The American period On 4 January 1899, following the defeat of Spain in the Spanish–American War, a new government was born to the Philippines. With instructions from President McKinley, General Otis who commanded the US Army in the Philippines declared that the American sovereignty must be recognized without condition. This was the beginning of the American period.
This island-group did not taken any active part in the revolution against Spain or America. However, after the Filipino–American War, a reactionary group was organized, headed by Patorete of Santa Fe, then still a barrio of Bantayan. Their announced purpose was to resist the invaders, but the armed goons carried a campaign of terror burning the northern part of Santa Fe, plundering and forcing Capitan Miroy and Aguido Batabalonos to join them. This resulted in great fear and tension among the inhabitants.
The condition of the barrios, after the overthrow and immediately preceding the arrival of the Americans, in general, was very far from satisfactory. Sanitation was entirely a stranger; barrio life was dreadful. There were few signs of improvement among the people since their primitive ancestors.
The subdivision of the province of Cebu was developed utilizing the method introduced by Spain. A new provincial law had been enacted in 1895 and necessary appointments were then made. At that time, Bantayan was already organized as pueblo. Santa Fe was organized as such in 1911 and Madridejos in 1917. These pueblos were given a new corporate form under the Municipal Council chosen by a limited native electorate. For the local head of the administration, the title Presidente took the place of the former Gobernadorcillo or Capitan
Committed to the task of administering the newly organized municipal governments were the first presidentes of the three towns comprising the island-group namely: Gregorio Escario for Bantayan, Vicente Bacolod for Madridejos and Casimiro Batiancila for Santa Fe. Political parties were formally organized since the early days of the American regime. Partido Liberal came towards the end of 1900. Pascual Poblete founded the Partido Independista in 1902.
During the administration of Governor-General Luke E. Wright (1904–1906), the public road policy was inaugurated. Little by little the stage trails were changed to roads of more durable construction. Late in 1913 the construction of Santa Fe – Bantayan road began and in 1918 the Bantayan – Madridejos road followed; both were completed in 1924.
Then and now, fishing and farming were important industries of the people, but from the year 1903 to 1925, weaving of piña cloth and the gathering of maguey (agave) fibre were very lucrative pursuits of the people. Over the years demand for these products weakened and died out. At about the same, hand embroidery termed as "spare time industry" came in. A good number of women adopted it and were actively engaged in it for some years. The local output was quite significant. In 1923, because of weak and unsettled market conditions, particularly in Manila, the business gradually disappeared.