The American Chamber of Commerce

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce
Issue Date: Volume XIII (Issue No.9) September 1933
Year: 1933
Language: English
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extracted text: 1V1ATN1UA, f 1. W.Vv r .11111U111 P. O. Box 1638 & National Bank Outlines Branch Policy Power given local agents Bank Commissioner’s Yearly Report Commerce Bureau’s Trading Center Gold Boom in Full Blast: Inflation Helps Rational View of the Philippines’ Polit ical Future Pandacan: Sewerless, Parkless Factory District Half-Year’s Overseas Trade Adverse and Favorable Balances Editorial: The Kailroad Other Features and the Usual Expert Reviews of Commerce The Subtle Influence Of Good Tobacco You will find it in any of our popular CCKCNAS Made by TAEACALERA ORIGINATORS OF HIGH GRADE PHILIPPINE TOBACCO PRODUCTS When You Feel Like This............ a hot bath will put you in good humor again A hard day at the office will get. on your nerves; when you get home, step under a HOT shower, like our “PICCOLO” Shower Heater; stay until you feel just a bit sleepy; then cut off the gas on the “PICCOLO” Heater and get a cold dash. You’re fi-xed for the party that evening and enjoy it. Try this. Let us install the water heater today. Manila Gas Corpora lion Display Room — Regina Building IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 1 The National City Bank of New York Capital (Paid)------P248,000,000.00 Surplus...................P152,000,000.00 Undivided Profits - P 10,889,025.54 (as of June 30, 1932) COMPLETE BANKING SERVICES MANILA OFFICE National City Bank Building and so appetizingthe beer you order again!! g>an ^Miguel $alc $il&n brewed by San Miguel Brewery Luzon Stevedoring Co., Inc. UROMIL Lightering, Marine Contractors Towboats, Launches, Waterboats Shipbuilders and Provisions Powerful Urenic Dissolvent Astonishing cures of the most rebellious ca ses of Gout Rheumatism Arthritis Agents for the Philippines BOTICA BOIE SIMMIE & GRILK Phone 2-16-61 Port Area Uroiroplna 0.0S1: lienzoato lltlco 0 028; Sales plperaclnlcas 0.046; Posfato dlsodlco 0.028; Esclplcnte ofervescente q. s. para 1 p n. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 2 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 /or BEST RESULTS try Street-Car Advertising ALHAMBRA CIGARS continue to be the recognized leaders in QUALITY cigars ESPECIALES ALHAMBRA Street-car advertising has become Universally recognized as an adver tising medium of the highest class, owing to the prompt and satisfactory results obtained. Advertising on the inside of Meralco cars and buses is read by the thou sands who daily use this means of transportation. Advertising on the outside of the cars is seen by the throngs of shoppers on the sidewalks and plazas, as well as the thousands of riders in auto mobiles and other vehicles. Street-car advertising costs very little per thousand circulation— much less than most other forms of advertising. For Rates and Particulars—Call Up A. B. TIGH Advertising Manager Manila Electric Company 134 San Marcelino Telephone 2-19-11 means bringing your 6hip safely into port. Your purpose remains firm; you can deal with emergencies; you will not succumb in the battle of life. Whenever your nerves flag, seize oh Bromural Tablets -Knoir long-famed for their nerve-soothing and strengthening properties, their certain action, __ their harmlessness and freedom from risks of addiction. Sound sleep makes sound nerves. M Obtainable from all chemists in tubes of 20 tablets. Knoll A.-G., Chemical Works, Ludwig6hafen-on-Rhine. FORMULA: Urotropina 0-051—Benzoato liLco 0-028—Sales piperacinicas 0-046—Fosfato disfidico 0-023—Escipiente efervescente q. s. para 1 pr. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Single Copies: 35 Centavos Gold Boom on Full Blast: Inflation Helps Month's span in gold stock values; steps in incorporation proceedings; a hand to Judge Haussermann. The table on this page gives the month's span in stock values of the gold companies whose stocks are quoted on the licensed local exchanges. The big day of the month was August 30, when President Roosevelt’s order permitting free export of new gold came out. Judge John W. Hausser mann, president of the twin leading producers, Benguet Consolidated and Balatoc, had won the fight he began in May with the U.S. treasury depart ment almost single-handed and made for his shareholders, on their gold held in the United States awaiting side, an extra profit of Pl,800,000 or about P3,500,000 additional profit annually. Before the point was- won, many gold producers in America had joined in Judge Haussermann’s contention that gold should be allowed to be sold for the amount of depreciated dollars it would bring in the open market; otherwise, in inflating her currency, yet holding strict monopoly of gold and paying the mint par value of 820.67 an ounce for it, America would be penalizing gold production and tempt ing mining companies to keep their output at the minimum. Roosevelt’s order will have the opposite effect, will stimulate gold mines to maximum production and encourage what is manifest here, investment and speculation in the gold mining industry. Below the table of gold stock quotations as of July 31 and August 31, Judge Haussermann’s statement on this subject appears. August, 1933, will be an historical montn in the annals of Philippine gold mining, it marks the unques tioned beginning of a gold boom here that no force can now keep from running its logical course. This boom would float along nicely on the support of local capital alone, but we predict that at last outside capital will also be attracted. On August 31, Benguet Consolidated stock touched P40 a share, 400 times par of 10 cen tavos; there are 2 million shares, but only a few, comparatively, ever traded on the market, be cause Haussermann and his associate, A. \V. Beam, have in their personal control well over a million shares and are never interested in what people may be bidding for them. There are other large blocks, such as Leon J. Lambert’s, that are also strictly held for investment. If, however, all shares were reckoned at the value reached on August 31, 1*80,090,000 would be the value of Benguet Consolidated. Throw half of this way, charge it to enthusiasm, you still have P40,000,000 for Benguet Consolidated and you are on solid.foundation. It is the Journal's sober opinion that if men will tie their faith to Judge Haussermann’s ambition, he will make all of them well-to-do and many of them rich; not indeed from deals in stocks, buying and selling, but from dividends earned by the mines. For Judge Haussermann is convinced that potentially the Philippines are one of the world’s great gold regions. He is willing to back this conviction with cash. He has proved what he can do, with Benguet Con solidated and Balatoc. He wants to mono polize nothing, but he doesn’t want the gold industry of these islands to continue languishing for want of capital. If you fall in with this idea, and are inclined to mining, here is a formula: Prospect your claims, locate and block out your ore. This you can do with a small stock MINING STOCK QUOTATIONS August 31 P25.0f 37.5C 5.Of 0.47 0.2.': Stock— Balatoc..................... Benguet..................... Itogon....................... Baguio Gold Mining Benguet Explora’n... Gold Creek M. Co... Antamok G. Fields. . Big Wedge M. Co.... Ipo Mining Co........ Benguet Goldfields. . Salacot Exp. Co....... Paniqui Mines......... Fortuna M. Co......... Macanaoed M. Co.. . Sta. Maria Dev. Co.. Mountain Goldfields. Bontoc Explo. Co... . Pugo M. Co............. Placer M. Co........... issue, or moderate contributions of capital by men expecting to go into your company and have its stock. Finding ore to warrant mining and the expense of a mill, you can go to Judge Haussermann and effect a financing and operating contract with him on behalf of Benguet Consoli dated. If your proposition is a sound one, you will not knock at that door in vain. But you demur that such a contract with Balatoc gave Benguet Consolidated 60% of Balatoc’s dividends, more than half. True, and it made Balatoc (World's Work of June last year says) the highest dividend paying gold mine in the world per ton of ore milled. It gave Balatoc that close, harmonious and competent business admin istration that is the minority stockholder’s sal vation in every joint stock enterprise, in mining more than in most other things. This comment is addressed to minority stock holders in mining ventures, actual and prospec tive. Let us take the founders, you might style them, of Balatoc, the men who courageously put their money in it when it was just a set of claims, and then just a prospect. If Benguet had not financed it then, these men would have had to turn to some other source for Pl,500,000 (what Benguet Consolidated put into Balatoc before getting back a centavo), which would have made them minority stockholders. It would have been, as they wisely found, impos sible for them to eat their cake and still have it, and the record is convincing that they might have gone farther and reached a worse market. What they did, or about that, Ipo has done since. Others have the plan in project. In other words, our gold mining now has a place at hand to turn to for capital when there is gold in sight to warrant investment of capital. Of course, Benguet Consolidated is not the only brand in the fire. It is the backlog. In this whole business of speculative risk and invest ment ventures in mining, the Journal’s counsel is, back men rather than prospectuses. There are half a dozen men, at least, heads of as many gold mining or prospecting enterprises at Baguio, whose characters are guaranty of good faith in all that transpires in their companies. Speculating with them is a square win-or-lose proposition; and mining with them, if projects have reached that stage, is all the security a minority stock holder requires. There has been discussion about what Benguet Consolidated shares are worth. Like other things, they are worth what people will pay for them; if dividends are P2 a year and a share will bring P40, that is a return of 5% on the capital at risk; but as late as last January people were only willing to pay P8 a share for this stock and they then had dividends of 25% of the capital at risk. Just why the public has cared to bid this stock up to around P40 a share is beyond us; your guess is as good as ours; but that it is a good solid stock is not beyond us. Net profits in the first half of this year were P2,399,239.81; in the gross receipts was Pl,509,995.69 from interest and dividends, earnings out of Balatoc. Gross assets were P6,331,596; cash in banks, 1*623,783; and (among liabilities) general reserve, P3,500,000. The balance sheet manifests the typical Haussermann-Beam conservatism that July 31 P21.00 "00 90 24 17 90 37 25 3 0 0 3 0 0 0 4 0 15 10 0 Haussermann’s Statement “The presidential order authorizing an American free gold market in effect will enable producers of gold to get about 50% more for their gold than formerly. At present in the United States there is from 4 to 5 billion dollars’ worth of gold. As valued today, that stock of gold is worth about 7 billion dollars. That means that the natural course of events has brought about ‘inflation’ to the extent of about 2 billion dollars. This is a natural and healthy inflation and makes it unnecessary for the President to bring about inflation by artificial means. This additional value of the gold in existence and to be produced will serve as the basis for additional currency and credit. “All of this is bound to help bring about normal prosperity. ‘‘The Philippine Islands will receive the benefits of this inflation the same as the world at large. “The Benguet Consolidated and Balatoc mining companies have now in San Fran cisco and afloat a little more than 154,000 ounces of gold. This establishing of the free market automatically increases the value of that gold about Pl,800,000.” THE AMERICAN CHAMBER OF COMMERCE JOURNAL 4 periodically makes minority shareholders rub their hands with satisfaction—then try to get more stock. Positive ore reserves blocked out on 4 sides at date of the semi-annual report were 245,000 tons valued at 1*7,082,000; probable ore reserves exposed at least on 1 side were 285,700 tons valued at 1*6,198,000; total, 1*13,280,000 of which about 1*5,000,000 or more mav be ex pected to go to shareholders in dividends. Ba latoc had ore reserves valued at 1*16,741,000, of which at least 1*7,000,000 ought to go into dividends as mining proceeds, and shareholders of Benguet Consolidated ought to get about 1*4,400,000. Ore development was, of course, going on actively and intelligently at both mines and the end of what the mines will finally yield was nowhere in sight. Nor was the Benguet Consolidated neglecting to acquire additional ore claims: the Fianza claims, for example, a bargain to delight the shareholder. Nor yet was the company abstaining from entertaining more operating propositions, both Midas and Big Wedge were in the offing here. Should Benguet Consolidated be exhausted, the shareholder in that company would still have material dividends to look to, immediately what he is already getting from Balatoc (this was 1*2,603,750 in 4 years, 1929-1932), then from Ipo, then perhaps from additional operat ing arrangements as they may be effected with the now very certain rapid development of gold mining in these islands. So the Benguet Conso lidated shareholder has a value in his holdings far in excess of the values still remaining in the mine itself. He has an equity, a tangible, earning equity in an operating mining company in which no force or combination of forces can undermine the forthright control exercised by the painstaking and experienced manage ment that has built the company up. If he wants to pay high and take a low dividend for such an investment, sheer sanity cannot answer that he could not go farther and fair worse. Comparison could be made with the leading companies, of all sorts, in the United States, if not in other countries, and it would show that in hardly any of them is the business control so secure as in this company; in hardly any of them, that :s, has the minority share holder the chance that he has in this company— September, 1933 the chance of no upsets and of always getting a square deal. In El Debate’s anniversary issue, August 27, Judge Haussermann himself likened Benguet Consolidated in its mine financing and mine operating aspects to a sugar central, what the central does for the cane planter Benguet Con solidated stands in ready position to do for the mine prospector and developer—mill the ore and extract the gold. This is evidence enough, though it is by no means all that is available, to demonstrate to all but the most skeptical that the Philippine gold mining industry has turned its most difficult corner. From now on, if it wants it, it is to have the capital it requires. So watch it grow, grow with it if you will. There are sensible ways of going about participating in it, and these sensible ways will hardly fail. Gold deposits of thcSS^ islands are widespread and abundant, from north ern Luzon to southern Mindanao—that is a pretty safe guess; and it is a good sidelight on what we have here to observe that farther south, in British New Guinea, gold production last year exceeded the value a million sterling. We are part of the crest of a Band. Pandacan: Sewerless, Parkless Factory District On a day in August a visit was made to the factory of the Manila Rubber Company at the river bank in Pandacan, on calle Beata extending through the maze of bad gutterless streets skirting open fields, cluttered slums and swamps from calle Zamora, the turn to the left from calle Canonigo. Ben Houston runs the rubber factory, really an