Chapter X: Agricultural Products, Forest Resources, Minerals, and

OTHER INDUSTRIES

The Philippines are eminently an agricultural country. Agriculture is the principal source of the Islands' wealth, and the bulk of the exports consists mostly of agricultural products.

[Hectares under cultivation]

An estimate of the number of hectares under cultivation during the year 1922, shows the following:

Hectares devoted to rice. 1,661,430
Hectares devoted to abaca. 494,990
Hectares devoted to sugar-cane. 240,820
Hectares devoted to coconuts. 422,684
Hectares devoted to corn. 549,960
Hectares devoted to tobacco. 59,870
Hectares devoted to maguey. 27,670
Hectares devoted to cacao. 1,155
Hectares devoted to coffee. 882
---------
Total. 3,459,461

This is only about 10 per cent of the total area of the Islands.

Extensive areas of agricultural lands which remain undeveloped are the Agusan Valley in eastern Mindanao; the Cotabato Valley in central Mindanao; sections of the plains of central Luzon and of the Cagayan Valley; the central plain of Panay and the meadowlands of Palawan, Samar, and Mindoro. There are also the coastal plains of Zamboanga, Mindanao, Leyte, and Negros.

The average area of farms in the Islands according to the Census of 1918 is 2.33 hectares, as against 3.47 hectares in 1903.

[Farms owned by Filipinos]

Out of the 1,955,276 farms in the Islands today 1,946,580 or 96 per cent, are owned by Filipinos, 2,678 by Americans, 949 by Europeans, 1,612 by Asiatics, and 3,457 by other nationalities.

[Exports]

THE PRINCIPAL CROPS.--The principal crops produced by the islands are rice, abaca (Manila hemp), coconut, sugar, and tobacco. All of these except rice are articles of export. The following table shows the respective values of these exports:

-------------------------+---------------------------
| Value
Article +-------------+-------------
| 1921 | 1922
-------------------------+-------------+-------------
| |
Abaca (Manila hemp). | P25,969,385 | P39,081,829
Coconut oil. | 32,103,036 | 31,468,971
Copra. | 26,146,913 | 28,206,146
Sugar. | 51,037,454 | 51,165,110
Tobacco products. | 16,564,434 | 17,340,236
Maguey. | 1,848,794 | 2,973,203
Cordage. | 918,544 | 1,099,375
Fruits and nuts. | 239,060 | 532,632
Rubber, crude. | 25,700 | ----
Ilang-ilang oil. | 57,554 | 60,606
-------------------------+---------------------------

Rice is almost exclusively the staple foodstuff of the people; but corn in some provinces constitutes an important part of the daily diet. Although the production of rice has been increasing steadily since 1910 the Philippines has had to import rice from other countries, especially Indo-China, for a part of its supply. The government is now exerting every effort towards solving the problem. Immense sums are being appropriated for the construction of irrigation systems so indispensable in the successful growing of rice.

[Fibers]

Abaca (Manila hemp).--The Philippines is the only source in the world for abaca, commercially known as Manila hemp. There are two other commercial fibers, however, that grow in the islands. These are sisal and maguey. Although other kind of fibers grow in other countries especially in Mexico, the world must always use a certain amount of the Manila hemp for binder twine and for high grade ropes.

HEMP EXPORTS, 1913-1922

--------------+---------------------------------------------+--------------------------------
| To all countries | To the United States
+------------+-----------+---------+----------+----------+----------+----------
Year ended | Quantity | Value | Average |Percentage| Quantity | Value |Percentage
December 31-- | | |value per| of total | | | of total
| | | 1,000 | export | | | hemp
| | | kilos | | | |
--------------+------------+-----------+---------+----------+----------+----------+----------
| Kilos | Pesos | Pesos | | Kilos | Pesos |
| | | | | | |
1913 | 119,821,435| 42,242,168| 352.54 | 44 |47,144,252|19,574,434| 46
1914 | 116,386,575| 38,389,630| 329.85 | 39 |50,140,193|19,238,752| 50
1915 | 142,010,431| 42,678,200| 300.53 | 40 |69,251,180|22,702,566| 53
1916 | 137,326,092| 53,384,593| 388.70 | 38 |66,344,154|27,279,018| 51
1917 | 169,435,204| 98,615,559| 552.51 | 49 |95,580,320 59,291,095| 63
1918 | 169,260,377|116,383,100| 687.60 | 43 |86,823,997 65,468,402| 56
1919 | 121,247,668| 53,703,052| 442.92 | 24 |65,509,134 32,390,957| 60
1920 | 141,485,785| 71,724,000| 506.93 | 24 |67,041,769 41,228,052| 58
1921 | 100,401,940| 25,969,385| 258.65 | 15 |34,558,262 10,914,117| 42
1922 | 172,026,591| 39,081,829| 227.18 | 20 |83,544,420 20,663,552| 53
--------------+------------+-----------+---------+----------+---------------------+----------

Coconuts.--In the production of coconut, the Philippines is the third most important source in the world. It is excelled only by the Dutch East Indies and the Federated Malay States. It is estimated that there are some 84,536,710 trees in the islands which in 1922 produced 366,808,888 kilos of coprax, valued at P44,057,045.

The traveler in Philippine waters always notices along the coast the extensive groves of coconut palms which extend miles and miles into the hinterland as far as the eye can reach.

[Uses of the Coconut]

In the Philippines the coconut tree serves many ends. The meat is eaten as a delicacy. The leaves supply roofing for houses. The shell of the nut is used for dishes, cups, and spoons; the oil for soap and illumination; in some sections the same oil is used as a frying fat for cooking purposes. The fiber from the husk is used for ropes and mats. The husk itself is used for fuel. The water inside the nut is an ever-ready delicious drink.

Oleomargarine comes from coconut oil fat, an industry which has developed considerably in Denmark and Germany and also in the United States.

Copra, or coprax--Other by-products.--Copra, or coprax as it is sometimes called, is the dried meat of the ripe coconut. It is obtained by breaking the nut into halves and drying them in the sun or artificially in kilns until the nut-meat is separated from the shell.

