The difference in tonnage between this table and Exhibit A to the report of the collector of customs of the islands and of the chief port is due to the tonnage of army and navy vessels included in the former, but not in the latter.

Amounts are stated in Mexican currency and the comparison made is to be considered in connection with the fact that the period ending June 30, 1899, embraces only ten and one-half months and with the further fact that the coastwise trade under American occupation did not come under prescribed regulations nor were ports extensively opened to trade until the early part of the year 1900. The increase in the expense of administration of the office of the captain of the port is partly due to these facts and partly to the reestablishment of the light-house service and the additional office force required by the greater volume of business.

BOARD OF OFFICERS CONVENED TO CONFER WITH THE SPANISH BOARD OF LIQUIDATION.

The treaty of peace provided, Article V, that supplies of all kinds belonging to the land and naval forces of Spain in the Philippines and Guam and heavy ordnance, exclusive of field artillery, in fortifications and coast defenses, should remain the property of Spain, and further, in Article VII, that all public immovable property pertaining to the public domain and as such belonging to the Crown of Spain should vest in the United States. The treaty left uncovered public movable property not belonging to the land and naval forces of Spain. Under familiar principles of law this latter class of property was held to have vested in the United States.

To facilitate the transfer of the property thus recognized as belonging to Spain, the Spanish authorities appointed a board of liquidation which operated through three commissions-civil, military, and naval. Upon the part of the United States authorities two boards were convened-one military and the other naval.

The turning over of the archives and property of the several branches of civil government has been completed. Of the naval property there is yet to be transferred certain supplies at Cavite, and there remains to be adjudicated claims for reimbursement for certain military supplies alleged to have fallen into the hands of the American authorities at the time and under the terms of the capitulation of August 13, 1898, the amount of which is not easy of determination.

BOARD OF OFFICERS ON CLAIMS.

On June 30, 1899, there were pending before the board of officers on claims 21 cases which had been referred to it for investigation and report. Of these, 20 have since been acted upon by the board and the remaining one returned to the claimant for amendment in compliance with the existing rules of procedure.

In the fiscal year ending June 30, 1900, 125 claims, aggregating $1,988,942.55, were referred to the board. Of these, 24 were acted upon with the concurrence of the military governor in the last fiscal year; 26 have received the action of the board since July 1, 1900; 23 have been withdrawn, consolidated with other cases, or returned to the claimant for compliance with the requirements of procedure; leaving 52 cases pending on August 14, 1900, the date of the report of the board.

Since the 30th of June, 1900, and up to August 15, 1900, 31 claims were referred to the board, in 6 of which action has been taken.

At the date of the report of the board there were thus pending 77 cases, the board having acted upon 75 cases in the past year.

In the claims upon which the board has acted the aggregate amount claimed was $897,693.26, and the amount recommended for payment in these was $14,907.25.

Many of these claims are for damages for loss or destruction of property as a result of military operations in the archipelago, for which, almost without exception, the board has held that the Government was not pecuniarily responsible. Awards, where made, have been for the return of property or damages for the use of property, real or personal, impressed into the military service of the United States.

DEPARTMENT OF PUBLIC INSTRUCTION.

Great activity is observable in all garrisoned towns in the establishment of schools of primary instruction. The results attained are measurably due to the initiative of local commanding officers, but are to be mainly credited to the people themselves, among whom the desire for educational facilities is everywhere general and unmistakable, and who have expended considerable sums of money for such purposes, collected through the medium of municipal taxation and private subscription. Reports of district commanders indicate that more than 100,000 children have been in attendance upon schools so established and maintained during the past year.

While it was early recognized that the establishment of a system of public instruction, to be fostered and largely supported by the central government, was of the very first importance, the prosecution of such work upon a comprehensive scale has been of necessity deferred to the military operations, upon whose successful issue its future and systematic development are so largely dependent.

The office of superintendent of public instruction was not created until March 30, 1900, upon which date Capt. Albert Todd, Sixth U. S. Artillery, was detailed to the discharge of the duties incident thereto. The work of this office has been limited to supplying books and various other school supplies, of which $104,251.87 worth have been purchased from public civil funds and a great part thereof distributed throughout

the islands.

In establishing a system of education in the islands a radical departure from the system with which the people have been accustomed in the past will be necessary. In the meager primary and elementary education, beyond which but few of the inhabitants ever progressed, the work of instruction does not seem to have been regarded as a function of the general government, but was left largely to the municipalities; and here it was carried on under the direction and control of the church, and whatever was accomplished depended upon the intelligence and energy of the local church officials, adequate governmental supervision being practically unexercised.

In many localities the tranquillity and order essential to the successful conduct of schools have not as yet been attained. Until the work of pacification is more advanced it will not be practicable, it is thought, to take up the subject in that energetic and comprehensive way which the situation would otherwise demand and justify, nor is the diversion of the large portion of the revenues of the Government necessary for the successful conduct of the schools possible so long as war conditions, requiring the expenditure of large sums for the prosecution of military operations, continue.

The testimony of all officers who have been charged with making special inquiry into educational conditions and the attitude of the people toward the question of the schools is practically concurrent, that, with improved conditions the inhabitants will eagerly avail themselves of the advantages which the schools to be created under American auspices will afford, and it is believed that, with the acquisition of a knowledge of the English language and the resulting appreciation of our institutions and purposes, the development and assimilation of the Filipino people will be greatly advanced.

In the city of Manila there were maintained, for the year ending June 30, 1900, 39 schools, with an attendance of 5,000 scholars and a teaching force of 149, of whom 24 were teachers of English.