interesting place. Houston makes rubber sundries, about 300 findings including findings for the shoe and plumbing trades and many specialtiesdemanded by sugar mills. Among these products are caps fitting over automobile pedals to obviate slips of the foot on the foot-pieces of these pedals. The trade of the factory is all wholesale, and the machines were busy. Many other factories are located in Pandacan, the leading factory district of the city; and besides the factories there are many warehouses, particularly along the river. The gas works are in this district. Naturally, taxes deriving from the district are considerable. Yet not a street, so far as 2 hours’ observation disclosed, is in anything like first class condition. The health service reports there are no sewers in the district, none was manifest. The streets are narrow, so very narrow that cars can hardly pass on them. The streets are mere mud elevations into which some crushed stone has been worked to give a certain solidity. Gutters are pools of slime and mud, kitchen and latrine drainage from the houses runs into them; instances were observed where sewer pipes from houses de bouched into these festering gutters. Land unoccupied by buildings is utilized for fields, growing green hay and rice. Mosquito-breeding swamps, often closely paralleling the streets, abound. The river bank is not walled, hardly a public improvement of any sort, worthy the name, is noticed in the whole district; but around the factories everything possible has been done by private enter prise to ameliorate sanitary and living conditions—as the improved Standard Oil property with its white-and-blue workmen’s cottages. On its part the city has done almost nothing; where their lot is not relieved by the solicitation of employers, the people live in filth and amid filthy surroundings. The narrow and dangerous streets, encumbered with much truck and cart traffic, are after all the cleanest places outside the church and chapel plazas where the children can play. There are of course no sidewalks. The population of this district last year was reported by the health service as 6,241. The number of births was 371; deaths were 171, 55 of them of children. The mortality rate was 27.36 per 1,000; a very high rate, especially for Manila, and for good reason, as the 5 senses and the esthetic sense will unanimously witness to any observer. Out of 371 children born, 55 must die in infancy. There is much good property in Pandacan and not a few substantially built homes, that suffer in value and comfort by the city’s neglect of the district. No one could testify, from looking at Pandacan, that it is a political part of Manila. The child population must be close to 4,000. There are no car lines, there is no bridge over the river. There is not the semblance of a park, except an athletic field, high-fenced and padlocked. Governor General Frank Murphy has come out for improving districts in Manila such as Pandacan. He had every reason to do so. THE MODERN TOOTHPASTE Ends Mouth Acids that Cause TOOTH DECAY Whitens the Teeth <1 Contains Over75% 1 Milk of Magnesia Phillips* Dental Magnesia September, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 5 Commerce Bureau’s New Trading & Exchange Center Interesting craft products, some well stocked stalls of goods, office of the Manila Stock Exchange The trading and exchange center of the commerce bureau was opened officially in August with ceremonies the main feature of which was an address by Governor General Frank “Murphy, and immediately business began. The big drawing card is at the left of the main entrance on Cervantes plaza, the Manila Stock Exchange. Here the member brokers gather at the opening market hour every morning, 10 o’clock, for the trading that establishes the day’s opening at their respective offices and fixes norms for the day. Trading per sists from 10 to 12 mornings, 2:30 to 3 afternoons. Bedlam over mining stocks closed the exchange Friday, Septem ber 1, until Monday, September 4, because transfers in response to sales were far behind on the mining, companies’ stock books. That shows interest enough in that de partment. The main advantage of the exchange is the rules by which it can compel all members to operate, the second is its facilitation of trad ing among the members, the third is the tally its board constitutes on the mar ket. Of the trading center and ex change as a whole, bureau a permanent developing trade a market center articles made in the and producers of such Director Tomis Confesor of the commerce says: “It is to serve as government agency for in Philippine-made goods, and exhibition hall. Only Philippines are sold. Makers articles in all provinces have been invited to send stocks of their wares, and more than 200 manufacturers, big and small, have thus far responded to this appeal for cooperation in solving their market problems. “The commerce bureau takes care of the sale of all mer chandise received, including the finding of permanent agencies and distributors for the manufacturers. It is hoped by this means to introduce all kinds of Philippine articles to the buying public, and to build up a larger trade in them. Of the 2 sections of the exchange department, the produce exchange is run and administered by the bureau, and the stock exchange is run by the Manila Stock Exchange. “In the produce exchange, staple products including rice, sugar, copra, tobacco, hemp, corn, beans and other farm prodlers bring samples of their change and trading is effectof these samples. Dealand open, producers pers anywhere in lands can make through this exchange; many re quests for information are being received, showing public in terest.” Manufacturers using the ex change as a sales store take up the sales made in their books, for purposes of the sales tax, but, as at the public markets, producers using the exchange pay no sales tax. (In this ac tivity of the exchange grows very much, super vision to see that the sales tax is not evaded will be necessary). Cebu mangoes, of prime flavor, were bought at the exchange at P0.80 a dozen; smaller than Cavite or Bulakan mangoes, their flavor was better. Other fruits of good quality were for sale when a visit was made to the exchange. Among craft products that drew attention were glazed pottery and I’aete wood carvings. Many ahacti products were for sale, but it hardly seemed right to have the rope advertised as from the only Filipino factory: surely all the rope factories here are on the same commercial footing, and none has any advantage under the law. It behooves them to stand to gether, for rope made in Japan from Manila hemp is being imported here, paying the duty and being sold below the current prices for rope locally made. This means, at the least, that Japanese cordage manufacturers are challenging Manila rope in the general market. That is a real challenge. The produce exchange has sold several lots of rice for a producers’ asso ciation at Sto. Domingo, Nueva Ecija. On the day one of these sales took place the price of palay at Sto. Domingo was 1*2.30 a sack of 44 kilos. Two sacks of palay mill into 1 sack of rice, of 57 kilos, with 1 kilo over. The association mills its own rice, milling cost of 2 sacks, 1*0.20; trans portation to Manila, P0.40; sack and handling expense, 1*0.20. This made an all-in cost of 1*5.40 for 1 sack of rice, the same price the exchange was able to sell it for without a sales commission. But there was the extra kilo of rice, worth 1*0.10, and by-products, bran and broken grains, worth 1*0.15; so the association had a net profit of 1*0.25 a sack from selling its rice through the exchange. Again, if this activity grows it would seem the exchange would have to charge its patrons a commission to cover the cost of the service. This is contemplated, it was said. A commission of 5% on the rice sale noted above would have wiped out the rice growers’ profit and taken 2 centavos more. This suggests some of the problems still to be worked out. Just beginning, the exchange as well as the trading center is admittedly an exper iment in aid of primary producers and local manufacturers. As it finds its way along without encroaching on established tax-paying commerce to the latter’s injury, it is to be wished success. As a mere exhibit, the trading center is well worth visiting. The furniture exhibited on the second floor includes excellent rattan furniture for which orders may be placed. There is also hardwood furniture. 6 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 Rational View of the Philippines’ Political Future Free trade established in 1909 viewed as a master stroke of state, though Taft may not have had more than trade benefits in mind Action the Philippines may take on the Hawes-Cutting bill providing first a commonwealth and then a defined political separation from the United States has had and is still having such depressing effects on realty values and business and industry that discussion of the question in the Journal is justified. Men of this country, and perhaps women too, will be asked to support the bill’s acceptance because it docs make way for eventual independence in so far as legislation may do so; and they will also be asked to support rejection of the bill, or acceptance of it with reservations, on grounds that it post pones independence too long and fails to provide enough of it. In the one case and the other, the prevailing argument will be independence. Yet leaders on both sides are committed by some of their own statements, which have all been publish ed, to something less than independence if the islands were given free choice in the matter and what should follow would not be connected with the military conquest nor in any way a direct growth from it. This fact is a natural introduction to opinion, very influential and widespread in the islands, but never put squarely before the people from the stump, that there is no escap ing permanent political relationship with the United States, and that in this relationship’s permanency lies the sole salvation of the islands. It is this opinion the Journal proposes to discuss, but, because it is held by many men, without referring it to any particular man. It is an opinion of many sober-thinking Filipinos deeply concerned not alone for their own interests but for the future of their country and its people. This opinion holds frankly that the free trade established between the United States and the Philippines by act of congress in 1909, at Wm. H. Taft’s instance as president of the United States at that time, destroyed the possibility of Philippine independence at least until such time as the population of the islands ap proaches 40,000,000. We may take the present population to be about 14,000,000 and we may count an annual increase in population from births in excess of deaths at 1.8%. Let us give some of the reasons for this opinion. They are all economic reasons, therefore all based upon the economic laws of trade. First, the Philippines produce so much more than they consume that they require large markets abroad: they sell most of their sugar abroad, most of their hemp, most of their coconut products,, most of their tobacco, most of their leading manufactures, such even as handcraft manufactures, except lumber—and even of lumber an important part is always sold abroad and failure of the overseas demand for lumber dras tically depresses the industry. Now, owing to free trade and other factors, these of minor influence, the best prices the islands can get for their products are always those offered in the United States. This being so, while it remairis so new markets will not be found: goods always seek the best market, and the manager of any business who dared to sell its product at a secondary advantage when he could sell at the best would, of course, and rightly, be dismissed. Therefore, existing industries in the Philippines dependent upon overseas markets will continue selling their products in the United States and CHALLENGING FACT Of all they grow, the Philippines export about 4 measures out of 5 be cause their population and per capita consump tion are small and their land tropically productive. Of these 4 parts out of 5 that must be sold overseas if sold at all, the American market takes on the aver age 3.6 parts; or, the Amer ican market buys 90% of all the Philippines sell, 72% of all they produce. all effort to divert them to other markets will be sterile of results. The slogan Find New Markets is a vain cry. The Philip pines will steadily sell in the United States to the last day—yea^ the last hour—they possibly can; and when at last that marker is cut off, should it be so cut off by independence, not another major market will be ready in its place and industries depend ent upon selling overseas will suddenly be paralyzed. They may, going through painful bankruptcy, slowly revive: this is the best that may be hoped of them. Sugar will be cut off, now in value some 70% of all Philip pine exports. This will be a loss even at present prices of some P100,0()0,000 a year; more than that, it will deprive hundreds of thousands of people of employment, when no new employment can be supplied them, besides ruining planters estimated at 22,000 to 25,000; and more still, it will depress all industries interrelated with sugar, the rice, lumber and tobacco industries, besides trades, professions and domes tic commerce; and yet more, it will drive common wages down to the lowest margin that will sustain life on the poorest land cultivated, or say down to P30 or P35 a year—peasants will be penniless, workmen perennially hun gry. Severe premonitions of this prox imate disaster are already felt, and widely felt: mere fear of what is to transpire has brought them. After 5 years of the commonwealth, granted the independence bill accepted, when export duties apply to Philippine products for the liquidation of their bonded debt, the premonitions of bankruptcy will be keener still. Decline of wages will be accompanied by rising rents, yet in terest rates will rise to ruin landowners. Capital that can be made liquid will, as early as possible, abandon the country — men will salvage of their fortunes what they are able to salvage. Then there is the talk of new industries, and penetrating new markets with their products. The opinion being discussed holds this as vain as talk of other markets than the United States for the product of existing industries. For all new products to be sold overseas, the United States will again offer the best prices, because of free trade, and these products will therefore be sold there up to the very minute independence destroys free trade; whereupon the new industries talked of, like the old, will be paralyzed for want of markets. Along with the bankruptcy of industry will go the bankrupt cy of the government, whose revenues are mainly drawn from industry. But both industry and the government would reach an obvious stage of dissolution before the advent of independence, a disclosure that would serve to put independ ence aside. Industries, seeing the end of their overseas market approach, would prudently liquidate on the grand scale and withdraw their capital from the islands; even planters, it may be assumed, would sense the impending doom and put their eggs too in a safer basket: realty values would be smashed worse than they are at present. In this period the government revenues would begin their sharp decline, and soon money would be wanting for essential public services. So soon as money was wanting for schools, illiteracy would begin plaguing {Please turn to page /8) September, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 7 Philippine National Bank Outlines Branch-Bank Policy Authority given branches to decide upon applications for loans of T*500 or less, small borrowers given money at 12% a year