1906, the application of the United States coastwise law to the trade between the United States and the islands, and left with the Philippine Commission the control of the interisland coast wise trade until such time as the United States should provide legislation for vessels engaged therein.

INTERISLAND TRADE.

This authority is in accord with the recommendations of the Philippine government. The trade has been carried on under the rules prescribed by the insular government, amended and modified from time to time as conditions warranted. As the regulations had been the subject of some complaint, the civil governor, under date of December 8, 1903, directed a committee, consisting of the acting collector and other officials of the insular customs service, together with representatives of the local trade, to make an investigation and report with recommendations as to alleged hardships. The committee, after thoroughly inquiring into existing conditions and considering complaints and suggestions submitted by shipping interests, made the following recommendations as to the amendment of existing laws:

The application of a uniform license fee per net ton to vessels engaged in the same class of business, instead of the discriminating charges made under acts of the Philippine Commission No. 355 and No. 1026;

Modification of conditions governing entry of closed ports;

Exclusion of foreign vessels from local trade;

That the Quartermaster's Department be prohibited from chartering foreign vessels for use in Philippine waters;

An increase in the number of inspectors of hulls and boilers:

A modification in requirements as to carrying licensed officers on different classes of vessels;

Relaxation of quarantine restrictions in so far as safety permits; and

Additional docking and unloading space on the banks of the Pasig River for coast wise vessels.

With the findings and recommendations of the committee for guidance, it is believed that a supervision and control of the local carrying trade can be maintained that will not be a burden to owners, and which will at the same time protect the interests of the trade and of the government.

Under the provisions of section 117 of the Philippine customs administrative act there had been issued on June 30, 1903, as shown in the following tables, based on statements rendered by the collector of customs at Manila, 4,125 certificates of protection. During the next twelve months 447 additional certificates were issued, making the total number issued to and including June 30 of the present year 4,572.

Vessels with certificates of protection outstanding.

The classification of Philippine vessels, as well as United States vessels, enumerated in the above statement, is as follows:

The following statement shows the number of vessels licensed (first and second class) to engage in local trade to June 30, 1903, the number of licenses issued during the fiscal year 1904, and the total number issued during the period of American occupation, at the entry ports mentioned: The number of small craft under 15 tons licensed according to the provisions of section 141 of act 355, heretofore estimated at 8,000 for the coast wise ports, has undoubtedly undergone a proportionate increase, but even with the use of that number as a basis in the absence of more recent figures, there were on June 30, 1904, approximately 20,850 vessels of all classes, with an aggregate tonnage of 176,761 tons, licensed to carry merchandise and passengers in the interisland trade.

a As far as available records permit, vessels previously documented have been eliminated from the above figures.

During American occupation there has been a constant increase in coastwise tonnage entered and cleared at the different ports in the archipelago, as will be seen from the following figures obtained from official reports:

Gross tonnage coastwise vessels.

Act No. 520 of the Philippine Commission, under authority contained in the act of Congress of March 8, 1902, permitted strictly foreign vessels to engage in the Philippine coastwise trade under special licenses until July 1, 1904. Up to December 31, 1903, twenty of these licenses had been issued to foreign vessels, but on January 1, 1904, only fourteen of them were operating. These vessels ranged from 4 to 618 tons. Although the act of Congress approved April 15, 1904, gave the Philippine Commission power to extend the privilege referred to beyond July 1, 1904, the findings of the committee appointed by the civil governor on December 8, 1903, led to the recommendation that no more licenses be issued foreign vessels after the expiration of those already granted under the terms of act 520. As the aggregate tonnage of such vessels amounted to but little more than 2,000 tons, it is believed that the influence of their removal and the elimination thereby of a source of complaint on the ground of interference with the business of local shipping will be more beneficial than otherwise. On the whole, statistics show a continued increase in the number and tonnage of vessels available to carry on trade between ports of the archipelago; and in concluding this subject I have only to renew my suggestion in regard to the registry of such craft-that all vessels licensed by the collector of customs to a certain date and operating in the interisland trade under the American flag shall be made eligible to United States registry, and thereafter admit only such as are built in the United States or in the Philippine Islands.

OCEAN CARRYING TRADE.

