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WHAT HAS BEEN DONE IN THE PHILIPPINES.

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and the division of the proceeds between the orders and the church, and the use of the part belonging to the Roman Church for improvement of the Philippine Church, we may reasonably hope that in a decade the agrarian and political question of the friars in the Philippines will have been completely removed froin among the obstacles to good government with which the Americans, in coming to the islands and assuming control thereof, were confronted.

WEATHER BUREAU SERVICE.

There is maintained by the Philippine government a weather bureau service with a central office in Manila and with fifty stations throughout the entire Archipelago, from which daily telegraphic reports are made to Manila. These stations are well equipped to determine temperature, winds, humidity, and seismic disturbances. There is also maintained a station on the island of Guam which is of great importance in forecasting typhoons likely to endanger the shipping interests in the seas of the Philippine Archipelago." One of the greatest dangers to navigation in the Philippine Islands results from typhoons. The benefits conferred by the weather bureau in forewarning shipping of the coming of typhoons is incalculable. Storm signals are hoisted in the principal ports, where they can be seen readily by shipping, and, furthermore, vessels are advised of approaching typhoons by the customs

authorities.

In the central office at Manila there are 39 instruments for direct observation and 34 self-registering instruments of the finest and most modern manufacture in operation under the direction of the most competent scientists. One of the most important and indispensable works performed by this weather service is the rating of the chronometers of the shipping in that section of the world.

A crop service is maintained and weather bulletins issued, which are carried in the English and Spanish papers as items of news, and many of the municipalities in every province have contributed to this service.

ETHNOLOGY.

The ethnological survey of the non-Christian tribes in the Philippines has been under way in the hands of competent ethnologists and anthropologists for the past two years, and much valuable information and many documents pertaining to the law, history, language, and religion of these tribes, as well as many valuable photographs, have been obtained. Many valuable contributions to the world's knowledge of the tribes of the islands have been made by these scientists. A careful series of enumerations and estimates place the pagan inhabitants of the Philippines at about 400,000 and the Mohammedans at about 253,000,

Aside from its scientific value, the work of this ethnological survey will supply much information essential to the formation and establishment of proper government for these tribes.

PHILIPPINE EXHIBIT AT ST. LOUIS EXPOSITION.

The Philippine government, at a cost of nearly $1,000,000, is making at the Louisiana Purchase Exposition at St. Louis an elaborate exhibit of Philippine products, art, ethnology, education, and habits of the people. There has been allotted for this purpose about 45 acres of

space within the exposition grounds, and there will be brought from the Philippines, approximately. 1,200 Filipinos and 14,000 tons of exhibits and building materials. Of these Filipinos, from 600 to 800 are in the military service of the Philippine government or are in the Philippine Scouts, an organization which is a part of the United States military forces in those islands.

They will be accompanied by the Philippines Constabulary band of 85 pieces.

This exhibit at St. Louis will afford an opportunity for the people of the United States to acquire information relative to the Philippines in a more graphic manner than has yet been offered. The Philippine government will send to the United States during the period of the exposition an honorary commission of fifty prominent Filipinos, who will visit St. Louis and other cities, and in that manner gain a practical knowledge of American institutions and methods, which, upon their return, will be of great benefit, and will undoubtedly do much to promote mutual good feeling and trade relations between the two countries.

CENSUS.

The Philippine government act of Congress of July 1, 1902, provided that when the President so directed the Philippire Commission should order a census of the Philippine Islands to be taken, and that two years after the completion and publication of this census, if conditions at that time warranted the same, a general election should be called for the choice of delegates to a popular assembly of the people in the Philippine Islands, which assembly would constitute the lower house of a legislative body, of which the Philippine Commission would be the upper branch.

Under this Congressional authority the Philippine government has completed the taking of a census of the islands, paid for out of Philippine revenues. The census data generally collected in such work in the United States has been secured and amplified in the Philippine

census.

