[Manufactures.] ....  It would be impossible to gainsay Don Juan Francisco Urroz, of the Philippine Company, in his detailed and accurate report to the managing committee in 1802, when he observes: 

“That the Philippine Islands, from time immemorial, were acquainted with, and still retain, that species of industry peculiar to the country, adapted to the customs and wants of the natives, and which constitutes the chief branch of their clothing.  This, although confined to coarse articles, may in its class be called perfect, as far as it answers the end for which it is intended; and if an attempt were made to enumerate the quantity of mats, handkerchiefs, sheeting, and a variety of other cloths manufactured for this purpose only in the Provinces of Tondo, Laguna, Batangas, Ilocos, Cagayan, Camarines, Albay, Visaya, etc., immense supplies of each kind would appear, which give occupation to an incalculable number of looms, indistinctly worked by Indians, Chinese, and Sangleyan mestizos, indeed all the classes, in their own humble dwellings, built of canes and thatched with palm leaves, without any apparatus of regular manufacture.”

[Native cloth weaving.] With equal truth am I enabled to add, that the natural abilities of these natives in the manufacture of all kinds of cloths, fine as well as coarse, are really admirable.  They succeed in reducing the harsh filaments of the palm-tree, known by the name of abaca, to such a degree of fineness, that they afterwards convert them into textures equal to the best muslins of Bengal.  The beauty and evenness of their embroideries and open work excite surprise; in short, the damask table-cloths, ornamental weaving, textures of cotton and palm-fibres, intermixed with silk, and manufactured in the above-mentioned provinces, clearly prove how much the inhabitants of the Philippine Islands, in natural abilities and dexterity, resemble the other people of the Asiatic regions.  It must nevertheless be allowed, that a want is noticed of that finish and polish which the perfection of art gives to each commodity; but this circumstance ought not to appear strange, if we consider that, entirely devoid of all methodical instruction, and ignorant also of the importance of the subdivision of labor, which contributes so greatly to simplify, shorten, and improve the respective excellence of all kinds of works, the same natives gin and clean the cotton, and then spin and weave it, without any other instruments than their hands and feet, aided only by the course and unsightly looms they themselves construct in a corner of their huts, with scarcely anything else than a few canes and sticks.

[Aptitude for, but no development of, manufacturing.] From the preceding observations it may easily be deduced that, although the natives succeed in preparing, with admirable dexterity, the productions of their soil, and therewith satisfy the greatest part of their domestic wants, facts which certainly manifest their talents and aptitude to be employed in works of more taste and delicacy, manufacturing industry is nevertheless far from being generalized, nor can it be said to be placed with any degree of solidity on its true and proper basis.  Hence arise those great supplies of goods annually imported into the country, for the purpose of making up the deficiencies of the local manufactures.