The Government

Media

Part of The American Chamber of Commerce Journal

Title: The Government
Language: English
Year: 1953
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Fulltext: The Business View A monthly review of facts, trends, forecasts, by Manila businessmen The Government From Official Sources FEBRUARY 1 — President Elpidio Quirino officially opens the 1953 Philippines International Fair, scheduled to run from this date to April 30. Feb. 2 — The President approves the release of P188.720 for the operation of hospitals, chargeable against the lump-sum appropriation of P807.655 set aside for this purpose. He also authorizes the release of P4,211,335 for the reconstruction or repair of public buildings des troyed by typhoons in 1951 and 1952 in various parts of the country. The Supreme Court rules unanimously that Commonwealth Act 671, enacted shortly after the attack on Pearl Harbor and the opening of war with Japan, has been rendered inoperative by the termination of the emergency it was designed to meet and by operation of the constitutional provision that such delegation of power should be for only a limited period and that therefore the continued exercise of these powers is unconstitutional, and accordingly nullified two recent executive orders (Nos. 545 and 546) appropriating P49,000,000 for public works and typhoon relief. Nine justices held that House Bill 727, which last year repealed the Emergency Powers Act but which was vetoed by President Quirino, served its purpose and should be con sidered as a concurrent resolution withdrawing the emergency powers from the President despite its having been vetoed. Feb. 3 — Malacafian issues a press release stating that the Philip pines was among the 16 nations with forces fighting in Korea, which were given advance notice of President Eisenhower’s decision to end the neutralization of Formosa; the notice was served to the Philippines by the American Embassy through the Secretary of Foreign Affairs. The President issues Proclamation No. 365 declaring the period from February 15 to 21 of each year as National Press Week. He also issues Proclamation No. 364, revoking Proclamations Nos. 358 and 397 of 1938 and 1939 which set aside certain parcels of land for a mili tary reservation and a laborers’ barrio in Baguio. Feb. 4 — The President holds a breakfast conference with Am bassador R. A. Spruance aboard the Apo at which the Eisenhower action with respect to Formosa was discussed; later, President Quirino was reported to have said that “for our defense and security, this deci sion is reassuring.” The President issues Executive Order No. 562 fixing new ceiling prices on imported canned sardines and locally manufactured nails. Feb. 5 — According to a Malacafian press release, of the P37.850,000 appropriated under Executive Order No. 545 issued late last year, only some ?4,000,000 had been released, and that was on the day of the announcement, a few hours later, of the Supreme Court’s decision. Feb. 6 — At a conference with the President, Import Control Commissioner Primitivo Lovina strongly recommends the extension of the life of the Import Control Commission to protect “new and young industries”. The President tells a delegation from the Bicol region that he issued the executive orders appropriating funds for public works and typhoon relief in response to a petition of 56 members of the House, including 10 Nacionalistas, and that he regrets that these, funds have been cut off when they are most needed. Secretary of Public Works and Com munications Pablo Lorenzo reports to the President that of the total appropriation under Executive Order No. 545 of P37,850,000, the President had approved the budgeting of P16.860.765, but that of this amount only P3,810,155 had been released by Fund Release Con trol Committee. Feb. 7 — The President as head of the Liberal Party presides jointly with Speaker Eugenio Perez, President of the Party, at a caucus attended by 7 senators and 33 representatives aboard the Apo, which unanimously decides to support a bill legalizing the appropriations contained in the two executive orders issued by the President to pro vide relief to the typhoon-stricken areas. Feb. 9 — The President in Executive Order No. 563 formally classifies the- newly-created provinces of Zamboanga del Norte and Zamboanga del Sur as first and second class, respectively, based on their estimated annual income. A special committee headed by Secretary of Finance Aurelio Montinola, created by the President to consider the exportation of “C” sugar to countries other than the United States, has recommended, according to a Malacafian press release, that no sugar be exported to other countries until the Philippines has filled its United States quota