"'Their moans, the vales redoubled to the hills,
And they to Heav'n.'

"The financial problem, which is already commanding the serious attention of the Government, is next in order. How are the great expenditures of the war to be recouped? Shall we, in addition to territory acquired, demand cash indemnity? If the care of these acquisitions is to be as costly as some suppose, it would not be an unreasonable requirement. While we shall lose the revenues derived from imposts upon importations into the United States from these possessions, which were not large, this will be more than compensated by the duties which we can impose upon importations from other nations into them. In making up the estimates of the whole financial situation it will be safe to assume that at first our Government outlays will exceed income; our people, however, will have the profit of furnishing products of the United States to an added population of 10,000,000 to 12,000,000, freed from the duty that we can impose upon the imports of other nations. Of the $10,000,000 in value of imports into the Philippines from all countries, we supplied less than $200,000, while we took from them nearly $5,000,000.

"The interests of the people who gain their living and manual labor are among the first to be considered and jealously guarded. Fortunately the far greater part of these in America are engaged in employments which will be benefited by annexation. A fresh and unrestrained market is to be opened for our products, and the indigenous products of these regions are to be brought here free of duty to give added employment to our factories. No competitions of labor are to arise."

As to our new acquisition of new colonies by the United States, Theodore S. Wolsey, Professor of International Law at Yale University, has this to say, and every word he utters is pregnant with meaning, for no one could be a more capable judge:

"It has already been said that England learned the lesson of the American Revolution, while Spain has never heeded it nor the loss of her own colonies. Yet it really was not until fifty years ago that their methods sharply diverged. As early as 1778 Spain had begun to open her dependencies to Foreign trade, and early in this century they were allowed to trade with one another. So, likewise, although great changes had been earlier made in the English colonies, the spirit of monopoly and of a restrictive policy was in force until about 1815. So far as relates to the evils of the colonial system, then, the two were not very unlike. But into the field of administrative reform and the grant of autonomous powers to her colonies, Spain never has entered. The abuses of the early part of the century characterize also its later years. Discrimination against the native-born, even of the purest Spanish stock; officials who regard the colony as a mine to be worked, not a trust to be administered; forced dependence upon the mother country for manufactures, even for produce, so far as duties can effect it; self-government stifled; representation in the Cortes denied or a nullity; a civil service unprogressive, ignorant, sometimes corrupt—compare these handicaps with the growth, the prosperity, the independence, above all, the decent and orderly administration, of the colonies of England. One of the wonderful things in this half century is that army of British youth, with but little special training or genius, or even, perhaps, conscious sympathy for the work, learning to administer the great and growing Indian and colonial empire honestly and wisely and well, with courage and judgment equal to emergencies, animated by an every-day working sense of duty and honor, but not very often making any fuss or phrases about it. It is not that Spanish colonial government is worse than formerly, which is costing it now so dear, but that it is no better, while the world's standard has advanced and condemns it. Never yet has Spain looked at her colonies with their own welfare uppermost in her mind. She has never outgrown the old mistaken theories. Her fault is medievalism, alias ignorance.

"It is not a cause for wonder, therefore, quite apart from special sources of discontent, that Cuba, which, by position is thrown into contact with progressive peoples, should chafe at her leading strings. Without reference to the corruption and cruelty, arrogance, injustice and repression which are alleged against the mother country, without rhetoric and without animosity, we may fairly say that Spain is losing Cuba, perhaps all her colonies, simply because she has not conformed to the standard of the time in the matter of colonial government. If England had not altered her own methods, her colonies would long since have abandoned her as opportunity offered. The wonder really is that Spain has held hers so long; for Cuba, at least, owing to its exceptional fertility and position, has relatively outstripped its declining mother.

"There remains the moral of the story.

"If we are not mistaken as to the fundamental causes of Spain's colonial weakness, other colonial powers must take warning also, and the United States in particular, if it yields to the temptations, or, as many say, assumes the divinely-ordered responsibilities, of the situation. For its protective system is a derivative of the mercantile system, as the colonial system was. If it becomes a colonial power, but attempts by heavy duties to limit the foreign trade of its colonies, if it administers those colonies through officials of the spoils type, if it fails to enlarge the local liberties and privileges of its dependencies up to the limit of their receptive powers—if, in short, it holds colonies for its own aggrandizement, instead of their well-being—it will be but repeating the blunders of Spain, and the end will be disaster."

Colonel Hill has declared that the heavy burdens under which the business world of Porto Rico has been staggering in the past have been almost inconceivable. Something of this has already been said, but it may be well to give Colonel Hill's views, as he is certainly a most competent judge. The colonel says that in the first place there has been a tax on every ship that comes in and goes out. There has been a heavy tax on all articles of impost and a special tax on all articles not enumerated in the tariff. In addition to that, an additional tax of ten per cent. on the bill was added. Each hackman who plied between the port and the town of Ponce had to pay a tax of eight dollars a month. No person could write a letter to an official without first going to the collector and purchasing a certain kind of official paper, for which he must pay fifty cents to one dollar a sheet. The price was regulated by the rank of the official who had to be written to.

The effect of all this was rather to increase the number of complaints from citizens than to increase the revenues of the island.