A Visit to the Philippine Islands

“It is also a favourable symptom that the trade of the contiguous islands is more and more attracting the attention of some of the foreign firms in Manila. The American houses (generally the first in enterprises of this kind) have already, through Spanish intermedia, established agencies at Negros, Leyte and Cebú, for the purchase of hemp and sugar, and it is stated from Manila, on apparently good authority, that one of them has lately advanced a sum of 170,000 dollars for this purpose, the distribution of which should have a stimulating effect on production, and thus give a collateral aid to the future exports from Iloilo.

“Considering the great advantages which would accrue from the establishment of lines of small merchant steamers between the islands, the fact that the government have lately given orders to commence working the extensive coal districts existing at Cebú is not without importance. The subject of steam communication for the archipelago is attracting attention at Manila, and it is not improbable that in a few years the islands will be connected in this way in a manner which will greatly tend to their advantage.

“It should have been previously mentioned that the voyage from Iloilo to Manila during the north-easterly monsoon (from November to March) usually occupies the better class of square-rigged vessels in the trade from ten to fifteen days, and from four to six days on the return voyage. Owing to the protection afforded by the group of islands forming the Silanga, and by other harbours on the route, vessels do not (as is usually the case between the ports on the northern part of the more exposed coast of Luzon and the capital) lay up during the stormy months from September to November; and communication, though less frequent during these months, is seldom altogether suspended for any length of time with Manila. On the average, a vessel leaves for the capital every eight to twelve days.”

I add a few further extracts from a report on the trade of 1858, with which Mr. Loney has favoured me, and which strongly exhibits the growing importance of Iloilo.

“The import trade, in direct connection with British and foreign houses, has increased during the past year to a degree which could not have been anticipated. Formerly it did not exceed 7,000 dollars in amount; but now, during a period of two years, it has reached fully 140,000 dollars, and is likely to increase much more in future as the capabilities of the market for taking off an important quantity of manufactures become more fully known.

“Owing to the existence of a stock of foreign articles at Iloilo, obtainable by the native dealers as a general rule (and as a consequence of the more direct manner in which they reach their hands) at cheaper prices than from the Chinese shops at Manila, many of the native, and even some of the Chinese traders, find the advantage of making their purchases on the spot instead of in Manila, and some of the former have ceased altogether to undergo the expense and loss of time they formerly incurred in proceeding to Manila to lay in their stocks, while others make voyages to the capital less frequently than before, and send on their piña goods under the care of friends or agents; consequently, the trade is beginning to be conducted in a less primitive manner than in previous years, when each small trader brought on his goods himself, purchased at high rates from the Manila shopkeepers. Dealers from Antique, from the island of Negros and from Leyte now also find at Iloilo a stock of goods sufficient to supply their wants. Another beneficial effect is, that those who buy wholesale at Iloilo are enabled to dispose of their goods to the small dealers, or to their agents, who distribute them over the interior, at lower prices than formerly. Goods are thus saleable, owing to this greater cheapness, at places in the interior of the island, where they were formerly rarely bought, and the natural consequence is, a considerable increase of consumption. The concurrent testimony of all the older residents in the province is, that during the last few years a very marked change has taken place in the dress and general exterior appearance of the inhabitants of the larger pueblos, owing in great measure to the comparative facility with which they obtain articles which were formerly either not imported, or the price of which placed them beyond their reach. In the interior of the houses the same change is also observable in the furniture and other arrangements, and the evident wish to add ornamental to the more necessary articles of household uses; and those who are aware how desirable it is, from the peculiarly apathetic nature of the natives, to create in them an ambition for bettering the condition of themselves and their families, or emulating that of others, by placing within their reach the more attractive and useful articles of European production, will at once recognize in these facts the beneficial tendency of increased and cheaper imports.

