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1847- 1890

Philippine Financial Condition

In 1877 it was possible to sell 8000 peso worth of cattle for hard cash

They sell their cattle and other livelihood assets because at that time barter trade is rarely used.

Therefore, if this is the case, there is no means of acquiring things especially from Spanish-

oriented stores other than paying hard money. Also, at that time, monetary system is completely

established. With this, we can see that barter trade will definitely diffuse because there are now

created means on buying things.

McCoy, Alfred W. et-al. Philippine Social History. Manila City: Ateneo De Manila University

Press

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In 1857, under the second Isabelline Monetary System, the Spaniards introduced the

decimal system to prevent monetary confusion.

Established European countries, especially Spain, found the monetary system they are using very

confusing in terms of dividing (1 real divided by 8) and adding percentages (1 real plus 12%).

Because of this confusion, the said monetary system coined the decimals and made cents.

QUEEN ISABEL II of SPAIN

In September 1857, Queen Isabel II authorized the creation of the Casa de Moneda de

Manila and purchase of required machinery. The mint was inaugurated on March 19,1861.

The Intendencia in Intramuros: It

housed the Casa de Moneda de Manila

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Coin production at the Casa de Moneda de Manila began in 1861 with gold coins (0.875

fine) of three denominations: 4 pesos, 2 pesos, and 1 peso.

Minting of these coins started in 1864, with designs similar to the Spanish Silver Escudo.

The Isabelline Peso, more formally known as thepeso fuerte was a unit of account divided

into 100 centimos equivalent to 8reales fuertesor 80reales de velln. Its introduction led to

the Philippines' brief experiment with thegold standard, which would not again be

attempted until theAmerican Colonial Period.

http://philmoney.blogspot.com/2008/01/evolution-of-philippine-currency.html

http://en.wikipedia.org/wiki/Philippine_peso

Taxes paid/ Services paid

1. Tribute (Buwis) - could be paid in cash or kind (tobacco,chickens, produce, gold,blankets, cotton, rice, etc., depending on the region of the country). Later on it was fixed

at fifteen reales.

The Tribute was apportioned into:

ten reales (buwis),

one real diezmos prediales (tithes),

Sample Paper Money created by Casa

de Moneda de Manila

http://en.wikipedia.org/wiki/Spanish_escudohttp://en.wikipedia.org/wiki/Spanish_dollarhttp://en.wikipedia.org/wiki/Spanish_dollarhttp://en.wikipedia.org/wiki/Spanish_dollarhttp://en.wikipedia.org/wiki/Spanish_realhttp://en.wikipedia.org/wiki/Spanish_realhttp://en.wikipedia.org/wiki/Spanish_realhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/American_Colonial_Periodhttp://en.wikipedia.org/wiki/American_Colonial_Periodhttp://en.wikipedia.org/wiki/American_Colonial_Periodhttp://philmoney.blogspot.com/2008/01/evolution-of-philippine-currency.htmlhttp://philmoney.blogspot.com/2008/01/evolution-of-philippine-currency.htmlhttp://en.wikipedia.org/wiki/Philippine_pesohttp://en.wikipedia.org/wiki/Philippine_pesohttp://en.wikipedia.org/wiki/Philippine_pesohttp://philmoney.blogspot.com/2008/01/evolution-of-philippine-currency.htmlhttp://en.wikipedia.org/wiki/American_Colonial_Periodhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Spanish_realhttp://en.wikipedia.org/wiki/Spanish_dollarhttp://en.wikipedia.org/wiki/Spanish_escudo

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one real to the town community chest,

one real sanctorum tax,

and three reales for church support.

By 1884, the tribute was replaced by the Cedula personal, wherein people were required to pay

for personal identification. Everyone over the age of 18 was obliged to pay. The local

gobernadorcillos had been responsible for collection of the tribute. Under the cedula system,

however, taxpayers were individually responsible to Spanish authorities for payment of the

tax, and were subject to summary arrest for failure to show a cedula receipt .

2. Bandala- an annual enforced sale and requisitioning of goods such as rice 3. Polo y servicios- is the forced labor for 40 days of men ranging from 16 to 60 years of

age who were obligated to give personal services to community projects. In 1884, the

labor was reduced to 15 days

Falla- a daily fine of one and a half real that will grant exemption from Polo Y Servicios.

Agoncillo, Teodoro M.History of the Filipino People, 8th edition, Quezon City:

Garotech Publishing