MANILA, the chief town of the Phi lippine Islands and capital of Luzon; on the E. side of a wide bay on the S. W. coast of Luzon, 650 miles S. E. of Hong Kong, with which city it has been con nected by telegraph since 1881. It is di vided into two portions by the Pasig riv er. On the S. bank stands the old town (founded in 1571 by Legazpi), surrounded by crumbling walls, with tolerably wide, straight streets crossing each other at right angles. Here are the archbishop's palace, numerous churches and mon asteries, the cathedral, university, Jesuit observatory, arsenal, and government of fices. On the N. bank are the modern suburbs, the commercial and native quar ters. Under American rule the general aspect of the city has greatly changed. Suburbs have been developed along mod ern lines, and many important public buildings have been erected. The most important industries are the manufac ture of cigars, furniture, shoes, and man ufactories of hemp. The harbor has been enlarged and dredged and accommodates the largest vessels. A railway extends
from Manila to Dagupan, a distance of 120 miles. The principal port of the Philippines, Manila has an export trade valued approximately at over $50,000,000 annually, and an import trade that falls but little short of that figure. Sugar, hemp, cigars and tobacco, and coffee ac count for three-fourths of the exports, and cotton goods, rice, wine, silk, flour, machinery and metal goods are the chief imports.
On the morning of May 1, 1898, after war had broken out between the United States and Spain, was fought the battle of Manila Bay. On May 4 Commodore Dewey seized the arsenal. Manila was invested by American troops June 30, 1898, and on Aug. 13, after an organized attack by sea and land and two hours' hard fighting, it surrendered and the flag of the United States was raised over the city for the first time. Pop. (1903) 219,928; (1920) 266,943.