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Statement resumed: Taxes on the admission of these could be easily made $10. In fact, it has been $40; has run on for years at varying rates, and still the Chinaman will come. I have no doubt that many might be admitted to advantage; probably there should be limitations as to tenure of stay, numbers, and character of employment and pursuits. Then admission will be opposed by the natives, but it is my conviction that they can be brought in this, as in other matters, to look upon it in a reasonable light, after our determination as to what is expedient.

With strength, firmness, justice, and fair dealing, we can do anything with the native, and make a happy and prosperous country beyond any present expectations.

Mr. FRYE:

Q. I would like to ask a question which occurs to me now. It was stated that one-half of the Spanish troops in the Philippine group was native. Do you know anything of that?-A. I think quite that. The best figures we could have at the time of the surrender and before that and pretty well carried out, was that they had between 13,500 and 14,000 men at Manila. I asked Jaudenes how many Spaniards there were, and he said 7,500 to 8,000. We took 22,000 rifles, but many were in the arsenal. In the other islands the proportion would be greater than that.

Q. How did they succeed while this war was going on-this insurrection-in keeping these soldiers within their allegiance?-A. I think the way many of the insurgents got their arms was through desertions. But there were, of course, large numbers of men who had lived under Spanish rule and in contact with the Spaniards, who regarded the natives as a low order of people, the Spaniards as their masters, and they clung to them, as I suppose the negroes did in our civil war to their white masters.

Q. What kind of soldiers did the natives make with the Spaniards? A. I think very much the same as the army Aguinaldo had. The Spanish army made a most wretched showing when you come to think of it, for Aguinaldo to go there without a man and then to drive even 7,000 Spaniards alone 25 miles to their defenses. It is about as feeble as their naval conduct.

Q. What proportion of native soldiers do you think it would be safe for us to have acting with our command, under white field officers but under native company officers, in our control of the Philippine Islands?-A. I think the question of native company officers might have to be put off for some time, except the noncommissioned officers. I would first see what turn things took in that way. I think the Filipinos have had enough fighting and want peace, and they will gain respect for us, and I think in a little while it would require very few soldiers, possibly none. You take it in Burma. I talked with an Englishman on our steamer, who is deputy chief of police or deputy collector, and he said he had a considerable force under him and he was the only white man for 40 miles, and that he would not see another one for three months.

Q. You think it would be safe to take half and half?—A. I think three to one would be safe. I think 10,000 men would soon suffice for us, and after a year it could be reduced to a much smaller number.

Mr. REID:

Q. You would want the commissioned officers white just now?A. Yes; I would let the civil offices go to some of them, and see how they

got on, and I have no question of the result. In some of the English provinces they have a civil governor and a native governor. The moment the latter rebels at any action of the governor he is speedily brought to agreement.

Mr. FRYE:

Q. In your judgment, from what you have seen of the islands, how near will the revenues of the islands support the government?— A. That is going to depend on which way you make the revenue, and also the expenses-how much the army and navy will cost. The custom-house gave last year-which was, I suppose, a wretched year for business-between four and five millions of revenue at Manila. The personal tax was a great source of revenue, and the real-estate tax and the licenses were very great. But with a land tax and with a personal tax it is easy enough, without making it irksome, or without complaint, to pay the expenses of the islands.

The CHAIRMAN:

Q. And raise how much revenue?-A. That is hard to say.

Q. They have been raising nine millions, we understand?-A. It should have been much more. Thefts and extortions prevailed. Monopolies were sold for which the Government received paltry sums; the concessions granted from Madrid, e. g., for the manufacture of beer, the sole privilege with immunity from all duties, the Government receiving only $120 a year. The largest tobacco company had most valuable privileges with apparently little payment. The opium monopoly for Manila and the adjoining province paid the very inadequate amount of about $180,000 a year. Special fees pertaining to the custom-house, etc., were paid to the archbishop.

Mr. GRAY:

Q. Those things have been stopped. How do they take it?-A. The merchants like it very much.

Q. Are the priests making any difficulty?-A. No, sir; they are too frightened, and many of them have gone away.

Mr. FRYE:

Q. Do you think they will go home, all of them?-A. The thing will be so much changed that there is no profit to them or danger from their remaining.

Q. As I understand it, then, your opinion is that with a fair and reasonable imposition of taxes in the islands, and reasonable duties on imports, the islands will support themselves in all the forms of government necessary, military and civil?-A. I think certainly it will. I do not say that the first year it is going to do that; you have to give time for it; but I think there will be so much capital going into the place which will be willing to pay for privileges that it will only be a question of a short time.