The compilation of the returns is now in progress in Washington and will probably be ready for publication the latter part of this year. This census will afford the first complete and reliable data relative to the Philippine Islands, and will serve as a basis for future guidance in many important matters and undertakings.

The customs tariff and regulations first enforced by the American authorities in the Archipelago were based upon those of the Spanish administration with certain changes made from time to time. It was felt, however, from the beginning that they should be revised, for, aside from substantial objections to the rates of duties imposed, there were others due to the manner in which they were expressed and computed.

This condition was unsatisfactory both to the government and the commerce of the islands, and as soon as the more pressing claims of the insular government permitted, arrangements were made to revise the customs tariff and regulations and have them conform to the

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WHAT HAS BEEN DONE IN THE PHILIPPINES.

peculiar conditions of the islands, their actual and potential development, the revenues necessary for the administration and development thereof, and the propriety of imposing the burden of taxation on those articles best able to bear à relatively high tariff, while allowing articles of prime necessity to enter under a low rate.

The revision of the tariff was commenced by a board of officers appointed for that purpose at Manila, then turned over to the Philippine Commission, whose preliminary draft was forwarded to Washington and opportunity given to the exporters and importers of the United States to express their opinions. This privilege was also extended to the merchants and exporters and importers in Manila, in public hearings, before the Philippine tariff was formally enacted into law, and the Views of all were given the greatest consideration. The tariff law was finally enacted by the Philippine government, and subsequently received the approval of the Congress of the United States.

The rates in no case, except on articles of luxury, such as sparkling wines and fine china, are high. Articles of necessity have been taxed lightly; those needed in the development of agriculture and for the improvement of roads and transportation are also low. Prohibitive rates have been avoided, and the rapid progress and development of the islands have been kept steadily in view, together with the other side of the question, that the insular government must have revenue for current expenses and for needed improvements. The duties, on the whole, are lower than the old Spanish tariff or the tariff at present in force in the United States. The present tariff will average about 183 per cent ad valorem.

The enactment of Congress approving the Philippine tariff adopted by the Philippine government also provided for a reduction of 25 per cent of the Dingley tariff upon imports into the United States from the Philippines, and, further, that all duties collected in the United States on articles coming from the Philippines, as well as tonnage dues, should be held as a separate fund to be paid into the Philippine freasury for the benefit of the islands; also that the Philippine government should refund the export duties imposed upon hemp and other products of those islands in the event the same were exported to the United States.

The effect of these two provisions of law has been that the Philippine government has been called upon, during the first fifteen months of the operation of this law, to refund upon exports to the United States more than $400,000 in excess of the fund accruing to its credit from duties imposed at United States ports upon imports from the Philippine Islands.

FOREIGN COMMERCE.

Complete Philippine trade statistics during Spanish administration are not available, except those for an occasional year or two, though enough reliable data warrant the statement that, based on an annual average valuation of $35,000,000 worth of imports and exports, the United Kingdom, United States, Spain, and China have been the chief beneficiaries of that trade in the past, enjoying practically 80 per cent of the total commerce. While these countries continue to hold a large portion of the trade, the business transacted since American occupation indicates a wider distribution as well as a relative change in the amount credited for recent years.

During the five years of American administration the islands' commerce has increased more than 150 per cent, advancing from $25,000,000 in 1899 to $40,350,000 in 1900, to $53,490,000 during the next year, then to $56,000,000 in 1902, and at the close of the year ending June 30, 1903, the commerce had reached a value of more than $66,000,000.

In the exports we find a showing that is remarkable, though adverse agricultural conditions have limited development along some lines. With but $12,000,000 worth of products in 1899, the trade has steadily increased each year until in 1903 it amounted to over $33,000,000, or sufficient to bring about a slight balance of trade in favor of the islands.

Trade with the United Kingdom, aside from its colonial possessions has, until 1902, ranked first in importance; as a general rule taking about one-third of the total, always receiving more of the island's products than her exports there would pay for.

