APPENDIX BB. UNITED STATES MILITARY GOVERNMENT OF THE PHILIPPINE ARCHIPELAGO AND ISLAND OF GUAM, Manila, P. I., August 16, 1900. The SECRETARY TO THE MILITARY GOVERNOR IN THE PHILIPPINES. SIR: I have the honor to transmit herewith yearly statement of financial transactions of the treasury. Attention is invited to the accumulation of the island funds. Under present orders the accounts are in Mexican, but commencing October 1, 1900, are to be kept in United States currency. If the rate at which foreign coin is to be received is to be different from the treasury rate, fixed quarterly, all collectors must be notified in time and instructed how to invoice their funds. The following courses are open: First. All tariff rates may be expressed in United States currency, and Mexican currency be received at quarterly rate. Second. Tariff rates may remain expressed in Mexican, and United States currency be taken at quarterly rate, in which case the Government would lose in revenue. Third. Tariff rates may be expressed in Mexican, and United States currency be received at commercial rate and invoiced to the treasurer at quarterly rate, the difference to be accounted for as premium. Decision as to which of these methods shall be followed is necessary to avoid confusion in rendering accounts. The following is state of moneys of the islands: Gold is driven from circulation, either hoarded or exported to where it has its true value. United States currency has limited circulation, but at less than its true value. Mexican dollars are of two values, but both kinds are taken for same value here. The more valuable one is being exported and the cheaper one coming in to take its place. The Mexicans are of irresponsible coinage. I do not see why anyone could not manufacture them just as they would shoes. The tendency will be toward a lighter one constantly. Paper money: Spanish-Filipino bank notes partially guaranteed. United States paper currency does not circulate, because of the low value at which it is received. Fractional currency consists of Spanish-Filipino 50, 20, and 10 cent pieces. They are no longer legally coined, and there is no Mexican fractional currency. The demand must be satisfied by the coinage of a special currency or by the introduction of United States currency. The demand is great and widespread. Copper coins are scarce, the demand being partially met by placing Spanish copper coins, 1 and 2 cent pieces, in circulation at Mexican 35 valuation, its true value being gold. An order prohibits their exportation. The other copper coins in circulation are mostly foreign and defaced pieces. The estimated amounts of moneys in circulation are as follows: Gold, practically none; United States currency, $2,000,000 or $3,000,000; Spanish-Filipino bank notes, $2,500,000; Mexican and Spanish-Filipino pesos, $40,000,000; fractional currency, $15,000,000, as followsSpanish-Filipino half dollars, 20-cent pieces, 10-cent pieces, and foreign, defaced, and Spanish copper coins. Total amount, about $60,000,000, or about 8 pesos per head. The The amount of money in the islands has constantly increased since American occupancy, and conditions favor a continuance of the same. Whatever astringency occurs is the result of artificial causes. financial situation has been entirely in the hands of the two English banks, which work together. Their interests in these islands are but a fraction of their interests elsewhere; these latter interests control their policy. These banks make no statement to the Government so far as known, although, being depositories, it would seem that they should make one similar to what is required in the States. I would recommend that the item "Spanish seized fund" (statement No. 1) be taken up on the books as "Miscellaneous," as is required by the instructions of the War Department, May 11, 1899. The amount is fixed and need not be drawn against except by special warrant. Such action would in no way affect any claims against said fund. The $4,200 of this item, Spanish gold, in treasury vaults, is added as if it were Mexican, and a note explains it is gold value. This could be deposited in the bank and taken up at its true value. The same in the case with the $3,806.08 in gold bars. This could be sent to the mint in San Francisco and its true value realized, or it could be sold to the banks and its bullion realized, less about 1 per cent charge for express and insurance to London. That all coin, bank notes, drafts, deposit warrants, and checks on statement No. 2 be deposited in the bank as a special deposit, the books keeping the deposit distinct. The value of the checks, drafts, and deposit warrants should be realized, as they are not in desirable form to preserve. All bonds, stock, bullion, jewelry, etc., to be kept as special deposits, and that a single return be made of all these special deposits instead of three, as is now done. Respectfully submitted. C. F. PARKER, First Lieutenant, Second U. S. Artillery, Treasurer of the Philippine Islands. STATEMENT No. 1.