Lumber review

Title

Lumber review

Creator

Fischer, Arthur

Language

English

Source

The American Chamber of Commerce Journal Volume XIII (Issue No.1) January 1933

Year

1933

Rights

In Copyright - Educational Use Permitted

Fulltext

20 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1933 The general trend of passenger carryings for the month of November showed a slight decrease with no signs of recovery until seasonal spring movement. First class figures show a decrease of about 10 per cent from the previous month, intermediate 20 per cent, and third class 10 per cent. TOBACCO REVIEW By P. A. Meyer Alhambra Cigar and Cigarette Mfg. Co. Total of 1932................................... Total of 1931................................... Total of 1930................................... Total of 1929................................... Total of 1928................................... 18,981,821 20,526,266 20,116,000 24,287,000 18,811,000 The following figures show the number of passengers departing from the Philippines during the month of November: China and Japan............... Honolulu.............................. Pacific Coast....................... Europe via America.......... Straits Settlements............. Europe and Mediterranean beyond Colombo............. America via Suez............... Dutch East Indies............. Australia............................... First Inter- Steermediate age 84 107 2|6 3 2 45 12 12 15 21 3 xx 7 1 1 14 4 6 6 xx xx 10 xx xx 17 1 xx 174 130 313 Mr. W. F. Cawley returned on the President Grant December 1st from a five months vaca tion in the United States and has resumed his position as Assistant Passenger Agent of the Dollar Steamship Line, Manila Office. Mr. J. R. Atkins, Manager of the Shipping Department Warner Bames Company, sailed on the Empress of Canada November 14th for a vacation. Mr. A. MacNeur of the Passenger Depart ment of the Dollar Steamship Line left on the President Grant December 3rd to relieve the Agent of the Dollar Steamship Line at Tokyo. tinations, export of ember 1932 was as Rawleaf: Fur ther large shipments to the Spanish Regie and a purchase by the Japanese mono poly Bureau have brought the Decem ber tobacco export to an exceptionally high figure, but prices obtained, principally on sales to Japan, were low. Shipments to the United States kept within the ave rage figure of the last few months. Classi fied according to des Tobacco during Dec,’s: Rawleaf, Strip ped Tobacco and Kilos Australia............................................ 384 China.................. 6,204 Hongkong......................................... 786 India................................................... 213 Japan................................................. 940,620 North Africa................ 156,804 North Atlantic (Europe)................. 30,542 Spain................................................... 1,215,300 Straits Settlements........................... 2,487 Tonkin............................................... 74 United States.................................... 93,107 2,446,521 Cigars: Exports to the United States have suffered a further reduction and the outlook for the next few months is not very encouraging. Competition among American manufacturer in the “2 for 5 cents” class is very keen. Com parative figures for the the last five years speak for themselves: Year 1932.................................................. 1931.................................................. 1930.................................................. 1929.................................................. 1928.................................................. Average 5 years............................. Cigars 176,294,144 165,193,165 153,572,844 156,600,495 187,360,260 167,804,181 December export to the United States amounted to........ 12,498,070 cigars. LUMBER REVIEW By ARTHUR F. FISCHER Director of Forestry 1 The timber and lum ber exports for the month of October, 1932, was 5,567,968 board feet with a customs-declared value of Pl66,989 as against 7,652,776 board feet with a customsdeclared value of P434,882 for the same month in 1931. There is thus a decrease of about 27% in volume and 62% in value. Compared with the previous month of Anthrax! To vaccinate your carabaos is the cheapest form of insur ance in the Philippines. The cost per animal is neg ligible. Anthrax Simultaneous Treatment Mulford This product has been used by Bureau of Animal Industry for many years • MULFORD BIOLOGICAL LABORATORIES C. S. LOUNSBURY, Representative P. O. Box 300, Manila, P. I. • INSULAR DRUG CO., INC. Distributors 153 Juan Luna Manila, P. I. A lapsed insurance— —does nobody any good. In fact, no businessman will let his policy lapse for even one day. The risk is too great! And yet, Consult CONTRACT PAINT DEPT. Its services are FREE many is the businessman who neglects —actually abandons—buildings to the ravages of exposure, little realizing that unprotected surfaces are as great a risk as a conflagration to the safety of the building. is one of the best PROTECTIVE PAINTS YNCHAUSTI & CO. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 21 Bank Taxes Cause High Loan Interest Rates Here A banker's view of taxation as it affects accommodations to business and accumulation of capital By Allen L. Dwyre Assistant Treasurer, Peoples Bank & Trust Co. Allen L. Dwyre We have all heard the story of the banker with the kindly light in his glass eye. As with most stories of that nature, there is a reason why the banker had that type of a light in his eye. A banker first and always must remember that he is dealing with other people’s money. A merchant with a stock of goods, if not owned outright by himself, at most will not be indebted to more than a couple of dozen concerns in more or less small amounts. But a bank is the conservator of the savings of thousands of indi viduals whose deposits represent the results of sacrifice and denial over long periods of time, and the guardian of the surplus funds and profits accumulated in industry and agriculture. “The poor banker! He borrows money from his depositors at two to four per cent interest and loans it to others at nine per cent and then claims he cannot make any profit!” How many times the bankers have