reform is needed; all its workmen except the gunsmiths should be replaced gradually by Indians, who are so skilful and work for less wages than the Spaniards; and the gunsmiths should have a regular military organization. Better provision should also be made for a supply of gunpowder. At the beginning of the century, a powder factory was erected, which cost eighty thousand hard dollars, although it was made of only bamboo and nipa; with this a large supply of powder was made, but its quality was poor, on account of the impurities in the saltpetre, which they had to obtain from India. There has been talk of building another factory (the former one being apparently no longer in existence); it is likely to be as costly an enterprise, because the lack of a strong current in the rivers "has rendered impracticable the installation of hydraulic machinery." The Spanish government ought to take measures to provide the large amount of powder needed for the use of the forts, army, navy, and revenue service. Bernaldez advises that this be done by making contracts (with either Spaniards or foreigners), by which they can secure powder of better quality and at lower prices; and besides this they ought to send immediately to the islands a scientist (whose salary ought to be paid from the funds of the Economic Society and the consulate of commerce)--"whose mission shall be not only to establish in the capital a chair of mineralogy (which is so necessary for exploring the hitherto unknown interior of the islands), but himself to make researches in the provinces of the archipelago for places where the saltpetre can be found--which he will find, without fail." Then gunpowder can be made in the islands, and they will be independent in the means for their defense.] Of the forts of Manila and Cavite