Reviews of July business

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Part of The American Chamber of Commerce Journal

Title: Reviews of July business
Language: English
Source: The American Chamber of Commerce Journal Volume 7 (Issue No. 8) August 1927
Year: 1927
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Fulltext: 26 THE AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1927 SHIPPING NOTES SHIPPING REVIEW By II. M. CAVENDER General Agent, Th. Rob. rt Dollar Comimny The condition of the freight market in the Philippines during the period since our last report carried with it the feeling of stability and firmness. In all directions, particularly so to United Kingdom and Continental ports, the market quite readily absorbed the better part of the normal tonnage on the berth. This is interesting when placed in contrast with the anticipated position during the coming period. Owners fully expect August to be very slack and during the past several weeks have been seeking cargo from other Far Eastern ports for tonnage normally employed with Philippine exports. Owners hold out for only light cargoes until November. Two seasonal sugar fixtures were reported at $7.50 per 2240 lbs. N. W. D. The quantity involved amounted THE YOKOHAMA SPECIE BANK ■ LTD. =^^==^== (ESTABLISHED 1880) HEAD OFFICE: YOKOHAMA, JAPAN Yen Capital (Paid Up) - - - - 100,000,000.00 Reserve Fund . . . . 92,500,000.00 Undivided Profits .... 6,142,357.99 MANILA BRANCH 34 PLAZA CERVANTES, MANILA K. YABUKI Manager PHONE 1759—MANAGER PHONE 1758—GENERAL OFFICE to about 65,000 tons for shipment from Iloilo to U. S. North Atlantic Ports. There were no changes in rates of freight of any significance, rates remaining firm. Passenger travel, • unlike the movement of freight, fell off appreciably. This was to be expected as each year there is a noticeable decline during the months July to November inclusive. Steerage travel is particularly af fected during that period owing to heavy rains which make it difficult to reach Manila and the need of labor in the provinces to carry through the planting season. During July a total of 2447 passengers, all classes, are reported to have departed from the Philippines (first figure represents cabin pas sengers, second figure steerage): To China and Japan 278^460; to Honolulu 14-1180; to Pacific coast 113-335; to Singapore 36-0; to Euiope and miscellaneous ports 31-0. Filipino emigration during the month to Honolulu in creased materially, while the movement to the Pacific coast decreased considerably. The com parison shows: Honolulu, June 734—July 1180; Pacific coast, June 789—July 335. From statistics compiled by the Associated Steamship Lines, there were exported from the Philippines during the month of June, 1927: To China and Japan ports 10,240 tons, with a total of 41 sailings, of which 5,677 tons were carried in American bottoms with 15 sailings; to Pacific coast for Local Delivery 22,605 tons with 11 sailings, of which 22,562 tons were carried in American bottoms with 10 sailings; to Pacific Coast for Transhipment 2,313 tons with 10 sailings, of which 2,229 tons were carried in American bottoms with 9 sailings; to Atlantic Coast, 61,998 tons with 16 sailings, of which 24,954 tons were carried in American bottoms with 5 sailings; to European ports, 13,376 tons with 15 sailings, of which 168 tons were carried in American bottoms with 2 sailings; to Australian ports, 537 tons with 4 sailings, of which American bottoms carried none, or a Grant Total of 111,069 tons with 97 sailings, of which American bottoms carried 55,590 tons with 41 sailings. It is reported that negotiations are in progress for the purchase by private interests of forty freighters belonging to the Shipping Board, not including fourteen which are laid up, of which latter five are in Lake Union at Seattle. The forty include eight vessels operated by the Admiral Oriental Line and twenty-two operated by Swayne & Hoyt, all out of the Sound. The other ten are operated by the Columbia Pacific Shipping Company out of Portland, Ore. As far as is known there are no Sound nego tiators. The Columbia Pacific is considered as a possible purchaser and the Fleischhaker interests of San Francisco as the other. Coast buyers, however, want permission to operate to points not now on the Shipping Board list and to eliminate those restrictions which would force them to continue calls at various ports now made by these ships. The Shipping Board desires to have this restriction extend for the next ten years to come, but a strong minority thinks a five year guarantee in this respect sufficient. The tonnage considered is upward of 375,000. Very often the United States Shipping Board and the Merchant Fleet Corporation (formerly the Emergency Fleet Corporation) are confused in our dealings with Government ships. The United States Shipping Board was created by the Shipping Act of 1916, the preamble