“With regard to duties derivable from imports, we must consider the more or less remote probability of direct imports from Europe or China to Iloilo. It needs very little acquaintance with the gradual and hesitative processes of trade to be aware of the slowness with which they adapt themselves to new channels of communication. Especially is this the case in reference to these southern islands, from the previous commercial seclusion in which they had been kept – a seclusion so great that it may be safely asserted that the island of Panay, with its 750,000 inhabitants, is scarcely known, by name even, in any of the commercial marts of Europe, America, or even of Asia. Consequently, it affords no ground for surprise that no direct transactions in imports have taken place. It must be recollected that the years 1857–58 have been eminently unfavourable for new commercial enterprises of any kind, owing to the depressed state of trade in all the markets of the world. This state of depression, though still felt, is, however, drawing to a close, and the Iloilo market, among others, will doubtless attract the attention of European manufacturers and capitalists, though some time must necessarily elapse before a sufficient number of shippers can be found to send consignments of such a varied nature and assortment as would be required to make up a cargo to suit the wants of Panay and the neighbouring islands. Already consignments have arrived by way of Manila, which were made up specially for the Iloilo market; and this circumstance, and the fact that the Manchester manufacturers are beginning to take an interest in the Iloilo demand, fully warrant the belief that before long consignments from Europe, by the way of Manila, will take place on an important scale, and pave the way to direct shipments to Iloilo. Though it is almost useless to prognosticate in cases of this kind, where so many circumstances may occur to retard or accelerate the development of a new market, still I have no hesitation in affirming it to be much more than probable, that in the course of two years from this time Spanish vessels will arrive from Liverpool direct, or touching and discharging part of their cargoes at Manila, more particularly as by that time direct exports will have taken place, and the sugar crop be raised to a point which will render it easy for the vessels arriving with piece goods to obtain return cargoes of sugar, sapan-wood and hides, all of which products, it is unnecessary to say, can be obtained at Iloilo much more cheaply than in Manila.

“It is also probable that direct imports from China will take place sooner than from Europe. The employment of raw Shanghai silk is much greater at Iloilo than in any of the other Philippine provinces, and the consumption amounts to fully 30 peculs per month, worth, on an average, 600 dollars, silver, per pecul, or say 18,000 dollars per month.

“The export trade from Iloilo direct to foreign markets is, in fact, evidently the primary event on which the commercial fate, so to speak, of the Bisaya Islands depends. The chief obstacle, in addition to those mentioned above, which has retarded its commencement has been the extreme smallness of the yield of sugar. In 1855–56, the Iloilo crop, including some quantity received from the island of Negros, scarcely reached 12,000 peculs, and, instead of increasing, it had been declining in consequence of the discouraging effect of the miserable price of 1·875 to 2 dollars per pecul of 140 lbs.; all that could be obtained for it after incurring the expense of sending it to Manila. In 1856–57, under the stimulus of higher prices, the yield amounted to 35,000 to 37,000 peculs. In 1857–58, these high prices had a still more stimulating effect on the planting of cane, and it was calculated that the crop would yield at least 50,000 peculs; but an excess of rainy weather reduced the actual outturn to about 30,000. The present crop, however, of 1858–59 has escaped the danger of rain, and it is computed that it will yield about 80,000 peculs from January to July next. Some estimates place it as high as 100,000 peculs, but in this I think there must be exaggeration.

“The yield of sugar at Iloilo (leaving out of the question the crop of Isla de Negros, which is now computed to produce 30,000 peculs, and that of Antique, 20,000, both available for the Iloilo market) having fortunately reached the above amount, direct sugar exports have now become possible, and preparations are made for shipments to Australia direct, during the first months of the ensuing year.

“‘To reach the consuming markets by the most direct line, to avoid transshipments and save double freights are objects, commercially, of the highest importance.’36 And there is an aspect of the matter which renders it still more necessary, as regards the Philippine trade, that these objects should be kept in view. Australia is now, after Great Britain, the most important market for the Philippine sugars, and particularly for the reclayed Bisayan sugars of Iloilo and Cebú, which are there used for refining purposes, and it will most undoubtedly be before long the largest consumer of the sugar of these islands. In 1857 the exports of Iloilo and Cebú sugar from Manila to Australia were 18,178 and 51,519 peculs respectively, while to all the other markets, including Great Britain, they were only 11,519 and 41,699 peculs; and the same year the total export of all kinds of sugar to Australia was even more than to Great Britain, being 17,847 tons, or 285,552 peculs, to the former, against 16,675 tons, or 266,800 peculs, to the latter market. In the present year (1858), the total export from Manila to Australia, owing to a deficiency in the Pampanga crop, and the discouragement caused to the Australian importers by the high prices of 1857, have only reached 9,038 tons, or 145,028 peculs.

