The government dues on forestry products are collected by provincial treasurers and covered into the insular treasury. The cost of maintaining the forestry service is deducted from the revenues so received and the balance remaining is divided between the provincial and municipal governments in the province from which the products originally come.

During the fiscal year 1903 the operating expense of the forestry service amounted to $96,202.36 United States currency and the revenues collected amounted to $527,414.85 Mexican.

Minerals. Soon after the occupation of the islands by the Americans a mining bureau was established which, of necessity, under the limited authority of the then existing government, confined its work to investigation of and report upon mines and claims, to the translation of Spanish laws, decrees, and documents, to the gathering of information as to the results of prospecting, and to the preparation of reports on the more important minerals found in the islands, and to laboratory work and assays on specimens submitted.

The most important work of the mining bureau has been its institution of a system of mineralogical and geological surveys. A museum of geological specimens and a laboratory for scientific research and assay are maintained.

Coal.-Coal is known to exist in many of the different islands of the Archipelago, and some of the deposits are very extensive. Testimony is unanimous that the Philippine coals do not clinker, nor do they soil the boiler tubes to any such extent as do Japanese and Australian coals. It has been demonstrated that coal from several deposits in the Philippine Islands will coke.

These coals have been given practical test in the vessels engaged in the coasting trade of the Archipelago, with very satisfactory results as regards their steam-making properties. Prior to American occupation the shipping in Philippine waters was dependent upon coals imported at great distance, whereas local coals are now being utilized, and it is believed will be mined in sufficient quantities to more than meet the heavy demands of shipping in those waters.

The island of Batan is spoken of as "a solid mass of coal.” An electric railway is now nearing completion, which will connect this mine with a deep-water harbor. It is to be developed by private corporations, under the direction of an officer of the Engineer Corps of the Army detailed, with a competent force of skilled miners, for the purpose of carrying on a systematic examination of the deposits, to determine their extent and value.

Gold, copper, and other metals.-There are well-known deposits of gold, copper, and other metals throughout the islands. A mineralogical map has been prepared, showing the authenticated mines and proved inineral deposits of value, but which does not purport to represent all mineral deposits in the islands.

Mining claims. Upon the passage of the Philippine government act of July 1, the mineral deposits in public lands in the Philippine Islands were declared to be free and open to exploration, occupation, and purchase, and the land in which they are found to occupation and purchase, by citizens of the United States, or of the Philippine Islands, and in pursuance thereof, an enactment was passed by the Philippine Commission prescribing regulations governing the location and manner of recording mining claims, and the amount of work necessary to hold

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WHAT HAS BEEN DONE IN THE PHILIPPINES.

possession of a mining claim. The administrative work with reference to titles to mining claims was transferred to the bureau of public lands, and the bureau of mines of the insular government has continued its work of effectively carrying out reconnoissances of the important mineral regions of the Philippines in order that accurate information, of value to the prospector, the miner, and the capitalists may be made available and the development of the mining industry may be stimulated.

Up to June 30, 1903, there had been presented for record 357 lode claims, 95 placer claims, 6 coal claims, and 141 claims the character of which was not designated, making a total of 599. These claims were scattered throughout the different provinces of the archipelago. Agriculture. The inhabitants of the Philippine Islands are essentially an agricultural people. Agriculture had, nevertheless, up to the time of American occupation, been carried on in a very primitive fashion, with rude implements and antiquated machinery, and without the employment of suitable methods of cultivation. The results obtained, even under such conditions, afforded proof of the favorable character of the climate and the natural richness of the soil.

The insular government has created a bureau of agriculture to conduct investigations and disseminate useful information with reference to the agricultural resources of the Philippine Islands, the methods of cultivation at present in vogue and their improvement, the practicability of introducing new and valuable agricultural products, the introduction of new domesticated animals, and the improvement of the breeds of domesticated animals now in the islands, and, in general, to promote the development of the agricultural resources of the country.

A competent corps of scientific assistants has been engaged, and surveys of the soil have been made throughout different parts of the archipelago, with a view to determining its adaptability for various products.

It has been shown that many vegetables peculiar to the United States and the temperate zone can be cultivated to advantage in the Philippine Islands. Irish potatoes, peas, tomatoes, beets, and other vegetables have been successfully reproduced in the Philippines from American seed, as well as improved varieties of the orange and lemon brought from California. Pear, peach, apricot, and plum trees have been successfully introduced in the highlands.

An experimental station for the testing of seeds and the growing of plants and trees not indigenous has been established in Manila, where it can be conducted under the immediate direction of the officials of the bureau, and, where the results here obtained justify, the work is carried on in other parts of the archipelago where soil investigations have demonstrated a possible successful result.

