gressional document passed the Senate, it failed to receive favorable consideration in the House owing to the press of business incident to the close of the session, and the statement was, by Senate resolution of March 11, 1903, returned to the Secretary of War and is now filed in this Bureau. In view of the fact that it, in conjunction with that already published in accordance with Senate resolution of May 20, 1900, forms the only comprehensive account of our stewardship in Cuba, I can not too strongly recommend that Congress be again requested to print the same.

From the foregoing statements is compiled for your information the following summary of revenues and expenditures of the island of Cuba during the entire period of American occupation, including the funds collected at Santiago de Cuba prior to January 1, 1899:

Net revenues.

Net expenditures..

Net excess of revenues over expenditures

$57, 216, 604. 61 55, 501, 741.25

1,714, 863. 36

The foregoing net excess of revenues over expenditures, or balance in favor of the Government at the close of American administration, is analyzed in the following consolidated sheet, including balances in the Treasury and in the hands of other fiscal agents certified by the Auditor to the Republic of Cuba, together with all other pertinent fiscal transactions.

Amounts deposited with the treasurer of the Republic of Cuba to the credit of the late military government of Cuba:

By the United States Government in adjustment of overpayment in connection with the account of General Humphrey..

By B. F. Davis, Treasury disbursing clerk

Balance:

Treasurer's balance certified to the succeeding government, the Republic of Cuba....

Other balances certified to the succeeding government, the Republic of Cuba....

Total.

In March, 1903, General Wood, under orders for the Philippines, by direction of the Secretary of War, transferred the business of his office at Washington to this Bureau, together with the records of the auditor for Cuba which had theretofore arrived in Washington. Since that time all other records pertaining to the administrative

bureaus of the government of intervention have been forwarded to Washington by the agent left at Habana, Cuba, for that purpose.

These records include original papers of all kinds pertaining to the administration of affairs, original drafts of important executive orders, contracts, vouchers, paid checks and money orders, customs entries, and all other official papers and documents of the late military government.

Continued requests, especially from officials of the Cuban Government, for information relative to the administration of the military government are received and promptly honored by this Bureau, certified copies of papers, if proper, being furnished.

These records have been deposited in a fireproof building, rented under an appropriation of Congress for their safe-keeping and custody, and occupy a room containing 3,182 square feet of floor space. They are contained in 533 cases and have been classified and arranged for ready reference and are in charge of an organized clerical force.

DISBURSEMENTS ON ACCOUNT OF THE LATE MILITARY GOVERNMENT OF CUBA.

On March 25, 1903, the Secretary of War authorized Maj. Gen. Leonard Wood to direct his aid, Lieut. Frank R. McCoy, to transfer the United States funds then in his possession as disbursing clerk in closing up the affairs of the late military government of Cuba to the disbursing agent of Philippine revenues, who had been designated by the Secretary of War to succeed Lieutenant McCoy.

On March 31 Lieutenant McCoy transferred his balance, amounting to $10,710.79. Of this amount there has been disbursed $9,505.21, leaving an unexpended balance at this date of $1,205.58.

CORRESPONDENCE AND RECORDS.

The performance of the work of the Bureau has involved an enormous amount of correspondence. Although only resorted to when necessary, 1,551 telegrams have been sent during the past year, and during the same period 293 cablegrams were sent and 235 received. It is a fixed practice to use mimeograph letters whenever similarity is justified. Thirty-five such letters and circulars have been and are in current use. About 30,000 letters have been written this year, and it is safe to assume that a greater number of communications have been received. To handle this large correspondence a system of cardindex records is kept, one card being allotted to each subject of correspondence. A similar system of records is also kept of insular reports, both in print and in manuscript, of claims and acts of the Philippine Commission, and of circulars and orders.

At this time there are 10,400 record cards in current use, covered by about 40,000 consolidated index cards.

ORGANIZATION AND PERSONNEL.

The work of this Bureau, other than that of the law officer, is performed by an organization consisting of the following divisions: Correspondence, records, purchasing and disbursing, compilation and

Cuban records, statistics, accounting, Philippine insurgent captured records.