“In the meantime Mauritius, Java and Bengal all supply large and increasing quantities of sugar to Australia, and Mauritius in particular, possessing the great advantages of greater proximity (as to time) and of machinery and other appliances far superior to those in use in the Philippines, furnishes the Australian market with a large quantity of crystallized and yellow sugars, which are much sought for in Sydney and Melbourne, where the steady increase of population and general wealth augment the demand for high-classed sugars. In 1857 the Australian colonies took 24,000 tons, or 384,000 peculs, of sugar from Mauritius; and the latest accounts anticipate that the shipments this year to the same quarter will be 30,000 tons, or 480,000 peculs. To quote the words of the Port Louis Commercial Gazette of August 10th, 1858: – ‘There is no doubt that the present crop will reach the figures of 240,000,000 lbs., say 120,000 tons’ (nearly 2,000,000 peculs); ‘but as the Australian colonies took 24,000 of the last crop, we must expect they will take at least 30,000 of this, our crystallized and yellow sugars gaining in estimation there.’ The same journal, of the 27th of October, adds, ‘This facility of realizing produce at fair prices has given animation to business and has improved the prospects of the colony. There are now 150 vessels in our harbour, loading and discharging for and from different parts of the world. Our marine establishments are busily engaged in repairing vessels of different nations that have been happy to seek refuge here; our vast quays are too small for our commerce; the capacious new stores lately erected, and which embellish our port, are filled with goods and produce; 25,000 immigrants have been added to our population this year, whilst only 6,500 have left. Our public revenue has largely increased – companies are prosperous – cultivation has been extended, sugar machinery and works improved and increased, and private buildings throughout the principal part of the town enlarged and improved in appearance.’

“Fortunately for the Philippines, with respect to their better-appointed rivals – Mauritius, Java and Bengal – the low-graded unclayed sugars of Iloilo, Capiz and Antique, Isla de Negros and Cebú, are, in ordinary times, cheaper than those of either of the latter colonies, and consequently more adapted for refining purposes; but nothing can place in a stronger light than the above facts regarding the export from Mauritius the very great importance of keeping the way open for exporting the unclayed Philippine sugars to Australia at the cheapest possible cost to the importers.

“The much greater extent and more than equal fertility of the Philippines, as compared with Mauritius, must, in the end, if no artificial obstacles are again imposed on the production of the former, lead to the development of larger sugar crops than those of the latter colony.

“The results of the opening of the ports of Soerabaya, Samarang, Cheribon, and others in the island of Java are encouraging circumstances, as showing, among other similar examples, of what importance Iloilo, as the central port of the Bisayan Islands, may become. Soerabaya and Samarang (and especially the former), which enjoy a favourable proximity to the chief points of production, now export an immense quantity of produce, and orders for the direct shipment to Europe of rice, sugar, coffee, tobacco and other Javan products are transmitted by electric telegraph by the Batavian houses to their agents at these ports over a distance exceeding 350 miles. I cannot at present do more than briefly allude to the approaching commencement of an export of timber and furniture woods from Iloilo and Antique to China. The Spanish ship Santa Justa loaded a large cargo of wood this year for Hong Kong, which has lately been sold at 63½ cents per foot. Since then, in anticipation of the demand for the rebuilding of Canton, the price has risen in Hong Kong, and arrangements are being made for the charter of a large vessel, either Spanish or foreign, to convey other cargoes to China; and there is every prospect of there being, before long, an active traffic in this article, which, as before noticed, is of excellent quality, abundant, cheap, and easily accessible near Iloilo, and at the adjoining province of Antique.

“It is recommended that vessels making the voyage to Iloilo from Australia, or any place to the south of the Philippines, should, during the S.W. monsoon, enter the archipelago between the islands of Basilan and Zamboanga, and, on passing Point Batalampon, keep well up to Point Gorda, and make the Murcielagos Island, so as to avoid being driven to the westward by the strong currents setting from off the Mindanao coast during both monsoons.

