The following tables give a statement of the business of the civil supply store from its creation to June 30, 1903, and from August 1, 1902, to June 30, 1903:

Statement for period August 1, 1902, to June 30, 1903.

The extensive use of scouts in field service during the last five months and two years' field experience of the constabulary have furnished information on which an estimate of the relative advantages and disadvantages of these two native forces may be made.

I hardly deem it necessary to speak of the expediency, economy, and necessity of maintaining native troops. In former days there were able officers who opposed or doubted the policy of arming Filipinos, but the proven loyalty to the authorities furnishing food, shelter, and clothing, the paucity of desertions, the economy of maintenance, the direct education of the men and its general influence upon the people, and the special fitness of the Filipino for the work required of soldiers in the Philippines have answered their objections.

The Filipinos, like all people, will fight when properly paid, fed, and disciplined, but above all when properly led. This is the keynote to an entirely successful use of Filipinos as soldiers, whether they be employed in this Archipelago or elsewhere. It is therefore of the utmost importance that high-grade officers, thoroughly courageous, upright, sober, intelligent, and energetic, be placed over them. It is folly to assign as officers men unfit for duty with American soldiers, by reason of lacking the qualities above mentioned, to command. The efficiency, loyalty, and 'zeal of constabulary detachments or scout companies are measured by the fitness and character of the officers commanding them, and this is demonstrated daily. In the near or remote future, or whenever legislative or administrative action affecting the native contingent may be under consideration, it is sincerely hoped that this matter may not be forgotten.

As organized and utilized at present the constabulary has greater mobility than the scouts. This is due chiefly to three reasons: First, a greater percentage of officers; secondly, a greater period of field service in small detachments; and, thirdly, greater facility in subsistence. On the other hand, the scouts have been in garrison by whole companies, and have therefore, as a rule, been better drilled and disciplined.

On a recent trip of inspection through the northern part of Luzon I saw the constabulary detachment at Bangued, Abra, under First Lieutenant Knoll, consisting of about 65 men, give the best exhibition of drill, regardless of kind of soldiers, in close and extended order, by vocal commands and by trumpet signals, that has come under my observation in the Philippines.

The insufficiency of scout officers, an average of about one and onehalf per company, is a decided drawback to their efficiency for much of the work now required in the Philippines, where detachments of 30 to 40 men are ordinarily strong enough. Three detachments of 33 men working in supporting distance of each other are more effective than two of 50 men each under similar conditions. Detachments should, however, not be so small as to invite disaster, such as has happened on several occasions during the year. Experience has shown and reasons could be set forth to prove that stations should be under command of officers even if field detachments are not. Owing to shortage of officers, two stations are practically the limit of a scout company, however many men it may have.

As a rule, scouts serve out of the province where enlisted, while the constabulary generally serve in the provinces of their birth. The intimate knowledge of the country and its inhabitants in one case practically offsets the disadvantage of too much sympathy with the people in the other. Experience has not yet shown that the policy of utilizing constabulary in the provinces where born is fraught with the danger suggested above. It happens that where provinces become seriously affected detachments are called in from other provinces, and the possibility of contamination through sympathy or kinship is averted. Recommendations. Under the present system first lieutenants of scouts have no possibility of promotion-a fact that no sound military doctrine can approve. Scout companies operating in the field need, even more than companies of American soldiers, three officers, and while some of the captains might be appointed from first lieutenants of the Army, as now contemplated by law, specially meritorious first lieutenants of scouts should be advanced to captains. When conditions as to order become more favorable, scout companies should be organized into battalions and probably some battalions into regiments.

