The Philippine Islands Part 44

7. From this date no one capable of bearing arms is allowed to leave these Islands. This prohibition does not apply to those who are seriously ill.

_Proclamation_

_Spaniards_:--

Between Spain and the United States of North America hostilities have broken out.

The moment has arrived to prove to the world that we possess the spirit to conquer those who, pretending to be loyal friends, take advantage of our misfortunes and abuse our hospitality, using means which civilized nations consider unworthy and disreputable.

The North American people, composed of all the social excrescences, have exhausted our patience and provoked war with their perfidious machinations, with their acts of treachery, with their outrages against the law of nations and international treaties.

The struggle will be short and decisive. The G.o.d of Victories will give us one as brilliant and complete as the righteousness and justice of our cause demand. Spain, which counts upon the sympathies of all the nations, will emerge triumphantly from this new test, humiliating and blasting the adventurers from those States that, without cohesion and without a history, offer to humanity only infamous traditions and the sorry spectacle of Chambers in which appear united insolence and defamation, cowardice and cynicism.

A squadron manned by foreigners, possessing neither instruction nor discipline, is preparing to come to this Archipelago with the blackguardly intention of robbing us of all that means life, honour, and liberty. Pretending to be inspired by a courage of which they are incapable, the North American seamen undertake as an enterprise capable of realization the subst.i.tution of Protestanism for the Catholic religion you profess, to treat you as tribes refractory to civilization, to take possession of your riches as if they were unacquainted with the rights of property, and to kidnap those persons whom they consider useful to man their s.h.i.+ps or to be serviceable in agricultural or industrial labour.

Vain designs! Ridiculous boastings!

Your indomitable bravery will suffice to frustrate the attempt to carry out their plans. You will not allow the faith you profess to be made a mockery of, with impious hands placed on the temple of the true G.o.d, the images you adore to be thrown down by unbelief. The aggressors shall not profane the tombs of your fathers, they shall not gratify their l.u.s.tful pa.s.sions at the cost of your wives' and daughters' honour, or appropriate the property that your industry has acc.u.mulated as a provision for your old age. No, they shall not perpetrate any of the crimes inspired by their wickedness and covetousness, because your valour and your patriotism will suffice to punish and abase the people who, claiming to be civilized and polished, have exterminated the natives of North America instead of bringing to them the life of civilization and of progress.

Filipinos, prepare for the struggle, and united under the glorious Spanish banner, which is ever bedecked with laurels, let us fight with the conviction that victory will reward our efforts; against the shouts of our enemies let us resist with Christian decision and the patriotic cry of "Viva Espana!

_Manila_, _23rd of April_, 1898.

Your General, _Basilio Augusti y Davila_.

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, a.s.suring them that four Spanish battles.h.i.+ps 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 s.h.i.+ps 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 pa.s.sengers for Hong-Kong at fancy rates of pa.s.sage. Refugees offered as much as four times the usual pa.s.sage-money for a saloon berth, and deck-pa.s.sengers 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 cla.s.s 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 s.h.i.+ps 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 ma.s.sacre of the Spaniards.

There were wars.h.i.+ps 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 s.h.i.+ps. 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 s.h.i.+ps entered the bay, pa.s.sing Corregidor Island at 3 a.m. on Sunday, May 1, 1898. The _Olympia_, with Commodore Dewey aboard, led the way. The defenders of Corregidor Island [193] were apparently slumbering, for the _Olympia_ had already pa.s.sed 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 s.h.i.+ps, 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 s.h.i.+ps 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 s.h.i.+ps 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 sh.e.l.l, 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 s.h.i.+ps suffered little or nothing. By 7.30 a.m. the Spanish flags.h.i.+p _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 s.h.i.+ps were decidedly crippled, and the American squadron withdrew to another part of the bay, where, behind a number of foreign war and merchant s.h.i.+ps, they had left two supply transports, from which they took fresh ammunition. Meantime the little Spanish gunboats _General Lezo, Marques del Duero, Manila, Velasco_, and _Argos_, which were quite unfit for action, ran ash.o.r.e at Cavite Viejo. The three sh.o.r.e-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 sh.e.l.l the city. At 11 a.m. the Americans returned in line of battle, and opened fire on the Spanish s.h.i.+ps which still had their flags flying, and cannonaded and silenced the forts at Punta Sangley and Canacao. These operations lasted about one hour. Of the Spanish s.h.i.+ps 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 a.r.s.enal 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 sh.o.r.e-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 Pinas, 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 a.r.s.enal, the Admiral, and the surviving crews of the destroyed fleet. As General Pena 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 Pena 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 _debris_was 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 ash.o.r.e 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. [194] 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-fas.h.i.+oned s.h.i.+ps 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. [195] In the evening the Admiral serenely pa.s.sed 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 a.r.s.enal of Cavite, and the forts of Canacao 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 a.s.sure the Gov.-General that "the enemy should not land in Manila without pa.s.sing 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 Espana_. 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 a.r.s.enal, but, when wanted, each had an important piece missing, so they were unserviceable. About 4.30 p.m. the American s.h.i.+ps 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 cafes, 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 ma.s.s meeting in the _Puerta del Sol_, but the surging crowd started down the _Calle de Sevilla_ and the _Carrera de San Geronimo_ 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 Geronimo_. At that moment the mounted civil guard met and charged the crowd. Many were trodden under foot, and arrests were made. The Civil Governor, Senor Aguilera, followed up in his carriage, and when the military police had dispersed the general ma.s.s, 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:--

