The gold which is found at Pictas, in Misamis, and at Mambalao, Paracala, and Surigao, is consumed in the country in ornaments, &c., and some of it is sent also to China. The amount annually produced at these places is very uncertain; and the quantity exported to China is probably a good deal more than the amount set down in the tabular statement, it being a thing of so very easy export, that I should suppose at least an equal number of taels are sent there privately, to what appears in the table to have passed the Custom-house. Its value in Manilla varies, according to quality, at from twenty dollars a tael down to fourteen for the inferior sorts. CHAPTER XXXV. After travelling so far together, the reader will permit me to direct his attention to the geographical position and natural advantages of the Philippines, which are unequalled by any other islands in the whole eastern Archipelago. Their vicinity to the immensely populous empire of China is in itself enough to render them a most flourishing colony. The Spanish and local governments are alive to the importance of this, and appear desirous to encourage trade to a limited extent, but are apparently anxious to hold the reins of it, and to regulate it as they deem best for themselves, or at any time to put a stop to it entirely. The evils arising from the changeable elements given birth to by their interference it is difficult to over-estimate, as from the ignorance, which prevails through all classes, of the first elements of a commonwealth, and from their capricious notions of government, and want of knowledge of the advantages of liberality and of the facilities given to the prosecution of commerce, few persons of prudence care to expose their capital very extensively to the chances of trade. At present the Philippines want some infusion of foreign capital and energy into the veins and local arteries of the country, which, backed by the enlightened application of science, would cause these islands to emerge from the obscurity now surrounding them, and force them to assume the important position for which nature has apparently destined them. This will not come to pass until the present opinions of the Government and people are considerably changed with reference to their commercial legislation, or until all government interference in affairs of that nature is left off, so far as the interests of the revenue will permit, when the people will be insensibly but wisely taught by experience to rely upon themselves alone. The principles of commerce, and the wealth of nations, as laid down by Adam Smith in his great work, which is almost deserving of immortality for the truths it tells mankind, are as true and as sure in practice as they are in theory; and should the wisdom and truth of his investigations ever be applied to the commercial regulations of these islands, it is difficult to foretell the destiny that may ultimately await them.