d a market. In 1896 the coal imported from Newcastle (New South
Wales) alone amounted to 65,782 tons; in 1897 to 89,798 tons. A small
proportion of this is employed in the forges, foundries, and a few
steam-power factories, most of them situated around Manila, but by
far the greater demand is for coaling steam-ships. Since the American
occupation the increase of steam-shipping and the establishment
of ice-plants all over the Colony have raised the consumption of
coal. Wood fuel is still so abundant in rural districts that coal
will probably not be in general request for the steam sugar-mills
for many years to come.

Australia, Great Britain, and Japan supply coal to this Colony;
in 1892 Borneo traders sent several cargoes of inferior product to
Manila; nevertheless, local capital has been expended from time to
time in endeavours to work up the home deposits.

Philippine coal is more correctly speaking highly carbonized lignite
of the Tertiary age, and analogous to Japanese coal. Batan Island,
off the south-east coast of Luzon Island, is said to have the finest
lignite beds in the Archipelago.

The island of Cebu contains large deposits of lignite. The mines
of Compostela are estimated to be very rich in quantity and of
medium quality. The late owner, Isaac Conui, for want of capital,
was unable to develop them fully. Transport by buffalo-carts from
the mines to the coast was very deficient and costly, and Conui,
who was frequently my guest in Manila in 1883, unsuccessfully
sought to raise capital for constructing a line of railway from the
collieries to Compostela village (east coast). They were then taken
up by a Spaniard, with whom the Spanish Government made contracts
for coaling the gunboats. A tram line was laid down to the pits, but
there was a great lack of promptitude in deliveries, and I heard of
ships lying off the coaling-wharf for several hours waiting to _start_
coaling. The enterprise has by no means given an adequate return for
the over P100,000 invested in it up to the year 1897. The coal-mine of
Danao, on the same coast, has not been more prosperous. When I visited
it in 1896 it had not yielded a cent of nett profit. In 1904 I made
the acquaintance, in Cebu Island, of a holder of P47,000 interest
in this enterprise. He told me that he had got no return for his
money in it. He had spent P1,000 himself to have the mine inspected
and reported on. He sent the report to his co-partners in Manila,
and hea