Among the remaining exports of the Archipelago copra is sold to France almost exclusively, the figures for 1903 showing but 27 per cent to have been sent elsewhere, while a market for sugar is found principally in the United States, Japan, and Hongkong, and most of the tobacco goes to Spain, Hongkong, and the United Kingdom. In the five years 1899-1903 the export trade with the United States and other countries under the last-mentioned articles-that is, the Archipelago's entire output of sugar and tobacco during the period of American occupation-was:

These items embrace the leading Philippine products dutiable at United States ports on the basis of 75 per cent of the regular tariff rate levied upon like importations from foreign countries, as provided in the act of March 8, 1902, and by reference to the total value of importations of this class entering the United States from all sources, 1899-1903, inclusive, it would appear that 0.007 per cent of the sugar and less than 0.001 per cent of tobacco and its manufactures came from the islands.

If the total exportation of Philippine sugar had been shipped to the United States it would have amounted to but 0.035 per cent of our imports of that commodity, and had all the tobacco that was exported reached our ports it would have approximated 13 per cent of impor

tations.

IMMIGRATION INTO THE PHILIPPINES.

From a comparative standpoint the immigration for the past year has not been heavy, the arrivals numbering 24,136, as against 30,094 in 1902. In nationality this decrease is noticed principally among the

Americans, but 10,925 coming to the islands in 1903, or practically 5,000 less than during the previous year, and in occupation the latest returns show fewer laborers by 2,303, this class of immigrants aggregating 8,074 in number, while among the various professions and trades of which special account is taken there were slight increases, noticeably in lawyers from 50 to 82, clergy from 87 to 120, merchant dealers and grocers from 2,318 to 3,107, clerks and accountants from 534 to 634, and an increase in the number of farmers from 16 to 208. There were but 310 teachers arriving in 1903, against 794 in 1902. The great majority of American immigrants during the last twelve months, though having professions or other occupations, do not specify them. Of those who did, 299 were teachers, 53 lawyers, 46 physicians, 63 engineers, 192 clerks and accountants, 244 merchant dealers and grocers, and all other occupations 288.

More than one-half of the immigrants, or 12,624 (including 8,321 Chinese), had been in the Archipelago before. Of the 11,512 who entered for the first time, 9,028 were Americans, 466 Chinese, 941 Japanese, 199 English, and 878 other nationalities. Nearly two-thirds of the 8,787 Chinese were laborers and 1,928 merchants.

There were 6,392 illiterates, but this includes 5,611 Chinese, and deducting these the remaining illiterates number but 781, or 5.1 per cent of the total immigrants.

The act of Congress approved April 29, 1902, commonly known as the Chinese exclusion act of 1902, and having for its purpose the extension of the general immigration law so that the same may apply to the island territory under the jurisdiction of the United States, provides under section 4 as follows:

That it shall be the duty of every Chinese laborer, other than a citizen, rightfully in and entitled to remain in any of the insular territory of the United States (Hawaii excepted) at the time of the passage of this act, to obtain within one year thereafter a certificate of residence in the insular territory wherein he resides, which certificate shall entitle him to residence therein, and upon failure to obtain such certificate as herein provided he shall be deported from such insular territory; and the Philippine Commission is authorized and required to make all regulations and provisions necessary for the enforcement of this section in the Philippine Islands, including the form and substance of the certificate of residence, so that the same shall clearly and sufficiently identify the holder thereof and enable officials to prevent fraud in the transfer of the same: Provided, however, That if said Philippine Commission shall find that it is impossible to complete the registration herein provided for within one year from the passage of this act, said Commission is hereby authorized and empowered to extend the time for such registration for a further period not exceeding one year.

Provision is also made by which the immigration of Chinese laborers from such island territory to the mainland of the United States is prohibited, although there is no restriction placed upon their movement from one island to another of the same group.

CARRYING TRADE IN THE PHILIPPINES.

