UNEXPENDED BALANCES JUNE 30, 1901, NOT YET ASCERTAINED. At the close of the fiscal year there were in the hands of the disbursing officers and agents large balances of old allotments or appropriations by the military governor, as well as unexpended balances of appropriations by the Philippine Commission, the exact amount of which can not be stated until the accounts are completely audited and stated. Under General Orders, No. 34, of the military governor these balances were required to be repaid to the Treasury and the repayments on this account thus far made aggregate $1,574,636.76. CUSTOMS COLLECTIONS AND DISBURSEMENTS. The total customs collections from the various sources at the six ports of the archipelago, and at other than ports of entry, during the fiscal year were $9,111,794.024 United States currency. The cost of collecting the customs revenues, as shown by the accounts of the customs officers as audited, including refunds, was $276,222.03 United States currency, divided as follows: On account of salaries and wages, $180,424.80; rents and repairs, $8,404.924; regular supplies, $20,915.534; incidentals, $1,651.51; transportation, $38,694.41; miscellaneous, $20,149.494; refunds, $5,977.36. THE POST-OFFICE SERVICE. The post-office service, as distinguished from that of the department of posts, was operated during the fiscal year 1901 at a cost of $111,143.45, while its receipts of revenue were $121,483.82, a surplus of $10,340.37. The department of posts proper was operated at a cost of $47,845.06, while its receipts from miscellaneous sources were $1,348.81, a deficit of $46,536.25. There was, therefore, a net deficit of $36,195.88 in operating the postal service of the islands as a whole. It is impossible at this date (October 15) to summarize, as above, the audited collections and disbursements for the fiscal year on account of the internal-revenue service and the miscellaneous services. PROPERTY ACCOUNTABILITY. Under General Orders, No. 65, Division of the Philippines, issued April 4, 1901, and General Orders, No. 38, Office of the Military Governor, issued May 11, 1901, a very large part of the portable property previously purchased by the military government from insular funds was dropped on the property returns rendered to this office and taken up on regular army returns. The value of the property so transferred, at a very low valuation, but as stated by the transferring officers, was $638,573.61 United States currency. There still remain to be added lists from a few officers who have not yet reported. In addition to the property above mentioned as turned over to the army, 16 gunboats purchased from the insular revenues at a cost of $530,000 Mexican currency, or $265,000 United States currency, were transferred to the United States Navy under military orders of prior date. Armament and accessories to the ascertained value of $19,147.79 United States currency were also transferred to the navy, together with a large quantity of such property of unascertained value. It therefore appears that up to the date of submitting this report there had been turned over to the United States Government property purchased from insular revenues to the ascertained value of $922,721.40 United States currency. This stated valuation, as disclosed by the estimates submitted, was greatly below the actual value. THE VISAYAS CONCESSION. Under the terms of article 18 of what is known as the "Visayas concession," made April 14, 1897, by the Spanish Government to the Eastern Extension, Australasia and China Telegraph Company, Limited, of London, England, that corporation is making monthly deposits in the treasury of the archipelago of a percentage of its business and claims under article 10 of said concession an annual subsidy of £4,500 sterling. No payments on account of this subsidy have been made by the Philippine government and the claims of the corporation and the Philippine government are unadjudicated. The deposits made to June 30, 1901, as shown by the records of this office, and expressed in United States currency at 2 pesos local currency to $1 United States currency, have been as follows: This concession has been the subject of much correspondence on the part of the administrative branches of the government and this office. It is here brought to your attention for such administrative action as may be deemed advisable. THE UNITED STATES ACCOUNTING SYSTEM BEING APPLIED. In conclusion it should be stated that the United States accounting system in all of its ramifications, and with its checks and safeguards, is being inaugurated here, and thus far no difficulty has been experienced in the work, notwithstanding the conditions in the Orient, as compared with those in the home Government, are vastly different. It is hoped that the accounts of the fiscal year 1901 may be completely settled, adjusted, and stated early in December, at which time the annual report required by rule 38 of act 90 will be submitted. Respectfully, A. L. LAWSHE, Auditor. APPENDIX X. REPORT OF THE TREASURER OF THE PHILIPPINE ARCHIPELAGO TO THE CIVIL GOVERNOR ON THE OPERATIONS OF THE TREASURY FOR THE FISCAL YEAR ENDING JUNE 30, 1901. OFFICE TREASURER OF THE PHILIPPINE ARCHIPELAGO, The CIVIL GOVERNOR, Manila, P. I. SIR: I have the honor to submit herewith a report of the operations of the treasury of the Philippine Archipelago for the fiscal year ending June 30, 1901. A statement showing receipts and disbursements