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. By: Alissa B. Cariaga
2. Tobacco Monopoly The Tobacco Monopoly refers to the 1782 economic program of Spanish Governor General Jose V. Basco, in which tobacco production in the Philippines was under total control of the government. Some pueblos were designated as tobacco districts, like Ilocos and Cagayan, and tobacco planting became compulsory to the point that some crops were abandoned. Brought in the country from Mexico, this became the Philippines' (under Spanish colonial rule) most important industry in the 18th century. It took effect through a royal decree signed by King Carlos III of Spain.
3. History Tobacco as smoke and snuff became very popular to the Spaniards, other foreigners in the Philippines and Filipinos alike but the colonial government learned to exploit its popularity only in the latter part of the 18th century. The actual establishment of the Tobacco Monopoly in 1782 came only after considerable prodding from the metropolitan government. Maintaining the Philippines as a colony was a serious drain on the coffers of the Spanish Empire. Expenses incurred in running the colony were usually paid for by a yearly subsidy (called real situado) sent from the Philippines' sister colony, Mexico. This financial support from the Spanish royal court was often insufficient, especially with expenditures in the Philippine colony growing each year.
4. This prompted the royal fiscal assigned in Manila to devise a plan allowing the Philippines to raise revenues on its own and thus be able to supplement the Spanish subsidy. This royal fiscal was Francisco Leandro de Vianna, who first proposed creating a tobacco monopoly. De Vianna reasoned that tobacco was a product widely consumed throughout the islands, with a market of roughly one million. He projected earnings of as much as P400,000 from the venture. The first time the proposal was made, however, both King Carlos III of Spain and the colonial officials did not prioritize it. All of that would change during the term of Governor-General Basco. Basco had plans to develop and promote Philippine agriculture and de Vianna's proposal seemed attractive to him. After studying the proposal, Basco sent his plan to establish large-scale tobacco production in the colony under complete ownership and management by the colonial government of Spain. What probably perked up the ears of the Spanish king about Basco's plan was its "selling point" to make the Philippine colony financially self-sufficient, thus removing a huge financial burden from the Spanish crown. The King of Spain issued a royal decree on 9 February 1780 setting in motion Basco's plan.
5. By this decree a monopoly was created which remained in operation for a hundred years. This monopoly strictly supervised the growing and grading of the leaf and had factories in Manila for the manufacture of cigars, cigarettes and smoking tobacco . In the field the chief appraiser residing at the provincial capital had a force of subordinates known as "alumnosaforadores". These were in charge of districts composed of municipalities and in each municipality there was a "caudilo" (headman) who was also the “gobernadorcillo” (little governor) who by the aid of his " tenientes " (lieutenants or overseers), supervised the growing of tobacco being remunerated for this service by a percentage of the crop produced. The chief appraiser set the date when the first seed beds were to be sown and also determined the date of planting and number of subsequent seed beds. The program laid out by the chief appraiser went into considerable detail, even designating the number of and when they should be done, as well as the number of plants to be set out in a unit of land.
6. Reintroduction of Tobacco The habit of smoking, sniffing or chewing tobacco and the knowledge to grow the crop remained with the Filipinos. It became part of their cultural heritage. Unlike in the days of the monopoly, however, the crop was grown as the people wished it. A proof of the continued growing of the crop was the Tobacco Inspection Law enacted on February 4, 1916. This law was enacted to improve the methods of production and the quality of tobacco in the country and at the same time developed an
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