9 8.7 6.8 7.4 2.6 4.7 33.16

With these islands in our possession and the construction of railroads
in the interior of Luzon, it is probable that an enormous extension
could be given to this commerce, nearly all of which would come to
the United States. Manila cigars of the best quality are unknown in
America. They are but little inferior to the best of Cuba, and cost
only one-third as much. The coffee industry can be revived and the
sugar industry extended, mainly for consumption in the far East. The
mineral resources can be explored with American energy, and there is
every reason to believe that when this is done the deposits of coal,
iron, gold and lead will be found very valuable. On the other hand,
we ought to be able to secure the greater part of the trade which now
goes to Spain in textile fabrics, and a considerable portion of that
with England in the same goods and in iron.

Revenue and Expenses.

The budget for the fiscal year ending June 30, 1897, was as follows:

Income.

1st. Direct Taxes $8,496,170
2nd. Indirect Taxes (Customs) 6,200,550
3rd. Proceeds of Monopolies 1,222,000
4th. Lottery 1,000,000
5th. Income of Government Property 257,000
6th. Sundry Receipts 298,300
-----------
Total $17,474,020

Expenses.

1st. General Expenses, Pensions and Interest $1,506,686
2nd. Diplomatic and Consular Service 74,000
3rd. Clergy and Courts 1,876,740
4th. War Department 6,035,316
5th. Treasury Department 1,392,414
6th. Navy Department 3,562,716
7th. Civil Administration 2,195,378
8th. Education 614,395
-----------
Total $17,258,145

The Direct Taxes were as follows:

1st. Real Estate, 5 per cent, on income $ 140,280
2nd. Industry and Commerce 1,400,700
3rd. Cedalas (Poll Tax) 5,600,000
4th. Chinese Poll Tax 510,190
5th. Tribute from Sultan of Jolo