Entrepreneurial finance 6th edition adelman test bank

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TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1)

Entrepreneurial
Finance 6th edition by Adelman Marks ISBN 0133140512 9780133140514

A forecast is an accurate estimate of future demand.

1)
_______ 2)

Lenders require pro forma statemen ts because they want to make sure the business will generate enough profit for the owner to get a large salary.

2)
_______ 3)

Lenders require pro forma statemen ts because they want to make sure the business will generate enough profit to pay back both the principal and interest on the loan.

3)
_______ 4)

There is a direct relations hip between the forecast accuracy and time.

4)
_______ 5)

The longer the time horizon, the more accurate the forecast will be.

5)

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opportunity to come before the Commission and suggest objections or amendments to the bills. The Commission has likewise adopted as part of its regular procedure the submission of all proposed bills to the Military Governor for his consideration and comment before enactment. We think that the holding of public sessions furnishes instructive lessons to the people, as it certainly secures to the Commission a means of avoiding mistakes. … The Commission has now passed forty-seven laws of more or less importance. … A municipal code has been prepared and forwarded to you for the consideration of one or two critical matters, and has not yet been adopted, pending your consideration of it. A tariff bill … has been prepared. … A judicial and civil procedure bill is nearly completed. The same thing is true of a bill for provincial government organization. A new internal tax law must then be considered. The wealth of this country has largely been in agricultural lands, and they have been entirely exempt. This enabled the large landowners to escape any other taxation than the urbana, a tax which was imposed upon the rental value of city buildings only, and the cedula tax, which did not in any case exceed $37.50 (Mexican) a person. We think that a land tax is to be preferred, but of this there will be found more detailed discussion below. …

"The only legislation thus far undertaken by the Commission which bears directly on the conduct of municipal affairs in the city of Manila is a law regulating the sale of spirituous, malt, vinous or fermented liquors. It is provided that none of the so-called native 'wines' [said to be concocted by mixing alcohol with oils and flavoring extracts] shall be sold except by holders of native wine licenses, and that such holders shall not be allowed to sell intoxicants of any other sort whatever. … The selling of native wines to soldiers of the United States under any circumstances is strictly prohibited, because the soldiers are inclined to indulge in those injurious beverages to excess, with disastrous results. … The Filipino ordinarily uses them moderately, if at all.

Fortunately, he does not, to any considerable extent, frequent the American saloon. With a view to preventing his being attracted there, the playing of musical instruments or the operation of any gambling device, phonograph, slot machine, billiard or pool table or other form of amusement in saloons, bars or drinking places is prohibited."

The report of the Commission urged strongly the establishing of a purely civil government in the Islands, for reasons thus stated: "The restricted powers of a military government are painfully apparent in respect to mining claims and the organization of railroad, banking and other corporations and the granting of franchises generally. It is necessary that there be some body or officer vested with legislative authority to pass laws which shall afford opportunity to capital to make investment here. This is the true and most lasting method of pacification. Now the only corporations here are of Spanish or English origin with but limited concessions, and American capital finds itself completely obstructed. {395}

Such difficulties would all be removed by the passage of the Spooner bill now pending in both houses.

See below: A. D. 1901 (FEBRUARY-MARCH).

The far reaching effect upon the feeling of the people of changing the military government to one purely civil, with the Army as merely auxiliary to the administration of civil law, cannot be too strongly emphasized. Military methods in administering quasi-civil government, however successful in securing efficiency and substantial justice, are necessarily abrupt and in appearance arbitrary, even when they are those of the Army of the Republic; and until a civil government is established here it will be impossible for the people of the Philippine Islands to realize the full measure of the difference between a government under American sovereignty and one under that of Spain."

Another subject of great importance dealt with in the November report of the Commission was that concerning the employment of native troops and police, on which it was said: "The question as to whether native troops and a native constabulary are at present practicable has received much thought and a careful investigation by the Commission. … We have sought and obtained the opinions of a large number of Regular and volunteer officers of all rank, having their fields of operation in all parts of the islands, and there appears to be a general consensus of opinion among them that the time is ripe for these organizations, and this is also our conclusion. Assuming that Congress at its next session will provide for an increase of the Regular Army, it by no means follows that a large part thereof will, or should, be stationed here permanently. Considerations of public policy and economy alike forbid such a programme, nor in our judgment is it necessary.

