This condition can hardly be considered an equitable one to the taxpayer and should be remedied by law. The insular government, as an equivalent for its taxes and other considerations, pays 30 per cent of the expenses of the city; the General Government, as its share, contributes in various ways to the benefit of the city through its army and navy, and no doubt the Catholic Church contributes in various ways by supporting charities and benevolent institutions at least a part equivalent of its taxes, but the Catholic orders alone appear to contribute to a very small extent to the support of the city government, holding, as they do, vast tracts of land and large edifices, which, by virtue of this law, actually become a burden to the taxpayer. Either the law should be amended so that all but public lands and improvements should be taxed, as is the case in the State of California, where, no doubt, a similar condition once existed, or the exemption from taxation should be more clearly defined and permit a more equitable division of these taxes among the property owners.

Industrial taxes show a falling off in the number of taxpayers from 11,511 for the previous year to 11,406 for this year, but an increased collection from P461,658.04 in 1903 to P609,479.75 in 1904. This is due to the fact that the taxes for the last half of the fiscal year were payable in Philippine currency instead of local currency, the collection of some large delinquent taxes of the previous year, and the increased amounts paid by corporations upon their profits.

Stamp sales indicate an increase in the number of stamps sold, and on account of the change in currency a large increase in the amount of revenue, from 133,164.78 to 166,067.95.

Certificates of registration show a decrease, due to causes which the assessor explains in detail in his report.

MARKETS AND MATADERO.

The municipal board has devoted special attention to the improvement of the condition of the markets and matadero, and is preparing, during the fiscal year of 1904–5, to open new markets in Gagalangin and Pandacan, and to replace the Sampaloc market with another in a better situation close to an estero, and with a building having conditions analogous to those of the addition to the Arranque. Excessive crowding of the existing markets, shown by the constant increase of the revenue which they produce, justifies the providing of these new markets for the outlying districts; moreover, the Divisoria market, which is the best situated, will be the object of very important reforms in the way of improvements, and in the administrative rules for the collection of fees and for the establishment of venders' stalls.

Such reforms have been recommended insistently by the advisory board, which considers it a duty of the city to elevate the habits of the people in their transactions in the markets, so that operations conducted therein may be similar to those of the best markets in Europe and America.

The following statements show the importance of each market and of the matadero, and the net proceeds of each available for the general expenses of the city:

In order to render this table complete we have added below a statement which shows the slow but steady advancement of the markets in the public estimation, and demonstrates that notwithstanding the decrease in the population of the city the sale of foodstuffs is increasing.

Comparative statement of the revenues derived from the markets and the matadero for the two years, under the same tariff.

The amount collected for licenses during the year (1357,366.89) exceeds the collections of the previous year (P329,640.90) by P27,725.99, due to an increase in the number of ordinary business licenses issued, caused by increased activity of the police department in apprehending unlicensed persons engaged in business.

Native-wine licenses show an increase from 1,168 to 1,360, or 192 during the year; this increase being caused by authorization of a larger number of native-wine licenses, it having been found that such licenses do not materially effect the order of the community and do not result in abuses.

The licenses for saloons and other places where liquor is sold for consumption on the premises have been decreased from 177 to 142-a decrease of 35; and the licenses where liquor is sold to be consumed elsewhere than on the preminses has been reduced from 166 to 123-a reduction in the number of such licenses by 43. The reductions in the saloon and grocery liquor license business is due, no doubt, to the general business depression, and it is believed a still further reduction will be made during the coming year in this class of licenses.

The public-vehicle licenses indicate a slight falling off during the year, the total receipts for the year being 115,332.60, as against P17,423 for the previous year.

Dog licenses show an increase of P519.67 over the year previous, and bicycle licenses a reduction of P716.88 from the year previous. Other classes of licenses, such as entertainment licenses and peddlers' licenses, show an increase in the number issued and the amount collected over the previous years.

The live-stock registration and sale of vehicle equipment for public vehicles produced about the same revenue as of the year previous, notwithstanding the currency change, and thus shows a net falling off in the amount of business.

Vehicle taxes show an increase from 41,905.62 to P51,549.11 due to the currency change and increased activity of the department in enforcing the collection of this tax, which is a very difficult matter on account of the nature of the tax, it being an annual tax upon each vehicle in use, payable quarterly. The assessor and collector has made certain recommendations regarding an amendment to this vehicletax law, and it is the intention of the board to either repeal or amend this law when the effect of the new internal-revenue law upon the revenue of the city has been ascertained. It is the opinion of the board that the opening of the new street railway will greatly reduce the amount of revenue from this tax by reducing the number of vehicles, which now amounts to 6,853, utilizing 9,293 draft animals, with the probability that at least 10 per cent of the actual number have escaped taxation. Municipal court fines, justice of the peace fees, and sheriff's fees show material increases in the amount collected during the past year over the year previous, due to increased business; but it is not yet considered that these sources of revenue have reached the maximum, and probably will be still further increased during the year to come.