The exportation of coconut oil from the Philippines since 1913 is shown in the following table:

COCONUT OIL EXPORTED, 1913-1922

--------------+---------------------------------------------+---------------------------------
| To all countries | To the United States
+------------+-----------+---------+----------+-----------+----------+----------
| | | | | | |
Year ended | Quantity | Value | Average |Percentage| Quantity | Value |Percentage
December 31-- | | |value per| of total | | | of total
| | | 1,000 | export | | | coconut
| | | kilos | | | | oil
--------------+------------+-----------+---------+----------+-----------+----------+----------
| Kilos | Pesos | Pesos | | Kilos | Pesos |
| | | | | | |
1913 | 5,010,429| 2,292,678| 457.58 | 2.40 | 4,805,384| 2,190,876| 96.56
1914 | 11,943,329| 5,238,366| 438.60 | 5.38 | 11,896,975| 5,214,326| 99.54
1915 | 13,464,169| 5,641,003| 418.96 | 5.24 | 13,367,932| 5,609,263| 99.44
1916 | 16,091,169| 7,851,469| 487.94 | 5.61 | 15,307,429| 7,388,748| 94.11
1917 | 45,198,415| 22,818,294| 504.85 | 11.93 | 45,045,690|22,755,319| 99.72
1918 | 115,280,847| 63,328,317| 549.33 | 23.42 |113,524,729|62,198,528| 98.22
1919 | 139,942,612| 73,719,504| 526.78 | 32.59 | 85,376,904|45,797,329| 62.12
1920 | 77,571,405| 46,537,773| 599.93 | 15.40 | 71,944,801|43,366,086| 93.18
1921 | 90,292,242| 32,103,036| 355.55 | 18.22 | 80,504,458|27,907,379| 86.98
1922 | 107,208,191| 31,468,971| 293.63 | 16.46 |106,645,477|31,288,505| 99.43
--------------+------------+-----------+---------+----------+-----------+----------+----------

[Copra meal]

Another by-product of the coconut oil is known as copra meal. It is the meal remaining after most of the oil has been expressed. This is used as cattle feed in Germany and Denmark.

[Soap]

Recently, certain corporations in the Philippines have gone so far as to use their oil to manufacture many of the varied products which were formerly made only in the United States and Europe. Soap was the first product to be manufactured locally. There are two companies now, however, which manufacture lard substitutes under their own trade names. There is an attempt also to manufacture coconut butter for sale in the islands.

[Desiccated Coconut]

The manufacture of desiccated coconut is an infant industry in the Philippine Islands. The demand for this in Europe and particularly in the United States is very large and is mostly filled by Ceylon or by factories in the United States which import the whole nuts from the West Indies. Last year, however, the desiccated coconut from the Philippines gained a strong foot-hold in the United States and it is expected that Ceylon will be ousted from this field in the near future due to the free trade relations between the United States and the Philippines. On desiccated coconut imported into the United States from foreign countries, a duty of 3 1/2 per cent is levied. At present there are six factories of desiccated coconut in the Islands.

[Coir]

Another opportunity for development lies in the use of coir, the tough fiber of the husk surrounding the nut. In other countries this is worked up into door mats, rope, twine, etc., but in the Philippines the husks are usually burned as fuel except in a few instances where they are utilized for domestic purposes. It is also possible that some day other minor parts of the palm may be used. At present the midribs of the palm leaflets are used in making brooms and baskets, but the demand for exports is still small.

The exportation of copra from 1913 to 1922 is as follows:

--------------+---------------------------------------------+---------------------------------
| To all countries | To the United States
+------------+-----------+---------+----------+-----------+----------+----------
| | | | | | |
Year ended | Quantity | Value | Average |Percentage| Quantity | Value |Percentage
December 31-- | | |value per| of total | | | of total
| | | 1,000 | export | | | copra
| | | kilos | | | |
--------------+------------+-----------+---------+----------+-----------+----------+----------
| Kilos | Pesos | Pesos | | Kilos | Pesos |
| | | | | | |
1913 | 82,219,363 | 19,091,448| 232.20 | 19.98 |10,027,813 | 2,398,166| 12.56
1914 | 87,344,695 | 15,960,540| 182.73 | 16.39 |18,181,371 | 3,212,266| 20.13
1915 |139,092,902 | 22,223,109| 159.77 | 20.65 |21,217,754 | 3,520,090| 15.84
1916 | 72,277,164 | 14,231,941| 196.90 | 10.17 |35,470,438 | 7,079,128| 49.74
1917 | 92,180,326 | 16,654,301| 180.67 | 8.71 |68,253,929 |12,235,902| 73.47
1918 | 55,061,736 | 10,377,029| 188.46 | 3.84 |55,061,641 |10,377,011| 99.99
1919 | 25,094,027 | 8,839,376| 352.25 | 3.91 | 2,313,967 | 818,246| 9.26
1920 | 25,803,044 | 7,433,741| 288.10 | 2.46 | 1,433,311 | 382,409| 5.14
1921 |150,335,314 | 26,146,918| 173.92 | 14.84 |52,928,570 | 8,665,554| 33.14
1922 |173,051,980 | 28,206,146| 162.99 | 14.76 |89,358,118 |14,495,014| 51.00
--------------+------------+-----------+---------+----------+-----------+----------+----------

Until the production of copra in the Philippines is much higher than at present, it will be impossible to keep all the expellers and presses now installed working at full capacity. It is therefore proposed to start a campaign for the planting of quick-growing crops of oil-bearing seeds. Among the plants that were most popular at first was the tañgan-tañgan, or castor bean. This grows very rapidly and yields a very high percentage of castor oil, which was sold at high prices during the war as a lubricant for aeroplanes and other delicate machinery. At the present writing, however, it is generally thought that the mills will do better if they can turn to the production of peanut oil, using imported peanuts to begin with and enlarging the return as the domestic yield increases.

Sugar.--Cane-sugar ranks first among the islands' agricultural exports.

As early as 1795 the United States have been importing sugar from the Philippine Islands; for that year 132 long tons were imported.

Up to the middle of the nineteenth century, however, the production of sugar-cane in the Philippines was confined largely to the provinces of Luzon near Manila. But shortly after the Crimean war the demand for sugar in Europe increased, and interest in the industry was greatly stimulated in the Islands. This resulted in the extension of the industry into the Visayan Islands, Occidental Negros becoming the largest cane producing section of the Archipelago, and so continues until the present day.

