Office of the President of the Philippines

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Part of The American Chamber of Commerce Journal

Title: Office of the President of the Philippines
Language: English
Year: 1949
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Fulltext: The Business View A monthly review of facts, trends, forecasts, Office of the President of the Philippines From an Official Source FEBRUARY 1 — Governor Miguel Cuaderno of the Central Bank states that engineers of the Haza Engineering Corporation of Chicago, are to be brought here by the National Power Corporation to prepare the specifications for the bidding soon to open for machinery and equipment needed for the Ambuklao project in Northern Luzon and that this is a for ward step in the consummation of the £30,000,000 loan from the World Bank. The Cabinet is reported to have decided to use the Naval Patrol, if necessary, to stop illegal dyna mite fishing. Feb. 2 — President Elpidio Quirino is reported to have asked Vicente Sabalvaro, general manager of the National Development Company, who recently submit ted his. resignation, to stay on the job. The President assures a delegation of the Minda nao Abaca Planters Association that the Government is determined to aid the abaca industry. The Asso ciation has asked for a loan of £35,000,000, to be fin anced by the Reconstruction Finance Corporation and the Philippine National Bank, for an expansion pro gram. Dr. Gabriel Manalac, chairman of the National Committee of the UNESCO, just returned from the. Beirut, Lebanon, conference, states that UNESCO will continue aid to the Philippines in the form of scien tific equipment, books, etc. During the past 3 years the Philippines has received over £4,000,000 worth of such aid. Feb. 3 — Dr. Maurice Stack, head of the Social Security section of the International Labor Organ ization, Commissioner of Public Welfare Asuncion Perez, and Dr. Jorge Bocobo, members of the Social Security Study Commission, have submitted their re spective reports to the President, understood to in clude proposed legislation. Under-Secretary of Foreign Affairs Felino Neri states that holders of Philippine diplomatic passports upon their return home are not entitled to courtesies of the port except in certain specific cases. Exemp tion from customs inspection has resulted in a number of notorious cases of smuggling. Feb. 4 — The President, at a Cabinet meeting, is sues instructions to the National Economic Council and the Board of the Central Bank to submit a pro gram to finance expansion of the abaca industry. The President instructs Secretary of Commerce and Industry Cornelio Balmaceda to assume control of the National Coconut Corporation in his capacity as chairman of the Control Committee of the Govern ment Enterprises Council. The President has sus pended Maximo M. Kalaw, the general manager, fol lowing the bringing of a civil complaint against him by Corporate Counsel M. P. Lichauco and has de signated Jose Agudo as acting general manager. He also instructs Mr. Balmaceda to take steps to reduce by Manila businessmen the personnel of the Surplus Property Commission by 50%. Feb. 5 — The National Economic Council ap proves a £115,000,000 financing program for income producing government development projects as re commended by the Monetary Board of the Central Bank. The Council also recommends that National Bank facilities be made available immediately for short-term crop-loans to abaca planters; long-term loans are still under study. The Council recommends, further, that the Government take advantage of the offer of the Supreme Commander of the Allied Powers in Japan (SCAP) to build merchant vessels for the Philippines. The Council rejects the proposal of the Netherlands Government to reduce tariffs on Dutch goods by abolishing the “home-market clause” in the Tariff Act. The City of Cotabato is destroyed by fire, damage being estimated at £8,000,000, with 5,000 persons ren dered homeless. Secretary of Finance Pio Pedrosa orders the can cellation of the examinations for marine officers given by the Board of Examiners in view of a report from the National Bureau of Investigation of an exa mination-question leak. He has requested that all other scheduled examinations be suspended. Feb. 6 — The construction of the Sipocot-LupiDel Gallego road, linking Camarines Sur with Que zon province, is formally begun, the President, some time ago, having released £200,000 for the project. Announced that Vice-Consul Carlos Faustino will leave shortly for Bangkok, Siam, to handle Philippine affairs at. the American Embassy there pending the or ganization of a Philippine Legation. The appointment was made at the request of the American Embassy in view of the increased volume of Philippine work. Feb. 7 — The President receives the U. S. Vete rans