A formal treaty of peace was signed at Paris December 10, 1898, providing that Spain should relinquish her title to Cuba, and cede Porto Rico, Guam (one of the Ladrones), and the Philippines to the United States; and that the United States should pay $20,000,000 to Spain. The treaty was then submitted to the governments of the United States and Spain for ratification; but in both countries it met some opposition. In our country objections were made especially to the taking of the Philippines without the consent of their inhabitants, many of whom, under the leadership of Aguinaldo, had previously rebelled against Spain and were now demanding complete independence; but the prevailing view was that our immediate control was necessary to prevent civil war, anarchy, and foreign complications there. Accordingly, on February 6, 1899, the treaty was ratified by the Senate by a vote of 57 to 27. Spain also accepted the treaty, which was formally proclaimed April 11. The $20,000,000 was promptly paid to Spain, and ordinary diplomatic relations were resumed.
%572. The War Bonds and War Taxes.%—For the expenses of the war with Spain Congress made ample provision. The Secretary of the Treasury was authorized to issue $400,000,000 in 3 per cent bonds,[1] and borrow $100,000,000 upon temporary certificates of indebtedness. Stamp taxes, an inheritance tax, and a duty on tea were laid, and the silver in the Treasury was ordered to be coined at the rate of $1,500,000 a month.
[Footnote 1: $200,000,000 of the war bonds were offered for popular subscription, and $109,000,000 were subscribed in sums under $500. All was taken in sums under $5000.]
%573. Hawaii annexed.%—But in few respects was the effect of the war so marked as in the changed sentiment of the people toward Hawaii. During five years the little republic had been steadily seeking annexation to the United States, and seeking in vain. But with the partial occupation of the Philippines, and the impending acquisition of Porto Rico, and perhaps Cuba, the policy of territorial expansion lost many of its terrors, and the Hawaiian Islands were annexed by joint resolution of Congress, signed by the President July 7, 1898. The formal transfer of sovereignty took place August 12. The islands continued temporarily under their existing form of government, with slight modifications, till June 14, 1900, when they were organized as a territory.
[Illustration: (World Map)]
[Illustration: General Otis]
%574. The War in the Philippines.%—While the treaty with Spain was under consideration, the city of Manila was held by General Otis, Merritt’s successor; but native troops, under Aguinaldo, were in control of most of Luzon and several other islands. On the night of February 4, 1899, the long-threatened conflict between them was begun by Aguinaldo’s unsuccessful attack on the Americans at Manila. War now followed; but in battle after battle the natives