Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

What happened to the Biak-na-bato money?

Aguinaldo had been accused of misappropriating the Biak-na-bato money for himself and his comrades by indulging luxuriously in their almost five months stay in Hong Kong. The truth is he deposited the money in two banks and spent only the interest for their upkeep and maintenance. The principal was eventually withdrawn in several tranches to purchase arms and ammunition that were shipped to the Philippines in support of the second phase of the revolution.
Upon conclusion of the Biak-na-bato peace agreement on December 19, 1897, Aguinaldo and eighteen of the leaders of the revolution went on exile to Hongkong as provided in the agreement. On his arrival, he deposited the draft for P400,000 (Mexican) on the first banking day, January 2, 1898, in the Hong Kong and Shanghai Banking Corporation under the name of Aguinaldo and Company, on a time deposit yielding 4 percent interest. Two days later, he withdrew half of the money and deposited it with the Chartered Bank of India, Australia, and China at 2 percent interest with the provision that he could withdraw P50,000 per quarter." (Bell, 32 citing PIR, Microcopy #254)
Here is a description of how Aguinaldo and his compatriots lived in Hongkong:
"Aguinaldo lived with his fellow exiles in a large house that he leased along Morrison Hill Rd, Victoria. Some of them had to sleep on the floor. Other Filipino leaders who went to Hong Kong after them shared the same fate. Aguinaldo was parsimonious, alloting each man a twelve-peso monthly allowance for lodging, board, and laundry. The meager allowance forced the exiles to stay in the big house. Each made do with the one woolen suit that Aguinaldo provided against the cool Hong Kong weather – to save on laundry expenses. The allowance did not cover cigarettes and diversions. ... What held the exiles together was the fact that Aguinaldo shared every privation with them. He had control of the P400,000 but he abstained from using any part of it for his comfort." (Corpuz, 153)
"A strict budget was established for the exiles and a frugal existence was enforced by Aguinaldo. Every expense had to be reported to Aguinaldo, who meticulously noted the sums in his account book. The most trivial items - a pair of shoes, a new coat - had to be approved by the leader. For some of the men, this was a far cry from what they expected as exiles in Hong Kong. They were in a strange land where a foreign tongue was spoken; they had little to do except wait and hope for a chance to return to their homeland. Internalquarreling-a sign of their discontent - soon developed. (Bell, 34 citing Taylor 1:95)
"The dissatisfaction started to manifest itself on December 29, 1897, two days after Aguinaldo's departure. Led by Isabelo Artacho, the rebels at Biak-na-Bato passed a resolution which defied the departed leaders. ... The resolution proposed that the second and third installments, totaling P400,000, be distributed to the neediest insurgents." (Bell, 35 citing Taylor, 1:451-55, extract from PIR 53.3) Accordingly, the second installment of P200,000 received through the representation of Paterno was distributed to the local leaders. When Aguinaldo learned about this he wrote Paterno saying that the money was reserved for the common good and not to be distributed to a few individuals and advised Baldomero Aguinaldo to send the third installment of P200,000 instead to Hong Kong. This was no longer done because the Spaniards reneged on the payment, although Baldomero was able to remit to Hong Kong the amount of P18,582.90 which was added to the bank account. (Bell, 32 citing PIR 54.9) 
But Artacho did not stop there. He went to Hong Kong and "... sued for a division of the money among the insurgents according to rank. Aguinaldo refused, claiming that the money was a trust fund, and was to remain on deposit until it was seen whether the Spaniards would carry out their promised reforms, and if they failed to do so, it was to be used to defray the expenses of a new insurrection. " (Philippine Information Society v2n1, 8)
On the advice of Agoncillo, Aguinaldo, quietly left for Singapore together with Gregorio Del Pilar and Leyba to escape the suit. While in Singapore, he was approached by the American consul, Spencer Pratt, offering collaboration with Commodore Dewey. Aguinaldo went back to Hongkong to seek the advice of the Junta. The Junta wanted the American offer of collaboration put in writing but it only received verbal assurance from the American officer in Hong Kong that independence will be respected. After a very spirited debate, the Junta agreed with misgivings to send Aguinaldo home to commence the renewal of the revolution. Accordingly, the American officials coordinated with Dewey the repatriation of Aguinaldo to the Philippines. Meanwhile, the bank deposit was threatened with attachment due to the Artacho suit, so the Junta finally agreed to a settlement for P5,000 to Artacho, refusing his compromise offer of P40,000. (Bell, 44 citing Taylor, 1:515 extract PIR 24.5)