While everyone talks of the need of commerce and agri culture for banks in the provinces, the Philippine National =Bank has quietly outlined a policy under which it plans to meet the situation by taking into its employ, as bankers, local officers of the government. Where no rural credit association is functioning, agencies of the bank under this new policy may be established. In each agency the provincial treasurer will be the agent, who, together with the town treasurer sub agent, and an inspector as a third member, will compose a loan committee. Such agencies may receive deposits, including savings deposits, and pay withdrawals under rules set by the bank; they make loans up to 1*500 for no more than 1 year’s time, if the committee’s approval is unanimous, without consulting the bank in Manila. What the uses of such loans must be, and what the security, is defined by the bank plainly enough to be easily followed. Five borrowers in any community, none of whom wants more than 1*100, may jointly and severally make a note to the bank, properly secured, for as much as P500 for no more than 1 year; when the committee’s approval is unanimous such loans may be made without consulting the bank in Manila. Larger loans than P500, even loans running 10 years for the ends of farming, may be made through agreement with the bank in Manila. The interest rate on agency loans is fixed at 12% a year, the legal limit, but still much below what the average small borrower now has to pay. Of the 12c/c, the bank is to get 8%; its agents, the treasurers, are to be paid out of the remaining 4%. The provincial treasurer is to get 1%, his sub-agent, the town treasurer on the loan committee, 3%; besides, agents are to get P40 to P50 a month as salary, inspectors P30 to f*40 a month. Small base pay by way of salary, with the possibility of earning more in commissions on collections of loans and interest, is expected to make loan com mittee members careful to see that all loans made are good—it will be to their personal interest. Town treasurers, made sub-agents in charge of local agencies, may, if unfaithful to the trust put in them by the bank, not only be dismissed by the bank but separated from the govern ment service at the bank’s request. Security defined to the agency loan committees as acceptable for loans is the security commonly given for bank loans in the islands: signatures, real estate, crops, warehouse receipts, chattels. Under certain conditions, the taxpayer-borrower’s unquestioned ownership and possession for more than 30 years, land not under Tor rens title may be taken as security. All security must be valued conservatively. Other provincial banks to be helped and guided by the Philippine National Bank are the rural banks authorized by act 3896 to be organized and operated by private capital. Such organizers may be individuals, copartnerships or corporations. Such banks must get certificates to operate from the Philippine National Bank, their correspondent in Free Pre,, Photo Rafael Corpus President, Philippine National Bank Manila. The minimum capital for such a bank is P25,000, of which 1*5,000 must be paid in before the bank gets its cer tificate; and when the bank in Manila asks it, such a rural bank must provide itself more capital. “These banks,” says the bank’s first circular on this subject, July this year, “are established to serve the people of the rural communities and with that end in view their loan activities shall largely be confined to small farmers. Both for the benefit of a larger number of such farmers and for the safety of the rural banks themselves, a large number of small loans is preferable to a few comparatively large-sized loans to a limited number of individuals.” Such banks are authorized to lend money as the Philippine National Bank may prescribe, to operate as collecting agencies (for the loans made), and, besides the bank premises they may own, to purchase, hold and convey personal and real property much as under the general banking act. Rural banks may obtain loans from the Philippine National Bank, on prime securities, and may invest in such sound securities as the bank ap proves of. These ventures in solving the provincial banking problem, ventures the product of Theodore Roosevelt’s year’s administra tion of the islands, will be watched by the public with the keenest interest. There are elements of success in them, more particularly perhaps in the branch-bank policy. The Journal, however, would like to see one more venture tried. It sees in neither of the plans discussed a single effective step against usury, in this sense: that anyone, hearing of money procured from the Philippine National Bank and used at usury, would be interested to call the loan while it remained well secured and bore promise of being paid when due. It feels that inevitably most rural banks organized would be devoted to usury, even by the means of fees passed to the officers (quite an informal but perhaps legal procedure) when loans were approved. It feels that officials of the branch banks, dependent upon commissions only for remuneration, would limit their interest to the making of sound loans. It is of course granted that to make 12% money available in the provinces at all is highly desirable. It is suggested that, purely as a practical experiment, a few young healthy Americans trained in country banking could be employed by the Philippine National Bank and placed in charge, as agents, of branches of the bank at selected points in the provinces. Their success would mean the training of young Filipinos to carry on the work, whose viewpoint, the pivotal consideration, they would inspire. One at least might be tried, at some well-populated center, to see if what the Journal believes is really true; namely, that provincial banks of the right type will draw into their capital much local money now used in dependently in the loan business, and that these banks would go farther and teach Filipinos the art of organization they need to master in order to gain more command of the islands’ local business field.—W. R. THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 Philippine Export Trade First Six Months 90% With U. S. Data from E. D. Hester, Trade Commisioner The value of all exports was advanced by increased quanti ties, especially of sugar, copra and abaca (Manila hemp) sustained against lower price levels. The total value at about 1*122,000,000 was 22 per cent above that for the first half of last year. Sugars, valued at approximately 1*89,000,000, were up 25 per cent and composed 73 per cent of the value of all experts. The quantity of centrifugal was a third greater than a year ago while refined and molasses were down in both values and tonnage and mus covado (semi-raw brown) practically disappeared. The coconut group accounted for nearly 1*16,500,000, or 10 per cent up. Of the separate items: the tonnage of copra more than doubled to yield a 50 per cent gain in value; oil, cake and meal, all slightly up in tonnage were off in values; desiccated lost in both respects. Fibers and their manufactures held the same group value at near 1*7,100,000. Abaca and cordage, both decided ly forward in tonnage, suffered lower value. Gross fibers and hats each registered gains both in quantity and value. Except for improvement in the very minor item of cigarettes, all items in the tobacco group declined both in value and quantity. Leaf at less than 1*2,000,000 was 40 per cent under the cor responding period last year. Cigars, a fifth less in number, decreased nearly a third in value. Embroideries were down by one third of their value for the equal period in 1932. In wood, the value decline was in dexed at 17 per cent but was entirely due to lower prices. The ratio between rough timber and sawed lumber con tinued to increase in favor of the former resulting in considerably lessed sawmill activity. The details of the principal exports so far as available at present are appended. Our Comment Whoever studies this table of Trade Commissioner Hester’s on current Philippine export trade can’t escape the proof it Philippine Exports. January to June, 1932 and 1933 Centrifugal, pesos... Muscovado, pesos... Refined, pesos............ Molasses, pesos......... metric tons............. Coconut products, pesos. Oil, pesos.................... Desiccated, pesos.... metric tons............ Cake & meal, pesos. Abaca, pesos.............. Other raw fibers, Cloth, pesos............... Cordage, pesos.......... Hats, pesos................. _ thousands................ Knotted abaca, pesos metric tons............ Tobacco <k manufacCigarB. pesos.............. ^thousands................ Other tobacco............ metric tons............. Embroideries, pesos .... On cotton, pesos.. . . On Bilk, pesos............ Wood, pesos................... Timber 4 logs, pesos Sawed lumber............ contains of the vital importance of the American market to these islands. Total value of exports in the first half of this year was up Pl7,000,000 over the value of all exports during the same period a year, because of sugar sold wholly in fnfe United States. The Philippines, during the first half of this year, had consistent adverse visible trade balances with all countries save one, except with the United States where their visible trade balance was favorable by 1*67,000,000, materially more than the total tax revenue of the insular government. Invisible items tend of course to set this balance right with the United States. Effort has been made to indi cate some of these items in sums of money, but no capitulations could be reached. A few facts can be stated. Gold, for instance, mined in the Philip pines and sent to the United States practically offsets funds sent the Philip pines on account of the army and navy. There has been comparatively heavy investing (and much more speculation, buying and selling) in American secu rities. A leading broker estimates pur chases of these securities in excess of sales at $600,000, or Fl,200,000. Four banks at least are actively in the business of effecting such transactions for their patrons, and there are other brokers; it may be estimated that P7,000,000 or F8,000,000 from the Philippines were invested in American securities during the period under review. Re mittances of profits, as from the sugar industry, from banks and insurance companies, marine insurance premiums and freight charges are all invisible items of trade tending to offset the visible balance in favor of the Philip pines. The even tenor of exchange rates hints that they do so adequately enough. Yet it remains a fact that not only do the Philippines find in the United States customers buying 90% of their surplus products, but they find this trade advantageous above all other overseas trade they have. —W. R. January 88,864.067 83,659,543 731,536 60 5,015,206 32,828 189,258 40,931 1932 70,715.163 64.687,280 557,398 9,319 171 5,211,340 33.297 807,224 62,663 6,737,185 7,525j 65 62,824 831,958 36,093 1,318.378 6,919 14,861,311 4,239.579 52,354 8,167,065 59,178 1,007,094 35,675 1,448.083 7,584 441,933 5,320 626 158,957 132 7.103.352 5,339,686 52,519 327,437 4,858 4.852 1,593 681,791 1,904 491,532 310 258,054 154 4,151.659 1,824.473 7,173 2,158,255 65,555 44,048 14,329 124,883 390 1.98S.785 1,928,991 64,726 68 3,036.87,3 2,957,852 78,028 963 815,066 355.453 51,239 460,513 18,054 982.607 437.607 44.588 545.174 19.350 Other exports, pesos. .. . 2,478,411 1,638,362 Total Exports, pesos. . 121,811,422 104,786,531 September, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 9 United States Trade with the Far East Janet H. Nunn, Commerce Department Combined exports and imports from the United States to the Far East for June, 1933, totaled 853,247,000, compared with $51,375,000 for Qie preceding month, a gain of $1,472,000 which affected only imports. Compared with the total trade for June, 1932, amounting to $54,027,000, there was a reduction ^f»1.2 per cent. United States exports to the Orient during June, 1933, amounting to $20,073,000, recorded a decrease of 2.3 per cent compared with $20,487,000, for June. 1932. Sales to Japan, one of the two countries show ing and increase, advanced from $6,635,000 to $7,720,000, while exports to Australia, valued at $2,360,000, were $353,000 above the total of $2,007,000 for the 1932 period. Exports to China decreased from $5,068,000 to $4,610,000, and to the Philippines, from $3,516,000 to $3,063,000. Imports into the United States from the Far East during June 1933, aggregated $33,174,000 compared with $33,540,000 for the corresponding month in 1932. Purchases from Japan amount ed to $11,467,000 against $8,542,000, China’s share rose from $2,610,000 to $3,035,000, while an increase of $2,021,000 raised imports from the Philippines from $8,061,000 to $10,082,000. Compared with May, 1933, exports from the United States to the Far East for June, 1933, at $20,073,000, remained practically unchanged, while imports showed an increase of $1,895,000 over the May total of $31,279,000. Exports to Japan declined from $8,267,000 to $7,720,000. In contrast, shipment* to the whole of China advanced from $3,749,000 to $4,610,000, while sales to Australia rose from $1,847,000 to $2,360,000. In every other in stance exports to the remaining countries was slightly lower. Heavy losses characterized United States trade with the Far East during the first six months of 1933 compared with the corresponding period of 1932. The value of combined exports and imports declined by $85,095,000, or 22 per cent, from the 1932 total of $377,760,000 to $232,691,000. Exports of American merchandise to the Far Eastern area for the six months of 1933 ag gregated $123,786,000, a decrease of $56,126,000, or 31.2 per cent, compared with $179,912,000 for the 1932 period. Business conditions in the Far East generally duplicated those of the 1932 months. Markets, for the most part, continued dull; prices for leading staples declined; while in some instances higher tariffs increased the costs of American goods. Fluctuating exchange rates and low priced silver and disturbances in China, following the Sino-Japanese difficulties, caused traders to hesitate in placing orders beyond immediate, or, at most, short-period delivery. Japan’s financial difficulties, combined with failure of markets in neighboring countries for cotton yarn and piece goods, checked the flow of American cotton to Japanese markets. Administration difficulties in India also caused considerable reduction in our exports to that section. Australia maintained the leadership gained last year in Far Eastern markets for American gasoline. Although the Philippine Islands ab sorbed 14 per cent less cotton goods than during the first half of 1931, they still afforded an outlet for nearly one-third of the total amount exported from the United States. These Islands also proved the leading consumers of cigarettes. The volume of Pacific Coast lumber and timber increased more tqan 25 per cent and crude and lubricating oil, each 25 per cent. In contrast, the value of iron and steel manu factures fell off 18 per cent; machinery ap proximately 25 per cent; and automotive prod ucts 10 per cent, due largely to the dominationof the market by low-priced passenger cars and trucks. Better crop conditions in the Orient combined with a heavy influx of cheaper Aus tralian wheat reduced American wheat sales in this area to a very few bushels, while similar competition caused American flour to fall off more than 60 per cent. Exports to every country in the Far East during the first six months of 1933 showed some reduction compared with 1932. India’s share valued at $7,800,000 was practically halved. A marked increase in shipments of lead, refined and scrap copper, scrap steel, Douglas fir, crude petroleum and fuel oil to Japanese trade centers was more than counterbalanced