"Government monopolies rigorously maintained, insolent disregard and neglect of the half-castes and powerful creoles, and the example of the United States, were the chief reasons of the downfall of the American possessions. The same causes threaten ruin to the Philippines; but of the monopolies I have said enough. "Half-castes and creoles, it is true, are not, as they formerly were in America, excluded from all official appointments; but they feel deeply hurt and injured through the crowds of place-hunters which the frequent changes of Ministers send to Manila. "Also the influence of American elements is at least discernible on the horizon, and will come more to the front as the relations of the two countries grow closer. At present these are still of little importance; in the meantime commerce follows its old routes, which lead to England and the Atlantic ports of the Union. Nevertheless, he who attempts to form a judgment as to the future destiny of the Philippines cannot fix his gaze only on their relations to Spain; he must also consider the mighty changes which within a few decades are being effected on that side of our planet. For the first time in the world's history, the gigantic nations on both sides of a gigantic ocean are beginning to come into direct intercourse: Russia, which alone is greater than two divisions of the world together; China, which within her narrow bounds contains a third of the human race; America, with cultivable soil enough to support almost three times the entire population of the earth. Russia's future rôle in the Pacific Ocean at present baffles all calculations. The intercourse of the two other powers will probably have all the more important consequences when the adjustment between the immeasurable necessity for human labor-power on the one hand, and a correspondingly great surplus of that power on the other, shall fall on it as a problem." "The world of the ancients was confined to the shores of the Mediterranean; and the Atlantic and Indian Oceans sufficed at one time for our traffic. When first the shores of the Pacific re-echoed with the sounds of active commerce, the trade of the world and the history of the world may be really said to have begun. A start in that direction has been made; whereas not so very long ago the immense ocean was one wide waste of waters, traversed from both points only once a year. From 1603 to 1769 scarcely a ship had ever visited California, that wonderful country which, twenty-five years ago, with the exception of a few places on the coast, was an unknown wilderness, but which is now covered with flourishing and prosperous towns and cities, divided from sea to sea by a railway, and its capital already ranking among the world's greatest seaports.