Owing to the scarcity of manufacturing industries in this Colony, the consumption of Coal is very limited, and up to 1889 it hardly exceeded 25,000 tons per annum. In 1892 nearly double that quantity found a market. In 1896 the coal imported from Newcastle (New South Wales) alone amounted to 65,782 tons; in 1897 to 89,798 tons. A small proportion of this is employed in the forges, foundries, and a few steam-power factories, most of them situated around Manila, but by far the greater demand is for coaling steam-ships. Since the American occupation the increase of steam-shipping and the establishment of ice-plants all over the Colony have raised the consumption of coal. Wood fuel is still so abundant in rural districts that coal will probably not be in general request for the steam sugar-mills for many years to come.

Australia, Great Britain, and Japan supply coal to this Colony; in 1892 Borneo traders sent several cargoes of inferior product to Manila; nevertheless, local capital has been expended from time to time in endeavours to work up the home deposits.

Philippine coal is more correctly speaking highly carbonized lignite of the Tertiary age, and analogous to Japanese coal. Batan Island, off the south-east coast of Luzon Island, is said to have the finest lignite beds in the Archipelago.

The island of CebÚ contains large deposits of lignite. The mines of Compostela are estimated to be very rich in quantity and of medium quality. The late owner, Isaac Conui, for want of capital, was unable to develop them fully. Transport by buffalo-carts from the mines to the coast was very deficient and costly, and Conui, who was frequently my guest in Manila in 1883, unsuccessfully sought to raise capital for constructing a line of railway from the collieries to Compostela village (east coast). They were then taken up by a Spaniard, with whom the Spanish Government made contracts for coaling the gunboats. A tram line was laid down to the pits, but there was a great lack of promptitude in deliveries, and I heard of ships lying off the coaling-wharf for several hours waiting to start coaling. The enterprise has by no means given an adequate return for the over ?100,000 invested in it up to the year 1897. The coal-mine of Danao, on the same coast, has not been more prosperous. When I visited it in 1896 it had not yielded a cent of nett profit. In 1904 I made the acquaintance, in CebÚ Island, of a holder of ?47,000 interest in this enterprise. He told me that he had got no return for his money in it. He had spent ?1,000 himself to have the mine inspected and reported on. He sent the report to his co-partners in Manila, and heard no more about it until he went to the capital, where he learnt that the Managing Director had resigned, and no one knew who was his successor, what had become of his report, or anything definite relating to the concern.

Anthracite has been found in CebÚ,1 and satisfactory trials have been made with it, mixed with British bituminous coal. Perhaps volcanic action may account for the volatile bituminous oils and gases having been driven off the original deposits. The first coal-pits were sunk in CebÚ in the Valle de Masanga, but the poor commercial results led to their abandonment about the year 1860. There are also extensive unworked coal deposits a few miles from the west coast village of Asturias, which I visited in 1896 with a planter friend, Eugenio Alonso, who was endeavouring to form a coal-mining syndicate. The Revista Minera (a Madrid mining journal) referred in 1886 to the coal of the AlpacÓ Mountain, in the district of Naga (CebÚ Is.) as being pure, dry, of easy combustion, carrying a strong flame, and almost free from sulphur pyrites. CebÚ coal is said to be of better quality and cleaner than the Labuan and Australian products, but its heating powers being less, it is less serviceable for long sea voyages.

The coal-mines in the hills around the Cumansi Valley, about eight miles from the CebÚ coast (Danao) have been worked for years without financial success. The quality is reported excellent. Indeed, in several of the larger islands of the Colony there are outcrop indications of workable coal, unobtainable for want of transport facilities.

In the Province of Albay, the SÚgod Collieries were started by a company formed in the year 1874. There were some fifteen partners, each of whom subscribed a capital of ?14,300. One of these partners, Ceferino de ArÁmburu, told me that for a while the result was so good that a Manila banking firm offered to take over the concern from the shareholders at a premium of 20 per cent. upon the original capital. About 4,000 tons of coal were extracted, most of which was given away as samples, in the hope of large contracts resulting from the trials, although it is said that the consumption was too rapid, and that it had to be mixed with Cardiff coal. Seven pits were sunk, and the concern lingered on until the year 1881, when its working was relinquished. The failure was attributed to the shallowness of the pits, which were only 30 metres deep, whilst it was supposed that if the excavation had been continued before these pits were flooded, shale and limestone strata could have been removed, exposing a still more valuable seam, in which case it might have been worth while providing pumping-machinery. The cost of extraction and delivery on the coast was estimated at 75 cents of a peso per ton, whilst Cardiff coal in Manila was worth, at the time, about eight pesos per ton, and the Australian product ranged usually at one to one and a half pesos below that figure, port tax unpaid.