“Pending the N.E. monsoon, the best course is to make a détour to the east of the Philippines, and enter the archipelago by the Straits of San Bernardino. The straits should be entered by Samar and Masbate. Vessels bound from Manila or northern ports may proceed through the Mindoro passage, but they should consult Don Claudio Montero’s charts. After passing Tablas and Romblon (an excellent harbour there), make for the Silanga Islands, a good mark for which is the high conical island called Sugar Loaf (Pan de Azucar). During the N.E. monsoon vessels should keep between the islands of Jintotolo and the larger Zapato (Shoe Island), but during the S.W. pass between Oliuaya and the smaller Zapato. The best channel is between Sicogon and Calaguan, but the outer and broader passage between the groups of islands and that of Negros is preferable for large ships. There is safe anchorage through the inner route. At Bacuan and Apiton supplies are to be found.

“The tide through the Silanga Islands and Seven Sins flows at the rate of three to four miles an hour – from the Seven Sins to Iloilo often at six to seven miles an hour.”

Commercial prosperity is so intimately connected with general improvement and the increase of human happiness, that one cannot but look with interest upon the results of any legislation which removes the trammels from trade and gives encouragement to industry, and the island of Panay may be considered a promising field for the future. The latest accounts report that the planting of cane has been extended very rapidly in this province, owing to the continuance of high prices for sugar, and also to the fact of the direct export trade to Australia having commenced. Planters now see that the arrival of foreign vessels will lead to a permanent demand for their sugars at prices which will pay them better than those formerly obtainable for the Manila market, from whence, before the opening of the port of Iloilo to foreign trade, all the sugar of this and the neighbouring provinces had to be shipped at a great additional expense in heavy coasting freight, landing and reshipping charges, sea risk, commission, brokerage, &c., all of which are now avoided by direct shipment at the place of production.

“The stimulus given to planting has resulted this year in an increase in the yield to 60,000 peculs (3,750 tons), and, judging from the amount of cane planted for next season’s crop, it is fully anticipated that in 1860 about 140,000 peculs (7,500 tons) will be produced, without counting on the quantity yielded by the neighbouring provinces of Antique (30,000 peculs) and the island of Negros (35,000 to 40,000 peculs), from both of which places sugar is brought and exported.

“The difference in the cost of sugar at Iloilo and at Manila is at present 2l. 16s. 5d. per ton, free on board; as will be seen from the following: —

Comparative Cost

“The island of Panay, of which Iloilo is the chief port, is divided into the three provinces of Iloilo, Capiz, and Antique, which contain respectively 527,970, 143,713, and 77,639 inhabitants, or a total of 749,322, according to the official returns of 1858.

“British Vice-Consulate for Panay,“Iloilo, 2nd May, 1859. “N. Loney.”

Notwithstanding the favourable prospects for commerce at Iloilo, little or nothing has been done for the improvement of the port or for facilitating the extension of its trade. There is no buoy, no light, no indication of dangerous places, though the Oton shoal is extending itself, and it is of the greatest importance that the safe channel should be pointed out to navigators. The latest Admiralty instructions (1859) are as follow: —

“Port Iloilo, situated on the southern shore of Panay Island, though well protected and naturally good, is not without certain inconveniences, capable, however, of being easily obviated; provided with a good chart, and if approaching from the northward with a pilot, large vessels may enter with safety.

“The depth of water on the bar at the entrance to the creek or river Iloilo is about five fathoms at low water, but at a short distance within it decreases to fifteen feet, and then deepens again. The rise of tide being six feet, a vessel drawing sixteen to eighteen feet can easily enter or leave; and when, as is proposed, a dredging-machine is employed to clear away the mud which has been allowed to accumulate at the shallower parts near the entrance, vessels of almost any burden will be able to complete their cargoes inside. A Spanish ship of 700 tons, in 1857, loaded part of a cargo of tobacco inside the creek, and finished the lading outside.

