of pesos-(average for eight years period ending 1897)—and exceeding the average annual customs receipts by more than 800,000 pesos. It was much complained of as burdensome and oppressive and presented difficulties in adminis tration and collection. Like the urbana and industrial taxes it was in the nature of an income tax. The disposition at first was to abolish this tax absolutely, but Spanish laws continued in force made necessary a cedula in some form and the Military Government decided, for this reason, to issue the document at the uniform price of twenty cents each. These documents are now termed "Certificates of Registration" printed in English, and are issued throughout the islands. It is suggested that this tax may have been too indiscriminately rejected and that its revival at a much reduced rate, solely, however, as a municipal tax, should be considered.

The foregoing makes it apparent that the internal taxes collected by the Military Government in the Philippine Islands are mainly contributed by large corporations and mercantile firms, the amount paid by smaller concerns being relatively insignificant, and the poorer wage-earner contributing nothing at all except the one peseta for the certificate of registration. If we except persons who have arrived in Manila since the American occupation was established and who are not believed, as a class, to contemplate a permanent residence in the islands, there is no one complaining of the salary tax and of the excepted class the total number complaining has not exceeded twenty. Natives of the Philippine Islands who receive income enough to come under the provisions of the industrial tax cheerfully pay their two and one-half per cent. per annum on salaries received.

The foregoing is believed to be a fair statement of the system of internal revenue applied under American rule. That it is a system in all respects adapted to existing conditions to be retained without amendment, is by no means asserted; but that it is not justly chargeable with the inequalities and oppressive features so frequently claimed by a certain

portion of the public press is perfectly clear. That the Military Government has, to any considerable extent, assumed the role of tax gatherer is to be rejected absolutely.

5.-Land Tax.

There is the authority of the Official Guide of the Phil. ippines for the statement that only about one-ninth part of the territory of the islands has been brought under cultivation and the more ample development of agricultural interests is the declared purpose of numerous protecting laws. No land tax has been applied in the Philippines and in many other respects the agricultural interests have been favored. The laws restricting immigration of Chinese were from time to time relaxed as to certain designated agricultural districts with exemption from taxation for a specified period for such farm laborers as took advantage thereof. The law of agricultural colonies, extended to the Philippines by Royal Decree of the 4th of September, 1884, provides special franchises in favor of said colonies, the most important among which were exemptions from all contributions on property improvements, stock, (cattle, etc.) established by them, and from all contributions on industries carried on within or upon the property of such colonies for the purpose of making the products of the same ready for market; also an exemption from export duties on their products and from import duties on apparatus, machinery, tools and materials necessary for agricultural works and construction of buildings. The objections to the introduction of a land tax were not, however, limited to these considerations alone, but were based also upon the lack of comprehensive surveys and other statistical data necessary to the administration of such a tax, the registers of property being notoriously incomplete. These considerations and the further one that agriculture has perhaps suffered interruption from war conditions more than any other business, explain the lack of initiative thus far looking to the establishment of a system of land taxation.

JUDICIAL DEPARTMENT.

From the date of the re-establishment of the Civil Courts, it was apparent that the laws of criminal procedure should be entirely substituted or radically amended in order to provide a system which would be divested of those harsh and oppressive features so much in conflict with American standards. But the repeal of existing laws and the correlative substitution of a new and complete Code were impracticable in view of the necessity for reasonable expedition and of limiting the changes to the smallest necessary number in order that the Philippine bench, bar and court functionaries should not be disqualified from what was deemed an indispensable participation in the administration of justice. G. O. No. 58, c. s., this office, affecting those more necessary and desirable changes in the laws of criminal procedure, was issued, but the amendments it effected in said laws were really designed as an introduction to, and means of preparation for, such exhaustive changes as seemed unavoidable at a future date.

The changes made by this order may be briefly summarized as follows:

1. The requirement of a specific complaint or information to agree substantially with a prescribed form, charging but one offense, in lieu of the rambling accusation of the Spanish practice, which frequently alleged and was the basis of prosecution for several distinct offenses.

2.-A brief preliminary examination of the complainant and such witnesses as he might produce as a means of determining whether a warrant of arrest should issue, in lieu of the former interminable and secret "sumario."

3. The extension of the rights of a speedy and public trial, to defend in person or by counsel, to be advised of the accusation, to testify in his own behalf, to be exempt from testifying against himself, to confront and cross-examine the witnesses against him, to have compulsory attendance of witnesses in his own behalf and the right of appeal in all casesthis also in lieu of the "sumario," which was conducted in

secret by the judge and prosecuting attorney, witnesses being examined without the presence of the accused or his attorney and the accused even being required to be present without the aid of counsel to testify in the case. At the termination of the "sumario" the accused was either dismissed or the case was placed in "plenario" at which stage the accused was permitted to be represented by counsel and to inspect the depositions taken in the "sumario" with the right of requesting the presence of witnesses for the purpose merely of supplementing the inquisitorial testimony of the secret "sumario."

4. The privilege of demurring to an insufficient complaint, and of pleading a former judgment or jeopardy.

5.The right of joint defendants to be tried separately. 6. The right of a new trial in case of errors of law or newly discovered evidence.

7.—Provisions, of a character similar to those above stated, for trials in justices' courts.

8.The making of all persons, including defendants, competent witnesses, instead of the peculiarly harsh rule of the Spanish law excluding the accused and his relatives and employees.

9. The requirement that evidence should be relevant to the fact at issue and should be the best of which the case might be susceptible, thereby changing the illogical and severe practice of the Spanish courts under which hearsay evidence was freely admitted.

10. Providing that all prisoners should be bailable before conviction, except in capital cases where the proof or presumption of guilt was strong. This was a substantial departure from the Spanish law which permitted bail in the lighter offenses only.

11. Conceding the privilege of the writ of habeas corpus to every person unlawfully restrained of his liberty. The Spanish law apparently has no remedy similar to this writ, the

nearest approach being the clearly inadequate and universally abused requirement for a speedy trial of all prisoners.

12. Safe-guarding the issuance and execution of search

warrants.

Speaking in general terms, it may be said that the operation of the law has been satisfactory in securing to defendants in criminal cases the fundamental rights of Anglo-Saxon criminal law. The writ of habeas corpus has been frequently invoked and under its speedy operation nearly one hundred prisoners, the heritages of the Spanish régime, have been liberated from an unwarranted detention.

Owing to the fact that native judges, prosecuting attorneys and lawyers, without opportunity of preparation, have been called upon to follow a system of procedure radically and widely different from that in which they have been trained, there have been numerous errors and some miscarriages of justice, which, as far as possible, have been corrected on appeal or review by the Criminal Branch of the Supreme Court. With this supervision, with the assistance of American attorneys, and the usually earnest attention of the Courts, the situation is clearing with as great rapidity as, under all circumstances, perhaps, could be expected. While it is true, as suggested, that the majority of the judicial functionaries are studying to comprehend the new system, some have manifested an imperturbable indifference which, if continued, must result in serious disadvantage to the native legal profession.

In the report of the Chief Justice of the Supreme Court, herewith, will be found a reference to the General Orders of the Military Governor's Office re-establishing the Supreme Court and the Courts of the First Instance and of the Peace in several of the provinces and to the progress made in reviving the notarial service and offices of registrars of property. There is likewise considerable data as to the work accomplished by the re-established courts and a review of the several orders of a legislative character affecting the Judiciary, from which I extract the following pertinent comment on G. O. 58, above discussed:

"Lastly, the measure most worthy to be recorded in the administration of justice was the adoption and publication of the new law of crim