of his willingness to withdraw his troops to a line which I might indicate, but at the same time asking certain favors for himself. The matters in this connection had not been settled at the date of my departure. Doubtless much dissatisfaction is felt by the rank and file of the insurgents that they have not been permitted to enjoy the occupancy of Manila, and there is some ground for trouble with them owing to that fact, but notwithstanding many rumors to the contrary, I am of the opinion that the leaders will be able to prevent serious disturbances, as they are sufficiently intelligent and educated to know that for them to antagonize the United States would be to destroy their only chance of future political improvement.

The Commanding General's personal acknowledgments are very handsome, as follows:

"Brigadier-General R. P. Hughes, my inspector-general at San Francisco, was especially noticeable in accomplishing the instruction of the green troops that came to the city, many of them without arms, clothing, or equipment of any kind. His services will undoubtedly be duly recognized by Major-General Otis, with whom I left him to continue the good work.

"I desire especially to express my acknowledgments to Brigadier-General Babcock, my adjutant-general and chief of staff, for his most valuable services from the inception of the campaign in San Francisco to the close of the work at the present time. This officer is too well known to require special mention of his services in any one direction. He was my right arm, not only in the office but in the field, and much of the success that has attended the expedition is due to his individual efforts.

"I desire especially to mention Major McClure and Major Whipple, of the pay department, who volunteered their services after they had completed their legitimate duties, and performed excellent work whenever called upon. Major McClure was especially important in his services immediately after the surrender, taking long rides under my orders to the Spanish lines, and bearing instructions to them which resulted in effecting their withdrawal in such manner as to prevent the incursion of the insurgents in the northern portions of the city. Other officers have been named in my special reports and have been recommended for brevets and promotion.

"I especially call attention to the services of Captain Mott, as mentioned in the report of Brigadier-General Greene. He was cheerful, willing, intelligent, and energetic in the discharge of the multifarious duties imposed upon him in connection with our troops and trenches during the rainy season, and in the final action showed those rare characteristics which stamp him as a very superior soldier."

FORT SANTIAGO AT MANILA, WHERE THE AMERICAN FLAG WAS RAISED

THE TERMS OF CAPITULATION.

The undersigned having been appointed a commission to determine the details of the capitulation of the city and defenses of Manila and its suburbs and the Spanish forces stationed therein, in accordance with the agreement entered into the previous day by Major General Wesley Merritt, United States Army, American commander in chief in the Philippines, and His Excellency Don Fermin Jaudenes, acting General in chief of the Spanish Army in the Philippines, have agreed upon the following:

1. The Spanish troops, European and native, capitulate with the city and its defenses, with all the honors of war, depositing their arms in the places designated by the authorities of the United States, and remaining in the quarters designated and under the orders of their officers, and subject to the control of the aforesaid United States authorities, until the conclusion of a treaty of peace between the two belligerent nations.

All persons included in the capitulation remain at liberty, the officers remaining in their respective homes, which shall be respected as long as they observe the regulations prescribed for their government and the laws in force.

2. Officers shall retain their side arms, horses, and private property.

3. All public horses and public property of all kinds shall be turned over to staff officers designated by the United States.

4. Complete returns in duplicate of men by organizations, and full lists of public property and stores shall be rendered to the United States within ten days from this date.

5. All questions relating to the repatriation of officers and men of the Spanish forces and of their families, and of the expenses which said repatriation may occasion, shall be referred to the Government of the United States at Washington.

Spanish families may leave Manila at any time convenient to them.

The return of the arms surrendered by the Spanish forces shall take place when they evacuate the city or when the American Army evacuates.

6. Officers and men included in the capitulation shall be supplied by the United States, according to their rank, with rations and necessary aid as though they were prisoners of war, until the conclusion of a treaty of peace between the United States and Spain.

All the funds in the Spanish treasury and all other public funds shall be turned over to the authorities of the United States.

7. This city, its inhabitants, its churches and religious worship, its educational.

establishments, and its private property of all descriptions are placed under the special safeguard of the faith and honor of the American Army.

F. V. GREENE,

Brigadier-General of Volunteers, United States Army.

B. P. LAMBERTON,

Captain, United States Navy.

CHARLES A. WHITTIER,

Lieutenant-Colonel and Inspector-General.

E. H. CROWDER,

Lieutenant-Colonel and Judge-Advocate.

NICHOLAS DE LA PETRA,

Auditor General Excmo.

CARLOS,

Coronel de Ingenieros.

JOSE,

Coronel de Estado Major.

The Spaniards wanted a long array of specifications as to what the Americans might and should not do, but finally were struck with the sufficiency of the shining simple words, "under the special safeguard of the faith and honor of the American Army."

CHAPTER XI.

THE ADMINISTRATION OF GENERAL MERRITT.

The Official Gazette Issued at Manila-Orders and Proclamations Showing the Policy and Detail of the Administration of Major-General Wesley Merritt, Who, as Commander of the Philippine Expedition, Became, Under the Circumstances of the Capture of Manila, the Governor of That City.

GENERAL MERRITT'S PROCLAMATION TO THE FILIPINOS.

Headquarters Department of the Pacific, August 14, 1898.

To the People of the Philippines:

1. War has existed between the United States and Spain since April 21 of this year. Since that date you have witnessed the destruction by an American fleet of the Spanish naval power in these islands, the fall of the principal city, Manila, and its defenses, and the surrender of the Spanish army of occupation to the forces of the United States.

II. The commander of the United States forces now in possession has instructions from his Government to assure the people that he has not come to wage war upon them, nor upon any part or faction among them, but to protect them in their homes, in their employments, and in their personal and religious rights. All persons who, by active aid or honest submission, co-operate with the United States in its efforts to give effect to this beneficent purpose, will receive the reward of its support and protection.

III. The government established among you by the United States is a government of military occupation; and for the present it is ordered that the municipal laws such as affect private rights of persons and property, regulate local institutions, and provide for the punishment of crime, shall be considered as continuing in force, so far as compatible with the purposes of military government, and that they be administered through the ordinary tribunals substantially as before occupation, but by officials appointed by the government of occupation.

IV. A Provost-Marshal-General will be appointed for the city of Manila and