of 952,000 short tons to the United States and the domestic quota of 280,000 short tons, and that the question of exporting “C” sugar to other countries be held in abeyance until April 15, 1953, when most of the sugar will have been milled and it will be possible to deter mine whether there will be any excess production. Feb. 10 — The President’s son, Captain Tomas Quirino, and his son-in-law, Lieut. Chito Gonzalez of the Air Corps, leave for service in Korea. Feb. 11 — The President issues a proclamation reserving some 8,920 hectares of public land in the municipalities of Angadanan and Echague, Isabela, for settlement under the administration of EDCOR (Economic Development Corps) of the Army, the first of its kind in Luzon. The President issues Executive Order No. 564 fixing the ceiling prices of certain drugs and medical preparations, chiefly biotics. The President receives delegates of the Philippine-Japanese Youth Conference, including a group of four Japanese headed by Miss Hideko Yamamoto; the conference ends a 6-day meet in Manila. Feb. 12 — The President receives a delegation of the National Federation of Filipino farmers, headed by Demetrio Santos, who submits a resolution recommending the purchase of palay by the Government at Pll a cavan. Feb. 13 — Secretary of Foreign Affairs J. M. Elizalde tells newsman that the 19-man reparations committee will complete its work by the end of the month; he states that the $8,000,000,000 reparations claim against Japan dates back to the Osmefia regime but that the only time it came up was during a conference more than a year ago with Ambassador Tsushima; he adds: “I understand this figure was an overall estimate of losses the Philippines had sustained. . . When I presented it, it was never understood by me that it was our demand for payment inasmuch as it is obvious to anyone with knowledge of the economy of the Philippines or Japanese economy that such a huge amount could never be collected. . . The Foreign Office wants to collect the maximum amount which we can get from Japan by stretching and liberalizing Article 14 of the Japanese Peace Treaty, which must serve as the basis of reparations whether the Treaty is accepted or rejected. . ." Feb. 14 — Announced at Malacafian that the President yester day decided to allow Deputy Commissioner of Customs Melecio Fabros to resign and ordered the reprimand of Commissioner of Customs Alfredo V. Jacinto and that he also approved the recommendation of Secretary of Finance Montinola for the separation from the service of four others and the reprimand of three; the action was taken in con nection with the smuggling in of 62 cases of fire-crackers consigned to the Soria Trading Company as fresh butter; the President designated Faustino Sy-Changco, Deputy Budget Commissioner, as acting Deputy Collector of Customs for the Port of Manila and ordered him to carry out a thorough overhauling of the Customs House. The President signs an executive order remitting 50% of the 1952 taxes on real property in Naga. He also issues a proclamation designat ing the period from March 15 to 21 of every year as Philippine Industry Week. Feb. 16 — Announced that the Department of Foreign Affairs is making “much headway” in re-opening trade with former enemy coun tries, including Germany, drafts of proposed trade and financial agree ments between the Philippines and West Germany having been com pleted, similar to the barter agreements with Japan; however, it is pointed out that the establishment of normal diplomatic relations with West Germany must depend on the termination of the still existing state of war and that this could be accomplished by a joint resolution of Congress; such a resolution was introduced last year but was not acted upon for lack of time. Secretary of Public Works and Communications Lorenzo reports to the President that the Bureau of Public Works saved P278.350 by importing 5,000 tons of liquid asphalt direct without the interven tion of dealers and that another 10,000 tons will be ordered; he states the Government would still save money even if the Bureau would have to pay the 2 % import license fee, the 17 % foreign exchange tax, the 7% sales tax, and the 1% municipal tax, all of which have been waived. Feb. 17 — The President receives Toru Nakagawa, chief of the Japanese Mission in the Philippines, who, on invitation, called to pay his respects for the first time since the establishment of the Mission several months ago; he was accompanied by Secretary of Foreign Affairs Elizalde. The invitation followed a similar invitation extended to Jose F. Imperial, head of'the Philippine Mission in Tokyo, and his call on Emperor Hirohito. Members of the visiting 5-man group here to evaluate the work of the Mutual