Rents show an increase of 6,799.01 over the year previous, which is due to advances on some of the leases which have been renewed during the year. The city does not yet obtain adequate rents for a great deal of the property leased, but it is believed that during the coming fiscal year largely increased rentals will be received. Miscellaneous collections show a slight increase over the year previous, and will probably be still further increased in the year to come.

Certificates of electrical installation and pound receipts also show increased revenues on account of increased business.

Public-health fees, which in reality are fees for burial permits and niches and graves in public cemeteries, show a material increase of 17,489.01. During the coming year the opening of the new cemetery will probably still further increase this

item.

The other items shown on the statement are not so susceptible to comparison with the year previous in the collections of the city assessor and collector, as heretofore they have been paid through other departments, where the comparisons will be made.

In addition to the collections of previous years the city assessor and collector was by act 1141 of the Philippine Commission, effective June 1, 1904, charged with the collection of water rents, fees for cleaning vaults, use of pail system, building permits, sealing weights and measures, and charges heretofore collected by the department of engineering and public works, thus relieving this department from the necessity of handling funds and relieving it of this burden. It is the intention of the municipal board to have all payments due to the city paid to the city assessor and collector wherever practicable, and the change in the payment of items enumerated above has been successful not only in affording better facilities to the public to pay all their dues at one office, but also to decrease the cost of collection.

The personnel of the department has not materially changed during the year. Mr. A. W. Hastings, city assessor and collector; Mr. Ellis Cromwell, chief deputy collector; Mr. Henry Steere, chief deputy assessor, with practically the same number of employees, 26 Americans and 129 Filipinos. Inasmuch as the assessment of real estate for the city by the board of tax revision will stand for the next three years, the board considers it advisable to abolish the office of chief deputy assessor, combining a portion of his duties with those of the chief deputy collector and distributing the balance among the other employees of the department, thus permitting a saving of P6,000 a year, at least until such time as an assessor is necessary, and then it is believed that the work can be done by the city assessor and collector and his chief deputy.

REPORT OF THE SUPERINTENDENT OF CITY SCHOOLS,

The MUNICIPAL BOARD.

MANILA, P. I., October 1, 1904.

SIRS: I have the honor to submit the following report of the public schools of the city of Manila for the year ending June 30, 1904.

Results accomplished during the year justify the belief that public education in the city is at present upon a substantial and, barring accidents, an enduring basis. All classes of natives seem to possess a reasonable interest in the work. Spaniards at worst show a friendly indifference, and in many cases take an active interest in the modern scheme presented. Old caste distinctions have died off, or at least have been removed to such an extent that their effect is no longer noticeable. The rich, the middle class, and the poor are all well represented, and seem satisfied to meet, in the schoolroom at least, upon terms of equality. The school is rapidly assuming its proper place as the center of youthful activity in the community. Attendance is becoming more regular. Pupils no longer drop in for occasional instruction or amusement, but seem to have accepted the idea of definite connection with particular classes as the proper one.

Abnormal conditions, formerly noticeable and embarrassing, are rapidly passing out of existence. Attendance in elementary schools is no longer confined to small children. Boys well grown are no longer ashamed to be associated with children's classes. District boundaries are becoming better defined. The disposition to roam from school to school is being checked and brought under proper control. It is true that the present system of school districting is far from complete, due to shifting of population, but the improvement effected during the year indicates a reasonably early settlement of the difficulty.

Native parents seem much better disposed than formerly. Interest is no longer confined to mere toleration. The boy and girl who a year ago were allowed to attend are now sent to school. Upon every hand are encountered evidences of little sacrifices made by parents in the interest of the education of their children. The relations existing between church and private educational institutions and city schools seem to be all that could reasonably be desired. A fairly large percentage of the city night school attendance is composed of students of these institutions. They are evidently anxious to acquire English and recognize the merit of the city night-school course.

SCHOOLS.

Classification. The classification of city schools is the same as last year-elementary schools, secondary schools, night schools, normal school, and kindergarten. The proportion is practically the same, with the exception that there are now 7 instead of 4 kindergartens, as formerly; that there are 31 instead of 23 night schools, and that the two former normals have been combined and are now operated as one. Attendance.-The unsatisfactory enrollment and attendance condition indicated in former reports has been considerably improved. The following table indicates actual conditions:

There is every indication that this considerable increase in attendance is substantial and, facilities permitting, will continue. No attempt has been made to swell enrollment beyond the working capacity of the present equipment. The actual effort has been in the direction of such a monthly addition to the student body as could be absorbed without serious disturbance of existing conditions. That this effort has been successful is indicated by the fact that since June, 1903, the average percentage of attendance in the entire city day schools has been 92. In only one of the months included has the average fallen as low as 90 and in one month it reached 95 per cent. Attendance is exceedingly uniform. It is rarely that the monthly percentage in a particular school falls below 90. Attendance is rapidly assuming a more normal aspect than formerly. Abnormal conditions are being removed. Pupils are beginning to enter school at proper age, from 6 to 8. There is every reason to believe that they will continue in attendance until well grown. Pupils well advanced in age and general ability, but who have had no training in English, constitute a class which has seriously interfered with proper grading of elementary schools. The advancement of these pupils is naturally much more rapid than that of those younger. For a time it appeared that they would interfere in this way indefinitely. The danger has, however, passed. With two secondary schools containing a total of more than 600 pupils, all over 14; with evening schools containing 5,858 pupils, all over 14; and with the great mass of these older pupils already in the elementary schools, it is certain that in less than two years these grown pupils will have been generally disposed of and matriculants will be of proper age.

