In the various departments of the administration there may also be abuses to examine or correct, which will never be known or exactly proved by chiefs resident in Madrid, because of the distance which is so favorable to the distortion of facts. For example, the brigadier of the navy, Don J. Ruiz de Apodaca, told me before the sub-inspector of artillery and another chief that all the articles which were bought by the treasury for the arsenal, were charged at a much higher price than those for the fort, etc., and he invited me to go to his house where he would prove it to me with the documents. On the other side, I have heard complaints that after a contract had been made with the treasury for cables, iron, etc., it is impossible to get a receipt for them in the arsenal, unless for a bonus; that quantities of timber will not be receipted for and those who have transported it to Cavite have to sell it at any price; and that it is bought by the very ones who have qualified it as useless; that many houses have been built in Cavite with the timber given out as no good, only with the object of making new bargains. Don F. Ossorio told me in the house of the secretary of the government, and in the presence of several respectable persons, that when he was commandant of artillery at that place, he made all the furniture of his house with wood which he bought in the arsenal as firewood. It is a fact that naval construction is very dear, and that the fragata "Esperanza" cost more than 600,000 pesos fuertes. During my stay in the islands, there has been talk of trickery in the outlay of tobacco, besides a defalcation in the magazines of three thousand eight hundred bundles of leaf. It was declared that there was introduced, for example, into the factory magazines, a quantity of bundled tobacco, in which was one part composed of fillers [palos] which had to be burned as useless; but if these fillers amounted to five thousand arrobas, only four thousand were destroyed. The other thousand arrobas were taken out as leaf of the best brand [from the magazines] and was carried to private houses where it was manufactured as contraband. This leaf was replaced by the fillers which ought to have been burned. For that reason, the cigars which were sent to the tobacco shops of the provinces, and even those which were sold to the trade, were sometimes of the worst quality; that the boxes were short weight; that choice lots were finished with care, and marked with a mark, and papers were given authorizing the exchange of tobacco in the factory, by which means the associates in these speculations could buy the poor tobacco which was given to the public, and leave it in the national magazines, taking in place of it, that manufactured properly and reserved. But what I know to be a positive fact in this matter is that few or many superior or fine boxes were made, which were obtained by favor in Manila; and that when