Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-11-23
COL. EDWARDS REPORT
PENDING QUESTIONS IN THE
PHILIPPINES.
Inauguration Of the New Fiscal Sys-
tem-Carrying Trade in Ameri-
can Vessels.

The development Of the Philippine Islands
during the past year, together with re-
view of pending questions of Importance
relating to the archipelago. is contained in
the annual report of Colonel Edwards, chief
Of the bureau of insular affairs of the War
Department.
The accomplishment of greatest impor-
lance to the islands during the year has been
the successful launching of the new fiscal
system. By January 1 next the new system
will be in complete operation. The new cir
culating medium consists of 100000 pc
SOS and fractional silver coins and 10, 600 600
pesos in paper money. To establish the
new system and purchase the silver for
coinage, two issues of bonds were made Of
100000 each, both of which were sold at
a premium. The proceeds of the sale of
these bonds were deposited and drew inter-
est at the rate of three and one-half per
cent so that the government actually made
money by going into debt.
Reduction of the Tariff.
Col. Edwards emphasizes the necessity
of a reduction Of the Dingley tariff rates for
the encouragement Of trade between the
United States and the Philippines There
is an active desire on the part of Philippine
commercial interests, he says, for tariff con-
cessions, and the report states that the
same desire also has been evinced by the
same interests in this country The chief
exports of the islands to the United States
are sugar, tobacco, hemp and copra. The
latter two commodities already are on the
free list.
Aside from the tariff question the matter
OF most serious moment for the future is
the enforcement of the congressional act
requiring the carrying trade between the
United States and the Philippines, as we'll
as the coastwse trade of the islands, to be
confined strictly to vessels carrying the
American flag after July 1 next. At the
present time Philippine commerce is carried
in British ships to the extent of 90 per cent
of the foreign trade Of the islands. Other
foreign vessels carried practically the re-
mainder of this commerce, leaving only 3
per cent to American vessels. A fleet of at
least eighteen American ships is being con-
structed, and the prediction is made that
despite the apprehension now felt American
ships will be ready to take the place of
foreign vessels without seriously inconven-
fencing the shipping interests.
The Island Coastwise Trade.
The enforcement of this act. however
with reference to the coastwise trade, pre-
sents a much more difficult problem There
are now 4,125 vessels engaged in the coast
wise trade Of the islands. OF this number
only twenty-five are American ships With
the whole number of ships now participant
ing in this trade the tonnage is said to be
entirely inadequate, and the passenger
service wretched
1t is suggested that the building Of light
draft vessels to participate in this carrying
business presents a splendid opportunity for
the profitable investment of American CAPT.
tai, and the uncertainty as to probable
future congressional action on this subject
is asserted to be the reason why no steps
are being taken to supply the coming i'm
perative demand for American-built ships.
Colonel Edwards calls attention to what
he terms 1.-THE second stage of development
for the Philippine government, evil
denced by the increased work of the law
officer of his bureau during the past year.
The change from a military to civil gov
eminent in the islands has developed many
intricate and interesting questions of law.
One of the questions of most interest pre-
scented is that of the right of the President
of the United States to exercise the power
of legislation in the Philippines prior to the
establishment Of a civil government.
Education Of Filipino Youths.
The education OF Filipino youths In this
country for the purpose of making them
the future teachers of the native schools Of
the islands has begun under an act passed
last summer by the insular government.
Ninety-eight young F1lipinos are now on
their way to this country for that purpose.
They will attend the grammar schools Of
southern California during the winter, and
in the spring be distributed through the