The prelude to the American occupation of Manila was the demand made on Spain by the Government of the United States of America to evacuate the Island of Cuba.

Generations of Spanish misrule in that Island had produced a recurrence of the many attempts to throw off the sovereignty of Spain. In February, 1895, the flag of insurrection was again unfurled, and at Baira a proclamation, claiming independence, was issued at the instance of one of Cuba's most intelligent patriots—Marti. This civil leader, however, died a natural death a few months afterwards, but the chief command of the insurgents in the field was continued by the mulatto Antonio Maceo. The rebellion was assuming a serious aspect when General Martinez Campos, who had been instrumental in duping the Cubans in 1878 by the Treaty of ZanjÓn, was again sent out as Captain-General of the Island. But the Cubans refused to be caught a second time in the same trap. Martinez Campos' theme of “political action combined with military force” held no weight. During his mild rÉgime the insurrection increased rapidly, and in one encounter he himself was very near falling a prisoner. In eight months he was relieved of his post, and General Weyler, Marquis de Teneriffe, who had a reputation for severity, succeeded him in command. He was a man of the Duke of Alba type—the ideal of the traditional Spanish Colonial party who recognized no colonists' rights, and regarded concessions of liberty to the colonies as maternal dispensations to be hoped for only, but never demanded. Antonio CÁnovas, the ultra-Conservative Prime Minister, had declared that so long as an armed rebel remained in the field he would not grant reforms, so the prospect of a settlement of the disputes between the Government and the governed was hopeless during that administration. The duration of the civil war had seriously prejudiced American trade interests; the pursuance of a conflict under the conditions imposed by General Weyler, who caused all non-combatant Islanders to be “concentrated” in places where they were left to starve, aroused the just indignation of America and Europe alike. The hand of the assassin brought the CÁnovas Ministry to an end on August 8, 1897; General Weyler was recalled six weeks later, and the United States Government, which had so repeatedly protested against the indefinite and wanton waste of lives and fortune in Cuba, dictated to Spain a limit to its continuance. After a Conservative interregnum of six weeks under the leadership of General Marcelo AzÁrraga, PrÁxedes Sagasta came into power at the head of a Liberal ministry and with a Cuban autonomy bill in his portfolio. The newly-appointed Gov.-General, Ramon Blanco, Marquis de PeÑa Plata, ex-Gov.-General of the Philippines (vide p. 377)—a more noble and compassionate man than his predecessor—unsuccessfully essayed the policy of coercing the rebels in arms whilst cajoling peaceful autonomists and separatists with the long-talked-of self-government. Nevertheless, the separatist movement had in no way abated when the Autonomy Bill was promulgated, and an insular Cuban Government was formed on January 1, 1898. In the meantime the incident of the blowing-up of the American warship Maine, the cause of which has not yet been made clear to the satisfaction of the world, had further incensed the war party in the United States.1 Autonomy had come too late; examined in detail it was but another form of Spanish dominion, open to almost similar abuses; it was not the will of the people, and it failed to bring peace. The thousands “concentrated” under Weyler's rule still formed a moribund mass of squalid misery which Spain was still unable or unwilling to relieve. America's offer to alleviate their wretchedness materially was received with suspicion, hemmed in with conditions, and not openly rejected for the want of physical power to do so. Three months of insular government and over 200,000 Spanish troops had effected practically nothing; the prospect of peace was hopeless, and the United States of America formally called upon Spain to evacuate the Island. Spain argued the point; America insisted on the course dictated, and sent an ultimatum to Madrid on April 20, 1898, to be accepted or otherwise within three days. The ministers Polo de BernabÉ and General Woodford withdrew from Washington and Madrid respectively, and war broke out between the United States and Spain on Saturday, April 23, 1898.

In anticipation of hostilities an American fleet had concentrated at Hong-Kong. On April 23 Major-General Black, the officer administering the Colony, issued a proclamation of neutrality, and Commodore Dewey withdrew his fleet from British waters to Mirs Bay,2 at that time within Chinese jurisdiction.

