The Bureau of Insular Affairs 



2 5 



civil, based upon an act of Qongress, in 

 the place of a government under the 

 code military, deriving its authority 

 from the laws of war, made it necessary 

 to formulate regulations and procedure 

 for the enforcement of numerous pro- 

 visions of congressional enactments af- 

 fecting the Philippine Islands — such, for 

 instance, as the provision of the act ap- 

 proved March 8, 1902, that " all arti- 

 cles the growth and product of the 

 Philippine Islands admitted into the 

 ports of the United States free of duty 

 under the provisions of this act, and 

 coming directly from said islands to the 

 United States for use and consumption 

 therein, shall be hereafter exempt from 

 any export duties imposed in the Philip- 

 pine Islands ; " or the provisions of .sec- 

 tion 8 of the act approved March 2, 

 1903, authorizing the treasurer of the 

 Philippine Islands to accept deposits of 

 Philippine pesos and issue silver certifi- 

 cates therefor. 



In some instances questions have 

 arisen as to the effect on the interests of 

 the federal government of certain legis- 

 lation enacted by the legislative branch 

 of the government of the Philippine 

 Islands — such, for instance, as, What 

 articles intended for the use of the per- 

 sonnel of the army are to be admitted 

 free of duty ? or, What expenditures of 

 the military authorities are subject to 

 review by the auditor of the islands ? 



The establishment of a judicial sys- 

 tem in the Philippines affords a means 

 for the adjudication of litigated ques- 

 tions between the inhabitants and of 

 many questions respecting the jurisdic- 

 tion and authority of the officials of that 

 government. Whenever possible, con- 

 troversies are referred to those tribunals. 

 In some instances questions have arisen 

 affecting the action or authority of offi- 

 cers of the executive department of that 

 government in matters controlled by the 

 discretion of the administrative branch 

 and affecting the administration of civil 

 affairs. These questions are considered 



and determined by the War Department, 

 upon investigation and report by the 

 law officer. 



In general, the numerous questions 

 inevitable from the change in govern- 

 ment have been anticipated and provi- 

 ded for in advance of an actual instance 

 arising, and it is a gratifying fact that 

 few controversies and no serious dis- 

 agreements have arisen, while such dif- 

 ferences of opinion as developed were 

 readily adjusted. The officials of the 

 military and civil establishments in the 

 Philippine Islands have at all times ex- 

 hibited an earnest desire for effectual 

 cooperation and coordination, and that 

 purpose has been promoted by the fact 

 that the Bureau of Insular Affairs, when 

 called upon to investigate controveited 

 questions, has been able to appreciate 

 the point of view of both the civil and 

 military authorities. 



PHILIPPINE ACCOUNTING-AUDITING 



SYSTEM 



There has been a double aspect to the 

 auditing of the accounts of the insular 

 government under the War Department. 

 One is the responsibility of the officers 

 who handle insular funds to the govern- 

 ment of the Philippine Islands, and the 

 other is the responsibility of this gov- 

 ernment to the government at Wash- 

 ington, whose duty it is to see that all 

 the checks and safeguards which Con- 

 gress has placed about the public moneys 

 of the United States have also been 

 applied to the revenues of the islands. 

 One branch of this Bureau is organized 

 and devoted to this work. The rules 

 and instructions governing the auditing 

 system of the Philippines, which prac- 

 tically put into force the accounting and 

 auditing system of the United States, 

 adapted by experience to local condi- 

 tions, with added checks and safeguards, 

 were made here. Under a law of the 

 Philippine Commission which has been 

 ratified and indorsed by act of Congress 

 of July 1, 1902, before mentioned, state- 



