The Philippine economic picture

Media

Part of The American Chamber of Commerce Journal

Title: The Philippine economic picture
Creator: Leon Ma. Gonzales, Leon
Language: English
Source: The American Chamber of Commerce Journal Volume XXIV (No. 12) December 1948
Year: 1948
Rights
Fulltext: The Philippine Economic Picture By Dr. Leon Ma. Gonzales Director, Bureau of the Census and Statistics THE PHILIPPINE eco nomic picture for the fiscal year just terminated (July, 1947-June, 1948), likened to a canvas, is very Rembrandtesque in its light-and-shadow effect. A general economic well-be ing, not to say prosperity, gives the picture an optimis tic glow; but behind the ef fulgence there are sombre shadows that temper the gold of the atmosphere. The bright hues predomi nate. Our financial posi tion was never more favor able, lending effective sup port to the reconstruction and rehabilitation of the country. Most of the major industries, like sugar, min ing, copra, coconut oil, desic cated coconut, abaca, em broidery, etc., have display ed varying degrees of recov ery, all irresistibly forging ahead. Many of the lesser industries have shown simi lar tendencies. Even the cigar industry which used to lag far behind in the march towards full-scale re vival has shown lately per ceptible signs of progress. Monetary circulation has steadily risen. Internal re venue collections, bank loans, building construction, electricity production, real estate sales and mortgages, gross sales of big business firms, — all these reflect a buoyant state of business. The country’s foreign trade broke all previous rec ords, reaching an all-time high of Pl,500,000,000 dur ing the fiscal period under review. And the cost of liv ing had dropped 250 points from 1946. TREND OF GENERAL BUSINESS CONDITIONS Monthly average 1937 — 100 -LEGEND^9 - No dalo available. COMPOSITE GRAPH SHOWING THE TRENDS OF PRODUCTION, FINANCE, AND DISTRIBUTION But the undertones, although not quite so marked, are nevertheless plain. Consider the general discom fort brought by the acute rice shortage. Consider also the unemployment situation, with almost 1,500,000 men out of jobs throughout the length and breadth of these fair isles, with Manila leading with 150,000 still to be gainfully occupied. Add the labor-capital disputes with the attendant loss of productivity from strikes. And throw in the fact that in spite of the big drop in the cost of living index, it is still 3-1/2 times over pre-war and the peso is worth only 28 cen tavos. Altogether, the picture is still conflicting in spite of the sunshine predominating. Much depends on how one looks at it. Surely, the optimists will find the atmosphere rosy, with promise of flowers and birdsong. But our calamity-howlers will see only what their dark glasses will allow them to see. De pending on how dark the glasses. Here is the picture — in figures. 428 PRODUCTION Monetary Circulation :—Money in circulation in the Philippines had steadily climbed since Febru ary, 1947. Opening with P733.7 million in July, 1947, it closed with P810.8 million in June, 1948; or a gain of P77.1 million in 12 months. The last figure is more than three times that of pre-war, and is the sixth highest since liberation. Average monthly cir culation during the year was P793,394.091. BANK DEBITS BANK LOANS,e/e. FINANCE FOREIGN TRADE CAR LOADING GROSS SALES STEAMSHIP FREIGHT 193? I93S 1939 1940 1941 1945 1946 194? W4S LEGEND - No data available Bank Debits: — Withdrawal from personal accounts in banks bear upon the state of general business activity because those withdrawals generally go into circulation. Based on the fort nightly reports of the Bureau of Banking, the monthly debits to the personal accounts in banks underwent several narrow fluc tuations during the year being reviewed. From a low of P98.8 million for July, 1947, the com puted monthly total reached the peak of P125.8 million in January, 1948, third highest since libera tion. Diving abruptly to Pl 10.2 million in March of that year, it rebounded and hit the level of P121 million twice before the fiscal year came to an end. Average for the entire year was P120.5 million, as against P104.5 million for the year previous; or an increase of 13%. Average in 1937, a normal year, was P44 million. Bank Loans, Discounts, and Overdrafts: — This business in dicator followed the trend of monetary circulation. It