It was known in Manila that the hostile squadron was on the way to the Philippine capital. Submarine mines were laid, or said to have been laid, for some old cable was purchased for the purpose from the telegraph-ship Sherard Osborn when the submarine cable was removed from Bolinao and carried on to Manila. Admiral Patricio Montojo went with four ships to await the arrival of the enemy off Subig (Zambales) on the west coast of Luzon. Subig is a fine natural harbour, but with precipitous shores just as Nature has made it. For years the “project” had existed to carry a State railway there from Manila, and make Subig the principal Government Naval Station and Arsenal instead of Cavite. But personal interests and the sloth of the Government combined to frustrate the plan. Under the pressing circumstances the military authorities pretended to be doing something there, and sent up a commission. Admiral Montojo expected to find batteries of artillery mounted and 14 torpedoes in readiness, but absolutely nothing had been done, so he at once returned to Manila Bay, and prepared to meet the adversary off Cavite. In Cavite there were two batteries, with three guns between them, but at the last moment two defective guns were put ashore there from the Don Juan de Austria and two similar pieces from the Castilla.

In Hong-Kong there was great agitation among the members of the Philippine Patriotic League (Junta Patriotica) and the rebel chiefs exiled under the alleged Treaty of Biac-na-batÓ. The League had presented to several European Governments, through its own agents, a sort of Memorandum, to which no official recognition could be given. The leaguers were now anxious to co-operate with the Americans in compelling the Spaniards to evacuate the Archipelago. An influential American in Hong-Kong accepted the honorary post of treasurer of the Patriotic League Fund, but quarrels over the spoil resulted in General Aguinaldo being obliged by one of his ex-ministers to pay him his share, amounting to several thousands of Mexican dollars. Under these circumstances General Aguinaldo and his suite proceeded to Singapore, travelling incognito, so as to avoid any undue interference, and Aguinaldo took the opportunity to explain in certain official quarters the existing conditions in the Philippines. The rebel general opportunely arrived in Singapore at or about the time of the outbreak of American-Spanish hostilities. Certain American authorities in the Far East were desirous of utilizing Aguinaldo's services and prestige with the armed natives to control them and prevent reprisals when the American forces should appear before Manila. It was hoped that, in this way, the lives of many Spaniards in the Islands would be spared. Indeed, it eventually resulted so, for Aguinaldo, with admirable tact, restrained any impolitic movement on the part of his followers during the American operations against the Spaniards. Only one who had lived in the Islands could adequately appreciate the unbounded confidence some 20,000 armed natives must have had in Aguinaldo to have refrained, at his bidding, from retaliating on their old masters. According to El Liberal newspaper of Madrid, dated June 28, 1898 (which quotes from El Dia), the aspirations of the Revolutionary Party would appear to have been, at that date, as follows, viz.:—

From Singapore, General Emilio Aguinaldo returned with his suite to Hong-Kong, where instructions had been given apparently favouring his plans for co-operation in the Islands. Consequent on this, General Aguinaldo and his staff made preparations for proceeding to Manila in an American warship when it should be deemed opportune to do so. About the same time the Philippine Patriotic League issued a proclamation which is too long to reproduce here, as it covers eight folios of print. This document sets forth that whereas the Treaty of Biac-na-batÓ had not been fulfilled by the Spanish Government, the Revolutionists considered themselves absolved therefrom, and morally free again to take the offensive in open warfare for the security of their rights and liberty. But this document does not quote any of the text of the above alleged treaty. Proclamations and exhortations to the rebels were issued with such frequency that it would be tedious to cite them all, but the following is a fair example:—

On the other side, far richer in poetic imagination and religious fervour, is the Allocution of the Archbishop of Madrid-AlcalÁ published in Madrid on the day hostilities commenced. The following extract will suffice to show how the religious sentiment of the people was indirectly appealed to to convince them that Spain was defending a noble cause.

This Allocution calls to mind Spain's last struggle with Mexico. Was it a battle of the saints? The Spaniards relied on Santa Isabel; the Mexicans appealed to Santa Guadalupe, and the latter came out victorious.

