Message of The Governor-General to the Eight Philippine Legislature

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Part of The American Chamber of Commerce Journal

Title: Message of The Governor-General to the Eight Philippine Legislature
Language: English
Source: The American Chamber of Commerce Journal Volume 9 (No. 8) August 1929
Year: 1929
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Fulltext: August, 1929 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 15 MESSAGE OF The Governor-General TO THE EIGHTH PHILIPPINE LEGISLATURE Delivered by His Excellency in the Hall of the House of Representatives on July 16, 1929 Gentlemen of the Legislature: Because I have arrived in the Islands so recently, my message to you today will neces sarily be brief and along general lines. I shall from time to time forward other messages to the Legislature with specific recommendations and suggestions for your consideration. As I said in my inaugural address, I sincerely desire to do my part in maintaining a close, cordial, and constructive cooperation with your honorable body. I agree with the farsighted view of the distinguished President of the Senate, Honorable Manuel Quezon, when he said: “It is the duty of both (branches) mutually to respect the powers and prerogatives of each and to seek through a frank and full interchange of views a common ground for action.” I also agree with a similar view expressed by the em inent Speaker of the House of Representatives, Honorable Manuel Roxas: This cooperation, he said, does “not mean either renunciation or abdication by each other of fundamental prin ciples or the surrender of powers recognized by the Organic Law; nor . . . absorption by one of the other, but merely helpful cooperation, thereby insuring the normal functioning of the Government for the promotion of the best in terests of the country.” Accordingly, I shall continue to use the Council of State established by Executive Order No. 130 of my able predecessor, ex-Governor-General Stimson, as an instrumentality for friendly ad visory contact between the executive and legisla tive branches, without in any way affecting the independence and the freedom of action of either branch. Knowing the ability, sincerity and public spirit of the members of the Legislature, I am certain that you also will do your part in maintaining this spirit of cooperation. With such cordial sentiments of good will, our mutual understanding is assured. As you well know, there has been a determined effort recently made in the Congress of the United States to limit the importation of Philip pine sugar. I am strongly opposed to this proposal. The Philippine Commission in the United States is doing very effective work in fighting against its adoption. Many American friends, both in and out of Congress, have worked hard to insure the con tinuation of those trade relations with the United States to which in my opinion the Philip pine Islands are justly entitled. By far the larger part of the American press ably and gener ously supported these efforts. The House of The life of any governor Is difficult extremely, He may not be a loverv or He’s branded as unseemly; He may not play or frisk about Or sing a roguish ditty, He dare not let his waistline out Or diet, more’s the pity; Nor dare he serve into the net Nor volley out of bounds; He may not even swear, and fret Around official grounds; He must not seem to have imbibed (That’s if he has ambitions). His life is tightly circumscribed By countless inhibitions; He may not smuggle opium And risk a fine or prison, Without the dirty dope o’ him Is yours as well as his’n. The poor unfortunate is doomed— What price we pay for glory!—■ To spend his wretched term entombed Within a goldfish dory. L’envoi Please keep this under cover. Lor , I wish I were a governor! —A. R. E. Representatives, after full hearings in the com mittee, at which ex-Governor-General Stimson gave an effective exposition of the facts, registered its emphatic disapproval of the disturbance of the present trade relations between the Philippine Islands and the United States. I hope that the Senate will take a similar wise and just course. This fight has not been without some practical advantages. It has tended to cement the union, in the common cause of the welfare of the Philip pines, of all elements, Filipino and American alike, who have that cause at heart. It has also emphasized the importance of such a sound and progressive solution of the existing economic problems of these Islands as may tend to insure that material prosperity which is so essential to political, industrial, and social well-being and as may also tend to give these Islands, in case a similar tariff question should again arise, that additional active assistance on the part of the business interests of the United States which would be the natural result of increased reciprocal benefits that are susceptible of establishmentj under the existing trade relations. However, we must not fail to heed the danger signals raised by this agitation. The wise sailor avoids the typhoon whenever he can possibly do so. With a world overproduction of certain agricultural products such as wheat and sugar; with an under-production of other food products in the Philippines for current consumption; with an enormous demand in the United States and elsewhere for tropical products which could profitably be raised in the Philippines; it would seem to be only enlightened self-interest to devote our energies, capital, and initiative to the development of profitable products for which there is a great demand, rather than increasing the production of products in which there is already a large oversupply. In other words, wise foresight on the part of Philippine business interests themselves would bring about a diversi fication of crops and a voluntary limitation of an unduly increased production of crops of which there is already a world overproduction. ._■ 4 * Diversification of crops is universally recóg{Please turn to page 17) ACME OF PERFECTION! 