rose decidedly upward, with only one or two breaks for the entire year. Opening at P308.6 million in July, 1947, the total kept on spiraling until the all-time high of P382.7 million was reached in June, 1948, closing. Average for the year was P364.6 million, as against P164.6 million for the year previous, an increase of 121.5%. Compared with that of 1937, the volume of bank loans, discounts, and overdrafts was nearly 4 times as much. DISTRIBUTION FINANCE *T*HE Finance Index, a composite of monetary circulation, A bank debits, bank loans, and corporate and partnership investments, displayed a clearly stable trend. Compared with that of 1937, with the index at 100, the fiscal year under re view registered the following indices: opening month, 436.5; closing month, 443.3. In between, a low of 399.4 was registered in August, 1947, and a high of 457.6 in June, 1948. Average for the year was 433.3, as compared with 360.7 for the year previous; or a gain of 72.5 points. This strong financial position is attributable to the almost uninterrupted flow of cash payments from United States fe deral sources, including veterans benefit payments, war dam age payments, United States expenditures in various local military installations, expenses of United States civilian of fices, and tourist expenses. Because of them the international balance of payments has been favorable to the Philippines. Corporate and Partnership Investments:—Paid-up capital of newly-registered stock corporations and partnerships during the 12-month period totalled P39,110,474, as against P50,126,946 invested in similar period of the preceding year, or a decrease of Pll,016,472 or 22%. This decline is reflective of the satura tion reached in the merchandising field which, just after libera tion, attracted considerable investments of native capital. It also reflected the heavy drop in prices of many imported com modities, like textiles, due to overstocking. Compared with 1937, however, this particular year’s figure is still higher by 193.7%. Tax Collections:—Collections of internal revenue taxes reached the unprecedented total of P263 million during the fis cal year ending June 30, 1948, as against only P173.3 million of the preceding fiscal year, a gain of almost P90 million, or 52%. Better than any other, this heavy collection was a re flection of a successful business year, which enabled the Gov ernment to finally balance its budget. (Continued on page 452) 129 452 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1948 Index for 1948 Volume XXIV (Continued from page 1,70) Textiles, J. Traynor, pp. 19, 58, 94, 139; J. A. Connor, pp. 175, 220; J. Traynor, pp. 409, 447. Food Products, E. A. L. Best, pp. 218, 303, 348, 408. Legislation, Executive Orders, and Court Decisions, R. Janda, pp. 20, 58, 94, 140, 175; E. E. Selph, pp. 220, 264, 304, 350, 410, 448. Other -Chambers of Commerce Chamber of Commerce of the Philippines, P. J. Ocampo, p. 20. Philippine Chinese General Chamber of Commerce, Yang Sepcng, pp. 22, 141, 178, 411. Spanish Chamber of Commerce, J. M. Rosales, p. 22. Manila Chamber of Commerce, T. J. Harrington, p. 140. Philippine Safety Council, F. S. Tenny, pp. 23, 61, 98, 180, 221, 306, 411. United States Agencies in the Philippines, Official Source, p. 181, United States War Damage Commission,Official Source, p. 222. Diplomatic and Consular List, Official Source, p. 309. Cost of Living Index, Bureau of the Census and Statistics, pp. 25, 62, 99, 178, 268, 311, 354, 413, 466. Trend of Real Wages, Bureau of the Census and Statistics, p. 32. The “Let Your Hair Down” Column, pp. 32, 63, 102, 145, 183, 227, 271, 312, 352, 414, 467. The Philippine Economic. . . (Continued from page 1,29) PRODUCTION REACHING a peak of 261.9 in July, 1947, the Composite Index of Production gave way to season fluctions and dropped bit by bit until the bottom of 172.7 was reached in December, 1947. With the advent of the new year, however, building construction began to reactivate, influencing greatly the index which began to mount gradually until it reached an all-time high of 286.5 in June, The building-construction boom, increased electricity pro duction in Manila and suburbs, and the speedy rehabilitation of the lumber industry, combined to maintain a continuous rise in the composite index of production in November of last year. Even cigar and cigarette, and