Security Administration for the Eisenhower adminis tration call on Secretary Elizalde; the group is headed by Frank N. Belgrano and the other members are Richard Walberg, William H. Dennick, Stephen Chadwick, and David L. Grove, one of the 11 MSA teams named by MSA Director Harold E. Stassen to find out how the American foreign aid program can be improved. Feb. 18 — The President receives the members of the MSA eva luation group, accompanied by Ambassador Spruance. The President, after a discussion with some 50 student leaders from the Student Councils Association of the Philippines, approves their request that up to 10,000 hectares of land be set aside for settle ment by students in the Rizal Province region now being administered by the National Land Settlement and Development Corporation. “I am glad you have accepted my challange,” he said. “This is your op portunity.” Ang Chio Kio, a fugitive from justice, who seized control of a Philippine Air Lines plane on December 30. shooting the pilot and the 106 purser, later arrested when the plane landed on an island under the control of Nationalist China, is brought back to the Philippines from Formosa to undergo trial. The President signs a number of executive orders reducing the 1952 taxes in Sorsogon and Marinduque. Feb. 19 — The President receives Archbishop Rufino J. Santos, recently appointed to the office by Pope Pius XII; he was accompanied by Papal Nuncio Egidio Vagnozzi. The President also receives a delegation from the Filipino Printers Association, headed by Ramon C. Ordoveza, who presents a resolution requesting the ratification of the ruling recently adopted by the Cab inet that after June 30, of this year, no more Iprimary and intermediate) textbooks printed abroad for use in Philippine public and private schools be permitted entry into the country. Feb. 21—The President authorizes the establishment of formal Philippine diplomatic relations with the Republic of Korea, as recom mended by the Secretary of Foreign Affairs, and at the invitation of the Korean Government; it is anticipated that the President will ac credit Maximino Bueno, Philippine alternate representative to the United Nations for the Unification and Rehabilitation of Korea, as charge d’affaires. Feb. 23 — The second ECAFE (Economic Commission for Asia and the Far East) Conference on Trade Promotion opens a 10-day session in the Manila Hotel, and Secretary of Commerce and Industry Cornelio Balmaceda is elected Chairman of the Conference. In the evening, President Quirino entertains the 200 delegates at Malacafian and voices his welcome. ECAFE Executive Secretary Dr. P. S. Lokanathan expressed the thanks of the delegates for the reception. Foreign Minister Alberto Martin Artajo of Spain arrives in the Philippines on an 8-day state visit on invitation of the Philippine Govern ment. Feb. 24 — The President receives Spanish Foreign Minister Artajo and his entourage. (Official receptions and dinners followed on suc ceeding days.) The President directs Budget Commissioner Joven to dispose of some 25,000 metric tons of Burma and Siam rice bought by the National Rice and Com Corporation to supplement the local production which has shown an unexpected increase; the proceeds will be used to settle the NARIC’S indebtedness to the Philippine National Bank. The President approves the release! of ?5,600,000 for the con struction and maintenance of national and provincial and chartered city roads, streets, and bridges, the sum to be taken from the undis tributed collections of the Motor Vehicle Fund. Feb. 26 — The President accepts the decoration, “Gran Collar de la Orden de Isabel la Catolica”, conferred on him by the Government of Spain through the visiting Spanish Foreign Minister. The Minister also presented him, as a gift to the Filipino people, with a number of items of Rizaliana, consisting of documents about Rizal in Spain. Feb. 27 — The President approves the release of Pl,567,353 for the construction and development of irrigation projects to increase rice production. The President signs an executive order creating a decoration to be known as the "Order of Sikatuna" (commemorating the first treaty— Pacto de Sangre or the "Blood Compact”, between Legaspi and the Bohol Chief Sikatuna, in 1565). The first award is to be made to the Spanish Minister of Foreign Affairs shortly. There will be four ranks in the Order,—Raja, Lakan, Maginoo, and Maharlika. Feb. 28 — The President receives George Peabody, public rela tions counsellor of the Philippine Association in the United States, who reports that while two years ago more than 85% of the news from the Philippines appearing in American newspapers was of an un favorable nature, this has now dropped to less than 2%, based on a 6month survey of over 50,000 news stories. Banking and Finance By W. M. Simmons Manager The National City Bank of New York COMPARATIVE statement Bank ; As of Dec. 31, Assets 1949 International Reserve... . P460.689 Contribution to Interna tional Monetary Fund. 30,000 Account to Secure Coin age..................................... 113,306 Loans and Advances........ 