foreign imports at Manila is ruining the Filipinas manufacturers, whose "infant industries" should be protected; and Bernaldez proposes a new schedule, carefully classified. The inter-island trade is exclusively in the hands of the alcaldes-mayor and the rich Chinese and mestizos, who should therefore pay a moderate tax on that lucrative commerce. A colonial currency is urgently needed. An account of the management of the obras pías should be demanded by the government, and those funds should be employed in promoting agriculture and industry in the islands. The shipbuilding and mining carried on by the government ought to be furnished by private persons under contract. Agriculture is the most important industry of Filipinas, and a feeder to its commerce; its backward condition should be remedied. He recommends direct and unlimited commerce between Spain and the islands, government encouragement to large agricultural enterprises, instruction of the Indians in better methods of agriculture and the preparation of its products, and rewards for industry and application on their part. The production of opium for the Chinese market ought to be allowed in Filipinas, and heavy duties collected on its exportation. Enormous sums of money are yearly carried to India and China for fine cotton goods, which could as well be manufactured by the Filipinos if they knew how to dye these properly and had machinery for spinning the cotton thread; the government should take active and prompt measures to secure this desirable end. Closer relations should be established with Spain, whose government and merchants are urged to work together in behalf of this. Bernaldez concludes by showing "the necessity of forming a special code of laws for Filipinas," and of
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PREFACE
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