As late as 1914 most of the sugar produced in the Islands was muscovado. It was not until the establishment of modern sugar centrals that centrifugal sugar was produced. The production of sugar became so stimulated as a result, and in 1922, as many as 455,404,427 kilos were produced. There are now 28 sugar centrals in the Islands as against one in 1910, and several are in process of construction.

The following table shows the growth of the sugar industry from 1913 to 1922:

------+------------+------------+------------
Year | Area under | Production | Total value
|cultivation | of sugar | of sugar
| | | products
------+------------+------------+------------
| Acres | Short tons |
| | |
1913 | 435,188 | 345,080 | $12,849,000
1914 | 418,676 | 408,343 | 14,314,000
1915 | 427,710 | 421,196 | 16,606,000
1916 | 444,189 | 412,278 | 17,068,000
1917 | 459,436 | 425,270 | 19,352,500
1918 | 507,818 | 474,750 | 20,579,500
1919 | 494,692 | 453,350 | 37,231,400
1920 | 487,783 | 466,917 | 79,648,600
1921 | 596,363 | 589,443 | 48,189,500
1922 | 595,066 | 533,194 | 29,974,125
------+------------+------------+------------

The quantity and value of the exportation of this product is shown below:

--------------+---------------------------------------------+---------------------------------
| To all countries | To the United States
+------------+-----------+---------+----------+-----------+----------+----------
| | | | | | |
Year ended | Quantity | Value | Average |Percentage| Quantity | Value |Percentage
December 31-- | | |value per| of total | | | of total
| | | 1,000 | export | | | sugar
| | | kilos | | | | export
--------------+------------+-----------+---------+----------+-----------+----------+----------
| Kilos | Pesos | Pesos | | Kilos | Pesos |
| | | | | | |
1913 |157,333,707 |14,065,778 | 89.40 | 14.72 | 30,716,886| 3,128,072| 22.24
1914 |236,498,001 |22,119,186 | 93.53 | 22.71 |168,530,115|16,483,706| 74.62
1915 |211,012,817 |22,620,430 | 107.20 | 21.02 | 82,841,168|10,283,159| 45.46
1916 |337,490,000 |37,175,185 | 110.12 | 26.58 |131,885,246|17,267,401| 46.45
1917 |205,908,492 |24,555,357 | 119.25 | 12.84 | 62,377,758|10,811,518| 44.08
1918 |273,258,396 |31,608,780 | 115.67 | 11.69 |106,080,676|16,559,780| 52.39
1919 |136,060,322 |30,415,701 | 223.55 | 13.44 | 32,159,363| 7,717,934| 25.37
1920 |180,340,670 |99,238,520 | 550.28 | 32.83 |123,947,209|78,697,869| 79.30
1921 |289,876,164 |51,037,454 | 176.07 | 28.96 |150,478,581|33,752,357| 66.13
1922 |362,071,661 |51,165,110 | 141.31 | 26.77 |244,851,617|40,020,490| 78.22
--------------+------------+-----------+---------+----------+-----------+----------+----------

Tobacco--The Manila cigar.--The Manila cigar is just as well known to the world as the Manila hemp. It is among the few manufacturing enterprises that have developed factory conditions in the Islands.

[History]

For generations the Spaniards conducted the tobacco business in the Philippines on the basis of Government monopoly. The monopoly came to an end in 1882 when the Filipino workers defied both the Spanish government and those directing the work in the factories because of the harsh and cruel treatment they were getting.

Thereafter, for many years, the tobacco business suffered extreme depression, and it was not until American occupation that the industry received anything of a stimulus. The Manila cigar, however, was then at a disadvantage in comparison with cigars from other countries, because the latter were allowed a discount from the tariff, while the Manilas were required to pay the full customs duty.

With the establishment of free trade, however, between the islands and the United States the Manila cigar has been able to compete with other cigars in the United States, by far the greatest market therefor. This fact accounts for the unprecedented steady increase of the amount of cigars exported from the islands. In 1904 the exports amounted to 104,753,000 cigars, valued at P2,011,790. In 1919 the exports had risen to 392,339,000 worth P18,157,707.

[The Tobacco Region]

Although tobacco is grown in many parts of the islands, all that which is exported comes from the Provinces of Cagayan, Isabela, and Nueva Vizcaya, in northern Luzon. All grown elsewhere is consumed locally, also exported to European and other countries. The tobacco growing districts in these three provinces lie in the valley of the Cagayan River, a stream which is about 160 miles long. The valley is from 2 to 14 miles wide. During the rainy season, which is between the time that one crop is harvested and the next one planted, the Cagayan River rises to a height of 40 feet inundating all of the lowlands. This overflow never fails, and it always leaves on the valley a deposit of rich soil, renewing the fertility of the entire valley and making the use of fertilizers unnecessary. On one field in Cagayan Valley, crops have been produced without interruption and without fertilizer for one hundred and thirty-five years.

[Government control and Guaranty]

No cigar in the world today is produced under such carefully prepared and rigidly enforced regulations as the Manila cigar. The Philippine government has assumed control of the industry, has established invariable standards of excellence, and has guaranteed the production under its own official stamp. If you will examine the next box of Manila cigars you see, you will find that it bears a label stating that its contents are guaranteed by the Philippine government. One of the regulations enforced provides that, under certain limitations, cigars which reach the American dealer in a damaged condition may be returned to the Philippines at the expense of the Philippine government. Another regulation is to the following effect:

"To be up to the standard established by the Government,
Philippine cigars are required to be made from good, clean,
selected tobacco, properly cured and seasoned, exclusively the
product of the Provinces of Cagayan, Isabela, and Nueva Vizcaya,
well made with suitable spiral wrapper and with long filler from
which must have been removed all stems dust, scrap or sun-burned
tobacco; cigars to be properly assorted and packed in clean
receptacles of wood not before used, manufactured from native
wood known as Calantas or from imported cedar. No cigars made
between sunset and sunrise may be graded as standard."

[The Cigar Factories]

The factories in which the Manila cigars are made are worth visiting. They are counted among the show-places of the city. Visitors are always welcome and given an opportunity to follow the entire process of manufacture from the time the bales of tobacco reach the warehouses until the finished cigars are packed in air-tight cases for shipment to all parts of the world.