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Played And Displayed At OUR COLUMBIA BRANCH 136-138 Escolta, Manila or BECK’S: Escolta IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 7ÍJJ& 'XffiEKIUKN~X¡fUMVi&EüR~'OFlCOMMERfCE General Message of the Governor (Continued from page 15) nized as sound agricultural policy, disastrous consequences of relying solely on one crop have been repeatedly emphasized in the experience of countries or sections of countries which have disregarded the lessons of history. Before it is too late, the Philippines may wisely avoid this danger. Diversification is only good business judg ment. The wise merchant tries to diversify the goods he sells. The careful capitalist di versifies his investments. In the same way, the successful farmer seeks to diversify his crops. He may not make quite as much money in the years when his principal crop is selling at a high price, but he often saves himself from ruin when the price falls to a low level. Even today the Philippine Islands are relying on three crops for some 82 per cent of their total exports. These crops and the products thereof are all vulnerable to competition from similar and identical products from other markets. It is unmistakably apparent that if the Philip pine Islands are not to continue to rely for their exports on an extremely limited variety of prod ucts, all of which are meeting increasingly strong competition abroad, the prime necessity is the development of a more diverse agriculture, bringing into production on a commercial scale many of the now neglected crops which can readily be grown in the Islands and for which there are waiting markets. To mention but a few of these products, the United States alone can consume all the quinine, camphor and coffee that the Islands can produce for many years. Diversification is especially desirable in a rich agricultural country like the Philippines which, although able easily to raise ample supplies for its own needs, imported during 1928 foodstuffs to the value of over P54,000,000. Not only is there need of diversification but also of a fuller development of all our resources. Such an expansion is essential if we are to carry out the public improvements so earnestly desired. The Insular revenues are practically stationary, with urgent needs constantly expanding. That this vital need of increasing the revenues exists was forcefully brought out by a former Secretary of the Interior and Senator, who is now the head of the University of the Philippines, Pres ident Rafael Palma. In a recent speech he said: “Everybody, even the most skeptical, accepts the fact that we have mounting necessities to satisfy, that for lack of resources hygiene, elementary education, our railroads and highways, the irrigation system, the means of maritime transportation, and other elements vital to modern life, have not received the impetus that progress demands; that in the absence of local industries we import numerous articles which we can very well produce here in great abundance such as eggs, rice, canned fruits and fishes, refined sugar, cotton, paper, silk, etc.; that our barrio lacks the attractions and incentives to retain the hands that it needs but which are forced to emigrate to other lands lured by high wages and a more decent existence; that conditions in the towns are sadly antiquated and reveal how primitive still are the ways of living of their inhabitants. We do not need to be The periodic told that we are not keeping abreast of the ' progress of the world, that as yet we are considerably behind other nations in industrial and scientific achievements and that even our agricultural industry proceeds, under the most primitive and crude methods. This is the picture insofar as concerns our public life. Now with respect to the private life the picture is still gloomier. Very few of our people are moneyed people; the great rank and file of our citizens lead a life of abject poverty, of penury that inspires pity and commiseration. They do not have more than is necessary to supply their daily needs, the morrow is ever to them a question mark and a constant worry. To see people under-nou rished and poorly clad is a common sight in our barrios. Whoever would judge and grade our civilization on the social level of our peasants and laborers would form an idea not altogether complimentary to our people.” As long as these conditions exj^t, so long does the responsibility of the Legislature to correct them exist. They can only be corrected by the expenditure of large sums of money. Increased governmental revenues are essential to the future welfare of the Philippines from every standpoint, social, educational, cultural, and moral, as well as physical, commercial, and political. I