by a reduction of 48 per cent in shipments of raw cotton. As a result United States exports to Japan receded from $76,644,000 to $50,493,000. Exports to the whole of China for the 1933 period totaled $24,662,000, compared with $37,INSURANCE For Every Need and Purpose FIRE WORKMEN’S COMPENSATION AUTOMOBILE Atlas Assurance Co., Ltd. The Employers’ Liability Continental Insurance Co. Assurance Corporation Ltd. Orient Insurance Company General Agent E. E. ELSER Telephone 2-24-28 • • Kneedler Building 676,000 for the corresponding period of 1932, while shipments to the Philippines declined from $24,265,000 to $20,785,000. Trades with Australia and New Zealand, however, showed comparatively smaller losses. Australia’s share amounted to $11,630,000, against $13,543,000; and New Zealand’s $3,551,000, compared with $4,786,000. Due to prevailing economic conditions, imports into the United States from the Far East for the first six months of 1933 also suffered a consider able loss, declining from $197,488,000 to $168,905,000. Approximately 45 per cent of this loss occurred in raw silk and crude rubber items. The volume of raw silk decreased by five per cent, and crude rubber, by 29 per cent; while their values receded 33 and 41 per cent, respect ively. The quantity of clothing and combing wool was cut in half, and carpet wool declined by 10 per cent. In contrast the value of sugar from the Philippines advanced by 19 per cent to $43,840,000, the highest total attained by any import item. Tin, wood oil, coconut products, palm oil, pepper and tea were the only other items which showed any considerable upward tendencies. Imports from Japan into the United States during the 1933 period totaled $49,148,000, a loss of $19,523,000, compared with $68,671,000 for the corresponding months of last year. Pur chases from China declined approximately 6 per cent from $17,810,000 to $16,786,000; and India’s, from $20,571,000 to $14,841,000. In contrast, imports from the Philippines, the only country in the Orient showing any increase, advanced by nearly 12 percent from $49,307,000 to $55,123,000, an increase attributable largely to the sugar and copra trade. In view of these gains and losses during the first six months of 1933, the Far East supplied an outlet for 18.3 per cent of the United States total exports and supplied 28.5 per cent of the imports. For the 1932 period the ratios were, respectively, 21.4 and 26.4 per cent. MARINE ACCIDENT BAGGAGE PLATE GLASS IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 10 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 the single item that increased over the previous year. With a dry August and the beginning of a dry September, bound to shorten the rice crop, the following table from the 1932 yearly report illuminates the freight situation: REVENUE FREIGHT TONNAGE Commodities American Commerce DIRECTORS AND OFFICERS H. M. Cavender, President C. S. Salmon, Vice Preident JohnL. Headington,Treasurer Leo K. Cotterman W. L. Applegate J. C. Rockwell Kenneth B. Day E. M. Grimm P. A. Meyer ALTERNATE DIRECTORS Verne E. Miller S. R. Hawthorne F. H. Hale L. D. Lockwood. John R. Wilson, Secretary James C. Ross,General Conusel Rice.................................................... Palay.................................................. Sugar, crude...................................... Sugar cane......................................... Copra................................................. Coconuts............................................ Hemp................................................. Tobacco.............................................. Livestock............................................ Mineral products............................... Lumber.............................................. Other forest products....................... Manufactures..................................... All other, including L. C. L........... Total .... .............................. 1932 1931 1930 96,122 173,478 162,653 14,028 24,863 29,883 280,784 195,658 208,809 742,269 477,684 482,782 95,944 116,676 116,*900 13,680 22,994 22,268 1,654 2,467 3,789 5,730 6,713 6,562 1,302 1,962 2,755 110,116 91,759 111,75?= 52,200 57,656 60,113 41,992 39,122 46,714 214,562 203,052 227,424 138,017 172,912 184,909 1,808,400 1,586,996 1,667,315 EXECUTIVE COMMITTEE: H. M. Cavender C. S. Salmon Paul A, Meyer RELIEF COMMITTEE: J. Gordon J. R. Wilson MANUFACTURING COMMITTEE: K. B. Day F. H. Hale F. N. Berry LEGISLATIVE COMMITTEE: H. M. Cavender Paul A. Meyer E. E. Selph J. R. Wilson FINANCE COMMITTEE: C. S. Salmon Verne E. Miller FOREIGN TRADE COMMITTEE: H. B. Pond Paul A. Meyer L. Spellman COMMITTEES PUBLICATIONS COMMITTEE: H. M. Cavender K. B. Day R. C. Bennett J. R. Wilson BANKING COMMITTEE: C. M. Cotterman W. K. LeCount J. R. Lloyd RECEPTION, ENTERTAINMENT HOUSE COMMITTEE: L. M. Hausman LIBRARY COMMITTEE: S. A. Warner SHIPPING COMMITTEE: E. M. Grimm G. P. Bradford E. W. Latie INVESTMENT COMMITTEE: H. M. Cavender C. S. Salmon Paul A. Meyer J. L. Headington THE RAILROAD The capital of the Manila railroad is 1*25,127,000. It is owned by the Philippine government. Total long term debt of the road is 1*53,408,198. There are 1*26,472,000 of 5% mortgage bonds due July 1, 1956. There are 1*21,172,000 of 4% gold mortgage bonds due May 1, 1939. There are 1*2,138,000 of 4% gold mortgage bonds due May 1, 1959. There are 1*3,000,000 of 7% sinking fund bonds due May 1, 1937. There is a 6% note for 1*50,000 of the Benguet Auto Line, and there are advances of 1*576,198 from the Philippine government, some at 4% and some at 7%. Last year, though only for the second time since the government bought it in 1917, the road had an operating deficit. Its revenue was 1*8,963,858.96 against P10j341,576.17 for 1931, a drop of Pl,377,717.31 or 13.32%. As is the case with most railroads, sinking funds to retire bonds when due are not carried. The road lost money last year because traffic fell off, but also because several rates were reduced in order to get the patronage it actually received. It is alarming when for any reason a railroad fails to earn profits, they have a tendency to keep on downhill to eventual bankruptcy; it is therefore interesting to see what the Manila railroad is doing to avoid this habit of decline, and first of all it is fair and gratifying to note that operating expense is being reduced, whereas the average expense‘1927-1931 was P8,041,103.80, last year’s was P6,797,547.67. The reduction in a single year of 1*749,845.81 shows com mendable thrift in the road’s administration, such as anyone who knows Manager Jos6 Paez would expect. It was ef fected while more than 70 kilometers were being added to the lines, and it involved pay cuts and reduction of personnel. It brought the year’s net loss down to P97,377.17. The road has no bright outlook this year and should sur prise no one if it turns up another deficit. Of its earnings, almost F9,000,000, last year 52% was from freight, 36% from passenger service, and 1*475,641.78 came from the express service, 1*291,151.27 from boats operated, 1*130,986.15 from mail charges and 1*201,176.21 from other operating revenue, Now a short rice crop is a brief incident in a railroad’s career. Something more permanent promises to limit the road’s freight business, a quota on Philippine sugar given free entry in the American market; and something more besides, if the Hawes-Cutting bill comes into effect, quotas on rope and coconut oil allowed to go duty free into the United States. Rates tending downward, to get what freight is to be had, can hardly be escaped. Thus the road hauled last year 221,404 more tons of freight, or 13.9%, than it hauled in 1931, “but the increases were principally in items of freight carried at low average rates, such as sugar cane and crushed rock for road building, which were more than offset by decreases . . . of rice, copra and miscellaneous freight which are carried at comparatively high rates.” Freight in less than carload lots, paying high rates, has been diverted to truck lines running into Manila, to a large extent. Drivers act as agents for shippers, no regular rates are maintained and no bills of lading issued. Both in freight and passenger business the road feels the competition of trucks, as railroads do everywhere. Public interest attaches to what the road is doing to extricate itself from the slump in its trade. Parallels between this road and great roads in America that have got back to a paying basis by thorough modernization of their service can’t be exact, yet they do have some applica tion. Manager Paez’s policy is, however, and necessarily, one of gradual improvement; he must do piecemeal what a great trunk line in an industrial country might do, as the Pennsylvania did do, with a single issue of credit. The road has begun operating its own truck lines, aside from the old Benguet Auto line. It has 2 such lines in Cavite, coordinated with its rail lines. It also has joint schedules north with the Northern Luzon Transportation company, south in the Bikol region with the Ammen Transportation company. This incursion into the truck traffic is favorably reported upon and is planned to be extended. Revenue of the old Benguet line at Baguio, to Damortis, making train con nections, grew 1*78,419.86 last year. The investment at stake is P346,175.87. A fourth truck line is operated at Pasacao. An interview was had with Manager Paez about faster passenger trains north, between Manila and Damortis, 222 kilometers, or 163.75 miles. When the government bought the road that schedule was 8 hours; it has been reduced to 5 hours, not much less than the ordinary motoring time clear to Baguio from Manila, but if it could be cut to 3 hours pas sengers could reach Baguio from Manila in 4 hours and there should then be a tendency to use the trains in preference to automobiles—as now there is a tendency to use automobiles in preference to the trains. To speed its trains as well as reduce operating costs, the road has converted many of its coal-burnipg engines into oil-burners. Coal cost last year 1*0.224 per locomotive kilometer, oil cost 1*0.166. Oil eli minates the soot nuisance and dispenses with the services of 1 fireman per engine, but doesn’t mitigate the nuisance of dust and heat. September, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 11 To eliminate dust and heat, the road is working around to air-conditioned coaches, which have won back to the railroads much traffic in the United States. That fast passenger trains pay is indicated by experience with the La Union Express, 6 hours lacking 3 minutes between Manila and San Fernando; this train earned 1*1,392.19 more last year than in 1931, and made it necessary to run fewer express trains to Damortis, which were only run during the Baguio season, March, April and May. Rails on the Manila-north line are only 60-pound metal, but they will suffice, it is contended, with stone bal lasted roadway, to support trains running to Damortis in 3 hours; and the essential stone ballast, supplanting gravel and sand, is being adopted. Over lines of 60-pound rails, Japan manages very fast strains; and in England, over stone ballast, arc run some of the world’s fastest trains. From a 4-hour schedule to Baguio, 3 hours by train to Damortis, the railroad may expect much third-class patronage now given truck lines and very material first-class traffic besides. Little patronage can be diverted from the airplane line to Baguio, the trip in an houi, but patronage will surely come from folk who now motor between Baguio and Manila in their own cars because the train trip is several hours longer. Manager Paez recommends completion of the Bicol ex tension, in which there is still a gap of 40 kilometers between New Aloneros and Port Ragay that involves a boat portage of 2 hours 25 minutes and makes the time 20 hours between Manila and Legaspi. Seventy-one kilometers of the extension were built last year, chiefly under the administration of Harry V. Campbell, railway construction engineer and at the re markably low cost of P60,000 a kilometer, “including cost of land, grading, track, sidings, station buildings, bridges, water supply systems, the whole road complete and in operation.” The estimate had been P 100,000 a kilometer. The people have 1*4,200,000 invested in this unfinished improvement, for which that much additional stock of the railroad was bought by the government. Work has now been suspended, as the work on the spur from Tarlak to San Jos6, a fine pros pect for rice haulage, has been suspended at Munoz, for want of funds. There can be no remarkable returns from the Bikol invest ment until markets for hemp and copra improve, for the farmers and merchants in that region are too poor to pay their taxes: while they still dry copra and have it to ship, hemp fields are widely abandoned. But the railroad taps much fertile country open to settlers and it believes settlers will go there and found communities and raise crops that will give it trade. The fact can’t be evaded, however, that with independence and a curtailed American market better average business conditions will be far in the future, should they ever be reached at all. It is this dilemma of the railroad the people should understand. They own the road, the road’s debt is theirs. Bank Commissioner Garcia’s Yearly Report Consolidated Statement of Resources and Liabilities of All Banks and Trust Companies in the Philippine Islands at the Close of Each Fiscal Year Indicated. ItESOUIiCKS 1932 1931 1930 ‘ 1929 1928 Pesos Pesos Pesos Pesos Pesos Loans and discounts................ 73,227,262 66,793,634 7(>,848,062 80,391,413 109,308,937 Overdrafts.................................. 61,972,547 66,561,202 67,915,296 65,912,938 60,200,523 Stocks, securities, etc............... 36,899,718 32,266,179 22,913,308 11,524,591 12,247,640 Banking house, furniture and fixtures.................................... 4,443,264 2,574,385 2,423,011 2,352,453 2,387,478 Other real estate and chattels owned...................................... 4,740,199 3,990,011 3,639,670 3,629,034 3,054,534 Due from head office, branches, agents and correspondents. . 23,743,597 16,299,810 38,478,877 47,146,267 34,536,818 Due from other banks............. 7,496,501 4,903,592 3,059,635 5,398,558 8,198,375 Bills of exchange....................... 5,090,059 8,616,973 20,883,441 26,219,055 18,347,694 Cash on hand........................... 16,261,503 19,568,927 17,487,351 18,972,575 15,224,113 Checks and other cash items.. 597,170 420,807 877,146 1,665,435 1,413,382 Profit and loss accounts.......... 15,457 33,949 34,162 1,978,537 1,003,316 Other resources......................... o 10,645,628 «13,544,273 7,660,654 7,447,418 6,469,278 Total resources.................. 245,132,905 235,573,742 262,220,613 272,638,277 272,392,088 °Includes Customers’ Liability Under Trust Receipts. LIABILITIES Capital........................................ 24,463,300 Surplus........................................ 8,879,411 Reserves..................................... 8,199,062 Undivided profits...................... 959,035 Bank notes in circulation........ 16,319,283 Due to head office, branches, agents and correspondents. . 21,934,510 Due to other banks................. 3,786,061 Dividends unpaid...................... 448 Demand deposits....................... 47,016,850 Time deposits............................ 55,874,079 Savings deposits........................ 43,548,841 Bills payable: Domestic............................. 385,447 Foreign............................... 152,056 Cashier’s checks........................ 50,842 Certified checks......................... 363,666 Suspense accounts..................... 2,027,126 Other liabilities......................... 11,172,888 Total liabilities.................. 