In these factories every precaution is taken to guard against dirt and disease. No one is employed except after a searching physical examination and thereafter all the employees are regularly examined twice a month. Every now and then, government inspectors visit the factories, and these have a right to condemn a lot of cigars which they do not think is up to the standard.

No scraps of any kind are used in the making of Manila cigars. There are no broken leaves and no dust. There is nothing in the cigar but long, clean leaves of tobacco. The Manila cigar is the mildest made. It is the most pleasant and satisfying smoke that can be had at any price.

CIGARS EXPORTED, 1913-1922

------+------------------------------------------+------------------------------------------------- | To all countries | To the United States +------------+-----------+--------+--------+-------------------+-------------------+--------- | | |Average |Per cent| Number | Value | Average | | |value |of total+------------+------+-----------+-------+ value Year | Number | Value |per |exports | | Per | | Per | per | | |thousand| | Cigars | cent | Pesos | cent | thousand ------+------------+-----------+--------+--------+------------+------+-----------+-------+--------- | | Pesos | Pesos | | | | | | | | | | | | | | | 1913 | 191,762,442| 6,024,468| 31.42 | 6.31 | 71,513,141| 37.29| 3,285,776| 54.54 | 45.95 1914 | 154,753,363| 4,630,318| 29.92 | 4.75 | 56,205,050| 36.32| 2,400,252| 51.84 | 42.71 1915 | 134,647,687| 4,114,605| 30.56 | 3.82 | 61,169,600| 45.43| 2,302,444| 55.96 | 37.64 1916 | 193,025,578| 5,688,751| 29.47 | 4.02 | 111,478,216| 57.75| 4,066,242| 71.48 | 36.47 1917 | 284,524,500| 9,588,192| 33.70 | 5.07 | 202,198,534| 71.07| 7,725,966| 38.20 | 38.29 1918 | 360,144,827| 14,252,637| 39.57 | 5.21 | 248,747,584| 69.07| 11,365,675| 79.85 | 45.69 1919 | 392,339,462| 18,157,707| 46.28 | 8.07 | 263,942,555| 67.27| 13,828,639| 76.16 | 52.39 1920 | 421,545,143| 25,442,276| 60.35 | 8.43 | 316,862,859| 75.17| 21,092,607| 82.90 | 66.57 1921 | 154,879,488| 6,454,886| 41.67 | 3.66 | 68,216,608| 44.04| 3,960,503| 61.36 | 58.06 1922 | 300,484,824| 11,602,219| 38.61 | 6.07 | 173,317,046| 57.68| 8,519,576| 73.43 | 49.16 ------+------------+-----------+--------+--------+------------+------+-----------+-------+---------

SECONDARY FOOD PRODUCTS.--Corn leads in importance among the secondary food products. In 1918 there were 1,035,067 acres grown to corn producing 11,269,258 bushels valued at $10,686,061. The other food crops worth mentioning under this heading are sweet potatoes, cassava, sesame, mongoes, peanuts, bananas, mangoes, citrus, lanzones, and a great number of tropical fruits and vegetables. Including the edible algæ and fungi there are more than 100 species of plants in the Philippines, either wild or cultivated, that find a place in the dietary system of the people. So rich is the country in food producing plants.

PROSPECTIVE AGRICULTURAL INDUSTRIES.--The plants from which the various other tropical staple products in the world's markets are derived, such as rubber, coffee, tea, cacao, pepper, cinchona, and cassava are all known to thrive well in the Philippines, although the growing of those enumerated is yet of comparatively little importance. Rubber has the greatest future of these. The great Island of Mindanao, which is outside the typhoon zone, has been found to be suitable to the growing of rubber. All the large rubber plantations of the Philippines are located on Mindanao or the adjacent Island of Basilan.

During the early years of American occupation, when the acreage planted to rubber in other countries increased by leaps and bounds, the erroneous impression somehow gained ground that the Philippines were unsuited to rubber. And it is not very many years ago that a planter was able to demonstrate beyond doubt that rubber could be grown in the Islands successfully. The company he heads now has some 80,000 rubber trees planted. The success of its operations has induced others to plant rubber, and while the Philippine output of rubber is still insignificant, it may be said that the rubber industry has come to stay.

IRRIGATION.--Irrigation has been practiced in the Philippines in some form for centuries, for, in general, it may be said that the certainty of a rice harvest depends upon irrigation to supplement the natural rainfall. When the rainfall is copious and well distributed during the rice growing season, there is little demand for artificial irrigation but in the event of a drought or irregular rainfall irrigation has to be used to insure a normal rice crop. With irrigation it is also possible to grow two crops of rice a year, whereas without it the planting of one is often hazardous. Prior to 1908 very little attention was given to the development of irrigation systems so that the only irrigation works constructed were by private and communal enterprise. These old systems are found in different parts of the Islands, the most notable being the extensive systems with permanent dams, tunnels, and ditches constructed by the friars and the remarkable side hill terraces built by the mountain people in the subprovince of Ifugao.

Studies of irrigation possibilities have now advanced sufficiently to warrant the Bureau of Public Works recommending a ten-year program for the construction of 40 irrigation systems in 20 of the principal rice producing provinces to water an area of approximately 750,000 acres. It is estimated that these 40 systems will cost about $25,000,000. With these systems completed and operating, there will be no further need of importing rice from other countries.

[Rural Credit]

RURAL CREDIT ASSOCIATIONS.--The Rural Credit Law has removed the restriction in the Corporation Law requiring P200,000 paid-in capital before a bank may be started. Under the new law, associations may incorporate with a paid-in capital as low as P100 or as high as P10,000. The Government does not furnish any financial help except that the organizing staff is paid and maintained by it. To give security to small investors the bonded municipal treasurer acts as treasurer ex-officio of the association and Government auditors audit its books.

The purpose of the Rural Credit Law is to encourage small farmers to coöperate and furnish their own capital. Only one association may be incorporated in a municipality to avoid rivalry and factions.

On October 19, 1916, the first rural credit association was incorporated, and after practically six years, there are now 544 incorporated associations with a paid-in capital of P807,178.