recommend this whole subject most strongly to the earnest consideration of the Legislature. How the revenues can best be increased is a complicated problem, involving other related problems, such as a careful revision of the system of taxation with a view of realizing fully and effectively our present sources of revenue, and also by gradually increasing ’ the sources from which revenue may be derived in the future. to the people. Yet there are people to whom the words “economic development” immediately raise the bogey of “exploitation”. If “economic develop ment” meant “exploitation,” I should favor fighting it to the finish. I shall never favor the exploitation of the resources or the people of the Philippine Islands either by capital, labor, or politics, foreign or domestic. But the two ideas are not at all synonymous. To develop our waste lands and create new1 wealth for the people and the Government; to encourage industry and thus afford employment for labor; to increase the revenues and thus foster education, sanitation, and public improvements; to furnish opportunities to the great mass of the people to improve their material conditions; these things are not exploitation. They are enlightened statesmanship. How the Philippines can achieve economic development under adequate safeguards against improper influences is a problem which demands the best thought of the Legislature. Leaders of public opinion seem to realize the need for additional capital. To quote again the Senate President: “No country in the world has ever been able to develop economically without the aid of outside capital, and the Philippines can not be the single exception.” The United States, now one of the most powerful economic nations in the world, until very recent years developed its economic resources largely through the assistance of foreign capital. As the national wealth increased, the American people w gradually able to supply their own capital ne< themselves, until today they are no lon¡ borrowers, but have become lenders to otl nations. Their use of foreign capital as instrument to develop the national wealth a 1 Phone CHARTERED BANK OF ina¿d chuisntarali Capital and Reserve Fund....................................... £7,000,000 Reserve Liability of Proprietor.................................. 3,000,000 MANILA BRANCH ESTABLISHED 1872 SUB-BRANCHES AT CEBU, ILOILO AND ZAMBOANGA Every description of banking business transacted. Branches in every important town throughout India, China, Japan, Java, Straits Settlements, Federated Malay States, French Indo-China, Siam, and Borneo; also in New York. Head Office: 38 Bishopsgate, London, E. C. T. H. Fraser, Manager. Manila. The present wealth of the country is obviously not sufficient to provide adequate taxation with which to care for even the most essential needs of today. The expansion must come principally through increasing the wealth of the people. Industry must be encouraged. Idle lands must be brought into cultivation. Improved lands are a valuable asset; idle lands a wasteful liability. Our enormous potential natural resources must be developed. Trade and commerce must be promoted. The Government will then share in the increased prosperity of the people. Only in this way can the pressing and ever-expanding needs of the Government be satisfied. Only through economic development can the Government become self-sustaining and fulfill its duties For Your Electrical Work MORA 2-32-40 MORA ELECTRIC CO., INC. 7 CALLE SODA MANILA, P. I. their encouragement of the cooperation of out side capital did not bring with them any danger of foreign exploitation of the national resources. Nor did it mean any attempt at foreign political domination. I can find no evidence that outside capil clamoring to enter the Philippines for the pui of exploitation. Rather is outside ca hesitant, reluctant, unwilling. Owners of ca are usually very cautious in their investm What they seek and properly demand are a anees of fair treatment, just laws, sound pc and a chance to earn reasonable dividends’ they fear that they will meet with host uncertainty, or unfairness they will seek c1 fertile fields where they will eagerly be i welcome. t The fear of foreign capitalistic dominé would seem to be the unfounded night-mai those who lack a vision of the future. T belittle the Philippine people by intimal that they have not the intelligence, the abil and the courage to cooperate with outside cap without being controlled by it. The economic problem here is two-fold bring capital in and to keep labor from g< out. The solution of the first will materi aid the solution of the second. Unfortunal due to changes in the economic life and tc creased needs without the means of satisf them, our labor is emigrating to other la With economic development will come an creasing demand and need for Philippine la which today is promoting the prosperity c other countries rather than building up the own. It is vitally important to both the prese and future prosperity of the Islands that 1 energies of our citizens should be profita IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL X THE AMI applied here and should not, in xne pre&eni stage of our economic development, be diverted to employment in building up the industries of other lands. Measures adapted to bring about the needed conservation of the Islands’ limited supply of labor may well receive