Prosperity began to dawn upon the Philippines when restrictions on trade were gradually relaxed since the second decade of last century. As each year came round reforms were introduced, but so clumsily that no distinction was made between those who were educationally or intellectually prepared to receive them and those who were not; hence the small minority of natives, who had acquired the habits and necessities of their conquerors, sought to acquire for _all_ an equal status, for which the masses were unprepared. The abolition of tribute in 1884 obliterated caste distinction; the university graduate and the herder were on a legal equality if they each carried a _cedula personal_, whilst certain Spanish legislators exercised a rare effort to persuade themselves and their partisans that the Colony was ripe for the impossible combination of liberal administration and monastic rule. It will be shown in these pages that the government of these Islands was practically as theocratic as it was civil. Upon the principle of religious pre-eminence all its statutes were founded, and the reader will now understand whence the innumerable Church and State contentions originated. Historical facts lead one to inquire: How far was Spain ever a _moral_ potential factor in the world's progress? Spanish colonization seems to have been only a colonizing mission preparatory to the attainment, by her colonists, of more congenial conditions under other _regimes_; for the repeated struggles for liberty, generation after generation, in all her colonies, tend to show that Spain's sovereignty was maintained through the inspiration of fear rather than love and sympathy, and that she entirely failed to render her colonial subjects happier than they were before. One cannot help feeling pity for the Spanish nation, which has let the Pearl of the Orient slip out of its fingers through culpable and stubborn mismanagement, after repeated warnings and similar experiences in other quarters of the globe. Yet although Spain's lethargic, petrified conservatism has had to yield to the progressive spirit of the times, the loss to her is more sentimental than real, and Spaniards of the next century will probably care as little about it as Britons do about the secession of their transatlantic colonies.