Administration mission sent here in connection with the projected hospitals for Filipino veterans. Feb. 8 — The President submits to Congress the budget of the National Government for the 1949-1950 fiscal year, calling for expenditures amounting to £282,698,735, as against an estimated income of £304,000,000. According to the President’s message, the actual operating expenses of the Government will be £249,201,000, but as extraordinary expenses the fol lowing items were added: £6,000,000 for the coming elections, £6,000,000 for the operating expenses of the Philippine Veterans Administration, and some other items for special services not classified as operating expenses of the Government. Said the President: “The previous budgets of the Government since liberation have been characterized by emergency financing. A consider able portion of the income has come from extraordinary sources or from loans... But we have not found it necessary to re sort to this extraordinary financing for the current fiscal year. Nor do we have to exert effort to make other adjustments to balance our present budget. Our yearly income is now much greater, four times greater in fact, than any annual income of pre-war years. However, in terms of purchasing power, this income is comparatively less than our income in the boom year of 1937 or as late as 1940. Mainly for this reason, our expenditures have increased considerably.... “The extraordinary expenses for the proper implementa tion of our general economic development program will be financed by special allocation of funds available as capital in 106 vestment. As they will not be charged against our normal operating income, they are not included in this Budget. “Indiscriminate appropriation of funds is a danger to our financial stability. Except for meeting serious emergencies, it is necessary that appropriations be coordinated with income. For the last two years, for example, the appropriations reached the total sums of P353,611,178 for 1947 and P273,695,182 for 1948. The incomes for the said years were only P303,169,184 and P263,240,575, respectively. It will be noted that if all the amounts appropriated had been spend there would have been registered during the said years deficits of P50.441.993 for 1947 and PIO,454,607 for 1948. To avoid these deficits, the Chief Executive was compelled to suspend the expenditure of many authorized appropriations. “I am confident that through a conservative policy of ap propriation and intelligent control of our expenditures, we will not only maintain a balanced budget but also obtain the max imum economy consistent with efficiency in the public ser vice.” Feb. 9 — The President authorizes the advance of £2,000,000 to the Philippine Veterans Board to as sure continuance of pensions to some 50,000 disabled veterans and widows and indigent parents of deceased veterans. At the end of the year the Board had a balance of something over £605,000, while the iponthly pension payments amount to around £900,000. It is understood that the £2,000,000 will be charged to a deficiency appropriation of £4,000,000 to be recom mended for the purpose. Two members of Congress have introduced a bill calling for an appropriation of £25,000,000 for veterans pensions. Secretary Pedrosa states that a “pay-as-you-go” system of collecting income taxes is being considered by the Department of Finance. Under this plan, em ployers would become virtual agents of the Govern ment and would collect the proportionate monthly tax out of the salaries they pay employees. Feb. 12 — The University of the Philippines, re cently moved to the Diliman area, Quezon City, ce lebrates its 40th anniversary and confers on President Quirino the honorary degree of Doctor of Laws. Feb. 14 — The Insular Refining Corporation, sub sidiary of the National Development Company, re opens, with Marciano Angeles as superintendent. The plant has a production capacity of 5,000 100-pound bags of sugar a day. Under the present program, PRATRA supplies the raw sugar and sells the fin ished product both here and abroad. PRATRA gen eral manager Ildefonso Coscolluela states that the price of refined sugar in the local market has been re duced from 55 to 45 centavos a kilo. General Manager Sabalvaro of the NDC an nounces that the pulp and paper mill department of his company will start operation in about a month. It will produce kraft manila paper at a daily capacity of 20 to 25 tons. Two other pulp plants which the NDC is expecting from Japan will be put up, one at Guinobatan, Albay, and the other in Davao. Each will have a daily capacity of 10 tons of pulp which will be sent to the main plant in Manila for process ing. Feb 15 — The President, in an address before the congress of the National Federation of Sugar Planters, states that he hopes the planters will re solve their conflict with the