your careful consideration. Where only 2 per cent of the thirty million hectares of public domain have been taken up, where less than 12 per cent of the lands are in cultivation, with ten million hectares of potentially agricultural lands subject to settlement, where enormous natural resources are undeveloped, there would seem to be plenty of opportunities within the Islands, instead of following the will-of-the-wisp of waiting wealth in other lands. Labor is the backbone of industrial develop ment. Capital furnishes the ‘life-blood. Both are necessary for a healthy growth. A sound economic life demands that capital earn reason able dividends which in turn enables labor to be ^profitably employed. If labor is forced to emi grate from the country, and capital is discouraged from entering into the country, economic growth will stop. Capital and labor, two corner-stones on which sound economic development rests, depend largely upon communication and transportation When Telegraphing Use The Radiogram Route <• WORLD IDE IRELESS RADIO CORPORATION OF THE PHILIPPINES 9 PLAZA MORAGA Í 2-26-01 Phones: < 2-26-02 | 2-26-03 for their strength. In the Philippines splendid progress has been made upon a comprehensive system of land communication by the construc tion of good roads. The completion of this system should be carried out as rapidly as funds permit. But another medium of communica tion, of vital importance in a country consisting of thousands of islands, a natural system of high ways built by nature itself, the sea, has been seriously neglected. Other countries, especially the United States, are spending enormous sums to develop their waterways. In the Philippines our laws have in some ways retarded rather than encouraged the development of interisland ship ping. Transportation is the life of trade. If its growth is stunted by restrictive laws, the growth of trade is stunted. If it is encouraged to ex pand, trade will expand. A sound, adequate, modern system of transportation by land, sea, and air is essential to a healthy growth of both foreign and domestic trade. < The report which was made in 1927 by the able Advisory Committee appointed to study this subject is illuminating. It showed that interisland shipping was utterly inadequate; that most of the ships were antiquated, unsa tisfactory, inefficient, and dangerous; that there Always Open JUukival JL were many abuses and discriminations; and that there were inadequate provisions for the safety and comfortable convenience of passengers. Although the recent change in the law, which relieved interisland shipping from its monopolistic control and placed it on a competitive basis, is resulting in substantial improvements, many of the unsatisfactory conditions above described still exist. The Committee very strongly re commended important modification in the law regarding the replacement of tonnage operated by certain foreign owned corporations. These modifications, with appropriate safeguards for Filipino and American interests, would result in bringing immediately into interisland ship ping a considerable number of modern wellequipped vessels. If, however, the improvements which are taking place and which, with proper encourage ment, will take place in interisland shipping are to be used to the best advantage, an adequate system of ports should be developed. An Ad visory Board on Ports and Harbor Improvements, composed of technical and business men, was appointed last year and made a careful survey of port facilities of the Archipelago. The report of this board, as well as the report of the Secre tary of Commerce and Communications, should receive your consideration. The proposal to place all wharfage fees in a special fund for the development and maintenance of insular ports is especially meritorious. The development of interisland shipping and of ports is necessary in order that products of agriculture may reach the domestic and foreign markets expeditiously and cheaply. Agricul ture is, and for many years will be, the basic in dustry of the Islands. Every possible encourage ment should be given to its sound development. The welfare of the small farmer must be our constant care. Upon his prosperity depends the prosperity of the Islands. Merchants, man ufacturers, transportation agencies, banks, dealers in every line of trade, share in his prosperity, suffer with him in his reverses. Upon the land and the use that is made of it, depends largely the future prosperity of the Philippine Islands. The problem of expediting the settlement of the public domain and the prompt registration of land titles continues to be a serious one. Several proposals will be submitted for your consideration by the Secretary of Agriculture and Natural Resources. Among the more im portant are: development of public lands on the sugar central principle, known as the Alunan plan; more rapid disposition of agricultural public lands through the creation of a special re volving fund for the survey, subdivision, and settlement of vacant lands, to be carried out and financed either by the Government directly or in cooperation with private capital. The Secretary of Agriculture and Natural Resources will also present bills designed to protect the forests and to provide a more effective supervision in the Bureau of Forestry; to en courage the development of the mineral re sources of the Islands by liberalizing the law