of which was as follows: “An Act to establish a United States Shipping Board for the purpose of encouraging, developing, and creating a naval auxiliary and naval reserve and a merchant marine, to meet the requirements of the commerce of the United States with its Territories and possessions and with foreign countries”. The members of the board are appointed by the President, subject to confirmation by the United States Senate, for a term of six years. The Shipping Board is charged with regulatory supervision of the maritime shipping activities of the United States, both governmentally and privately owned and operated. The board is empowered by the Shipping Act to create such corporations and agencies as it may deem neces sary properly to perform the functions and duties assigned to it by law. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1927 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 27 The Emergency Fleet Corporation was created by the United States Shipping Board under the provision of Section 11, Shipping Act of 1916. The name of this corporation was changed to the Merchant Fleet Corporation in the Appro priation Act for the fiscal year 1928. The cor poration is incorporated under the laws of the District of Columbia. The Board of Trustees is composed of the President, Vice President, and five other officials of the Corporation. The Merchant Fleet Corporation acts for and on behalf of the United States Shipping Board as an active agency in the operation of ships and development and maintenance of trade routes, to meet the requirements and to aid in the growth of the commerce of the United States and its Territories. From the foregoing explanations it is plain that The United States Shipping Board is a regulatory body, while The Merchant Fleet Corporation is an active agency operating ships owned by the United States Government. From statistics prepared by the Statistical Division, Merchant Fleet Corporation, released March 1, 1927, we learn that the total value of United States exports to Japan during the fiscal year 1926 was $254,500,000; to China $121,400,000; to the Dutch East Indies and Straits Settlements $26,000,000 and to the Philippine Islands $64,000,000; while imports to the United States from these same regions were, from China $164,200,000, Japan $405,600,000, from Straits Settlements and Dutch East Indies $555,000,000 and from the Phil ippine Islands $109,000,000. The important part in Far Eastern trade with the United States played by the Philippine Islands is most apparent from the reflection of these figures. Senator Villanueva, personally affected by the recent strikes in the Bais, Oriental Negros, sugar district, is trying to have the constabulary probed on grounds of exceeding its authority. SHIPPING PERSONALS R. J. Tozer, who succeeded E. E. Nelson as assistant general passenger agent of the Northern Pacific at Seattle, took up his new duties the first of June. Mr. Tozer formerly was Northern Pacific General Agent in the Far East. J. W. Huck, until recently general agent for the Great Northern Railway in the Far East, with headquarters at Shanghai, accompanied by Mrs. Huck, arrived in the Philippines the early part of July. It is understood Mr. and Mrs. Huck intend to make their residence in Manila. E. C. Bogle, assistant comptroller for The Manila to Ne w York via Suez and Europe See the Old World on your trip home. Stops of several days in many ports. You can travel through Europe and catch our boat for New York via Southampton, England, at Bremen. “The Most Interesting Trip In The World.” NORDDEUTSCHER LLOYD Zuellig & von Knobelsdorff Agents 90 Rosario, Manila Phone 22324 Robert Dollar Company in the Orient, with headquarters at Shanghai, arrived in Manila July 7 aboard the S S President Lincoln and spent three weeks here on business for his com pany. Mr. Bogle sailed July 29 aboard the S S President Madison for Hongkong, where he will spend two weeks before proceeding on to Shanghai. Williamstown Institute has been discussing the Philippines, the round-table discussions being led by Ralston Hayden of the University of Michigan. A number of absurd plans of public administration for the islands have been proposed, none worth mentioning seriously. Two articles on the Philippines appear in the August number of the Review of Reviews. Walter Wilgus writes one, Vicente Villamin the other. AMERICAN MAIL LINE DOLLAR STEAMSHIP LINE COMBINED TRANSPACIFIC SERVICE SAILING ONCE A WEEK The “President” Liners Offer Speed—Service—Courtesy—Comfort Excellent Food, Comfortable Cabins, Broad Decks, American Orchestra, Dancing, Swimming Pool, Sports SAILING ONCE A WEEK TO SAN FRANCISCO AND LOS ANGELES via Hongkong, Shanghai, Kobe, Yokohama, and Honolulu SAILINGS ON ALTERNATE FRIDAYS ROUND THE WORLD Sailings every fortnight President Adams - Aug. 19 President Garfield - Sept. 2 President Harrison Sept. 16 President Monroe - Sept. 