24

But the insurgents who were left behind were dissatisfied. Within a few days after the departure of Aguinaldo a meeting was held at Biak-na-bató which was presided over by Isabella Artacho, Aguinaldo's former Secretary of the Interior, which passed resolutions demanding that the next payment of $200,000, instead of being sent to Hong Kong, should be paid to them to be distributed among the people who were in dire need. This demand was complied with. Primo de Rivera says that the balance was by him turned over to his successor, General Augustin. It was never accounted for. Nor is it known what became of the $900,000 which was to be distributed among the deserving of the rank and file. The leaders are still charging one another with the misappropriation of this money. Artacho went to Hong Kong and brought suit in the British courts against Aguinaldo for an accounting and distribution of the fund, but the action was settled out of court to the satisfaction presumably of all parties.25

24 For Aguinaldo's account, see the Reseña veridica, in Cong. Rec., XXXV. Appendix, pp. 440-445. Agoncilo's account given to General Greene is printed in Sen. Doc. 62, 55 Cong. 3d Sess., Part 1, p. 430.

25 "Artacho, who had received 5,000 pesos as his share of the second payment, arrived in Hong Kong and on April 5 demanded 200,000 pesos of the insurgent funds, probably under the agreement that he should establish a company in Hong Kong for the benefit of the former leaders and not merely of those who had accompanied Aguinaldo. But the leaders in Hong Kong had denounced that agreement, and refused to pay. He then entered suit before the supreme court of Hong Kong, calling upon Aguinaldo for an accounting of the trust funds deposited in his hands for the benefit of Artacho and others, and asked for an injunction restraining Aguinaldo or any member of the junta from handling or disposing of any part of said funds. He filed as evidence copies of the Biak-na-bató agreement and of the agreement made by the leaders on December 19. This suit was brought not merely in the name of Artacho, but in that of all the exiles who were described as living in exile in Hong Kong in accordance with an agreement made with the Spanish government. Artacho probably had adherents among these men, some at least of whom were utterly weary of waiting in Hong Kong and of living upon what was doled out to them. Some at least saw no chance of any other fate than indefinite exile spent in dependence upon the inner group for even the means of existence. The suit was in equity, and called for an accounting for the trust funds which the complainant recognized were legally in the hands of Aguinaldo. It could be carried on only with great difficulty without his presence and without his account books. Meetings were held, and Artacho was denounced as attempting to extort blackmail, but he refused to yield, and Aguinaldo, rather than explain the inner workings of the Hong Kong junta before a British court, prepared for flight. A summons was issued for his appearance before the supreme court of Hong Kong on April 13, 1898, but he was by that time beyond its jurisdiction. He drew out the

A study of the evidence relating to this remarkable transaction leads to the conclusions that the Filipinos were forced by circumstances to accept what the Spanish government was willing to give them and that the government was never willing to complicate the settlement with any definite promises relating to reforms. The expressions of hope and confidence of the departing insurgents were left unanswered, and subsequently were ignored. The war had gone against the Filipinos. Their cause was lost and the vengence of the government stared them in the face. Probably not one of the leaders at that time would have declined a pardon and free transportation to Hong Kong. Paterno's suggestion presented the possibility of better terms, and a demand for the reforms was included in their proposition. Primo de Rivera was willing to pay the money for a peace. With the leaders discredited and out of the country and the people unarmed, peace might well be lasting, but he had no intention of stipulating for any reforms. He saw no necessity for doing so, and the insurgents were not in a position to enforce any demands. Aguinaldo and his representative did all the proposing, conceding, writing and signing. As has been said, Primo de Rivera signed nothing but the checks. All references to the reforms for which the insurgents had gone to war, except the hope for the future which Paterno expressed, were stricken from the documents. Notwithstanding this, Aguinaldo subsequently claimed that the granting of the reforms was the principal consideration for the surrender and departure. But his claim finds no corroboration in the records or in the circumstances. When an instrument is signed after a clause therein has been stricken out it is ordinarily conclusive evidence that the

50,000 pesos from the Chartered Bank, which had become due according to the terms of the deposit, and perhaps such other sums as could be drawn upon by check, engaged passage for Europe by way of Singapore for G. H. del Pilar, J. M. Leyba, and himself under assumed names, appointed V. Belarmino to succeed to his functions, and gave him checks signed in blank to draw the interest of the sums on deposit to provide for the support of the exiles. He gave as his reason for departure that he was going to remain under cover until Artacho could be bought off, but he intended to go far afield for this purpose, as he gave his destination as Europe and the United States." Taylor, Phil. Insurg. Recs,

parties do not intend the stricken clause to be a part of the binding agreement.

It thus appears that the Spanish government did not promise definite reforms or intend that its freedom of action should be restricted by any inference which the insurgent leaders might draw from the terms of their surrender. The clause inserted by Paterno in the agreement and the hopes expressed in the telegrams of the departing leaders met with no response. With Aguinaldo and his lieutenants discredited and in exile the government intended to exercise its own discretion as outlined by Primo de Rivera in his telegram to the Ministry.

Aguinaldo felt that his followers would benefit by the transaction. His demand for reforms had been denied and stricken from the written agreement. A pardon and ample means "to support their lives" abroad and the distribution of a large sum of money among his followers, thus relieving their immediate necessities, were something substantial saved from the wreck of the insurrection.

The fact that after the arrival at Hong Kong Aguinaldo carefully conserved the money which had been paid to him as a trust fund shows conclusively that he was not actuated by selfish pecuniary motives. Undoubtedly he intended to organize a new revolt when conditions became favorable and the money was in fact used for that purpose."

26

26 There was a plan to form a commercial company with the fund as working capital and under this cover distribute the money to the stockholders. Evidently Aguinaldo had other ideas.

PART III

The Spanish Colonial System

"Bending every energy for years to stay the tide of change and progress, suppressing freedom of thought with relentless vigor, and quarantining herself and her dependencies against new ideas, conservatism grew to be her settled habit and the organs of government became ossified. Policies of commercial restriction which were justifiable or at least rationally explicable in the sixteenth century, lasted on, proof against innovation or improvement, until the eighteenth century and later. Consequently from the middle of the seventeenth century at the period of the rapid rise of the colonial powers of France, Holland and England, the Spanish colonies find themselves under a commercial régime which increasingly hampers their prosperity and effectually blocks their advancement." Edward G. Bourne.