"While the American soldier is unsurpassed in war, as it is understood among civilized people, he does not make the best policeman, especially among a people whose language and customs are new and strange to him, and in our opinion should not be put to that use when, as we believe, a better substitute is at hand. We therefore earnestly urge the organization of ten regiments of native troops of infantry and cavalry, the proportion between the two arms of the service to be fixed by competent military judges. These troops should in the main be officered by Americans. Certainly this should be the case as to their field officers and company commanders. Lieutenants might be Filipinos, judicially selected, and provision might be made for their promotion in the event of faithful or distinguished service.

"We further recommend that a comprehensive scheme of police organization be put in force as rapidly as possible; that it be separate and distinct from the army, having for its head an officer of rank and pay commensurate with the importance of

the position, with a sufficient number of assistants and subordinates to exercise thorough direction and control. This organization should embrace every township in the islands, and should be so constituted that the police of several contiguous townships could be quickly mobilized. The chief officers of this organization should be Americans, but some of the subordinate officers should be natives, with proper provision for their advancement as a reward for loyal and efficient services. The main duty of the police would, of course, be to preserve the peace and maintain order in their respective townships, but occasion would, no doubt, frequently arise when it would be necessary to utilize the forces of several townships against large bands of ladrones."

With regard to the organization of municipal government in the townships (pueblos) of the Islands the report of the Commission says, in part: "The 'pueblos' of these islands sometimes include a hundred or more square miles. They are divided into so-called 'barrios' or wards, which are often very numerous and widely separated. In order that the interests of the inhabitants of each ward may be represented in the Council, on the one hand, and that the body may not become so numerous as to be unwieldy, on the other, it is provided that the Councillors shall be few in number (eighteen to eight, according to the number of inhabitants), and shall be elected at large; that where the wards are more numerous than are the Councillors the wards shall be grouped into districts, and that one Councillor shall be in charge of each ward or district, with power to appoint a representative from among the inhabitants of every ward thus assigned to him, so that he may the more readily keep in touch with conditions in that portion of the township which it is his duty to supervise and represent. …

"In order to meet the situation presented by the fact that a number of the pueblos have not as yet been organized since the American occupation, while some two hundred and fifty others

are organized under a comparatively simple form of government and fifty-five under a much more complicated form on which the new law is based, the course of procedure which must be followed in order to bring these various towns under the provisions of the new law has been prescribed in detail, and every effort has been made to provide against unnecessary friction in carrying out the change.

"In view of the disturbed conditions which still prevail in some parts of the archipelago it has been provided that the military government should be given control of the appointment and arming of the municipal police and that in all provinces where civil provincial government has not been established by the Commission the duties of the Provincial Governor, Provincial Treasurer and Provincial 'Fiscal' (prosecuting attorney) shall be performed by military officers assigned by the Military Governor for these purposes. It has been further provided that in these provinces the Military Governor shall have power through such subordinates as he may designate for the purpose to inspect and investigate at any time all the official books and records of the several municipalities, and to summarily suspend any municipal officer for inefficiency, misconduct or disloyalty to the United States. If upon investigation it shall prove that the suspended officer is guilty, the Military Governor has power to remove him and to appoint his successor, should he deem such a course necessary in the interest of public safety. It is thought that where the necessity still exists for active intervention on the part of the Military Governor it will ordinarily be desirable to allow the towns to retain their existing organization until such time as conditions shall improve; but, should it prove necessary or desirable in individual instances to put the new law into operation in such provinces, it is felt that the above provisions will give to the Military Governor ample power to deal with any situation which can arise, and he has expressed his satisfaction with them.

"There are at the present time a considerable number of provinces which, in the judgment of the Commission, are ready for a provincial civil government. It is believed that in the majority of cases it will be possible to organize all the municipalities of a province, creating at the same time a civil provincial government. So soon as civil government is established in any province, power to remove officials for inefficiency, misconduct or disloyalty, and, should public safety demand it, to fill the offices thus made vacant, is vested in the civil authorities. The law does not apply to the city of Manila or to the settlements of non-Christian tribes, because it is believed that in both cases special conditions require special legislation. The question as to the best methods of dealing with the non-Christian tribes is one of no little complexity. The number of these tribes is greatly in excess of the number of civilized tribes, although the total number of Mahometans and pagans is much less than the number of Christianized natives. Still, the non-Christian tribes are very far from forming an insignificant element of the population. They differ from each other widely, both in their present social, moral and intellectual state and in the readiness with which they adapt themselves to the demands of modern civilization."