NUMBER OF RURAL CREDIT ASSOCIATIONS AND AVERAGE NUMBER OF STOCKHOLDERS,
AMOUNT OF CAPITAL STOCK PAID UP, AND LOANS MADE IN 1923, BY PROVINCES
AND SUBPROVINCES

Province and Number of Number of Capital Loans subprovince associations stockholders paid up

Pesos Pesos

Abra 11 908 5,766 17,749.72 Agusan 3 222 4,185 4,595.00 Albay 14 1,916 15,188 52,703.05 Antique 12 2,095 35,596 95,237.75 Bataan 8 1,425 20,972 52,535.85 Batangas 15 2,180 31,428 112,678.59 Bohol 34 7,208 6,175 138,243.37 Bulacan 22 2,195 30,824 75,292.80 Cagayan 14 1,355 14,404 41,618.50 Camarines Norte 4 302 4,000 3,903.00 Camarines Sur 20 2,311 27,628 101,468.92 Capiz 24 2,362 34,882 125,913.76 Cavite 17 1,924 28,856 108,447.54 Cebu 14 1,188 20,637 68,348.34 Cotabato 1 141 2,372 2,975.00 Davao 5 527 9,005 9,520.50 Ilocos Norte 16 4,569 18,952 57,974.10 Ilocos Sur 20 3,101 19,726 50,654.86 Iloilo 30 5,076 68,209 199,912.19 Isabela 8 698 7,611 18,093.00 Laguna 20 1,815 21,501 62,233.64 Lanao 1 125 1,984 2,788.96 La Union 14 2,774 21,382 62,891.56 Leyte 10 937 6,711 19,306.70 Masbate 2 98 2,491 2,580.00 Misamis 14 1,415 18,455 26,744.79 Nueva Ecija 19 1,698 30,209 98,095.31 Nueva Vizcaya 6 703 5,189 12,737.76 Oriental Negros 4 269 3,690 7,878.50 Occidental Negros 4 384 11,378 23,295.50 Palawan 2 154 3,544 7,710.00 Pampanga 20 1,826 42,675 117,602.50 Pangasinan 41 9,464 77,146 186,512.29 Rizal 15 1,950 25,700 69,022.50 Romblon 6 544 6,690 10,039.00 Samar 12 1,104 13,759 47,620.35 Sorsogon 9 737 7,724 24,956.10 Surigao 5 386 5,655 15,824.00 Tarlac 15 2,761 39,844 131,155.60 Tayabas 19 2,023 41,898 86,637.99 Zambales 13 2,095 13,028 47,327.59 Zamboanga 1 149 1,114 850.00 --- ------ ------- ------------ Total 544 75,114 807,178 2,401,676.46

FOREST RESOURCES

[Area]

The forests of the Philippines cover about 18,706,093 hectares, or 72,224 square miles, which is about 63.1 per cent of the total area of the Archipelago. Of these number, 16,609,108 hectares or 64,127 square miles, 88.6 per cent of the entire forest area are of a commercial character. In addition, there are estimated to be about 2,096,985 hectares, or 8,096 square miles of second growth forests which will yield large quantities of fine wood and small size timber. It is said that taken together, the virgin and second growth forests in the Islands cover an area about equal to the area of the State of Nebraska.

[Ownership]

More than 99 per cent of the timber belongs to the Philippine government and is under the administrative control of the Bureau of Forestry. Less than 1 per cent is held under title of private ownership.

[Volume of Timber Resource]

The volume of this timber resource of the Philippines is 192,000,000,000 board feet or 777,000,000 cubic meters. Most of the timber belong to the dipterocarp family. The largest reach about 200 feet in height and some specimens have a diameter of 7 feet. The well-known woods of this family are tanguile, red lauan, almon, apitong, guijo, and yakal. These woods have found favorable acceptance in the markets of China and the United States.

Next to the dipterocarp family is the molave family. Among the woods of this family are aranga, duñgon, and molave. There are about 1,036,000 hectares of this timber with a total volume of 7,680,000,000 board feet. These woods are appropriate for railway ties and for building construction purposes.

[Timber Output and Export]

The timber output of the islands was 184,628 cubic meters in 1911; 297,094 cubic meters in 1914; 385,150 cubic meters in 1918 and 630,973 in 1922. It is said that this output can be trebled, even quadrupled, without exhausting the supply for several hundred years.

The export of timber in 1914 was 27,070 cubic meters valued at P681,272; for 1916, 40,164 cubic meters worth P1,030,276; for 1919, 15,704 cubic meters worth P791,823 and for 1922, 43,008 cubic meters worth P1,656,812.

The lumber industry in the islands offers many advantages. The government charges are nominal, ranging from P2.00 to P10.00 per 1,000 board feet according to class. Logging and sawmill equipment and machinery enter free of duty if imported from the United States and only 15 per cent duty, if bought from other countries. For fuel, sawmill waste can be utilized. Water power is available from streams in a number of places.

[Obtaining a Tract of Timber]

The public forests of the Philippines are not sold, but are developed under a license system. Small operators usually work under ordinary yearly licenses for definite small areas. Exclusive licenses, or concessions as they are popularly called, are generally in the form of a twenty-year exclusive license to cut and extract timber and other forest products from a specified tract. The land itself is in no way affected by such a license. Only the timber and minor forest products are included.

[Sawmills]

At present there are about 50 sawmills of all sizes and descriptions operating in the Islands. About 12 of these can be compared to the average modern sawmills in the United States. The largest sawmills are located on timber concessions, while the others are operated under short-term licenses. The total cut of the sawmills of the Philippine Islands is about 100 to 130 million board feet per year.

MINOR FOREST PRODUCTS.--This term includes all products of the forest except timber or lumber. Many of the minor forest products of the Philippines are at present almost unknown in the world's markets and are largely confined to local use.

The most important are nipa, sugar, and alcohol; rattan, used in making furniture; Manila copal or almaciga, used in making high grade varnish; lumbang, a nut-producing high grade oil for varnish; dye-woods and barks; guttapercha and rubber; paper pulp; fibers suitable for making baskets, hats, mats, ropes, etc.; soap barks; pili nuts, declared by many as superior even to almonds; wax; and different kinds of medicinal plants.