245,132,905 235,573,742 262,220,613 272,638,277 272,392,088 24,463,300 26,484,550 25,484,550 25,478,150 7,858,208 7,811,899 8,340,220 6,237,145 7,575,189 6,142,132 2,107,152 1,580,332 9,866,983 8,672,485 15,469,176 17,049,453 18,989,754 24,017,003 25,416,639 41,619,314 49,945.794 27,386,495 3,132,491 3,847,798 3,921,986 5,417,919 465 338,343 337,744 50,954,239 60,868,276 60,492,789 69,078,633 42,657,128 35,815,001 30,723,692 33,035,045 43,135,103 47,874,363 54,986,822 62,554,310 34,270 28,358 20,341 7,008 184,059 606,298 459,941 392,994 667,311 613,357 638,491 119,893 180,249 376,231 616,673 572,233 1,279,663 694,415 77,682 1,119,236 9,694,069 10,713,823 8,499,247 8,060,808 The general business of banks and trust com panies during the year under review showed a marked improvement over that of 1931. The increase in their total resources by 1*9,559,163, in spite of the world-wide economic disturbance, is an indication of an attitude of continued confidence in these institutions by the people of this country. While in many parts of the world the year 1932 was one of serious derangement of credit giving rise to a series of reported bank failures, in this country, on the other hand, activities in banking and credit were quite normal, with the exception of the transactions in foreign exchange which, in a minor degree, dropped from their 1931 level. It is evident, therefore, that the tidal wave of fear and uncertainty which has been sweeping the world over, tearing down old established banking institutions and leaving financial bank ruptcy and economic misery in its wake among nations and peoples alike, did comparatively little damage in this country. The statement presented above shows that while overdrafts decreased by 1’4,588,655, loans and discounts increased by 1*6,433,628 or a net gain in these two items of Pl,844,973. Cash on hand was P3,307,424 less than reported in 1931. This decrease, however, was more than offset by an increase in security investment of P4,633,539 indicating a certain trend in policy to put the available funds of the banks into pro ductive use. Likewise, deposits during the year registered a net gain of 1*9,693,300 over those of 1931. In this connection, it will be noted that while demand deposits decreased by P3,937,389 at the same time there was registered an increase in the time deposits by 1’13,216,951, with savings accounts remaining at almost the same level as that of 1931. The unprecedented rise in time deposits during the year is a sure indication that on ac count of the dull business conditions people preferred to put their money on deposits which would assure them of a steady return while waiting for better business opportunities. It is not to be expected, however, that the character of this account can be anything but temporary and at the first manifestation of the advent of better times a big portion of this fund would undoubtedly be put to more productive uses. Surplus for the year made a gain of 1’1,021,203 over that of the previous year while undivided profits dropped by 1’1,148,117 during the same period. The decrease in the latter item was a result of the cleaning up of the portfolios of some of the banks of bad and undesirable papers so that they may be able to face the new 12 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 year with clean slates. DIVIDENDS Continuing the policy which the local banks adopted a year ago regarding the inadvisability of declaring dividends in the midst of the depres sed business condition the domestic banks, with Exchange bought Month the exception of one, decided once more not to declare dividends for the year 1932. EXCHANGE TRANSACTIONS The following table shows the extent of ex changes bought and sold during the year ar ranged by months: and sold in 1932 Bought by banks Total exchange Spot Future bought Arellano’s Water Ccrtors January............................................................................... February............................................................................. March.................................................................................. April..................................................................................... May..................................................................................... June..................................................................................... July..................................................................................... August................................................................................. September........................................................................... October............................................................................... November........................................................................... December............................................................................ P 12,543,906 10,744,913 10,105,735 15,726,553 7,833,889 8,354,600 9,200,078 7,424,803 11,189,313 11,701,623 8,577,303 9,802,540 P 7,179,484 9,446,228 3,768,705 8,959,372 7,887,590 8,721,862 9,393,045 6,538,586 8,937,268 17,590,621 7,541,014 14,062,368 P 19,723,390 20,191,141 13,874,440 24,685,925 15,721,479 17,076,462 18,593,123 13,963,389 20,126,581 29,292,244 16,118,317 23,864,908 Total............................................................................ P123,205,256 Pl 10,026,143 P233,231,399 Manuel Arellano recently returned to Manila from Europe and is supplementing his photo graphic work, some of the very best in the city, with studies in water colors that are a distinct addition to contemporary art. The pieces he exhibited to the Journal editor were bits of the old walls of Manila, unexceptionable in choice and skillfully done. This artist can be wished nothing but success His wife, Tinay Arellano, dramatic soprano, is enjoying popularity in Ker opera appearances in Europe; but while her art is better known in Manila than her husband’s, his is of a lasting sort bound to benefit the city permanently. The Journal has always felt that as a rule there is little truthful commenda-< tion to be granted contemporary painting in the Philippines, which either oversteps the limits of simplicity and aspires to what it can not reach, or is garishly exotic and blind to the beauty in the midst of which it lives. Exception is made of the Arellano water colors, which readers are recommended to sec for themselves. Month Sold by banks Spot Future Sold by the Insular Treasurer Total exchange sold January...................................................... February.................................................... March........................................................ April............................................................ May............................................................ June............................................................ July............................................................ August........................................................ September.................................................. October...................................................... November.................................................. December................................................... P 18,224,908 14,522,656 13,299,611 17,362,695 12,478,654 11,678,352 14,489,745 10,704,724 10,331,272 13,738,446 11,412,183 14,263,275 P 8,969,579 4,635,807 6,456,241 6,171,266 4,712,669 5,242,069 6,727,696 6,252,062 23,147,651 6,018,111 6,711,301 9,429,399 P 8,626,900 4,377,205 4,865,851 7,091,507 3,962,003 5,740,000 3,552,175 ■ 2,832,350 2,255,957 4,680,000 2,085,513 1,360,000 P 35,821,387 23,535,668 24,621,703 30,625,468 21,153,326 22,660,421 24,769,616 19,789,136 35,734,880 24,436,557 20,208,997 25,052,674 Total.................................................. P162,506,521 P 94,473,851 P 51,429,461 P308,409,833 MUTUAL BUILDING AND LOAN ASSOCIATIONS The big majority of mutual building and loan associations experienced difficulties of one kind or another during the year. These difficulties are undoubtedly the concomitant effects of the financial crisis which is still going on unabated. Some had cases of mild run, while others suffered from topheavy personnel and expenses due to unbusinesslike methods which may be justified only in prosperous time, but not in lean years like the present. Forseeing that only by the adoption of a conservative loan policy and by the paring down of expenses to a minimum consistent with efficiency will these associations be able to continue doing business with safety to the shareholders, the undersigned found it necessary to promulgate rulings from time to time to the various associations that come under its supervision. Excerpts of some of these rulings are given hereunder. In considering applications for real state loans preference should be given to small loans. This policy will enable the association to serve the greatest number of shareholders with the minimum risk of loss in accordance with the law of averages. The properties to be mortgaged should be conservatively appraised allowing a greater margin of safety than heretofore of, say, at least 50 per cent between the appraised value of the properties and the amount of loans granted. A general plan of economy should be adopted by allowing substantial reductions in office and other general expenses consistent with the ef ficient operation of the association. The salaries of officers and employees, fees of the board of directors and fees paid to other persons working for the associations should also be proportionate ly reduced as an emergency measure. All charges, present and future, in excess of the value oT shares, such as premiums, dues, fines and interest unpaid, should not be carried as Accounts Receivable, taken into profits and distributed as dividends, but carried in suspense account of “uncollected dues, interest, premiums, etc.” The granting of additional loans to borrowers who are in arrears in the payment of interest on the original loans is not a sound loan policy and should therefore be discontinued. Stock loans should not be allowed to run indefinitely with interest unpaid, unless the value of the shares at any time affords sufficient margin for interest for at least six months. When the margin of security is reduced the stock should be liquidated and its value applied to the loan. Comparative Statement of Consolidated Assets and Liabilities of Mutual Building and Loan Associations as of December 31 of the Year Indicated. ASSETS Name of accounts 1932 1931 1930 Loans............................................................................. Cash on hand and in banks..................................... Real estate owned....................................................... Other assets................................................................. 1*20,822,342.89 762,343.36 1,904,659.30 1,947,495.19 1’22,183,570.61 96,791.24 1,413,573.56 1,657,774.15 1’21,836,814.67 231,431.15 1,028,574.23 1,523,091.89 Total...................................................................... 1’25,436,840.74 1’25,351,709.56 1*24,619,911.94 LIABILITIES Capital paid-in............................................................ Reserve......................................................................... Borrowed money......................................................... Other liabilities............................................................ 1’22,533,877.70 1*22,192,186.69 1’20,570,886.49 478,554.50 961,112.24 1,463,296.30 627,219.83 954,996.36 1,577,306.68 649,597.98 2,150,098.99 1,249,328.48 —Judge. Distressed Manager: I’m sorry, but we don’t allow un escorted ladies. Calm Lady: Who the hell says I’m a lady! Stick to Quality GORDON DRY The heart 7?T\T of a good CrllN cocktail MARCHANT’S OLD HIOHLANO Scotch Whisky for Good Highballs Kuenzle & Streiff IMPORTERS 343 T. Pinpin Tel. 2-39-36 Manila, P. I. Total...................................................................... 1’25,436,840.74 1’25,351,709.56 P24,619,911.94 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 13 SOME FACTS CONCERNING THE ARTICLE ENTITLED “PROVINCES’ RELATIVE INCOME TAX STANDINGS” PUBLISHED IN THE AMERICAN CHAMBER OF COM MERCE JOURNAL FOR JULY By Juan Posadas, Collector of Internal Revenue is alleged in the above-entitled article that more than 75% of the income taxes in the country is assessed in Manila. It is further said that only 5 provinces, besides Manila, are Assessed more than 1% of the tax. While the object of the article in publishing figures pertinent to the income tax is not stated, yet there exists the reasonable presumption that the impression it desires to create is to demonstrate that it is only in the City of Manila where the said tax is adequately collected. This is not the first time that figures of this nature are given, inasmuch as a few years ago a group of prominent business men tried to prove that the income tax is not yet adapted to the economic development of the Islands, giving as their proof the fact that the greater part of it is paid in the City of Manila. In trying to pass judgment upon the ade quacy or inadequacy of the enforcement of the Income Tax Law, the economic conditions prevailing in the country should be borne in mind. The first condition which must be taken into account is that the Philippines is primarily agricultural, and agriculture, therefore, consti tutes the main source of income for the people of the country. If agriculture is the main source of income, then let us see the extent of the hold ings of individual landowners. According to the Census of 1918, out of the total area of 2,415,778 hectares of land under cultivation, 246,061 hectares corresponded to farms over 100 hectares, or in other words, the total area of 10O-hectare farms under cultivation was but 10% of the total area of all the farms under cultivation. The same Census reveals that, of the total number of farms in the Philippines reaching 1,955,276, only 3,433 are farms of 100 hectares or over or 16/100 of 1%. The same source of information shows that the following represent the average area of each farm in the different provinces: Hectares Abra.............................................................................. 2.83 Agusan.......................................................................... 3.76 Albay............................................................................ 2.87 Ambos Camannts...................................................... 3.21 Antique........................................................................ 1 69 Bataan......................................................................... 2. 92 Batanes................•...................................................... 2.77 Batangas...................................................................... 2.56 1931 Crop Sharing of crop between landlord and tenant and sugar planter and central Value of production Area of land necessary to produce 1M.000 P6.000 Rice................ 1/2 to landlord, 1/2 to tenant 1*72.00 111 hectares 166 hectares Sugar.............. 1 /2 of land to be kept fallow to prepare next crop; 1/2 to sugar central, 1/2 to planter 416.00 38 hectares 57 hectares Coconuts... .. 4/5 to landlord, 1/5 to tenant 124.00 40 hectares 60 hectares Tobacco.......... 1/3 to landlord, 2/3 to tenant 99.00 121 hectares 181 hectares Hemp............. 1/2 to landlord, 1/2 to tenant 43.00 186 hectares 279 hectares Readers will no doubt be as glad as the Journal has been to examine this analysis of the internal revenue bureau of the reasons why little income tax is paid in the provinces. The table on which the Journal’s original paper was based was the bureau’s own table, rearranged in the order of the percentage of income tax assessed in each province and in Manila instead of in alphabetical order: and the comment was based upon interviews with Collector Juan Posadas whose further comment in this paper is gladly printed.