governing investment in more than one mining corporation; exempting exported refractory ores from payment of wharfage taxes; the coordina tion and specialization of agricultural exper imentation; and the promotion of the cattle raising industry by the imposition of higher import duties. In order to encourage agricultural, industrial, and commercial development steps should be taken to supply, preferably through private agencies and capital, the existing need of facil ities for granting small loans to worthy indi viduals of limited means and business enter prises of narrow scope, at fair rates of interest and under reasonable conditions. There should also be a thorough revision of the present laws governing rural credit associations so as to bring them under adequate supervision and control and make them function according to their original purpose. A bank devoted ex clusively to agricultural loans and designed to supplement the work of the rural credit associa tions is another agency needed to encourage agricultural development. An educated public opinion is essential to the success of a democratic form of government. With about 65 per cent of our children of school “3 RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL rn rxuguc i nn aiviimjKJAJN^iiAIYIBHK OF~UOMMERCE age unable to obtain even the most elementary education due to the lack of school revenues, the development of an informed public opinion is difficult of attainment. The keen desire of our Filipino youth for education, always the object of commendatory comment by trained observers, should be gratified as rapidly as funds will permit. Through the generous appropriations of previous years, an excellent system of public schools is now in operation. The large ap propriation made at the last session of the Legis lature in further aid of elementary education has been most beneficial. Gradually school facil ities are being extended, and as rapidly as the income of the Government will warrant, further extension should be made. The first obligation of the public school system is to overcome illiter acy and provide the individual a sufficient knowl edge to enable him to meet adequately his own personal needs and discharge properly his social obligations. In keeping with this principle, primary and intermediate education should have first claim on available Government funds. Secondary and higher education, while impor tant, should not be promoted at the expense of basic training essential for all children. Above the elementary grades, preference should be given to vocational, industrial, and agricultural education. It is gratifying to learn that this principle found recognition two years ago in a liberal appropriation for the promotion of voca tional education. This has done much to sti mulate and develop the excellent vocational work which the public schools have been doing for many years. Further encouragement and finan cial support are needed. We should continue to adjust the educational program so that those who are educated at public expense will be eco nomically efficient. Purely academic education should be supported more and more by those who seek it. Another principle the purpose of ed the mind but the c interest in health edc It is hoped that this phase given generous consideration. Approximately two thirds ,i_ recognized: that ]op not merely t increased 'endable, i will be of i. financial support of the public school system comes from the Insular Government, the rest being provided by the provinces and municipalities. It is believed that there should be a gradual increase in the proportion which is carried by the local entities. In order to enable the provinces and municipalities to do so, there have been proposed from time to time certain bills authorizing ad ditional local taxation, such as an increase in the land tax, an increase in the cédula tax, and the creation of a provincial school fund. Serious consideration of these proposals is desirable. The importance of wholesome recreation in education should not be overlooked. Aside from the physical value, sport has an educational as well as a moral influence. Some lessons can be taught better on the playground than in the school. Fair play, respect for others, self sacrifice, square dealing, honesty, ability to work with others, these fundamental qualities are developed by recreation. Juvenile crime is lessened by properly supervised playgrounds. When the more pressing needs are cared for, our municipalities may well foster the development of their recreational systems. The ability of a country to advance in civiliza tion is largely influenced by the health of its people. Diseases, epidemics, and bad sanitation directly affect progress and prosperity. The evil effects of under-nourishment particularly are often not recognized. Preventive measures are more important than curative, although both are necessary. The achievements in public health and sani tation in the Philippines are well known. There is no more important field of Government ac tivity. It should continue to receive liberal support. It is gratifying to know that special attention is being given to the thorough training of public-health officers by means of the recently established School of Public Health and Hygiene. The Islands are fortunate in that the International Health Board has taken an interest in this work and has contributed so generously to