Notwithstanding General Otisʼs oft-repeated intimation of “unconditional surrender” as the sole terms of peace, in October General Aguinaldo sent General Alejandrino from his new seat of government in Tárlac to General Otis with fresh proposals, but the letter was returned unopened. At that time Aguinaldoʼs army was estimated at 12,000 men. The insurgents had taken many American prisoners, some of whom were released a few days afterwards, and, in October, Aguinaldo issued a decree voluntarily granting liberty to all Americans held captive by his people. This resolution, proclaimed as an act of grace, was really owing to the scarcity of food, and for the same reason Aguinaldo simultaneously disbanded a portion of his army.

In the month of December General Lawton led his brigade to the district of Montalbán and San Mateo, a few miles north of Manila, to attack the insurgents. The agreed plan was to make a flanking movement against the enemy on the San Mateo River and a frontal attack immediately the enemy was engaged. The frontal attack was being personally directed by the general, who stood on the high bank of the river. Captain Breckinridge, the generalʼs aide-de-camp, had just been hit in the groin, and General Lawton went to speak to him before he was carried away on a litter. Whilst so engaged, the general threw up his hands and fell without uttering a word. He had been shot through the heart, and died instantly. His body was carried to Manila for public burial, and the insurgents were as jubilant as the Americans were grieved over this sad occurrence. The date was fixed for the interment with military pomp, and immense crowds came out to witness the imposing procession. Some Filipinos, expecting the cortege would pass through a certain street, deposited a bomb in the house of an old woman, unknown to her, but fortunately for her and all concerned, it was not on the route taken. In memory of the late lamented general the present five-peso bank notes bear his vignette.

In 1900 the war of independence began to wane. In January, General Joseph Wheeler left Manila to assume command of the late General Lawtonʼs brigade, and overran the Laguna de Bay south shore towns. Viñan was taken on January 1, but as no garrison was left there, the insurgents re-entered the town when the Americans passed on. The armed natives were, in reality, playing a game of hide-and-seek, with no tangible result to themselves further than feeding at the expense of the townspeople. Aguinaldo was still roaming about central Luzon, but, one by one, his generals either surrendered or were captured. Among these was General Rizal, captured in January. In this month a plot to blow up the foreign consuls was opportunely frustrated. The Chinese General Paua, Aguinaldoʼs brother-in-law, surrendered in March and found shopkeeping in Binondo a less risky business than generalship. In the same month the Manila-Dagúpan Railway was handed over to the companyʼs management, after having been used for war purposes. General Montenegro surrendered in April, and a fortnight afterwards Don Pedro A. Paterno, late President of the Insurgent Congress, was captured at Antomoc (Beuguet district); Generals Garcia and Dumangtay were captured; five officers and two companies of insurgents surrendered in May; and in the same month one Gabriel Cayaban, of Pangasinán Province, was sentenced to five yearsʼ hard labour and a fine of 2,000 pesos for conspiring with guerillas to raise riot. It cannot be said that the insurgents in the field had advanced one step towards the attainment of their object. Manila was simultaneously full of conspirators cogitating over murderous plots against the Americans, and a band of them was arrested in the month of May. The insurgent movement was so far disorganized that it was deemed opportune to entrust natives with police duties, and in June a Philippine cavalry corps was created. Captain Lara, of the native police, took Generals Pio del Pilar and Salvador Estrella prisoners, but was himself assassinated on August 4. General Maximino Hizon[6] was captured at Mexico (Pampanga), and on June 21 the Military Governor published an amnesty proclamation, granting pardon and liberty to all who should declare their allegiance to the United States within ninety days. All who had surrendered and some who were captured took the required oath, and others were coming in. Pio del Pilar was among those who accepted the amnesty a week after its promulgation, but he was again arrested, September 6, for conspiracy. The Amnesty Proclamation was met by a counter-proclamation issued by Aguinaldo, dated August 3, 1900, in which he urged a continuance of the war, and offered rewards for arms. He promised to liberate all prisoners of war who might fall into insurgent hands, on surrender of their arms and ammunition. He would give them money to return to their lines and for petty expenses en route. He would pay 80 pesos for every American rifle brought in by a prisoner, and 20 pesos for any rifle voluntarily brought to a Philippine officer, but the deserter would not be allowed to enter the insurgent ranks.