In frequent cases I have assigned constabulary officers, at the request of scout company commanders, to scout companies for duty, and with good results. When scouts and constabulary are serving together in the field there should be a provision whereby the chief of constabulary could, within his discretion, assign scout officers to command constabulary, and the reverse. This would necessitate a determination of relative rank, which would be comparatively easy by giving precedence of officers of the two services within one grade of each other to the one who had the longest service as recognized by army regulations. This would be only fair to scout officers, whose promotion has not been commensurate with that of constabulary officers. It would make

certain commanders of scout companies (first lieutenants) senior to some captains of constabulary and certain second lieutenants of scouts senior to some first lieutenants of constabulary.

Cost.-I am not prepared to state the annual cost per man of the scouts, but it is doubtless somewhat greater than that of the constabulary, which, taking out expenses not strictly chargeable against the constabulary bureau, is within $250 per man per year.

The six months' appropriation bill appended herewith shows a total of $882,780 for a force of 345 officers, including officers of the telegraph, information, and medical divisions, and subinspectors, and 6,000 enlisted men. There were actually 330 officers and 6,805 enlisted men June 30, 1903. Upon a closer study of the subject the governor and vice-governor deem it expedient not to reduce the number at present, but to await the results of expiration of the two years' enlistment now at hand.

In said appropriation is included $66,000 for the telegraph division, which is not strictly a constabulary charge. The guarding of provincial jails makes a considerable sum that should fall to the provinces, and probably will when local jail guards become more efficient. The expense of supplying the insular and provincial officials with commissaries is also included; and much under the head of transportation is not strictly chargeable to constabulary estimates.

Deduction.-After careful consideration of the organization of the native contingent and of the insular revenues now available for land defense, I believe that the actual system should not be disturbed at the present time. The maintenance of scouts, which can be used in emergencies in any part of the Orient, may justly be considered a Federal asset. If, while so maintained, they can be used by the insular government in preserving order, both governments are the gainers thereby, and the cost does not exceed probably one-third that of the same number of American soldiers. I leave out of consideration, at present, the use of the constabulary outside of the limits of the Archipelalgo, for the simple reason that its services will be continuously required within for some time.

However unusual the present system may be-organization and maintenance of an armed force by one bureau or department for service. under another bureau-and however logically faulty it be from a military administrative standpoint, it is extremely fortunate for the maintenance of order that the chief executive of these islands can call upon the division commander for scouts whenever their services may be required. When the insular revenues will permit, it is believed that all the native troops constabulary and scouts-actually used by the insular government should be paid from insular revenues. When this happens there should be one military head, both branches should be paid and supplied through the same channels, and probably the officers should be interchangeable.

Municipal police. As a rule the police forces of the towns throughout the provinces are inadequate to meet the duties that should be imposed upon them. Exceptions occur where the president is vigorous and active and of a soldierly temperament, and where the teniente of police has some knowledge of drilling and disciplining his men. Without these elements, even when the pay is sufficient (which is rare), municipal forces, if provided with firearms, are a positive disadvantage in that they are a temptation and at times a prey to bands

of ladrones. Where municipalities have manifested a desire to help themselves the senior inspectors have offered them all feasible assistance, but without largely increasing the number of constabulary officers it is not practicable to properly instruct all municipal police even were there a cordial response on the part of the towns.

Act No. 781 was largely based upon the results obtained in the province of Union, where the municipal police are relatively well organized and disciplined under the Senior Inspector Captain Lovejoy of the constabulary, as chief of police of the province, in additition to his other duties. Governor Ortega deserves much credit for the decided success achieved in this province. The provisions of this act are being applied as far as may be to various provinces. It so happens, however, that in disturbed localities where effective municipal police are most needed, constabulary officers are entirely occupied with their specific work, and therefore are unable to devote proper attention to other than their own forces.

The principal value at present of loyal municipal police is in securing information and in reenforcing constabulary detachments; but many instances can be cited where municipal police acting independently have made valuable captures and are doing satisfactory work.

The municipal police forces throughout the islands comprise 10 captains, 171 lieutenants, 688 sergeants, 1,181 corporals, and 7,873 privates, or a grand total of 9,925.