It was no caprice of the fortune of war. From the very first cannon-shot our fragile s.h.i.+ps were at the mercy of the formidable hostile squadron; were condemned to fall one after the other under the fire of the American batteries; they were powerless to strike, and were defended only by the valour and b.r.e.a.s.t.s of their sailors. What has been gained by the illusion that Manila was fortified? What has been gained by the intimation that the broad and beautiful bay on whose bosom the Spanish Fleet perished yesterday had been rendered inaccessible? What use was made of the famous Island of Corregidor? What was done with its guns? Where were the torpedoes? Where were those defensive preparations concerning which we were requested to keep silence?

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 circ.u.mstances 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 sh.e.l.led 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-bato 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 Jose Alejandrino and two other rebels accompanied the American expedition to Cavite, where they disembarked. Several days pa.s.sed 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:--

_Compatriots_:--

Divine Providence is about to place independence within our reach, in a manner most acceptable to a free and independent people.

The Americans, not for mercenary motives but for the sake of humanity, in response to the woes of the persecuted, have thought fit to extend their protecting arm to our beloved country, now that they have been obliged to sever their relations with Spain on account of the tyranny practised in Cuba, to the great prejudice of the large commercial interests which the Americans have there. An American squadron is at this moment preparing to sail for the Philippines. We, your brothers, fear you may be induced to fire on the Americans. No, brothers, never make this mistake. Rather blow out your own brains than treat with enmity those who are your liberators.

Your natural enemies, your executioners, the authors of your misery and your woe, are the Spaniards who rule you. Raise against these your weapons and your hatred. Understand well, against the Spaniards; never against the Americans. Do not heed the Governor-General's decree, calling you to arms, even though it cost you your lives. Die rather than be ungrateful to our American liberators. The Governor-General calls you to arms. Why? To defend your Spanish tyrants? To defend those who have despised you and in public speeches called for your extermination--those who have treated you little better than savages? No! no! a thousand times, no!

Glance at history and you will see that in all Spain's wars undertaken in the Far East, Philippine blood has been sacrificed; we were sent to fight for the French in Cochin China over a matter which in no way concerned us; we were forced by Simon de Anda to spill our blood against the English, who, in any case, would have been better rulers than the Spaniards; every year our sons are taken away to be sacrificed in Mindanao and Sulu against those who, we are led to believe, are our enemies when, in reality, they are our brothers, fighting, like us, for their liberty. After such a sacrifice of blood against the English, the Annamites, the Mindanaos, etc., what reward or thanks have we received from the Spanish Government? Obscurity, poverty, the slaughter of our dear ones. Enough, brothers, of this Spanish tutelage!

Note that the Americans will attack by sea and prevent any reinforcements coming from Spain, therefore the insurgents must attack by land.

You will, probably, have more than sufficient arms, because the Americans, having arms, will find means to help us. Wherever you see the American flag, there flock in numbers. They are our redeemers.

Our unworthy names are nothing, but we all invoke the name of the greatest patriot our country has seen, certain in the hope that his spirit will be with us and guide us to victory, our immortal _Jose Rizal_.

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 Pena (lately in command of Cavite), a colonel, several other officers, a civil governor, etc., and some hundreds of volunteers.

Of the neutral wars.h.i.+ps 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 cafes. 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 feted 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 att.i.tude 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 cla.s.ses 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 wars.h.i.+p _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 circ.u.mstances 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 pa.s.sage. In ordinary times fares ranged from P50 saloon accommodation to P8 a deck pa.s.sage. On one trip, for instance, this steamer, with the cabins filled at P125 each, carried 1,200 deck pa.s.sengers (no food) at P20, and 30 deck pa.s.sengers (with food) at P30. Their unsold cargoes on the way in steamers when Manila was blockaded came in for enormously advanced prices. s.h.i.+ploads 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 Dagupan, 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 Espanol 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 Espanol-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 a.s.sumed the _Dictators.h.i.+p_ and issued the following proclamation:--

_Filipinos_:--

The Great North American nation, example of true liberty, and, as such, the friend of freedom for our country oppressed and subjugated by the tyranny and despotism of its rulers, has come to offer its inhabitants protection as decisive as it is disinterested, regarding our unfortunate country as _gifted with sufficient civilization and apt.i.tude for self-government_. In order to justify this high conception formed of us by the great American nation, we ought to abstain from all acts which would destroy that opinion, such as pillage, robbery and every kind of outrage against persons or property. So as to avoid international conflicts during the period of our campaign I order as follows:--