—Ed. Bohol.......................................................... Sub-province of Benguet (Baguio)... Bukidnon................................................... Bulacan...................................................... Cagayan.................................................... Cebu........................................................... Cotabato.................................................... Davao................. Ilocos Norte. Ilocos Sur.... ............ Iloilo...................... Sub-province of Kalinga....................... Sub-province of Lepanto-Amburayan Marinduque............................................ Masbate............................ Mindoro............................ Misamis............................ Nueva Ecija............................................. Nueva Vizcaya........................................ Occidental Negros.................................. Oriental Negros....................................... Palawan..................................................... Panipanga................................................. Pangasinan................................................ Rizal........................................................... Romblon.................................................... Sub-province of Siquijor....................... Surigao....................................................... Tarlac......................................................... Tayabas..................................................... Zambales................................................... Zamboanga................................................ 32 26 These figures show that land is evenly distri buted in this country, and considering the high personal exemptions—P4,000.00 for single per sons and P6,000.00 for married persons, it is not surprising if the vast majority of people is exempt from income taxation. On the basis of an average return of 8% on capital invested, a person who makes an annual income of P 1,800 should have a farm worth P22,500.00. It can be readily seen that the income of Pl,800 is way below the exemptions both for single and married persons. How many persons in this country have farms worth P22,500.00 or more? To give concrete illustrations of figures con nected with the five major agricultural products of the Philippines, the following table is given: It will be observed that the figures shown are those corresponding to 1931, inasmuch as the article under consideration deals with the income taxes for 1932, or in other words, the taxes on the incomes earned in 1931. It will also be observed that the areas of land needed to pro duce the incomes that constitute the limits of personal exemption are many times above the average size of farms in the different provinces. Analyzing the foregoing figures, it should be borne in mind that with the exception of sugar planters who pay the income tax, tenants of ride, coconut, tobacco, and hemp lands do not pay the tax, and therefore the estimate of the acreage has been made using as basis the share of the landlord in the produce. If the average area of each farm in the dif ferent provinces is analyzed, it will be seen that the ones having the highest averages are: Oc cidental Negros, Davao, Mindoro, Sub-province of Kalinga, Cotabato, Nueva Ecija, Benguet (Baguio), Masbate, Pampanga, Sulu, Tayabas, and Palawan. With these figures, it is easy to comprehend the relatively high income tax standing of Occidental Negros, Pampanga, Laguna, Davao, Zamboanga, and Tarlac. With the exception of Davao and Zamboanga, the other provinces house the profitable sugar in dustry. Davao derives its great income from the hemp industry, in addition to the fact that it is a port of entry. These two factors pri marily account for the rather high income tax standing of that province in spite of its being sparsely populated. Zamboanga, besides being an old town, is also a port of entry and one of the commercial centers in the South. Besides producing sugar, Tarlac is one of the largest rice-growing provinces in Central Luzon. Co tabato, although remote from Manila, is one of the most fertile regions in Mindanao, and one of the places that have received the benefit of the enterprising hand of the pioneer. In fact, it is one of the provinces having the highest aver age size of each farm. The reason for the collection of more than 75% of the income taxes in the City of Manila is that the central offices of the large firms are estab lished in the City and file their returns therein. At the same time, the prominent citizens from nearby provinces and even those as distant as Abra also file their returns in Manila. Then Manila, being the intellectual center of the Philippines, attracts the best in every profession, encourages the arts, and gives life to amusement places, thus producing the result of what appears to be an abnormal proportion of income taxes assessed in the City. Furthermore, it is well known that all the officials and employees of the Insular Government working in Manila and those of the City of Manila, whose salaries are above the personal exemptions, file their returns in the City. Outside of such commercial cen ters as Manila, Cebu, Iloilo, Zamboanga, and Davao, incomes of over P4,000.00 are not com mon. 14 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 First Half of 1933 Import Trade Reviewed By E. D. Hester, American Trade Commissioner Philippine overseas trade during the first calendar semester of 1933 was 1*121,811,422 exports and P71,860,132 imports. Compared with the January to June totals, 1932, exports were up about 16 per cent and imports were off in nearly the same proportion. Comparing the two semesters, the net effect was an increase in the overall visible balance from about P21,000,000 to nearly 1*50,000,000—a very wholesome development in the face of depressed price levels in export commodities. Chief customer of the Philippines was the United States, taking over 90 per cent of all exports, Pl 10,371,229 in amount, which is 2 per cent more in share and 20 per cent more in pesos than were the relative figures for January to June, last year. The reciprocal character of trade between the two countries was lessened in degree through declines in both share and amount of Philippine imports of American goods. For the first semester 1933 these imports were valued at P43,140,304 or 60 percent of all In sular overseas purchases and for the first half, 1932, at P55,549,901 or 65 per cent of the total. Thus on the American side the share declined 5 per cent and the amount 20 per cent. The Philippines-Japan record was altogether favorable to the latter. Japan purchased P2,531,019 worth of Philippine goods against P3,156,633 and sold to the Islands P8,243,870 against P6,407,748—thus increasing her dollarsand-cents advantage in value of commodity exchanges. Imports from all other countries except from Australia declined. Exports either declined or were unchanged except to China, France and Belgium, where limited increases occurred. Philippine overseas trade, in millions of pesos, by countries, January to June, 1933 and 1932: European: Belgium................................... Germany................................. &Br.ta,n Other European countries*. European balance............ Other foreign balance.............. Total foreign balance.............. United States balance............ OvERBEAB ThaIIE BALANCE... * Includes Canada. Import values The loss in value of imports was fairly well distributed through the various major commo dity groups. Arrivals of footwear ordered in anticipation of increased customs duties brought their import value up nearly a third. All other groups snowed declines ranging from 9 per cent in foodstuffs to nearly 50 per cent in tobacco products, the latter due in part to competition of locally manufactured blended type with standard marks of American cigarettes. The Philippine Customhouse does not report sources or quantities of imports (except for textiles and automotives) until the year's end, but the trade is convinced that much lower prices caused greater losses in values than in quantities in most categories. Value of Philippine imports, January to June, >32 and 1933, in pesos: January to June 1933 1932 Textiles....................................... Cotton piece goods.............. Cotton manufactures (a).. Silk piece goods................... Itayon piece goods.............. Silk and rayon manufacWool and manufactures. . . Vegetable fibers and manu factures ............................. Country . January to June Imports Exports 193 3 1932 1933 1932 19,931,960 9,868.282 5.451,920 831.944 837.387 23,300,452 12,068.404 5,781,734 703,375 879,185 848,861 1,275,934 295,628 368,235 1,797,938 2,223,585 U. S. and Possessions. . Japan................................. China................................. Germany........................... Great Britain................... British East Indies........ Netherlands East Indies. Breadatuffs........................... Wheat flour..................... Other breadstuffs............ Dairy products.................... Eggs, natural....................... Fish and fish products........ Meat products..................... Vegetables, fresh and pre served................................ Other foodstuffs (b).......... 13,270,172 3,514,076 (1,905,271) (1,048,478) ( 560,327) 2,477,278 479,168 1,035,820 1,294,014 1,283,584 14,610,032 3,732,207 (2,763,333) ( 434,868) ( 534,006) 2,904,425 833,891 1,025,280 1,266,519 1,623,771 1,612,320 1,573,912 1,518,579 1,705,360 French East Indies........ Australia........................... Belgium............................. Other countries............... Iron and steel goods (c)........ 5,261,588 6,660,366 Total............................. 71.9 84.8 121.8 105.6 Petroleum produets.................. Crude..................................... Gasoline................................. Kerosene............................... Lubricating........................... 2,690,494 961,483 441,250 1,762,430 3,165,232 1,245,617 679,567 As usual the Philippines turned in negative visible accounts with all oriental countries, in fact with all foreign countries except small pluses with Spain (approx. P2,100,000) and France (approx. 1*500,000). The total unfavorable visible balance with foreign countries was over 1*17,000,000. But, in trade with the United States, the Philippines profited greatly, yielding a favorable return exceeding 1*67,000,000, sufficient to wipe out the trade losses in all other areas and leave some 1*50,000,000 net gain from which the invisible negatives were settled and from which all economic advancement was derived. It is significant to note that the favor able balance in these six months was about equal to the Insular Government’s budget for the year. Visible balance of Philippine overseas trade, in millions of pesos, January to June 1933 and 1932: Machinery................................. 4,741,193 Agricultural implements... 158,189 Electrical machinery (d).. . 1,723,053 Industrial machinery (c)... 2,590,455 Instruments and appa ratus (f)............................ 269,496 Chemicals and products.......... Chemicals, drugs, dyes and medicines.......................... Explosives............................ Fertilizers (g)...................... Paints, pigments and var nishes................................. Perfumery and cosmetics. . 4.928,701 1,872,132 379,901 1,527,752 557,960 590,956 514,445 860,864 cars. Trucks................................... Motor cycles........................ Parts and accessories........ Tires....................................... 2,513,562 977,078 1,536,484 597,407 6,506,825 95,652 2,593,052 3,341,427 476,694 5,638,779 2,105,703 273,155 1,881,366 629,121 749,434 3,990,633 1,531,716 991,884 546 688,820 777,667 Oriental: Australia............................. British East Indies.......... French East Indies.......... Netherlands East Indies. Other oriental countries.. 1,504.532 2,934.559 997,188 1,937,371 829,760 2,892,994 707,724 528,573 156,506 22,645 Cotton cloth imports Cotton piece goods constitutes by^ all odds the largest of Philippine imports and the Islands are the greatest export market for American textile factories, and require ‘the cultivation of more than 200,000 acres of cotton land to produce the raw fiber for their cloth. But, in spite of record low prices per yard, the cumu lative effect of three consecutive years of lessened purchasing power especially in upcountry dis tricts told heavily on consumption. The im ports, over 57,000,000 square meters at nearly 1*10,000,000, were 14 per cent less in amour)', and 18 per cent less in value than for January to June, 1932. Losses in grey goods and prints and the gain in dyed goods (which includes both dyed-in-the-piece and woven of dyed yarns) were very slight while bleached goods was tjown over 40 per cent both in yardage and declared value. Considering the four classes, American cloth held a larger fraction of the totals in unbleached and dyed, about the same position in prints, but a less share in bleached. Japan, chief competitor in each class, gained relatively in bleached and prints, held up in dyed, and was down in unbleached. Quantity, value, and source of Philippine cotton cloth imports, January to June, 1932 and 1933: Jan. to June, Jan. to June, 1933 1932 Unbleached' United States.. . . Japan..................... China.................... Others................... Total................. 1000 of pesos 5,722 101 83 17 747 37 23 2 5,923 644 6,805 809 Bleached United States.. . . 9,250 Japan..................... 1,017 Switzerland.......... 959 Great Britain.... 743 China.................... 106 Others................... 16 Total................. Dyed and iroren of dyed yarns United States.. . . Japan.................... Great Britain.. . . Switzerland.......... Others................... Total................. United States.. . . Switzerland.......... Great Britain. . . . Others................... Total................. 1.532 178 212 193 16 3,032 151 278 38 3 12,091 2,137 20,601 3,913 18,842 4,785 677 362 77 25,905 4,753 24,416 4,595 10,087 3,081 142 94 8 1,738 10,830 532 3,259 34 409 24 150 2,157 429 127 32 13,412 2,330 14,673 2,751 Silk and rayon cloth imports Both silk and rayon piecegoods registered increases in yardage and decreases in values. The gain in silks was altogether for the American and Chinese shares and Japan lost in ratio. In rayons the increases were heavier and almost entirely in the Japanese brae ket. Quantity, value, and source of Philippine silk and rayon cloth imports, January to June, 1932 and 1933: Jan. to June, Jan. to June, 1933 1932 Silk United States.. Total................. Rayon United States.. . . Japan.................... 1000 sy. 192 486 1000 of 142 248 310 3 1,257 832 1,083 703 Total................. 3,495 837 3,372 879 (a) Except cotton shoes. (b) Includes cocoa, coffee, confectionery, starch, sugar, (e) Includes hardware, cutlery and tools. (d) Includes electrical apparatus an'd appliances. (c) Includes rice threshers and mills, sugar central and oil-expresser machinery, and tractors. (f) All non-cleclrical instruments and apparatus. (g) Chemical and natural. (h) Includes books. (Please turn to page 16) Oriental balance. -15.1 -13.2 Total Imports..................... 