people of the islands. [471] The scientific
work of the government was cordinated, and efficiency and economy in
its performance were insured. [472]

Primary and secondary schools were established throughout the islands,
supplemented by trade schools, and a normal school at Manila. [473]
Legislation was enacted, and submitted to the President and to
Congress, covering the disposition of public lands. [474] The purchase
of extensive estates belonging to certain religious orders, and the
sale of their holdings therein to tenants, was provided for. [475]
Fairly adequate legislation for the protection and development
of the forest resources of the islands was enacted. [476] Means
of communication by land and sea were greatly improved, and the
development of commerce was thus stimulated. [477]

It is a noteworthy fact that all of these things were done with a
per capita taxation of about $2.24!

Another fundamentally important aid to the commercial development of
the islands was afforded by a radical reformation of the currency.

The islands under the sovereignty of Spain had their own distinct
silver coinage in peso, media peso, peseta and media peseta pieces.

In 1878 the Spanish government, hoping to check the heavy exportation
of gold currency from the Philippines, passed a law prohibiting the
importation of Mexican dollars, but allowed the Mexican dollars then
in the islands to continue to circulate as legal tender.

When the American troops arrived, there were in circulation the
Spanish-Philippine peso and subsidiary silver coins; Spanish pesos
of different mintings; Mexican pesos of different mintings; Hongkong
dollars, fractional silver coins from different Chinese countries,
and copper coins from nearly every country in the Orient. Although a
law had been passed prohibiting the introduction of Mexican dollars
into the islands, they were being constantly smuggled in. Fluctuations
in the price of silver affected the value of the silver coins, and the
money in common use was in reality a commodity, worth on any given day
what one could get for it. These conditions affected most disastrously
the business interests of the islands. Merchants were forced to allow
very wide margins in commercial transactions, because they did not
know what their goods would actually cost them in local currency upon
arrival. The most important business of the local banks was in reality
that of exchange brokers and note shavers. They ha