sugar, mining, em broidery, and fishing showed signs of slow but steady re covery. Building Construction:—The accelerated pace of rebuild ing in Manila is clearly revealed by the statistics. Permit valuations issued during the year reached the respectable to tal of P9,212,895, or an average of P7,061,075 monthly. The corresponding figures for the two fiscal years previous were: 19451946, P25.992.875, monthly average, P2,166,073; 1946-1947, P59,390,790, monthly average, P4,949,733. In 1937, normal year, the monthly average was P627.558 only. Electricity:—Electricity production for the use of Manila and suburbs followed a well-defined rise,—positive indication of a growing public use of electric fluid for numerous electric devices. It also reflected the unprecedented building activity in Manila and nearby localities, particularly, Quezon City suburbs. With 22,795,229 KWH in July, 1947, the monthly production figure rose step by step, with a few minor fluctua tions, until the all-time high of 29,508,704 KWH was reached in June, 1948. Monthly average for the year was 27,661,225 KWH, as compared to 17,142,344 KWH for the fiscal year previous; 9,221,768 KWH for the fiscal year 1945-1946; and 10,873,617 KWH for the year 1947. Ltimber:—Figures of production during the first six months of 1948 show that the lumber industry had reached pre-war output level, indicative of almost complete rehabilita tion. Total output of the fiscal year was 323,832,378 board feet, or an average of 26,986,032 board feet per month, as compared with a monthly average of 18,113,800 board feet for the fiscal year previous, or an increase of 32.9%. In 1937, the monthly average was 26,322,538 board feet. 1 Letter for each Storage Depth II. E. HEACOCK CO. No. 1660 F GO-INCH TOP DESK Width Height The Store of Quality 454 DASMARIRAS • 16th & ATLANTA STS. TEL. 2-79-78 & 2-79-79 TEL. 2-94-89 Sliding Shelves. Removable Partition Center Drawer Convenience Tray. 1 Compressor for Letter Drawer. Lock in center drawer locks all drawers. Tune in on KZPI for the HEACOCK’S TALK OF THE TOWN Program every Tuesday night from 7:30 to 8:00 and on KZRH for the PHILCO HOUR, BING CROSBY SHOW every Wednesday night from 7 :00 to 7:30. enduring this Christmas sman than a GF Flat Top executive Desk and a Good Form Aluminum chair. For beauty and uti lity. GF furniture is smart, practical and long lasting. GOODFORM ALUMINUM OFFICE CHAIRS No. 2327 Height of back front seat .............. Height of seat from floor (Maximum) Height of seat from floor (Minimum) Width of Seat ...................................... Depth of Seat ...................................... Width between arms .......................... December, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 453 Rice and Com:— Disruption of peace and order in the Central Luzon provinces and the series of destructive typhoons which visited the Philippines during the crop year 1947-48, affected adversely the size of the last rice and corn crops. Es timated output of rice during the period was 50,928,480 cavanes of 44 kilos of rough rice or palay, as against an es timated normal yearly consumption of around 60,000,000 cavanes, or a shortage of over a million cavanes. The corn crop harvested was estimated at 9,105,470 cavanes. Compared with the yeai- previous, the last rice crop was 6% more than the 1946-1947 crop, and 3.8% more than that of 1945-1946. Last corn crop, on the other hand, was 9% more than the previous one, and 55% higher than the 1945-1946, Sugar:— Rehabilitation of the sugar industry went on full blast. Twenty-two sugar-central mills were rehabilitated, as against over 40 in operation at the opening of the Pacific War. The latest reported production was 5,537,320 piculs. With 26 centrals grinding, the next harvest is expected to yield about 12,000,000 piculs of centrifugal sugar, 78% of normal pre-war production. Copra:— The 1947-48 crop was 882,780,000 kilos, valued at P379,595,400, as compared to 998,140,000 kilos, valued at P22,743,500, of the year previous. There was a drop of 115,360,000 kilos in the output which, however, was made up by the increased 1947-48 values that averaged P43 per 100 kilos, prewar 5-year average production (1935-1939) was 622,690,000 kilos, valued at P49,253,800, or an average of P7.80 per 100 kilos. Although the prospect of continued high prices not so bright as in last three years, yet