we were honest in our purpose to rid them of their ancient enemies. It made possible the transformation of a large class of discontented and irritable tenants into a class of contented proprietors. It canceled the friar out as a disturbing factor in the economic future of the country.

The chief objections to the consummation of the deal which are still to be urged are the amount of money paid, and the failure of government to secure the removal of the friars. What of these reasons? Should they have prevented the purchase?

In my opinion, they should not. The United States is not bound to clear any money on this transaction. It was not begun as one that gave promise of being a good investment of money. If a million or more of money is lost in this transformation of discontented tenants into small proprietors, with all possible reasons to be happy and law-abiding people, the country can well afford to contemplate the money side of the transaction with entire complacence. The end to be attained is not profit, but tranquillity. Tranquillity is ultimately worth money, and is worth more than money. But to many the matter of the failure to rid the land of the friars is a more serious matter. That seems to them a fly in the ointment, whose presence entirely destroys its value. They want the friars. withdrawn. What of this objection? First, as has been said, it was an impossible thing to hope for from the first, that the pope would recall them, and equally impracticable that a government like ours, with a Catholic vote to be considered, should insist upon their deportation. Politics, whether ecclesiastical or party, are solid facts of this world, and as the pope is so hedged up by the lines which contending factions throw about him that he can not do what he might in theory be able to do, so administrations are not wont to commit political suicide with open eyes.

He who expected either the Vatican or Washington authorities to take the bull by the horns in this matter was unfamiliar with political currents-the sweep and power of them, whether in Church or State.

This point was insisted upon until it became apparent to Governor Taft that the removal of the Spanish friars. was largely accomplished, and in process of entire accomplishment. When the American fleet sunk the ships of Spain in Manila Bay there were 1,108 Spanish friars or monks in the Philippine Islands. By death, and by the retirement of many of them to Spain and other Catholic countries, there were but 456 left in the entire Archipelago when Governor Taft sailed for the United States in December of 1901. On the first of December of 1903, in the official figures prepared for Governor Taft by the heads of the various orders at the command of the Apostolic Delegate, this total had been cut down to 246, of whom eighty members of the Dominican Order, and formerly parish priests, have renounced their intention of returning to their parishes, and will therefore retire in the near future as having no further place here, and thirty-two are old and decrepit men who can not return to Spain in safety for reasons of bodily weakness. This cuts the total left in the Philippines, when these 112 are taken from the entire number now here, 134 friars, most of whom are teaching in schools, either in Manila or in one or two large seminaries like Vigan. And the steady process of withdrawal goes on by every ship that proceeds to Spain. The last friar-bishop left on the same steamer that bore Bishop Henry W. Warren on his leaving the Philippines, and with him were a number of friars who had no further employment to hold them here.

All Catholic bishops, including the archbishop, are now Americans. Americans and Spanish do not work

smoothly together. When American bishops want parish priests they will send to America for them, and not to Spain. In fact, it was only when the Administration secured its own ends by other than direct means that consent was given to waive this original condition of the proposition to purchase the lands. As a practical matter the friars have been removed from the Philippines more rapidly within the past eighteen months than the conditions imposed in the form of contract submitted by Governor Taft to the Vatican authorities demanded. There seems to be no reason to suppose that there will be fifty friars in the Archipelago within ten years. It seems clear that it is better to accomplish their removal in this way than to do it by force.

It is now less than a week since the lands were bought. Already the papers are drawn at the dictation of Governor Taft, and signed by the four paties who now stand as legally invested with title. These are:

I

“(1) The Philippine Sugar Estates Development Company, owning and representing the Dominican lands; (2) The Sociedad Agricola de Ultramar, owning and representing the Augustinian lands;

"(3) The British-Manila Estates Company, Limited, representing the Imus Estate, of eighteen thousand hectares, in Cavite province;

(4) The Recolleto Order, owning twenty-three thousand and nine hectares of land, in an estate in Mindoro.

"The organizations selling the property are bound to furnish satisfactory evidence of their titles, but if there are others who have any lawful titles to the property their claims will not be extinguished by the bargain between the government and the friars.

"In case litigation should arise, however, the government will be at liberty to choose its forum, which may be a Court of First Instance, or the Court of Land Registration.

CHAPTER XVIII.

PHILIPPINE FINANCE.

IN no one way could the facts of pacification and the establishment of civil government be so fully and convincingly set forth as by a brief statement of the financial situation. The collection of taxes, the systematic audit of accounts of every sort in all the provinces, and the steady extension of agricultural operations as proved by the rapid increase in exports of hemp, sugar, and copra, all combine to make it abundantly clear that American rule is to-day more nearly universal in the Philippines than Spanish rule ever became.

All the facts set forth in the statistics which follow are taken from the latest reports of the insular auditor and collector of customs, while the government currency expert, Mr. E. W. Kemmerer, has furnished me with a brief statement of the present status of the currency situation.

"TREASURY STATEMENT.

"Comparative Treasury Statement, Fiscal Years 1899, 1900, 1901, 1902, and 1903.

"The following is a comparative statement of deposits and withdrawals at the insular treasury by fiscal years since the date of American occupation in August, 1898, to June 30, 1903. The treasurer's account for the fiscal year 1903, elsewhere stated in the currencies actually involved, is here for purposes of comparison converted at the ratio of $2.45 to $1, the official ratio at the close of the fiscal year, which also may be considered a fair average ratio for the year. From this statement has