In Manila, as the critical day approached, Gov.-General Augusti issued his general order as to special military service and his proclamation to the Philippine people. The latter is couched in vituperative and erroneously prophetic language, but both can be better appreciated from the following translated texts:—

The volunteers and guerilla battalions which had been so recently disbanded by General Primo de Rivera, because they terrorized the peaceful inhabitants, were now publicly thanked and praised for their past services and called upon again to serve their country. The Mayor of Manila issued his own proclamation, exhorting the inhabitants to help the Spaniards against the Americans. Archbishop Nozaleda also made his appeal to the people, assuring them that four Spanish battleships were on their way out (although, as a matter of fact, only one existed, namely, the Pelayo 8,500 tons, built in 1887), and that from direct communication with the Almighty he had learnt that the most Christian Spain would be victorious in the next engagement.

There was a general stampede of those who could get away; numbers of families fled up the Pasig River towards the Lake of Bay. The approaches to Manila from the north were held by the rebels; Cavite Province threw off the cloak of pacification and sent fresh levies to invest the highroads leading from the south to the capital. General Augusti's wife and children, who had been conducted for safety to Macabebe (Lower Pampanga), were kidnapped by the rebels. All Americans (about 25), except one family, took refuge on board foreign ships in the bay. The one exception was a Mr. Johnson, who had been travelling through the Islands with a cinematograph show, and he refused to remove his wife, who had just given birth. The well-known s.s. Esmeralda took on board a crowd of passengers for Hong-Kong at fancy rates of passage. Refugees offered as much as four times the usual passage-money for a saloon berth, and deck-passengers were willing to pay three times the normal rate. The Chinese were leaving the Islands by hundreds by any available opportunity, for they had just as much to fear from the loyal as the rebel faction. The rich Chinese were robbed and the labouring class were pressed into service fit for beasts of burden. Despised by the Spaniards and hated by the natives, their lives were not safe anywhere. Foreign families of neutral nationality sought more tranquil asylum far beyond the suburbs or on ships lying in the harbour. Two days before the Americans arrived a native regiment was suspected of disaffection. The Spanish officers therefore picked out six corporals and shot them forthwith, threatening to do the same on the morrow if the ringleaders were not handed over. During the night the whole regiment went over to the rebels with their rifles and accoutrements. No intelligent European foreigner entertained any doubt as to the result of the coming contest, but the general fear (which happily proved to be unfounded) was that it would be followed by an indiscriminate massacre of the Spaniards.

There were warships of several nations in the bay, and the Spanish fleet was moored off Cavite awaiting the arrival of the adversary's squadron. The Spanish men-of-war, which were always painted white, had their colour changed to dark grey like the American ships. All coast lights were extinguished. The Island of Corregidor and Funta Restinga were hastily supplied with a few 6-inch guns from the Castilla. Punta Gorda, Punta Larisi, the rock El Fraile, and Caballo Island had toy batteries compared with the American armament.

The American men-of-war left Mirs Bay (opposite to Hong-Kong Island) on April 27, under the command of Commodore Dewey, and on the way made a reconnaissance at Subig, but finding no opponent there, they steamed on to Manila. With all lights put out the American ships entered the bay, passing Corregidor Island at 3 a.m. on Sunday, May 1, 1898. The Olympia, with Commodore Dewey aboard, led the way. The defenders of Corregidor Island3 were apparently slumbering, for the Olympia had already passed when a solitary cannon-shot was heard and responded to. Then a shot or two were fired from the rock El Fraile and from the battery of Punta Sangley. The American squadron kept its course in line of battle; the Spanish ships, under the command of Admiral Montojo, who was on board the Reina Cristina, cleared for action, and the opposing fleets took up positions off the north of Cavite (vide plan of Cavite).