this single industry played the part of a shock absorber by minimizing the effect of a high cost of living in various parts of the country. Coconut oil and desiccated coconut output during the fiscal period under review was estimated at 87,405,000 kilos for the first and 46,200,000 kilos for the second, as compared to 68,145,000 kilos and 9,170,000 kilos, respectively, for the fiscal period previous, or an increase of 28% for coconut oil and 404% for desiccated coconut. Abaca:— This is another crop that has contributed much to improve the post-war economy. Relatively high prices for abaca have favored the fiber producing areas, among them Davao, Leyte, and the Bicol provinces. The 1947-1948 crop was 99,462,000 kilos, valued at P52,714,860, as compared with 81,996,800 kilos, valued at P25,891,040 for the previous year. The 1947-48 output was 58% of the pre-war crop (5-year average from 1935 to 1939), or 68% of the 1939 crop. Leaf Tobacco:— The 1947-48 crop was estimated at 345,880 quintals, a decrease of 7,220 quintals from the crop of the year previous, due to typhoons and floods, especially in the Cagayan Valley. Compared with pre-war, the 1947-48 crop was roughly 54% of the 1939 crop. The cigar industry made snail-like progress. The output during the fiscal year totalled 68,339,914 units, as against 56,928,825 units for the year preceding, an increase of 20%. Compared with 1937, the 1947-48 output was roughly 24.2% of that of 1941. The cigarette industry likwise picked up, however slowly, with an output totalling 1,828,922,100 units, as against 1,595,847,460 units of the year previous, or an increase of 14.7%. Compared with 1941, it was roughly 66.8% of that year’s out put. _ Cement:— Stimulated by the building boom, cement pro duction hiked from 1,439,833 bags of the previous fiscal year to 3,305,403 bags for the fiscal year under review, or an in crease of 1,865,570 bags, or 122.6%. Output figures supplied by the National Development Company, however, showed a tendency to decline, a result of keen competition offered by imported cement. Production for June, 1948, totalled only 139,816 bags, lowest, as against 380,316 bags, highest, for the fiscal year being reviewed. Monthly average for the whole year was 275,450 bags, as against 119,819 for the previous year. Textiles:— Production of piece-goods went up from 8,771,000 yards of the previous fiscal year to 11,947,000 yards of the year just terminated, an increase of 36.2%. Yarn pro duction, however, went down from 1,049,000 pounds for the 1946- 47 fiscal year to 412,000 pounds for 1947-48, a drop of 60.7%. Pre-war (1941) production of piece-goods was 11,422,890 yards, and the yarn output that year was 4,224,452. Distilled Spirits and Wines:— Output of alcohol for the 1947- 48 fiscal year was 19,231,190 proof liters, as compared to 6,576,852 proof liters for the year previous; up 191.0%. The growth of the wine output was as striking, from 5,195,760 of the previous fiscal year to 10,965,168 of the 1947-48 fiscal year, or an increase of 111.8%. ' PACIFIC MERCHANDISING« CORPORATION^ John R. Wagner, Pres. ji !* 209 Rosario Manila ij EXCLUSIVELY REPRESENTING.... n i! CORBIN LOCK COMPANY JI ! AMERICAN RADIATOR & STANDARD ![ SANITARY CORPORATION !’ ft NATIONAL CARBON CO, INC. Ji -j “Eveready” flashlights & batteries Ji LINDE AIR PRODUCTS CO., INC. (i ft “Union” Carbide ft | THE PARAFFINE COMPANIES, INC. R “Pabco” Products C J{ AMES BALDWIN WYOMING COMPANY ft BALL BROS. MASON JARS ft WEST BEND ALUMINUM COMPANY j* Jj MALLEABLE IRON FITTINGS CO. ft ft FAIRBURY WINDMILL CO. !j CAPE WELL MANUFACTURING CO. IJ ft SLOAN VALVE COMPANY ft 5! BOMMER SPRING HINGE COMPANY ’• Jj HUBBARD & COMPANY jj ft COLUMBUS COATED PRODUCTS CO. j KEENEY MANUFACTURING COMPANY ft BADGER METER MANUFACTURING CO. ft j! DICK BROTHERS MANUFACTURING CO. U A. B. STRAUB CO. ji ft LIGGETT SPRING & AXLE COMPANY ft V 1 * ft ft •j STEEL PRODUCTS HOUSE FURNISHINGS GENERAL HARDWARE j; PLUMBING 454 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1948 Mining-.