77,047 Trust Account-Securities Stabilization Fund.... — Domestic Securities......... 92,197 Other Assets........................... 20,390 P793.629 of condition of the Central Currency and coins issued total P651,064,057. Black market dollars are quoted about P275. Open market rates on fine tael bars reached Pl20 per ounce on January 20, but have since receded to a present market of Pl 10. Combined balance sheets of all banks as of the end of Decem ber, 1952: (In thousands of Pesos) Liabilities Currency—Notes............. P555.576 Coins............. 74,384 Demand Deposits—Pesos 117,682 Securities Stabilization Fund................................. 2,000 . Due to International Monetary Fund........... 22,498 Due to International Bank for Reconstruc tion and Development. 2,389 Other Liabilities............... 2,636 Deferred Credits............... — Capital................................. 10,000 Undivided Profits.......... 4,464 Surplus................................. — P919.010 As of As of As of Nov. 28, Dec. 29, Jan. 30, 1952 1952 1953 (In thousands of !Pesos). P472.172 P454.157 P451.359 30,000 30,000 30,000 107,570 106,940 106,940 50,180 54,165 54,140 231,857 235,438 235,233 41,428 42,279 41,338 P918.207 P922.979 P919.010 P546.280 P579.584 P561.630 90,309 89,945 89,433 235,135 205,899 219,305 12,233 12,233 20,545 496 497 496 2,383 2,383 2,380 2,811 2,733 3,546 3,652 568 1,199 10,000 10,000 10,000 7,776 12,005 343 7,132 7,132 10,133 Resources Loans and Discounts............................................................ 394,072 Overdrafts................................................................................ 211,960 Cust. Liab. Accept, under L/ C and T. R..................... 105,674 Stocks, Bonds and Other Securities................................ 101,499 Other Real and Chattel Property Owned..................... 2,083 Banking House, Furniture and Fixtures......................... 15,355 Due from Banks.................................................................... 233,097 Cash........................................................................................... 33,602 Checks and Other Cash Items.......................................... 5,237 Other Resources..................................................................... 68,708 Total Resources........................................................ 1,171,287 Liabilities Capital Stock........................................................................... 39,899 Surplus Reserves and Undivided Profits........................ 64,184 Due to Banks......................................................................... 25,036 Cashiers’, Managers’ and Cert. Checks........................... 4,561 Dividends Payable................................................................ 375 Individual Deposits Subject to Checks........................... 304,838 Savings and Time Deposits................................................ 312,054 Deposits of Public Funds................................................... 216,842 Bills Payable........................................................................... 46,199 Other Liabilities..................................................................... 157,299 Total Liabilities........................................................ 1,171,287 (NOTE: The information contained herein has been derived from responsible sources, but the National City Bank of New York assumes no respon sibility for its accuracy). P793.629 P918.207 P922.979 The International Reserves as of January 31, 1952, were as follows: Central Bank International Reserves...................... $225,679,402.00 Net FX Holdings Other Banks.................................. 66,722,446.00 Japan Open Account..................................................... 8,617,523.00 Total...................................................................... $301,019,371.00 This is a decline of $4,857,545 from the preceding month. Manila Stock Market By A. C. Hall Hall, Picomell, Ortigas & Co. January 24 to February 20 DURING the period of this review, with the notable exception of San Mauricio, which advanced sharply on good development news, the mining share market has displayed an easier tendency, with most of the leading issues registering modest losses. The market action appears to be in the nature of a normal technical correction follow ing the previous month’s gain. 107