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TABLE OF CONTENTS.

Page.

1. Report of Lieut. Col. E. H. Crowder, Thirty-ninth Infantry, U. S. V., secre-

tary to the United States military governor in the Philippine Islands...

2. Report of Lieut. C. F. Parker, Second U. S. Artillery, treasurer of the

Philippine Islands

3. Report of Mr. Walter G. Coleman, auditor of the Philippine Islands -

4. Report of Lieut. Col. Wm. F. Spurgin, Sixteenth U. S. Infantry, collector

of customs of the Philippine Islands and of the chief port

5. Report of board of officers convened to revise the United States provisional

customs tariff and regulation in the Philippine Islands

6. Report of Capt. C. H. Sleeper, Thirty-seventh Infantry, U. S. V., collector

of internal revenue of the Philippine Islands

7. Report of Señor Cayetano S. Arellano, chief justice of the supreme court

of the Philippine Islands, to the United States military governor..

8. Report of Capt. George P. Ahern, Ninth U. S. Infantry, officer in charge

of the office of patents, copyrights, and trade-marks.

9. Report of Lieut. Charles H. Burritt, Eleventh Cavalry, U. S. V., officer in

charge of the mining bureau.

10. Report of Capt. George P. Ahern, Ninth U. S. Infantry, officer in charge of

the forestry bureau

11. Report of Mr. F. W. Vaille, director-general of posts.

12. Report of Lieut. Floyd W. Harris, Fourth U. S. Cavalry, acting captain of

the port of Manila, P. I..

13. Report of the board of officers convened to confer with the Spanish board

of liquidation..

14. Report of the board of officers on claims.

15. Report of Capt. Albert Todd, Sixth U.S. Artillery, in charge of the depart-

ment of public instruction..

16. Report of Lieut. Geo. F. Cooper, U.S. Navy, superintendent nautical school

for the Philippine Islands

17. Report of Capt. Thomas H. Slavens, assistant quartermaster, U. S. A.,

disbursing quartermaster, civil bureaus.

18. Report of Capt. Frank Taylor, in charge of office of insurgent records..

19. Report of Brig. Gen. James H. Smith, U.S. V., commanding third district

department of the Visayas, on the civil government of the island of

Negros.

20. Report of Brig. Gen. J. F. Bell, provost-marshal-general

3

APPENDIX AA.

OFFICE OF THE SECRETARY TO THE
UNITED STATES MILITARY GOVERNOR

IN THE PHILIPPINES,

Manila, P. I., September 26, 1900. To the U. S. MILITARY GOVERNOR IN THE PHILIPPINES.

Sir; In obedience to instructions, I have the honor to submit the following report of the operations of this office for the fiscal year ending June 30, 1900:

The reorganization of the secretaryship of the military government was effected by General Orders, No. 64, current series, of the military governor's office. Under the terms of this order the office became, in all respects, one of record, charged with issuing all orders, general or special, of the major-general commanding in his capacity as military governor, and with the conduct of correspondence relating to civil affairs. Through it is exercised the supervision and control of the military governor over the following enumerated departments of civil administration:

1. Judicial department.

2. The general customs and internal-revenue services, with their several provincial and local dependencies.

3. Postal department.
4. Office of the captain of the port of Manila and its several branches.
5. Treasury department.
6. Auditor's department.
7. Municipal governments.
8. Public instruction.
9. Department of public works, including works of the port of Manila.
10. Office of patents, copyrights, and trade-marks.
11. Mining bureau.
12. Forestry bureau.
13. Department of island prisons.

In addition, the nautical school of the Philippine Islands and the boards of officers on claims and conference with the Spanish board of liquidation were likewise required to report to this office.

The increased work resulting from this reorganization necessitated an increase in the clerical force of the office, which now numbers 6 civilians and 19 detailed enlisted men, including 1 chief clerk, 5 stenographers, 3 interpreters and translators, 9 clerks, and 1 representative of the secret service.

On August 1 last the system theretofore in force of keeping records in books was abandoned and the card system instituted in its stead. It promises, when better understood, to abridge the work and to afford a much more ready access to the archives of this office, which have already become very voluminous,

What I have said above relates to the work of the secretary's office proper, and no reference is made to a force of 14 native clerks who

are occupied in classifying the archives of the Spanish Government, a reference to which work is hereinafter made.

I am unable to submit any concrete recommendation as to the necessities for a clerical service in the future, being unacquainted at the present time with the functions which will, in view of the dual control which has existed since September 1, be left to this office. Thus far there has been no diminution, but rather an increase, of office work. Assuming that this condition will continue, an office force of not less than 30 men will be required.