Mr. REID:

Q. Would it be possible, by a fair and reasonable tariff, equally applicable to the importation of all nations, collected at the principal custom-houses there, to raise money enough to administer the government?-A. A tariff alone?

Q. Yes, sir.-A. On imports and exports?

Q. On imports alone.-A. I should rather doubt that. But I've never heard complaints of the export charges, and very likely those,

with the imports, will suffice. I do not see any objection to the cedula tax.

Q. Has not that been the one of which the most complaint was made?-A. It has been too high; I think that is the reason. I do not see the objection to the land tax. See how well it has worked in Egypt, and in India. Dicey says in his article that it is paid more readily than under the old government, because they know that they are being treated fairly, and that when it was once paid they would not be called upon to pay it again. I will read from Mr. Dicey's article: "Up to 1882 the acreage of taxable land in Egypt was calculated at 5,000,000. It is now increased by over 600,000 acres, or close upon 13 per cent. Yet the total amount of the land tax-the great permanent source of revenue in Egypt—is actually less in 1897 than it was in 1881."

According to Sir Edwin's figures the average land tax per acre has been diminished during the above period from 22s. to 18s. 3d. The arrears of land tax, which formerly attained colossal proportions, have now been practically paid off. The fellah, when once he had paid his annual contribution, has no longer any apprehension, as he had in the days of Ismail, of being called upon to pay again in advance long before the date of the next installment had become due. Mr. GRAY:

Q. As you understood Mr. Reid's question in regard to the production of revenue from the taxes collected at the custom-houses; they were to be levied equally upon all nations, including the United States? A. Yes.

PRELIMINARY REPORT OF DR. GEORGE F. BECKER, OF THE UNITED STATES GEOLOGICAL SURVEY, ON THE GEOLOGICAL AND MINERAL RESOURCES OF THE PHILIPPINES.

DEPARTMENT OF STATE, Washington, November 4, 1898.

SIR: I have the honor to inclose, for the information of the commission, copy of a letter from the Secretary of the Interior, transmitting a copy of a preliminary report made by Dr. George F. Becker, of the United States Geological Survey, in regard to the geological and mineral resources of the Philippine Islands.

I have the honor to be, sir, your obedient servant,

Hon. WILLIAM R. DAY,

JOHN HAY.

Chairman of the United States Peace Commission, Paris, France. (Inclosure: From Interior Department, October 29, 1898, with inclosure.)

DEPARTMENT OF THE INTERIOR,
Washington, October 29, 1898.

SIR: In May, 1898, by arrangement between the honorable the Secretary of War with this Department, Dr. George F. Becker, geologist, of the United States Geological Survey, accompanied the military expedition to the Philippine Islands, for the purpose of procuring information touching the geological and mineral resources of said islands.

Dr. Becker has made a preliminary report on the subject, a copy of which, together with a copy of a letter from the director of the Geological Survey, submitting the same for my consideration, are herewith transmitted for your information.

Very respectfully,

The honorable the SECRETARY OF STATE.

TP- -33

C. N. BLISS, Secretary.

513

MEMORANDUM ON THE MINERAL RESOURCES OF THE

PHILIPPINE ISLANDS.

By GEORGE F. BECKER, United States Geological Survey.

This brief memorandum, prepared at the request of Admiral Dewey, probably covers all the main discoveries in the geology of the Philippines which are of economic interest. It is drawn up from data recorded in the Spanish mining bureau (Inspeccion de Minas), but not published, manuscript mine reports by the late William Ashburner, verbal information obtained iù Manila, and from various technical publications, of Semper, Santos, Roth, Drasche, Abella, and others.

Only about a score of the islands are known to contain deposits of valuable minerals. These are arranged below in the order of their latitude to give an idea of their geographical distribution, and to facilitate finding the islands on the map. The latitude of the nothern end of each is taken as that of the island. The character of the valuable minerals stated in the table will afford a general notion of their resources. Mineral-bearing islands and their resources.

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The distribution of each mineral or metal may now be sketched in somewhat greater detail. In many cases the information given in this abstract is exhaustive, so far as the available material is concerned. The coal fields of Cebu, however, have been studied in some detail by Mr. Abella, and in a few other instances more extended information has been condensed for the present purpose.

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