Did Aguinaldo Wined and Dined the Biak-na-bato Money?

Aguinaldo had been accused of misappropriating the Biak-na-Bato money for himself and his comrades, allegedly indulging themselves luxuriously in their almost five months stay in Hong Kong - January to May 1898. 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 The principal was eventually withdrawn in several tranches to purchase arms and ammunition that were shipped to the Philippines in support of the second phase of the revolution against Spain that commenced upon the return of Aguinaldo from Hongkong on May 19, 1898.

When the Biak-na-Bato peace agreement was concluded on December 19, 1897, Aguinaldo and eighteen of the leaders of the revolution went on exile to Hongkong as provided in the agreement. Aguinaldo’s intentions in agreeing to disarm the revolutionaries and emigrate to Hongkong is not clear but at least his subordinates did not consider the agreement an end to the revolutionary effort. One of Aguinaldo’s subordinates wrote in October 1898 : 

“As I firmly believed that the peace (Biak-na-bato) whose conditions I do not know, was really only a trap planned by you (Aguinaldo) in order to give an opportunity to re-establish your forces which had grown weak enough and then renew your efforts with greater energy and better equipment. I, on my part, did not suspend my labor of favorably disposing the people to that end and of accumulating the means and supplies for hurrying to the insurgent camp at the first opportunity upon the slightest indication from you or from anyone else empowered to speak with authority.” (Taylor 1:432)

On his arrival, Aguinaldo deposited the draft for P400,000 (Mexican) on the first banking day, on 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 received the amount of 400,000 pesos which he deposited in his name in one of the banks, agreeing with his companions not to touch the money and to live during their exile on the private funds which they brought with them and the interests of the money deposited.  He leased a big house where all his companions, together with the families of those who had any, were given the right to free board and lodging.  Malvar, who came later with his family, stayed there.  Those who preferred to live somewhere were given a monthly pension of twelve pesos each.  Almost all were forced to live in the house which they called General Headquarters inasmuch as with twelve pesos monthly, it was completely impossible to pay for board, lodging and laundry, and still buy cigarettes.  Only those who had private income could do so, and these were few.  The monthly pension of twelve pesos was not extended to those of us who were already in Hongkong when they arrived, irrespective of the reason for their stay in the Colony.  However, none of those already in the Colony when they arrived ever intimated their desire to be helped like those who recently arrived.

"...the revolutionists arrived in December, and inasmuch as they lacked clothes and the climate was cold in that island, each was furnished a woolen suit and a cap.  The woolen suit, according to them, had the advantage of protecting them against cold and was more economical as it saved them laundry expenses.  Aguinaldo at that time probably had not completed 30 years of age and the oldest of his comrades, true revolutionists, could not be more than 30 years old; the majority were mere youths ranging from 27 to 18 years of age who came from families that were not well-to-do.  Some belonged to families with properties, but these properties consisted mostly of farms which, as a result of the rebellion, had remained uncultivated, so that it can be said they were in the same economic situation as those without properties, that is to say, they were equally indigent.  Having undergone great hardship and suffered untold privations in the field, it was to be expected that as young men they would like to have some amusements.

"... because I consider that sacrifices suffered in compliance with a duty are the most natural things in the world, but I could not help but admire those young men as I constantly saw them attired in woolen suits, sleeping on the floor, eating miserably, devoid of all forms of recreation, but always contented, buoyant in spirit and resigned.  Esteban de la Rama told me that the unswerving loyalty that he has always shown to Aguinaldo was due to the fact that when he passed through  Hongkong during that period, he saw the miserable existence of those Filipino exiles which Aguinaldo shared with them, despite the fact that the latter had 400,000 pesos in the bank in his name which he could dispose of for his own personal comfort by a stroke of the pen and yet had abstained from doing it." (Alejandrino, 81-83)

"From January 4 to April 4, Aguinaldo withdrew from the banks 5,786.46 pesos in part interest on the money he had deposited. This was used to pay the expenses of himself and his companions in Hongkong. These expenses were kept at a minimum; the money was drawn and spent by him. If one of the men with him needed a new pair of shoes, Aguinaldo paid for them; if another wanted a new coat, Aguinaldo bought it. Minute accounts were kept, which are on file among his papers... Life was not easy under these conditions. Aguinaldo’s companions were entirely dependent upon him. The most trivial expenses had to be approved by him, and he held them down with a strong hand. They were men living in a strange land, among people whose language they did not speak, having nothing to do but quarrel among themselves...” (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 that 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, 2.1:8)