In January, 1898, “The Philippine Mining and Development Company, Limited,” was formed in Hong-Kong with a capital of $1,600,000 (Mex.) in 160,000 $10 shares for the development of Philippine coal deposits and other industries, under the management of a Scotch merchant of long standing and good repute in Manila (since deceased). The Spanish-American conflict which arose four months later impeded active operations by the company.

In May, 1902, a company styled “Minas de Carbon de Batan” was constituted to purchase from and exploit the coal-mines of Messrs. Gil Hermanos, situated in the Island of Batan, SorsogÓn Province. The purchase price was fixed at ?500,000, and the company's capital at ?1,000,000 divided into 5,000 equal shares. Hopeful reports were made on the property by an American, a Spanish, and a Japanese mining engineer respectively. When I interviewed the Managing Director of the company, in Manila, two years after its formation, no dividend had yet been paid to the shareholders.

Comparative Analyses of Coal

I do not know that any capitalist has ever received an adequate return for his investment in Philippine coal-mining.

From the earliest period of the Spanish occupation of these Islands, attention has been given to Gold-seeking.

It is recorded that in the year 1572 Captain Juan Salcedo (Legaspi's grandson) went to inspect the mines of Paracale, (Camarines); and in the same district the village of Mambulao has long enjoyed fame for the gold-washing in its vicinity.

In the time of Governor Pedro de Arandia (1754–59), a certain Francisco Estorgo obtained licence to work these Paracale mines, and five veins are said to have been struck. The first was in the Lipa Mountain, where the mine was called “San NicolÁs de Tolentino”; the second, in the DobÓjan Mountain, was called “Nuestra SeÑora de la Soledad de Puerta Vaga”; the third, in Lipara, was named “Mina de las Animas”; the fourth, in the territory of San Antonio, took the name of “San Francisco,” and the fifth, in the Minapa Mountains, was named “Nuestra SeÑora de los Dolores,” all in the district of Paracale, near the village of Mambulao. The conditions of Estorgo's licence were, that one-fifth (real quinto) of the output should belong to the King; that Estorgo was authorized to construct, arm, and garrison a fort for his own defence against anticipated attacks from Mahometans, and that he should have the title of Castellano, or guardian of the fort. It was found necessary to establish the smelting-works in Mambulao, so he obtained a licence to erect another fort there on the same conditions, and this fort was named “San CÁrlos.” In a short time the whole enterprise came to grief. Estorgo's neighbours, instigated by native legal pettifoggers in Manila, raised endless lawsuits against him; his means were exhausted, and apparatus being wanted to work the mines, he had to abandon them.

About the same time, the gold-mines of Pangotcotan and Acupan (Benguet district) were worked to advantage by Mexicans, but how much metal was won cannot be ascertained. The extensive old workings show how eagerly the precious metal was sought in the past. The Spanish Government granted only concessions for gold-mining, the title remaining in the Crown. Morga relates (1609) that the Crown royalty of one-tenth (vide p. 53) of the gold extracted amounted to ?10,000 annually. According to Centeno, the total production of gold in all the Islands in 1876 did not not exceed ?3,600.

During the Government of Alonso Fajardo de Tua (1618–24) it came to the knowledge of the Spaniards that half-caste Igorrote-Chinese in the north of Luzon peacefully worked gold-deposits and traded in the product. Therefore Francisco CarreÑo de ValdÉs, a military officer commanding the Provinces of PangasinÁn and Ilocos, obtained permission from the Governor to make a raid upon these Igorrote-Chinese and appropriate their treasure-yielding territory. After a seven days' march the Spanish gold-seekers and troops arrived at the deposits, where they took up their quarters without resistance. The natives held aloof whilst mutual offers of peace were made. When the Spaniards thought they were in secure possession of the neighbourhood, the natives attacked and slaughtered a number of them. The commander of the district and the leader of the native troops were among the slain. Then they removed the camp to a safer place; but provisions ran short and the wet season set in, so the survivors marched back to the coast with the resolution to renew their attempt to possess the spoil in the following year. In the ensuing dry season they returned and erected a fort, whence detachments of soldiers scoured the neighbourhood to disperse the Igorrote-Chinese, but the prospectors do not appear to have procured much gold.

