The bonded indebtedness of the Philippine government, including the bonded indebtedness of the cities of Manila and Cebu, has not changed since the last report. It is as follows:

Ample sinking funds have been provided by law for the retirement of the above-mentioned bonds at or before maturity. The status of these sinking funds is satisfactory.

RAILWAY BONDS.

During the year bonds of the Manila Railroad Co. to the face value of $3,490,000 were issued against completed construction. These bonds, under the terms of the concessionary grant, are guaranteed as to interest by the Philippine government. To December 31, 1914, bonds so guaranteed as to interest were outstanding as follows:

Manila Railroad Co..............
Philippine Railway Co.

GOLD-STANDARD FUND.

$10,575,000 8, 551, 000

On

Excess increments to the gold-standard fund to the amount of $430,619.19 were transferred to the general fund of the insular treasury during the year under consideration, making the total transfers on this account to December 31, 1914, $2,858,979.21. that date, the gold-standard fund consisted of $9,228,094.72, of which $4,221,500 was invested in loans to Provinces, municipalities, and the Manila Railroad Co., the remainder being in cash deposited with banks at interest, and with proper security, or held in the insular treasury, with the exception of $181,174.31 represented by accounts receivable.

SILVER COINAGE.

During the year P152,502.20 in Philippine silver coin was shipped to San Francisco mint for recoinage under the act of Congress approved June 23, 1906, making the total of such shipments to December 31, 1914, P30,360,534. There was also shipped during the year Pfs 24,970.50 in Spanish-Filipino coin. It is thought that this practically completes the recoinage provided for by that act sincealthough all of the original coinage shipped to the islands has not been recoined the probabilities are that the amount thereof outstanding was in large part melted for its bullion value or otherwise withdrawn from circulation.

New coin was shipped from the San Francisco mint to Manila during the year to the amount of 256,912.50, making the total shipments of silver coin of the present standard to December 31, 1914, and the minor coinage on hand that date as follows:

During the year ending December 31, 1914, Philippine silver certificates were prepared at the Bureau of Engraving and Printing of the United States Treasury Department and shipped to the islands for circulation as follows:

The Federal reserve act of December 23, 1913, providing that no public funds of the Philippine government may be deposited in continental United States in any bank not a member of the Federal Reserve System, necessitated some readjustments of Philippine deposits. To take the place of depositaries which did not enter the Federal Reserve System, the Chase National Bank of New York and the Mechanics & Metals National Bank of New York were designated as depositaries, making a total of 11 depositaries in the United States. The deposits of the treasurer of the Philippine Islands with depositaries in the United States since June 30, 1903, are set forth in the following table:

The following is a statement of insular receipts and disbursements of the Philippine Islands, exclusive of all items of a refundable character, expressed in United States currency, for the six months ended December 31, 1913, and the fiscal year ended December 31, 1914:

EDUCATION.

The enrollment in the public schools for the year ending in March, 1915, was 610,519, and the average daily attendance was 441,742. Sixty-five American teachers were appointed in the United States in 1914; all other vacancies were filled by the appointment of Filipinos. There were at the end of the school year 230 Filipinos and 196 Americans engaged as supervising industrial or general teachers, and the total teaching force was composed of 539 Americans and 9,306 Filipinos, a total of 9,845.

The work of industrial instruction is being extended, and at the close of the year, in addition to 806 students in the school of arts and trades, there were 106 American and 726 Filipino industrial teachers engaged in the schools throughout the islands.

The city of Manila is each year becoming more important as an educational center, the attendance in the college departments of the University of the Philippines having reached 1,164, that of the Normal School 1,833, the Arts and Trades School 806, and the School of Household Industries 146.

RAILROADS.

The Manila Railroad Co. has continued the extension of its lines in Luzon.

II. PORTO RICO.

* LEGISLATION.

There has been no congressional legislation of importance relating to or affecting Porto Rico during the past year. The bill (H. R. 14866) providing for a new organic law for the government of the island, mentioned in the last report, was not reached for consideration by the Congress at its last session. It is desirable that this or similar legislation should be enacted, as experience has demonstrated that there are many features of the existing basic law unsuited to the needs of the island, and which it is the object of the proposed new law to remedy.

The act of January 28, 1915, amending the United States Judicial Code of 1911 by attaching Porto Rico to the first judicial circuit provides that appeals from the Porto Rico District Court shall be taken in the same manner as from other Federal district courts, thus relieving the Supreme Court and at the same time facilitating the course of ordinary appeals.

SAN JUAN HARBOR IMPROVEMENTS.

The provisions in the river and harbor bill for an appropriation of $850,000 for dredging the harbor of San Juan, of which mention was made in the last report, was not enacted into law by the last Congress. The need for additional deep-water area is more urgent than ever and is constantly increasing with the growing commerce of this port, and it is earnestly hoped that an appropriation for this purpose will be made at an early date. The work of providing additional dock facilities undertaken by the insular government is progressing satisfactorily.

IRRIGATION SYSTEM.

Continuous and satisfactory progress in the construction of the Porto Rican irrigation project was recorded during the year. All of

the important construction work, including the hydroelectric plant, has been completed, and more than one-half of the irrigable area is being supplied with water.

COMMERCE.

The aggregate value of the foreign trade of the island for the fiscal year ending June 15, 1915, was $83,241,203, an increase of $3,731,654 over the previous year. This increase was due to the increased value of exports which totaled $49,356,907, an increase of $6,254,145 over the preceding year, primarily due in turn to the higher price obtained for sugar on account of abnormal conditions. The value of exports of this commodity during the year was $7,000,000 more than in the preceding year, although the quantity exported was considerably less. Imports were valued at $33,884,296, or a decrease of $2,522,491, as compared with 1914.

Coffee was exported in greater quantity than in 1914, but was marketed at greatly reduced prices and yielded a million dollars less than in that year. American goods constituted over 90 per cent of the imports, while exports to the United States were about 85 per cent of the total, coffee being the only export of any importance to countries other than the United States.

IMPORTS.

Imports for the years 1906-1915, exclusive of gold and silver, were as follows:

Exports for the years 1906-1915, exclusive of gold and silver, were