FOREIGN AND COASTWISE NAVIGATION.

The opening of the interior ports and the registration of vessels under the operation of General Order No. 69, Office of the United States military governor, dated December 21, 1899, was the commencement of the resumption of the coastwise trade of the islands.

The first license to engage in this trade was issued at Manila on January 6, 1900. From that date to June 30, 1900, 473 licenses and certificates of protection were issued at Manila alone to vessels to engage in this trade.

The aggregate tonnage of these vessels amounted to 44,875.25, and upon which there was collected $44,875.25, Mexican money.

During the same period licenses and certificates of protection were issued at the other entry ports as follows, viz:

Total tonnage.

2,554. 38

3, 544. 47 17

3.70

None.

making for the entire islands a grand total of issues of licenses and certificates to 843 vessels, aggregating a tonnage of 50,984.80.

Since July 1 last licenses and certificates have been issued at Manila to 152 vessels, aggregating 5,956.80. No reports have as yet been received of the number of licenses issued at the other entry ports since July 1 last.

In addition to the foregoing, special licenses without certificates of protection, under the provisions of General Orders, No. 38, office of the United States Military Governor, dated March 24, 1900, have been issued at Manila alone to 92 vessels, aggregating 592.01 tons.

The reports of the number of special licenses issued at the other entry ports have not as yet been received.

That the coastwise trade will continue to increase is evidenced by the fact that there seems to be no diminution in applications for licenses and certificates.

A summary of coastwise and foreign navigation at the port of Manila, P. I., for the fiscal year ending June 30, 1900, is appended, marked "A." A similar summary for the other entry ports is appended, marked "B."

IMPORTS.

A summary of all imports at the port of Manila, P. I., by countries, for the fiscal year ending June 30, 1900, marked "C," is herewith inclosed. An inspection of this exhibit will show that there has been a remarkably steady increase in the imports to Manila, especially in those of provisions and manufactured cotton goods.

As the supplies for the army and navy serving in the Philippines do not pass through the custom-house, they do not enter into this

summary.

The increase in the importation of provisions and manufactured goods may be properly attributed, under the influence of American example, to a higher standard of living than formerly, as to food and dress, by the native and Chinese inhabitants of these islands, and their ability to supply their wants because of the employment which they obtain at wages increased since American occupation.

A summary of the imports at the other entry ports can not be fully given at this date because of the absence of proper data. The reports will be rendered in due time after the reception of the proper data and will be forwarded to their proper destination. When these reports are accomplished they will substantiate the above deductions made relative to the imports to Manila. Anyone who considers the steady increase of importations can make various deductions therefrom, but not any but those which are patriotically complimentary to the United States Government.

It will be noticed that Hongkong is credited with a very large amount of flour imported into the Philippine Islands, credited to Hongkong under the rules, because invoiced at Hongkong and because the principal houses of the importers are situated there. It is unofficially known that nearly all of the flour invoiced at Hongkong, as a matter of fact, comes from the United States, as is shown by brands on the sacks.

The same is true to a greater or less extent of canned fruits and other articles of provisions.

EXPORTS.

A summary of all exportations through the port of Manila, P. I., for the fiscal year ending June 30, 1900, marked "D," is herewith inclosed. It will be noticed that there appears a steady decline in exports. This is partly accounted for by the disturbed condition of the country, which has interrupted and prevented agricultural and productive development, and partly so far as hemp, the principal article of export heretofore, being held up in the islands, it is believed, by interested parties until it suits their financial convenience to export it. The fact remains, however, that exports will not greatly increase until agricultural and productive development is fully resumed and industriously prosecuted with legitimate growth and increase.

A summary of the exportation through the other entry ports can not at this date be given because of the lack of proper data. The reports made monthly to the War Department, and mailed direct, will later give all information which it is impracticable to give at this time. These reports, six in number, are as follows:

1. Statement in detail of receipts and expenditures for Manila. 2. Consolidated statement in detail of receipts and expenditures of all the entry ports in the Philippine Islands.

3. Statement of imports by countries, exhibiting the country of production of each article imported, a separate report being forwarded for each of the entry ports.

4. Statement of exports by countries, exhibiting the countries to which each article is exported. A separate report is forwarded for each of the entry ports.