The figures on the carrying trade for the fiscal year 1904, as compared with previous years, show a decided increase in the volume of business done under the American flag. Including gold and silver, the total importations into the islands during 1904 aggregated $34,303,480, of which amount $2,101,234, or 6 per cent, was delivered in American vessels, this being an increase from $738,712, or 2 per cent, of the total in 1903. British vessels carried $16,358,774, an increase of more than $2,000,000 over 1902; German, $6,572,958; Spanish, $4,879,778; Norwegian, $1,218,238, and all other flags, $3,172,498. Of the $34,411,623 worth of exports shipped in 1904, $3,250,315 left the islands under the American flag, an increase of $2,584,815 over 1903; British vessels took $23,945,645.

Of the $4,843,616 worth of merchandise and coin received from the United States at Philippine ports during the fiscal year 1904, $703,125 was carried in American bottoms.

Exports to this country aggregated $11,102,860, all but $2,906,169 leaving in foreign vessels.

The shipping movement in American bottoms during the past two years shows the entrance and clearance at the port of Manila with cargoes from and for the United States markets to be as follows:

The statistics given below as to foreign shipping tonnage engaged in the commerce of the islands for a number of years may prove of interest. The annual average during American administration has been 1,025,518 tons entered and 1,025,446 cleared from ports of the islands, a healthy showing when compared with the record for former years, the average for the period 1885 to 1894 being but 326,672 tons entered and 335,127 tons cleared. This increase in tonnage movement is clearly shown, the figures relating to the former administration being obtained from statistics published by the Spanish Government, while those for the last six years are according to returns of the present customs service of the islands.

The number of vessels and the amount of tonnage during any one. of the last five years are unequaled by corresponding figures pertaining to yearly periods of Spanish administration for which statistics are available.

Foreign shipping tonnage, by five-year periods, 1885 to 1894.

Foreign shipping tonnage, by years, during United States administration.

IMMIGRATION.

The official returns on immigration into the Philippines for the fiscal year 1904 show the arrival of 27,988 immigrants, an increase of 3,852 over the number entering the islands during the previous year. According to nationality 13,151 were Americans, 9,098 Chinese, 2,770 Japanese, 941 Filipinos, 683 Spaniards, 409 English, and 940 all others. The increase in American immigration over last year is approximately 20 per cent. Of the 15,355 immigrants entering the islands for the first time, practically three-fourths came direct from the United States to engage in different professions and trades; most of them did not specify the nature of their occupation, but among those who did were 333 teachers, 117 engineers, 50 physicians, 47 clergymen, 33 lawyers, 406 clerks and accountants, 186 merchant dealers and grocers, 58 mariners, and 18 miners. Many of the above were through civil-service appointments from the United States.

Of the 9,098 Chinese going into the islands, more than 8,000 possessed certificates entitling them to readmission within a certain period. The remainder of those who entered for the first time were admitted under the exemption clause of the Chinese-exclusion act and include, among others, persons belonging to any learned profession. The insular authorities have had considerable difficulty in enforcing the registration act, in that the Chinese themselves have not been favorable to it nor has local sentiment been favorable to the detection of unregistered Chinese. The period of registration expired April 29, 1904, having run the full two years allowed by the original act of Congress, at which date 49,659 certificates of residence had been approved and about 20 Chinese were subject to deportation in accordance with the provisions of the act, although the record is not yet complete.

PHILIPPINE EXPOSITION AT THE WORLD'S FAIR, ST. LOUIS.

The Philippine exposition (for such it is rather than an exhibit) has been acknowledged by all who have visited the great World's Fair to be the most interesting feature of the Louisana Purchase Exposition. Its purpose and the law authorizing the same were set forth in last year's report.

It covers some 50 acres of ground, upon which have been erected about 100 buildings, and nearly 1,300 natives of the Philippines have been on the ground. For this purpose the total appropriation made by the Philippine government was $946,302.36, in addition to which was the approximate sum of $200,000 allotted by the Louisiana Purchase Exposition Company. In round numbers, to establish, maintain, break up, distribute, and return to Manila the Philippine exposition will cost some $1,500,000. The revenues or receipts will be some $500,000. The probable net cost to the Philippine government will be $1,000,000.

Some 70,000 exhibits have been contributed by 10,000 exhibitors. They represent manufactured goods, fine arts, agriculture, game and fish, Philippine woods, and educational exhibits. The exhibits and native building material collected in the Philippine Islands and brought 10,000 miles to St. Louis, weighed some 10,000 tons. It was a tremendous undertaking, and the cost of the same has been a great burden upon the Philippine government. The work was under