ing the relative averages of 1890-94. The present
abnormal pecuniary embarrassment of the people is chiefly due to the
causes already explained, and perhaps partly so to the fact that the
P30,000,000 to P40,000,000 formerly in circulation had two to three
times the local purchasing value that pesos have to-day.

The "Cooper Bill," already referred to, authorizes the Insular
Government to issue bonds for General Public Works up to a total of
$5,000,000, for a term of 30 years, at 4 1/2 per cent, interest per
annum; and the municipalities to raise loans for municipal improvements
up to a sum not exceeding 5 per cent. of the valuation of the real
estate of the municipalities, at 5 per cent. interest per annum. For
the purchase of the friars' lands a loan of $7,000,000 exists, bearing
interest at 4 per cent. per annum, the possible interest liability
on the total of these items amounting to about $2,000,000 per annum.

On November 15, 1901, the high Customs tariff then in force was reduced
by about 25 per cent. on the total average, bringing the average duties
to about 17 per cent. _ad valorem_, but this was again amended by the
new tariff laws of May 3, 1905. Opium is still one of the imports,
but under a recent law its introduction is to be gradually restricted
by tariff until March 1, 1908, from which date it will be unlawful to
import this drug, except by the Government for medicinal purposes only.

On August 1, 1904, a new scheme of additional taxation came into
force under the "Internal Revenue Law of 1904." This tax having been
only partially imposed during the first six months, the full yield
cannot yet be ascertained, but at the present rate(P5,280,970.96,
partial yield for the fiscal year 1905) it will probably produce at
the annual rate of $4,250,000 gold, which, however, is not entirely
extra taxation, taking into account the old taxes repealed under
Art. XVII., sec. 244. The theory of the new scheme was that it
might permit of a lower Customs tariff schedule. The new taxes are
imposed on distilled spirits, fermented liquors, manufactured tobacco,
matches, banks and bankers, insurance companies, forestry products,
valid mining concessions granted prior to April 11, 1899, business,
manufactures, occupations, licences, and stamps on specified objects
(Art. II., sec. 25). Of the taxes accruing to the Insular Treasury
under the above law, 10 per cent. is set apart for the benefit
of the several provincial governme