PHILIPPINE ISLANDS: A. D. 1900 (October). United States military forces in the Islands.

"At the date of my last annual report there were in the Philippine Islands 971 officers and 31,344 enlisted men; and there were en route for service in those islands 546 officers and 16,553 enlisted men the latter force being principally in California. Since that time an additional force ordered to China was diverted to the Philippine Islands, making a total of 98,668 men sent to the archipelago. Of this number 15,000 volunteers, first sent to that country in 1898, together with

{396}

the sick and disabled, have been returned to the United States, leaving at the present time in the islands, according to last report, 2,367 officers and 69,161 enlisted men. Fifteen hundred men have been left in China to act as a guard for the American legation in that country and for other purposes."

United States, Annual Report of Lieutenant-General Commanding the Army, October 29, 1900.

PHILIPPINE ISLANDS: A. D. 1900 (November).

The problem of the Spanish Friars.

Two contradictory representations of their work and influence. Views and recommendations of the United States Commission.

Of the character, work and influence of the Spanish religious orders in the Philippine Islands there are two diametrically opposite accounts given by different writers. Both are represented in two of the quotations below, and those are followed by extracts from a report made by the United States Commission, November 30, 1900, on the subject of the problem they present to the new government of the Islands. The first writer is condemnatory. He says:

"The better classes [of the Filipinos] have absorbed much of Spanish civilization in their three-century-old apprenticeship. They show extraordinary talent for music. The church of the mother land of Spain is much in evidence among them. It brought to them its blessings, but also incidentally a terrible curse. The mendicant orders the Franciscans, the Dominicans, the Augustinians, no longer poor preachers, thinking only of serving, blessing, loving men, but grown rich, domineering, and, in many cases, sadly corrupt in morals ate up the land. They added field to field, house to house, till there was but little space left for the people. They charged enormous rents to those who to put bread in their mouths must till their fields. Just such cause for revolt existed

as that which in France aroused the storm of the great revolution; the people taxed without mercy, the clergy untaxed, reaping the benefit. Had the Christ-like St. Francis of Assisi been endowed with the gift of prophetic vision to see this gross degeneracy of his followers, more than ever would he have felt the soundness of his intuition which made him set his face like flint against the acquisition of any property by his order. His beloved fair Lady of Poverty would have seemed to him more beautiful than ever. He would have been horrified with the knowledge of the cruel rapacity of monks bearing his name, who, nevertheless, grossly oppressed the Philippine peasantry in rents and taxes, the very poor whom St. Francis founded his order to serve.

"Perhaps the most deep-seated cause of Filipino insurrection against Spanish authority was this unchecked growth of ignorant, cruel, and oppressive ecclesiasticism. It was this which weighed most heavily upon the people. It made the mere question of gaining a livelihood difficult, but especially did it strangle intellectual and moral growth. It not only oppressed the Filipinos, but it overawed and dominated the Spanish authorities. It was the power of the mendicant orders which drove out the just Condé de Caspe, and later the well-disposed and clement Blanco, which stimulated and supported the frightful atrocities of the cruel Polavieja during the revolution of 1896. Archbishop Nozaleda, a Spanish monk of the Dominican order, was a leader in urging wholesale and often wholly unjustifiable arrests, which were succeeded by the torture and execution of hundreds of persons. It is difficult for a mind reared in the freedom and culture of modern Europe, or still freer America, to realize the horrible excesses and actual mediæval cruelties which were committed in the prisons of Manila and elsewhere in the islands upon Filipino insurgents, or those accused of being in league with them, during the revolution of 1896. The actual story of these things as it is unfolded, not only from Filipino sources, but from the Spanish archives of Manila, is like a scene evoked

from the long-buried and forgotten past in the middle ages. Indeed, the only intelligible interpretation of events which cast shame on the name of Spanish authority and Spanish Christianity is found by reflecting that affairs in the Philippines, just previous to the battle of Manila, were controlled by ideas and forces which existed generally in Europe previous to the Reformation, ideas which slowly retreated before the dawn of the new learning and the liberation of the individual conscience."