during the year, and the fund to which credited and from which disbursed, marked Exhibit A, and a comparative statement showing increase over the previous year, marked Exhibit C, are appended. For the purpose of comparison, the receipts and disbursements of both fiscal years have been reduced to United States currency at the rate of 2 pesos local currency for $1 United States currency. The receipts from all sources during the past year show a gratifying increase over those of the previous year, especially so in customs and internal-revenue collections, the former showing an increase of 60 per cent, the latter an increase of 78 per cent. No postal funds were received at the treasury during the fiscal year 1900 until June, when $18,000 were deposited by the director-general of posts. The expenses of the postal department were paid out of the receipts, and the balance remaining deposited in the treasury. In October, 1900, all postal funds, except those derived from the sale of money orders, were required to be deposited in the treasury, which order was revoked in March, 1901. During the past fiscal year postal receipts to the amount of $95,015.62 were deposited in the treasury, and there was paid out of the treasury on postal account during the same period $120,868.03, leaving a deficit of $25,892.41, as shown by the treasury books. The receipts from miscellaneous sources, which are carried on the books under the head of "Miscellaneous," show an increase of 21 per cent over those of the previous year. Money received from the sale of licenses, water rents, fines, etc., of the provost-marshal-general's department are deposited under this head; there are also included moneys seized from insurgents, from the sale of condemned public civil fund property, and from other sources. There was also received the sum of $446,386.764, which is carried on the books as "Repayments," representing unexpended balances turned into the treasury by disbursing officers. The disbursements on account of customs show an increase over the preceding year of $151,342.57, internal revenue of $93,912.83, and miscellaneous of $1,591,500.46. The Spanish seized funds show a decrease of $100; on opening one of the boxes in which the copper is packed it was found to be short one sack of $50 local currency and in May, while removing the boxes from the old vault to make room for the new steel one, a shortage of one box was discovered, amounting to $150 local currency; the total shortage $200 local currency, equivalent to $100 United States cur rency. Twelve "special deposits" were deposited with the treasurer to be held awaiting further action as to their disposal. The aggregate amount so deposited was $52,352.69 local currency, $1,006.20 United States currency, also a miscellaneous lot of jewelry and a small quantity of melted silver. During the same period two special deposits, and parts of two others, were returned to their owners by order of the military governor. The total amount returned was $12,151.98 local currency, $1,610 Spanish-Filipino and American gold, and a miscellaneous lot of jewelry. Packages Nos. 28, 29, and 37, of the "reserve safe" were ordered returned to the owners by the military governor. These packages contained Spanish-Filipino treasury bonds, the par value of which was $4,600. A statement of all coin, bank notes, bonds, deposit warrants, Spanish-Filipino treasury bills, damaged silver coins, bar silver, copper ingots, and "special deposits," now on deposit with the treasurer, is appended. (See Appendix V.) On July 19, 1900, by direction of the Assistant Secretary of War, submitted through the office of the military governor, the accounts of the treasurer were ordered to be kept in United States currency, the local currency being reduced to that basis at the rate fixed by the United States Treasury Department for the Mexican peso for each quarter, which order was subsequently extended to October 1. Act No. 12, of the United States Philippine Commission, prescribing the methods to be adopted by the insular treasurer in keeping and rendering accounts of receipts and disbursements was enacted October 3, 1900, and the directions and methods prescribed therein have been carried out in the keeping of the books and the rendering of accounts of this department. The system is considered the most practical under the existing conditions of a general use of both local and United States currency. The reports to the Secretary of War of the receipts and disbursements of the treasury during the first quarter of the present fiscal year were stated in United States currency, the rate of reduction of Mexican or local currency to United States currency being 47.6, the rate established by the United States Treasury Department for that quarter. On June 11, 1900, a request of the treasury department for the construction of a fire and burglar proof vault in the treasury building was approved by the military governor, the funds for the construction thereof being appropriated by the United States Philippine Commission October 29, 1900. The amount appropriated was $13,734.83 United States currency, which is in excess of the sum required. The construction of the vault was commenced during May, and the work is still going on, but it will soon be completed, and when finished will provide a secure place for the keeping of funds in the hands of the treasurer. Owing to the large increase of local currency on deposit |