MINERALS

The Islands are rich in mineral products, and it should not be long before the working of minerals should constitute one of its basic industries. The most important minerals are gold, silver, lead, zinc, copper, iron, coal, petroleum, sulphur, asphalt, asbestos, manganese, guano, mineral waters, gas, cement, and many others of minor importance.

Gold.--There are a number of successful gold mines in the islands today. One of them is the Colorado mine in Masbate which produces P2,000 worth of gold a day at a cost of P1,000. Other successful mines are those of Paracale, Ambos Camarines; Baguio, Mountain Province; and Aroroy, Masbate. There are large areas of placer ground in Nueva Ecija, Mindanao, and Misamis.

According to an estimate of the Bureau of Science, there are in all 800 to 1,000 square kilometers of placer grounds in the Philippines still undeveloped. The production of gold in 1916 was 2,265,789 fine grams, worth P3,011,755; in 1918 the production was 1,937,941 fine grams valued P2,575,970.

Silver.--Silver is found alloyed with the gold in all of the gold deposits in the ratio of 1 to 4. No attempt has as yet been made to develop the silver mines of the islands. There is no doubt, however, that the silver deposits can be advantageously developed on a commercial basis because the supply of silver in the world is declining and because the neighboring countries, such as China and Japan, are on the silver standard basis.

Iron.--Valuable deposits of high grade iron ores are found in the eastern and southeastern cordilleras of Luzon. Extensive deposits are available in Bulacan, Rizal, Camarines, and Surigao. The Surigao field has a total area of 100 square kilometers with an average depth of 3 meters. The total estimated iron-ore deposit is about 500,000,000 tons. This region is accessible from the coast. The Bulacan deposit contains approximately 1,200,000 tons of ore. No survey has been made of other fields, but it is estimated that at least another 500,000,000 tons of ore are dormant in them. If properly developed, these deposits would yield sufficient ore to meet the local needs for iron and steel products, perhaps with a surplus for exportation. As a result of the economic development of the country, the importation of iron and steel and their manufactures has shown an annual tendency to increase, as may be seen from the following figures:

IMPORTATION OF IRON AND STEEL
AND MANUFACTURES THEREOF

Year

1910 P11,118,916
1913 17,227,808
1918 24,507,970
1919 44,735,174
1920 43,759,204
1921 43,529,079
1922 15,208,761

The demand for iron and steel goods in the Philippines is bound to remain on the ascendant with the daily increase in the use of structural iron and steel for Government buildings as well as for private structures. Here again is another vast field awaiting exploitation by enterprising men and capital.

Manganese.--Manganese deposits are found in Ilocos Norte, Pangasinan, Bulacan, Tarlac, Masbate, and Benguet. Little, if anything, seems to have been done in the way of developing them. This mineral product is of great industrial value and has a sure demand on the world's market. The United States in 1914 imported 288,306 tons of this product, and in 1917, 656,088 tons, valued at P21,000,000.

Coal.--No other mineral deposits are as widely scattered in almost every island of the Archipelago as coal. Extensive deposits which would warrant investments of capital are found in Cebu, Polillo, Mindanao, Masbate, and Mindoro. According to estimates made by the Bureau of Science the probable minimum tonnage of the different grades of coal found in this country is about 68,000,000 metric tons. Tests made by the same bureau show the following figures on the comparative calorific value of imported and local coal:

CALORIFIC VALUES OF VARIOUS COALS

Source of sample Calories

Australia 6,614-6,987
Japan 6,691-7,127
Borneo 6,664
Philippines:
Bataan 4,753
Uling, Cebu 6,733
Polillo 5,925
Negros 4,402
Zamboanga 6,427
Laguna 4,510
Butong 7,779

At present only the Cebu coal fields are extensively developed. The latest data on coal production in the Philippines are 5,407 metric tons for 1917; about 20,000 metric tons for 1918; 40,011 for 1921 and 36,939 for 1922. [1] The importations from 1908 to 1922 were as follows:

IMPORTATIONS OF COAL INTO THE
PHILIPPINE ISLANDS, 1908-1922

Year Quantity Value
Metric ton Pesos

1908 504,244 2,884,764
1914 597,131 3,499,490
1919 400,537 7,781,307
1920 540,056 10,792,077
1921 461,889 6,987,004
1922 461,478 5,009,362

OTHER INDUSTRIES

Fishing.--Philippine waters abound in food fishes of all kinds. However, the amount of fish caught is not even enough to meet the local demand. Fishing is mostly done in shallow water, the methods employed not being adequate for deep-sea fishing. There is great need for modern equipment for purposes of deep-sea fishing. The islands are still a heavy importer of fish products. The City of Manila alone consumes P4,000,000 worth of fresh fish a year.

There are various sea products of the islands, which can be profitably exploited, such as oysters and other shell fish. Raw materials for canning purposes are available. Oil and tomatoes could easily be procured that possess good preserving qualities.

Alcohol.--For the manufacture of alcohol the Philippines offer an abundant supply of raw materials. There is the nipa sap from nipa palms which are found in extensive groves in water swamps. There is the discarded molasses from the sugar mills amounting annually to 7,000,000 gallons. There are fruits, especially bananas, which could be grown in unlimited quantities and manufactured into alcohol. To these, may be added wood-waste and sawdust from the lumber mills.

Cordage.--The manufacture of cordage is another profitable Philippine industry with the promise of a constant world demand. The islands have all the natural advantages for the extensive development of the industry. Abaca, sisal, and maguey affording strong fibers can be grown in abundance. At present the islands are an exporter of cordage. In 1915, 454,621 kilograms were exported; in 1918 the export rose to 2,209,064 kilograms valued at P1,733,968, in 1921 the export 2,631,953 kilos valued at P1,099,378. Most of this was exported to British East Indies, Hongkong and the United States.

Paper and paper pulp.--The industry which for some time has interested the Government and private individuals, and for the development of which nothing substantial so far has been accomplished, is the paper and paper pulp industry. There is at present a large demand for paper pulp in America, Europe, and Japan. According to authorities on the subject, the spruce wood, which forms at least two-thirds of all the woods converted into pulp, is being exhausted. Very recently newspapers in the United States gave accounts of plans to develop the forest resources of Alaska to supply paper pulp for the production of paper. The world's annual paper production is about 8,000,000 tons, and it is estimated that for every ten years there is an increase in demand amounting to 25 per cent.