This idea of a trust fund for use in the renewal of the revolution must have been the primary reason why Aguinaldo and the leaders of the revolution agreed to Pedro Paterno’s proposals for a peace pact. Shortly after Paterno arrived in Biak-na-Bato and laid down his proposal for the cessation of hostilities and payment of indemnity an oath was taken on August 27, 1897, signed by the revolutionary leaders, to wit: 

"1. For the increase and strengthening of the resources of the Government we promise to add to the same our private fortunes. 

2. We will also turn over to the Government Treasury all taxes which we may collect in any town or village. 

3. We will not have the power to dispose of said funds without the knowledge and authorization of the President." 

The oath further provided for punishment to the effect that anyone found violating the oath will give the Government the right to impose a penalty of one or two gunshots in the breast until the violator is dead. (Taylor 1:369)  

While the oath did not specifically mention the Biak-na-Bato money expected to be paid by the Spanish government upon conclusion of the peace agreement because of the need to maintain secrecy, especially outside of the circle of the leaders, it is very clear that a trust fund had been established for the benefit of the revolution with Aguinaldo given the sole power to dispose of.

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)  [Upon his return to the Philippines, Artacho was arrested on orders of Aguinaldo and deported to the interior of Cavite. (KalawT[Memoirs], 469)]

"An important aspect of Aguinaldo's preparations for returning to the Philippines was the securing of arms. For this, Aguinaldo depended upon the 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 that 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 the 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, viz: 

"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-centimeter 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[Version], 24-26)

In conclusion, Jose Alejandrino, who later joined Aguinaldo in Hong Kong had this say:

“There had not been until now in our history another instance of a man who being in a foreign country and in possession of P400,000 (Mexican dollars) in a bank under his name, the equivalent of more than one million pesos now had the integrity and the unselfishness to return to his country to expose his life for an ideal which is the ideal of his people and his race.” (Alejandrino, 217)

Also, Albert Sonrichsen, an American prisoner of war (POW) 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 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, 1.1:35)

SOURCES: 

1.  Aguinaldo, Emilio: "True Version of the Philippine Revolution," Tarkak, P.I., 1899, University of Michigan Library 2005, http://name.umdl.umich.edu/AFJ2298.0001.0014

2. Alejandrino, Jose, "The Price of Freedom (La Senda del Sacrificio), Episodes and Anecdotes about our Struggle for Freedom, original in Spanish, by General Jose Alejandrino, translated into English by Atty.  Jose Alejandrino, prologue by Teodoro M. Kalaw, Manila, 1949

3.  Alip, Eufronio M.: "Philippine-Japanese Relations", Manila: Alip and Sons, Inc., 1959

4.  Bell, Ronald Kenneth: "The Filipino Junta in Hongkong, 1898-1903: History of a Revolutionary Organization," San Diego State University, 1974

5.  Corpuz, Onofre D.: “Saga and Triumph – The Filipino Revolution Against Spain,” University of the Philippines Press and Cavite Historical Society, 2002

6.  Epistola, S. V.: "The Hong Kong Junta," Social Studies Humanities Review, 13 April 1970

7.  Kalaw, Teodoro M.: "The Memoirs of Felipe G. Calderon," The Phillippine Review (Revista Filipina), Volume 4, No. 1, Nieva, Gregorio, ed. Manila, P.I.: G. Nieva [etc.]; University of Michigan Library 2005, http://name.umdl.umich.edu/acp0898.0004.001

8.  Philippine Information Society, "The Islands and the People" Boston, Vol. 1, No. 1, May 1, 1901, University of Michigan Library 2005, http://name.umdl.umich.edu/acc6166.0001.001

9.  Philippine information society, "Philippine Review," [Vol. 2, no. 1], Boston, New York, University of Michigan Library 2005, http://name.umdl.umich.edu/acc5041.0002.001

10.  Taylor, John R..M.: "The Philippine Insurrection Against the United States, a compilation of documents with an introduction by Renato Constantino," Eugenio Lopez Foundation, 5 Volumes, Pasay City, Philippines, 1971;
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