After an intimation of “no surrender” from the Spaniards, by a cannon-shot fired from the Fort of Santiago towards the approaching United States fleet, the American ships opened fire, to which the Spanish fleet responded with a furious broadside; but being badly directed it did very little damage. The Don Antonio de Ulloa discharged a broadside at the enemy's ships with almost no effect, and simultaneously the drums were beaten, whilst the officers and crews shouted “Long live the King, Queen, and Spain!” Firing on both sides then became general. The well-aimed shots of the Americans were beginning to tell forcibly against the Spaniards. The Don Juan de Austria advanced towards the Olympia and was met with a shower of shot and shell, obliging her to turn back. The Reina Cristina, seeing the failure of the Don Juan de Austria, steamed full-speed towards the Olympia, intending to engage her at short range, but a perfect hurricane of projectiles from the Olympia made her retreat with her decks strewn with the dead and dying. The Baltimore had one gun put out of action by the Hontoria guns of Punta Sangley, whilst half a dozen men were slightly injured. The Boston also was slightly damaged, but further than that the American ships suffered little or nothing. By 7.30 a.m. the Spanish flagship Reina Cristina was in flames, so a boat was lowered to transfer the Admiral and his staff to the Isla de Cuba. The captain of the Reina Cristina, Don Luis Cadarso, although mortally wounded, heroically commanded his men up to the moment of death. By 8 a.m. the Spanish ships were decidedly crippled, and the American squadron withdrew to another part of the bay, where, behind a number of foreign war and merchant ships, they had left two supply transports, from which they took fresh ammunition. Meantime the little Spanish gunboats General Lezo, MarquÉs del Duero, Manila, Velasco, and Argos, which were quite unfit for action, ran ashore at Cavite Viejo. The three shore-batteries of Fort Santiago, the Luneta battlement, and Fort San Antonio Abad (Malate) respectively continued ineffectual firing towards the American fleet until the Commodore sent a message telling them to cease fire or he would shell the city. At 11 a.m. the Americans returned in line of battle, and opened fire on the Spanish ships which still had their flags flying, and cannonaded and silenced the forts at Punta Sangley and CaÑacao. These operations lasted about one hour. Of the Spanish ships the Castillo, and Reina Cristina were burnt; the Don Juan de Austria was blown up, and the Don Antonio de Ulloa, pierced all over with shot, sank after the action, and about half of her crew which had survived the battle were drowned. Only the two cruisers Isla de Cuba and Isla de Luzon remained in fighting condition, but the position was so hopeless that Admiral Montojo ordered them to run aground in the Bay of Bacoor.

The Americans then opened fire on the Arsenal and Fort of Cavite, which had not a single gun left in place. Soon a Spanish officer, named Lostoa, signalled for a truce to save the women, children, and wounded. An American officer met him and replied that having destroyed the fleet the American mission was ended for the present, and agreed to suspend firing provided the shore-batteries at the river-mouth were silent. General Augusti was consulted as to this condition, and agreed to it. The mail-steamer Isla de Mindanao was aground off Las PiÑas, and being armed as a cruiser the Americans fired on her and she was soon ablaze. There was still another parley with reference to Cavite. The Americans demanded the surrender of the Arsenal, the Admiral, and the surviving crews of the destroyed fleet. As General PeÑa declined to surrender Cavite, the Americans gave the Spaniards two hours to evacuate, under the threat of bombarding Manila if the demand were not complied with. Again the answer was negative, and five hours were allowed so that General PeÑa could consult with the Captain-General. General Augusti having authorized the evacuation, in less than two hours Cavite and the whole isthmus, including San Roque, Caridad, Estanzuela, and Dalahican, were under American control. All the Spanish families returned to Manila by land. The next day (May 2) the dÉbriswas cleared away from Cavite and the environs, and the dwellings were cleansed and put in order for indefinite military occupation.

The evacuation of Corregidor Island was demanded by the Americans, and the 100 men composing the garrison were allowed to depart in boats for Naig on the west coast of Cavite. Their commander, however, surrendered himself prisoner, and went on board the Baltimore with his family. He was at once offered (but wisely refused) his liberty, and later on he was put ashore at Balanga (Bataan).

On the Spanish side the losses in men and officers amounted to about 400 killed. It was a decisive victory for the Americans; the entire Spanish fleet in Philippine waters was destroyed, excepting a few small gunboats stationed about the southern islands.4 After a 15 months' cruise one of these—the Callao—steamed into Manila Bay on May 12 in complete ignorance of what had happened. The Americans fired a warning shot, and ordered her to lower her flag. With little hesitation she did so, in view of the immensely superior force displayed. The vessel became a prize, and the commander a prisoner of war. But he was shortly offered his liberty on parole, which he unfortunately accepted, for the Spaniards in Manila had so lost their heads that they accused him of cowardice in not having fought the whole American squadron! He was actually court-martialled and condemned to death, but afterwards reprieved.