— The progress of rehabilitation of the erstwhile prosperous mining industry can be gauged by the production figures of 8 mines which reported a total production of P12158,496 for the 1947-48 fiscal year. This is roughly one-eight of pre-war production. Reconstruction was hampered by lack of sufficient capital, difficulty of acquiring capital goods from abroad for replenishment, and the comparatively much higher cost of labor now than pre-war. The Haussermann-controlled mines and the copper-producing Lepanto Consolidated, how ever, may hike production in 1948 to close to P18 million, bar ring labor strikes and other causes. Fishing:—Reports from the Bureau of Fisheries give a total of 19,717,740 kilos of fish caught by licensed commer cial fishing vessels, 3 tons or over, during the 1947-48 fiscal year. Compared with the catch of 18,640,252 for the fiscal year previous, there is an increase of 1,077,488 kilos, or slight ly over 5%. The figures reveal a gradually declining catch in 1948, which is explained as due partly to a slight decrease in the number of fishing vessels, and partly to the illegal use of dynamite which has rapidly depleted the stock of fish in Philippine waters. DISTRIBUTION 'T'HE Distribution Index, a composite of the foreign trade, A freight movement overseas and by railways, and gross sales of a number of leading firms, underwent some fluctuations after reaching an all-time high of 277.4 points last December. Compared with 100 of 1937, a normal year, there was an in crease of 177.4 points. The year opened with an index of 169.3 and went over the 200-point mark for the first time last November. The last available index, that for March 1948, registered 224.9 points. Foreign Trade:— During the 1947-48 fiscal year, the foreign trade of the Philippines totalled Pl,696,302,396, com pared with Pl,223,770,567 of the fiscal year previous, or an increase of 38.6%. The trade balance, however, was unfavor able to the Philippines, with the total imports almost twice the total exports. As in previous years, the United States do minated the Philippine foreign commerce, its share in the 1947 trade alone being 76.2%, as against 78.7% in 1946, and 72.8% in 1937. For the first quarter of 1948, the total foreign trade was P517,184,894, of which P324,927,550 represented imports and P192,257,344 exports, or an unfavorable balance of P132.670,206. Of the imports the United States supplied 83.71%, and of the exports, it received 58.27%. Freight Movement:— Freight movement at the Port of Manila continued to be intense, with the volume gradually ris ing from the 118,000 tons in July, 1947, to about 180,000 tons in June, 1948, not including over 100,000 tons dischared month ly at the piers for the United States Armed Forces. Lowest monthly freight handled at Manila before the war was 60,000 tons, and highest 85,000 tons. The Manila Railroad Company railway freight, however, was below pre-war, due to heavy war losses in freight cars and locomotives which have not as yet been fully replaced. Average monthly freight during the period under review was 72,008 tons, as against 130,424 tons in 1937. A spurt was noticed beginning 1948, when 133,124 tons was recorded in February, a new high since liberation. The figures, although fluctuating, showed a general upward trend. Gross Sales:— Within narrow fluctuations the combined gross sales and receipts of 10 leading city firms continued to be almost twice that of pre-war (1937). Represented by in dex numbers, the total gross sales of those firms reached the peak of 291.8 points last December, from a low 202.8 registered in August, 1947. A record peak of 257.5 was reached in March of this year, as against 218.8 for March of last year. Total gross sales for those 10 firms for the first quarter of this year averaged P3,853,905 monthly, as against P3,299,279 for the same period of 1947; and P785.606 for the same period of 1946. Real Estate Sales and Mortgages:—Average monthly sales of real property in Manila during the 1947-48 fiscal year was P4,880,521, as compared to P5,388,032 for the correspond ing period previous, down 9.4%. This slight decrease, how ever, was mostly due to the gradual decline in the price of residential lots in Manila. Real estate and chattel mortgages, however, gave a different story. For the former, a total of Pl 10,493,055 was registered in 1947-48, an average of P9,207,455 monthly. This is indirectly a reflection of the boom in the building-construction activity. 