is redeeming Philippine sugar from the evil reputation which the " muscavado " sugar formerly bore. Corn is raised chiefly in Cebu, where the soil is especially fitted for it, and where this grain, instead of rice, is the chief crop. Tobacco is raised especially in Luzon and Cebu, the product of the Cagayan valley in Luzon being that most esteemed. Cacao comes chiefly from the provinces of Albay and Camarines in Luzon; coffee from Mindoro I. and the Mountain province (Luzon) ; and maguey (introduced from America) from Cebii and the province of Ilocos Sur (Luzon). An effort is being made to encourage the raising of sisal instead of maguey, the former being the better fibre. Abaca is a natural monopoly in the Philippine Islands, for it can be grown commercially nowhere else. It is grown in many of the islands, but in recent years extensive plantations have been laid out in Mindanao, where the constant moisture needed for its growth is afforded. For many years, this fibre formed one-half the exports from the islands, and is still one of the leading exports. The export of 89,438 metric tons in 1900 rose to 164,754 tons in 1910, and to 165,129 tons in 1918. Exports for
1919 fell to 131,898 tons valued at $26,861,526, while exports for
1920 were 139,250 tons valued at $35,862,000. The timber resources are important, virgin forests covering about 40,000 sq. miles. About 99% of all timber lands belong to the Government. Much of the timber consists of valuable hard woods. Timber land is not sold, but is developed under the licence system, small operators being granted a licence for one year, and large operators for 20 years. During 1919, 2,950 licences were issued, some of which were for gathering firewood. About 100,000,000 bd. ft. of lumber is used annually in the Philippines. Exports of lumber in 1918 were 4,178,- 520 bd. ft., valued at $219,397, and in 1919, 4,503,304 bd. ft., valued at $259,592. Modern forest products include charcoal, nipa, from which sugar and alcohol are made, various rattans and fibres, copal, tan barks, dyewoods, gutta percha and rubber, paper pulp, a soap bark, pili nuts, wax, wood-oil and medicinal plants. A school of forestry is maintained by the Government in which up-to-date, scientific lumbering instruction is given. The chief animal is the carabao or water buffalo, of which there were 1,047,164 in 1913 and 1,271,208 in 1917. Other domestic animals for these two years numbered respectively: cows, 41 8, 1 14 and 603,107; horses and mules, 179,089 and 214,204. During most years of American occupation, the carabao was assailed by rinderpest, and the archipelago in 1920 was slowly recovering from its effects. The heavy mortality of carabao hampered agriculture, especially the cultivation of rice which was much retarded at times. The Government employed various methods in its efforts to eradicate the disease, including inoculation with a special serum, strict quarantine, and even the killing of whole herds.
Minerals. Mineral products include gold, silver, iron, copper, manganese, coal, petroleum, shale, sulphur, asphalt, asbestos, clay products, lime, sand and gravel, stone, salt, and mineral waters. The total value of the mineral output in 1907 was $117,046; in 1917. $3,018,225; and in 1918, $3,276,677. Between July I 1902 and Dec. 31 1918, 10,943 mining claims were taken out, of which 6,683 were for gold, 1,893 f r petroleum and 607 for copper. The gold output in 1908 was valued at $217,250; in 19 13 at $868,362; in 191 7 at $1,408,309; in 1918 (from 24 mines) at $1,287,985 and in 1919 at $ l >39<7 2 4- Iron-ore deposits in Surigao province, estimated to con- tain about 500,000,000 metric tons, with 45 to 50% iron, have been reserved for the Government. Other rich deposits are said to exist in Bukidnon province in Mindanao. The manufactured iron all came from the mines of Angac in Luzon and was chiefly used for the making of plough points. Copper is found especially in Luzon at Mancayan, where it has been mined and smelted many years by the Igorot by primitive methods. Deposits of coal are found in many localities, although much of it is lignite. Attempts have been made to develop the deposits in the eastern part of Batan I., and in 1920 the Philippine Coal Mining Co. was said to be producing about 300 tons daily. In 1919 the output was 32,892 metric tons, valued at $411,000. Much attention has been given to the development of the coal deposits by the Government, and no little money was lost, but the industry seems at last to be on a good basis. Deposits of fair steaming coal are said to cover 58 sq. m. and to contain 61,788,000 metric tons. The National Coal Co. was organized in 1919, with Government capital, to exploit Government deposits.