30 President Wilson - Oct. 14 President Van Buren - Oct. 28 President Hayes - Nov. 11 VICTORIA AND SEATTLE via Hongkong, Shanghai, Kobe, and Yokohama SAILINGS ON ALTERNATE SATURDAYS 24 Calle David MANILA Telephone No. 2-24-41 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 28 THE AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1927 REVIEW OF THE HEMP MARKET By T. H. Smith Vice-President and General Manager, Macleod Company This report covers the markets for Manila Hemp for the month of July with statistics up to and including August 1st, 1927. U. S. Grades: At the opening of the month shipping houses were offering moderately in New York D, 17-1/2 cents; E, 16-5/8 cents; F, 16 cents; G, 10 cents; H, 9-1/2 cents; I, 141/4 cents; JI, 11-1/2 cents; SI, 15-7/8 cents; S2, 13-3/4 cents; S3, 12 cents; market being fairly steady but business being only of a retail character. Sellers became more reserved in their offerings towards the middle of July with asking prices basis F, 16-1/4 cents; I, 14-3/8 cents; JI, 11-1/2 cents. The reserve of sellers quickly brought buyers into the market and the last week of the month has reflected a firm market in the U. S. although there has not been much activity. At the close shipping houses were offering a fair quantity of hemp basis F, 16-7/16 cents; I, 14—5/8 cents; JI, 11-7/8 cents without finding buyers. The local market for U. S. grades has ruled steady to firm throughout the month, arrivals being readily absorbed by export houses as they came in. Early July there were buyers E, 1’39; F, 1 * 37.4; G, 1 * 22; H, 1 * 21; I, 1’32.4; JI, 1 * 25.6; SI, 1’36.4; S2, P31.4; S3, 1 * 26. Scarcity of offerings and competition in buying by export houses advanced prices gradually by mid July to E, 1’39.4; F, 1 * 38; G, 1 * 22; H, 1’21; I, 1 * 33.2; JI, 1 * 26.4; SI, 1 * 37.4; S2, 1’32.4; S3, P26.4. During the last two weeks of July market showed a further steady appre ciation in values on steady buying by practically all the houses. At the close there were general buyers E, 1’40.4; F, 1 * 39; G, 1 * 22.2; H, I‘21.2; I, 1 * 34; JI, 1 * 27; SI, 1 * 38; S2, 1 * 33.4; S3, P27. Cadwallader Gibson Lumber Company HUNTING IN THE PHILIPPINE ISLANDS—WHERE TO GO AND WHY NOT (Concluded from page 7) Philippine Woods Quality First United States Headquarters Cadwallader-Gibson Co. 3628 Mines Ave. Los Angeles, California and is best stalked at daylight or dusk. In the open hills a high powered field glass would be very useful to locate them on the hill sides. They are best hunted on the west side of Min doro as that side is grassy while the east side is quite well covered with timber and second growth. The open season on tamarao corresponds with that on deer and not more than one may be taken by one person annually. Heads and hides which are worth mounting require more care in the tropics than in colder countries. They should be thoroughly fleshed. The skulls may be fleshed by leaving them in water for three or four days. The hides should be well salted and sprinkled with alum. Arsenic soap rubbed into the tender places is well worth while. Hoofs may be treated with formaline by soaking them in the solution a few hours. There are taxidermists in Manila who do very creditable work. Our duck shooting now is largely a disappoint ment. There are usually great rafts of blue bills on Laguna de Bay, but shooting from motor boats has made them so wary that they will not decoy even in the early part of the season. We hope to correct this before the next season. A caution or two may be in order for visitors. First, don’t omit your mosquito bar from your baggage; and second, don’t fail to use it. Slight wounds are frequently infected and should be treated every night. Carry Iodex and keep it handy. Boil your drinking water to avoid dysentery. And last but not least, treat your native hunters at least as well as you would treat your dogs at home and they will return your kindness many fold. U. K. Grades: London market opened on the dull side with an unsettled market owing to “Bear” operations in the more distant positions, values for July-Sept, shipment being about J2, £43.10; K, £42.10; LI, £41.10; L2, £40.10; Ml, £40; M2, £37.10 with distant positions at £1 per ton discount. Market at mid July ruled steady without much activity. The latter part of the month a firmer market developed in U. K., there being buyers at the close J2, £44; K, £43; LI, £41.10; L2, £41; Ml, £41; M2, £37.10 Aug.