71,860,132 84,846,660 September, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 15 Stoclc Buying Bright Spot in Today’s Business Stocks are the most active business in the Philippines today. Bankers say stock transactions are serving to put much money in active circulation. This is indicated by the bank commis sioner’s 1932 rejjort, showing demand deposits off about F3,000,060 from 1931; on the other hand, time deposits were higher by about P10,000,000 on December 31, 1932, compared with December 31, 1931. Without doubt, recent interest .in -Btocifspeculations and investments will have invaded even these time deposits. Buyers’ and sellers’ interests are re latively divided between local stocks, chiefly gold-mine stocks, and stocks listed on the New York exchange. Currently gold-mine stocks far outrank American stocks because the former are booming and the latter are dull. But many patrons of the local brokers got on with the lowest New York stocks early in the year, choosing portfolios for safety, and followed them up to the June peak. Brokers are so busy during business hours they can hardly be interviewed. Aside from them, patrons place buying and selling orders on New York through at least 4 of the banks. There are 17 brokers who are members of the Manila Stock Exchange, and so able to do business with New York.. One broker estimates his patrons’ New York purchases up to the end of August, in excess of their sales, at §600,000. This no doubt exceeds the average of the 17 members of the ex change, but it is a fair indication that during this year Phil ippine investments in American stocks have run into millions of dollars. It is said there is no accurate running check on the buying and selling, and that it would be a long task to correct one up to date. Yet enough is known in a general way to identify substantial investors apart from speculators buying and selling. In short, the Philippines now have keen interest in American investment opportunities. Therefore, the Journal proposes saying something about the market each month. There is thorough justification of interest here in American securities, and, given the parlous state of the times, even in speculation. The Wall Street Journal, copies accessible at brokers’ offices, speaks in one of its latest numbers of the firmness of the bond market and the little trading being done in the more conser vative securities such as preferred stocks. This means that the wisest men of money are watching and waiting while the new industrial legislation proves itself. It doesn’t mean that the common stocks offer no opportu nities. On August 28 a memorandum of standard commons was taken from a broker’s board, to be checked with the quota tions of September 28 and the trend of the news as the basis of our October comment. No reader can be infallibly advised by this comment, which will be just a brief opinion to go along with his own. Mining each month will be handled apart, deserving space of its own. Month-apart values will be tabulated, as in this month’s article. The facilities the Philippines have for dealing in securities derive from the Manila Stock Exchange, founded in August, 1927, by W. Eric Little, Gordon W. MacKay, John J. Russell, F. W. Wakefield and W. P. G. Elliott. With John Hair president, the exchange now has its offices in the Reyes build ing, ground floor, in association with the commerce bureau’s produce and trading center. Morning and afternoon sessions are held among the 17 holders of seats on the exchange. All members also transact business throughout the day at their offices. There is also the Philippine Exchange, dealing wholly in local stocks and essentially brought about by the mining boom. The two exchanges are not associated. Vigilance over stock brokers is maintained by the commerce bureau. Punitive action where facts warrant ought to be swift and severe, because a little sharp dealing could destroy much public confidence and injure a healthy movement. This applies with special force to Filipinos who are investing, whose inexperience would easily take alarm. A single act not completely above-board should be sufficient for the can celling of a license. TRADEMARKS REGISTERED From June to July, 1933 Reg. No. 11413. Trademark consisting of the words “KISS ME”, for towels, socks, stock ings, gloves, undershirts, etc., registered on June 30, 1933, by Chinese Trading Co., Inc., of Manila, P. I. Reg. No. 11414. Trademark consisting of the word “MODEX” for paint, registered on July 5, 1933, by The Reardon Company, of St. Louis, Missouri, U. S. A. Reg. No. 11415. Trademark consisting of the word “SENQRITA” with a design, for fresh grapes, registered on July 7, 1933, by Connell Bros. Company Ltd., Seattle, Washington, U. S. A. Reg. No. 11416. Trademark consisting of the words “GULF CIGARETTES” with a design, for cigarettes, registered on July 10, 1933, by La Insular Fabrica de Tabacos y Cigarrillos Inc., of Manila, I’. I. Reg. No. 11417. Trademark consisting of the letters “F. & W.” with a design, for cigars, registered on July 10, 1933, by La Insular Fabrica de Tabacos y Cigarrillos Inc., of Manila, P. I. Reg. No. 11418. Trademark consisting of the word “LION” with a design, for pineapple in syrup preserves, registered on July 10, 1933, by Dy Buncio & Co. Inc., of Manila, P. I. Reg. No. 11419. Trademark consisting of the word “WIMBLEDON” for tennis racket, tennis balls, tennis nets, etc., registered on July 12, 1933, by Daido Boeki Kaisha, Ltd., of Manila, P. I. Reg. No. 11420. Trademark consisting of the words “DAVIS CUP” for tennis rackets, tennis balls, tennis nets, etc., registered on July 12, 1933, by Daido Boeki Kaisha, Ltd., of Manila, P. I. Reg. No. 11421. Trademark consisting of the words “BAKER GIRL” with a design, for flour, registered on July 13, 1933, by Hanson, Orth and Stevenson, Inc., of Manila, P. I. Reg. No. 11422. Trademark consisting of the intials “B. G.” with a design, for sugar, registered on July 13, 1933, by Benito Gaerlan, of Manila, P. I. Reg'. No. 11423. Trademark consisting of the words “FUJI CYCLE” with a design, for bicycle, its parts and accessories, registered on July 13, 1933, by The Nichibei Shoten Ltd., of Osaka, Japan. Reg. No. 11424. Trademark consisting of the word “SPORTS” with a design, for bicycle, its parts and accessories, registered on July 13, 1933, by The Nichibei Shoten Ltd., of Osaka, Japan. Reg. No. 11425. Trademark consisting of the word “ONI” with a design, for bicycle, its parts and accessories, registered on July 13, 1933, by The Nichibei Shoten Ltd., of Osaka, Japan. Reg. No. 11426. Trademark consisting of the words “LA MODERNA” with a design, for coats, pants, shirts, undershirts, vests, etc., registered on July 20, 1933, by Eugenio T. Baltazar and T. Sembrano de Baltazar, of Manila, P. I. Reg. No. 11427. Trademark consisting of the word “NABOB” with a design, for cigars, registered on July 21, 1933, by House of Crane, Indianapolis, Indiana, U. S. A. Reg. No. 11428. Trademark consisting of the words “CASA PLATA” with a design, for all kinds of textiles, registered on July 21, 1933, by Victorino Tanlayco, of Manila, P. I. Reg. No. 11429. Trademark consisting of the words “INSTITVT DE BEAVTE KLYTIA” with a design, for beauty products and perfumes, registered on July 21, 1933, by La Societe Anonyme des Establissements Klytia, of Levallois, Perret, France. (To be continued) 16 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 Pan-American Airways Would Extend Service Here Bulletin Photo Landing at Manila Foreground, Assistant Pilot William Ehmer; standing, Pilot W. S. Grooch; cockpit, in front of Photographer Claudio of TVT, M. H. Bixby. PHILIPPINE • NATIONAL • BANK ALBAY ANTIQUE CAMARINES SUR CAGAYAN CAPIZ CAVITE CEBU SULU This bank has “acquired properties" for sale in the following provinces: DAVAO ILOCOS NORTE ISABELA LAGUNA LA UNION LEYTE MANILA TARLAC ZAMBOANGA MINDORO NUEVA ECIJA NEGROS OCC. NEGROS OR. PANGASINAN RIZAL SORSOGON TAYABAS These properties are mostly agricultural lands, and the Bank is willing to sell them on instalments covering periods up to ten years. INTERESTED PARTIES MAY APPLY TO — the branches of this Bank at: BACOLOD, OCC. NEGROS, CABANATUAN, NUEVA ECIJA, CEBU, DAVAO, ILOILO, TARLAC, LEGASPI, ALBAY, and LUCENA, TAYABAS You may also apply to Provincial Treasurers, most of whom are agents of this Bank. PHILIPPINE • NATIONAL • BANK ESCOLTA MANILA, P. I. In August Vice-President M. H. Bixby of Pan-American Airways, in a Sikorsky/seaplane with Pilot W. S. Grooch and Assistant Pilot William Ehmer, flew to the Philippines from Hongkong and undertook an exploration of the field here for a commercial airline between Luzon and China. Before leaving Manila on the return trip to Hongkong, Sunday, Sep tember 3, Bixby had made application to the Philippine legislature for the franchise for this project, which he had determined would be feasible if the necessary support should be forth coming. In conjunction with the Chinese National Airways this company is operating a line of airplanes on schedule 1600 miles up the Yangtze river in China, daily trips between Hankow and Shanghai. Public response has been remarkable, Bixby says, no doubt largely on acCUttat of the mail advantages, so the line is already on a paying basis. If a mail subsidy can be procured here, for mails between the United States and the Philippines especially, Bixby says schedules can be arranged in conjunction with steamships that will effect a 12-day time between Manila and San Francisco, about half the time of the steamship schedules now. On such details the plan depends. There would be every advantage in a mail schedule of 12 days between Manila and the Pacific coast of America. The Bixby proposal brought another, from Dutch interests, for a line between Manila and Singapore or Batavia connecting with the Dutch company’s air service to Europe. The Iloilo-Negros Air Express run ning an air taxi service between Iloilo and Negros and making semiweekly trips between Iloilo and Manila nas surveyed the field for extending its service to Cebu and Zamboanga and also to Batavia, this flight to connect pas sengers with Europe by the Dutch line of air planes from Batavia. The Bixby flight from Hongkong to Manila via Lingayen gulf was highly noteworthy in the records of aviation here, the more so as it was undertaken in every-day manner without the blare of much publicity. Landing was made at Lingayen gulf and Santiago point tentatively chosen as a regular landing place; in the same vicinity are other possible landing places, im portant from the refueling standpoint. Base stations at Manila may be either Bacoor bay at Cavite, during much of the year, or Laguna de Bay; and passengers and mail may be landed and taken on at Admiral’s landing opposite the Manila hotel. By using some point at Lingayen gulf as a way station for refueling, 300 pounds more of pay load may be carried. Pan-American Airways is not a manufacturing company, but strictly an operating company free to buy whatever planes it prefers. Bixby said that for the China-Manila run seaplanes with cruising economical speed of 150 miles an hour would be advisable, and that such planes could now be obtained. The Sikorsky used for the pioneer flight cruises economically at 110 miles an hour. The faster plane ought to make the crossing Hongkong-Santiago Point in less than 4 hours, possibly in 3-1/2 hours. (The marine distance between Manila and Hongkong is 635 nautical miles, and between Manila and Linga yen 110 nautical miles). Passengers landed at Lingayen might go directly to Baguio before visiting Manila, and passengers leaving the islands might embark at Lingayen. Unques tionably there would be some desirable develop ment of Lingayen as a hotel point. First Half of 1933 . . . (Continued from page 14) A utomotive imports For the first time in the Philippines, American motor equipment was forced to snare the market with cars of foreign make. More than a fourth of the total number of passenger units imported during the period were of European manufac ture. This was due entirely to the introduction of various “bantam” types for use as “ten and five centavo” taxis, a new system of transporta tion which is rapidly supplanting the two-wneeled horse-drawn traditional calesa in Manila. The business was encouraged by a liberal franchise IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 17 policy adopted by the Philippine Public Service Commiision. To a considerable extent the foreign ^'bantams” were not in actual competi tion with American cars but had created their own new market, one which United States exporters were1 not prepared to seize. There have recently been sola a number of a new “near-bantam” model of American manufacture which is reported superior to the smaller Euro pean type for cheap taxi service and very accept able both to operators and passengers. Cars for private use numbered about 800 and this figure is the more comparative with the 1,140 of Vhe first semester 1932. In trucks, foreign competition, also a new feature, was limited to aiesel-engined models from Germany. With the development of similar equipment by United States manufacturers-^tkapcompetition should be checked. “Motorcycles continued without general accep tation in the Philippines, those imported being principally for Government or other special uses. The quantity as well as the American share in auto parts declined. Parts from Great Britain and Germany followed the sales of their “bantam” cars, while the increased imports from Japan represented general competition in selected lines of parts. The tire business was exceptionally good considering declines in cars and trucks. The United States dropped slightly in its share due to growing competition from Japan. The only other feature was the re-appearance of British and French tires, however, in very limited quan tity. Number, value and source of Philippine auto motive imports, January to June, 1932 and 1933: Passenger cai United Sti Germany.''. Italy.......... Singapore.. Jan. to Ju 1932 .V umber Pe ACETYLENE Dissolved Acetylene for all purposes HYDROGEN Compressed Hydrogen 99.8% pure OXYGEN Compressed Oxygen 99.5% pure WELDING Fully Equip ped Oxy-Ace tylene Weld ing Shops. 'BATTERIES Prest-O-Lite • Electric Stor age Batteries Philippine Acetylene Co. 281 CALLE CRISTOBAL, PACO MANILA, P. I. Trucks United States.......... 649 708,513 809 991,884 Germany................... 7 8,104 Japan......................... 1 304 Total..................... Motorcycles United States.......... Italy........................... 657 716,921 809 991,884 7 3,715 2 410 2 42 1 688 1 104 1 136 Total..................... 11 4,549 3 546 Parts for autos United States.......... 487,422 675,576 11,326 6,783 8,617 5,955 35 Total..................... 860,864 777,667 Great Britain.......... Germany................... 5.169 600 When overcome by fatigue... A Glass of Italy........................... Canada...................... China......................... Singapore.................. Australia................... Total..................... Tires for autos United States.......... Japan......................... Canada...................... Great Britain.......... France....................... Dutch East Indies. Australia................... Singapore.................. 