Philippines not a poor man's country--Oscar F. Williams' letter--No occupation for white mechanics--American merchants unsuccessful in the East--Difficulties of living amongst Malays--Inevitable quarrels--Unsuitable climate--The Mali-mali or Sakit-latah--The Traspaso de hambre--Chiflados--Wreck of the nervous system--Effects of abuse of alcohol--Capital the necessity--Banks--Advances to cultivators--To timber cutters--To gold miners--Central sugar factories--Paper-mills--Rice-mills--Cotton-mills--Saw-mills--Coasting steamers--Railway from Manila to Batangas--From Siniloan to the Pacific--Survey for ship canal--Bishop Gainzas' project--Tramways for Luzon and Panay--Small steamers for Mindanao--Chief prospect is agriculture. The commercial prospects of the Islands are great, even if we do not instantly take for gospel the fairy tales we are told about Manila becoming the centre of the trade of the Pacific. There can be no doubt that if peace and an honest administration can be secured, capital will be attracted and considerable increase in the export of hemp, tobacco, and sugar will gradually take place as fresh land can be cleared and planted. As I have elsewhere said, the Philippines in energetic and skilful hands will soon yield up the store of gold which the poor Spaniards have been so mercilessly abused for leaving behind them. But the Philippines are not and never will be a country for the poor white man. A white man cannot labour there without great danger to his health. He cannot compete with the native or Chinese mechanic, in fact he is not wanted there at all. For my part, I would never employ a white man there as a labourer or mechanic, if I could help it, more especially an Englishman or an American, for I know from experience what the result would be. As foreman or overseer a white man may be better, according to his skill and character. Now let me, as soon as possible, expose the absurdity of a mischievous letter, which I fear may already have done much harm, but I hope my warning may do something to counteract its effects. I quote from the Blue Book so often mentioned: pp. 330-1. Mr. Williams to Mr. Day. U. S. S. Baltimore, Manila Bay, July 2nd, 1898. Sir, * * * * * * * * * * * * * * * * If long occupation or possession on the part of our government be considered, I believe early and strenuous efforts should be made to bring here from the United States men and women of many occupations--mechanics, teachers, ministers, ship-builders, merchants, electricians, plumbers, druggists, doctors, dentists, carriage and harness makers, stenographers, type-writers, photographers, tailors, blacksmiths, and agents for exporting, and to introduce American products natural and artificial of many classes. To all such I pledge every aid, and now is the time to start. Good government will be easier the greater the influx of Americans.