its sup port. On the curative side, very satisfactory progress has been made in the establishment of a system of provincial hospitals. This work should go on. Several years ago the Legislature inau gurated a plan for an adequate institution for the care of the insane. The new Psychopathic Hospital at Mandaloyon is the result.. Several additional buildings should be supplied before the institution is complete. We may take pride in the fact that the Philip pines lead the world in the treatment of leprosy. With the Leonard Wood Memorial Fund for the Eradication of Leprosy, amounting to more than P2,000,000, we should be able to realize still greater achievements. A new leprosy hospital located near Manila is necessary in order to do away with the very unsatisfactory conditions, due to overcrowding and inadequate facilities, prevailing at San Lazaro and to provide an ade quate station for the care and treatment of lepers in this part of the Archipelago. Other diseases taking a heavy annual toll of' human life and seriously impairing the vitality of thousands are tuberculosis, ipalaria, and beriberi. The special activities being carried on with respect to these diseases should be THE POPULAR AND RECOGNIZED “MAYON” COOKING STOVES REGISTERED AND PATENTED BY CIRIACO TUASON The “Mayon” cooking stoves are generally used in all parts of the Philip pines, because they are economical and can take easily the place of any other stove. For sale exclusively in our fac tory at 1174-1188 Agno, Manila. We are obliged to secure a patent for the manu facture of the “Mayon” cooking stoves in order that the public may not be defrauded by the various imitations which are modeled after our noted and exclusive in vention. This is the patent of the “Mayon” cooking stoves which is conceded by the Patent Commis sioner of the United States to Ciriaco Tuason and Sons. We manufacture also different kinds of mosaics tiles, cement pipes and gutters, roof tile, granite imitation, balausters, flower-pots and other articles made of cement for ornamental and miscellaneous purposes. C. Tuason & Sons, Inc. (Founded in MDMXXI) Office and Factory: Phone off. 5-71-29 1174-1188 Agno, Malate Res. 5-44-20 coiiLiuufcu. aiivi adequately supported. The Quarantine Service of the Philippines is one of the most effective in the Far East and deserves credit for having protected the Islands from an invasion of any of the highly communic able diseases which afflict this part of the world. There is great need of an adequate detention station at Mari veles in order that the service may be prepared to handle any emergency. A balanced budget is the keystone of good government. If expenditures habitually ex ceed revenues, that keystone will fall, and with it a good government will fall. The Philipipine Government today is on a sound financial basis. We must be willing to make any sacrifices neces sary to keep it on a sound basis. The Government finances are in good condi tion and the budget is made under a strictly cash basis. The integrity of our credit must be retained, regardless of what desirable improve ments must be eliminated from the budget I cannot agree to any material increase in the total amount fixed in the Budget. There is nothing at present to indicate that 1WJ43 Ciríaco r<5« of COW 3W3 3k jofífróHtw'eniy-sixth March, . w fi r4 < IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL ÍERICAN CHAMBER OF COMMERCE JOURNAL AU2US1 the revenue collections will increase next year. The average annual revenue for the last ten years, including receipts from the currency reserve fund which by its nature are special and not expected to recur, is P76,834,000; the annual average for the last five years is P78,863,000; and the annual average for the last three years is P80,366,000. Therefore, in the absence )f any sure indication of probable increase in collections, it is believed that the estimated income of P80,100,000 for 1930 is the safe limit for the budget. Of this amount the sum of P2,500,000 is proposed to be set aside exclusively for port works, and the balance of P77,600,000 for general expenditures. The budget general fund revenues for 1928 were P85,214,000, an increased of P7,486,000 over 1927. This increase is mainly due to the first payment of P2,853,000 made by the Philipine National Bank on account of the Government’s fixed deposits with said bank which were cancelled in accordance with the jrovisions of the Philippine National Bank Relabilitation Act No. 3174, to the greater collection INSULAR LUMBER COMPANY ♦ Owners and Operators of Sawmills—Planing Mills—Dry Kilns—Box Factory At Fabrica, Occidental Negros, P. I. Production—52 Million Board Feet Annually Manufacturers, Exporters, and Dealers i n Bandsawn Lumber Tanguile Red and White Lauan Almon Apitong Complete Stock of All Sizes Always on Hand, Including Flooring — Ceiling — Siding — Interior Trim — Box Shooks Kiln-dried or Air-dried Manila Office: P. V. O. Building Calle Pureza Cable Address: “ILCO,” Manila Mill Offce: Fabrica Occidental Negros P. I. in import duties due to the heavier importation of rice and textiles, in income tax and in excise tax where kerosene and distilled spirits figured prominently. The budget general fund expen ditures for 1928 were P79,626,000 as compared with P74,346,000 for 1927, or an increase of P5,280,000. This increase is chiefly explained by the purchase of Manila Railroad Company stock in