[Limited output.] The factory produces fifteen hundred tinajas of oil. It is in operation only nine months in the year; from December to February the transport of nuts being prevented by the tempestuous seas, there being no land communication. The manufacturer was not successful in procuring nuts from the immediate vicinity in sufficient quantity to enable him to carry on his operations without interruption, nor, during the favorable season of the year, could he lay up a store for the winter months, although he paid the comparatively high price of three dollars per thousand.
[Illogical business.] While the natives manufactured oil in the manner just described, they obtained from a thousand nuts three and a half pots, which, at six reals each, fetched twenty-one reals; that is three reals less than was offered them for the raw nuts. These data, which are obtained from the manufacturers, are probably exaggerated, but they are in the main well founded; and the traveller in the Philippines often has the opportunity of observing similar anomalies. For example, in Daet, North Camarines, I bought six coconuts for one cuarto, at the rate of nine hundred and sixty for one dollar, the common price there. On my asking why no oil-factory had been erected, I received for answer that the nuts were cheaper singly than in quantities. In the first place, the native sells only when he wants money; but he knows that the manufacturer cannot well afford to have his business suspended; so, careless of the result, he makes a temporary profit, and never thinks of ensuring for himself a permanent source of income.