The Bureau of Science has made an exhaustive study of raw materials available in the Philippines for the manufacture of paper pulp. The investigation shows that there is an abundant supply of raw materials for the manufacture of paper. Among these are bamboo (caña bojo variety), cogon grass, and abaca waste. These materials contain all the elements for the manufacture of an excellent pulp product. The supply of bamboo and cogon grass is almost unlimited thruout the Islands. Bamboo fiber is eminently fitted for the manufacture of pulp used for the making of book papers and for certain grades of writing and lithographic materials.

Cattle raising.--There are extensive grass lands suitable for cattle raising in the islands. Seventy five per cent of the country is a rolling expanse of upland territory to the foot-hills with an elevation of 4,500 feet. Aside from forest areas, there are extensive pasture lands such as the grass-covered hills of Nueva Vizcaya, the Mountain Province, and the green plateaus of Bukidnon in Mindanao. There are now cattle raising projects in those places but there is plenty of room left elsewhere.

Embroidery.--Hand embroidery in the Philippine Islands has been known for over four centuries, having been introduced by Spanish, French, and Belgian nuns, who taught this artcraft to the Filipino women in their convents where exquisitely fine work was done, mainly for Church altars and tapestries used for decorations.

At the present time there are scattered over the Islands, but chiefly in central Luzon, thousands of men, women and children engaged in this enterprise, which is a means of adding to their income, but is not considered the mainstay of their livelihood, as they work only when they prefer to and not of necessity.

France and Belgium, where the embroidery industry was crippled by the war, are coming back into the field, but it is a question whether they will ever again be able to compete with the Philippine Islands in the quality and price of goods. The Filipinos also excel in fine art work done on piña (pineapple fabric) and silk.

In the Philippines, embroidery is a part of the curriculum of all the schools, so that every girl student learns how to embroider from an early age.

The demand for Philippine embroideries greatly exceeds the supply. At present the greatest demand is for ladies' underwear, but there is also a tremendous demand for infants' and children's underwear and fine frocks. The making of children's dresses, especially in the larger sizes, is probably the most complicated of all handmade merchandise, not only in the fine embroidery stitchery but also in the cutting and sewing. This class of workmanship is finding favor by leaps and bounds in the United States.

[Embroidery Factories]

There are about forty embroidery factories in Manila, the entire output of which is practically absorbed by the United States. Recently new markets have opened up, notably India, Australia, and China, where the dainty work of the Filipino women has been much admired.

The following figures show the growth of the embroidery industry of the Philippines during the years indicated:

Year Values of exports

1913 P352,338
1914 324,912
1915 735,303
1916 2,328,024
1917 3,929,318
1918 4,319,501
1919 6,913,004
1920 15,623,567
1921 10,696,207
1922 6,514,597

Perfumes.--The Orient, since the most ancient times, has been famous for perfumes, and in this regard the Philippines are not behind from other oriental countries. Over two scores of aromatic oils from plants have been studied by the Bureau of Science and found to be available for perfumery and medicine; and, as exploration progresses, undoubtedly others will become better known.

Ilang-ilang.--At least one Philippine essential oil, namely ilang-ilang, has enjoyed a world-wide fame among perfumes for several years. Although the oil is extracted also from the flowers of the same tree in other oriental countries, the Philippine product always has brought and still does bring the highest prices in the perfume trade in Europe.

Patchouli oil.--Another oil that has been known in the Orient for thousands of years and in Europe for centuries is patchouli oil. This, while of no commercial importance in the Philippines at present, has a peculiar interest to the botanist, for while the plant is cultivated in many parts of the Orient in considerable quantities, there is no record of its flowering except in the Philippines.

Rattan.--The thirty odd kinds of rattans, and the climbing members of the palm family, furnish strips and reeds for the manufacture of furniture. Considerable exports in rattan were made during the war; and, should the rattan be prepared and graded in a manner similar to what is being done in Singapore, this item of export alone would not only be increased, but much higher prices would be received for the product. Rattan strips are used in enormous quantities all over the Islands as tying material for houses, bridges, wharfs, boats, fish weirs, and so forth, besides being almost the only material used for tying bales of Manila hemp, tobacco, sugar bags, and similar commercial packages.

Shoes.--The shoe industry in the Philippines is in its infant stage. The exportation during 1919 was only 2,368 pairs of leather shoes and 674 pairs of canvas shoes, worth P20,695 and P2,351, respectively. Shoes, however, that left the Islands through the military, probably worth more than the amount given, are not included. On the other hand over P5,000,000 worth of shoes of all kinds were imported in 1919.

There are two factories in the City of Manila manufacturing shoes by machinery. Filipino laborers are employed and have proved competent to undertake all phases of the manufacture of shoes. These factories are making shoes that compare very favorably with the better-grade shoes made in the United States, using only the best imported leathers and other necessary materials from the United States. The two factories have a capacity of about one thousand pairs of shoes per day.

Besides the two factories mentioned, there is also a considerable quantity of shoes manufactured in small shops throughout the City of Manila and the provinces that make their shoes entirely by hand and use a great deal of material produced in the Philippines, especially sole leather and portions of the upper leathers. These small shops turn out products of good quality and make most of their shoes on individual orders.

Hats.--The making of Philippine hats is almost a household industry. Hats manufactured here are as durable and as beautiful as those produced in Panama. Philippine buntal, buri, hemp, and bamboo hats make attractive and comfortable wear. The towns of Baliuag, Bulacan, and Lucban, Tayabas, have become famous for the excellent hats they produce.

The hat industry in the Philippines, although exploited only to a small extent, made it possible for the Islands to record exportation on this product in 1919 amounting to 1,470,026 pesos as compared with only 753,942 pesos worth of hats imported for the same year.

Of the 1,470,026 pesos' worth of hats sent out of the Islands in 1919, 1,280,968 pesos' worth went to the United States. With the increasing popularity which Philippine hats enjoy in the American market, hat exportation to the United States is expected to reach greater proportions. China, with its hundreds of millions of souls, many of whom have already begun to wear hats, is also a big potential market for this Philippine product.

