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(Lord Lister was one of the twelve upon whom this order was conferred. His portrait appears on an earlier page, in the

group of the King's physicians.)

THE FIRST RECIPIENTS OF KING EDWARD'S NEW ORDER OF MERIT.

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which twelve men were designated. This list included three soldiers, Lords Wolseley, Roberts, and Kitchener; two admirals, Seymour and Keppel; four men of science, Lords Kelvin, Ray. leigh, Lister, and Sir William Huggins, the astronomer; one artist, Mr. George F. Watts; and two men of letters, Mr. W. H. Lecky and Mr. John Morley. Of Mr. Watts, we publish in this number an interesting sketch by Mr. Stead.

ippine Friars.

Governor Taft's proposals to the Vat. As to the Phil-ican at Rome, which, as to their principal points, embodied the idea that the United States should at a fair price buy the lands of the Spanish friars in the Philippines, and that the Vatican should withdraw the friars from the islands, were, after several weeks of discussion, met by counter proposals on the part of the Vatican, delivered on July 9. These Vatican proposals were in twelve articles, most of which related to the land question, and provided specifically for the method of appraising the land and carrying the business to a conclusion. The withdrawal of the friars is not mentioned in the formal proposals, but in an accompanying note the Vatican declares that it is impossible to accede to the request of the United States on that score. It is intimated, however, that the Church authorities at Rome would see

But

that the friars caused no political friction in the Philippines, and it is implied that it would be the policy of the Vatican to replace gradually the Spanish friars with clerics of other nationalities, especially with Americans. The Vatican evidently expected that the United States would make further proposals, and that the period of negotiation at Rome would be prolonged. Judge Taft, after awaiting instructions from Secretary Root, informed the Vatican, on July 16, that he would leave Rome on the 24th, and that it would be in accordance with the wishes of the United States Government if further negotiations were carried on at Manila between Governor Taft and the civil authorities on the one hand, and an apostolic commissioner, representing the Church, on the other hand.

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islands are Catholic parish priests and the whole Filipino body of lay members of the Church. This hostility is so great that the friars have not for several years been able to occupy their lands, or to officiate in any way in the parishes where they were once powerful through the support of the Spanish Government. It is not difficult to understand, on reflection, that the Vatican should dislike to be put in the position of making a direct agreement to withdraw the friars. In the first place, this might be offensive to important elements of Church support in Spain; in the second place, it might be regarded as humiliating to the great world-wide orders of which these particular friars are members. What the Vatican would prefer would be to have this whole subject left to the discretion of the Church authorities, to be worked out gradually, and without any show of compulsion or pressure. It would probably be regarded as a violation of the treaty of peace with Spain if the United States should forcibly remove the friars from the Philippines. The great point, as it seems to us, is gained when the friars' titles to agricultural lands are extinguished by the payment of a fair compensation. The Vatican could have no mo. tive for wishing to have the proceeds of the sale of these lands used for the reëstablishment anywhere in the archipelago of wholly unwelcome

members of the religious orders. On one pretext or another, these friars will inevitably be withdrawn, and they will naturally go either to Spain or to the South American countries. Judge Taft's sojourn at Rome will have proved fairly successful in the end.

Peace and Civil Rule in

The Fourth of July becomes an imthe Philip- portant date in Philippine history pines. through the amnesty proclamation of President Roosevelt issued at Manila on that day. It marked the end of military administration, declared peace to exist, and subordinated the army to the civil régime in accordance with the Philippine government act passed by Congress a few days before. The proclamation, of course, did not apply to the Moro tribes, or the regions inhabited by them, which will have to remain under a separate system. The President's full and free amnesty was granted to all persons in the Philippine archipelago who had in any way opposed the authority and sovereignty of the United States. This, of course, did not apply to persons convicted of ordinary crimes, and it further required the taking of an oath of allegiance. Separate proclamations of the same date. expressed appreciation of the work of the army, and relieved General Chaffee from further duties as military governor, that office being discon

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rendered for a period of more than forty years in the army. Gen. Jacob H. Smith was so unfortunate as to be retired last month on recom. mendation of Secretary Root, by express order of President Roosevelt, to emphasize the disapproval that was felt of his conduct in issuing verbal orders to Major Waller in the Samar campaign to use measures of retaliation not countenanced by the rules of war. General Smith, being past sixty-two, had reached the age of voluntary retirement, and his career as a whole is commended both by the Secretary of War and the President.