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FIRTH-STERLING STEEL COMPANY GARLINGHOUSE BROTHERS GARDNER-DENVER JOHNSON SERVICE COMPANY LINCOLN ELECTRIC COMPANY MARION POWER SHOVEL COMPANY McCRAY REFRIGERATION COMPANY MYSTIK ADHESIVE PRODUCTS PIONEERING ENGINEERING WORKS TUBE TURNS. INC. SMITH WELDING EQUIPMENT COR PORATION WALSH REFRACTORIES CORPORATION YORK CORPORATION Atlantic, Gulf & Pacific Co u Sales Office: 222 Regina Bldg., Escolta Tel. 2-83-64 OF MANILA Engineering Dept. & Shops: Punta, Santa Ana, Manila Tel. 8-63-32 December, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 455 P4,597,334. Chattel mortgages registered in Manila during the year 1947-48 totalled P74,637,929, compared with P27,579,593 for the year 1946-1947, or a tremendous boost of P47,058,336 or 170.6% —a reflection of considerable business activity in motor cars, machinery, equipment, jewelry, and other rcgisterable chattels. Stock Securities:—Stock securities worth P30,692,818 changed hands on the Manila Stock Exchange during the fiscal year, contrasted to only P19,884,070 for the fiscal year pre vious, an increase of PIO,808,748, or 54.2%. Considerable in dustrial securities, in addition to mining shares, were traded on the exchange during the year, an indication that the in vesting public is gradually dispersing available local capital in various fields of enterprise. TRANSPORTATION AND COMMUNICATIONS AN important segment of the Distribution Industry is that of transportation and communications. Motor-vehicle transportation was among the first business enterprises to be fully rehabilitated in the country, followed by airplane trans portation, and lastly by sea transportation. The railroads have been partially restored in regard to rolling stock. The telegraph, radio communication, and mail service is now near ing pre-war standard, but the telephone service still needs considerable new equipment before attaining its pre-war re cord of efficiency. The road system is now being repaired and expanded with the aid of war-damage funds, while the bridges destroyed by war are being repaired as fast as con structions materials arrive from the United States. Motor Vehicles:— At no other time have motor vehicles been more numerous than they are at present. Registration for the first half of 1948 revealed a total of 74,285, or 1,775 less than the total number of motor vehicles registered in 1947. Total pre-war registration (1940) was only about 33,898 vehicles. Of the 74,285 registered up to June 30 of this year, 28,823 were cars, 44,789 trucks, and 673 motor cycles. Manila (with Rizal) had a total registration of 30,436 or 60.3% of the grand total. Reports compiled by the Public Service Commission on bus and taxi operators all over the country revealed a suc cessful operation-year in 1947, as follows: Capitalization, P22,647,269; total operating revenues, P57,101,029; total operat ing expenses, P53,060,856; and net total operating revenues, P5,317,466. Interisland Steamers:— Completely paralyzed by war due to the almost complete destruction of inter-island steamers, inter-island trade received renewed life when the United States Government turned over 44 FS vessels to the Philip pine Government which, in turn, redistributed them among pre-war shipping firms. Since then, additional new steamers have been acquired by shipping operators for their local runs. Then came some 84 more United States navy ships donated to the Philippine Government to improve the local shipping service and for harbor patrol work. The result is that the present inter-island commerce is fast approaching its pre-war volume due largely to timely replacements made by the United States. Air Commerce:— Operations of air transportation com panies during the first half of 1948 showed that the level of the 1947 business may be duplicated this year. The statistics for the half-year are: revenue passengers, 182,112; free passengers, 4,169; hours flown, 30,885.86; miles flown, 4,327,465; passengers mileage, 56,085,218; mail carried, 238,174 lbs., express carried, 5,172.306 lbs. At this rate, estimate for the whole year 1948 will be: revenue passengers, 360,000; free passengers, 8,000; hours flow, 60,000; miles flown, 9,600,000; passengers mileage, 112,000,000; mail carried, 476,000 lbs.; express carried, 11.344,000 lbs. The 1947 operations, on the other hand, gave the following results: revenue passengers 381,248; free pas sengers, 1,466; hours flown, 52,473.66; miles flown, 6,866,027; passenger mileage, 80,186,671; mail carried, 542,378 lbs.; ex press carried, 11,596,121 lbs. SOCIAL CONDITIONS 'T'HE unemployment situation continues to be acute, as r hundreds and hundreds of wage-earners cannot find steady employment anywhere. Pre-war youngsters now of age swelled the number of the unemployed thrown out of work due to the closing of many mining companies, cigar factories, and almost one-half of the sugar central as a re sult of the war. The steady decline of the cost of living has also been temporarily arrested by the seasonal rice-shortage, Contractors prefer... Gilson Morspeed Concrete Mixers/ ENGINEERED for Profitable Performance... These Mixers will deliver more for your money in Capacity... in Speed... in Unfailing Service. Available in 2 sizes: 1. 