NOTE.-The foregoing is a summary from the recapitulation sheets of monthly reports on Form 3 for all ports of the Philippine Islands.

It is shown that the value of imports for the fiscal year 1903 falls $6,005,192 short of the value shown for 1902. This shrinkage is more than accounted for by the difference in the quantity of silver imported, the importation of silver for 1902 being $8,652,648, as against $1,933,435 for the year 1903, the falling off of silver being $6,719,213, or $714,021 greater than the shrinkage in total values for the year 1903. Import duties for 1903 show an increase of $387,032 over the amount collected during the year 1902. Government free entries and government stores arriving on transports not included in foregoing statement.

The abnormal import values shown for Hongkong in 1902 are explained by the fact that nearly all silver coin came from that port.

IMPORTS BY COUNTRIES.

The United States and England are the two chief countries of import. Both show substantial gains for the year 1903, occupying substantially the same relative position held last year. It should be noticed, however, that government free entries have greatly increased and that a very large per cent of the merchandise entered free of duty by the insular and United States Government comes from the United States; also all supplies brought on United States transports of which no account is taken in customs records

While no exact figures as to the actual value of such merchandise are obtainable, it is safe to state that if the value of such imports were added, the total value of the merchandise coming from the United States would be shown to be more than three times the value of merchandise coming from England, as that country is not represented in this class of imports.

Chief articles of import into the Philippine Islands during the fiscal year ending June 30, 1903, showing quantity, value, and duty.

NOTE.-Government free entries of flour during the year aggregated 1,567 barrels; value, $7,835.

Chief articles of import into the Philippine Islands during the fiscal year ending June 30, 1903, showing quantity, value, and duty-Continued.

NOTE.-Government free entries of sugar for fiscal year ending June 30, 1903, aggregated 2,443, 138 pounds, approximate value, $97,725. Total value of imports, $35,099,842; aggregate of the foregoing eleven articles, $25,611,260.

Exports and imports during the four fiscal years ending June 30, 1903.

Comparative summary of some of the leading articles imported into and exported from the Philippine Islands during the four fiscal years ending June 30, 1903.

LEADING ARTICLES OF IMPORT.

As will be seen from the foregoing summary, rice takes first place as an article of import. The steady increase in importation has been marked for the past four years, and strikingly so during the last year.

Opium shows a slight decrease, chiefly attributable to the fact that a very material increase in the duty on opium was made during the fiscal year 1902, previous knowledge of which fact caused importers to lay in an unusually large stock under the old rate, thus materially affecting the imports for the first few months of the fiscal year 1903.

It is a fact worthy of special note that for the entire four years opium has stood ahead of wheat flour as an article of import and consumption in the Philippine Islands.

Illuminating oil comes next, with beer in bottles second in importance.

Flour comes exclusively from the United States, as does a large proportion of the illuminating oil and beer in bottles. There has been a considerable decline in the importation of beer, apparently attributable to the reduction of the number of United States soldiers in these islands.

Coal ranks next to beer in bottles as an article of import. It comes almost exclusively from Japan and Australia in the order named." The retail price of coal in Manila is from $8 to $10 gold per ton.

Value of cotton goods for fiscal year 1903, showing countries from which imported.

Value of cotton goods imported into the Philippine Islands during the four fiscal years

ending June 30, 1903.

COTTON GOODS.

Next to rice, cotton goods constitute the chief article of import into the Philippine Islands.

Up to the present time England has practically controlled this trade, holding about one-half the entire traffic against all competitors and gradually gaining vantage ground.

English firms have studied and catered to the wants of the people of the islands, and statistics show that their efforts have been richly rewarded.

Thus far an insignificant share of this trade has been enjoyed by the United States, but there appears to be rich promise of a field for the extension of trade from the United States in the cotton-goods line.

Value of merchandise entered free of duty during the two fiscal years ending June 30, 1903,

by ports.

This statement includes neither insular nor United States Government free entries.

From the foregoing it will be observed that for the fiscal year 1902 more than one-fourth in value of all merchandise imported was entered free of duty, whereas during the fiscal year 1903 only about one-tenth the merchandise came in free of duty.

This statement does not take into account merchandise brought in on United States army transports.

The large free entry list for 1902 is explained principally by the unusually large quantities of Mexican silver money imported that year which enter into the exports of this year, Mexican silver money being a regular commodity and article of commerce here, and one of uncertain value.

Value of merchandise entered free of duty during the two fiscal years ending June 30, 1903, by countries.

Government free entries and merchandise brought on United States army transports not included.

From the foregoing statement it will be observed that Hongkong and the Chinese Empire are the countries of origin of nearly all merchandise entered free of duty, excluding Government free entries, which are not included in this report.

A very marked decrease in the value of merchandise entered free of duty during the year 1903 compared with the previous year will be noticed.

This falling off is chiefly due to the smaller amount of silver coin imported during the year 1903. Another cause is the increase of Government free entries, which include many articles previously imported upon regular free entries.

The large decrease in the importation of silver coin naturally affects Hongkong more than any other country, as nearly all imports of silver coin come from that port. The Chinese Empire furnishes the greater portion of fresh vegetables and considerable quantities of live animals, both of which are free of duty.

Free entries from Australia consist almost exclusively of fresh meat, potatoes, and onions.

WHEAT FLOUR.

Wheat flour is one important article of commerce of which the United States enjoys a complete monopoly in the Philippine Islands. Not a sack of wheat flour is to be found in the Philippine Islands which did not originate in the United States. All the wheat flour used in commercial channels comes from the Pacific coast States-Washington, Oregon, and California.

It is shipped entirely in quarter-barrel sacks, having only a single covering of heavy muslin, and as a rule arrives in exceptionally fine order.

Notwithstanding the fact that freight rates are much lower on flour shipped in barrels, no flour in barrels has been shipped to this market.

The United States Government imports large quantities of flour in army transports, of which the customs records contain no account.

Government flour, as a rule, is in 100-pound sacks, with outside gunny covering. This, like that handled in commercial channels, also comes exclusively from the United States.

RICE FLOUR.

A large quantity of rice flour is imported from Hongkong, it being extensively used for food by the Filipinos and Chinese, and used universally for starching the white garments worn by all people the year round in this climate.

Large quantities of various articles are imported by the United States Government in transports for the use of the Army and Navy, and since almost without exception these articles come from the United States, the customs records contain no account of them.

In considering the volume of trade from the United States this important feature should not be overlooked, since if proper credit were given to the United States for this class of merchandise the United States would be shown to be very far in the lead of any other country in the commerce of the Philippine Islands.

Comparison of the import and export records for the years 1902 and 1903 discloses the fact that there has been a considerable decrease in import values and a considerable increase in export values during the fiscal year 1903.

This is chiefly accounted for by the abnormal increase in the exportation of silver coin during the past year.

The gold value of silver coin imported in 1902 was $8,652,648 as against $1,933,435 imported this year, whereas the exports of silver coin this year aggregate $5,977,741 as against $2,423,200 for the year 1902.

WAR 1903-VOL 7- -41