of trading to American ports during the suspension of hostilities, and that American ships could be granted a similar privilege for Spanish ports.  I understood that on the strength of this cable General Otis intended to allow the United States Consul at Manila to grant these vessels an American Register and then allow them to clear for the other islands.  I do not know what the arrangement, if any was made, in regard to the payment of export duties at Iloilo.  Clearly the hemp cannot pay export duties at both Iloilo and Manila, and the Spaniards are not likely to allow it to leave Iloilo free while we collect an export duty on it at Manila.  Incidentally, this illustrates the complications and loss that will arise if the islands are subdivided.  The principal merchants for all the islands are at Manila, and 90 per cent, of the duties in imports and exports are collected at its Custom House.  A large part of the imports are redistributed through the islands; and all the hemp and sugar, which form the principal exports, come to Manila from other islands.  If, then, we retain Luzon and give the other islands back to Spain or some other nation, that nation will impose import and export duties on everything coming from or to Manila.  The foreign trade of that city as a distributing and collecting point for all the islands will be lost, and its prosperity will be destroyed; moreover, the Government revenue from that trade will be lost.

In view of the fact that Spanish officials declined to co-operate or assist in any way in the American government of Manila, the ease and rapidity with which order was maintained, the machinery of government put in operation and business reestablished, after our entry into Manila is very remarkable.  For every position in the Government service, legal, administrative, financial, mechanical, clerical, men could be found in our volunteer ranks who were experienced in just that class of work at home, and they took charge of their Spanish positions with promptness and confidence.

Even in the matter of language no serious difficulty was encountered, for no less than 30 good interpreters were found in the California and Colorado regiments.

The Military Government as now organized and administered, fulfills all the requirements of preserving order and collecting the public revenue.

The civil courts, however, have yet to be organized, and their organization will present many difficulties.

CHAPTER X

Official History of the Conquest of Manila.

The Pith of the Official Reports of the Capture of Manila, by Major-General Wesley Merritt, Commanding the Philippine Expedition; General Frank V. Greene, General Arthur McArthur, and General Thomas Anderson, With the Articles of Capitulation, Showing How 8,000 Americans Carried an Intrenched City With a Garrison of 13,000 Spaniards, and Kept Out 14,000 Insurgents—­The Difficulties of American Generals With Philippine Troops.