H. Welsh, The Other Man's Country, chapter 1 (Philadelphia: J. B. Lippincott Company).

{397}

In the other view there is an appeal to results which cannot easily be divested of force. They are set forth in the following:

"The ideals of civilization for the Spanish missionary priests in the Philippines were substantially the same as those of Bacon and Raleigh, of the founders of New England and the founders of New York. In the mind of all, a civilized people was one which lived under settled laws by steady labor, which was more or less acquainted with the material progress made amongst the races of Europe, and, as all would say, which was Christian. The Spanish friars undertook the task of giving such a civilization to the Malays of the Philippines, and no other body of men of any race or any faith have accomplished what they have done. A task of somewhat similar kind has been attempted by others in our own day in the name of Christian civilization but not the Catholic Church. Hawaii has been under control of missionaries from New England for seventy-five years more completely than the Philippines were ever under that of the Spanish friars. The native kings adopted the new creed and enforced its adoption on their

subjects by vigorous corporal punishments. The missionaries were abundantly supplied with such resources of civilization as money could buy, and they have grown wealthy on their mission; but what has been the fate of the natives? They have dwindled in numbers to a fourth of what they were when Messrs. Bingham and Thurston entered their islands, their lands have been taken by strangers, their government overthrown by brute force, and the scanty remnant has dropped the religion imposed on them. In the Philippines in a hundred and forty years a million of Catholic natives has grown seven fold. In Hawaii under missioners of the world's manufacture a hundred and forty thousand of the same race has shrunk to thirty-eight thousand. Have the promises of the Spanish friars or those of the American ministers been the most truthfully kept? The actual condition of the Catholic population formed by the work of the religious orders should not be judged by the excesses which have marked the present revolution. Many old Christian nations have gone through similar experiences. It would be as unreasonable to judge the Christianity of France by the Reign of Terror as to condemn the Filipino population for the atrocities sanctioned by Aguinaldo. The mass of the country population has taken no part in these deeds of blood which are the work of a small number of political adventurers and aspirants for office by any means. Until lately revolutionary disturbance was unknown in the Philippines. During three centuries there was only one serious Indian rebellion, that of Silan, in the province of Illocos, at the time of the English invasion. The Spanish military force was always too small to hold the islands had there been any real disaffection to the Government. The whole force at Manila in the present war, as given by General Otis, was only fifty-six hundred, and about as many more represented the entire Spanish force among a population of seven millions.

"The disposition of the Catholic Filipinos is essentially law abiding. One of the friars lately driven from the islands by the revolution assured the writer that in Panay, an island

with a population of half a million, a murder did not occur more often than once or twice in a year. In our own country last year the proportion was more than fifty times as great. There is no forced labor as in the Dutch Indian colonies to compel the native Filipinos to work, yet they support themselves in content without any of the famines so common in India under the boasted rule of civilized England. A sure evidence of material prosperity is the growth of the population, and of its religion a fair test is the proportion of Catholic marriages, baptisms and religious interments to the whole number. The proportion of marriages in 1806 to the population among the natives administered by the friars was one to every hundred and twenty, which is higher than England, Germany, or any European country. The number of baptisms exceeded the deaths by more than two and a half per cent, a greater proportion than in our own land. Compare this with Hawaii and one feels what a farce is the promise of increased prosperity held out by the American Press as the result of the expulsion of the Spanish friars. It is not easy to compare accurately the intellectual development of the Catholic Filipinos with American or European standards. The ideals of civilization of the Catholic missioners were different from those popular with English statesmen and their American admirers. The friars did not believe that the accumulation of wealth was the end of civilization, but the support of a large population in fair comfort. There are no trusts and few millionaires in the islands, but their population is six times greater than that of California after fifty years of American government. The test so often applied of reading and writing among the population finds the Filipinos fairly up to the standard of Europe at least. Of highly educated men the proportion is not so large as in Europe, but it is not inconsiderable, and neither in science nor in literature are the descendants of the Malay pirates unrepresented in their remote islands. The native languages have developed no important literature of their own, but they have a fair supply of translations from Spanish works in history, poetry, and

philosophy. In that they are superior to the Hindoo of British India, though spoken by nearly a hundred millions. These are facts that throw a strange light on the real meaning of civilization as planted by the Spanish friars among a barbarian race. Compare them with the fate of the Indian races on our own territory and say what benefit the Filipinos may expect from the advent of 'Anglo-Saxon' civilization."

