Amongst the forest produce gutta-percha took a leading place, but this product came through the hands of the Chinese traders, who, as their custom is, adulterated it to such an extent that its value became greatly depreciated in European and American markets, and the trade fell off. Some lignite is found in Mindanao, but I have no confidence in the value of Philippine coal-fields. They have been too much broken up by volcanic action. I have very little doubt that petroleum will be found in Mindanao when it is explored. It has been reported in Mindoro and Cebú. The early explorers of the Archipelago state that the natives wore little clothes, but abundance of gold ornaments. Now they wear more clothes but little gold. It is surprising how quickly the heathen become impoverished whenever they have Christian neighbours. Basilan. The sixth district of Mindanao is formed of the Basilan group of some forty islands lying opposite to Zamboanga, having a total area of 170,000 acres. The only important one of the group is Basilan Island, which has an irregular outline, an oval with two projections opposite each other, east and west, the latter resembles a turtle's head and the former a turtle's tail, so that the shape of the island on the map is that of a turtle with his head to the west. The total length from the point of the beak to the tip of the tail is about thirty-two geographical miles, and the width across the body about twenty-one miles. The port of Isabela is sheltered by the Island of Malamaui, on which there is a Moro rancheria called Lucbalan, and a Christian visita, Sta. Barbara. The capital, Isabela, is situated about the centre of the channel, and to the east of the mouth of the Pasahan (now called Isabela) River. To the south of the town, which is situated on a stony slope at a short distance, the fort is placed at an elevation of about sixty feet above the sea. It commands both entrances of the channel. There is a barrack near the fort, a prison, military infirmary, school, town hall. The naval station consists of store-houses and workshops, marine-barracks, hospital, and magazine. There is a church, and missionaries' residence. The island is hilly but fertile in places. Some twenty to thirty acres are under cultivation near Isabela, and the Moros who form the principal population make their slaves work on the lands about their hamlets. There are no manufactures worth mentioning. The Christian population is as follows:-- Inhabitants.