-Funds received and disbursed during the fiscal year 1899–1900. Spanish seized funds: Of this amount $4,200 is in Spanish 4-peso gold pieces, and $3,806.08 in gold bars, the value of which is based on the gold and not the silver peso. Of the remainder, $285,200 is in 1 and 2 cent Spanish copper coins and $597,023.78 in Mexican and Spanish-Filipino silver pesos. Insurgent seized funds: By order of the military governor this fund was discontinued in the month of April, 1900, and the amount to its credit, $69,401.41, taken up under the head of "miscellaneous." Postal: Receipts and disbursements on account of this fund are made in United States currency, but are, for uniformity, taken up in the above statement in Mexican silver, having been reduced at che rate of $1 United States currency = $2 Mexican silver. I certify that the above is a true statement of all money received and disbursed luring the fiscal year 1899-1900, and that the balance as shown above is on deposit s follows: STATEMENT No. 2.-Coin, bank notes, drafts, deposit warrants, bonds, bank stock, etc., not taken up on the regular books of the treasury, but accounted for to the auditor on separate monthly returns, on hand June 30, 1900. [Mexican currency.] (1) Funds received at the Spanish general treasury, being mostly deposits made as guarantee for government contracts or for services in official capacity: Spanish gold coin Mexican and Spanish-Filipino coin Notes of the Banco Español-Filipino, Manila. Certified bearer check. Philippine treasury notes, Series B1 Spanish treasury bonds Philippine treasury bonds, Series B (2) Funds seized at and belonging to the Ayuntamiento of Manila: Philippine treasury bonds, Series B.. Shares of the Banco Español-Filipino, Manila Fire department medals in box.1 (3) Funds received from and belonging to the "Junta Provincial:" Deposit warrants of the Banco Español-Filipino, Manila (4) Property seized at the mint, Manila: 2,192 kilos 105 grams damaged silver coins (said to belong to private parties). 13 kilos 90 grams silver dust (said to belong to private parties). 1 kilo 411 grams gold and silver mixed (said to belong to private parties). 153 kilos 853 grams copper ingots. 50 kilos 585 grams unfinished silver coins. 39 kilos 490 grams bar silver. 26 sealed envelopes, said to contain sample coins. (5) Funds deposited with the treasurer by American officers as special deposits," awaiting further action as to their disposal, being prin- American and Spanish gold.. Mexican and Spanish-Filipino coin Notes of the Banco Filipino-Español, Manila Foreign bank notes....... Philippine treasury notes1 Certified bearer checks Sight drafts in duplicate Deposit warrants..... Philippine treasury provisional bonds Second of exchange drafts1. Cashed drafts1 $5.00 728.62 1,240.00 671.00 32, 322.00 18, 000. 00 18,500.00 7,700.00 18, 800.00 18, 719. 91 2, 532. 13 16,611. 42 14, 810.00 3.00 2,739.00 245.83 2,675.00 3,000.00 10, 300.00 47,500.00 175, 021. 23 466.40 Sundry jewelry and papers. I certify that the above is a true statement of all funds and property received by me and not accounted for on the regular books of the treasury, up to and including June 30, 1900. C. F. PARKER, First Lieutenant, Second Artillery, MANILA, P. I., August 15, 1900. Without value. APPENDIX CC. UNITED STATES MILITARY GOVERNMENT OF THE PHILIPPINE ISLANDS, OFFICE OF THE AUDITOR, Manila, P. I., August 15, 1900. SIR: I have the honor to make the following report for the auditor's department for the fiscal year ending June 30, 1900: As there was no mention made of this department in the annual report of Major-General Otis for the period ending June 30, 1899, I take the liberty of going back to the inauguration of the department and the appointment of an auditor. General Orders, No. 3, office military governor, September 5, 1898, states: "At the end of each month officers charged with the disbursements of those funds" (public civil funds derived from customs, taxes, and other revenues in the Philippine Islands) "in the several departments of administration will render, through the heads of such departments, to the auditor of public accounts hereinafter designated, a statement on authorized blanks of all receipts and expenditures," and "Maj. Charles E. Kilbourne, paymaster, U. S. A., is hereby designated auditor of public accounts." Maj. C. E. Kilbourne was relieved from duty as auditor by Special Orders, No. 4, office military governor, October 10, 1898, which also appointed Lieut. Col. C. L. Potter, U. S. V., to the vacancy "to investigate and report upon expenditures of all public funds and to perform such duties in addition to those which devolve upon him as chief engineer officer of this department." The accounts submitted were few in number at first and were examined by the chief clerk of the engineer department and revised by the auditor, but the accounts gradually increased in number, so that they could not give them proper attention in addition to their department duties. The accounts were rendered by officers, many of whom were not familiar with the details required by the War Department, and but few of those submitted could be accepted, thus necessitating many letters of instructions to officers actively engaged in the field, and with whom it was difficult to communicate, owing to the lack of proper mail facilities. However, by careful watching and by the issuing of numerous circular letters the department managed to get the accounts in fair shape, as is shown by those on file. Under date of May 8, 1899, the President issued an order creating "offices of auditor of the islands; one assistant auditor for auditing the accounts for department of customs, and one assistant auditor for auditing the accounts for the department of post-offices," and under date of May 11, rules and instructions were issued by the Secretary of War to carry into effect the Executive order. Lieut. Col. C. L. 39 |