In general, it may be said that the additional bureaus necessary for the work of the Insular government were created, and given proper powers.  Civil government was gradually extended to the entire archipelago. [467] The criminal code was amended and supplemented by the passage of new laws.  The administration of justice was reorganized and reformed. [468] An efficient native insular police force was organized, and an admirable state of public order brought about. [469] The health service was extended to the provinces, and health conditions were greatly improved throughout the islands. [470] Baguio was made accessible and became both the summer capital and a health resort for the people of the islands. [471] The scientific work of the government was cordinated, and efficiency and economy in its performance were insured. [472]

Primary and secondary schools were established throughout the islands, supplemented by trade schools, and a normal school at Manila. [473] Legislation was enacted, and submitted to the President and to Congress, covering the disposition of public lands. [474] The purchase of extensive estates belonging to certain religious orders, and the sale of their holdings therein to tenants, was provided for. [475] Fairly adequate legislation for the protection and development of the forest resources of the islands was enacted. [476] Means of communication by land and sea were greatly improved, and the development of commerce was thus stimulated. [477]

It is a noteworthy fact that all of these things were done with a per capita taxation of about $2.24!

Another fundamentally important aid to the commercial development of the islands was afforded by a radical reformation of the currency.

The islands under the sovereignty of Spain had their own distinct silver coinage in peso, media peso, peseta and media peseta pieces.

In 1878 the Spanish government, hoping to check the heavy exportation of gold currency from the Philippines, passed a law prohibiting the importation of Mexican dollars, but allowed the Mexican dollars then in the islands to continue to circulate as legal tender.

When the American troops arrived, there were in circulation the Spanish-Philippine peso and subsidiary silver coins; Spanish pesos of different mintings; Mexican pesos of different mintings; Hongkong dollars, fractional silver coins from different Chinese countries, and copper coins from nearly every country in the Orient.  Although a law had been passed prohibiting the introduction of Mexican dollars into the islands, they were being constantly smuggled in.  Fluctuations in the price of silver affected the value of the silver coins, and the money in common use was in reality a commodity, worth on any given day what one could get for it.  These conditions affected most disastrously the business interests of the islands.  Merchants were forced to allow very wide margins in commercial transactions, because they did not know what their goods would actually cost them in local currency upon arrival.  The most important business of the local banks was in reality that of exchange brokers and note shavers.  They hammered the exchange rate down and bought silver, then boosted the rate skyward and sold.