s; and
the Government cigars of the Philippines are preferred to all others
throughout Eastern Asia. Indeed, rich merchants, to whom a difference
of price is no object, as a rule take the Manila cigars before Havanas.

[Manila tobacco handicapped.] According to Agius ("Memoria," 1871), in
the European market the Manila tobacco was admitted to be without any
rival, with the sole exception of the Vuelta abajo of Cuba; and most
certainly in the Asiatic and Oceanic ports its superior quality was
undisputed, as the Havana tobacco loses its flavor on the long voyage
to these countries; but now, from year to year, it is surely losing its
reputation. If, then, the Manila cigars have not hitherto succeeded in
making themselves acceptable in Europe on account of their inferiority,
the blame is attributable simply to the system of compulsory labor,
and the chronic insolvency of the Insular Treasury, whilst the produce
of other tobacco countries has steadily progressed in quality in
consequence of free competition. The fame of the Manila cigars may
also have suffered in some slight measure from the wide-spread,
though perfectly erroneous, idea that they contained opium.

[Hampered by government restrictions.] How greatly the produce might be
increased by means of free trade is shown under other circumstances by
the example of Cuba. At the time when the Government there monopolized
the tobacco trade, the crops were only partly sufficient to cover
the home consumption; whereas, at the present time, Cuba supplies
all the markets of the world. [237] The decision of Captain-General
De la Gandara upon this question is in the highest degree worthy
of notice. In a MS. Report to the Colonial Minister, March, 1858,
concerning a measure for rendering the regulations of the tobacco
monopoly still more stringent, he says: "If the tobacco cultivation
is placed without restriction into the hands of private traders,
we shall most probably, in a few years, be in a position to command
nearly all the markets in the world." Most of the islands produce
tobacco. According to the quality of the produce, the tobacco
provinces rank in the following order: First, Cagayan and Isabela;
Second, Igorots; Third, Island of Mindanao; Fourth, Bisayas; Fifth,
Nueva Ecija.

[Origin of monopoly.] From the Government Order, dated November 20,
1625, it is evident that even at that early period the sale of betel
nut, palm spirit (toddy), tobacco, etc., was a Governmen