Failure of an English Settlement.--The hostility of the Moro rulers was complicated by the interference of the English, who, after the evacuation of Manila, continued to haunt the Sulu archipelago with the apparent object of effecting a settlement. By treaty with the Moro datos, they secured the cession of the island of Balanbangan, off the north coast of Borneo. This island was fortified and a factory was established, but in 1775 the Moros attacked the English with great fury and destroyed the entire garrison, except the governor and five others, who escaped on board a vessel, leaving a great quantity of arms and wealth to the spoils of the Moros. The English factors, who had taken up business on the island of Jolo, fled in a Chinese junk; and these events, so unfortunate to the English, ended their attempts to gain a position in the Jolo archipelago until many years later. Increase in Agriculture.--Anda died in October, 1776, and his successor, Don José Basco de Vargas, was not appointed until July, 1778. With Basco's governorship we see the beginning of those numerous projects for the encouragement of agriculture and industry which characterized the last century of Spanish rule. His "Plan general economico" contemplated the encouragement of cotton-planting, the propagation of mulberry-trees and silk-worms, and the cultivation of spices and sugar. Premiums were offered for success in the introduction of these new products and for the encouragement of manufacturing industries suitable to the country and its people. Out of these plans grew the admirable Sociedad Economica de Amigos del Pais, which was founded by Basco in 1780. The idea was an excellent one, and the society, although suffering long periods of inactivity, lasted for fully a century, and from time to time was useful in the improvement and development of the country, and stimulated agricultural experiments through its premiums and awards. Establishment of the Tobacco Industry.--Up to this time the Philippine revenues had been so unproductive that the government was largely supported by a subsidy of $250,000 a year paid by Mexico. Basco was the first to put the revenues of the Islands upon a lucrative basis. To him was due the establishment, in 1782, of the famous tobacco monopoly (estanco de tabacos) which became of great importance many years later, as new and rich tobacco lands like the Cagayan were brought under cultivation. Favorable Commercial Legislation.--The change in economic ideas, which had come over Europe through the liberalizing thought of the eighteenth century, is shown also by a most radical step to direct into new channels the commerce of the Philippines. This was the creation in 1785 of a great trading corporation with special privileges and crown protection, "The Royal Company of the Philippines."