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General Agents 25 Broadway New York fl fl fl fl fl MANILA VANCOUVER CEBU PORT LAND ILOILO To and From SEATTLE LOS ANGELES and S.AN FRANCISCO To nnd From BOMBAY and CALCUTTA SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Piace, New York 1, N. Y. FROM ATLANTIC COAST PORTS TO MANILA u. s. FROM PHILIPPINES TO HALIFAX and U. S. ATLANTIC COAST PORTS For Particulars Sec: J ROOSEVELT STEAMSHIP AGENCY, INC. fa AGENTS fl 3rd Floor, Trade & Commerce Hide., Juan Luna Tel. 2-82-01 $ jW s’ $ and this will make matters worse in time sufficient supply can be imported from abroad to tide the country over until the next rice harvests come in November this year. Unemployment:— Latest estimates of the unemployed by the Department of Labor have been placed at 500,000 persons, outside of a considerable number of farm laborer. In a sur vey in 1947, the Bureau of Census and Statistics found that about 1,400,000 persons were unemployed, including farm workers who were idle after the busy season in agriculture. In the Greater Manila area alone the number of unemployed may be conservatively estimated at 150,000. Until the country is more widely industrialized or the war-destroyed factories and jnines are fully restored, the demand for labor by in dustrial concerns will continue to remain weak. Industrial Disputes:— During the year 1947 there were 93 industrial disputes registered, 43 of which, with 7,292 workers involved, were threatened strikes and 50, involving 15,759 workers, resulting in stoppage or suspension of work with 363,376 working days or Pl,550,897.94 in wages as the estimated loss. Of the 50 industrial disputes that involved suspension or stoppage of work, 26 resulted in substantial gain for the workers; 8, in partial gain for the workers or in a compromise between the laborers and capitalists; 9, in little or no gain for the workers; and 7 cases still pending. The principal causes of these disputes were increased wage de mands, vacation leave with pay, recognition of the union as the bargaining agency, overtime pay, etc. The Court of In dustrial Relations proved to be a very effective medium in settling disputes. Laborers affiliated with the CLO were involved in many of these strikes, while another big labor organization which was active in labor agitation also was the National Labor Union. Wages:—The post-war high cost of living and the numerous labor strikes generally resulted in the hiking of wages. This is explained by the following table giving the trend of wages of skilled and unskilled workers in Manila during the post-war period as compared with pre-war (1941) : Class of Workers Skilled P2.34 1941 1.24 Unskilled Average Daily Wage Rates I P5.93 " 1945 3.27 P6.76 1946 4.53 P7.68 P7.80 1947 1948(1) 4.66 4.60 ★ 51 $ $ $ SUPERIOR GAS & EQUIPMENT CO. MANUFACTURERS AND MANUFACTURERS’ REPRESENTATIVES Producers of: SUGECO Highest Purity OXYGEN and ACETYLENE GASES “SUPER FLAME” BOTTLED & TANKED GAS For all cooking purposes CARBON DIOXIDE in liquid and solid form For FIRE EXTINGUISHERS, BOTTLED DRINKS and FROZEN FOOD PRESERVATION HYDROGEN GAS For Balloons Distributors of: . NATIONAL CARBIDE WELDING EQUIPMENT & SUPPLIES TAPPAN GAS STOVES with complete Installation & Service Facilities In the provinces, the average daily wage rates for un skilled industrial workers had risen from P2.02 in 1946 to P2.27 in 1947; that for skilled laborers from P3.54 in 1946 to P3.73 in 1947. However, the average daily wage of agri cultural laborers decreased from P2.16 in 1946 to P2.05 in 1917. This is probably due to the oversupply of labor in the Philippines. The laborers employed in public-works projects in Manila received also a raise in their average daily wage rates from