The issue  of a new series of Giro  stamps in 1898  was made necessary by   the new  tariff  for  the  stamp   tax on  drafts  provided by the Royal  Decree  of May 29, 1894. Then, in order  to make the issue  of Giro  stamps  again coincide with  the biennial  periods  for which stamped paper was issued, another  new series of Giro stamps, emerald  green in color, appeared on January  1, 1896.

Both Forbin and Bartels,  Foster  and  Palmer  list  a series  of  twenty-one claret Giro stamps  as  issued  in 1897. While definite proof  is lacking, the writer  believes  that this series really was  not issued  until  January  1, 1898.  The writer  has  not  seen  any specimens of   this   issue which   bear cancellations  dated  in  1897. The 5-centimos and  30-centimos  denominations of  this  issue were  still  in circulation at the  time of the American occupation of  Manila  in August, 1898. This  is  proven by  the fact that specimens of  these  two denominations exist with  the handwritten surcharge of the  initials of this  Collector of  Internal. Revenue appointed  by  the U.S.  Military Government in 1898. The  5-centimos and  30-centimos  denominations of  the vermilion  issue  of 1895 were surcharged HABILITADO  PARA  1897. The obvious reason for these surcharges was  the  exhaustion during  1897  of the 5-centimos  and  30-centimos   denominations  of  the  issue which was current during  1897. Since  these  two  denominations  of the  claret series  are known  to have  been still  current  in 1898, the writer  concludes   that the  series  which was  current   in  1897 was the  emerald green series of 1896. It is of course  possible thatthe exhaustion of   the  emerald green  series necessitated  the  premature issue  of  the  claret  series very late in 1897, perhaps in December, 1897, subsequent to the issue  of  the  two  surcharged stamps above mentioned. But  that  the   claret  series  was  not   intended   to be  issued until  January 1, 1898, there  seems  to  be very   little  doubt.

Although he   has  searched  the  files  of   the  Gaceta  de  Manila for 1897, the writer has been unable to   find  a  decree  authorizing the surcharge HABILITADO PARA 1897. The fact that  a decree  of such minor   importance was not  published  is not  at all surprising.  However, the Philippines was seething  with incipient  revolt. The  pages of  the Gaceta are filled with decrees  by which Governor  General Francisco Primo de  Rivera  sought to suppress the  rebellion and  to  punish  the "rebeldes"  (rebels). Officials of  the Department  of Finance were  distracted by the fact that tax collections in the  rebellions  provinces  decreased  so  greatly that  it was necessary to float an internal loan to  provide  funds  for the ordinary expenses of the government as well as for the extraordinary military expenditures occasioned by the rebellion. 

Forbin states  that forgeries  of the 50-centimos and 5-pesos  denominations of  both the dark blue issue of 1888 and   the  claret  issue of 1891 (1890?) were made to  defraud the State. Postage  Stamps  of  the  Philippines by Bartels,  Foster and  Palmer   states that "there are dangerous counterfeits of   some  of  the  value" of   the  claret issue of  1890, and that  "copies are to be  found on  original documents.” The  writer  has  seen forgeries  of  both the 50-centimos and 5-pesos denominations  of  the claret issue of  1890. All specimens which the  writer  has seen bear  cancellations which  indicate that the had actually been  used in payment  of the  stamp tax on drafts. The forgeriesof the claret issue present  a faded appearance,  but  are otherwise  sufficiently  like the  genuine to  escape  any  except the  most careful scrutiny. The writer  mentioned these  forgeries to an elderly chief clerk in  the Archives Division of  the  Philippine Government who had  been employed  as  a clerk by the Spanish Government  prior  to the American  Occupation at   Manila  in  1898.  He correctly described  the faded appearance of  the forgeries and stated that he   believed that they were sold to business  firms of Manila  by an  "estanca" (small shop authorized by the  Government  to  sell  stamps) whichwas located on  the  Escolta,  which  was the principal business street of Manila.  The  writer has  seen one   specimen of the  forgery of  the  dark blue 3-pesos  Giro stamps   of  1888.     The forgery can be distinguished from  the  genuine  by its color, which  is  a dull slate blue.

There  are also many  slight differences  in  the details of  the   labels  and design between  the genuine   and the forgery. The final  "S"  of  PESOS leans to  the right  in the  lower label  of  the  forgery. In the  genuine, this final  "S"  is  erect.  In the  upper  label  of  the  forgery, the  "I"  and "R" of GIRO are  closer together ,  and  the  "R"  and "O"  are  farther  apart than  in  the genuine.  The  cancellation of   this  specimen of  the  5-pesos blue  forgery  indicates  that  it was used on January 11, 1890.  These forgeries,   especially when still  affixed to   the  original  documents  or when  they  bear the  hand stamped cancellation of  the  bank or  business  firm which used  them,  have a  legitimate place  in any collection of  Philippine revenue stamps because they were  actually used  in payment of  the  stamp tax on drafts.

Forbin  lists  eight  denominations  of   the   claret issue  of   1897   (1898?) as  having  been  surcharged,  RESELLADO  1898-99,   within a rectangular  frame. But  in a  footnote Forbin says  "We  do not know whether  these stamps were issued  not  having  seen  them used.”   The writer  has not  seen any  specimens  of   those  stamps. The   "Resellado"  surcharge  has  already been   fully treated  in  the  discussion of  the   "Resellado"  surcharge which  occurs on stamped paper.

Almost  immediately after the   American  forces occupied Manila  on August 13, 1898,  a  United  States Military Government was organized  to take  over  the functions  of the Spanish Government which had surrendered. One of the earliest acts  of thi Military Government was to appoint commissioned officers of  the  American Army  to  the  positions of Collector of CUSTOMS and Collector of  Internal Revenue. Captain C. F. Mudgett  was named Collector of  Internal Revenue; Lieutenant C. S. Haughwout was  named assistant to   the  Collector  and  Lieutenant C. H. Sleeper,  was named  Deputy Collector. These  officials took charge of  the Internal Revenue Department on August 20, 1898, just seven days after the surrender  of Manila.

 The  existing stamp-tax  laws were continued in force with every  little immediate change and the  current  Spanish-Philippine stamped paper and  adhesive revenue stamps were used until the supply was exhausted.  Prior to sale and use,  however, a surcharge was applied to  both stamped paper and adhesive revenue   stamps in order to  indicate the change in sovereignty and to  protect the U.S. Military Government against loss of revenue through the use of any supplies of stamped paper and adhesive stamps which might have fallen into  private hands prior to August 20, 1898. Because no dies for surcharging the stamps were at hand, the first surcharge to be applied consisted  simply of the  hand written initials of the American Collector of Internal Revenue,  his  Assistant, or his  Deputy. These  initials, usually written in red ink, were  CFM written by Captain C. F. Mudgett; CSH written by Lieutenant C.S.  Haughwout  and CHS  written by Lieutenant  C.H. Sleeper. The  initials of only one of  officials, however, were written  upon, each stamp. The  provisional revenue  stamps bearing these handwritten initials according  to  Dr. James  C. Perry, were  first offered, for  sale on August  20, 1898,  and were the only revenue  stamps  in use from  that  date until  January 1899.   New issues  of  revenue   stamps  were  printed and  became  available   in early  1899, but the surcharged provisional  stamps continued to  be used, concurrently with the new  issues, until the supply of  the surcharged stamps was exhausted  late in 1899. [85]