knowingly increased.] It is well known at Madrid how the
tobacco monopoly, by oppressing the wretched population, interferes
with the prosperity of the colony; yet, to the present day, the
Government measures have been so arranged as to exact a still larger
gain from this very impolitic source of revenue.

["Killing the goose that lays the golden egg."] A Government Order of
January, 1866, directed the tobacco cultivation in the Philippines to
be extended as much as possible, in order to satisfy the requirements
of the colony, the mother country, and also the export trade;
and in the memorial already quoted, "reforms" are proposed by the
Captain-General, in the spirit of the goose with golden eggs. By
grafting new monopolies upon those already existing, he believes that
the tobacco produce can be increased from 182,102 cwt. (average of
the years 1860 to 1857) to 500,000, and even 800,000 cwt. Meantime,
with a view to obtaining increased prices, the Government resolved
to export the tobacco themselves to the usual markets for sale; and
in the year 1868 this resolution was really carried out. It was sent
to London, where it secured so favorable a market that it was at once
decreed that no tobacco in Manila should thenceforth be sold at less
than $25 per cwt. [242] This decree, however, referred only to the
first three qualities, the quantity of which decreased in a relative
measure with the increased pressure upon the population. Even in
the table annexed to the record of La Gandara this is very clearly
shown. Whilst the total produce for 1867 stood at 176,018 cwt. (not
much under the average of the years 1860 to 1857, viz., 182,102 cwt.),
the tobacco of the first class had decreased in quantity since 1862
from over 13,000 to less than 5,000 cwt.

[Gift to Spain of unusable tobacco.] The fourth, fifth, and sixth
classes, the greater part of which would before have been burnt, but
which now form no inconsiderable portion of the total crop, are in the
open markets positively unsaleable, and can be utilized only in the
form of a bonus to Spain, which annually receives, under the title of
atenciones a la peninsula, upwards of 100,000 cwt. If the colony were
not compelled to pay half the freight of these gifts, Spain would
certainly ask to be relieved of these "marks of attention." Seeing
that, according to the decision of the chief of the Government, the
greater portion of this tobacco is of such inferior quality that it
ca