(American Catholic Quarterly Review, volume 24, page 15).

These opposing views are suggestive of the seriousness of the problem which the subject offers to the new authority in the Philippines. The American Commission now studying such problems in those islands has presented its first views concerning the Spanish friars in a lengthy report, written by Judge Taft, and transmitted to Washington as part of the general report of the Commission, bearing date November 30, 1900. The passages quoted below contain what is most essential in the interesting document:

"Ordinarily, the Government of the United States and its servants have little or no concern with religious societies or corporations and their members. With us, the Church is so completely separated from the State that it is difficult to imagine cases in which the policy of a Church in the selection of its ministers and the assignment of them to duty can be regarded as of political moment, or as a proper subject of comment in the report of a public officer. {398}

In the pacification of the Philippines by our Government, however, it is impossible to ignore the very great part which such a question plays. Excepting the Moros, who are Moslems, and the wild tribes, who are pagans, the Philippine people belong to the Roman Catholic Church. The total number of Catholic souls shown by the Church registry in 1898 was

6,559,998. To care for these in that year there were in the archipelago 746 regular parishes, 105 mission parishes and 116 missions, or 967 in all. Of the regular parishes all save 150 were administered by Spanish monks of the Dominican, Augustinian, or Franciscan orders. Natives were not admitted to these orders. There were two kinds of Augustinians in these islands, the shod and the unshod. The latter are called Recolletos, and are merely an offshoot from the original order of St. Augustine.

"By the revolutions of 1896 and 1898 against Spain, all the Dominicans, Augustinians, Recolletos, and Franciscans acting as parish priests were driven from their parishes to take refuge in Manila. Forty were killed and 403 were imprisoned, and were not all released until by the advance of the American troops it became impossible for the insurgents to retain them. Of the 1,124 who were in the islands in 1896, only 472 remain. The remainder were either killed or died, returned to Spain, or went to China or South America. There were also in the islands engaged in missions and missionary parishes, 42 Jesuits, 16 Capuchins, and six Benedictines, and while many of these left their missions because of disturbed conditions they do not seem to have been assaulted or imprisoned for any length of time. In addition to the members of the monastic orders, there were 150 native secular clergymen in charge of small parishes who were not disturbed. There were also many native priests in the larger parishes who assisted the friar curates and they have remained, and they have been and are acting as parish priests. The burning political question, discussion of which strongly agitates the people of the Philippines, is whether the members of the four great orders of St. Dominic, St. Augustine, St. Francis, and the Recolletos shall return to the parishes from which they were driven by the revolution. Colloquially the term 'friars' includes the members of these four orders. The Jesuits, Capuchins, Benedictines, and the Paulists, of whom there are a few teachers here, have done only mission work or teaching, and

have not aroused the hostility existing against the four large orders to which we are now about to refer. …

"The truth is that the whole government of Spain in these islands rested on the friars. To use the expression of the Provincial of the Augustinians, the friars were 'the pedestal, or foundation, of the sovereignty of Spain in these islands,' which being removed, 'the whole structure would topple over.'

… Once settled in a parish, a priest usually continued there until superannuation. He was, therefore, a constant political factor for a generation. The same was true of the Archbishop and the bishops. The civil and military officers of Spain in the island were here for not longer than four years, and more often for a less period. The friars, priests, and bishops, therefore, constituted a solid, powerful, permanent, well organized political force in the islands which dominated policies. The stay of those officers who attempted to pursue a course at variance with that deemed wise by the orders was invariably shortened by monastic influence. Of the four great orders, one, the Franciscans, is not permitted to own property, except convents and schools. This is not true of the other three. They own some valuable business property in Manila, and have large amounts of money to lend. But the chief property of these orders is in agricultural land. The total amount owned by the three orders in the Philippines is approximately 403,000 acres. Of this 121,000 acres is in the Province of Cavité alone. The whole is distributed as follows: Cavité, Province of Luzon, 121,747 acres; Laguna, Province of Luzon, 62,172 acres; Manila, Province of Luzon, 50,145; Bulacan, Province of Luzon, 39,341; Morong, Province of Luzon, 4,940; Bataan, Province of Luzon, 1,000; Cagayan, Province of Luzon, 49,400; Island of Cebu, 16,413; Island of Mindoro, 58,455. Total, 403,713. …