-Sept, shipment. Local market for U.K. grades has been firm throughout the month being fairly well supported, by Japanese demand in addition to the support experienced from European sources. At the opening of July values in Manila were J2, 1 * 21.2 ; K, 1’20.4; LI, 1 * 19.6; L2, 1’18.6; Ml, 1 * 18.2; M2, 1 * 17.4; DL, P16.4; DM, 1 * 13; Mid July parcels were changing hands at J2, P21.4; K, 1 * 20.6; LI, 1 * 20.2; L2, 1 * 19.6; Ml, P19.2; M2, 1 * 17.4; DL, P17; DM, 1 * 14 for early del ivery. On scarcity of arrivals market advanced still further until at the close of July business was passing J2, P21.4; K, P21; LI, P20.2 to P20.4; L2, P19.4 to P19.6; Ml, P19.2 to 1 * 19.4; M2, P17.4 to P18 for early delivery. Single grades have changed hands throughout the month at substantial premiums over prices paid for parcels. High grade hemp of approved quality con tinues scarce. Freight Rates: Freight Rates remain with out change. Statistics: We give below figures for the period extending from July 5th to August 1st, 1927, in bales: 1927 1926 Stocks on January 1st. .. . 112,382 153,181 Receipts to Aug. 1st......... 742,106 772,974 Stocks on Aug. 1st............ 138,552 191,492 Shipments To the— To Aug. 1, 1927 Hales United Kingdom............. 194,979 Continent of Europe.. . . 78,363 Atlantic U. S.................. 152,895 U. S. via Pacific............. 77,182 Japan................................ 150,793 Elsewhere and Local.. . . 61,724 up. 2, 1926 150,292 102,046 200,402 92,060135,931 53,932 715,936 734,663THE SITUATION IN COTTON GOODS The cotton goods industry continues its demonstration of a remarkable comeback. A year ago this industry was in the depths of discouragement, with several years of poor business behind, and apparently little to look forward to in the immediate future. Then came the drop in raw cotton which proved to be the spark that has given it renewed life. With raw cotton down to 12 cents a pound, as compared with 20 to 25 cents before last year’s big crop, merchants everywhere began to regain confidence both in the raw material and in cotton goods, and to replenish stocks which had been allowed to run down to the minimum. As cotton has crept upward in price this Spring, confidence has grown, and hand-to-mouth buying of cotton goods has given way in many instances to for ward ordering, and many mills are now well sold ahead for the first time in years. This decided recovery of activity is strik ingly shown in the statistics of the industiyConsumption of raw cotton by domestic mills has reached record breaking levels, exceeding the totals of a year previous in every month since July, 1926, while for the cotton year to date the total shows an increase of 495,342 bales. The figures on spindle activity have shown over-time operations in every month since November, 1926, and at the end of May were at the rate of 109 per cent of single shift capacity, compared with 88.9 per Cent on the corresponding date of 1926. —National City Bank: Current Report. IN RESPONDING ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1927 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 29 TOBACCO REVIEW By P. A. MEYER Alhambra Cigar and Cigarette Manufacturing Co. Raw Leaf: The re duction in exports is due to decreased ship ments to Spain and the temporary elimination of France as a buyer. Larger orders have been placed by Japan, part of which being destined for transhipment to Korea. Judging from present indications, the Cagayan and Isabela crops appear to be in ferior to last year’s in quantity as well as quality. In view of this fact the market in local grades of previous crops has been showing some activity. Leaf Tobacco and Scrap. Kilos. 1,442 12,630 11,489 25,116 55,526 422,020 875,196 7,517 78,877 Australia.............................................. China.................................................... Germany.............................................. Holland................................................ Hongkong.'........................................... Japan and Korea............................... Spain.................................................... Straits Settlements............................. United States..................................... 1,489,813 Cigars: Shipments to the United States during July show some improvement, though still behind the figure for the corresponding period of 1926. Due to the enforcement of con siderably increased duty and tax rates, origin ally scheduled to become effective August 1st, now extended to September 1st, exports to Shanghai were greatly increased during July. The enactment of the exorbitant tax rates will seriously endanger the future development of the Manila cigar business with Shanghai. So far the protests of the Consular Body and Com mercial Associations have availed nothing. Comparative figures for the cigar trade with the United States are as follows: July 1927, 14,664,998; June 1927, 9,318,910; July 1926, 14,727,808. COPRA AND ITS PRODUCTS By E. A. SEIDENSPINNER Vice-President and Manager, Copra Milling Corporation COPRA Excepting spots, the local market for copra has been uninteresting during the month of July. Early in the month, there was con siderable bullish senti ment demonstrated by some of the local mills, and as a result a fair volume of trading in Bodega Resecada Copra passed at P13.625 for forward delivery. There was