the death penalty, entered in 1601. Abolished in 1589, the Supreme Court was reestablished in 1596, and continued with varying functions throughout the Spanish régime. For many years it was not only a court of justice, but a superior council, with important legislative and executive powers as well. The Governor-General was president of the Supreme Court until 1861. As finally organized, it was composed of one chief justice, two presidents of chambers (civil and criminal branches), eight associate justices, additional justices for vacancies, an attorney-general, and other officials. It had some original jurisdiction, and appellate jurisdiction over the entire archipelago in civil matters, and over the Province of Manila and fifteen enumerated provinces adjacent thereto, in criminal matters.

The superior criminal courts of Cebu and Vigan were created in 1893. The personnel of each of these courts consisted of a chief justice, two associate justices, an attorney-general, an assistant attorney-general, and a secretary. They had appellate jurisdiction of criminal cases coming from the surrounding territory.

Following the separation of the executive and judicial powers of the alcaldes mayores, a number of provinces and districts were given at least one court of first instance. These were divided into three classes. The courts of first instance had both civil and criminal jurisdiction, including appeals from justice of the peace courts. For every such court there was a fiscal and a clerk of court. A register of property with a recorder was also established in each province.

Justice of the peace courts, succeeding the gobernadorcillo who had previously exercised judicial functions, were authorized in 1885 for every municipality. Appointments were made by the Governor-General on the recommendation of the Chief Justice of the Supreme Court. Justices of the

peace received no salaries; their only compensation was the fees which the law allowed them to charge. They had jurisdiction, in their respective municipalities, in civil actions, when the amount claimed did not exceed two hundred pesos, and in criminal cases, over minor offenses.

29. Ecclesiastical Administration. Since the principle of the separation of Church and State was unknown to Spain, it was inevitable that the same idea should persist in a great mission like the Philippines. The extent of Church intervention in the civil administration is debatable. At least some facts are certain: The Church received financial support from the State. On different occasions the supreme civil authority was vested in the prelates. The archbishop and bishops had membership in administrative boards. The friars were exempted from trial for offenses, except the most heinous, in the ordinary civil courts. Moreover, to the everlasting honor of the great religious orders, be it said further that their work was not limited to religious instruction. The spread of European customs, installation of printing presses, the teaching of the Spanish language, instruction in the arts and trades, medical treatment, training in music, introduction of improved agricultural methods these are some of the benefits of clerical activity to which “the Philippine Islands owe, more than to anything else, their internal prosperity; the Malay population, its sufficiency and happiness."1

The diocese of Manila was founded in 1578. Three years later came the first bishop, suffragan to the archbishopric of Mexico. Manila was erected into a metropolitan see in 1595 by His Holiness, Clement VIII.

1 W. Gifford Palgrave, Ulysses, or Scenes and Studies in Many Lands, essay on "Malay Life in the Philippines" (1876), page 150. See also McKinley, Island Possessions of the United States, page 209.

The head of the ecclesiastical system was the archbishop of Manila, assisted by four bishops. Subordinate to the bishops were the curates or parish priests appointed to each town. These later, in addition to their religious duties, had civil functions in the administration of municipal government.

The judicial functions of the Church were represented by the archbishop's court and the commissioner of the Inquisition. This court was made up of the archbishop, the vicargeneral, a notary, and other officials. The bishops had similar courts. The ecclesiastical courts tried cases coming under the canon law, such as those relating to marriage, and ecclesiastical offenses excepting those of an atrocious nature. As to the Inquisition in the Philippines, it was under the jurisdiction of Mexico and its powers were strictly limited and defined.

30. Public Finances. The budgets required the approval of the Minister of the Colonies. For the financial administration of the Islands there were managers of the revenues, directly responsible to the central government, provincial officials of different classes, and municipal agents.

In 1854 the receipts and expenditures for the colony were 33,000 pesos and 42,000 pesos, respectively. For the fiscal year 1896-1897 each was estimated at approximately 17,000,000 pesos. It was always difficult and sometimes impossible to pay the expenses of the government from the Philippine treasury. The deficits were met, if at all, by the royal treasury of Mexico. This subsidy, known as el situado, amounted to about a quarter of a million pesos annually.

Certain sources of income decreased, or were abolished, in the course of time. Tribute, at first the principal tax, with the advance of civil government, became limited to recognition of vassalage by non-Christians. Forced labor on the public works, called polos, was abolished in 1884,

and personal cédula tax was substituted. The tobacco monopoly was given over, and to take its place, urbana and industrial taxes were established. Monopoly of the opium contract, the profits of the lottery, stamped paper, and taxes on the Chinese as a class are other sources of income not continued by the American government.

Customs duties and what may be classified as internal revenue taxes furnished the larger part of the insular revenue. Discrimination in the tariff against the poor and in favor of the rich was a striking characteristic. The sources of internal revenue were of five classes: The so-called industrial taxes; the urbana taxes; the stamp taxes; the sale of certificates of registration; and the public domain. The industrial taxes and the urbana taxes together constituted practically an income tax of roughly five per cent on the net income of persons engaged in industrial and commercial pursuits and on the owners of improved city property.

An analysis of expenditures proves interesting in the light of present conditions. Thus over one-half was paid out in salaries. Developmental divisions, such as public works and public instruction, received scant assistance. Items which now fall on the American Government, such as army and navy, diplomatic and consular service in the Orient, the expenses of the Ministry of the Colonies, and of the Church (now left to its own resources), were included. Fully seventy per cent of the income went to sustain functions which, under the American administration, are not a burden on the Philippine Government.

The municipalities imposed taxes according to their needs. The municipal council could “farm out” the collection of its taxes. The annual expenses of the municipalities were negligible. For the year 1895-1896, the budget for the municipalities totaled approximately 2,000,000 pesos. Cédulas

made up four-fifths of the revenue; public instruction was the largest item on the side of expenditure. The budget for the city of Manila was 667,538.06 pesos; for the municipalities of the Province of Albay, 23,907 pesos. A town of twenty thousand inhabitants expended only 968 pesos.

The currency of the colony was on a silver basis with the peso as the standard of value. Mexican currency was most prevalent, but the money of Spain and other countries also circulated. A mint began operations in the Philippines in 1861.

31. Commerce. - Commerce was much restricted owing to the Spanish policy of exclusion. The Philippines were for a long time but a link in the trade of Spain with Spanish America. Not until the latter part of the eighteenth century was Philippine trade opened to the world; not until 1834 was Manila made a free port. Exports and imports combined, for the last five years of the Spanish régime, averaged 70,000,000 pesos annually. The first Philippine railway line, between Manila and Dagupan, was officially declared open in 1892. Telegraph and cable service existed. Some fine public buildings were constructed, but permanent roads were unknown.

32. Education. - Education began from the top and worked toward the bottom. The College of San José was founded in 1601, the University of Santo Tomás in 1619. The latter became a Royal and Pontifical University and the only institution of higher learning in the Philippines. Connected with the University of Santo Tomás as a preparatory school was the College of San Juan de Letran. While a University of the Philippines was proposed, the project was never brought to fruition.

Royal orders for increasing the educational facilities were issued from time to time, but as no provision was made for