Many years ago a Spanish company was formed to work a gold-mine near the mountain of Malaguit, in the Province of Camarines Norte, but it proved unsuccessful.

At the beginning of last century a company was founded, under the auspices of the late Queen Christina of Spain (great-grandmother of the present King AlfonsoXIII.), which was also an utter failure. I was told that the company had spacious offices established in Manila, whence occasionally the employees went up to the mines, situated near the Caraballo Mountain, as if they were going to a picnic. When they arrived there, all denoted activity—for the feast; but the mining work they did was quite insignificant compared with the squandered funds, hence the disaster of the concern.

The coast of Surigao (north-east extremity of Mindanao Is.) has been known for centuries to have gold-deposits. A few years ago it was found in sufficiently large quantities near the surface to attract the attention of capitalists. A sample of the washings was given to me, but gold extraction was never taken up in an organized way in that district. A friend of mine, a French merchant in Manila, told me in 1886 that for a long time he received monthly remittances of 4½ to 5½ lbs. of alluvial gold from the Surigao coast, extracted by the natives on their own account. In the same district a Spaniard attempted to organize labour for systematic gold-washing, but the friars so influenced the natives against him that he could only have continued his project at the risk of his life, therefore he gave it up.

In an independent way, the natives obtain gold from earth-washings in many districts, particularly in the unsubdued regions of Luzon Island, where it is quite a common occupation. The product is bartered on the spot to the Chinese ambulant traders for other commodities. Several times, whilst deer-stalking near the river, a few miles past MontalbÁn (Rizal), I have fallen in with natives washing the sand from the river bed in search of gold, and they have shown me some of their findings, which they preserve in quills.

In other places in Luzon Island gold is procured in very small quantities by washing the earth from the bottoms of pits dug from 20 to 25 feet deep and 3 feet wide. The extraction of gold from auriferous rock is also known to the natives. The rock is broken by a stone on an anvil of the same material. Then the broken pieces are crushed between roughly-hewn stone rollers put in motion by buffaloes, the pulverized ore being washed to separate the particles of the precious metal. I should hardly think the yield was of much account, as the people engaged in its extraction seemed to be miserably poor.

Gold probably exists in all the largest islands of the Archipelago, but in a dispersed form; for the fact is, that after centuries of search, large pockets or veins of it have never been traced to defined localities, and, so far as discoveries up to the present demonstrate, this Colony cannot be considered rich in auriferous deposits. Until the contrary has been proved, I venture to submit the theory that every gold-bearing reef in these Islands, accessible to man, has been disintegrated by volcanic action ages ago.

In 1887 a Belgian correspondent wrote to me inquiring about a company which, he stated, had been formed for working a Philippine mine of Argentiferous Lead. On investigation I learnt that the mines referred to were situated at AcsÚbing, near the village of Consolacion, and at Panoypoy, close to the village of Talamban in CebÚ Island. They became the property of a Frenchman2 about the beginning of 1885, and so far no shipment had been made, although the samples sent to Europe were said to have yielded an almost incredibly enormous amount of gold (!), besides being rich in galena (sulphide of lead) and silver. I went to CebÚ Island in June, 1887, and called on the owner in Mandaue with the object of visiting these extraordinary mines; but they were not being worked for want of funds, and he left for Europe the same year, the enterprise being finally abandoned.

In 1893 “The Philippines Mineral Syndicate” was formed in London to work scientifically the historical Mambulao Gold Mines already referred to. One pound shares were offered in these Islands and subscribed to by all classes, from the British Consul at that time down to native commercial clerks. Mr. James Hilton, a mining engineer, had reported favourably on the prospects. After the usual gold-mining period of disappointment had passed away, an eccentric old gentleman was sent out as an expert to revive the whole concern and set it upon a prosperous basis. I had many conversations with him in Manila before he went to Mambulao, where he soon died. Heavy machinery came out from Europe, and a well-known Manila resident, not a mining engineer, but an all-round smart man, was sent to Mambulao, and, due to his ability, active operations commenced. This most recent earnest venture in Philippine gold-mining has not, however, so far proved to be a Golconda to the shareholders.