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BRIG.-GEN. GEORGE W. DAVIS, U.S.A. (Who succeeds General Chaffee in command of the Department of the Philippines.)

tinued. The President and Secretary Root, in an eloquent review of the work of the army, expressed to the soldiers in the Philippines their high appreciation of all that had been accomplished. By July civil government had been established in every part of the archipelago where civilized people were living. The amnesty proclamation liberated about 1,800 Filipinos, most of whom were held as military prisoners. Aguinaldo, who was among those accepting the amnesty, predicts an era of prosperity, contentment, and happiness, and it is said that he is coming to the United States to study American institutions.

Changes

The abolition of the office of military Some Army governor is emphasized by the recall of General Chaffee from the Philippines, and his appointment to the command of the Department of the East, with headquarters at New York. He is succeeded in the Department of the Philippines by Gen. George W. Davis. The vacancy in the Department of the East is caused by the retirement of Gen. John F. Brooke from active service on July 18, he having attained the age limit. Gen. Loyd Wheaton, who was serving under General Chaffee in the Philippines, also retired on account of age a few weeks ago, with many compliments upon the faithful and valuable service he had

MAJ.-GEN. ADNA R. CHAFFEE, U.S.A.

the Senate, the Republicans supporting and the Democrats opposing it in both Houses. The House bill had called for a gold standard in the Philippines, and the Senate bill for the coinage of a special silver dollar. As an agreement on the question of monetary standards could not be reached, the whole subject was omitted from the final measure. It was agreed respecting a Philippine legislature that a census should first be taken, and that within two years thereafter the President should instruct the Philippine Commission

to call a general election for the choice of delegates to a popular assembly. The House bill was more stringent than that of the Senate with respect to the sale of public lands and the granting of franchises, etc., and the Senate conferees yielded on many of these points. If the Filipinos behave themselves intelligently and sensibly, they will have a real legislative assembly of their own within five years, and will be several centuries nearer actual self-government than at any time previous to the arrival of Dewey in Manila Bay.

Congress always has to pass its reguThe Recent lar appropriation bills, and no session Session. of Congress can be called a failure in which questions of ordinary income and expenditure are wisely dealt with. On the side of income, the recent session repealed the war taxes, and this must be set down to its credit, although a higher statesmanship would have dealt with the whole subject of public revenue in a more scientific way. Meanwhile, the largest surplus ever known in the history of any government had accumulated in the treasury, and Congress was unquestionably lavish, not to say reckless, in some of its disbursements. This remark applies especially to the river and harbor bill, upon which we commented last month. No one can justly

"HARD LINES."

PATIENT BRITISH ASS (to himself):

Blest if I can feel a penn'orth o' difference between this old gal and the one that's just got off!"-From Punch (London).

criticise as too lavish, however, the provision made for the army and navy. The War Department deserves great credit for the steady reduction of the total army force, and the Navy Department provides for no more rapid increase in the number of our ships than the country, as a whole, is ready to approve. The appropriation for pensions. has for some years past varied scarcely at all in amount. In the main, the recent session has dealt fairly well with its ordinary responsibilities touching the provision of revenue and the vote of supply for the regular departments of adininistration. In England they are grumbling (see cartoon on this page) because peace brings no promise of marked reduction in taxes. In this country, on the other hand, about one hundred millions a year have recently been cut off.

The Canal Bill.

Apart from these matters, Congress has accomplished two or three things of historical importance. Besides ending the military régime in the Philippines and creating a system of civil government of which we have already spoken, the recent session passed an interoceanic canal measure, and thereby made a contribution of profound significance to the future history of the activities of the whole world. Since the final choice of routes depended upon some considerations that could better be dealt with by the executive than by the legislative branch of the Government, the Panama route was selected only provisionally. The bill as passed authorizes the President to acquire for $40,000,000 the property and franchises of the Panama Canal Company and the Panama Railroad Company's stock. He is also to acquire suitable control over a strip of territory six miles wide, by negotiation with the republic of Colombia. If satisfactory arrangements cannot be made, the President is authorized to revert to the Nicaragua route. Toward the cost of building the canal, provision is made for a popular two per cent. loan of $130,000,000. The change of sentiment in Congress, from devotion to the Nicaragua route to a willingness to accept the Panama route, was due to the concurrence of several lines of argument; but it is not likely that final action could have been secured except for the remarkable shrewdness of the proposal which Senator Spooner made, and which carried everything before it. Since the Nicaragua advocates had held that the new Panama company could not give clear title, the bill as passed left them with some hope that the President would have to reject Panama and adopt the other alternative. From practical unanimity for Nicaragua, the House turned about and adopted the Senate's substitute of Panama, with hardly any opposing votes.

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