heard the above words or words to the same effect, and in nine cases out of ten, I suppose that the casual listener has agreed with the speaker. I wonder how many realize just why the banker claims that all is not as it appears. NO BANK IS A SAFE BANK UNLESS OVER A PERIOD OF TIME IT IS ABLE TO MAKE A PROFIT. Every depositor should realize that if his bank is not making money and continues in such a condition, his deposits, sooner or later, will be jeopardized. In many banks in the United States, where the bankers have found that by law they are prohibited from charging interest rates above a certain per centage, they have found it necessary to require borrowers to keep on noninterest-bearing demand deposits with them certain portions of the funds loaned to them by the bank. This directly increases the cost of borrowed funds. As yet, the banks in the Philippine Islands have not found it necessary to resort to any such practices. However, we find out here that interest rates are comparatively much higher than it would seem necessary. Why is it that tne banks in the Philippines find it necessary to charge such comparatively high rates of interest in order to make a profit for their efforts? In the opinion of the writer, we do not have to look far for the cause. Banks in the Philippine Islands labor under a tax imposition that in any other up-to-date country would be considered oppressive. A bank operating in the Philippines can actually be losing money (and remember what has been said about a losing bank) and still be required to pay taxes that supposedly should arise out of the profits from its business. For every peso on deposit with a bank in the Philippines, 2/3 of 1 % must go to the Government every year. Add to this burden the additional tax of 1 % per year levied on the capital employed by the bank in the conduct of its business, capital supplied by the stockholders, and add to the above two classes of taxes the further tax on a bank’s income. When these major the year, of which the export was 3,371,648 board feet with a customs-declared value of P82.075, there is noted an increase of 65% in volume and 103% in value. Although the general conditions during the month under review have shown some slight signs of improve ment, slack demand for lumber or timber and low prices still prevail actually. The exports to the different countries as seen in the table below, show that during October, 1932, Japan imported 3,887,656 board feet of timber as against 2,312,920 board feet for the same mctath last year, or an increase of 70%. Our exports, however, with the other important countries show no improvement. Shipments to China decreased 16%, Great Britain 40%, and the United States 98%. It is also noted that six other countries that imported Philippine lumber during October, 1931—British Africa, Canada, Portuguese Africa, Ireland, Nether lands and Hongkong—did not import at all during October this year. The instability of lumber exports to Great Britain has been ac centuated by the weakening in the rate of ex change while the persistent limited business with the United States seems to be due to buyers hesitating to enter into fresh commitments until the market conditions have become normal. While the return to normalcy is not expected to be immediate, there is hope for a bigger demand of lumber from that country next year. As a matter of fact, inquiries are now being received by some lumber firms but the prices offered are too low. However, lumbermen are optimistic that as market conditions in that country continue to improve, lumber business in tho islands is bound to have its share. The actual conditions in the 46 mills show that, production was 10,016,334 board feet, deliveries 11,238,103 board feet and inventories 25,442,595 board feet. For the same month last year, the production was 15,433,309 board feet, deliveries 16,013,270 and inventories 28,938,026, or a decrease of 35%, 30% and 12%, respectively. Compared with the previous month, the production increase 11%, deliveries 11%, and inventories 1%. Although the deliv eries exceeded the production by 11%, it could be seen from these statistical data that stocks on hand are ample to supply the present limited demand. The local trade has shown no indications of revival as yet, and conditions last month con tinued to prevail during the month under review. The following statements show the lumber and timber exports, by countries, and mill pro duction and lumber inventory for the month of October, 1932, as compared with the corre sponding month the previous year. Lumber and Timber Exports for October Destination 193 Board Feet 2 CustomsDeclared Value Japan.......................... .. . *3,887,656 P 64,228 China.......................... ... 1,231,296 65,834 Great Britain............ 387,536 32,239 United States............ 56,816 3,949 Guam......................... 4,664 724 Hawaii........................ British Africa............ Canada....................... Portuguese Africa.. . . Ireland........................ Netherlands............... Hongkong................... 15 Total................. . . . 5,567,968 Pl 66,989 scale, that is. 424 board feet to a cubic meter. Destination 1931 Board Feet CustomsDeclared Value Japan.................... .......... 2,312,920 P 62,297 China............................... 1,457,288 88,309 Great Britain. . . . .......... 650,840 55,346 United States. . . . Guam.................... Hawaii.................. .......... 2,676,712 182,573 British Africa. . . ............ 457,496 36,051 Canada................. ............ 40,280 4,400 Portuguese Africa........... 36,040 4,059 Ireland.................. .......... 12,296 1,017 Netherlands........ ............ 8,480 786 Hongkong............. .......... 424 44 Total........... ........... 7,652,776 P434.882 Note:—*This represents mostly solid log For !,fi mills for the month of October Lumber Deliveries from Month Mills 1932 1931 October......................... 11,238,103 16,013,270 Lumber Inventory 1932 1931 October......................... 25,442,595 28,938,026 Mill Production 1932 1931 October......................... 10,016,334 15,433,309 Note:—Board feet should be used.

pages

20-21

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