"It cannot admit of contradiction that the autocratic power which each friar curate exercised over the people and civil officials of his parish gave them a most plausible ground for

belief that nothing of injustice, of cruelty, of oppression, of narrowing restraint of liberty, was imposed on them for which the friar was not entirely responsible. His sacerdotal functions were not in their eyes the important ones, except as they enabled him to clinch and make more complete his civil and political control. The revolutions against Spain's sovereignty began as movements against the friars. … Having in view these circumstances, the statement of the bishops and friars that the mass of the people in these islands, except only a few of the leading men of each town and the native clergy, are friendly to them cannot be accepted as accurate. All the evidence derived from every source but the friars themselves shows clearly that the feeling of hatred for the friars is well nigh universal and permeates all classes. In the provinces of Cavité, Laguna, and Bulacan, as well as in the country districts of Manila, the political feeling against the friars has in it also an element of agrarianism. For generations the friars have been lords of these immense manors, upon which, since 1880, they have paid no taxes, while every 'hombre' living on them paid his cedula, worked out a road tax, and, if he were in business of any kind, paid his industrial impost. …

"In the light of these considerations it is not wonderful that the people should regard the return of the friars to their parishes as a return to the conditions existing before the revolution. The common people are utterly unable to appreciate that under the sovereignty of the United States the position of the friar as curate would be different from that under Spain. This is not a religious question, though it concerns the selection of religious ministers for religious communities. The Philippine people love the Catholic Church. … The depth of their feeling against the friars may be measured by the fact that it exists against those who until two years ago administered the sacraments of the Church upon which they feel so great dependence and for which they have so profound a respect. The feeling against the friars is solely political. The people would gladly receive as ministers of the Roman

Catholic religion any save those who are to them the embodiment of all in the Spanish rule that was hateful. {399}

If the friars return to their parishes, though only under the same police protection which the American Government is bound to extend to any other Spanish subjects in these islands, the people will regard it as the act of that Government. They have so long been used to have every phase of their conduct regulated by governmental order that the coming again of the friars will be accepted as an executive order to them to receive the friars as curates with their old, all-absorbing functions. It is likely to have the same effect on them that the return of General Weyler under an American Commission as Governor of Cuba would have had on the people of that island.

"Those who are charged with the duty of pacifying these islands may therefore properly have the liveliest concern in a matter which, though on its surface only ecclesiastical, is, in the most important phase of it, political, and fraught with the most critical consequences to the peace and good order of the country, in which it is their duty to set up civil government. … It is suggested that the friars, if they returned, would uphold American sovereignty and be efficient instruments in securing peace and good order, whereas the native priests who now fill the parishes are, many of them, active insurgent agents or in strong sympathy with the cause. It is probably true that a considerable number of the Filipino priests are hostile to American sovereignty, largely because they fear that the Catholic Church will deem it necessary, on the restoration of complete peace, to bring back the friars or to elevate the moral tone of the priesthood by introducing priests from America or elsewhere. But it is certain that the enmity among the people against the American Government caused by the return of the friars would far outweigh the advantage of efforts to secure and preserve the allegiance of the people to American Sovereignty which might be made by priests who are still subjects of a monarchy with which the American

Government has been lately at war, and who have not the slightest sympathy with the political principles of civil liberty which the American Government represents.

"We have set forth the facts upon this important issue because we do not think they ought to be or can be ignored. We earnestly hope that those who control the policy of the Catholic Church in these islands with the same sagacity and prevision which characterize all its important policies, will see that it would be most unfortunate for the Philippine Islands, for the Catholic Church and for the American Government to attempt to send back the friars, and that some other solution of the difficulties should be found. … The friars have large property interests in these islands which the United States Government is bound by treaty obligations and by the law of its being to protect. It is natural and proper that the friars should feel a desire to remain where so much of their treasure is. … It would avoid some very troublesome agrarian disturbances between the friars and their quondam tenants if the Insular Government could buy these large haciendas of the friars, and sell them out in small holdings to the present tenants, who, forgiven for the rent due during the two years of war, would recognize the title of the Government without demur, and gladly accept an opportunity, by payment of the price in small instalments, to become absolute owners of that which they and their ancestors have so long cultivated. With the many other calls upon the insular treasury a large financial operation like this could probably not be conducted to a successful issue without the aid of the United States Government, either by a direct loan or by a guaranty of bonds to be issued for the purpose. The bonds or loans could be met gradually from the revenues of the islands, while the proceeds of the land, which would sell readily, could be used to constitute a school fund. This object, if declared, would make the plan most popular, because the desire for education by the Filipinos of all tribes is very strong, and gives encouraging promise of the future

mental development of a now uneducated and ignorant people.