5. Report of coastwise navigation, a separate report for each entry port being forwarded.

6. Report of foreign navigation, a separate report for each entry port being forwarded.

I inclose herewith, marked "E," abstract of receipts of hemp, tobacco, sugar, and rice at the port of Manila from interior ports, from January 1, 1900, to August 1, 1900, as shown by manifests inclosed herewith.

I inclose herewith, marked "F," a financial report of the total receipts and expenditures for the port of Manila, and for the Philippine

Islands, for the fiscal year ending June 30, 1900, which embraces a table showing percentage of increase of each six over the last six preceding months, and the percentage of receipts consumed in conducting the customs business of the islands.

I inclose herewith, marked "G," a comparative year's statement of receipts and expenditures of customs and navigation for the years 1893 to 1897, inclusive, under Spanish rule, and the same for the fiscal year ending June 30, 1900, and to invite attention to the greatness of disproportion of tonnage tax collected with the business transacted under Spanish rule when compared with tonnage tax collected and business. transacted during the fiscal year ending June 30, 1900.

There are no records of receipts and expenditures during the period of Spanish rule at other ports than Manila, the records of other ports having been destroyed prior to or at the time of American occupation. I inclose herewith, marked "H," abstract of gold and silver coin imported and exported from date of American occupation to August 13, 1900, inclusive.

By referring to the records of the fiscal year closing June 30, 1900, it will be seen that the total receipts of the custom-house at Manila amounted to $9,770,430.80 as against $5,542,994.91 for the fiscal year ending June 30, 1899; and on the item of imports alone for the fiscal year ending June 30, 1900, the receipts amounted to $8,568,381.28 as against $4,716,035.80 for the previous fiscal year.

The total import duties collected in the Philippine Islands for the fiscal year ending June 30, 1900, amounted to $8,568,831.11 as against $4,869,134.37 collected for the fiscal year ending June 30, 1899.

The excess of customs receipts collected at all open ports in the Philippine Islands during the fiscal year ending June 30, 1900, amounted to $9,612,350.86 as against $6,202,229.38 collected during the fiscal year ending June 30, 1899.

It will be noted that salaries expenses for the fiscal year ending June 30, 1899, was kept down to the minimum on account of the fact that a very large amount of the clerical work was done by enlisted men who drew their pay from the Government instead of from the receipts of the custom-house.

I inclose herewith exhibit marked "I," statement of receipts and expenditures at Manila, P. I., for the fiscal year ending June 30, 1900; also exhibit marked "J," giving the same data for the same period for all of the entry ports in the Philippine Islands.

IMMIGRATION.

The immigration regulations for the Philippine Islands, as promul gated by the War Department June 7, 1899, and the execution of which devolves upon the customs service, have been and are being strictly adhered to and carried out.

CHINESE REJECTIONS.

During the fiscal year 420 Chinese passengers arriving at Manila were, upon examination, found not entitled to land and were rejected, and the transportation companies bringing them here were requ..ed to take them back to the ports from whence they sailed.

CHINESE RESIDENTS.

During the fiscal year ending June 30, 1900, certificates of residence were issued at Manila to 10,247 Chinese residents of Manila departing for China, and 11,496 Chinese residents of Manila returned from China to Manila.

EXTENSION OF FACILITIES AT MANILA.

The provision which has been made for the erection of additional buildings on the custom-house grounds at Manila and the prompt dispatch of lorchas and cascoes both day and night, when necessary, will furnish ample facilities for promptly handling all goods passing through

the custom-house.

I desire to express my confidence in the efficiency and integrity of all customs officials in the Philippine Islands.

Very respectfully,

WM. F. SPURGIN,

Lieutenant-Colonel Sixteenth United States Infantry, Collector of Customs of the Islands and of the Chief Port.

EXHIBIT A.-Navigation report for fiscal year ending June 30, 1900.

Date.

1899.

Vessels. Tonnage. Vessels. Tonnage. Vessels. Tonnage. Vessels. Tonnage.

This report gives the number of coastwise and foreign vessels arrived and cleared at the port of Manila during the fiscal year ended June 30, 1900, together with the tonnage of the same.

WAR 1900 VOL 1, PT X- 4