benefitted from the arrangement because their labor obligations to the religious
estates allowed them to be exempted from the responsibilities of forced labor demanded by the Spanish government.
The downside to this type of arrangement, however, was that two non-cultivating groups further diminished the income
of the sharecroppers. After the inguilino paid his rent to the religious hacenderos and deducted his own share, the
remaining amount of income would then be divided among all the sharecroppers.

The change in the social structure and land tenure practices would eventually render the haciendas as sites of
contestation among the Spanish religious hacienderos, the inquilinos, and the sharecroppers. It is not surprising, then,
that when the Philippine Revolution broke out in 1896, the abuses in the friar estates were often identified as one of the
main causes that instigated the revolt.

Module III- The Nineteenth Century Philippine Economy, Society, Chinese Mestizos, and the Agrarian Dispute
6|

Hacienda de Calamba Conflict

Not much is known about the Hacienda de Calamba prior to the year 1759 other than it was owned by several
Spanish laymen. In 1759, a destitute Spanish layman, Don Manuel Jauregui, donated the lands to the Jesuits on the
condition that he would be allowed to live in the Jesuit monastery for the rest of his life. The would claim ownership to
the land for a mere eight years before they were expelled from the Philippines through a decree issued by King Charles
Ill on February 27, 1767. As a result of the expulsion, Hacienda de Calamba, along with other Jesuit properties, were
confiscated by the government and put under the management of the Otfice of Jesuit Temporalities.

In 1803, the government sold the property to a Spanish layman, Don Clemente de Azansa, for 44,507 pesos.
When he died in 1833, the Hacienda de Calamba, which measured 16,424 hectares, was purchased by the Dominicans
for 52,000 pesos. By this time, many families from neighboring towns had migrated to the hacienda in search of
economic opportunities. Among the tamilies that arrived at the hacienda were Rizal's ancestors, who eventually became
one of the principal inquilinos in the hacienda.

Although the lands in Calamba were leased to several families, it was Rizal's family that rented one of the largest
leased lands, measuring approximately 380 hectares. Sugar was a main commodity planted in the hacienda as there was
a demand for the crop in the world market. Much of the wealth of Rizal's family came from these lands; hence, it is but
natural that when the conflict began to manifest itself as early as 1883, there was much for the family to be concerned
about.

In 1883, Paciano Rizal wrote that the friars were collecting rents without issuing the usual receipts. Two years
later, the tenants failed to pay their rents because the rent had supposedly increased while sugar prices had remained
low. To punish the tenants for not paying the rent, the Dominicans declared the lands vacant and invited residents of
other towns to take over the tenancies. Because only a few outsiders responded to the Dominican's invitation, the friars
weakened their position. Most tenants, except for four or five, were spared from eviction.

The charges against the friars continued with Rizal's brotherin-law, Mariano Herboso, specifically complaining
about the yearly increase in rentals, faulty irrigation systems, and failure to iSsue receipts. Coupled with these problems
was the fact that at this time, the price of sugar continued to decline in the world market. The situation became so dire
that Paciano, at one point, considered giving back his lands to the friars and clearing land elsewhere.

Problems continued to escalate when in 1887, the colonial government demanded from the tenants of the
hacienda a report on the income and production of the estate because they suspected that the Dominicans were evading
payment of their taxes. The tenants complied and submitted a report, but they also attached a petition authored by José
Rizal. The petition presented a list of grievances against the hacienda owners including a complaint on the increasing
amount of rent. To show resistance, some of the tenants began to withhold rents.

As a form of retaliation, the friars began to evict tenants who refused to pay rent in 1891. Those who persisted
still in resisting the friars were eventually expelled. Among those who were exiled to remote areas in the country were
Rizal's parents, brother, and sisters. Although Rizal had worked on reversing the decision of the Philippine courts, his
family's exile would only be lifted upon the issuance of a decree from another governor-general. The experience affected
Rizal deeply and the increasing despair he felt from the event would be reflected in his second novel, El Filibusterismo.

Module III- The Nineteenth Century Philippine Economy, Society, Chinese Mestizos, and the Agrarian Dispute
7|

Assessment
Fill the column of the chart with changes and development happened during 19th century in regards to
economics, political, and socio-cultural respectively. The second column ask for effects pf the changes and
development to Rizal’s life.

Change & Development Relation to Rizal Life

Economics

Political

Socio-
Cultural

Module III- The Nineteenth Century Philippine Economy, Society, Chinese Mestizos, and the Agrarian Dispute