Central owners over the assignment of quotas through amicable means and that they will join them in forming one solid organi zation. He promises that the Government will ex tend liberal crop loans on the basis of 60% of the price of the sugar. Feb. 18 — In a meeting with the President, the Cabinet approves the elimination of middlemen in the purchase by the Government of construction ma 107 terials from SCAP by placing the orders through the Philippine mission in Tokyo instead of through pri vate brokers. It is stated that the Cebu Portland Cement Company has closed a contract for the pur chase of 30,000 metric tons of cement from SCAP. The Cabinet approves also the policy of permitting foreign governments to buy real estate here for the use of diplomatic and consular offices, provided the governments concerned extend a similar privilege to the Philippine Government. The action followed a re quest of the Chinese Consul in Davao to be allowed to buy real estate there for his office and residence. Feb. 19 — In compliance with a ruling of the President, Secretary Balmaceda instructs the People’s Homesite and Housing Corporation to stop the sale of concrete hollow blocks to the public and to con fine its sales to the Government and government cor porations. In agreement with the private manufac turers certain standard prices have been fixed for the blocks. Feb. 21 — Malacanan announces that the Senate has formally delivered the official transcript of Se nate Resolution No. 70 notifying the Chief Execu tive that the Hon. Mariano Jesus Cuenco has been elected Acting President of the Senate, and that this has been received by the Executive Secretary and made a part of the official record. Senate President Jose Avelino tells the press that the 12-man session which elected Cuenco after he had adjourned the Senate and left with his followers, was illegal. Ave lino adjourned the session because of alleged dis order in the gallery while Senator Lorenzo M. Tanada was attempting to file charges against him involving corruption. The National Economic Council, with the Pres ident presiding, approves the project of the National Development Company to buy 3 ocean-going ships from SCAP in line with the Government’s program to expand the merchant marine, taking advantage of an offer by SCAP to construct them at a cost below bids from other foreign bidders. The first ship is scheduled for delivery within 18 months and would be turned over to the De la Rama Lines either on a management, charter, or sales basis, according to conditions at the time. The Council also decides to reconstitute the Board of the National Coconut Cor poration, with Conrado Benitez and Pablo Lorenzo to fill existing vacancies. Jose Agudo will remain in charge during the reorganization. Feb. 22 — The President signs two treaties, one of Friendship and General Relations with Italy and the .other on Civil Rights and Consular Prerogatives with Spain. The President issues a statement declaring that the recent change in the organization of the Senate will not affect the functioning of the Government and that “the stability of this Government is not at stake”. The President appoints Secretary of Finance Pedrosa, Secretary of Agriculture and Natural Re sources Placido L. Mapa, and Budget Commissioner Pio Joven to prepare a plan for the coordination of the administration of all former alien enemy pro perty which has been turned over to the Philippine Government. The Cabinet approves the sending of a delega tion, headed by Under-Secretary Jose Camus of the Department of Agriculture and Natural Resources, to the meeting of the International Rice Commission which will open in Bangkok on March 7. Feb. 23 — The President has instructed Ambas sador J. M. Elizalde to “explore the possibility of re verting the excise tax on coconut oil, estimated at around £120,000,000, to the Philippine Government. The President has also approved Secretary Balmaceda’s recommendation that the issuance of export permits for copra be continued although the Inter national Emergency Food Council has discontinued the allocation of fats and oils because there is now a sufficient supply to meet essential demands. The President directs that all security guards of the Surplus Property Commission be placed under military control and supervision. It is reported that sales amount to some £27,000 a day as against ex penses of £20,000, and the President has urged the Commission to hasten the liquidation of the various depots in order to complete this before the June 30 time-limit set by the United States Government. Feb. 24—The President, in ceremonies at Malacanan and on recommendation of the Women’s Inter national League headed by Mrs. Beatriz P. Ronquillo, in connection with its 10th anniversary, bestows gold medals and certificates of merit upon 5 foreign nation als who have