A month after the battle of Manila Bay Aguinaldo proclaimed himself "president" (in reality military dictator) of the "Filipino Republic." But this republic existed only on paper. Dewey accurately states the condition of affairs when he says, "Our fleet had destroyed the only government there was, and there was no other government; there was a reign of terror throughout the Philippines, looting, robbing, murdering." A form of municipal election was held, but if a candidate not favoured by the insurgents was elected, he was at once deposed. One candidate won his election by threatening to kill any one who got the office in his place. Persons "contrary minded" were not allowed to vote. These happenings hardly suggest a republican form of government, but they are typical of conditions at that time. [Illustration: AGUINALDO'S PALACE AT MALOLOS.] Naturally the self-styled president was not recognized by the American officials, and they were justified, as is shown by the fact that before the year was up Aguinaldo himself had come to realize that he could not maintain order among his people, and tried to resign from his office. Meanwhile his lack of recognition by the Americans, and his exclusion from the spoils of war, so far as Manila was concerned, showed him that his only hope of achieving his ambitions lay in driving these interlopers from the Islands. But for the time being, while awaiting a propitious moment for attack, he occupied himself and his men by conquering the Spaniards in the outlying provinces. Since there was no coöperation among the Spanish forces, he was quite successful. Having proclaimed the republic with himself at the head, he felt justified in maintaining, with the aid of his booty, a truly regal state in his palace at Malolos, aping the forms and ceremonies of the Spanish governors in Manila. As fast as Church property, or property belonging to Spaniards, fell into his hands, it was confiscated and turned over to the State--if Aguinaldo can be considered the State. His houses and those of his generals were furnished from Spanish possessions, all title deeds were systematically destroyed or hidden, and administrators were appointed for the property. At the beginning of the new year (1899), he turned his attention to the Americans, and Manila. Because our forces seemed reluctant to fight, the Filipinos, like the Mexicans to-day, believed that they must be cowards and afraid to meet them. A Mexican paper has recently told its readers what a simple matter it would be, if war were declared, for their troops to cross the border and crush such slight opposition as may be offered to the capture of Washington. So it is no wonder that the Filipinos felt confident of success, especially after their victories over the Spaniards in the outlying regions.