Mr. Hay to Mr. Day.

[Telegram.]

The following telegram has been received to-day by Secretary of War:

Manila, October 19.

Adjutant-General, Washington:

Situation Luzon somewhat improved. Influence of Philippinos of education and property not desiring independent government, but hostile to Spain gaining ascendency in revolutionary councils. Believe Spanish residents constantly plotting to inaugurate hostilities between our forces and insurgents. Freedom press permitted, but greatly abused; many articles published entirely devoid truth, have no effect here. Insurgent authority crude, information and application acknowledged by inhabitants in two-thirds Luzon, north. Aguinaldo moderately recognized. Will make endeavors to gain possession of Spanish priests; now treated better than formerly. Do not anticipate trouble with insurgents; promise nothing but enforcement of law, and no encouragement given for American assistance or protection in southern islands; Spanish authority precarious, confined mostly to stations of Cebu; insurgents there not allied to those in Luzon, appear determined to resist Spanish rule, would welcome that of United States. These complications seriously affect interisland commerce and diminish revenue; receipts half million Mexican monthly. Affairs progressing favorably, though sick report increasing, owing mostly to carelessness enlisted men; health of officers good; condition of city and facilities for quartering troops improving. Fevers decreasing; intestinal troubles about same; many slight ailments; smallpox apparently arrested; during month 28 deaths; 8 smallpox, 8 typhoid fever, 5 malarial and intestinal complaints, 3 accidental. Otis.

Hay.