There is one large hat factory in the Philippines which manufactures straw hats, wool hats, and also umbrellas. Its actual annual production reaches half a million straw hats and half a million woolen hats.

Matches.--There is one match factory in the Philippines which supplies a portion of the local need, averaging 70,000 to 80,000 tins annually. One tin contains 1,440 small boxes. This factory has been in operation since eighteen years ago. The Philippines imported last year matches worth 949,205 pesos, while its exports of the same product were only 33,207 pesos.

Pearls.--Pearls abound in Philippine waters, especially in the neighborhood of Mindanao and Sulu. The Japanese go as far as Sulu to fish for pearls. Merchants from Paris and London come to the Islands to get their supply of pearls.

Until 1910 the pearl industry of the Philippines was totally in the hands of Moros and Chinese in Mindanao, who sent their pearls directly to Singapore for sale. After that year jewelry houses in England and France sent their representatives here to purchase pearls, and since then large quantities have been shipped directly to those countries. At present not even one per cent of the pearls fished in Philippine waters remains in the Islands. The rest are shipped out of the country to be manufactured into beautiful jewels, which are sent back to the Islands to be sold at high prices. In 1919 the Islands exported raw pearls valued at 152,543 pesos, while the manufacture pearls that were imported were worth 155,150 pesos.

Buttons.--The raw materials used for the manufacture of shell buttons are trocha, pearl shell, green snail, and the chambered-nautilus. The Islands have an abundant supply of these shells. They are found in the waters of Jolo and also in the vicinity of Sitanki, and the regions farther north, such as the Tañon Strait and along the coasts of most of the Visayan Islands; some are found along the coasts of Pangasinan and Ambos Camarines.

In 1918 the United States alone imported 2,500,000 pesos' worth of buttons; the Philippine exports of this product showed only 251,144 gross in quantity, valued at 231,811 pesos; while the Islands imported buttons worth 119,787 pesos. Japan is supplying one-half of the button importation of America. In 1922, imports were valued at P216,086.

There are two button factories in the Philippines. These two companies use only a very small portion of the suitable material that could be obtained. The annual supply of shells which the Philippines produces is 1,000,000 kilograms. The two local factories use less than 300,000 kilograms a year. This limited local demand for shell and the better prices offered abroad result in the Philippine supply of shells being exported to other lands.

It is estimated that a small button factory, destined only for the local trade and capable of producing fifty gross of buttons daily, would require an investment of about 20,000 pesos, exclusive of the cost of buildings.

PUBLIC LANDS

There are approximately 73,214,742 acres of public land in the Philippine Islands.

Of this area 41,029,900 acres are considered suitable for agriculture, while the total area applied for as homesteads, lease, and sale concession amounts to only 3,159,712 acres. There are still 37,870,188 acres of agricultural domain that have not yet been appropriated.

In the Province of Cotabato alone on the great Island of Mindanao, there are still 3,578,169 acres of agricultural public land not yet occupied nor applied for, and in the Province of Samar, one of the Visayan group, 2,524,388 acres. In the Island of Mindanao and the Sulu Archipelago may also be found some of the most suitable agricultural lands for growing rubber, hemp, coconut, rice, tobacco, and other staple products, which are available to the farmers at practically no expense. The various modes of acquiring public land are explained below.

Homestead.--Any citizen of the Philippine Islands or of the United States, over the age of 18 years, or the head of a family, who does not own more than 59 acres of land in the Philippines may enter a homestead of not exceeding 59 acres of agricultural land of the public domain.

Upon the filing of an application and approval thereof by the Director of Lands, possession may be taken of the land applied for upon payment of $5 as entry fee.

The certificate or patent is issued after the land has been improved and cultivated. The period granted by law to homesteaders for the improvement and cultivation of their claims is from two to five years from and after the date of the approval of the application. After an applicant has complied with all the requirements of the law and the regulations promulgated in accordance therewith, he will be entitled to a patent upon payment of an additional amount of $5, thus making the total homestead fee $10; and small as this amount is, the law gives the homesteader the option to pay for it in annual installments.

Sale of public land.--Any citizen of lawful age of the Philippine Islands or of the United States, and any corporation or association of which at least 61 per centum of the capital stock or of any interest in said capital stock belongs wholly to citizens of the Philippine Islands or of the United States may purchase any tract of public agricultural land of not to exceed 247 acres in the case of an individual and 2,530 acres in that of a corporation or association. Citizens of countries the laws of which grant to citizens of the Philippine Islands the same right to acquire public land as to their own citizens, may, while such laws are in force, but not thereafter, with the express authorization of the Legislature, purchase any parcel of agricultural land, not in excess of 247 acres.

Lands sold in this way must first be appraised by the Director of Lands with the approval of the Secretary of Agriculture and Natural Resources and then sold at public auction. An individual may purchase as much as 247 acres of land and a corporation 2,530 acres and, in addition, lease 2,530 acres.

Lease of public lands.--Another manner of occupying public land is by leasing it. The same conditions required for citizenship of individuals and corporations for the purchase of public lands are laid down regarding leasing public lands, the only exception being that an individual may lease as much as 2,530 acres whereas under the law he may purchase only 247 acres.

The annual rental of lease must be at least equal to three per cent of the appraised valuation of the land, which is subject to reappraisal every 10 years from the date of the approval of the contract. Lease contracts run for 25 years but may be renewed for another period of not to exceed 25 years. In case the lessee shall have made important improvements which, in the discretion of the Secretary of Agriculture and Natural Resources, justify a renewal of the lease, a further renewal for an additional period not to exceed 25 years may be granted.

Friar lands.--The Philippine Government has another kind of land holdings commonly called "Friar Lands." These were formerly estates belonging to the religious corporation which were acquired by the Government for $7,239,784.16.

Any person of legal age may purchase not to exceed 39 acres of the "Friar Lands" estate. A corporation duly registered in the Philippine Islands may purchase as much as 2,530 acres.

Payment for the land may be made in full at the time of the purchase or in annual installments. If purchased on the installment plan the purchaser is allowed 12 years in which to pay the purchase price, beginning January first of the year following the purchase, plus interest of four per cent per annum on the unpaid balance.

After the purchaser has paid for the land applied for by him in full a deed is issued in his favor.