The present work is built around a group of ideas briefly summarized as follows: The first three chapters portray the industries and commerce at the time of the coming of the Spaniards; and explain the causes that led to their decline; the fourth chapter dwells upon the era of restriction, and the Manila-Acapulco trade, which, for over two centuries, dominated this country, and has had such depressing effect upon economic growth; the last chapter takes up the era of liberalism, during the nineteenth century, and shows how the opening of the Philippines to foreign influence resulted in the development of its natural resources. Any attempt to trace Philippine economic development in the past three centuries must necessarily start, not so much with a detailed account of how the industries developed as with an exposition of how they were not developed. On the other hand, the remarkable social progress of the last half of the nineteenth century, following the opening of the markets of the world to Philippine products, is an encouraging indication of probable social advance yet to be attained. I. AGRICULTURE AND LANDHOLDING AT THE TIME OF THE DISCOVERY AND CONQUEST Agriculture. At the time of the arrival of the Spaniards, agriculture in the Philippines was in a comparatively prosperous condition. [7] The Filipinos cultivated rice, which, as today, formed their chief article of food. They grew also sugar-cane, coconuts, indigo, sweet potatoes, and other tubers, various kinds of bananas, the betel-nut palm, the tamarind, lansone, and several varieties of legumes, [8] The hemp plant was likewise grown, and as we shall see later on, was used at the time for making the so-called "sinamay" cloth. [9] Cotton was cultivated, and furnished the material for weaving. Among the native fruits mentioned by Morga are: "sanctors, mabolos, tamarinds, nancas, custard-apples, papaws, guavas, and everywhere many oranges, of all kinds--large and small, sweet and sour; citrons, lemons, and ten or twelve varieties of very healthful and palatable bananas." [10] With the coming of the Spaniards, very many plants which are commonly considered to be indigenous in this country, were introduced. [11] The most important economic plant imported since Spanish discovery was the tobacco, which today forms one of the staple crops, though it took many years before it came to anything like its present position. The cacao nut also was imported. Among the most commonly known of the others are; maize, peanut, papaya, and, also pineapple, and sweet potato. [12] All of these plants came from Mexico. [13] Coffee was introduced from Europe. [14] Live stock. The Filipinos at the time of discovery had domestic animals, dogs, cats, pigs, goats and buffaloes, i.e. carabaos. [15] "There were no horses, mares, or asses in the islands, until the Spaniards had them brought from China and brought them from Nueva Espana." [16]