The greater part, or 59 per cent, of the foreign commerce of the Philippines continues to be carried under the British flag, though not to so large an extent as in 1902, when 67 per cent of the combined import and export trade was carried in British vessels.

Including $2,127,359 in gold and silver, and exclusive of Government supplies, the total importations into the Archipelago aggregated $35,099,241 during the fiscal year 1903, of which amount $14,010,890, or 40 per cent, was delivered in British vessels; German, 23.5; Spanish, 19.4; Norwegian, 8.6; American, 2.1, and all other, 6.4 per cent.

The vessels engaged in carrying the import trade for the previous year, amounting to $41,072,738 (gold and silver to the value of $8,930,896 included) show the following ratios: British, 61.5; German, 16.7; Spanish, 16.4; Norwegian, 1.3; American, 1.7, and all other, 2.4 per cent.

Of the $39,668,366 worth of exports, including $6,546,586 gold and silver, shipped in 1903, $30,211,454, or 76.2 per cent, left the islands under the British flag; German vessels carried 5.4 per cent; Spanish, 6.3; Norwegian, 2.9; American, 1.7, and all other, 7.5 per cent, there being but little change over the showing made for 1902.

The value of goods imported frm the United States during 1903, inclusive of coin shipments amounting to $164,862, was $4,108,960, 70 per cent of which was delivered in British, 10 in American, 5 in German, and 15 in all other vessels. In the same year Philippine exports to this country approximated $14,000,000 in value, but 3 per cent coming under the American flag, while practically 90 per cent was brought in British vessels. Although these percentages, as they apply to Philippine commerce with the United States carried in American bottoms, show an improvement over the record for 1902, the relative proportion continues small.

COASTWISE TRADE.

Section 3 of the act of March 8, 1902, reads:

That on and after the passage of this act the same tonnage taxes shall be levied, collected, and paid upon all foreign vessels coming into the United States from the Philippine Archipelago which are required by law to be levied, collected, and paid upon vessels coming into the United States from foreign countries: Provided, however, That until July first, nineteen hundred and four, the provisions of law restricting to vessels of the United States the transportation of passengers and merchandise directly or indirectly from one port of the United States to another port of the United States shall not be applicable to foreign vessels engaging in trade between the Philippine Archipelago and the United States, or between ports in the Philippine Archipelago: And provided further, That the Philippine Commission shall be authorized and empowered to issue licenses to engage in lighterage or other exclusively harbor business to vessels or other craft actually engaged in such business at the date of the passage of this act, and to vessels or other craft built in the Philippine Islands or in the United States and owned by citizens of the United States or by inhabitants of the Philippine Islands.

The application of the provisions of the United States statutes restricting to vessels of the United States both the coastwise trade of the islands as well as that carried on between them and the United States, after July 1, 1904, is a matter of serious moment to the Philippines.

The result in each case would be so different that they will be considered separately.

BETWEEN UNITED STATES AND THE PHILIPPINE ISLANDS.

The latest Philippine returns for the fiscal year 1903, exclusive of supplies carried by the army transport service, disclose the fact that 97 per cent of nearly $14,000,000 worth of Philippine exports to the United States, and approximately 90 per cent of the importations into the Archipelago coming from this country were carried in foreign vessels. Although this showing is an improvement over the record for the previous year the proportion of United States goods transported in American bottoms is inconsiderable.

The following list of American steamers, furnished by the Commissioner of Navigation, are now, or will be before the end of the calendar year 1904, employed in trade between Pacific coast ports and Hongkong:

Some of these vessels already go direct to Manila, and others so prolong their voyage. The American-Hawaiian Steamship Company, the International Mercantile Marine Company, and the Pacific Coast Steamship Company also maintain steamers on the Pacific which are adapted to trade with the Archipelago. An increase in rates or volume of business would be the necessary inducement to have them participate. In other words, on the 1st day of July, 1904, American bottoms on the Pacific would be adequate for all the carrying trade between the islands and ports on the Pacific coast.

