This fund being inadequate to the requirements of equipment and for the conduct of the war, the patriotism of the Congress provided the means in the war revenue act of June 13th, by authorizing a 3 per cent popular loan, not to exceed $400,000,000, and by levying additional imposts and taxes. Of the authorized loan, $200,000,000 were offered and promptly taken, the subscriptions so far exceeding the call as to cover it many times over, while, preference being given to the smaller bids, no single allotment exceeded $5,000. This was a most encouraging and significant result, showing the vast resources of the nation and the determination of the people to uphold their country’s honor. DEWEY’S HISTORIC VICTORY. The first encounter of the war in point of date took place April 27th, when a detachment of the blockading squadron made a reconnaissance in force at Matanzas, shelled the harbor forts and demolished several new works in construction. The next engagement was destined to mark a memorable epoch in maritime warfare. The Pacific fleet, under Commodore Dewey, had lain for some weeks at Hongkong. Upon the colonial proclamation of neutrality being issued and the customary twenty-four hours’ notice being given, it repaired to Mirs Bay, near Hongkong, whence it proceeded to the Philippine Islands under telegraphed orders to capture or destroy the formidable Spanish fleet then assembled at Manila. At daybreak on the 1st of May the American force entered Manila Bay, and after a few hours’ engagement effected the total destruction of the Spanish fleet, consisting of ten warships and a transport, besides capturing the naval station and forts at Cavite, thus annihilating the Spanish naval power in the Pacific Ocean and completely controlling the Bay of Manila, with the ability to take the city at will. Not a life was lost on our ships, the wounded only numbering seven, while not a vessel was materially injured. For this gallant achievement the Congress, upon my recommendation, fitly bestowed upon the actors preferment and substantial reward. The effect of this remarkable victory upon the spirit of our people and upon the fortunes of the war was instant. A prestige of invincibility thereby attached to our arms, which continued throughout the struggle. Re-enforcements were hurried to Manila under the command of Major-General Merritt and firmly established within sight of the capital, which lay helpless before our guns. On the 7th day of May the government was advised officially of the victory at Manila, and at once inquired of the commander of our fleet what troops would be required. The information was received on the 15th day of May, and the first army expedition sailed May 25th and arrived off Manila June 30. Other expeditions soon followed, the total force consisting of 641 officers and 15,058 men.