Anglo-American missionaries have settled there, and a great number of natives profess Christianity in the Protestant form. Religious books in native dialect, published in Honolulu (Sandwich Is.) by the Hawaiian Evangelical Association, are distributed by the American missionaries. I have one before me now, entitled "Kapas Fel, Puk Eu," describing incidents from the Old Testament. A few of the natives can make themselves understood in English. Besides coprah (the chief export) the Islands produce Rice, Yams, Bread-fruit (_rima_), Sugar-cane, etc. Until 1886 there was no Government, except that of several petty kings or chiefs, each of whom still rules over his own tribe, although the Protestant missionaries exercised a considerable social influence. In 1885 a Spanish naval officer, named Capriles, having been appointed Governor of the Islands, arrived at Yap, ostensibly with the object of landing to hoist the Spanish flag as a signal of possession, for it was known in official quarters that the Germans were about to claim sovereignty. However, three days were squandered (perhaps intentionally) in trivial formalities, and although two Spanish men-o'-war--the _Manila_ and the _San Quintin_--were already anchored in the Port of Yap, the German warship _Iltis_ entered, landed marines, and hoisted their national flag, whilst the Spaniards looked on. Then the German Commander went on board the _San Quintin_ to tell the Commander that possession of the Islands had been taken in the name of the Emperor of Germany. Neither Capriles, the appointed Governor, nor Espana, the Commander of the _San Quintin_, made any resistance; and as we can hardly attribute their inactivity to cowardice, presumably they followed their Government's instructions. Capriles and Espana returned to Manila, and were both rewarded for their inaction; the former being appointed to the Government of Mindoro Island. In Manila an alarming report was circulated that the Germans contemplated an attack upon the Philippines. Earthworks were thrown up outside the city wall; cannons were mounted, and the cry of invasion resounded all over the Colony. Hundreds of families fled from the capital and environs to adjacent provinces, and the personal safety of the German residents was menaced by individual patriotic enthusiasts.