In 1839 the penalties against the Chinese were somewhat mitigated, but those against the magistrates were still maintained on account of their venality.  In 1843 Chinese ships were placed upon terms of equality with those of other foreign countries (Leg.  Ult., II., 476).  In 1850 Captain-General Urbiztondo endeavored to introduce Chinese colonial farming, and with this object promised a reduction of the taxes to all agricultural immigrants.  Many Chinese availed themselves of this opportunity in order to escape the heavy poll-tax; but in general they soon betook themselves to trading once more.

[Oppressive taxation.] Of late years the Chinese have not suffered from the terrible massacres which used formerly to overtake them; neither have they suffered banishment; the officials being content to suppress their activity by means of heavy and oppressive taxes.  For instance, at the end of 1867 the Chinese shopkeepers were annually taxed $50 for permission to send their goods to the weekly market; this was in addition to a tax of from $12 to $100 on their occupations; and at the same time they were commanded thenceforth to keep their books in Spanish (English Consular Report, 1859).

[Excellent element in population.] The Chinese remain true to their customs and mode of living in the Philippines, as they do everywhere else.  When they outwardly embrace Christianity, it is done merely to facilitate marriage, or from some motive conducive to their worldly advantage; and occasionally they renounce it, together with their wives in Manila, when about to return home to China.  Very many of them, however, beget families, are excellent householders, and their children in time form the most enterprising, industrious, and wealthy portion of the resident population.

[Formidable competitors.] Invigorated by the severe struggle for existence which they have experienced in their over-populated country, the Chinese appear to preserve their capacity for labor perfectly unimpaired by any climate.  No nation can equal them in contentedness, industry, perseverance, cunning, skill, and adroitness in trades and mercantile matters.  When once they gain a footing, they generally appropriate the best part of the trade to themselves.  In all parts of external India they have dislodged from every field of employment not only their native but, progressively, even their European competitors.  Not less qualified and successful are they in the pursuance of agriculture than in trade.  The emigration from the too thickly peopled empire of China has scarcely begun.  As yet it is but a small stream, but it will by-and-by pour over all the tropical countries of the East in one mighty torrent, completely destroying all such minor obstacles as jealous interference and impotent precaution might interpose.

[Sphere of futureinflunce.] Over every section of remote India, in the South Sea, in the Indian Archipelago, in the states of South America, the Chinese seem destined, in time, either to supplant every other element, or to found a mixed race upon which to stamp their individuality.  In the Western States of the Union their number is rapidly on the increase; and the factories in California are worked entirely by them, achieving results that cannot be accomplished by European labor.