As soon as it can be accomplished I would recommend that the force be constituted entirely of civilians, reserving a suitable number of these positions for the enlisted men at present on duty in the office, who have proven their qualifications and who should be discharged to accept such appointments.

TREASURY DEPARTMENT.

The problem of securing a stable currency, difficult of accomplishment in all countries, appears never to have even approached a definite solution in the Philippines. Of this fact the accumulation of laws on this subject since 1836, and the voluminous records pertaining thereto which the Spanish administration Jeft unfinished in the latter days of its existence, afford convincing proof. During the period of American rule the problem has not pressed for immediate settlement until quite recently, when the exchange rate between United States currency and Mexican silver fell below the commonly accepted commercial rate of 2 to 1. When the daily bank rate reached 1.98 and promised to go lower the trade in Manila reduced the rate at which United States currency was accepted even lower than the bank rate, and it was reported that in certain remote localities in the provinces, where conditions were imperfectly understood, there was for a few days an even exchange of United States and Mexican dollars.

As a provisional remedy General Orders, No. 107, current series, office of the United States military governor in the Philippines, was issued, and the government in addition engaged itself (reserving the right to cancel the arrangement at any time) to reimburse the banks in kind for all Mexican silver which they were compelled to pay out in receiving United States currency from disbursing officers and trade at the rate first above named. The effect was immediate and the public confidence was restored without loss to the Treasury, but the experience gained is as yet contined to too limited a period to enable a conclusion to be expressed as to the desirability of continuing this arrangement, or as to the more permanent remedy which should replace it.

The recommendation of the treasurer of public funds that the Spanish seized funds be taken up on his books as “miscellaneous” is concurred in with the qualification that it be first made to appear, by an expert examination of the books of the treasury kept by the preexisting island government, that there are no objections to such a

The balance on hand at the end of the fiscal year of 1899–1900 was 4,045,133.51 pesos, and on August 31, 1900, 6,520,015.48. To this total should be added the amount of Spanish seized funds of 890,229.86 pesos, making a grand total of available assets on August 31, 1900, of 7,410,245.34 pesos.

course.

REPORT OF MILITARY GOVERNOR OF PHILIPPINE ISLANDS.

7

AUDITOR'S DEPARTMENT.

The office of auditor was created by General Orders, No. 3, office military governor, series of 1898, which designated Maj. Charles E. Kilbourne, paymaster, U. S. A., as auditor of public accounts. Subsequently Major Kilbourne was relieved from this duty and Lieut. Col. C. L. Potter, U. S. V., appointed in his place on October 10, 1898, who was in turn succeeded by Capt. Albert Todd, Sixth U. S. Artillery. Thereafter, on April 1, 1900, Captain Todd was succeeded by Mr. Walter G. Coleman, the present incumbent, who thus became the first civilian auditor of the archipelago.

From data furnished by the auditor since the rendition of his annual report the following information is obtained, showing the receipts and disbursements of the military government in the Philippines for the first eight months of the year 1900, and which is here noted not only as a matter of first importance and general interest, but as well on account of its close connection with the reports of the various departments that follow in order.

The total receipts from January 1 to August 31, 1900, were, in Mexican currency, $12,041,504.71, and the total disbursements for the same period were $7,407,988.71, leaving a surplus of receipts over disbursements in the sum of $1,633,516. Of the total receipts for this period those from customs amounted to $9,952,936.68; those from internal revenue, $902,484.97, and from miscellaneous or all other sources, $1,186,083.06. Of the disbursements there were expended in the customs service for this period $269,844.52, and for the expenses of internal revenue, $71,498.50; for miscellaneous or all other expenses of government, $7,066,645.69.

These figures do not include receipts for the same period from the postal service of $32,771.98, with disbursements for the expenses of such services in the sum of $31,408.34, both of these amounts being expressed in American currency.

Recent instructions from the War Department requiring a reaudit of the accounts from the commencement of our occupation have imposed a great deal of extra work upon this department, for which an adequate clerical force was not immediately available. This work is now rapidly approaching completion, and all required records will soon be brought up to date.

CUSTOMS SERVICE.

The initial difficulty of securing by detail from the Army officers and enlisted men qualified for the performance of the technical duties of the customs service was measurably overcome in the first few months of administration, since which the record of this department has been one of continual progress and gratifying success.

Manila was opened to commerce under American occupation as a port of entry on August 20, 1898, in obedience to instructions of the President, which required the opening of ports and places in the Philippines in the possession of the United States to the commerce of neutral nations equally with our own in articles not contraband of war upon the

payment of the duties in force at the time of the importation. Under these instructions Iloilo was opened to commerce on February 22, 1899; Cebu on March 14, 1899; Zamboanga, Siassi, and Jolo on December 26,1899.

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