Manila. The efficient work of the police force of Manila, under Captain Harding, has fallen within my observation, and especially that of the detective bureau, under Captain Trowbridge. It gives me pleasure to commend the efficiency of this force, as well as the good field work done by detachments put at my disposition by the chief of police of Manila and commanded by Captains Green and Luthi.

AMERICAN TROOPS.

Without taking into consideration the strategic importance of the Philippines as a military supply depot where troops and war material may be kept for oriental emergencies, I believe that for some time to come the number of American troops to be kept here should be a direct function of the number of guns put into the hands of natives. My views on this subject are expressed in previous reports.

After extensive warfare, however humanely conducted, several years must elapse before there be a mental pacification, and during this period of adjustment to new conditions it is unwise to ignore the great moral effect of a strong armed force above suspicion.

There are at present 14 regiments of infantry, 8 troops of cavalry, 3 batteries of artillery, with the corresponding quota of technical and staff troops, amounting in round numbers to 18,000 men, occupying 70 posts. (Scouts are not included.)

The constabulary strength is 6,805 men, occupying 212 stations.

INSTRUCTION.

A system for examination of constabulary officers was adopted August 16, 1902, since which time 138 officers have been examined, and 23 have failed. The scheme of subjects, with the relative weight given each, comprises spelling, 5; arithmetic, 5; letter writing, 10;

WAR 1903--VOL 7

penmanship, 5; knowledge of paper work, 15; history, geography, and civil government, 10; constabulary and drill regulations, 15; Spanish language and local dialects, 10; general fitness, special consideration being given to sobriety, capacity to command, integrity of character, and previous service, 25.

Officers failing to pass may take a second examination after six months. This examination is not a trivial matter to those concerned, many of whom would make better records did not field service demand practically their whole time. The effects of this requirement are shown by a better class of men presenting themselves for appointment and an improvement of those already in the service. Those officers who are unable to pass the required examination are not necessarily dismissed, but simply mark time in their grades.

An attempt has been made to secure for service as officers good representatives of the best State military schools. This matter has been taken up from Washington by the Chief of the Bureau of Insular Affairs, Colonel Edwards, who anticipates a successful issue.

Telegraph schools.-These are carried on under the auspices of the educational bureau in Manila, Iloilo, Vigan, San Fernando (Union), and San Isidro (Nueva Ecija). Two officers and one operator of the telegraph division and two instructors of the educational bureau are employed as teachers of telegraphy. Although late in establishing these schools the outlook is very promising, notably so in the Ilocano provinces. From last reports there were 250 telegraph pupils at Vigan.

Headquarters troop, Manila.-While the primary object of this organization, now numbering about 225 men, was to create a small available reserve in Manila, not less is its importance as a school of instruction for noncommissioned officers in both mounted and foot service. This organization is composed of representatives from all the provinces and, with the constabulary band, is quartered in the former cavalry barracks of the Spanish Government.

Noncommissioned officers' schools are held at headquarters in each province, and a district school with the same end has been recently established by Colonel Taylor in Iloilo.

In some provinces considerable headway has been made in teaching English to the enlisted men, and in all provinces commands are given in English. Igorrotes and other mountain tribes are, where practicable, enlisted into the constabulary with a view to aiding in their development and education. The success attained in Bontoc has been favorably commented upon by all who have had an opportunity to see the transformation that has taken place.

The northern provinces of Luzon and Mindanao offer large fields for constabulary work in the sense indicated. For this work the nuclei of the detachments must at first be trained men. The number of constabulary to be enlisted in this work will be considerable if all the large non-Christian settlements or rancherias are to be brought duly within the influence of the Government; houses and barracks must be constructed in remote mountainous regions and supplies sent in. Every member of the Bontoc constabulary is Igorrote, but recently clad in only a "G" string and a gaudy cap about 5 inches in diameter and 14 inches deep. The constabulary forces of Lepanto and Benguet are also being gradually transformed and substituted by Igorrotes.