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e there. On my asking why no oil-factory had been erected, I received for answer that the nuts were cheaper singly than in quantities. In the first place, the native sells only when he wants money; but he knows that the manufacturer cannot well afford to have his business suspended; so, careless of the result, he makes a temporary profit, and never thinks of ensuring for himself a permanent source of income. [Sugar venders.] In the province of Laguna, where the natives prepare coarse brown sugar from sugar-cane, the women carry it for leagues to the market, or expose it for sale on the country roads, in small loaves (panoche), generally along with buyo. Every passenger chats with the seller, weighs the loaf in the hand, eats a bit, and probably passes on without buying any. In the evening the woman returns to her home with her wares, and the next day repeats the same process. [Disproportionate prices.] I have lost my special notes, but I remember that in two cases at least the price of the sugar in these loaves was cheaper than by the picul. Moreover, the Government of the day anticipated the people in setting the example, by selling cigars cheaper singly than in quantities. [Uncertain trading.] In Europe a speculator generally can calculate beforehand, with the greatest certainty, the cost of production of any article; but in the Philippines it is not always so easy. Independently of the uncertainty of labor, the regularity of the supply of raw material is disturbed, not only by laziness and caprice, but also by jealousy and distrust. The natives, as a rule, do not willingly see Europeans settle amongst them and engage successfully in local operations which they themselves do not understand how to execute; and in like manner the creoles are reserved with foreigners, who generally are superior to them in capital, skill, and activity. Besides jealousy, suspicion also plays a great part, and this influences the native as well against the mestizo as against the Castilian. Enough takes place to the present day to justify this feeling; but formerly, when the most thrifty subjects could buy governorships, and shamelessly fleece their provinces, such outrageous abuses are said to have been permitted until, in process of time, suspicion has become a kind of instinct amongst the Filipinos. CHAPTER XXI [Leyte.] The island of Leyte, between 9 deg. 49' and 11 deg. 34' N., and 124 deg. 7' and 125 deg. 9' E. Gr., is ab
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