nothing in foreign markets to justify the improvement at Manila, and any optimism felt as to a possible upward movement in copra undoubtedly comes from comparatively small supplies of copra in the provinces of Laguna and Tayabas. While this latter condition is bound to have its effect on the Manila market up to possibly November-De cember this year, at the same time we caution against a bullish copra perspective, for all other local sources of supply are being well maintained with the possible exception of Mindanao. The same applies to South Sea Island production, and as far as we are able to learn, stocks of copra as well as supplies of competing oil seeds are more than sufficient for consumers’ requirements. Total Manila arrivals for the month of July were 262,097 bags, which was approximately 48,000 bags less than July, 1926. Notwithstand ing, total arrivals for the first seven months of 1927 were 1,630,749 bags as compared with 1,434,843 bags for the same period of 1926, showing an increase of 195,906 bags. Both the London and U. S. markets have eased grad ually during the month and on the date of this report are quoted: San Francisco, Buyers 5 cents; Sellers, 5-1/16 cents to 5-1/8 cents. London-Cebu, £25/15; F.M.M., £25/5. Manila, Buen Corriente, 1 * 11.50; Resecada, P12.75 to 1’13.00. COCONUT OIL The West Coast U. S. market for this item for the month of July was entirely a buyer’s market, fluctuating between 8-1/8 cents and 8-1/4 cents f.o.b. tank cars for the entire month. At these figures practically all of the business was done by U. S. mills, the East Coast market of North Coast Limited “One of America's Fine Trains” shows you the Cascade Mountains, the Rocky Moun tains and the Mission Range by daylight. From the main line ofthe Northern Pacific, travelers see 28 ranges of mountains, and the train rolls along 1406 miles of rivers—pictures of “startling beauty” all the way. The “North Coast Limited” is a new train—new engines one-third of a block long! New Pullmans, new observation cars, wonderful new type dining cars. We Meet All Boats at Victoria and Seattle A. D. Charlton, G. P. A., Po> Oro. R. J. Tozer, A. G. P. A., Seattle, Wash. W. H. Jaynes, G. A., Vancouver, B. C. E. E. Blackwood, G. A„ Victoria, B. C. Northern Pacific Railway (13S) “First of the Northern Transcontinentals” the United States moving between 8-3/8 cents and 8-1/2 cents c.i.f. affording a better outlet for Philippine Crushers. With the still heavy surplus of cottonseed oil and normal supply of other competing fats and oils there seems little possibility of improved prices for sometime to come. Our latest advices show all markets dull at the following quotations: San Francisco, 8-1/8 cents f.o.b. tank cars; New York, 8-3/8 cents c.i.f.; London, £28 nominal; Manila, P.36-1/2 to P.37 per kilo. COPRA CAKE Quite a fair amount of trading in this item was recorded for July almost entirely for Ham burg. During the early days of the month sales were made at £8 and with strong buying pres sure, the market advanced to a recorded high of £8/10from which it has now reacted to £8/5 and was so quoted on July 31st. Local mills continue to be well sold up and materially lower prices at Manila are not expected for the time being. Latest cables: San Francisco, $32.00 nominal; Hamburg, £8/5; Manila, Buyers, P55.00 to P56.00; Sellers, P56.00 to P58.00. Manila, P. I., August 5, 1927. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1927 REAL ESTATE By P. D. CARMAN San Juan Heights Addition The total JanuaryJuly inclusive for 1926 was 1’8,052,132, whereas the total this year to date is only 1 * 6,757,365. (Note: figures in these reports are in even pesos, 50 centavos or over being entered as one peso and less than 50 centavos ignored.) Sta. Cruz..................... Malate.......................... Paco.............................. Sampaloc...................... Ermita.......................... Tondo........................... Sta. Ana....................... San Nicolas.................. Binondo........................ Quiapo.......................... Intramuros................... San Miguel.................. Pandacan..................... Sta. Mesa..................... Sales City of Manila 1927 July 1927 108,907 1’ 136,468 52,725 319,318 27,776 44,397 315,666 85,741 100,569 84,300 66,082 104,094 130,600 24,390 13,001 12,500 185,000 35,535 79,080 10 3,010 6,250 4,100 1’ 894,398 P 1,045,121 The smallest July business since 1923 1919 ....................... 1,103,369 1920 ....................... 882,695 1921 ....................... 480,105 1922 ....................... 1,029,019 1923 ....................... 717,859 1924 ....................... 975,450 1925 ....................... 1,635,527 1926 ....................... 1,843,930 1927 ....................... 