That there is gold in Mindoro Island is evident from the fact that the Minguianes, a wild tribe, wear gold jewellery made by themselves, and come down to the coast villages to barter with this metal, for they do not understand trading with the coin medium.

As a general rule, failure in most Philippine mining speculations was chiefly due to the unwillingness of the native to co-operate with European capitalists in search of quick fortunes for themselves. The native rustic did not seek and would not submit to constant organized and methodical labour at a daily wage, to be paid periodically when he had finished his work. The only class whom one could employ in the neighbourhood of the mines was migratory and half-subjected, whilst there was no legislation whatever in force regulating the relations between workers and capitalists. Some suggested the employment of Chinese, but the obstacles to this proposal have been pointed out in Chap. viii. It is very doubtful whether much profitable mining will ever be done in this Colony without Chinese labour. Again, the wretched state of the public highways obliged the few enterprising capitalists to spend their money on the construction of roads which had already been paid for in taxes.

It is calculated that in the working of mines in the Philippines, as much as ?1,300,000 was spent from the beginning of the last century up to 1876, without the least satisfactory result.

A Spanish writer3 asserts that on the coasts of Taal and Bauan, in the Province of Batangas, there were many traces of old gold-mines, and remarks: “We are already scared in this enlightened century at the number who have spent their silver and their health in excavating mines in the Philippines, only to undeceive themselves, and find their miserable greed punished.”

Still Gold-seeking continues, and the hope of many an American to-day is centred in the possibility of finding the smile of fortune in the Benguet and other districts now being scoured by prospectors.

Iron-mines, situated a few miles from Manila, were worked about the middle of the 18th century by Government, but the result being disastrous, a concession of working rights was put up to public auction, and adjudicated to a certain Francisco Salgado, who engaged to pay annually to the State ?20,500 in gold and 125 tons of iron. The concern was an entire failure, chiefly owing to the usual transport difficulty. Salgado afterwards discovered an iron mine in a place called Santa InÉs, near Bosoboso, in the district of MÓrong, and obtained a concession to work it. The ore is said to have yielded 75 per cent. of pure metal. The greatest obstacle which Salgado had to contend with was the indolence of the natives, but eventually this was overcome by employing Chinese in their stead. All went well for a time, until the success which attended the undertaking awoke envy in the capital. Salgado found it desirable to erect his smelting-furnaces on the banks of the Bosoboso River to obtain a good water supply. For this a special permission had to be solicited of the Gov.-General, so the opportunity was taken to induce this authority to put a stop to the whole concern on the ground that the Chinese workmen were not Christians! Salgado was ordered to send these Chinese to the Alcayceria in Binondo (Manila), and ship them thence to China at his own expense. Moreover, on the pretext that the iron supplied to the Royal Stores had been worked by infidels, the Government refused to pay for the deliveries, and Salgado became a ruined victim of religious fanaticism.

The old parish priest of Angat, in Bulacan Province, once gave me the whole history of the rich iron-mines existing a few miles from that town. It appears that at about the beginning of last century, two Englishmen made vain efforts to work these mines. They erected expensive machinery (which has since disappeared piece by piece), and engaged all the headmen around, at fixed salaries, to perform the simple duty of guaranteeing a certain number of men each to work there daily. The headmen were very smart at receiving their pay, some of them having the audacity to ask for it in advance; yet the number of miners diminished, little by little, and no reasonable terms could induce them to resume work. The priest related that, after the Englishmen had spent a fortune of about £40,000, and seeing no result, in despair they hired a canoe, telling the native in charge to paddle out to sea, where they blew their brains out with pistols.

Afterwards a Spaniard, who had made money during years of office as Chief Judge and Governor of the Bulacan Province, thought he could, by virtue of the influence of his late position, command the services of all the labourers he might require to work the mine. It was a vain hope; he lost all his savings, and became so reduced in circumstances that for a long time he was a pauper, accepting charity in the parish convents of the province.

