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loss was one lieutenant and four men killed, nine wounded and four missing. About the same time, the insurgents driven back from the Laguna de Bay shore occupied Taal (Batangas), where, under the leadership of Miguel Malvar, a small battle was fought in the streets on July 12 and the town was burnt; a troop of cavalry was added to the police force this month, and there was no lack of Filipinos willing to co-operate with Americans for a salary. The backbone of insurgency having been broken, the dollar proved to be a mightier factor than the sword in the process of pacification. Compared with former times, the ex-insurgents found in the lucrative employments offered to them by the Americans a veritable El Dorado, for never before had they seen such a flow of cash. The country had been ravaged; the immense stores collected by the revolutionists had been seized; non-combatant partisans of the insurgent cause were wearied of paying heavy taxes for so little result; treasure was hidden; fields lay fallow, and for want of food Aguinaldo had had partially to disband his army. He told me himself that on one occasion they were so hard pressed for food that they had to live for three days on whatever they could find in the mountains. There were but two courses open to the majority of the ex-soldiers--brigandage or service under their new masters. Some chose the former, with results which will be hereafter referred to; others, more disposed towards civil life, were allured by the abundance of silver pesos, which made a final conquest where shot and shell had failed. Still, there were thousands incognizant of the olive-branch extended to them, and military operations had to be continued even within a day's journey from the capital. A request had to be made for more cavalry to be sent to the Islands, and the proportion of this branch of the service to infantry was gradually increased, for "rounding up" insurgents who refused to give battle was exhausting work for white foot-soldiers in the tropics. In the course of four months nearly all the infantry in the small towns was replaced by cavalry. In this same month (July) American cavalry successfully secured the Laguna de Bay south shore towns which the insurgents had re-taken on the departure of the infantry sent there in January. Many well-to-do proprietors in these towns (some known to me for 20 years), especially in Vinan, complained to me of what they considered an injustice infli
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