"An important aspect of Aguinaldo 's preparations for returning to the Philippines was the securing of arms. For this, Aguinaldo depended upon American consul of Hong Kong, Mr. Wildman, who zealously took charge of the project. The consul was initially given P50,000 for the shipment of arms to the Philippines; before departing, Aguinaldo handed him an additional P67,000 to buy and ship the second consignment. The first shipment of arms, consisting of 2,000 Mauser rifles and 200,000 cartridges, was delivered, but the second - according to Aguinaldo, at least - was never received. "Mr. Wildman did not comply with this last trust, keeping the said sum of money (P67,000), which he refuses to return, according to my advice.''"(Bell, 68-69 citing Taylor, 1:448 extract from Aguinaldo) 
On May 16, 1898, Aguinaldo boarded the American vessel, "McCullough" for his homebound trip. Agoncillo took over the Junta leadership and to Teodoro Sandico was assigned the procurement of arms, while Vito Belarmino, the handling of the funds. "The first arms transaction arranged by Sandico had ended in disaster. He had entrusted nearly P47,000 to an American in Hong Kong for the purchase of arms which were never bought. The money could not be recovered, for such transactions were illegal and the British regarded arms as contraband. Despite the Junta's views, Sandico arranged a second transaction through an intermediary to whom he paid P60,000 for 2,000 rifles and 200,000 rounds of ammunition. The arms were extremely expensive; included in their cost was the price of the transport vessel and a staggering P12,673 commission for the middleman. In June 1898, Sandico sailed with the arms to Cavite ... " and "... succeeded in delivering the arms" (Bell, 82 citing Taylor, 2:488 extract from PIR, 567.11)
"Despite such internal problems, the Junta procured and shipped more arms to the Philippines. Belarmino reported on June 7, that two consignments consisting of 9,000 rifles and 3,000 cartridges were scheduled to reach the Philippines shortly, but two cannon were left behind in the haste to get the shipment underway." (Bell, 82-83 citing Taylor, 3:245 extract from PIR, 1060.5)
"By the middle of June, the Junta's ability to ship arms was severely hampered, this time from an outside source. The Spanish consul, keeping a close watch, protested the action of the Junta to the Hong Kong authorities. This forced the British officials to take action; they subsequently uncovered a cache of arms and ammunition intended for the Philippines"(Bell, 83 citing Taylor, 3:250 extract from PIR 4.7). This violation of British neutrality resulted in a prohibition of Filipino movement to and from the Crown Colony. Even the American consular launch was searched en route to visit vessels in the harbor. Nevertheless, the Hong Kong Junta struggled on. (Bell, 83 citing Taylor, 3:245 extract from PIR 1060.5.).
"In view of the increased vigilance of the British authorities and the difficulty in procuring war materials in Hong Kong, the Junta began to explore other sources of arms. Agoncillo appointed two trusted men, Mariano Ponce and Faustino Lichauco, to go to Japan to ascertain the possibility of enlisting assistance. When the Japanese proved amenable to the idea of selling arms. Ponce and Lichauco made arrangements for the purchase and requested money from the Hong Kong Junta. The original order was for P30,000, which was quickly made available; but the cost of a schooner to transport weapons left only enough money to purchase 1,000 rifles. Since the cost of transportation was fixed, Ponce realized the economy of increasing the size of the shipment and accordingly requested additional funds. Through an oversight, the check which the Junta sent to Japan was not transferable, and could only be cashed in Hong Kong on the due date. The remittance had to be returned and exchanged for cash. In the meantime, the Japanese, who were ready to conclude the transaction, requested P200,000 to be deposited in the Yokohama Specie Bank. Since the Filipinos in Yokohama did not have this sum, they delayed, waiting for the cash to arrive from Hong Kong. Meanwhile, open hostilities had broken out between American and Filipino forces. Thereupon the Japanese, not wishing to be involved, suspended the transaction." (Bell, 83-84 citing Epistola, 30-31.)
"Two more feckless attempts were made to purchase guns from the Japanese. In April 1899, a vessel loaded with arms sank in a typhoon a hundred miles from Shanghai. A second shipment could not be landed in the Philippines due to the vigilance of American coastal patrols, now alert to Filipino attempts to import arms. It was diverted to Formosa and eventually transferred to the Chinese mainland where it fell into the hands of supporters of the Chinese revolutionary, Sun Yat-Sen (Bell, 85 citing Agoncillo, 320; PIR, 399.1; Epistola, 31-32; Alip, 48). Despite its officially neutral policy, Japan did support the Filipino cause. A number of Japanese veterans of the Sino-Japanese War volunteered to fight for the Filipinos; cloth, uniforms, and a few weapons were also obtained. Newspapers and officials were generally in favor of Philippine independence; a few even criticized alleged American imperialism. "(Bell, 85 citing Alip, 33-38).
