Finance.—The expenditure for gov ernment in 1918 amounted to 57,496,043 pesos, and the receipts were 86,690,105 pesos. The budget estimate was intro duced in 1917. The total amount of money in circulation at the end of 1918 was 131,151,883 pesos. There are on the islands four banks which engage in gen eral banking business. Their combined capital is about three million dollars. The government supports an agricultural bank and postal savings system. These have both been successful.
Religion.—The greater number of peo ple are Roman Catholic. Absolute free dom of worship is guaranteed by the terms of the treaty of peace with Spain made in 1898. Several of the tribes, in cluding the Moros in the south, are pagan.
Government.—The authority of the United States is administered by a gov ernor-general. A complete civil central government was established in 1901, which includes four executive depart ments in charge of secretaries. The work of these is divided into a number of bureaus. Several important measures relating to the administration of the government have been passed since American occupation. An act of 1902 provided for the creation of a legislative lower house called the assembly. An upper house also was created and the two together formed the Philippine Legislature. The Assembly is composed of elected members from the regularly organized provinces, according to their population. The judicial system is also established, corresponding practically to the system in the United States.
History.—The Philippines were discov ered and visited by Spanish and Portu guese explorers. Magellan discovered in March 15, 1521, a group of islands which he named after St. Lazarus. This ex plorer lost his life in a skirmish with the natives a few weeks later on Maetan Is land, near Cebu. The islands were taken into possession by Spain in 1565, and five years following the conquest of Luzon was carried on. In 1571 Manila was founded and rapidly became the seat of Spanish power. The Spaniards remained in possession of the islands practically undisturbed until the Span ish-American War. They made little progress in economic development and their methods with the natives resulted in hitter feeling which gave rise to sev eral attempts to secure independence.
The most important of these was that under Jose Rizal, in 1896. This attempt was put down and conditions were still in a threatening state when the United States went to war with Spain over the independence of Cuba. A fleet under Admiral Dewey was sent at once to the Philippines and the city was surren dered after a brief bombardment on May 17, 1898.
By the treaty of peace with Spain signed on Dec. 10, 1898, the entire archipelago was ceded to the United States. On June 12th, however, an in surrection broke out headed by Emilio Aguinaldo, who proclaimed the independ ence of the Philippine Islands. This re sulted in a protracted series of opera tions in which Aguinaldo was finally captured on March 23, 1901. This put an end to active opposition, although it was necessary to pacify the islands by a series of expeditions, some of which re sulted in considerable losses to American troops. Peace was finally brought about. The first session of the Philip pine Legislature was held on Oct. 15, 1907. Although peace has prevailed in the islands there has been a very definite attempt to bring about their independence by peaceful means, and by propaganda carried on both in the Phil ippines and in the United States. The American Congress has expressed a de sire to give their independence to the Filipinos when they had reached a stage of development which would justify it. Native leaders who desire the independ ence urge that this point has already been reached.
On the whole, the people of the islands have been satisfied with American rule. They have reached the point of economic and intellectual development which they failed to achieve during the hundreds of years of Spanish domination. During the World War a regiment was organ ized and although it was not called upon for active service it was ready to give such services if they were needed.
Population.—The last census of the islands was taken in 1918, when the pop ulation was 10,350,640. Of these about 8,500,000 are Christians, 316,000 Mo hammedan, and 620,000 pagan. The population of Manila, the chief city, in 1918, was 283,613, of whom 245,500 were Filipinos. Exclusive of the Army and Navy, there are about 5,000 Americans in the islands, chiefly in Manila.