Manufactures. The Philippines have passed beyond the initial stage of manufacturing, although it is probably true that the manu- facturing industries will long be limited in number. Embroideries and laces, the making of which has been fostered by the Bureau of Education as well as by some private schools, find a ready market, and during the World War when Belgium and Switzerland were un- able to supply their markets, demand for the Philippine product was stimulated. The industry is still largely one of the home. Rope is made from abaca, both by the old rope-walk method and by modern machinery. Much of the abaca is stripped! by machinery, although fibre cleaned carefully by hand is still the best. Saw-milling is increasing in importance, some of the mills being equipped with modern machinery. In 1910 there was only one sugar " central " in the archipelago for the production of centrifugal sugar. In 1920 there were 28, and the reputation of Philippine sugar was rising in consequence. The war gave a great stimulus to the expressing of
coco-nut oil, because of the impossibility of obtaining sufficient ship- ping for the export of the bulky copra. There were in 1920 more than 30 oil-mills, which produced over 100,000 tons of oil, the value of the product having increased in five years from about $1,000,000 to about $30,000,000 and furnishing about one-fourth of the export trade of the islands. The Philippines are the third producing coco- nut region in the world, there being over 800,000 ac. with about 68,- 000,000 trees, of which some 40,000,000 were bearing in 1920. The output of cigars in 1910 was 285,561,328; in 1913, 282,096,996; in 1918, 367,022,982 and in 1919, 517,343,450. The output of cigarettes for the same years was respectively 4,173,507,249; 4,384,807,247; 4,720,005,675 and 5,203,331,200. In 1918 there were 82 factories manufacturing cigars and 23 manufacturing cigarettes. In 1916 a tobacco inspection law was enacted by the Philippine Legislature providing for the improvement of the leaf and for inspection of leaf tobacco and of manufactured products, and prohibiting export to the United States unless certain fixed standards were met. In 1918 there were 10,583 factories in the archipelago, of which 1,047 were in Manila. Of the 182,117 employees, 21,828 were in Manila.
Communications. In 1908 there were only 246 m. of first-class roads and bridges in the archipelago; in 1913, 1,303 m. of the first class; 1,264 m. of the second; and 1,937 of the third; and in 1919, 2,796; 1,235; and 1,984 m. respectively. Third-class roads are as a general rule fit only for carts and animals, and then only during the dry season. In 1919 cost of maintenance of old roads and bridges was $1,959,780. The archipelago has two railway systems, namely the Manila Railroad Co. operating in Luzon, and the Philippine Railway Co. operating in the islands of Cebu and Panay. The first had in 1913517 m. of tracksand in 1918 64001. This company, under contract with the Government, partly completed a line to the summer capital, Bagnio, but could not carry the project to a successful end. In Jan. 1917 the Government of the Philippine Islands purchased the company's holdings and since that period the lines have been undergoing reconstruction. The Philippine Railway Co., an Ameri- can concern, had 60 m. of track in 1910 (the first year of operation), and 133 m. in 1918. Under authority of an Act of Congress, ap- proved Feb. 6 1905, the Insular Government guarantees 4% in- terest for a period not to exceed 30 years on the first lien bonds issued by the Manila Railroad Co. for new construction in southern Luzon, and the same to the Philippine Railway Co. The combined issues of both companies totalled $22,263,000. The lines in south- ern Luzon and those in Cebu and Panay have opened to active trade large stretches of territory and are affecting the industry of their districts. During recent years the number of motor vehicles has increased markedly, and they are now seen in almost all parts of the islands. An up-to-date electric street-railway system is operated in Manila. Post-offices increased in number from 540 in 1908 to 828 in 1918, and municipalities with free delivery serv- ice from 31 in 1908 to 462 in 1918. Telegraph offices (Govern- ment owned and operated) increased during the same period from 161 to 320. The inter-island cables are also owned and operated by the Government. Manila has an efficient telephone service.
Shipf>ing. Manila is the chief port, but the ports of Iloilo, Cebu, Zamboanga, and a few others share to some degree in the domestic and foreign trade. In 1911 there were 906 entries of foreign ships and 854 departures, with net tonnage of 1,849,475 and 1,787,650 respectively; and in 1918, 652 entries and 659 departures, with net tonnages of 1,412,871 and 1,544,648 respectively. The United Kingdom, which had uniformly occupied first place in the total foreign carrying trade of the islands, lost that position to Japan in 1917, but regained it in 1919, when British bottoms carried 525,000 tons. In the latter year, British and Japanese vessels carried 63 % of the total foreign trade. Ships of the United States, which moved only 44,000 tons in 1916, moved 441,000 tons in 1919, while Philippine shipping engaged in foreign trade rose from 80,000 tons in 1916 to 128,000 tons in 1919. In value of cargo, British bottoms led in the import carrying trade up to and including 1917. In that year British ships carried cargoes valued at $25,865,273; Japanese, $18,964,331; and United States, $9,731,816. In 1918, Japanese ships carried import cargoes valued at $29,304,836; United States, $28,041,294; and British, $24,406,231. In the export trade, British bottoms also took first place up to and including 1917. In that year, British ships carried exports valued at $28,903,609; United States, $27,599,076; and Japanese, $24,657,632. In 1918 U.S. vessels carried exports valued at $53,389,398 ; British, $36,093,- 713; and Japanese, $24,544,204. In 1918 ships of the United States took first place in the total value of the foreign carrying trade, moving goods valued at $81,403,692, with the United Kingdom and Japan taking second and third place respectively. In recent years new piers and warehouses have been built in Manila.
Foreign Trade. Imports rose from $29,186,120 in 1908 to $149,- 400,000 in 1920. Exports were $32,601,072 in 1908; $151,100,000 in 1920. The balance of trade was in favour of the Philippines during 1914-8, and in 1920. Import trade with the United States rose from $35,813 in 1874 to $92,289,773 in 1920. Exports to the United States rose from $2,657,333 m '874 to $105,216,263 in 1920. In 1874 tne import and export trade with the United Kingdom was valued respectively at $1,737,487 and $3,032,950; and in 1918 at $2,764,407 and $19,481,698 respectively. Imports from and exports to Japan were valued respectively at $13,104,055 and $7,968,304;