“The banks of the creek being of soft mud, there is little or no risk to be apprehended from grounding. Proceeding about a mile and a half up the creek, which varies in breadth from one-half to three-quarters of a mile, the coasting craft bring up at the jetties of their respective owners, and have the great advantage of discharging and loading at the stores without employing boats. Beyond this point the creek reaches as far as Molo, to which place coasting vessels formerly could proceed by passing through a drawbridge. This got out of repair, and the present bridge affording no means of passage, they remain at Iloilo, where the Molo traders have had to transfer their storehouses. The works of a new moveable bridge, to allow vessels to pass, have, however, already been commenced.

“The island of Guimaras forms, in front of Iloilo, a sheltered passage, running nearly north and south, of a breadth varying from two miles and a half to six miles, with deep water and good anchorage. The southern entrance to this passage is much narrowed by the Oton Bank, which extends a considerable distance from the Panay shore, and contracts for about a mile the available channel at this port to the breadth of about two miles. This shoal is fast becoming an island. There is, however, no obstacle to large vessels during the north-west monsoon (especially as the channel is to be buoyed), the passage being quite clear, and in the north-east monsoon they can work or drop through with the tide, keeping well over towards Guimaras (the coast of which is clear, with deep waters quite close in), anchoring, if necessary, on the edge of the shoal, which affords good holding-ground and may be safely approached. The whole of this part of the coast is, in fact, safe anchorage during the north-east monsoon.

“If blowing hard in the southern channel to Iloilo, a vessel may proceed to the port of Bulnagar, or Santa Ana, on the south-west side of Guimaras, which is of easy access, and capable of admitting vessels of the largest tonnage, and it affords good shelter under almost any circumstances.

“The approach from the northward to the northern entrance to Iloilo is generally made by the coasting craft through the small, richly wooded islands Gigantes, Sicogon, Pan de Azucar, Apiton, &c., called collectively the Silanga, which lie off the north-east coast of Panay, and afford an admirable refuge for a considerable distance to the vessels engaged in the trade with Manila and the southernmost Bisangas. Though, however, there is excellent anchorage among these islands, particularly at Pan de Azucar and Tagal, it would be most prudent for large ships, in cases where there is no practical acquaintance with the set of the tides, currents, &c., to take the outside channel between the Silanga and the island of Negros.

“After passing the Calabazos rocks and Papitas shoal, and sighting the block-house of Banate” (erected, like many others along the Philippine coasts, for defence against the pirates of the Sulu Sea), “the course is due south, until sighting a group of seven remarkable rocks, called the Seven Sins, which lie between the north end of Guimaras and the Panay shore; a direct course for them should then be made, taking care to keep the lead going to avoid the Iguana Bank. Vessels of proper draught may enter the creek, or, if too large, should bring up on the east side of the fort, where they are protected from the wind and strength of the tide.

“A lighthouse, for exhibiting a fixed light, is to be erected on the Seven Sins, and another on Dumangas Point. Buoys are also to be laid down along the channel near the Iguana and Oton shoals.”37

The latest report on the navigation of the port of Iloilo is given in the note below.38

Iloilo has great facilities for the introduction of wharves, piers and landing-places, but none have been constructed. The entrance to the river, and, indeed, the whole of its course, might be easily dredged, hut little or nothing is done for the removal of the accumulating mud.

When five or six miles off shore, had four fathoms, tacked inshore, and brought up for the night, Point Cabalig bearing N.E. two miles, eight fathoms water; good holding-ground, soundings deepening to twenty fathoms when one mile off shore.

Point Cabalig and Point Bondulan, when bearing N.E., form two very prominent headlands, which are not shown on the Spanish charts I had. With common precaution there is no danger whatever in approaching the port of Iloilo by keeping the coast of Guimaras close inboard from Point Cabalig until nearly abreast the fort, which will clear the Oton Bank. Even should a vessel ground, she will receive no damage, and can be easily got off, as the bottom is quite soft. When the fort bears S.W. by W. one mile, the channel to Iloilo is then open, and with a flood-tide keep the N.E. point close on board. When past it, keep more over to the other shore, where there are from three and a half to three fathoms water close to the shore, and two fathoms at low water. The port of Iloilo is a perfect dock formed by nature. Vessels lay alongside the wharf, where there are two and a half fathoms at high water, and two fathoms at low water, and every facility for discharging and loading. I discharged 200 tons of ballast and took in 300 tons of sugar within nine days. Labour and fresh provisions are very moderate.