The present force consists of one law officer and a force of 64 clerks, 13 messengers, laborers, and charwomen, paid out of three separate appropriations. There is available and necessary for the present fiscal year $93,265.11 by these appropriations for the employment of clerks, messengers, and laborers. There was actually expended by this Bureau for payment of its personnel during the fiscal year 1903 the sum of $91,939.87. However, in the submission of estimates for the fiscal year 1905 appropriation has been requested for 1 law officer and only 59 clerks and 12 messengers, laborers, and charwomen, aggregating $84,720. It is trusted that the merging and classifying of clerks as recommended, which will remove the present handicap compelling the allotment of work on the basis of appropriation instead of fitness or efficiency of the office as a whole, will so expedite the work as to make possible a reduction both in the number of clerks at present employed and the aggregate salaries paid.

CONCLUSION.

In concluding this report I desire to express my appreciation of the kindly cooperation which I have received from the representatives of the various Departments, bureaus, and offices in Washington with whom the multitudinous duties of this Bureau have thrown me in contact.

I also desire to make mention of the zeal and fidelity displayed by the force of this Bureau as a whole in performing the duties which have been assigned to them. As a rule the work has been performed in a very satisfactory manner. Respectfully submitted.

The SECRETARY of War.

CLARENCE R. EDWARDS, Colonel, U. S. Army, Chief of Bureau.

APPENDIX.

[Extracts from reports, etc., relative to coinage and currency.]

ANNUAL REPORT OF MAJ. GEN. E. S. OTIS, 1899.

The former standard money was gold, consisting of the Spanish “onzas” and the $1, $2, and $4 gold pieces minted in Manila. All of these have been driven out of circulation by the cheaper silver currency. The Banco Español-Filipino is the only bank which has the power to make paper issue. Under Spanish concessions and in return for loans made to that Government it was granted the privilege of issuing its notes amounting to three times its capital stock of $1,500,000, and its paper dollar is considered the equivalent of the Mexican silver dollar. The Spanish Government had representation in the management of this bank, and recently the bank invited the United States authorities here to avail themselves of this privilege by the appointment of an accredited agent, which invitation has been declined, as such action might be construed to be an acknowledgment on the part of the United States of its obligation to recognize under treaty promises the validity of the Spanish concession. The War Department has paid out in Manila United States gold currency in considerable quantities, and it is believed that about $3,000,000 from these disbursements have been hoarded by the inhabitants. The money in circulation, therefore, in the Philippines is less than $30,000,000 of silver, or the equivalent-a very small sum to transact the volume of business; but then a large share of this trade depends upon credit and the exchange of the country's products, so that comparatively little money is required to conduct it. However, during the yearly periods of greatest exportation money to move the crops becomes very scarce and rates of exchange high. Exchange fluctuations were greater in Spanish times than at present, for in 1878 Spain prohibited by decree the importation of Mexican dollars of a mintage later than the date of the decree, except under high duty payments, and gave no substitute. This induced smuggling from the foreign Asiatic ports, and the smuggler was paid a handsome profit for the hazard he encountered. The enterprise was brisk until money became plentiful and exchange had again returned to a nominal figure.

When money was in great demand the price of the Mexican dollar was considerably above its Hongkong value in gold and sold in Manila for from 10 to 15 per cent more than its actual value. The currency of the country still fluctuates daily according to the price of silver in the great money markets of the world and has no stable value. This, however, appears to affect very little ordinary business unless purchases of merchandise and services must be paid for in gold, when these fluctuations enter largely into the calculations of profit and loss. The merchant who buys gold in Manila must pay not only the rate of exchange, but the estimated cost of transporting the metal, and if he wishes to convert gold into silver he must pay high exchange rates and the cost of shipment of the Mexican dollar. The public revenue is paid in the currency of the country, as is most expedient, else daily silver fluctuations would necessitate daily difficult calculations upon the gold value of the money offered at the various public offices; but as it is for the most part expended here for services and on local contract purchases the difficulties attending rates of exchange are not serious. The officers and enlisted men of the Army, who are paid in gold, have been the principle sufferers, as they are obliged to exchange their gold for silver to meet their local payments. The two established banks of the islands other than the Banco Español-Filipino, above mentioned, are branches of the Hongkong and Shanghai Banking Corporation and the Chartered Bank of India, Australia, and China. These have been made depositories of the public civil funds and generally make the money exchanges for the Army. For a long time they allowed but two dollars silver for one in gold, but recently have arranged for receiving gold deposits from disbursing officers on account and to make payments thereon in gold. This entire question of the currency requires the mature deliberation of our most eminent monetary authorities.