<P> The development of the Philippines as a source of raw materials and as a market for European manufactures created much local wealth . Many Filipinos prospered . Everyday Filipinos also benefited from the new economy with the rapid increase in demand for labor and availability of business opportunities . Some Europeans immigrated to the Philippines to join the wealth wagon, among them Jacobo Zobel, patriarch of today's Zobel de Ayala family and prominent figure in the rise of Filipino nationalism . Their scions studied in the best universities of Europe where they learned the ideals of liberty from the French and American Revolutions . The new economy gave rise to a new middle class in the Philippines, usually not ethnic Filipinos . </P> <P> In the mid-19th century, the Suez Canal was opened which made the Philippines easier to reach from Spain . The small increase of Peninsulares from the Iberian Peninsula threatened the secularization of the Philippine churches . In state affairs, the Criollos, known locally as Insulares (lit . "islanders"). were displaced from government positions by the Peninsulares, whom the native Insulares regarded as foreigners . The Insulares had become increasingly Filipino and called themselves Los hijos del país (lit . "sons of the country"). Among the early proponents of Filipino nationalism were the Insulares Padre Pedro Peláez, archbishop of Manila, who fought for the secularization of Philippine churches and expulsion of the friars; Padre José Burgos whose execution influenced the national hero José Rizal; and Joaquín Pardo de Tavera who fought for retention of government positions by natives, regardless of race . In retaliation to the rise of Filipino nationalism, the friars called the Indios (possibly referring to Insulares and mestizos as well) indolent and unfit for government and church positions . In response, the Insulares came out with Indios agraviados, a manifesto defending the Filipino against discriminatory remarks . The tension between the Insulares and Peninsulares erupted into the failed revolts of Novales and the Cavite Mutiny of 1872 which resulted to the deportation of prominent Filipino nationalists to the Marianas and Europe who would continue the fight for liberty through the Propaganda Movement . The Cavite Mutiny implicated the priests Mariano Gómez, José Burgos, and Jacinto Zamora (see Gomburza) whose executions would influence the subversive activities of the next generation of Filipino nationalists, José Rizal, who then dedicated his novel, El filibusterismo to these priests . </P> <P> After the Liberals won the Spanish Revolution of 1868, Carlos María de la Torre was sent to the Philippines to serve as governor - general (1869--1871). He was one of the most loved governors - general in the Philippines because of the reforms he implemented . At one time, his supporters, including Padre Burgos and Joaquín Pardo de Tavera, serenaded him in front of the Malacañan Palace . Following the Bourbon Restoration in Spain and the removal of the Liberals from power, de la Torre was recalled and replaced by Governor - General Izquierdo who vowed to rule with an iron fist . </P> <P> Freemasonry had gained a generous following in Europe and the Americas during the 19th century and found its way to the Philippines . The Western World was quickly changing and sought less political control from the Roman Catholic Church . </P>

The coming of the spaniards in the philippines