On June 28 there was an attempted rising in Manila, and Don Pedro A. Paterno was placed under closer guard. In July the insurgents were active in the neighbourhood of Vigan (Ilocos). About 40 volunteer infantry and 60 cavalry went out from Narvican to attack them, and came across a strongly-entrenched position held by about 300 riflemen and 1,000 men armed with bowie-knives. A sharp fight ensued, but the Americans, overwhelmed by the mass, had to retreat to Narvican. The insurgents lost about a hundred men, whilst the American loss was one lieutenant and four men killed, nine wounded and four missing. About the same time, the insurgents driven back from the Laguna de Bay shore occupied Taal (Batangas), where, under the leadership of Miguel Malvar, a small battle was fought in the streets on July 12 and the town was burnt; a troop of cavalry was added to the police force this month, and there was no lack of Filipinos willing to co-operate with Americans for a salary. The backbone of insurgency having been broken, the dollar proved to be a mightier factor than the sword in the process of pacification. Compared with former times, the ex-insurgents found in the lucrative employments offered to them by the Americans a veritable El Dorado, for never before had they seen such a flow of cash. The country had been ravaged; the immense stores collected by the revolutionists had been seized; non-combatant partisans of the insurgent cause were wearied of paying heavy taxes for so little result; treasure was hidden; fields lay fallow, and for want of food Aguinaldo had had partially to disband his army. He told me himself that on one occasion they were so hard pressed for food that they had to live for three days on whatever they could find in the mountains. There were but two courses open to the majority of the ex-soldiers—brigandage or service under their new masters. Some chose the former, with results which will be hereafter referred to; others, more disposed towards civil life, were allured by the abundance of silver pesos, which made a final conquest where shot and shell had failed. Still, there were thousands incognizant of the olive-branch extended to them, and military operations had to be continued even within a dayʼs journey from the capital. A request had to be made for more cavalry to be sent to the Islands, and the proportion of this branch of the service to infantry was gradually increased, for “rounding up” insurgents who refused to give battle was exhausting work for white foot-soldiers in the tropics. In the course of four months nearly all the infantry in the small towns was replaced by cavalry. In this same month (July) American cavalry successfully secured the Laguna de Bay south shore towns which the insurgents had re-taken on the departure of the infantry sent there in January. Many well-to-do proprietors in these towns (some known to me for 20 years), especially in Viñan, complained to me of what they considered an injustice inflicted on them. The American troops came and drove out the insurgents, or caused them to decamp on their approach; but, as they left no garrisons, the insurgents re-entered and the townspeople had to feed them under duress. Then, when the American forces returned six months afterwards, to the great relief of the inhabitants, and left garrisons, many of these townspeople, on a charge of having given succour to the insurgents, were imprisoned with the only consolation that, after all, a couple of monthsʼ incarceration by the Americans was preferable to the death which awaited them at the hands of the insurgents if they had refused them food. The same thing occurred in other islands, notably in Sámar and in Cebú, where the people were persecuted for giving aid to the armed natives on whose mercy their lives depended. This measure was an unfortunate mistake, because it alienated the good feeling of those who simply desired peace with the ruling power, whether it were American or native. There were thousands of persons—as there would be anywhere in the world—quite incapable of taking up arms in defence of an absent party which gave them no protection, yet naturally anxious to save their lives by payment if need be.[7]

On July 19 a proclamation was issued forbidding the possession of firearms without licence. On August 7 the curfew ordinance was extended to 11 p.m., and again, in the following month, to midnight. In September there was another serious outbreak up the Laguna de Bay, where two or three hundred insurgents, led by a French half-caste, General Cailles,[8] attacked Los Baños, and about the same time the insurgents north of Manila cut the railroad between Malolos and Guiguinto. Cailles was driven out of Los Baños, but hundreds more insurgents joined him, and a furious battle was fought at Siniloan, on September 17, between 800 insurgents and a company of the 15th Infantry, who drove the enemy into the mountains.

In November Aguinaldo, who was camping in the province of Nueva Ecija, issued another of his numerous exhortations, in consequence of which there was renewed activity amongst the roaming bands of adventurers all over the provinces north of the capital. The insurgent chief advocated an aggressive war, and in the same month it was decided to send more American troops to Manila.