A great many publications upon the culture of agricultural products in the Philippines, such as cacao, tobacco, cocoanut, and others, have been prepared and disseminated for guidance and information. These bulletins and publications contain a large amount of practical information, enlightening the public as to the agricultural possibilities in the Philippines and aiding the intelligent Filipino agriculturists to improve their methods of cultivation.

Steps have been taken to rehabilitate the coffee industry by demonstrating that immunity from disease and insect pests may be obtained

by the selection of a vigorous variety of coffee and the adoption of the best systems of cultivation and treatment. The coffee industry in the Philippines was annihilated prior to American occupation by blight and an insect which destroyed the plant.

Probably no country in the world produces a greater number of valuable fiber plants than do the Philippine Islands. Manila hemp occupies an exclusive position among fibers, and the question of its continued improvement and increased development has been carefully investigated and recommendations and reports made thereon.

In the past the vegetables sold in Manila were chiefly imported from China and were a continual source of danger on account of the possible introduction of disease, and for this reason the successful introduction and cultivation of vegetables will have a most far-reaching effect.

The bureau of agriculture has demonstrated that forage for animals can be successfully grown in the Philippines, whereas in the past it has been necessary to import the same at a high price.

It was demonstrated under insular-government auspices that on well-fertilized land with frequent irrigation ten crops of teosinte can be grown in one year with a yield of 135 tons green and 30 tons dry fodder per acre. A field of alfalfa sown on January 6 was cut three times before August 31, the last cut yielding at the rate of 2 tons green and 1,300 pounds dry per acre.

With the heavy loss of horned cattle, due to rinderpest and the ravages of surra and glanders among the horses of the archipelago during the first few years of American occupation, it became increasingly important to restock the islands with the draft animals to which the Filipinos are accustomed, as well as to introduce new draft animals and improve existing breeds.

The insular government, following the intent of Congress expressed in the appropriation of a relief fúnd, has purchased, throughout the different countries of the Orient, several thousands of carabao, the work animal of the Philippines in agriculture, and with a view to restocking the farms, sold them to the native farmers at less than the actual cost price to the government. This work is still under way.

A stock farm where breeding experiments can be conducted has been established, and steps taken for the importation of stallions, jacks, and mares. In fact, a number have already been sent to the islands. It is believed that this work will develop a type suited to the demands of the Philippines.

The establishment of a serum laboratory, and the manufacture of the necessary serum, has made it possible for the government to take up vigorously the work of immunizing all horned cattle remaining in the Philippines, as well as all that are imported, to prevent a recurrence of devastation by rinderpest.

The effort of the insular government for the prevention of rinder pest, by a scientific method of inoculation, has met with a marked success, and the inoculation has proved to be effective in stopping the ravages of the disease.

An agricultural college has been established on the grounds of the government farm, in the island of Negros, for practical instruction in agriculture, and an experiment station is conducted in connection with said college.

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WHAT HAS BEEN DONE IN THE PHILIPPINES.

A government farm and experiment station has also been established in the island of Luzon, and another on the island of Mindanao.

The purchase of the friar lands.--The course to be pursued by the Philippine government in sustaining the new relations between the church and the state necessarily resulting from the transfer of the Philippine Islands from Spanish to American sovereignty, was set forth in the Instructions of the President to the Philippine Commission, as follows:

It will be the duty of the Commission to make a thorough investigation into the titles to the large tracts of land held or claimed by individuals or by religious orders; into the justice of the claims and complaints made against such landholders by the people of the island, or any part of the people, and to seek by wise and peaceable measures a just settlement of the controversies and redress of wrongs which have caused strife and bloodshed in the past. In the performance of this duty the Commission is enjoined to see that no injustice is done; to have regard for substantial rights and equity, disregarding technicalities so far as substantial right permits, and to observe the following rules:

That the provision of the treaty of Paris pledging the United States to the protection of all rights of property in the islands, and as well the principle of our own Government which prohibits the taking of private property without due process of law, shall not be violated; that the welfare of the people of the islands, which should be a paramount consideration, shall be attained consistently with this rule of property right; that if it becomes necessary for the public interest of the people of the islands to dispose of claims to property which the Commission finds to be not lawfully acquired and held, disposition shall be made thereof by due legal procedure, in which there shall be full opportunity for fair and impartial hearing and judgment; that if the same public interests require the extinguishment of property rights lawfully acquired and held, due compensation shall be made out of the public treasury therefor; that no form of religion and no minister of religion shall be forced upon any community or upon any citizen of the islands; that, upon the other hand, no minister of religion shall be interfered with or molested in following his calling; and that the separation between state and church shall be real, entire, and absolute.

