A survey of the educational system of the Philippine islands by the Board of educational survey, created under acts 3162 and 3196 of the Philippine Legislature.

BOARD OF EDUCATIONAL SURVEY REPORT

81

struction cannot be improved by practicing economy at this point. Obviously, therefore, if the work of the elementary school is to be made
effective, increased funds for securing an able and trained personnel
must be found.
If the foregoing analysis is sound, there are but two educationally
defensible courses open to the Filipino people. They must either reduce
the present limited extension of educational opportunities or increase
school revenues. The present policy is wasteful of public funds and the
energies of children. In the future, quality rather than quantity should
be emphasized. But the quality of instruction cannot be improved
unless funds are specifically set aside for this end. These funds must
come either from current school revenues or from increased school funds.
If the former course is followed, there must be a reduction of educational
opportunities; if the latter, additional sources of revenue must be discovered. That the Filipino people will choose the second course is the
opinion and the expectation of the Board. With a view, therefore,
to discovering new sources for school revenue we shall now turn to an
examination of the revenue system of the Islands.
THE PRESENT REVENUE SYSTEM.-The public revenues in the
Philippine Islands is derived from three sources: (1) Taxation; (2)
earnings and other credits of the Government; and (3) miscellaneous
sources such as fines and forfeitures, United States internal revenue,
sales, and rentals of public domain. From these three sources the various
divisions of the Government received in 1923 almost P108,000,000.
Of this sum 67 per cent was secured from taxation, 25 per cent from
earnings and other credits of the Government, and the remaining 8 per
cent from miscellaneous sources. Thus, two-thirds of the public revenue
is produced by taxation. An examination of the distribution and incidence of taxation will therefore be of interest.
In harmony with their general emphasis on centralization in government the Philippines possess a highly centralized system of taxation.
In 1923 approximately 65 per cent of the taxes were levied and collected by the Insular Government.' Of the remaining 35 per cent about
21 came from the municipalities and chartered cities and but 14
from the provinces. Thus the reader will observe that the local
political divisions, which in the United States and other countries carry
large responsibilities in the support of collective enterprises, play a minor
role in the Islands. So great is the need for the development of local
initiative in the support and control of schools that, after examining in
greater detail the existing system, additional consideration will be given
to this question.
'A portion of the revenues accruing to the Insular Government is collected by the
municipalities and chartered cities.
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