894,398 THE RICE INDUSTRY By Percy A. Hill /J ' Prices remain about the same with little likelihood of increase. Palay at terminal points averaging 1’3.45 with rice at consuming centers at 1 * 7.80 per cavan and sack respectively. The total estimated 19261927 crop is approxi mately 2,135,000 tons of clean rice, the largest crop ever harvested in the islands. Rice from the United States raised by exten sive machine methods is flowing into Japan which imports 4,000,000 lbs. from California. This is grown by the use of machinery, and California has a lower general average yieid than the Phil ippines. It can be continued only so long as land is cheap, but where congested oriental centers obtain with land producing intensively it is not so much a matter of cost as it is of actual conditions. Japanese duties of one yen per picul have been lifted, as subsistence needs are vital to that coun try in spite of their reported highest average yield in the world per hectare. Approximately 40% of the Japanese product is mixed with the imported article to give it more palatable qual ities. The California crop is 126 million lbs. of paddy from 62,000 hectares, or approximately 21 cavans to the hectare. Three times this amount is produced by hand labor where cir cumscribed land conditions prevail. It is also worthy of note that the recent up heaval in China has called for increased importa tions estimated for the last nine months at 13,143,186 piculs. Hankow alone increased its importations from 221,233 to 1,811,925 piculs. Unstable conditions show adverse trade balances. It is not expected that there will be any appre ciable advance in Philippine rice prices as before mentioned. The coming crop has been some what retarded by lack of sufficient moisture for planting. This no doubt will be remedied during the next thirty days. RAIL COMMODITY MOVEMENTS By M. D. Royer Traffic Manager, Manila Railroad Company The following com modities were received in Manila June 26 to July 25, 1927, both in clusive, via Manila Railroad: 1927 July Rice, cavans.................... 275,750 Sugar, piculs.................... 18,816 Tobacco, bales................. 37,300 Copra, piculs................... 120,500 Coconuts........................... 1,022,000 Lumber, B.F.................... 523,800 Desiccated coconuts, cases 12,382 June 282,000 10,752 13,400 88,512 2,595,600 421,200 26,268 IN TIMES LIKE THESE Use LIFEBUOY HEALTH SOAP SOLD EVERYWHERE with dysentery quite common, with several cases of typhoid fever daily, and with a threat of cholera pending, it is wise to take proper precautions. LIFEBUOY Soap in your home will make short work of dangerous germs which may be present. Use it for all toilet purposes for infants, for children and for adults. This health soap will give you excellent protection in your home. Get a supply today Smith, Bell & Company, Limited PHILIPPINE DISTRIBUTORS IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1927 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 THE SITUATION IN GERMANY In the second half of 1926 industrial condi tions in Germany made pronounced recovery from the depression which had set in about the middle of 1925. The stimulus given to the German coal industry by the British coal strike was a factor, but the increasing supplies of new capital from foreign loans and German savings were more important, for they stimulated en terprise, diminished unemployment and improved the condition of the industries. Apparently the so-called “rationalization” of industry, by which is meant reorganization and consolidation upon a more economical basis, has accomplished substantial results. It is certain that German business passed through a dr.astic experience in 1925-6, from which it emerged in a higher state of efficiency. By January, 1927, industry was in practically full swing, and down to this time the signs are that the year 1927 will make a very satisfactory record. Don’t waste money: Use our free service REVIEW OF THE EXCHANGE MARKET By Stanley Williams Manager International Banking Corporation. Telegraphic transfers on New York were quoted at 1% premium to 1-1/8% premium on June 30th with buyers at 3/4% premium and the market was un changed on this basis throughout the month of July. Sterling cables were quoted at 2,'0-7/16 sellers and 2/0-9/16 buyers on June 30th and the market was unchanged at this level throughout July. Bill rates were also unchanced throughout the month at 2/1-1/16 for three months sight credit bills and 2/1—3/16 for three months sight docu ments against payment bills. The New York London crossrate closed on June 30th at 485-5/8, which rate also obtained on July 1st, 2nd and Sth and proved to be the high rate for the month. The low rate for July was 485-3/8 on the 23rd and this market closed on July 30th at 485-9/16. London Bar Silver closed at 26-1/16 spot and forward on June 30th and the market remained fairly steady throughout July with a low rate of 25-13/16 spot and forward on July 7th and a high rate of 26-1/4 spot and forward on July 20th. The closing