s of the army.

Private property taken for the use of the army is to be paid for when
possible in cash at a fair valuation, and when payment in cash is not
possible receipts are to be given.

In order that there may be no conflict of authority between the army and
the navy in the administration of affairs in the Philippines, you are
instructed to confer with the Secretary of the Navy so far as necessary
for the purpose of devising measures to secure the harmonious action of
those, two branches of the public service.

I will give instructions to the Secretary of the Treasury to make a
report to me upon the subject of the revenues of the Philippines, with a
view to the formulation of such revenue measures as may seem expedient.
All ports and places in the Philippines which may be in the actual
possession of our land and naval forces will be opened, while our
military occupation may continue, to the commerce of all neutral
nations, as well as our own, in articles not contraband of war, and upon
payment of the prescribed rates of duty which may be in force at the
time of the importation.

WILLIAM McKINLEY.

EXECUTIVE MANSION, _Washington, May 19, 1898_.

The SECRETARY OF THE TREASURY.

SIR: The destruction of the Spanish fleet at Manila, followed by the
taking of the naval station at Cavite, the paroling of the garrisons,
and the acquisition of the control of the bay, has rendered it
necessary, in the further prosecution of the measures adopted by this
Government for the purpose of bringing about an honorable and durable
peace with Spain, to send an army of occupation to the Philippines for
the twofold purpose of completing the reduction of the Spanish power in
that quarter and of giving to the islands order and security while in
the possession of the United States. For the command of this expedition
I have designated Major-General Wesley Merritt, and it now becomes my
duty to give instructions as to the manner in which the movement shall
be conducted.

It is held to be the right to levy contributions upon the enemy in all
places which may be in military possession by conquest, and to apply
the proceeds to defray the cost of the war, including the expenses of
government during the military occupation. It is desirable, however,
and in accordance with the views of modern civilization, to confine
the exercise of this power, so far as possible, to the collection of
such contributions as are equivalent to the dutie