Many of the riff-raff had been inadvertently enrolled in the native police force, and received heavy sentences for theft, blackmail, and violent abuse of their functions. Indeed it took nearly a couple of years to weed out the disreputable members of this body. The total army forces in the Islands amounted to about 70,000 men, and at the end of 1900 it was decided to send back the volunteer corps to America early in the following year, for, at this period, General Aguinaldo had become a wanderer with a following which could no longer be called an army, and an early collapse of the revolutionary party in the field was an anticipated event.

From September 1, 1900, the legislative power of the military government was transferred to a civil government, Governor W. H. Taft being the President of the Philippine Commission, whilst Maj.-General McArthur continued in his capacity of Commander-in-Chief to carry on the war against the insurgents, which culminated in the capture of General Emilio Aguinaldo on March 23, 1901. This important event accelerated the close of the War of Independence. On January 14 General Emilio Aguinaldo had his headquarters at Palánan (Isabela), on the bank of a river which empties itself into Palánan Bay, situated about six miles distant from the town, on the east coast of Luzon. Being in want of reinforcements, he sent a member of his staff with messages to that effect to several of his subordinate generals. The fellow turned traitor, and carried the despatches to an American lieutenant, who sent him on to Colonel Frederick Funston at San Isidro (Nueva Ecija). The despatches disclosed the fact that General Emilio Aguinaldo requested his cousin, General Baldomero Aguinaldo, to send him, as soon as possible, 400 armed men. With General McArthurʼs approval, Colonel Funston proceeded to carry out a plan which he had conceived for the capture of General Emilio Aguinaldo. An expedition was made up of four Tagálog deserters from Aguinaldoʼs army, 78 Macabebe scouts (vide p. [446], footnote), and four American officers, besides Colonel Funston himself. Twenty of the scouts were dressed in insurgent uniforms, and the remaining natives in common working-clothes. Ten of them carried Spanish rifles, ten others had Krag-Jörgensen rifles, which they were to feign to have captured from American troops, and the five Americans were disguised as private soldiers. The party was then carried round the north and east coasts of Luzon, and put ashore in the neighbourhood of Baler by the gunboat Vicksburg, which approached the coast without lights, and then waited off Palánan Bay. The expedition was nominally commanded by an insurgent deserter, Hilario Placido,[9] whilst three other deserters posed as officers, the Americans playing the role of prisoners captured by the party. Before setting out for Casigúran, some 20 miles away, a messenger was sent on to the native headman of that town to tell him that reinforcements for Aguinaldo were on their way, and would require food and lodging, which were forthwith furnished by the headman to these 87 individuals. Some months previously some papers had been captured bearing the signature and seal of the insurgent general Lacuna, and this enabled the party to send on a letter in advance to Emilio Aguinaldo, ostensibly in the name of Lacuna, announcing the arrival of the reinforcements furnished in response to his request of January 14. This letter was accompanied by another one from the pseudo-chief of the expedition, stating that on the way they had captured five American soldiers and ten Krag rifles. A request was also made for food, which he explained had run short. Emilio Aguinaldo, therefore, sent Negritos to meet them on the way with a supply of rice. In the morning of March 23 they were near Palánan. The Macabebe scouts were sent in advance of the soi-disant five American prisoners, and when they entered the town Aguinaldoʼs bodyguard of 50 men was drawn up in parade to receive them. The native pseudo-officers marched into the camp, and were welcomed by Aguinaldo; but they shortly afterwards took temporary leave of him, and coming outside ordered their Macabebe troops to form up. Just at the moment the five supposed prisoners were conducted towards the camp the Macabebes poured three murderous volleys into Aguinaldoʼs troops, two of whom were killed and 18 wounded. On the other side only one Macabebe was slightly wounded. The Americans witnessed the effect of the first volley, and, together with the natives posing as officers, rushed into Aguinaldoʼs headquarters. Aguinaldo, Colonel Villa, and one civilian were taken prisoners, whilst other insurgent officers jumped from the window into the river and escaped. The expedition, after resting a day and a half at the camp, escorted their prisoners to Palánan Bay, where they were all taken on board the gunboat Vicksburg, which reached Manila on March 27.

The closing scene in Emilio Aguinaldoʼs military career was a remarkable performance of consummate skill, but unworthy of record in the annals of military glory.

The War of Independence, which lasted until the next year, was a triumph of science over personal valour about equally balanced. It was a necessary sacrifice of the few for the good of the many. No permanent peace could have been ever hoped for so long as the Islanders entertained the belief that they could any day eject the invaders by force.