rate on July 30th was 26-1/16 spot and forward. New York Bar Silver closed at 56-1 2 on June 30th, touched a low of 56 on July 7th and a high of 56-3/4 on July 19th, 20th, 23rd, 25th and 30th, the latter being the closing business day of the month. Telegraphic transfers on other points were quoted nominally at the close on July 30th as follows: Paris, 12.25; Madrid, 173-3/4; Sin gapore, 114—1/4; Japan, 95-5/8; Shanghai, 79-1/2; Hongkong, 99-3'8; India, 136; Java, 122-1/2. JULY SUGAR REVIEW By George H. Fairchild Express Pick-up and Delivery Service The MANILA RAILROAD EXPRESS TRUCKS furnish free PICK-UP SERVICE for BAGGAGE or EXPRESS SHIPMENTS to be transported outbound over the Railroad. Those desiring to avail themselves of this SERVICE may do so by giving the necessary instructions to the billing clerk at the EXPRESS OFFICE or Calling up Telephone 4-97-75 or 4-98-61. ECONOMY, CONVENIENCE and SATISFACTION are the outstanding features of this SERVICE. This is one of the FACILITIES offered by the MANILA RAILROAD for the accommodation of its PATRONS. For this SERVICE a Fleet of EXPRESS TRUCKS is operated by the COMPANY to make home deliveries of BAGGAGE and EXPRESS SHIPMENTS within the Manila City Limits and to designated districts within the municipalities of PASAY and SAN JUAN DEL MONTE, Rizal, at low RATES. MANILA RAILROAD COMPANY 943 AZCARRAGA MANILA, P. I. New York Market (Spot): The depression in the American sugar market reported in the previous month contin ued during the period under review. The effect of the announce ment at the beginning of the month by Licht, the eminent statistician, that there was a fur ther increase of 2-1/2 per cent in the Euro pean beet crop, was manifested in the weakness of the market during, the first week, with spot quotations for Cubas at 2-3/4 cents c. and f., equivalent to 4.52 cents 1. t. for Philippine centrifugals. The American sugar market became steadier at the close of the first week, evidently as a result of the heavy buying of Cubas to the extent of 50,000 tons by European purchasers and, on the 8th, small sales were made at 2-13/16 cents c. and f. (4.59 cents 1. t.), while on the 11th, sales for present shipments of Cubas were effected at 2-7 '8 cents c. and f. (4.65 cents 1. t.), being the peak for the month. Thereafter, on account of the pressure to sell by holders, the market became easier and at the close of the second week there were sellers but no buyers at 2-25/32 cents c. and f. (4.55 cents 1. t.). With the poor demand for refined, prices further declined to 2-3/4 cents c. and f. (4.52 cents 1. t.) during the third week and to 2-11/16 cents c. and f. (4.46 cents 1. t.) during the last week. At the close of the month under review the American sugar market showed better tone, sales of Cubas for present shipment having been made to refiners at 2-3/4 cents c. and f. (4.52 cents 1. t.). This improvement is apparently caused by the rumors of restrictions of the new Cuban crop. It would seem from the foregoing that the American sugar market has become very sen sitive, with the “Bears” having the upper hand, notwithstanding the continuous improvement in the statistical position. The present visible stocks are 3,064,000 tons as compared with 3,623,000 tons at the same time in 1926, or a decrease of 559,000 tons. Stocks in the Atlantic Coast are 215,000 tons against 317,617 tons for the same period in 1926, or a decrease of 102,617 tons; in Cuba the stocks are 1,030,000 tons compared with 1,218,299 tons in 1926, or a decrease of 188,299 tons. Since it appears that the main reason for the present market depression is the fear for a large European beet crop, it would be interesting to note the following opinion of an eminent author ity in New York on this factor: IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 32 THE AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1297 “There is just one ‘Bearish’ feature in the whole sugar situation. As one of our friends expressed it, ‘The European crop may be 1,500,000 tons more than last year.’ If so, Europe would produce a crop of approximately 8,400,000 tons. As Licht changes his acreage figures so frequently, it is necessary to revise the calculation of the sugar per hectare yield of the different European countries just as frequently. According to his latest figures, the crop of 1926-1927 turned out as follows: “Hectares..................................... 2,120,415 “Sugar—Tons.............................. 6,898,000 “Tons per Ha............................. 3.25 “It might be interesting to take the mini mum and maximum yields per hectare of the different European countries and apply them to Licht’s latest acreage figures: 1922 to 1926 Yield ' Yield “1927-1928 estimated Ha.......................... 2,420,000 “Tons per Hectare... 2.62 3.41 “Tons—Sugar........... 