distinguished themselves in service to the people of the Philippines. Mrs. T. H. Lockett delivers to them also impromptu rewards of £1000 each from private donors. The five are Mary E. Polley, of the Bureau of Education; H. Otley Beyer, of the Univer-' sity of the Philippines; Irving Hart, social worker; Mother Damien, Sister of Mercy, at the Culion Le per Colony; and Father Leon Quintelier, pioneer mis sionary in the Mountain Province. Feb. 26—The President signs the Sotto Bill pro viding for the inclusion of the teaching of Spanish in Philippine high schools. Secretary of Finance Pedrosa has issued a me morandum prohibiting finance officials and employees ‘ from gambling and going to gambling places, includ ing horse races, jai-alai, and cockpits. Feb. 27—The President addressing a delegation from the Catholic Women’s League, urges the women of the Philippines to use their influence in helping their menfolk in the Government to raise the standard of morality in the conduct of public affairs. Feb. 28—Thfe National Economic Council dis cusses in general terms the proposed £200,000,000 de velopment program of government corporations and tentatively considers at list of priorities. It also con siders a PRATRA request that it be exempted from paying taxes. The Department of Foreign Affairs announces that the U. S. Economic Cooperation Administration has authorized France to procure $605,000 worth of abaca and $100,000 worth of sisal or henequen maguey from Manila, to be delivered during the 2nd quarter of 1949. The President, to promote freedom of speech, instructs Mayor Manuel de la Fuente of Manila to reserve the part of the Sunken Garden northwest of the City Hall as “Free dom Park” for all public meetings and demonstrations. Banking and Finance By F. C. Bailey National City Bank of Neiv York THE usual financial summary of the reports of Manila banks compiled from reports of the Bureau of Banking is not available for this is sue. The Central Bank issued its first statement as of January 31, 1949. Monetary circulation totalled £694,556,476, made up of all notes and coins outside the Central Bank and including £21,500,000 estimated to have been lost or destroyed as a result of the war. The latter figure was not included in the circulation statements regularly issued by the National Treasur er prior to the establishment of the Central Bank. The last statement so issued showed circulation on December 31, 1948, at £813,501,310. The net de crease results from a change in the compilation of the figures and is accounted for principally by the deli very to the Central Bank of the legal reserves, amounting to £169,351,029, of the various commer cial banks. Against the January 31st circulation the Central Bank reported a total of £714,969,280 in international reserves, of which £712,200,164 was held in U.S. dollars and the balance in gold and other foreign currencies. The Central Bank continues to supply dollar ex change at the following rates: Selling T.T.................................................. P201.00 Selling O/D .............................................. 200.95 The Central Bank has authorized the following rates within which commercial banks may quote to their clients: Selling Buying U.S. Dollars T.T., over $500.00 ... P201.50 P200.50 U.S. Dollars Demand over $500.00 201.375 200.375 U.S. Dollars T.T. and Demand under $500.00 .......................................... 202.00 200.00 At this writing, banks are quoting generally, for prime business, T.T. £201.50 selling, and £200.75 buy ing. American Stock and Commodity Markets By Roy Ewing Swan, Culbertson & Fritz January 28, 1949 to February 28, 1949 SINCE our last review in this column, the New York stock market has been in a steady decline. The high for the period, as measured by the Dow Jones Industrial Average, was 180.39 on Feb ruary 1 and the low 171.10 on February 25. The sharp drop in commodities in early February (see below), rising unemployment, and other indications that a broad adjustment in the American economy is underway, were responsible for the bearish senti ment. Some earnings figures such as the 1948 total of $184,500,000 of U. S. Steel caused short-lived rallies but could not offset such items as declining carload ings, a fourth cut in fuel-oil prices, and General Mo tors’ announcement of price cuts for automobiles. Ma jority opinion is that while the “recession” will spread further, it will be controlled and orderly and in the long run the economy will be sounder with lower prices and a check to inflation. In the first week of February the Rail Average broke into new low ground since July of 1947 there by providing half of a signal, according to the Dow Theory that an extension of the bear market which began in July of last year is to be expected. The sec ond half was provided on February 25 when the In108