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Spanish rule for the first 100 years was exercised in most areas through a type of tax farming imported from the Americas and known as the encomienda. But abusive treatment of the local tribute payers and neglect of religious instruction by encomenderos (collectors of the tribute), as well as frequent withholding of revenues from the crown, caused the Spanish to abandon the system by the end of the 17th century. The governor-general, himself appointed by the king, began to appoint his own civil and military governors to rule directly. Central government in Manila retained a medieval cast until the 19th century, and the governor-general was so powerful that he was often likened to an independent monarch. He dominated the Audiencia, or high court, was captain-general of the armed forces, and enjoyed the privilege of engaging in commerce for private profit. Manila dominated the islands not only as the political capital. The galleon trade with Acapulco, Mex., assured Manila's commercial primacy as well. The exchange of Chinese silks for Mexican silver not only kept in Manila those Spanish who were seeking quick profit, but it also attracted a large Chinese community. The Chinese, despite being the victims of periodic massacres at the hands of suspicious Spanish, persisted and soon established a dominance of commerce that survived through the centuries. Manila was also the ecclesiastical capital of the Philippines. The governor-general was civil head of the church in the islands, but the archbishop vied with him for political supremacy. In the late 17th and 18th centuries the archbishop, who also had the legal status of lieutenant governor, frequently won. Augmenting their political power, religious orders, Roman Catholic hospitals and schools, and bishops acquired great wealth, mostly in land. Royal grants and devises formed the core of their holdings, but many arbitrary extensions were made beyond the boundaries of the original grants. The power of the church derived not simply from wealth and official status. The priests and friars had a command of local languages rare among the lay Spanish, and in the provinces they outnumbered civil officials. Thus, they were an invaluable source of information to the colonial government. The cultural goal of the Spanish clergy was nothing less than the full Christianization and Hispanization of the Filipino. In the first decades of missionary work, local religions were vigorously suppressed; old practices were not tolerated. But as the Christian laity grew in number and the zeal of the clergy waned, it became increasingly difficult to prevent the preservation of ancient beliefs and customs under Roman Catholic garb. Thus, even in the area of religion, pre-Spanish Filipino culture was not entirely destroyed. Economic and political institutions were also altered under Spanish impact but perhaps less thoroughly than in the religious realm. The priests tried to move all the people into pueblos, or villages, surrounding the great stone churches. But the dispersed demographic patterns of the old barangays largely persisted. Nevertheless, the datu's once hereditary position became subject to Spanish appointment. Agricultural technology changed very slowly until the late 18th century, as shifting cultivation gradually gave way to more intensive sedentary farming, partly under the guidance of the friars. The socioeconomic consequences of the Spanish policies that accompanied this shift reinforced class differences. The datus and other representatives of the old noble class took advantage of the introduction of the Western concept of absolute ownership of land to claim as their own fields cultivated by their various retainers, even though traditional land rights had been limited to usufruct. These heirs of pre-Spanish nobility were known as the principalia and played an important role in the friar-dominated local government.

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Q: What is the political institution of the Philippines during the spanish period-heirarchical political set-up?
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