The United States was second in importance up to the time of the enormous increase in direct shipments of Manila hemp, the legislation passed by Congress on March 8, 1902, enabling this country to take front rank almost immediately. The treasury of the Philippines, however, has suffered at the expense of the American hemp interests, and at the close of the last fiscal year we find the amount of duties collected on Philippine products coming to this country and returned to the insular treasury as a separate fund for the benefit of the islands, has far from equaled the export rebate to American shippers.

The significance of these facts may be appreciated when it is understood that two-fifths of the Philippine exports consist of hemp, and by reason of the $21,000,000 worth sold last year a balance of trade in favor of the islands is shown for the first time since 1896. Practically two-thirds of this amount came to the United States, which is unparalleled in the history of the trade.

Spain's trade prior to the American occupation varied according to the commercial and industrial measures adopted in behalf of the archipelago, and while her imports into the islands have been somewhat regular during the last five years, but little is taken in return, with the exception of leaf tobacco.

=

The Philippine government has made purchases in the United States of supplies and other materials for public improvements and other purposes to a value exceeding $12,000,000 out of the revenues of the islands. These figures are not included in the volume of trade hereinbefore outlined.

SOURCES OF REVENUE.

The Philippine government is authorized by Congress to levy its own taxes and disburse its own revenues, and, with the exception of an appropriation of a $3,000,000 relief fund by Congress, all of the expense of the administration of the government has been met by the revenues of those islands.

The municipal corporations, under the direction of the provincial governments, collect and disburse their own revenues, and with the exception of loans made to these provinces by the general Philippine government from time to time, which ultimately are repaid, these

S. Doc. 304, 58—2—3

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WHAT HAS BEEN DONE IN THE PHILIPPINES.

subgovernments are self-supporting and meet all expense of adminis.

tration.

The receipts of the islands may be classified under four headingscustoms, internal revenue, postal, and miscellaneous.

Customs receipts, from which the greater part, approximately 80 per cent, of the revenues are derived, include export and import duties, tonnage taxes, storage, wharfage and extra-service charges, immigra tion and Chinese registration taxes, and all other charges incidental to external trade, including consular fees of collectors of customs who are authorized to perform consular duties in the shipment of merchandise to the United States.

All payments of internal revenue were originally made to the insular government. They included:

Industrial tax, a fixed tariff on all industries, trades, professions, and arts.

Urbana tax, a percentum tax on the rental of buildings, now displaced by land taxes.

Cedulas, amounting during the Spanish régime to an onerous poll tax, but now modified, in accordance with the wishes of the people, to an official means of identification and issued for a fee sufficient only to cover the cost of issue.

Sales of stamps and stamped paper.

Fees for registering letters patent, copyrights, and trade-marks, forestry taxes, fees for surveying mining claims, and miscellaneous fees and charges incidental to the foregoing.

Act No. 82 of the Philippine Commission, January 31, 1902, defined the sources of revenue for municipalities, with the exception of Manila, as follows:

An ad valorem tax on all lands, buildings and improvements, fees for the privilege of fisheries and for the issue of certificates of ownership of large cattle and of transfer of title in the same, rents, profits and tolls from public and quasi-public enterprises, fees for tuition in advanced studies, municipal and trade licenses and fines, and road

taxes.

Under the provisions of act No. 83, dated February 6, 1901, the 34 Christian provinces may levy, for provincial purposes, a tax not to exceed three-eighths of 1 per cent on realty within the province, and in addition thereto the provinces now collect and retain all fees for the registration of land titles. Such taxes and fees are collected by the provincial treasurers and those pertaining to the municipalities alone are turned over by them to the municipal treasurers, together with one-half of a tax on vehicles, and of the taxes hereinbefore described as internal revenue proper.

The postal service of the islands is nearly self-supporting. Its revenues are derived from the sale of postage stamps, money-order fees, lock-box rents, second-class mail matter, and other miscellaneous postal charges.

The miscellaneous receipts of the islands are derived principally from judicial and notarial fines and fees, clearance and harbor fees, and government telegraph receipts. Under his heading are also included all other receipts of the insular government not properly classified under the three preceding headings.