The provincials of the orders were understood in their evidence to intimate a willingness on the part of the orders to sell their agricultural holdings if a satisfactory price should be paid. What such a price would be we are unable without further investigation to state. If an agreement could not be reached it is probable, though upon this we express no definite opinion, that there would be ground in the circumstances for a resort to condemnation proceedings."

PHILIPPINE ISLANDS: A. D. 1901.

Act of the United States Congress increasing army and authorizing the enlistment of native troops. Rejection of the proviso of Senator Hoar.

See (in this volume)

UNITED STATES OF AMERICA: A. D. 1901 (FEBRUARY).

PHILIPPINE ISLANDS: A. D. 1901 (February-March).

Congressional grant of military, civil and judicial powers for the government of the Islands to persons whom the President may appoint. The so-called "Spooner Amendment."

During the first session of the 56th Congress the following bill was introduced in the U. S. Senate by Mr. Spooner, of Wisconsin, but received no action:

"Be it enacted, etc., That when all insurrection against the sovereignty and authority of the United States in the Philippine Islands, acquired from Spain by the treaty concluded at Paris on the 10th day of December, 1898, shall have been completely suppressed by the military and naval forces of the United States, all military, civil, and judicial powers necessary to govern the said islands shall, until otherwise provided by Congress, be vested in such person and

persons, and shall be exercised in such manner as the President of the United States shall direct for maintaining and protecting the inhabitants of said islands in the free enjoyment of their liberty, property, and religion."

Half the following session of Congress passed before any disposition to take the action proposed by Senator Spooner was shown. Then the matter was brought to notice and pressed by the following communication to the Secretary of War, from the Commission in the Philippines:

"If you approve, ask transmission to proper Senators and Representatives of following: Passage of Spooner bill at present session greatly needed to secure best result from improving conditions. Until its passage no purely central civil government can be established, no public franchises of any kind granted, and no substantial investment of private capital in internal improvements possible." This was repeated soon afterwards more urgently by cable in the message following:

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"Sale of public lands and allowance of mining claims impossible until Spooner bill. Hundreds of American miners on ground awaiting law to perfect claims. More coming. Good element in pacification. Urgently recommend amendment Spooner bill so that its operation be not postponed until complete suppression of all insurrection, but only until in President's judgment civil government may be safely established."

The request of the Philippine Commission, endorsed by the Secretary of War, was communicated to Congress by the President, who said in doing so: "I earnestly recommend legislation under which the government of the islands may have authority to assist in their peaceful industrial development." Thereupon the subject was taken up in Congress, not as

formulated in Senator Spooner's bill of the previous session, but in the form of an amendment to the Army Appropriation Bill, then pending in the Senate. The amendment, as submitted to discussion in the Senate on the 25th of February, 1901, was in the following terms:

"All military, civil, and judicial powers necessary to govern the Philippine Islands, acquired from Spain by the treaties concluded at Paris on the 10th day of December, 1898, and at Washington on the 7th day of November, 1900, shall, until otherwise provided by Congress, be vested in such person and persons and shall be exercised in such manner as the President of the United States shall direct, for the establishment of civil government and for maintaining and protecting the inhabitants of said islands in the free enjoyment of their liberty, property, and religion: Provided, That all franchises granted under the authority hereof shall contain a reservation of the right to alter, amend, or repeal the same. Until a permanent government shall have been established in said archipelago full reports shall be made to Congress, on or before the first day of each regular session, of all legislative acts and proceedings of the temporary government instituted under the provisions hereof, and full reports of the acts and doings of said government and as to the condition of the archipelago and its people shall be made to the President, including all information which may be useful to the Congress in providing for a more permanent government."

Strenuous opposition was made, firstly to the hasty grafting of so profoundly important a measure of legislation on an appropriation bill, and secondly to the measure itself, as being a delegation of powers to the President which did violence to the Constitution and to all the precedents and principles of the American government, and also as having objects which would not only do flagrant wrong to the people of the Philippine Islands, but bring dishonor on those of the United States. The military authority already exercised by the

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