This does not take into consideration the nautical school which was reopened on December 15, 1899, in accordance with General Orders, No. 55, series of 1899, office of the military governor in the Philippines, by the terms of which the superintendent is an officer of the United States Navy, under the immediate direction of the military governor. Lieut. Commander V. C. Cottman, U. S. Navy, was designated as the first superintendent, and being relieved at the expiration of his cruise on December 23, 1899, by Lieut. George F. Cooper, U. S. Navy, who is still in charge.

The course of instruction extends over three years, and none can be admitted except residents of the Philippine Islands between 14 and 18 years of age, with the requisite physical and mental qualifications, a fair knowledge of English being required of candidates after June 1,

1901.

The methods observed in the school conform as nearly as possible to those of the United States Naval Academy, and in addition to the theoretical instruction the pupils are frequently drilled in the handling of ropes and sails and in the sailing of a boat, which was placed at the disposal of the school by the commander in chief of the naval force.

The course is so designed that a student will immediately upon graduation be competent to take position as an officer upon any of the vessels plying in these waters, and if necessary to intelligently assume the management of such. The direct benefits which will accrue in the

development of the islands in thus equipping a body of trained officers for the many vessels required in the coastwise trade alone will warrant, it is believed, the expenditures required for the maintenance of the school.

It is recommended that the efficiency of the school be further increased by the purchase of a small vessel of not exceeding 300 tons burden and equipped with auxiliary steam power, as is requested in the report of the superintendent, to serve as a school ship, by means of which the practical training and experience at sea can be best acquired.

MUNICIPAL GOVERNMENT.

The war conditions which have prevailed during the entire period of military government have greatly obstructed the reestablishment of civil government and absolutely prevented, in a large measure, its extension to the provinces. The first attempts, in so far as the latter are concerned, were limited to the establishment of municipal governments. As the army advanced into the interior and more territory came under control, some form of municipal administration became necessary. In view of the disturbed conditions presented in the different localities, it was indispensable that the plan formulated should provide that the authorized municipal officials should be brought into a direct contact with local commanding officers in such a way as would make the supervision of the latter effectual. The system devised and put in force is shown in General Orders, No. 43, Headquarters Department of the Pacific and Eighth Army Corps, August 8, 1899, under which occupied towns were organized excepting those in which it was found impracticable to hold elections where military governments conforming generally to the requirements of this order were constituted, the municipal officers being appointed. The system served the immediate purpose in view and gave to the well-disposed people of the towns occupied such a measure of participation in local government as was compatible with existing conditions. Combining as it does simplicity with proven efficacy, General Orders, No. 43, would, in my judgment, answer very well during the period of martial rule as a more permanent measure of government for the smaller towns in the less advanced districts. It was, however, manifestly deficient as a governing code for cities and larger towns, to meet the necessities of which a board was convened by General Orders, No. 18, of January 29 last, by the military governor, under the able presidency of the chief justice of the supreme court, Don Cayetano Arellano, and charged with the formulation of a plan of municipal government to be as liberal in character as existing conditions permit." As against the intention and definite purpose of the board to give to this injunction full force and effect in the municipal law to be formulated there were arrayed the deficient personnel which was to apply it and the insurrectionary tendencies still everywhere observable-considerations which resulted in the withholding of a liberal elective franchise and of certain municipal powers ordinarily to be granted without hesitation, and made necessary the introduction of provisions authorizing military regulation and control. The result of the deliberations of the board and the revision by the military governor was a plan of municipal government promulgated in General Orders, No. 40, current series, office of the military governor, which was neither complete municipal autonomy nor undue centralization,

but a conservative system which, it is thought, gave the necessary
impulse and initiative to municipal life and at the same time per-
mitted the necessary inspection by, and subordination to, the military
authorities.

The following towns have organized governments under General
Orders, No. 40:

Province of Abra: Bangued.

LUZON.

Province of Cavite: Cavite, Cavite' Viejo, La Caridad.

Province of Ilocos Norte: Laoag.

Province of Ilocos Sur: Candon, Vigan.

Province of Nueva Ecija: Jaen, Cabiao, Peñaranda, Gapan, San Antonio, Santa Rosa. Province of Pampanga: Angeles, Apalit, Arayat, Bacolor, Betis, Candaba, Florida Blanca, Guagua, Lubao, Mabalacat, Macabebe, Magalang, Mexico, Porac, San Fernando, Santa Ana, San Luis, San Miguel, San Simon, Santa Rita, Santo Tomas, Sexmoan.

Province of Pangasinan: Calasiao, Dagupan.

Province of Tayabas: Sariaya, Tayabas.

Province of Union: Namacpacan, San Fernando.

CEBÚ.

Province of Cebu: Alegria, Balamban, Bantayan, Bogo, Cebú, Daan, Dumanjug, Medellin, Naga, San Remigio.

Province of Antique: Antique, Colasi.

PANAY.

Province of Capiz: Calibo, Pontevedra.

In the following towns elections have been held under General Orders, No. 40, but governments have not as yet fully organized:

LUZON.

Province of Bulacan: Meycauayan, Polo.

PANAY.

Province of Iloilo: Iloilo.

In the following towns elections have been ordered under General Orders, No. 40, but have not as yet been held:

LUZON.

Province of Nueva Ecija: San Isidro, Talavera, Cabanatuan, Bongabong, Saragossa, Rosales, Humingan, Aliaga, Cuyapo, San Quintin.

Province of Capiz: Capiz, Dao, Dumarao, Ibajay, Mambusao.

BOHOL.

It appears that elections have been ordered under General Orders, No. 40, in all towns of Bohol except Carmen, but have not yet been held.

It is quite probable that by this time all the towns noted as having held elections, but their governments not yet organized, have completed their organization.

Reports are continually coming in as to towns that have organized governments under General Orders, No. 43, but the data is not suffiiently complete to enable a list of these towns by provinces to be sub