Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-07-05

From natural and unavoidable causes,
over which the government could have had
no control, such as widespread drOughts.
plague of locusts and an epidemic of chol
era. together with the withdrawal of $4,000
federal troops and their patronage from the
islands, business conditions were very bad
last year, and a commercial depression has
discouraged and disheartened enterprising
men. Besides this an evolution has been
going on in local finances. owing to a
change in the currency from silver to
gold basis. The demand elsewhere has been
sufficient to drain the islands of Mexican
silver. which has always been the chief
currency, and that has made money scarce.
Governor Wright explains the situation
very clearly when he says:
1.-THE commission perceived in the very
beginning that one of the great drawbacks
to anything like permanent prosperity and
progress In the islands was the lack Of a
stable currency. The only circulating me-
dunn which the Americans found here was
an irredeemable currency composed of Mex
lean and SpaniSh-Filipino coin. The gen.
eral tendency of silver has been for many
years downward, with frequent and violent
fluctuations in price. The currency in cir
culation. as result, rose or fell with the
advance or decline of silver. All transac-
lions. and especially those involving credits,
were consequently largely speculative. This
has been disastrous to business enterprise.
Need Of a Stable Currency.
1.-THE commission in it's first report to the
President urged legislation by Congress
which would give the people a silver cur
rency, to which they had always been ac-
customed. but redeemabe in gold, thus es-
tablishing and fixing a uniform stable
standard of values. The Congress of the
United States. on the I'd day of March. 1903,
passed an act, the conditions of which sub
stantially embodied the recommendations
of the commission, and provided for new
coinage of Philippine pesos redeemable at
the insular treasury In gold, which, together
with the United States gold coin, are de-
clared to be the sole legal tender of the
islands after date to be fixed by the COM
mission. Pursuant to this act the inSular
government, by proper legislation and exec
utfve order. has demOnetiZed Mexican and
Spanish-Filipno coins, because the great
mass of the people failed to understand and
appreciate the real value of the new cur
rency, and continued to receive and use in
their daily transactions the old upon
parity with the new coins.
THE difficulty of substituting the new
currency for the old has Furthermore been
increased by reason of the fact that certain
business interests have found it to their
advantage to buy hemp, cOpra and toba eco
produced in the islands with the old coins
| which are cheaper than the new coins, and
thereaf tef to sell their purchases in foreign
markets for gold. The commission. how
ever. has been thoroughly convinced that
there can be no real and genuine business
prosperity and progress so long as this state
Oh affairs continues, and has therefore
acted legislation which WILL after the ex-
piration of a few months. tend to make I'M
profitable the use of the old currency. and
thereby making easy and certain the gen.
eral use of the new and stable currency.
up TO this time have been going
through what may be termed a period of
political reconstruction. While there has
iustment on the part of the people to the
new order of things. we have made Substan-
tlal progress in the right direction. From
this time forward our labors must mainly
be toward the consolidation. elaboration
and making permanent that which we have
established building up and developing the
| natural resources of the islands.
More Railroads Needed.
Our first and most obvious need is an i'm
proved method of communication. We must
begin an era of railroad building. 1 do not
underestimate the value of schools and
other agencies of modern civilization, but
to my mind nothing is Of so much impor-
lance AS railroads. With them we may not
only hope for but confidently expect rapid
and tremendous Improvement. AS matters
stand, except along that part of the coast
line Of the islands accessible to vessels.
there is practically no incentive oHered TO
labor or production. Having no markets.
to meet their simplest wants. The mineral
resources of the ISLANDS remain undeVelop-
ed, and last forests of valuable timber exist
almost uneXplored and wholly untouched.
1T is only within a comparatively recent
period that we have been in position TO
grant franchises for the construction OF
railroads and other internal improvement.
We have always recognized, however, the
vital Importance of the matter, and have
from time to time in our reports brought
the subject to the attention of the authori-
ties at Washington. When in that city last
winter had occasion to discuss this matter
with the President and the then Secretary
| of War, Mr.. Root. Both of them were fully
alive to our needs in this regard. and the
latter arranged several interviews with
prominent capitalists and railroad builders
| in the United States for me. And now Sec
rotary Taft is working on this line with
| characteristic energy, and Is urging upon
Congress the passage of bill to guarantee
fair profit to the capitalists who offer to
risk their money in railroad enterprises
here. He is also In consultation with rail-
way builders in New York, and l may say
that we have already received direct propo-
sitions from practical and responsible men
| to take up work Immediately.
Sale of the Friars' Lands.
The last important official act Of Gov.
Taft was the conclusion Of preliminary
contracts for the purpose of what are
known as the friars' lands. AS soon as the
necessary examination of titles and surveys
of these estates can be made these lands
will be taken over by the government and
offered for sale to the public at cost price
upon long time, the persons who have occu-
pied them as tenants being given preference
as purchasers. Payments will be made in
annual installments, with very low rate
of interest, thereby enabling the present oc
cupants of the land, those who have worked
| them for the friars, to become the owners
of their holdings by paying very little more
than they have paid for rent. In this way
we hope and expect to settle for all time
and in a satisfactory manner to all con-
cerned one of the burning questions in the
Filipino problem. In making this settlement
the government has been just, not to say
liberal, to the religious orders and at the
same time offers substantial benefits to the
occupants of the lands. 1t is believed that
the spirit which dictated this transaction
will be fully appreciated not only by those
Immediately affected. but by the great mass
of the people, evidence of the kind feel
ing and the benefcent purpose of the
American government"
Four Kinds Of Money Used