[Need of nautical school.] The want of a public school for the teaching of navigation, is, however, sensibly felt, as well as great inconvenience from the scarcity of persons capable of being trusted with the command of vessels, and the ignorance that prevails of the waters of this dangerous Archipelago.  Repeated royal orders have been sent over for the board of trade to proceed to the institution of so useful an establishment, and in the meantime, a medium has been resorted to in order to supply the deficiency, by allowing the free admission of foreign mates, provided they exhibit proofs of their acquaintance with navigation, and profess the Catholic worship.  Shipowners nevertheless experience great difficulties, particularly at times when the Acapulco ship is fitting out, for although she is considered as a vessel of war, and commanded by officers of the royal navy, the plan of her equipment is so singular, that in addition, she requires the extra aid of one chief mate, and three under ones.

[Royal Phillipine company.] The various modifications this corporate body has successively experienced, have, in great measure, changed the essence of its original constitution, and the remonstrances of its directors, founded on the experience of a long series of years, at length induced the government at home to sanction alterations dictated by existing circumstances.  The project of raising these Islands from the neglected state in which they were, and in some measure to place them in contact with the mother country, accompanied by a wish to give a new and great impulse to the various branches of industry which constitute the importance of a colony, could not have been more laudable; but, as was afterwards seen, the instrument employed was not adequate to the object in view.  At the same time that the company were charged to promote, and, by means of their funds, to vivify the agriculture and industry of these provinces, the necessary powers and facilities to enable them to reap the fruits of their sacrifices were withheld.  The protection granted to this establishment, did not go beyond a general recommendation in favor of its enterprises, and, in short, far from enjoying the exclusive preponderance obtained at their commencement by all the other Asiatic companies, that of the Philippine Islands labored under particular disadvantages.

[Local progress under adverse conditions.] Notwithstanding an organization so imperfect, scarcely had the agents of the new Company arrived at Manila, when they distributed through the country their numerous dependents, commissioned to encourage the natives by advances of money.  They established subaltern factories in the Provinces of Ilocos, Bataan, Cavite, and Camarines; purchased lands; delivered out agricultural implements; founded manufacturies of cotton cloths; contracted for the crops of produce at very high prices; offered rewards and, in short, they put in motion every partial resources