6,331,080 8,252,020 “If every country in Europe had in 1927 the maximum yield of sugar per hectare, as shown by the outturn of the crops of 1922, 1923, 1924, 1925, and 1926, the crop would be 8,252,000 tons, or 1,354,000 tons more than last year. Assuming that Licht’s acreage figures are approximately correct, this would be a virtual impossibility, because perfect crop conditions never prevail throughout all of Europe, at least they never have yet. In 1921, when most of the European countries had very poor yields, Holland and Belgium made respectively 5.04 tons of sugar per hectare, and 5.39. That Europe may make a million tons more than last year is a possi bility. “If every country in Europe has as bad a crop as the worst in the last five years, the European crop would be 6,331,080 tons. A crop as small as this is just as highly im probable as a crop of 8,252,000 tons. “The average yield per hectare of the 19261927 crop was '3.25 tons per hectare, which is just about the average yield for the five pre ceding crops. If we take the figure of 3.25 tons per hectare, which is the average from 1921 to 1926, we get a crop of 7,805,000 tons, or an increase of 906,000 tons over that of last year.” (Futures): Quotations on the New York Exchange during the month of July have fluc tuated as follows: High Low Latest July................... 2.77 2.56 2.68 September......... 2.83 2.66 2.70 December.......... 2.91 2.71 2.80 January............. 2.83 2.71 2.77 March............... 2.75 2.65 2.72 May................... 2.84 2.72 2.80 July, 1928........ 2.90 2.81 2.88 (Philippine Sales): During July, sales of Philippine centrifugals in the Atlantic Coast, afloats, near arrivals and for future deliveries, amounted to 28,900 tons at prices ranging from 4.46 cents to 4.58 cents landed terms. There were also re-sales by operators during the month, amounting to 18,000 tons at prices between 4.46 cents and 4.52 cents landed terms. Local Market: The local market for centri fugals was quiet during the month under review with insignificant transactions except a parcel of 250 tons bought by the local refinery on the 15th at 1 * 11.25 per picul. With improved demand from North China, the local market for muscovados, after being quiet for the first three weeks, became firm at the close of the month and the Chinese were keen buyers on the basis of 1 * 7.80 per picul for No. 1, but holders refused to sell at prices below 1’8.00 per picul on the basis of No. 1. Philippine Crop Prospects: The continuous rains in the month of May and the heavy down pours in the middle part of July have retarded the growth of the cane in some districts. On the middle west coast of Negros, the damage to cane resulting from the rains was estimated at 10 per cent. There was improvement, however, in the weather during the latter part of July Centrifugals. . . . Muscovados.. .. Refined.............. with sufficient sunshine, and since the cane seems to have better resistance to heavy rains at short intervals than to continuous rains for a long period, a crop of last year’s proportions may yet be harvested next fall, on the assumption that normal weather will prevail from now on until harvest time. Shipments of sugar since January 1, 1927, to July 23, 1927, are as follows: {Metric Tons of 2204 ll>s.) U. S. U. S. China Atlantic Pacific and Japan Total 328,091 46,212 ------- 374,303 ------ 43 23,719 23,762 ------ 1,273 ------- 1,273 328,091 47,528 23,719 399,338 Java Market: This market during the month of July was quiet and dull in sympathy with the American sugar market. The latest advices INSULAR LUMBER COMPANY MANUFACTURERS AND EXPORTERS OF PHILIPPINE CABINET WOODS ANNUAL CAPACITY 50,000,000 FEET TANGUILI RED LAUAN ALMON and APITONG LUMBER Kiln Dried Flooring and Interior Finish Box Shooks and Packing Cases Manila, P. I. Fabrica, P. I. received gave the following quotations for Superiors: Spot-Aug.-Sept. Gs. 15-5/8= P8.27 i per P. I. October..............Gs. 15-7/8= 8.40 > picul November.........Gs. 16 = 8.47 ) f.o.b. Although regularly distributed, the rainfall for June was abnormally high, being 534 m.m. compared with the average of 83 m.m. for several years. The rains have, however, benefited the standing cane although they have obstructed to some extent the harvesting campaign. The fourth estimate released on June 30, 1927, placed the present crop at 2,021,600 long tons as compared with the first estimate of 1,960,069 long tons. Java sugar shipment for June amounted to 221,406 long tons, making the total sugar ship ments of 581,320 long tons for the first six months of the year. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL
content: Shipping Review by H.M. Cavender
Review of the Hemp market by T. H. Smith
Tobacco and Cigars by P. A. Meyer
Copra and its products by E. A. Seidenspihner
Real Estate by P. D. Carman
The Rice Industry by Percy A. Hill
Rail Commodity Movements by Rail by M. D. Royer
Review of the Exchange market by Stanley Williams
July Sugar Review by George H. Fairchild