[Improved methods and machinery needed.] The regular distribution or classification of the assemblage of operations which follow each other in graduation, from the rough preparation of the first materials, till the same have arrived at their perfect state of manufacture, instead of being practiced, is entirely unknown.  The want of good machinery to free the cotton from the multitude of seeds with which it is encumbered, so as to perform the operation with ease and quickness, is the first and greatest obstacle that occurs; and its tediousness to the natives is so repugnant, that many sell their crops to others, without separating the seeds, or decline growing the article altogether, not to be plagued with the trouble of cleaning it.  As the want of method is also equal to the superabundance or waste of time employed, the expenses of the goods manufactured increased in the same proportion, under such evident and great disadvantages; for which reason, far from being able to compete with those brought from China and British India, they only acquire estimation in the interior, when wanted to supply the place of the latter, or in cases of accidental scarcity.

[Scanty exports.] In a word, the only manufactured articles annually exported from the Philippine Islands are eight to twelve thousand pieces exports of light sail cloth, two hundred thousand pounds of abaca cordage assorted, and six hundred carabao hides and deer skins, which can scarcely be considered in a tanned state/ for, although the Royal Company, from the time of their establishment, long continued to export considerable quantities of dimities, calicos, stripes, checks, and coverlids, as well as other cotton and silk goods, it was more with a view to stimulate the districts of Ilocos to continue in the habit of manufacturing, and thus introduce among the inhabitants of that province a taste for industry, than the expectation of gain by the sale of this kind of merchandise either in Spain or any of the sections of America.  At length, wearied with the losses experienced by carrying on this species of mercantile operations, without answering the principal object in view, they resolved, for the time being, to suspend ventures attended with such discouraging circumstances.

[Need of encouragement.] Notwithstanding so many impediments, it would not, however, be prudent in the government entirely to abandon the enterprise, and lose sight of the advantages the country offers, or indeed, to neglect turning the habitual facilities of the natives to some account.  Far from there existing any positive grounds for despairing of the progress of manufacturing industry, it may justly be presumed that, whenever the sovereign, by adopting a different line of policy, shall allow the unlimited and indistinct settlement of all kinds of foreign colonists, and grant them the same facilities and protection enjoyed by national ones, they will be induced to flock to the Philippine Islands in considerable numbers, lured by the hope