the sum of Fl,000,000 under Act No. 3116, and by the larger amounts expended for public works, postal service, and aid to local governments. The prevailing low prices of our principal products, coupled with the devastations of hemp and coconut plantations caused by the typhoons in the month of November of last year and in the month of May of this year will undoubtedly diminish the purchasing power of the country and this will be reflected in the Government revenues. It is, therefore, reasonable to expect that there will be a general decline in the import duties, income tax, and sales tax. Moreover, the Philippine National Bank will not be able to pay to the Government, on account of the U. S. A. Office: Atlantic Building Philadelphia, Pa. Cable Address: “ILCO,” Philadelphia fixed deposits cancelled, as much this year as it paid last year. Consequently, after a thorough consideration of the various items of the budget general funds revenues, the samé were estimated at P80,362,000 for 1929, or P4,852,000 less than the revenues collected in 1928. The total appropriations authorized for 1929 amount to F80,207,000, an increase of P581,000 over the expenditures in 1928 and P155,000 less than the estimated revenues for 1929. The cash surplus at the close of 1928 was PT3,179,000. Following sound finance principles, it is recommended that this surplus be reserved for the following purposes: (a) To redeem during 1930 the 5^ per cent Manila port works bonds amounting to P12,000,000. These bonds were issued in 1920 and are payable in thirty years but redeemable after ten years. As the rate of interest earned by these bonds is the highest paid by the Philippine Government (usual interest is 4J^ per cent), it is only sound business policy that the same be redeemed promptly. This will also reduce the annual interest charges and will permit the amount saved to be devoted to public improvements hereafter, (6) To provide for the revolving fund authorized to the amount of P5,000,000 for the construction of permanent bridges under Act No. 3500. In accordance with the provisions of this Act, tolls must be charged on these bridges until the cost and in terests thereon are fully covered. The tolls collected are to be paid into the revolving fund and may be expended for the construction of other permanent bridges. By the provisions of said Act 3500 the appropriation of P5,000,000 may be made available in whole or in part at the discretion of the Governor-General and conse quently the entire sum may be gradually com pleted as future surpluses may permit. With regard to public works, the Budget contemplates apprr ”;mately P7,500,000 for general public ’ v2,500,000 for port works. Tb: ' roximately PT0,000,000; .xiat of last year and is believec In considering the amount xor public works it is well to note t ox-ess which has been made during the past Í years. In 1924 the total expendi tures of aAi kinds for the construction of public works was approximately P12,000,000. In 1928 it was P26,000,000. This represents an increase of more than 100 per cent. Considering the slight increase which has been realized in general Government revenues, it would seem that public works have received a very generous share of our income. The total of all expenditures for public works during the past five years reaches the enormous sum of approximately P94,000,000. To this should be added the cost of maintenance and repairs of public works which during the same period amounts to over 5 * 48,000,000. We must realize that with the construction of new public works the annual maintenance charge will necessarily increase and will become a fixed liability against the operation account. Important changes in the banking laws were enacted at the last session. At that time it was recognized that a revision of the various provisions of the law relating to banks and trust companies should be made. This revision has been pre pared and will be submitted for your considera tion by the Secretary of Finance. Many of the suggested changes are of minor character and are submitted for the purpose of clarifying the existing law. Others, however, are important changes and merit careful consideration. This revision will afford additional protection to the public, to the depositors, and to the stock holders, while liberalizing in some respects the powers of these institutions under adequate safeguards. Frequent complaint is heard concerning the character of the tax laws and the method of col lecting taxes. The main complaint has been against the sales tax. This matter has received much consideration in recent years, and valuable reports prepared by the Secretary of Finance and the Collector of Internal Revenue are available. The various commercial organizations as well as representatives of the important com mercial houses have submitted extensive memo randa. It is believed that this subject is so important to the industrial and business interests RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL ■JCHAMBER DF~COMMERCE JOURNAL 21 5 I ,>'.b 1 1 ■ )' a- ■ 1 the Legislature sh tion very early in t‘ . • ds were made in th. e I ist session of the I ed by a Joint Coi • iations, was also ll l l. :-’-.ition with the an : ■ ■ iaws but due to la : ; L.r serious considerate^. -■■■. ¿he uniform Corporation Law ?’ and is designed to facilitate ... nsolidation of corporations. . (> ■' 1ure for accomplishing this is l J ’¡ificult to follow. and independent judiciary . 