The Angat iron-mines undoubtedly yield a very rich ore—it is stated up to 85 per cent. of metal. Up to the Revolution they were still worked on a small scale. In 1885, at the foot of these ferruginous hills, I saw a rough kind of smelting-furnace and foundry in a dilapidated shed, where the points of ploughshares were being made. These were delivered at a fixed minimum price to a Chinaman who went to Binondo (Manila) to sell them to the Chinese ironmongers. In Malolos (Bulacan) I met one of the partners in this little business—a Spanish half-caste—who told me that it paid well in proportion to the trifling outlay of capital. If the natives chose to bring in mineral they were paid for it; when they did not come, the works and expenses were temporarily stopped.

In Baliuag, a few miles from Angat, where I have stayed a score of times, I observed, at the threshold of several houses, slabs of iron about 8 feet long by 2 feet wide and 5 inches thick. I inquired about the origin of this novelty, and several respectable natives, whom I had known for years, could only inform me that their elders had told them about the foreigners who worked the Angat mines, and that the iron in question came from there. Appearing to belong to no one in particular, the slabs had been appropriated.

Copper is extracted in small quantities by both the wild tribes of the North and the Mahometans of the South, who manufacture utensils of this metal for their own use. In the North, half-worked copper is obtained from the Igorrotes, but the attempt of a company—the CompaÑia Cantabro-Filipina, established in the middle of last century—to exploit the copper deposits in Mancayan, in the district of Lepanto, has hardly been more successful than all other mining speculations undertaken on a large scale in this Colony.

Marble exists in large beds in the Province of Bataan, which is the west-coast boundary of Manila Bay, and also in the Island of Romblon, but, under the circumstances explained, no one cared to risk capital in opening quarries. In 1888 surface (boulder) marble was being cut near MontalbÁn (Rizal) under contract with the Dominican friars to supply them with it for their church in Manila. It was of a motley whitish colour, polished well, and a sample of it sent by me to a marble-importer in London was reported on favourably.

Granite is not found in these Islands, and there is a general want of hard stone for building purposes. Some is procurable at Angono, up the Lake of Bay, and it is from here that the stone was brought by the Spaniards for the Manila Port Works. Granite is brought over from Hong-Kong when needed for works of any importance, such as the new Government House in Manila City, in course of construction when the Spaniards evacuated the Islands. For ordinary building operations there is a material—a kind of marl-stone called Adobe—so soft when quarried that it can be cut out in small blocks with a hand-saw, but it hardens considerably on exposure to the air.

Gypsum deposits occur in a small island opposite to the town of Culasi (Antique) on the west coast of Panay, called Marilisan. The superincumbent marl has been removed in several places where regular workings were carried on for years by natives, and shiploads of it were sent to Manila until the Spanish Government prohibited its free extraction and export.

Sulphur exists in many islands, sometimes pure, in unlimited quantities, and often mixed with copper, iron, and arsenic. The crater peak of the Taal Volcano in the BÓmbon Lake burst in 1749 (vide p. 18), and from that date, until the eruption of 1754, sulphur was extracted by the natives. These deposits were again worked in 1780, and during a few years following. Bowring states4 that a well-known naturalist once offered a good sum of money for the monopoly of working the sulphur mines in the Taal district.

Mineral oil was discovered some 12 years ago in the mountains of CebÚ Island, a few miles from the west-coast town of Toledo. A drill-boring was made, and I was shown a sample of the crude Oil. An Irishman was then conducting the experimental works. Subsequently a British engineer visited the place, and reported favourably on the prospects. In 1896 I was again at the borings. Some small machinery had been erected for working the drills. A Dutch mining engineer was in charge of the work, which was being financed by a small British syndicate; but so far a continuous flow had not been obtained, and it was still doubtful whether a well had been struck or not. The Dutchman was succeeded by an American, who, when the Spanish-American War was on the point of breaking out, had to quit the place, and the enterprise has since remained in suspense.

There is a tendency, in most new and unexplored countries, to see visionary wealth in unpenetrated regions—to cast the eye of imagination into the forest depths and the bowels of the earth, and become fascinated with the belief that Nature has laid vast treasures therein; and the veil of mystery constitutes a tradition until it is rent by scientific investigation.