116 REPORT OF THE PHILIPPINE COMMISSION. large sums were paid from the insular treasury during the whole of the last fiscal year for the government of the city of Manila. Under the charter of that city, which went into effect on the 7th day of August, 1901, 70 per cent of these expenses will be borne hereafter by the city. The accounts have likewise been complicated by the fact that when the central government passed from that of administration by the military authorities to the civil authorities large sums of money which had been appropriated for disbursements by military officials were returned to the treasury as repayments, thereby largely swelling the apparent receipts, although not affecting the actual income. It was stated in our last report that while October, 1900, was the banner month for revenue, it was probable that after January 1, 1901, the revenue would be likely to materially increase, so as perhaps to equal $1,000,000 a month, United States money. This expectation has been realized, the remainder of the fiscal year showing an average income of approximately $900,000, United States money, per month. During that period, also, legislation was enacted, elsewhere referred to in this report, which diverted a great portion of the internal revenue from the insular treasury to provincial and municipal treasuries, and this introduced another element into the estimates of probable income and expenditures for the coming year. As the law now stands, the income of the insular government is very largely from customs receipts alone, but meanwhile a new tariff has been enacted, as elsewhere in this report detailed, under which it is probable that the revenues from customs service will materially decrease because the rates have been so largely reduced. The effect may not be felt during the first months of the operations of the new law, which goes into force on November 15, 1901, because importers may import large amounts of goods for the purpose of supplying the market at lower prices rendered possible by lower customs duties; but after the market becomes thoroughly supplied with goods introduced under the new tariff, there will be only the ordinary current demand, under much lower rates of duties. It is hoped that the lower prices will enable the people to purchase and consume much more largely, and that the lower duties may in this way to a degree be counteracted; but in any event the available surplus in the treasury is now so large that the government will have abundant means at hand for maintaining itself for the incoming year, irrespective of the revenue that may accrue during the transitional period incident to the new tariff. The country is so rich in resources that if it becomes necessary new plans of internal taxation can be provided to meet all the necessities of economical administration. As elsewhere stated, the subject of internal-revenue taxes is under consideration, and a bill providing for such taxation is in the hands of a committee of the commission. We are able to supplement the reports for the fiscal year ending June 30, 1901, by a statement of the actual receipts and disbursements REPORT OF THE PHILIPPINE COMMISSION. 117 for the first quarter of the fiscal year of 1902, from June 30 to September 30, 1901. The receipts are as follows for the three months: The withdrawals of revenue from the Treasury for disbursements for the same period were as follows: For customs service $103, 826. 68 For internal revenue (the internal revenue having been largely withdrawn from the Treasury and disbursed to provinces appearing under this head as a disbursement).. For post-office........... For miscellaneous purposes For the city of Manila... Total.... 164, 650. 88 39, 011. 88 2, 426, 154. 89 320, 427. 63 3,054, 071.96 On the 30th day of September the balance in the treasury, including Spanish seized funds, amounted to $7,460,175.70, United States money, of which the balance available for appropriation has been elsewhere stated. In view of the foregoing fact, the statement of the budget for the ensuing year must necessarily contain large elements of uncertainty; but making the best use practicable of the materials at hand the following is submitted as an approximate statement for the ensuing quarter: The estimated disbursements for the ensuing quarter are based upon the official estimates, submitted to the commission by all the departments, for appropriations, and are as follows: United States Philippine Commission, executive bureau, Philippine civil-service board, and the insular purchasing agent.. Department of interior... Department of commerce and police. Department of finance and justice Department of public instruction... Miscellaneous, including chief quartermaster and chief commissary of the division.......... Municipality of Manila Total.. $526, 018. 86 116, 736. 82 368.456.55 299, 883.36 482, 385.00 304, 437. 39 400, 000. 00 2,497, 917.98 118 REPORT OF THE PHILIPPINE COMMISSION. Included in these disbursements are $441,115.16 for the insular purchasing agent; for native scouts, approximately $250,000, and for extraordinary supplies and the purchase of launches, $18,000. The disbursements to the insular purchasing agent will all be reimbursed, and the sum included for native scouts will only in small part be needed, in view of the pending enlistment of these scouts into the United States service. These items aggregate $709,115.16, which are not properly disbursements for current expenses. Deducting this aggregate, $709,115.16, from the aggregate estimate of expenditures for the quarter, we have a net estimate of expenses for the quarter of $1,788,802.82. The total estimated income for the quarter being $2,557,500 and the total estimated disbursements being $1,788,802.82, the apparent surplus for the quarter is $768,697.18. It is hoped that the remaining quarters of the fiscal year will show as favorable a balance in favor of receipts, leaving a substantial sum, aside from the present available surplus, for permanent improvements. We inclose copy of the report of the insular treasurer for the fiscal year ending June 30, 1901, together with the exhibits thereto annexed, which is marked Appendix X, and the report of the collector of customs of the islands and of the chief port for the same period, which is marked Appendix Y. BUDGET FOR THE CITY OF MANILA. The budget for the city of Manila is exceedingly difficult to state. The city has been under the operation of its charter for less than two months. Its land values for the purposes of taxation have not yet been ascertained, nor are its other sources of income yet known with certainty. The expenses of the city under the administration of the provost-marshal-general were very large, and the accounts were kept in such manner that it was impracticable to distinguish with clearness the expenditures that were purely for the benefit of the city and those that were for the benefit of the military government at large. It appears from the report of F. G. Downey, major and paymaster, U. S. A., chief of the department of receipts and disbursements in the provost-marshal's office, copy of which is hereto annexed and marked Appendix GG, that the total expenditures in his department for the last fiscal year were $1,626,107.81, of which $288,423.11 was for special improvements, $164,964.52 for insular purposes, $33,823.13 for military purposes, and $1,139,092.05 for current city expenditures, while the total income of the city was $434,880.38, all in money of the United States; but during that period large sums collected in the city as internal revenue were treated as insular receipts and not as city income. Thereafter such receipts inure to the city treasury. The income and expenditures under the Spanish régime were very much less than under the American, but under the latter the streets have REPORT OF THE PHILIPPINE COMMISSION. 119 been cleaned and macadamized, great sums have been expended in the health department in improving the sanitary condition of the city, large salaries have been paid, and in every respect far more efficient service has been rendered. The following budget, showing the estimated receipts and disbursements for the fiscal year ending June 30, 1902, has been prepared by the municipal board of the city and undoubtedly furnishes the most satisfactory data available: Estimate of receipts and expenditures of the city of Manila from August 7, 1901, to June 30, 1902. |