A decided improvement in the disposition of pupils is apparent. They seem to be in no hurry to get through school. An extensive canvass of the city schools shows that of the pupils in actual attendance in 1901 a reasonably large percentage is still present. The percentage of the matriculants of 1902 and 1903 still in attendance is larger out of all proportions. Even in the night schools, where attendance is supposed to be transient, whole classes of adults are spending the fourth year in study. The spirit of investigation and experimentation, formerly strongly in evidence, seems to have been satisfied and is no longer apparent.

The above is important, as indicating that city natives have come to consider school as a continuing necessity and education as a reasonably protracted process. The earlier anticipated danger was that they would demand immediate results and insist upon the school serving as an educational quick-meal institution which would do impossible things upon the short-order plan. The actual tendency of all evidence at hand is to show that a city pupil entering school at from 6 to 8 years of age may safely be counted upon to remain in the elementary course for seven or eight years. The evidence is not conclusive as to the percentage of these pupils who, after completing this course, will enter high school, but it may be safely assumed that it will be large.

The proper place of higher education is rapidly being established. The unfortunate tendency to rush through elementary courses for the purpose of taking up higher work, formerly a fad among certain classes of Filipinos, and which was unfortunately countenanced by some American educators, has been checked. Americans and Filipinos alike are coming to realize that the most important function of the school is to furnish extensive and thorough elementary instruction to a people whose greatest intellectual weaknesses are indefiniteness of thought and

inaccuracy of process and expression. The careful, laborious, and systematic drill which Filipinos have never received, and through which any race, to be practical, must pass, constitutes the most important function which educators in the Philippines have to perform.

Equipment.-As was indicated in the last report, the equipment of the city schools is far from complete.

Buildings.-In no section of the city except Intramuros are school buildings sufficient for present demands. The proper capacity of these buildings was passed last year. In spite of this fact 3,131 new pupils have been added to the enrollment since that time. The result has been that the sanitary benefit resulting from repairing and cleaning during the vacation period has been more than neutralized by the additional crowding of class rooms. The class of buildings occupied by schools has been improved since the date of last report. New buildings have been secured for the following schools:

Intramuros, boys and girls, No. 172 Victoria, Intramuros.

Santa Cruz, boys, No. 608 Bilibid.
Quiapo, boys, No. 63 Noria.

Paco, girls, No. 365 Real.

Tondo, secondary, No. 569 Lemery.

Kindergarten, No. 110 Dulumbayan.

Kindergarten, No. 87 Padre Rada, Tondo.

The rent rate of school buildings remains unreasonably high. Property owners seem disposed to make even a greater distinction between values of buildings used for public and those used for private purposes than in other parts of the world. One hundred fifty dollars gold is not an unusually high monthy rental for a building with from 6 to 10 rooms.

Another unfortunate feature of the situation is the fact that proper buildings do not exist in portions of the city in which largest attendance is possible. In spite of the effort of this office and the generosity of the municipal board it has been found impossible to accommodate the school population in these districts. The only plausible solution of the difficulty is the construction of proper school buildings by the city where needed. In this way facilities can be distributed as required and the people of highly congested districts who are housed in nipa and bamboo will no longer be denied the privilege of an education, as at present.

Furniture. The lack of proper furniture in the city schools is becoming very apparent. So rapid has been the increase in attendance that the rather liberal provisions already made have proven entirely inadequate. The department of city schools now possesses reasonably comfortable seating accommodations for 6,000 pupils, approximately. With these facilities 7,403 pupils are crowded together, with every prospect of a steady addition of 500 new pupils per month. In a few schools, situated in small districts, the jamming process has not yet been found necessary. In others it has been carried on to such an extent that all rules of comfort, and most of those of hygiene, have been violated. It is believed that locally constructed furniture is better adapted to present needs than the variety which has heretofore been imported from the United States. The local article is much cheaper, breakage is not nearly so great, and greater economy of space is possible. The present outfit of American patent adjustable desks, described in terms of comfort, convenience, economy, and adaptability, have proven a failure.

Teachers.-The personnel of the city teaching force is generally satisfactory, but the number of teachers employed is not nearly large enough to supply present needs. Americans: The assignment of American city teachers is as follows:

This condition of assignment is disproportionate but unavoidable. The force is not well divided. A statement to the effect that the city possesses 61 American teachers and an enrollment of 7,404 does not fully describe the situation. For instance, the American school, containing only 156 pupils, requires, because of the number of grades indispensable, 9 American teachers. This school constitutes an important but rather unfortunate necessity, viewed from the standpoint of economy. To disturb this situation is entirely impracticable.

Two native secondary schools, containing only 620 students, require the services of