Upon arrival in Cavite on May 19, 1898, Aguinaldo immediately set to work to organize the revolutionary forces. "I promptly gave orders for the distribution of the arms which had just arrived, sending some to various provinces and reserving the remainder for the revolutionaries of Kawit, the latter being smuggled into the district of Alapang during the night of 27th May. The next day (28th May 1898), just when we were distributing arms to the revolutionists of Kawit, in the above-mentioned district a column, composed of over 270 Spanish Naval Infantry, appeared in sight. They were sent out by the Spanish General, Sr. Pena, for the purpose of seizing the said consignment of arms. Then it was that the first engagement of the Revolution of 1898 (which may be rightly styled a continuation of the campaign of 1896-97) took place. The battle raged from 10 a.m. to 3 p.m., when the Spaniards ran out of ammunition and surrendered, with all their arms, to the Filipino Revolutionists, who took their prisoners to Cavite. And so the Revolution progressed, triumph following triumph in quick succession, evidencing the power, resolution and ability of the inhabitants of the Philippines to rid themselves of any foreign yoke and exist as an independent State, as I affirmed to Admiral Dewey and in respect of which he and several American Commanders and officers warmly congratulated me, especially mentioning the undeniable triumphs of the Philippine Army as demonstrated and proved by the great number of prisoners we brought into Cavite from all parts of Luzon. In conformity with my orders issued on the 1st of September, all Philippine vessels hoisted the national flag, the Marines of the Filipino flotilla being the first to execute that order. Our little flotilla consisted of some eight Spanish steam launches (which had been captured) and five vessels of greater dimensions, namely, the Taaleno, Balayan, Taal, Bulusan, and Purisima Concepcion. These vessels were presented to the Philippine Government by their native owners and were converted by us, at our arsenal, into gunboats, 8 and 9-centimetre guns, taken from the sunken Spanish warships, being mounted on board. Ah! what a beautiful, inspiring joyous sight that flag was fluttering in the breeze from the topmasts of our vessels, side by side, as it were, with the ensigns of other and greater nations, among whose mighty warships our little cruisers passed to and fro dipping their colors, the ensign of Liberty and Independence! With what reverence and adoration it was viewed as it suddenly rose in its stately loneliness crowning our victories, and, as it were, smiling approvingly upon the undisciplined Philippine Army in the moment of its triumphs over the regular forces of the Spanish Government! One's heart swells and throbs again with the emotions of extreme delight; the soul is filled with pride, and the goal of patriotism seems well-nigh reached in the midst of such a magnificent spectacle!" (Aguinaldo, 24-26) 
In conclusion, Albert Sonrichsen, who was arrested on January 27, 1899 together with American soldiers dressed in civilian clothes for taking photographs inside Filipino lines and who was later hired by the Filipinos to teach in a school in Vigan, and had written about the the Biak-na-bato peace agreement said: "The 400,000 pesetas already received remained in a Hong Kong bank and was afterward used to purchase arms and ammunition, but never have I heard any Filipino accuse Aguinaldo of misappropriating one cent of the money." (Philippine Information Society v1 n1, 35)
Sources:
1. Bell, Ronald Kenneth: "The Filipino Junta in Hongkong, 1898-1903: History of a Revolutionary Organization", San Diego State University, 1974;
2. Taylor, John R. M.: "The Philippine Insurrection Against the United States, 5 vols. (Pasay City, Philippines: Eugenio Lopez Foundation, 1971);
3. U.S., War Department, Philippine Division, Philippine Insurgent Records (PIR), 1896-1901 With Associated Records of the United States War Department 1900-1906;
4. Corpuz, Onofre D: "Saga and Triumph", University of the Philippines Press, 2002;
5. Agoncillo, Teodoro: "Malolos: The Crisis of the Republic", University of the Philippines Press, 1997;
6. Epistola, S. V.: "The Hong Kong Junta," Social Studies Humanities Review, 13 April 1970;
7. Alip, Eufronio M.: "Philippine-Japanese Relations", (Manila: Alip and Sons, Inc.), 1959;
8. Aguinaldo, Emilio: "True Version of the Philippine Revolution" (a translation from Spanish "Resena Veridica de la Revolucion Filipina"), Tarlak, 1899;
9. Philippine Information Society: "Facts About the Filipinos", vol.1, no.1 ; and
10. Philippine Information Society: "Facts About the Filipinos", vol.2, no.1.
#TUKLAS


This post first appeared on Aguinaldo - A Tarnished Hero, please read the originial post: here

Share the post

What happened to the Biak-na-bato money?

×

Subscribe to Aguinaldo - A Tarnished Hero

Get updates delivered right to your inbox!

Thank you for your subscription

×