The Spaniards exhibited great bravery in the battle of Cavite, and man for man they proved themselves to be in no way inferior to their opponents. Considering the wretched condition of their old-fashioned ships and armament compared with the splendid modern equipment which the Americans brought, no other result could have been expected. The American losses were seven men wounded, none killed, and only slight damage to one vessel.

Long before sunset Admiral Montojo and his surviving officers found their way to Manila.5 In the evening the Admiral serenely passed the hours in his suburban villa, whilst the Americans were in possession of the Port of Manila, and the stars and stripes floated over the town and arsenal of Cavite, and the forts of CaÑacao and Punta Sangley. So little did the people and the ignorant Spanish priests understand how a modern military occupation was conducted that when Commodore Dewey landed his marines a deputation of friars and nuns met him to humbly crave clemency for the vanquished. The entry of the American squadron, without opposition, into the Bay of Manila, was a great surprise to the inhabitants of the capital. Whilst the women and children were driven off to the suburbs of the city and near-lying villages, male Spaniards, from the highest to the lowest—merchants, State dependents, Spanish troops, and even those native auxiliaries who still remained loyal hastened to assure the Gov.-General that “the enemy should not land in Manila without passing over their dead bodies.” Subsequent facts, however, proved these pompous vows to be merely a figure of speech. From the city walls, the terraces of houses, the church towers, and every available height, thousands of curious sightseers witnessed the brave defence and the complete defeat of the Spaniards. As the American fleet advanced in line of battle a Spanish transport was scuttled at the mouth of the Pasig River to bar the entrance. All the small steamers and sailing-craft in the river moved up as near as possible to the Puente de EspaÑa. The obsolete guns on the Luneta battlement fired a few solitary shots without the least effect; the Fort of Santiago, defending the Pasig River entrance, was almost silent, although guns, said to be over a century old, had been hastily mounted there, notwithstanding the fact that the colonel, who was instructed to have the rust chipped off these ancient pieces of artillery, committed suicide in despair. Not a single torpedo had been brought into action by the Spaniards. There were several in stock at Cavite Arsenal, but, when wanted, each had an important piece missing, so they were unserviceable. About 4.30 p.m. the American ships changed their position, and moved towards Manila City. A formal demand was made on the Gov.-General Augusti to surrender the capital. The British Consul, who had received instructions to look after American interests pending hostilities, served as the medium of communication between the representatives of the conflicting parties. The Consuls had an interview with the Captain-General, who, after a brief consultation with his colleagues, gave the customary Spanish reply to the effect that he would resist to the last drop of blood in his veins. Frequent intercourse took place between the Spanish Gov.-General and the American Commodore through the intermediary of the British Consul. The same afternoon another British, another French, and another German man-of-war entered the Bay. Rear-Admiral Dewey (for he had just been promoted in rank) declared the port blockaded.

On May 2 he demanded to be put in possession of the telegraph-station, and on this being refused he ordered the cable connecting Luzon with Hong-Kong to be cut. The Spanish authorities had just time before this measure was taken to report the bare facts to Madrid by cable. The news produced immense consternation in the Spanish capital. The whole city was instantly in uproar. Mobs of people filled the streets, wildly denouncing the incapability of a Government which could lead them to such disaster. The newspaper offices were thronged. Special supplements were issued as quickly as possible. The cafÉs, clubs, and other public meeting-places were besieged. General Borbon drove out in a carriage from which he harangued the populace, and was, in consequence, sent to a fortress for three months. There was an attempt at holding a mass meeting in the Puerta del Sol, but the surging crowd started down the Calle de Sevilla and the Carrera de San GerÓnimo shouting, “Long live Weyler!” “To the house of Weyler!” They reached his residence, and after a series of frantic vivas for the army, navy, etc., they called on General Weyler to appear at the balcony. But being himself in somewhat strained relations with the existing Government, he did not think it prudent to show himself. Then some one having set up the cry of “Down with the whole Government!” which was responded to with frenzied applause, the rioters set out for Sagasta's house, returning by the Carrera de San GerÓnimo. At that moment the mounted civil guard met and charged the crowd. Many were trodden under foot, and arrests were made. The Civil Governor, SeÑor Aguilera, followed up in his carriage, and when the military police had dispersed the general mass, leaving only here and there a group, the Civil Governor stepped out of his carriage and addressed them. His words were hissed from the balcony of a club, and it was already past midnight when the first outburst of public indignation and despair had exhausted itself. On May 2 the Heraldo of Madrid, calmly reviewing the naval disaster, commented as follows:—

