The herald., 1898-11-12
as SEEN BY A COLLECTOR OF
CUSTOMS
THE ISLANDS W0NDR0US RICH
But Anglo-Saxon Push Is Needed for
Development of the Great
Resources
Associated Press Special Wire

w -NO'' 80
Whittier, brigadier general OF volunteers,
now collector of customs at Manila, under
date of Sept. 10Th last, has submitted a re-
mort of his observations upon the condition
Of things in Manila and the Philippine Is
lands and suggestions as to the methods to
be pursued pending any permanent oecupa-
tiop of the country which may be decided
upon. He says:
The most important questions are the
currency, revenue Including the cedula or
head taxi, opium and the admission OF Chr
nese, These are very grave questions and
cannot be decided under brief consldera'
ton.
The currency question is even more i'm
portant than in the United States. 1t must
be remembered that Mexico was the bust
ness channel for these islands for 250 years ;
that all efforts to remove this dollar and sub
stitute another have failed, notwithstand-
ing a law of the Spaniards forbidding its en-
trance, and the same way in the east--our
trade dollar was a failure and was with
drawn. In Hong Kong, the English dollar
sells at discount upon the Mexican. There
is but one bank of issue mere, the Banco de
ish government of some 81 GOO, il is in a
shaky condition. Efforts in q mild way To
bolster it have up to this time kept it alive.
The other two banks, the Hong Kong and
Shanghai and the chartered Bank OF India,
Australia and China, are very strong. The
business people have accustomed themselves
to the notes of the Filipino bank as a me-
dunn of exchange, and found them a great
convenience in place of the cumbersome
method of handling silver dollars. 1t will
create financial revolution to attempt to
substitute in moment any currency in the
islands to replace the present one, save that
national bankS of the United States of
America, chartered unde: some new form of
law, on the basis of the existing currency,
would be useful and profitable
The cedula, or head tax, which has given
an income OF SIG, 900 year, has been a
most unpopular measure. 1t has varied
from SO per head to $3.50. Complaint main
ly comes from the lowest class. Many people
of good judgment here think a reduction
to 50 would be satisfactory and might be
tried for year. The higher classes did not
seem to find their rate onerous. Advocates
OF the single tax might make strong case
in these islands.
l think the main revenue of the British
government in India is derived from the land
tax. 1t is worthy of reign here.
1t was the Spanish practice to sell the right
Of importation of opium. Tne concessionaire
was the captain of the Cainese, who paid
$550, 900 for the privilege for three years. The
compiler of the new regulation, without
knowledge of this addition to the revenue,
has placed the tax at two pesos for 100
lilos, equaling about 900 pounds. This has
been modified by the governor general by six
pesos per pound. This change will lead TO in
creased smuggling, at which the Chinese are
most adroit. 1t will be difficult 10 prevent
this, even with the use of the greatest vigil
ance and expense. The officials at Hong
Kong derive great revenue from farming
the privilege as was the practice here.
Manila, OF course, is very small portion
of the Philippine Islands, or even of Luzon.
No one who has not gone beyond the limits
OF the town can have any idea of the wealth
and resources of the country. On Sept.
Sd l went over the line of the Manila rail
way, l23 miles in length, running north
ward from Manila. The country three miles
out from Manila is occupied by the insur
gents for the whole distance. The line is in
fair order. Teegraphic communication has
been destroyed in many places, probably
requiring a month for restoration.
The line has opened and developed
country of most extraordinary fertility.
Rice is the present product, much sugar,
small amount of indigo on the northern part
of the line, possibilities of cotton, coffee,
and almost anything. The stations are
at short intervals, in accordance with or
ders from the Spanish government, which
subsidized the line. | have never seen
Of such splendid productive power.
For the first hundred miles almost all is un-
der cultivation. From there to the ter
minus is a different and prettier country,
with high palm trees of rare beauty, but
not yet as much cultivated as that to the
south. With new extensions and lines
contemplated on the island, added produc-
tive power and wealth will be impaired to
the island
A week later went up the Pasig river to
the Laguna, extraordinary fertility of soil
being again the marked characteristic and
a possibility for the requirement of large
estates II we could control the country, and
ii good titles can be assured.
The islands to the south, Panay, Cebu,
Samar, Mindanao, and possibly the Sulu,
or Jolo archipelago, should be investigated
as soon as our relations with the Spanish
permit. | am extremely anxious to make
this journey under the auspices and at the
invitation of English merchants thoroughly
acquainted with the islands If one-half
they say of the richness of these be true, it
would be a most valuable acquisition to the
United States. | trust that | shall not be
deemed intrusive in these remarks and suc
gestions. Being an army officer, and at the
same time collector of customs at Manila.
my duty would seem to be to the secretary
of war and to the treasury, and | submit
these remarks as directed to them as well
as to yourself.
I desire no place here except upon the
ship to return to America, but ] am so thor
oughly impressed with the wealth and
beauty of the peculiar conditions existing
here that am most anxious for the success
of our government in working out this ex-
pertinent with the best frution.
The inhabitants are unique; the natives
clean and clever; the Chinese more active
and persevering, all beasts of burden. ac-
customed to little in the way of pay or food
or shelter. We pay house servant who
works most satisfactorily ten dollars a
month, equalling $40 of our money, he fur
nishing his own food. The arrival of our
army raised wages temporarily. to the great
disturbance of the merchants here but
things are about restored TO their normal
basis, and should continue so unless some
ill-considered change Of the prevailing cur
rency occurs.