At the time of the transfer of sovereignty three religious orders, the Dominicans, Augustinians, and Recoletos, who were established in the Philippines under Spanish rule, held about 420,000 acres of agricultural lands. These lands were occupied by native tenants intensely hostile to the friars, and that hostility was unquestionably shared by the vast majority of the people of the islands. The relation of these landlords to their tenants and to the entire people was one of the chief causes of irritation and rebellion under Spanish rule.

The new conditions made it manifest that the interest of the religious orders required that they should convert into money this property, which they could no longer peacefully enjoy or practically make useful. At the same time the peace and order of the community, the good will of the people toward the Government of the United States, and the interest of an effective settlement and disposition of all questions arising between the church and state in the islands made it equally desirable that these lands should be purchased by the state and that opportunity to secure title upon reasonable terms should be offered to the tenants and to the other inhabitants of the islands.

The act of Congress approved July 1, 1902, commonly known as the Philippine government act," authorized the Commission to acquire title to the lands of religious orders held in such large tracts as to injuriously affect the peace and welfare of the people of the islands; to issue bonds in payment for such land; to sell the land, with a preference to actual settlers and occupants; and to apply the proceeds to paying the principal and interest of the bonds.

Governor Taft, being about to return from Washington to his post

at Manila, was directed to stop at Rome for the purpose stated in the following extract from his instructions:

In view, therefore, of the critical situation of this subject in the Philippines, and of the apparent impossibility of disposing of the matter there by negotiation with the friars themselves, the President does not feel at liberty to lose the opportunity for effective action afforded by your presence in the West. He wishes you to take the subject up tentatively with the ecclesiastical superiors, who must ultimately, determine the friars' course of conduct, and endeavor to reach at least a basis of "negotiation along the lines which will be satisfactory to them and to the Philippine government, accompanied by a full understanding on both sides of the facts and of the views and purposes of the parties to the negotiation, so that when Congress shall have acted the business may proceed to a conclusion without delay.

The conference suggested by this instruction resulted in a full and satisfactory understanding as to the methods to be adopted for disposing of the various questions arising out of the separation of church and state in the Philippine Islands required by the change of sovereignty and the sale of the friar lands.

The church authorities at Rome, having favorably considered the proposition to purchase the agricultural lands of the three great religious orders, appointed an apostolic delegate, with such powers as could be conferred upon him, to complete the negotiations and transfer. The apostolic delegate, Monsignor Jean Baptiste Guidi, Archbishop of Stauropoli, reached the islands in the fall of 1902, and negotiations were at once begun.

The Commission had previously caused said lands to be surveyed, classified, and valued. The negotiations, however, occupied considerble time, for it appeared that the friars had complicated their title to a large portion of the lands by alleged transfers to private individuals and companies, and it eventually became necessary to bring these parties into the conference. It was well-ni h impossible to come to an agreement respecting the value of the land, and in order to determine the value, representatives of the various companies and other interests were invited to attend a hearing where numerous witnesses were called upon to testify. After numerous propositions and counter propositions had been rejected an agreement was reached whereby was closed the purchase of 410,000 acres at a price of $7,239,000 in gold. This amount was paid in cash from funds realized from the sale of bonds of the Philippine government bearing interest at the rate of 4 per cent per annum, which bonds were sold in the United States at the rate of $107.577.

Respecting the settlement of this matter, Governor Taft, in his report as civil governor for the year 1903, says:

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It is thought that the result of these negotiations and the purchase of the lands form a most important step in the rehabilitation of the people of the islands and that the readjustment of their relations to the Roman Catholic Church, which can not but be of material benefit in a political way to the insular and provincial governments * We can not prophesy that the adjustment will rid us entirely of the agrarian questions. There will be doubtless litigation and local centers of disturbance growing out of government landlordism; but the elimination of the friars from the question can not but tend greatly to facilitate satisfactory adjustments. During the last six months I have been in receipt of petitions from tenants in the provinces of Cavite and Laguna, where the agrarian question has been most bitter, urging the purchase of the lands, with a statement that the tenants fully understood that the lands are to be sold to them and that they are to pay for the same.

The visit to Rome was watched with intense interest by the people of the islands, and had it not resulted in a purchase of the lands, my judgment is that great disappointment would have been felt. The number of friars in the islands is rapidly diminishing from year to year, and with the adjustment of the land question

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