Several merchant vessels were seized in and about Manila Bay, and supplies from seawards were cut off from the city, which was quite at the mercy of Admiral Dewey, who could have bombarded it and forced surrender the same day. But it was not easy to foresee what might follow. Admiral Dewey had full discretion to act as circumstances might seem to guide him, but it was evident that whatever the surrender of the Captain-General of the Archipelago might theoretically imply, a military occupation of Manila was far from being tantamount to possession of the Islands. Hemmed in everywhere on land by the insurgent forces which now occupied and collected taxes in several Luzon provinces, the Spaniards could have been shelled out of the capital and forced to capitulate, or driven to extermination by the thousands of armed natives thirsting for their blood. The Americans had, consequently, a third party to consider. The natives' anxiety to oust the Spaniards was far stronger than their wish to be under American, or indeed any foreign, control. But whilst a certain section of the common people was perfectly indifferent about such matters, others, wavering at the critical moment between their opposition to the Spaniards and repulsion of the foreign invader, whoever he might be, proclaimed their intention to cast in their lot with the former. Lastly, there was Aguinaldo's old rebel party, which rallied to the one cry “Independence.” “Nothing succeeds like success,” and if the rebel version of the alleged Treaty of Biac-na-batÓ had been fulfilled in the spirit, no doubt Aguinaldo would have been unanimously revered as a great reformer. But the relinquishment of the strife by the leaders, the money transaction, and the immediate renewal of Spanish severities, together created an impression in the minds of the rebel rank-and-file that, in some way, their general welfare had been sacrificed to personal interest. It was doubtful, therefore, how Aguinaldo would be received on his return to the Islands. With the object of investigating the feelings of the old rebel party, the leader JosÉ Alejandrino and two other rebels accompanied the American expedition to Cavite, where they disembarked. Several days passed in convincing the rebels of Aguinaldo's good faith in all that had occurred, and in the meantime Aguinaldo himself arrived on May 19 with 12 other rebel leaders in the American despatch-boat Hugh McCulloch. It yet remained doubtful whether he still held the confidence of the rank-and-file; but when he at length landed at Cavite, his old companions-in-arms, and many more, rallied to his standard with the greatest enthusiasm. The rebels at that date were computed to number 30,000, and Aguinaldo, on taking the command, declared himself Dictator. Aguinaldo was, naturally, at that period, on the most amicable terms with Admiral Dewey, who allowed him to have two modern field-pieces, 500 rifles, and 200,000 rounds of ammunition, enjoining on him the strict observance of his engagement to repress reprisals against the Spaniards.

To prepare the natives for the arrival of the Americans, Emilio Aguinaldo sent over in advance of the American Fleet the following exhortation:—

Cavite being occupied by the American forces, foreign Manila residents were permitted to take refuge there, for no one could tell when the Spaniards would be forced to capitulate, or what might happen if they did. Meantime the rebels had cut off, to a considerable extent, but not entirely, supplies of food to the capital, which was, however, well stored; and at no time during the three and a half months' siege was there a danger of famine among the civilian population, although prices of commodities gradually advanced to about double the normal rates. Even the hotels in the city only charged double prices. The Spanish troops fared far worse; their condition became more and more deplorable. All were badly and insufficiently fed, as much from disorganized commissariat arrangements as from actual want of supplies. The latest arrivals of youthful raw recruits particularly felt the pangs of hunger, and as the swarming rebels took one outpost after another from its emaciated defenders and raided the adjacent provinces, the Spanish prisoners in their hands (soldiers, friars, and civil servants) reached the figure of thousands. Among them was Brig.-General Garcia PeÑa (lately in command of Cavite), a colonel, several other officers, a civil governor, etc., and some hundreds of volunteers.

