PHILIPPINE ISLANDS. 



523 



and the legation in the Chilean capital was abol- 

 ished. In view of the unforeseen advantages Chile 

 had reaped from the province of Tarapaca, which 

 was annexed as the result of the war between the 

 two countries, it was hoped in Peru that Chile 

 would raise no difficulties in the way of the res- 

 toration of Tacna and Arica to Peru under the 

 terms of the treaty of Ancon, concluded in 1883 

 and providing for a popular vote in those prov- 

 inces at the end of ten years to determine whether 

 they should be Chilean or Peruvian. When the 

 stipulated time arrived Peru, on account of do- 

 mestic disturbances, was not ready to act. Chile 

 at that time seemed ready to give up the prov- 

 inces if a satisfactory arrangement could be made 

 .with Bolivia. Later she made public improve- 

 ments in the occupied territories and colonized 

 them, and in the negotiations regarding the con- 

 ditions of the plebiscite and in public declarations 

 of policy has indicated a determination to retain 

 these provinces permanently. Peru wished the 

 question of the plebiscite to be submitted to the 

 arbitration of a disinterested power, but to this 

 the Chilean Government has steadfastly declined 

 to agree. The Peruvian contention was that the 

 original Peruvian inhabitants of the provinces 

 should determine by the votes whether they be 

 Chilean citizens or return to their former alle- 

 giance. The Chilean construction of the treaty, 

 which is the more obvious one, is that Chileans 

 and others who have settled in the territory since 

 its occupation have an equal right with the Peru- 

 vian inhabitants regarding the fate of the prov- 

 inces. 



The internal situation of Peru in 1901 was free 

 from disquietude. President Romana, who at 

 the time of his elevation had to face considerable 

 hostility, succeeded in assuaging opposition by 

 showing a disposition to work honestly for the 

 good of the country. The corrupt practises for- 

 merly in vogue in the departments of the Govern- 

 ment have been in a great measure extirpated, 

 and system and order have been introduced where 

 formerly there was neglect and confusion. The 

 improvements in the spirit and the methods of 

 the internal administration initiated by President 

 Pierola have been faithfully carried on by his 

 successor. The differences between the Peruvian 

 Corporation and the Government have found no 

 solution. In July arms and ammunition were im- 

 ported and the reserves were partly mobilized in 

 view of the critical state of the dispute with 

 Chile, which the Government, with the support of 

 most of the South American republics, wished to 

 bring up before the Pan-American Congress at 

 Mexico. Notwithstanding increased military out- 

 lay, the budget for 1902 was balanced with a 

 surplus of 1,500,000 soles. The accounts for 1901 

 showed a surplus. When Congress met on July 

 29 President Romaiia received assurances of the 

 adhesion of all parties. 



PHILIPPINE ISLANDS, formerly a colony 

 of Spain, annexed to the United States by virtue 

 of the treaty of Dec. 11, 1898. The islands were 

 under military government in the beginning of 

 1901. The military governor was Major-Gen. 

 Arthur MacArthur. There are about 600 islands, 

 of which only 11 are of importance. They extend 

 about 2,000 miles from north to south. There are 

 steep volcanic ranges running through them. The 

 forests cover large areas and there are immense 

 swamps. The climate is moist and trying. 



Area and Population. The archipelago is 

 divided geographically and in respect to the char- 

 acter of the population into the island of Luzon, 

 the Visayan Islands, and Mindanao, with the 

 Sulu Islands. The total area is estimated at 129,- 



853 square miles and the population between 

 8,000,000 and 9,000,000. 'II,, |,o|,ii| :i i ion of Ma- 

 nila, the chief port and politic,! 1 capital. i> about 

 350,000; of Lipa, 40,730; o! I'-anan-. :;'.u;i;o ; ,,f 

 Batangas, 39,3(50; of Laoan^, 37,100; \ (elm, 

 35,240; of Argao, 34,050; of Albay. :>1.0oo- of 

 Taal, 33,380; of Carcar, 30,300; ol f/30,- 



250. The European residents in the }-< 

 estimated at 25,000 in 18!)9. Tlie large- 

 Mindanao, with, an area of 47,804 squat c i,ii!< ,. 

 The estimated area of Luzon is 40,021 square 

 miles. The other large islands are Sainar, Nc 

 gros, Panay, Mindoro, Leyte, Palawan, Celm, 

 Masbate, and Bohol. Leyte, formerly supposed to 

 contain 2,713 square miles, has been found by re- 

 cent surveys to have an area of 4,214 square miles. 

 The area of the Sulu archipelago is 787 square 

 miles. The number of Europeans in the islands, 

 exclusive of the military, is about 25,000. There 

 are about 100,000 Chinese, in whose hands are 

 most of the principal industries. Further Chinese 

 immigration was prohibited early in 1901 for the 

 benefit of native labor and enterprise, although 

 Chinamen are better qualified for manual labor 

 and for carrying on the retail trade. The entire 

 provincial trade has always been in their hands, 

 the indolent habits and untrustworthy character 

 of the natives rendering them unfit for business 

 The occupation of the islands by the Americans 

 led to some white immigration, chiefly from the 

 United States, and many American soldiers on 

 receiving their discharge at the end of the term of 

 enlistment have settled in the country. 



Commerce and Production. The Philippines 

 were populous and productive even before their 

 discovery by Europeans. The chief products are 

 sugar, Manila hemp, tobacco, copra, coffee, and 

 indigo. Rice, flour, wine, textile goods, kerosene 

 oil, and coal are the largest imports. Hemp is 

 exported mainly to the United States and Great 

 Britain, sugar to China, the United States, and 

 Europe, sapan-wood to China and Japan, cigars 

 to Asia and Europe, leaf tobacco to Europe, and 

 copra to Europe. Owing to the blockade of the 

 smaller ports and the retention of produce by 

 the insurgents, the exports were less in 1899 than 

 in 1898. The export of hemp was 167,545,825 

 pounds, against 221,057,813 pounds; of sugar, 

 208,440,940 pounds, against 398,036,241 pounds; 

 of sapan-wood, 760,000 pounds, against 2,614,133 

 pounds; of cigars, which are made in Manila, 134,- 

 849,000, against 129,840,000; of leaf tobacco 116,- 

 962 quarters, against 145,055 quarters; of copra, 

 38,842,933 pounds, against 35,330,133 pounds. 

 Coal is found in many of the islands, and mines 

 close to the sea have been opened in Cebu. Cop- 

 per and silver are found. Iron has long been 

 worked in Luzon. In Cebu a lead-mine is in 

 operation. Petroleum has been discovered in sev- 

 eral of the islands. The gold-fields of Luzon have 

 attracted many American miners, some of whom 

 have made their \vay into the country against 

 the regulations and settled among the natives, 

 while most of them have waited for order to be 

 established and the mineral territory opened for 

 the location of claims. Gold is found in all parts 

 of the Philippines, and the natives have been 

 skilful in washing for gold from early times. 

 Most of the placer deposits have been therefore 

 worked out. In the country of the Igorrotes, in 

 northern Luzon, is an important gold-field which 

 the natives guard from strangers, allowing no 

 one to prospect even for quartz. They extract 

 gold from quartz themselves by a crude process, 

 pulverizing the ore with stone hammers, grinding 

 the crushed quartz, and washing out the gold in 

 coconut shells. In Camarines Norte, southeast 