1. If justice is not equal to so the rich, to the most hum¡o \e most powerful, then justice .ivckery. Judicial officers, from peace to the Chief Justice of ’ are protectors of the rights ’i.e people. io improve the administration improve the administration presented injprevious years, .’ill be submitted by the •. d for your consideration. iportant proposals are: re•.< Court in the handling of appeal cases by the appointudges or the creation of a msferring thp functions of , provincial governor to a ,nted by the Secretary of Nation of the proper Judge amendments to the marriage ! = transfer of Bilibid Prison, S. ■ - mm.S( r > A; ng lie- '• S; . th< I rgc • me.! Gt ru’di' ;••• Co 1 G >pp the she spec, g officer Just -- ’ll reroí. of J m .m:laws i . -M, the c ■ ■ * the er Il brrw.’ The e’O- ten migra c l i:.d go ven / ' i one. ° "••• your < more efi-. laws. quate d Gratil ■■ . _ ing the < v sential p sible by t of two be of the lov for the ei < bridges aim much as st owners of af the Interior re ■< so amended !s against such pv cent of the co I have calle ' 1 which in my o¡-'¡lie ration and whi c . lation. I have to urge upon .<■ will cheerfully gr desire in carrying .• i L 1 ■ / San Ramon Penal Farm, and ,.r. of o her penal farms. •; f i n efficient control of im> ministration of the laws s ¿V serious and complicated •u” of Finance will present for hills designed to * secure úís'j a'ion of the immigration .it mrative need for an adei >c. l for immigrants. ir s teen made in beautify*. la ‘ nd in providing for es' js has been made poscJk-T lg the issue by the city v »<? < :i Pl,000,000 for filling •„ ai < other of P10,000,000 of .1 ji . public buildings and .. so.ee- '.nprovements. Inasimpr enrets largely benefit the ' J - sime, the Secretary of . )• o'is uií.r the law should be <. -pure social assessment <>f o' ’ |l'3S than 60 per Te LTmts. \v. aitcíío Li many subjects ;v; y ó o: mtrnest consideJs. d w'.sc, -no: . active legiscx-c/fir, 1 .’gj program Evt íV - ¿í- official ■l <•r, ■ , •< .¿mee you may j vi’’ j important duties. We are united in seeking but one end, the wel fare of all the people. / In conclusion, I can only reiterate my sincere expressions of good will, my ^arnest desire to cooperate with the Legislature. This is not merely an oratorical gesture. It comes from the heart. Our problems cannot be solved by oratory. As President Coolidge once said, “Government is a practical business which depends largely for its success on sound com mon sense rather than high-sounding phrases.” The problems we must meet are essential Im practical. Upon the practical way in w\b > 0 meet them depends the future welfare of of people. Words cannot solve them. . fir? great patriot Rizal said: “Too many wor » t, little work.” Action, sound, wise, arc -irsighted, is necessary. I have every conr ei. in the ability and the vision of the Legi, to solve these problems. U their solute, offer you again my close, c> dial, constro cooperation. T •V’ Dwight F. Davis, Governor-Get ’• •’ <e Legislature, ■ la, P. J. ^PONOINQ TO *rrrFTTL The Black Butterfly Percy A. Hill By be superstition, or it may be chance ... ma of the people of the Philippines dread . ‘anee of the mariposa negra. To them - . : arbinger of misfortune. Though predGxuixxuni.y black, the mariposa negra has white spots and other small markings. <It is harm less except in its character as a foreteller of ill tidings, appearing as regularly each year as the first wet monsoon. With the fearlessness of butterflies in general, it often forsakes garden foliage and enters houses. It will even perch upon pne’s hand or fly in erratic circles above the head of a pedestrian. It may be this pen chant for familiar contact, as well as its sinister color, which has given the natives their super stition about it. .--Tf something does not happen within twenty-four hours, who con siders himself warned goes about with a gloomy feeling that he has been somehow cheated. Build for PERMANENCE! X I Let Us Help j Cebu Portland *■ Chira Bank Building i •Me f MENTION THE O/• The troubadour, José Garcia, called Pepe, had his superstitions, concerning the number of scales on the legs of his favorite fighting-cock, or marked cards in juego del monte; but he was not in the least troubled by black butterflies. Pepe, whose name might be translated into English as Joe Smith, so common a Castilian cognomen is it, dwelt, during the latter part of the eighteenth century, in the suburb of Santa Cruz, now quite a downtown district of Manila, outside the walls of the old city. He was mar ried to a stout mestiza, Maria, who had brought him no dowry, but had endeavored to compensate the musician for this neglect by presenting him with an addition to the family each year. And for this numerous household rice and vianda, clothes, money for masses, an occasional ride in the rickety coaches of the day, all had to be provided by Pepe from his earnings with his X Don’t make a mistake. “If I had it to do over, I’d use concrete!” How many times you hear such regrets from householders. Another says, “I receive rent enough for my house, but it is not concrete and the upkeep is so much there’s hardly any profit left!” Concrete Is Economy Better appearance, more satisfaction, greater secur ity, lower insurance, and the permanence of rock. You Plan Cement Co. Manila, P. I. 'rBER OF > v VAL