Of the neutral warships in the bay, Germany had sent the largest number, and the actions of their commanders caused much anxiety to the blockading forces. In the city the German Consul made little secret of his sympathies for Spain, and was in frequent consultation with the Captain-General. German and Spanish officers fraternized freely in the streets and cafÉs. On May 18 a German steamer, with cargo and provisions, was reported outside Manila Bay, but her entry into the port was forbidden by the Americans. Later on the commander of a German man-of-war and his staff were received and fÊted by the Captain-General. These German officers were invited to a picnic at San Juan del Monte accompanied by several general and other high Spanish military officers. The German commander's post-prandial oration at the feast was much commented upon, for he is said to have declared (presumably on his own responsibility) that so long as William II was Emperor of Germany the Philippines should never come under American sway. The party then rode back to Manila, watched by the rebels, who were too wise to intercept them and so jeopardize their own cause by creating international complications. There is little doubt that the attitude taken up by the Germans nurtured the hope entertained by Spaniards all over the world, that at the last hour some political entanglement between the other Powers might operate beneficially for Spain's interests.

The city and commercial suburb of Binondo wore their usual aspect, although trade was almost at a standstill. The undisguised sympathies of Great Britain for America revived the long dormant feeling of distrust and ill-will towards the British residents, which now became so marked that the Captain-General issued a proclamation commanding due respect to be paid to neutral foreigners. Even this did not prevent a Spanish officer spitting in the face of an Englishman. Indeed, at any time, there was far more danger to all civilian classes from the Spanish soldiery than from the rebels, who were strictly enjoined by Admiral Dewey not to attempt to enter the city. Had they done so, certainly their choicest prize would have been the Archbishop Nozaleda, who, well aware of this, escaped, long before the capitulation of the city, to Shanghai on board the German warship Darmstadt.

The volunteers, too, were constantly giving trouble to the Spanish authorities, from whom they demanded their pay, and once when this was refused they threatened to seize the stores.

Although trade in and with Manila had been more or less suspended, and at intervals absolutely so, since the great naval engagement, just a few profited by the circumstances of war. One British firm there, figuratively speaking, “coined” money. They were able frequently to run a steamer, well known in Chinese waters (in which I have travelled myself), between Manila and Hong-Kong carrying refugees, who were willing to pay abnormally high rates of passage. In ordinary times fares ranged from ?50 saloon accommodation to ?8 a deck passage. On one trip, for instance, this steamer, with the cabins filled at ?125 each, carried 1,200 deck passengers (no food) at ?20, and 30 deck passengers (with food) at ?30. Their unsold cargoes on the way in steamers when Manila was blockaded came in for enormously advanced prices. Shiploads of produce which planters and native middlemen were glad to convert into pesos at panic rates were picked up “dirt cheap,” leaving rich profits to the buyers. When steamers could not leave Manila, a Britisher, Mr. B——, walked for several days under the tropical sun to embark for Yloilo with trade news, and steamers were run at high war rates in and out of Borneo, Hong-Kong, and the Philippine southern ports. One British firm obtained a special licence to run a steamer between Hong-Kong and the port of DagÚpan, hitherto closed to foreign traffic. These were, naturally, the exceptions, for, upon the whole, the dislocation and stoppage of trade entailed very serious losses to the general body of merchants. A few days after the bombardment of Cavite the natives refused to accept the notes of the Banco EspaÑol Filipino (the Spanish bank), and a run was made on the bank to convert them into silver. However, the managers of the Hong-Kong and Shanghai Banking Corporation, and the Chartered Bank of India, Australia, and China, came to the rescue of the Banco EspaÑol-Filipino and agreed to honour the paper issue in order to check the scare. The three banks thereupon opened their doors and satisfied the note-holders, ordinary business being, meanwhile, suspended.

Aguinaldo had not only been busy organizing his forces, but had, in several engagements with the Spaniards, driven them back with loss, made prisoners, and replenished his own armouries. He then assumed the Dictatorship and issued the following proclamation:—