The Montgomery advertiser., 1902-02-09
 CONTINUES
 HIS STORY Governor Taft Still Before Committee. MONEY OF PHILIPPINES Thinks Gold Dollar Should
 Be the Basis. Commissioner Wright Cables That the Reduction in the Tariff Should Be, at Least, 75 Per csnt-The Friars-
MONEY OF PHILIPPINES

eWashington, Feb. s.-Before the Senate Committee on the Philippines, Governor Taft today reverted to his testimony or yesterday for the purpose of Mroducing a cablegram he had received from acting Governor Wright. urging reduction in the tariff on Philippine articles imported into tho United States from the Philippines. 7 he cabiegram is as Follows:
 Manila, Feb. {. 1902.
 ."The public session of sugar and to- bacco interests favor reduction Of 70 Ter cent at least. A reduction Of S0 per cent leaves tariff almost prohtoitive. Sugar price now very low, European market very dull ,n account Of over-pro- dLction and low prices. Beet sugar planters here have lost heavily by Cara bcs. machinery and otherwise. Sugar cultivation in a bad condition. Memorials received from Sugar Growers Associa- ton of Negros and Panay ask for free trade for this reason Think reduc- ton of 75 per cent on sugar and tobacco would be a measures of relief and nave excellent political effect"
 Governor Taft said he thought the general opinion as to the wealth and hold" ings of the friars had been greatly ex- aggcrated. He did not believe for in- stance that they had three-fourths Of The Aroperty owned in the cities; that, how ever, the religious orders have ready cash was true as was evidenced by the fact that they make loans. He instanceo a case in which the friars had advanced money to promote a corner in hemp which had afterward failed.
 Governor Taft said that the Philippines government is desirous of purchasing the Manila property held by. the friars, and that 1t also would be desirable to secure their holdings of agricultural lands.
 The Governor said that banking law is badly needed. There are now ne said. two English banks in addition to the spanish- Filipino bank. the latter be- ing controlled largely by the church and Defng the bank of issue. He said there had been some grants of land to the church orders, but that as rule they had acquainted their holdings by pur- chase The charge that much of their land had come to them by death-bed con- veyances is not borne out by tracing or the title. He .said 'The truth is, that the friars have the best titles in the islands, and even where there have been irregularities, the statute of limitations would protect their title" -.l
 He said that according to the charge one method of extending the. holdings Of the orders had been by extending their irrigation system over adojingtng lands
 something after our method of water inr stock" said Senator Proctor, refer ring to irrigation encroachmeptss Sena- tor Proctor also asked where the friars had secured money with which to pur- chase their lands and this inquiry led Governor Taft to say that the fees for marriages, funerals, christenings, etc., had been so high as to be complained of. Those charges of marriages had he said, led many couples to live together illicitly, hut that in most cases the obligations thus taken were observed.
 Governor Taft said that Philippine fins terest rates are as high as from 20 to 10 per cent, and that 1t is very necessary there should be authority for granting franchises to financial concerns which would reduce the interest charges. He said it IS desirable that the gold dollar should be established as a basis. '
 He also advocated token coin which should be exchangeable for gold and the parity assured by the United States The plan of the commiss ion, he said, eua- braced the coinage of a Philippine peso and the circulation of this coin he thought should be confined to the islands. He thought that unless the commission was authorized to make good the token mon ey. there would be trouble.
 Referring to the suggestion thats United States money there would be adopted Governor Taft said If United States mon ey should be adopted, it would have the effect of increasing the value of the peso to the extent of 50 per cent, and this would unsettle transactions. This plan also would have the effect of raising the price of wages and disturbing business relations.
 Governor Taft advocated the right of appeal in certain cases to the Supreme Court of the United States especially such cases as would involve the rela- tionship of church lands to the Govern ment. This he thought necessary be- cause of the probability of prejudice on the part of local courts.
 He urged the granting of power to the commission to give franchises for steam and electric railways and light plants and also made an argument for authority to create bonded debt of s4.Oo0.0OO for local improvements in Manila.
 It is he said. especially desirable there should be electric lines in that country because of the difficulty of getting about fin a tropical climate. He thought no franchise should be perpetual. There is magnificent timber through the islands. he said, and 1t would be beneficial to the forests to take much of 1t out. The quan- tity which can be taken out now by one concern is limited to 100000 cubic feet. He suggested that there had been some pub lie sensitiveness on this point because of tho interests there of the Philippine Lum- her and Development Company.
 In reply to Senator Culberson Gov ernor Taft said he would not advocate grants of land that could be used for speculative purposes, but he felt that it would be necessary to allow persons to acquire large bodies of land in order to secure the development of the country. The conditions there are, he said, entirely 5iffercnt from what they are in the T,njted States. and it would be found that the people would not be so prompt in taking advantage of homestead law as in the United States.
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