Territory which was submitted to Congress under date of April 8, 1915, brings out very strongly the dependence of the country upon sugar and pineapples and the necessity therefore that in considering tariff legislation Congress should carefully keep in mind the interests of this Territory, which is of such vital importance to the parent country, lying as it does, at what is known as the "Crossroads of the Pacific."

Our analysis of the business and industries of Porto Rico and of the Philippine Islands has similarly indicated the need of proper consideration of the fact that both of these countries are also large producers of sugar. The action of Congress in reducing the tariff on sugar would have been most disastrous to these three insular possessions if the European war had not brought about conditions in the sugar business which for the time being counterbalanced the effect upon the industry of these islands of the proposed plan of putting sugar on the free list. The danger of such legislation remaining permanently on the statute books seems happily now to be passed.

PHILIPPINE ISLANDS

CAPITAL MANILA

HISTORICAL

The Philippine Islands were discovered by the great explorer, Magellan, in March, 1521. He called them the Islands of St. Lazarus. It was not until 1542 that an expedition was sent to the islands by Spain. The only permanent result from this expedition was the giving to the group of islands the name of Islas Filipinos in honor of the Prince, later King Philip II. The permanent conquest of the islands was achieved by Legaspi between 1565 and 1572. The city of Manila was founded in June, 1571, and became the seat of Spanish power.

The Islands continued uninterruptedly under Spanish rule until Admiral Dewey sailed into Manila Bay on May 1, 1898.

In the early days, and in fact to a large degree down to the time of the American occupation, the dominating influence in the Philippines was the Roman Catholic Church. The Philippines also afforded a base from which missionaries labored in China and Japan. "The Christian population of the islands formed a unique community, the only large body of Asiatics permanently converted to Christianity in modern times.

Conditions were comparatively peaceful and stable until the early years of the nineteenth century. From 1814 on, however, the agitations in Spain and the disaffection of the South American states tended to undermine the oldtime stability in the Philippines. The monastic orders were more and more pervaded with the mercantile spirit.

Finally with the opening of the Suez Canal and the consequent growing contact with Europe and the growth of education, the people became dissatisfied with Spanish domination and in 1896 this dissatisfaction culminated in an insurrection of important magnitude.

The insurrection was finally put down, but when the American navy arrived in 1898 conditions were ripe for a change of government. The American naval and military authorities availed of this state of affairs to hasten the reduction of the country under American control.

The revolutionists, however, turned upon the Americans and it was not until March 23, 1901, that Aguinaldo, their leader, was captured. The complete pacification of the Islands did not finally occur until July 4, 1902.

In the meantime, by the Treaty of Paris, signed December 10, 1898, between Spain and the United States, Spain ceded the entire archipelago to the United States in consideration of the payment of the sum of $20,000,000. After that date the Islands were in part under the control of the United States Army and in part were governed by a Commission appointed by the President.

The military government remained supreme in any given territory until the Commission assumed jurisdiction. On July 4, 1901, William H. Taft, president of the Commission, was inaugurated civil governor. On September 1, 1901, a complete civil central government was established.

An act of Congress approved July 1, 1902, approved and confirmed the orders of the President for the establishment of civil government and provided a comprehensive system of government.

This act defined citizenship as including all inhabitants of the Philippines who were subject to Spain, residing in the Philippines when the treaty was ratified

on February 6, 1899, who had not elected to retain their Spanish citizenship.

The act provided for a legislature with biennial sessions. The Commission constituted the upper house. The lower house, called the Philippine Assembly, was composed of elective members distributed among the regularly organized provinces.

The general supervision of all insular affairs was assigned to the Bureau of Insular Affairs, under the jurisdiction of the War Department. This arrangement still continues.

Under American supervision a stable government has been established. The judicial system has been freed from abuses. Matters of sanitation and education have been markedly improved. Railroads and vehicle roads have been built. The money of the islands has been put on a non-fluctuating basis.

An agricultural bank was established in 1908 to relieve farmers from the burden of the high rates of interest charged by private lenders.

A postal-savings system has been inaugurated.

Legislation passed at the last session of Congress gave the Filipinos a much larger participation in the government, provision having been made for the election from among the Filipinos of the members of the upper house. It is expected that ultimately the government will become autonomous. Those who are best informed in regard to Philippine matters and who are among the best friends of the Filipinos have serious misgivings as to the wisdom of absolutely turning the government of the Islands over to their people for a long time to come. They fear that the mass of the people are not yet fitted for self-government and that serious results might follow from the withdrawal of

American co-operation in government and American protection from outside aggression.

THE PEOPLE

The population of the Philippine Islands is estimated by the Bureau of the U. S. Census for January 1, 1917, at 8,879,999, of which number about one-eighth belong to the so-called "non-Christian" tribes.

It is estimated that about 99% are native born. The larger portion of the small number of foreign born are Chinese; Americans, Spaniards, British and Germans constitute the bulk of the remainder. About one-half of the foreign born are in Manila.

The first inhabitants of the islands are supposed to have been the pigmy blacks, known as Negritos. Their descendants still survive. They are very similar to the bushmen of South Africa and to the Australian blacks. They are said to be incapable of civilization.

Following the pygmies came a people of Malayan blood. They were possessed of metal tools and weapons and soon became the dominating race. They did not come all at once, but in waves of immigration. These invaders were head hunters. They did not settle in tribes, but in small communities, which were at war not only with the Negritos but with each other.

They spoke many different languages or at least dialects, and this is the case even today. On account of their head-hunting proclivities, there was no social intercourse between the several tribes and therefore there was no opportunity for the harmonization of the numerous dialects.

About the year 1400 A.D. Mohammedan Malays began to settle in the southern Philippines. Soon they came into possession of firearms and from that time on became the most aggressive people in the Islands.