P3.74 in 1945 to P3.85 in 1947. Cost of Living:— The cost of living index of wage earners in Manila steadily fell from 603.4 of January, 1946, to 354.3 of June, 1948, a drop of 249.1 points in 2 1/2 years. How ever, from the 100 points of 1941 to the 354.3 points of June, 1948, there is yet a gap of 254.3 to bridge over. It is feared that living costs may continue. Between January, 1946, and June, 1948, the foodstuff index dropped by 388.8 points, the clothing index by 778.8 points, the fuel-light-water index by 80.6 points, and the mis cellaneous index by 171.9 points. The house-rent index was, however, upped by 97.4 points. The purchasing power of the pre-war peso increased from 16 1/2 centavos to slightly over 28 centavos during the period. Land Ownership Distribution:— In furtherance of the social justice program of the Government in progress since pre-war days, a good number of large landed estates have been purchased, broken up into small farms or homesites, and resold at practically cost to bona fide tenants. As of the mid dle part of last February, 21 estates and homsites with an aggregate area of 424,644,372.35 square meters had been pur chased by the Government for the total price of P9,288,852.14. Besides these acquisitions, 9 other haciendas with a total area of 1,567,399.14 square meters and occupied by 1,779 tenants were being expropriated, while 11 others with a total area of 10,754,736.50 square meters and occupied by more than 100,000 tenants were being considered for final purchase or expropria tion. The Rural Progress Administration since its reorganiza tion after liberation up to last February, had received over 250 petitions from separate groups of tenants all over the Philippines requesting the purchase of haciendas by the Gov ernment for the purpose of reselling them in lots of con venient sizes to the said tenants. December, 1948 AMERICAN CHAMBER OF COMMERCE JOURNAL 457 THUS the picture. What are the conclusions? (1) That the financial situation, in general, is sound, made so by the large balances of international payments due the Philippines as a result of war oper ations. (2) That on the basis of pre-war output in the major industries, the coconut and lumber industries are fully restored, rice, sugar, and abaca are twothirds rehabilitated, with mining and tobacco bring ing up the rear. (3) That the business of motor vehicle trans portation, sea transportation, and air transportation are also almost completely rehabilitated. (4) That the problem of unemployment will con tinue to be serious until the important pre-war in dustries, notably mining, cigar, embroidery, and cer tain public-utility enterprises are fully rehabilitated, or else new factory industries are introduced to ab sorb the excess labor. (5) That business in general during the fiscal year, stimulated by an abundance of cash supply and and in spite of a growing buyers’ resistance, is fair ly satisfactory, comparable to that of the year prev ious. (6) That the shortage of our main staple will continue to plague us until we shall have planted enough acreage to rice. (7) That agrarian disputes will even be bigger in the ensuing years unless the social amelioration program becomes effective; and (8) The cost of living will continue to be high. The picture indeed is confused. Much must be seen in perspective. The Three Chrislmasses. . . (Continued from, page 431) children photographed in the Fathers Garden by a Japanese photographer who came into the camp for the purpose on several successive days. The price was P5 for 4 prints, passport size, unmounted. A moving-picture projector was borrowed and a secondrate feature film, a travelogue, and a comic cartoon were shown one night, Christmas week. Neither notes nor gifts were allowed to be sent to the men in the prison-camps, but relatives in Santo Tomas were allowed to file mimeographed check-forms in lieu of notes on which a bare minimum of personal informa tion could be indicated. No notes were received from the men. The midnight mass on Christmas Eve, a tradiSAVE BY SPEEDY CLIPPER CARGO CCJ 1 »/G SAVINGS ON OTHER WEIGHTS AND CERTAIN COMMODITIES, TOO TO RATE per LR. CHICAGO $2.00 CLEVELAND 2.02 DETROIT 2.01 NEW YORK 2.05 PITTSBURGH 2.03 PORTLAND 1.88 SEATTLE 1.88 Take advantage of these new low rates to the U. S. on 100 lbs. or more... 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