Show 1HAVE CEASED 10 EXIST Two Military Departments in Luzon Wiped Out ENGAGEMENTS IN BATANGAS Forces of Insurgent Leader Cabanas Become Badly Demoralized Holds Two American Prisoners rinonciol Situation in the Islands Is Causing Much Alarm Banks of Manila Making From Sis to Eight Per Cent on Exchange of Money Premium on American Gold i i Manila Dec 1The military departments de-partments of northern and southern Luzon have ceased to exist MaJ Gen James F Wade formerly In command com-mand of the southern division will leave Manila tomorrow to assume command com-mand of the American forces on Cebu island and MaJGen Lloyd Wheaton formerly commander of the northern department will take command of the Department of th < North Philippines > SMALL ENGAGEMENTS Several small engagements have occurred oc-curred In Batangas province In the last few days The forces of the insurgent in-surgent leader Caballos have become badly demoralized His followers are broken up into several small bands Caballos holds two American prisoners prison-ers TENURE OF OFFICE The Commission on Municipal Laws and Regulations are about to change the terms of office for Municipal Councilors It has directed that members mem-bers of the United States army and navy cannot vote In the approaching elections at Hollo Panay island there are four candidates for the Mayoralty and fiftyseven candidates to fill six vacancies among the City Councllmen In these selections the American candidates can-didates will probably be elected by the solid American vote FINANCIAL SITUATION The financial situation In the Philippine Phil-ippine Islands Is causing much alarm In an Interview published In Manila Henry C Jdc Chief of the Department of Finance and Justice referred to the probable enforcement of an alteration in the immediate future of the present Government parity of two Mexican dollars for one gold dollar The United States postofllce here now refuses except ex-cept to Government employees to Issue Is-sue money orders in exchange for Mexican silver The banks of Manila have been making from 6 to 8 per cent on exchange Merchants and others are forced to carry their accounts in Mexican silver ASK FOR AUTHORITY The commercial community had relied re-lied upon the United States Philippine commission to cOntinue the giving of two Mexican dollars for one gold dollar dol-lar which the commission itself created cre-ated The commission is unable to act in the matter without the authority of Congress This authorization has been requested Charles A Conant Special Commissioner of the War department de-partment to investigate the state of coinage and banking in the Philippines and report to the Secretary of War recommendallons for remedial legislation legisla-tion who is now in Washington was the bearer of he commissions views on this matter PREMIUM ON GOLD The stores of Manila are compelled to accept the two Mexican dollars for one gold dollar while Chinese speculators specula-tors are paying as high as C per cent premium in American paper for American Amer-ican gold Local bankers say that 1C the salaries sal-aries of all Insular employees were paid in the local or Mexican currency Independent of the fluctuations of this currency and It the Government had not attempted to enforce a rate of exchange the present financial situation situ-ation would never have arisen |