It is alleged that in the last few months several considerable shipments of hemp have been made for manufacture of binder twine in Chicago by way of Pacific ports, which manufacturers heretofore received their raw material via Atlantic ports.

On the Atlantic coast are the ports of departure of the AmericanHawaiian Steamship Company's vessels; 10 new steamers of approximately 8,000 to 12,500 tons each ply between New York, San Francisco, and Honolulu. The International Mercantile Marine Company have 6 large steamships. There are also 4 Luckenbachs, with a total of 22,000 tons, and 2 of the Michigan Steamship Company. Large American sailing ships also must be considered which go around the Horn on their 120 days' journey to China and the Orient, and also engage in the South African trade and whose total tonnage is reported as 122,000, but rarely touch at Manila.

Were the insular trade rates high enough to induce American bottoms on the Pacific and the Atlantic not now so engaged to enter the same, it can not be denied that there are sufficient American bottoms at this time to carry such trade.

I am informed that foreign steamers now being utilized for hemp cargoes to New York, Philadelphia, or Boston are of 2,000 to 3,000 tons register, carrying each about 15,000 to 23,000 bales, making deliveries at short intervals, which is important to the merchant in the Philippines and the manufacturer in the United States.

The successful steamship-line bidder for carrying freight, exclusive

of silver, for the Philippine government for this calendar year between New York and Manila, through the Suez Canal, and return, was an English corporation-Funch, Edye & Co., of New York-which has so far handled satisfactorily insular freight from New York to Manila at the approximate sliding scale rate of $5.90 per ton. In the proposals and contract was inserted the following clause:

It is further expressly agreed that if during the period covered by this contract a rate as low as the contract rate is offered by any company to forward insular freight to Manila in American bottoms, the insular government reserves the right to avail itself of such offer.

Not a ton of this freight was carried in an American bottom.
Article IV of the treaty of Paris reads:

The United States will, for a term of ten years from the date of the exchange of the ratification of the present treaty, admit Spanish ships and merchandise to the ports of the Philippine Islands on the same terms as ships and merchandise of the United States.

In the absence of further legislation it therefore might be held that Spanish ships, until April 11, 1909, can enter the ports of the Philippine Islands on the same terms as Americans.

If it be construed that this article gives equal rights with American ships only as to their entrance into the ports of the Philippine Islands, that is, the same port charges, but at the same time does not give equal benefits to Spanish ships clearing from Philippine ports to enter United States ports, in other words, equal terms as to coastwise trade between the ports of the United States and ports of the Philippine Islands, then it is only necessary to analyze the effects of this treaty provision on American bottoms.

It appears that under the Spanish law it is only necessary to pay $5.79 per gross registry ton to acquire Spanish registry, and therefore special treaty privilege could thus be gained by ships foreign to the United States or Spain to participate in that part of this reserved trade until April 11, 1909.

Should the above construction of this article of the treaty obtain, it is not probable that the benefits to be secured will induce any considerable number of foreign tramp ships to acquire Spanish registry, because, while they could go into ports of the Philippine Islands on the same terms as the United States ships, they would have to clear for other ports, like those of the Mediterranean or England, and could not prolong their voyage, except in ballast, to the United States with a return cargo from the Philippines.

It is assumed that this article of the treaty can not properly be construed to confer American coastwise benefits between ports of the Philippine Islands and those of the United States on Spanish ships entering ports of the Philippine Islands and clearing for those of the United States. However, should such a decision be rendered it is believed that this Spanish gross registry ton tax would be quite an inducement for excluded foreign flags to seek the benefits of this reserved trade, and therefore defeat the object of the limit of postponement of the coastwise trade laws in the act of March 8, 1902.

Tonnage rates during the past year from New York to the Philippines have varied from $4 to $7.50. The general cargo rates below $6.50 are the result of a steamship war, probably unprofitable, and no