742 241 131 11 514,445 787,803 748,625 56,359 18,599 8,605 8,167 7,866 171 60 697 1,504 75 Mineral Water will* quickly restore your pep and energy Take a glass after meals! Nothing Better For your digestion/ IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 18 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 Rational View . . . (Continued from page 6) the country; and so soon as it was wanting for health administration and sanitation, mortality would mount and the growth of population would be halted, so that the islands would be facing in dependence with a crippled school system and a stagnant and increasingly ignorant population. Roads deteriorating and funds being wanting for their upkeep, such trade as might remain would languish and be much hampered, while peace would be hard to maintain. The situation would soon invite violence and outlawry, and the provinces would soon suffer these demoraliz ing visitations. The people, as would be natural, would resent an unhappy fate they had been taught would never come and that they could not foresee. At this point the authority of the central government could no longer be maintain ed, anarchy would introduce itself as the |>eople lapsed once more into the vain impotence of poverty, ignorance and superstition: democracy to be successful must deliver the goods, keep The trip from Pacific Coast (Vancouver) to Atlantic Coast (Montreal or Quebec) is made in four days in the luxurious trains of the Canadian Pacific Railway. ONLY 3 TO 4 DAYS OCEAN TO EUROPE Via St. Lawrence Seaway! Sail from Montreal or Quebec and enjoy 2 days on the smooth St. Lawrence. Then, only 3 to 4 days more to British and Continental ports. Regular sailings: Empress of Britain. size-speed-SPACE marvel. Famous ,:Duchess” liners for smart economy. Popular “Mont-ships" for solid comfort, low cost. Attractive, low-priced Tourist and Third Class on all ships. YOUR INQUIRIES ARE INVITED CANADIAN PACIFIC industry moving and wealth plentiful and widely distributed, while it needs a great field of per sonnel in the public administration whose loyalty is bought with pay and emoluments and petty dignities. The barefoot policeman, the threadbare teacher, the penniless clerk of court will mind whatever Dives that may vouchsafe them crumbs, which soon will not be the govern ment but an aggressive cacique who interposes his private authority where public authority fails. This astounding picture is not overdrawn, Cuba's plight represents it today. The opinion of realists among Filipinos that this paper para phrases sees this, onlv this, as the fate of the Philippines if made independent while their people are few and their domestic market re quires so little of all they produce, while their overseas market can only be the United States— this cut off sharply by independence. But as the unmistakable signs of sure disaster will be clear before the time arrives for the common wealth to give way to independence, these same Filipinos believe the commonwealth period (of 10 years, under the Ilawes-Cutting FOR THESE GOOD REASONS... GO EMPRESS Reason /...Record size. Reason 2...Record speed. Reason 3... Luxury of Pacific and Atlantic standards. More Reasons...? Ask anyone who’s made an "Empress” crossing! Fortnightlv sailings from ORIENT TO VICTORIA AND VANCOUVER Choice of 2 Routes... Direct Express: Empress of Asia and Empress of Russia make trans Pacific crossing from Yokohama in 9 days. Via Honolulu; Empress of Japan (largest, fastest liner on Pacific) and Em press of Canada add but three days to the journey.... First and Tourist Class. Also, Third Class. RAILWAY SERVICE ACROSS CANADA bill) will be extended and out of it w 11 issue a plan for permanent political relation; hip with the United States. Much depends upon convincing the United States of her own welfare in this matter, her own interest as well as responsibility. Equally as much depends upon good work done here. Until what time? This introduces the changes that would come about through steady increase of the population of the islands at the present rate, and increase of their wealth from their trade with the United States. For instance, a population of 35,000,000 people in the islands ought to consume as much sugar as the present annual crop: persistent endeavor to expand the domestic sugar demand would turn this industry to supplying primarily the local demand. Meantime a quota might be enjoyed in the American market/rAYeHfcfy« ago, when the conditions existed in the Philip pines that have been described, and when the population was small and lacked cohesion, the Philippines exported quantities of rice every year. They did this even late in Spanish times, but soon, in the American period, their demand made them import rice, which continued until only a few years ago, when production began meeting the local demand. They still import rice when the domestic crop is short, may do so this year, but the days of a surplus for export have passed with the mere doubling of the pop ulation during the past 30 years.) A population of 35,000,000 people, enjoying trade with the United States on some reasonable basis, would have such demands for manufac tures as would develop many local industries using the raw products of forests and fields. It would use so much soap and cooking fat, for example, as might divert to domestic demand the bulk of the coconut oil now sold in the United States: at least the domestic market should become a stabilizing factor in this industry, now complained of too much in the United States, and in the cordage industry—both these in dustries being under quotas in the HawesCutting bill. The Philippines will have a population of 35,000,000 people about 1980, or in about 50 years, calculating an annual increase of 1.8%. In prospect this seems a long time, in retrospect it isn't long; it is but 15 years longer than the United States has been associated with the Philippines as the sovereign power. But it ought also to be borne in mind that during these 50 years, the Philippines remaining associated with the United States and having some satis factory reciprocal trade arrangements with that country, growing demands of the increasing population will constantly reduce the proportion of products that to be sold must be exported, and therefore constantly tend to obliterate the irritation certain American producers feel from Philippine produce going into that market; and this tendency would be favorably affected by the enormously increased market America would enjoy in the Philippines. The great point is, however, in the reasoning of Filipinos convinced that a prolonged commonwealth relationship to the United States is the one way out of the problem that arose with free trade, that a large and prosperous population would make such a market for local products as would at last enable the islands to sustain these in dustries without the market in the United States; whereas at any early period, with a poor and sparse population, they could not do this and the advent of independence would entail collapse of industries and a headlong, though wise, flight of capital from the islands. This is the thesis it seems but fair to lay before the people of the islands at this time. The weight a growing and employed population would have in shifting the volume of commerce from export to domestic channels can hardly be overestimated. Conversely, the dependence a poor and failing population would have upon its exports, because domestic consumption would be slight, would aggravate the disaster of the loss of the American market; yet until this market should be cut off, not another one would be found. The Philippines can grow out of their present economic plight simply by growing, and the opinion this paper discusses holds there is no other way out for them. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNALL September, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 LUMBER REVIEW By ARTHUR F. FISCHER Director of Forestry Recommended By Leading Doctors The total lumber and timber exports for June, 1933, was 6,113,232 board feet, with customs-de clared value of 1’152,481, as against 4,975,640 board feet, with customs-declar ed value of 1’196,729, for the corresponding month last year, or an increase of 23 ', in volume and a decrease of 22' i in value. The reduction in value was largely due to the fact that there was a greater proportion of logs shipped this year than in 1932 for the same month. Exports during the first six months of this year registered an increase of 8% ns compared with the correspond ing period in 1932. 'Phis is a concrete evidence that conditions in the luifiber markets have begun to improve. Japan, as usual, was the greatest consumer of Philippine woods during the month under review. The total amount shipped during the month of June, 1933, to Japan was 4,838,264 board feet, mostly logs, as compared with 2,384,576 board feet for the corresjxmding month during the previous year, or an increase of 103' J. 'Phus the recent increase in tariff in that country against local woods has evidently not affected the Philippine trade. The active demand of this market is expected to continue, unless some restriction is placed on the free exportation of logs from the islands. The 1’nited States market continued to pick up. The total amount shipped during the month under review was 802,632 board feet as compared with 504,696 board feet for the corre sponding month last vear, or an increase of 37',J. Prices too have slightly improved. Local pro ducers arc optimistic in view of this favorable showing of the islands’ most impor'ant lumber market, and despite the probable allocation of a lumber quota tor the Philippines under the Industrial Recovery Act. Latest information received in the Bureau of Forestry is to the effect that the lumber code affecting the Philippines has not as yet been finally adopfed. Nothing definite is known as to the final provisions that will be incorporated in this code, but Philippine exporters arc looking forward to better prices for their product as soon as the same takes effect. Shipment to Great Britain registered a decrease of 78%. This decline was offset, however, by increased shipment to Australia. There were 30,952 board feet of lumber ami logs shipped to Australia during the month under review as against none for June last year. Thiw is signi ficant particularly in view of the high Australian tariff still in force against Philippine lumber. There seems to be no question that general business conditions in Australia have improved but unless the emergency Australian tariff affecting Philippine woods is lifted, the return of the large volume of trade which the Philippines used to have with that country, previous to the present depression, is not to be expected. Shipment to China registered a decrease of 83%, as compared with that during June of last year. Lumber production for 46 mills during the month undei review showed an increase of 41%, it being 14,190,784 board feet for June, 1933, as compared with 10,091,232 board feet for the corresponding month last year. This increase is largely due to the night-shift operations of a few of the mills that are actually operating. It should, however, be noted, in this connection, that some of the lumber plants are still shut down. Production exceeded delivery from the mills by 6%. This should not be taken as an unfavorable sign for the reason that inventories in mill yards showed a decrease of 24% at the end of June, 1933, as compared with those at the end of the corresponding month last year. Movements of lumber and timber in the local IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Drink It for Your Health’s Sake TEL. 5-73-06 Nature's Best Mineral Water Windows of the Soul” Y 0 U wouldn’t think so the way some people neglect them. As the constant dropping of water will wear away a stone so trivial eye defects will undermine the best health if not cor rected by proper glasses. Let preservation be the first law of eye care. Have our Optometrists examine your eyes now. & Co. MANILA. 90-94 ESCOLTA PI. MASONIC TEMPLE Always the best in quality but never higher in price. Quality Printing is as essential to your business as well-tailored clothes are to the successful salesman. Attractive letterheads, bill heads, cards, envelopes, labels, etc., are silent but powerful salesman. Why not let them carry your message in the most effective way? The McCullough Imprint ensures quality printing and all that it implies. McCullough service means expert supervision and the intelligent hand ling of your printing problems. Whatever your printing needs may be, you are assured the utmost satisfaction when McCullough does the job. May we serve you? McCullough printing co. Division of Philippine Education Co., Inc. 101 ESCOLTA Phone 21801 MANILA, P. I. 20 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 I | THE YOKOHAMA SPECIE BANK -------------------- LTD. ------- ■ -■ ------(ESTABLIHED 1880) HEAD OFFICE: YOKOHAMA, JAPAN Yen Capital (Paid Up) - - - - 100,000,000.00 Reserve Fund .... 119,750,000.00 Undivided Profits - 5,859,464.04 MANILA BRANCH 34 PLAZA CERVANTES. MANILA S. DAZAI Manager Telephone 23759—Manager Telephone 23755—Account A Cashier Telephone 23758—Export 4 Import Dept. Telephone 23768—Deposit 4 Remittance Dept nio thx ▼TVILL*IP ^CHICAGO, U.S.A. Across America at Low Fares on the NORTHERN PACIFIC RAILWAY VISIT the International CENTURY OF PROGRESS EXPOSITION...see this enormous collection of exhibits from all parts of the world...travel in luxury and comfort on one of America's oldest and best railroads. Private rooms en suite, box-spring beds, boths, borber and valet, radio, library...every modern luxury on the famous NORTH COAST LIMITED Low Summer Fares from Seattle to Chicago and re turn to Seottle on sole May 15 to October 15, 1933. $77-75 $90-30 [ Stop at Y.lllwton. Park an,out. ] 0 .A,. Liiiiij [A 4 ■’h CT1 * MtU'' NORTHERN PACIFIC RAILWAY • C. L TOWNSEND, G.n.r.l Po...ng., Ag.nl, Smith To.ar, Seattle, Wothington • i markets were faily active in 6pite of the rainy season. Local prices also remained ! rm. The average retail prices, as quoted hy various lumber dealers in Manila, as of June 30, 1933, are given below: Sawn Lumber Unsawn Timber Species Price per 1,000 Bd. Ft. in pesos Species Price per Cu. M. in pesos Red Lauan.. 55 Akle............ 35 Tanguile. . . . White Lauan 55 Ipil.............. 36—40 40 Yacal.......... 28—30 Apitong....... 50 Guijo.......... 20 Lumbayao. . 75 Narra......... 46 Palosapis... . 45 Note:—1 Cu. M. =424 Bd. Ft. (Solid) 1 peso =$0.50 approximately (normal rate of exchange) The following statements show the lumber and timber exports, by countries, and mill production and lumber inventory for the month of June, 1933, as compared with the corresponding month the previous year. Total....................... 0,113,232 1*152,481 Lumber and Timber Exports fc>r June 1933 Dcstinat ion Board Feet CustomsDeclared Value Japan................ .............. *4,838,264 I* 76,135 United States.. . .............. 802,632 51,974 China................ .............. 270,088 10,740 British Africa. . .............. 80,984 4,192 Great Britain. . .............. 72,080 6,812 Australia........... .............. 30,952 1,593 Canada............. ............. 15,688 781 Hongkong......... ............. 2,120 236 Japanese China. ............. 424 18 Hawaii.............. ............. — — Spain................. ............. — — ............. — ______ ZT 1932 Destination Board Feet CustomsDeclared Value Japan...................... ........ 2,384,576 P 52,661 United States........ ........ 584,696 33,424 China...................... ........ 1,548,448 77,870 Rrit.ish A frirn 44,096 4,411 20,741 Great Britain........ ........ 327,328 Australia................... Canada............................ 71,656 6,283 Hongkong........................ 11,872 957 Japanese China....... Ilawaii...................... ....... — 1,696 253 Spain......................... 1,272 125 Norway..................... .... — 4 Total............... .... 4,975,640 1*196,729 Note:—‘This represents mostly solid log scale, that is, 424 board feet to a cubic meter. For .'t6 Mills for the month of June Lumber Deliveries from Mills Month 1933 1932 June 13,302,361 14,706,841 Lumber Inventory Month jlunc^ 1933 1932 Mill Production Month 1933 1932 June 14,190,784 10,091,232 Note:—Board feet should be used. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL SHIPPING REVIEW By H. M. Cavender General Agent, The Robert Dollar Co. Total shipments for the month amounted to tons, an increase of about 15,000 tons over the previous month. This is quite a good showing for this time of the year. To Japan and China, hemp continues to move in good volume, ship ments amounting to 37,546 bales. Lumber and log shipments were also good, totalling over four million feet. To the Pacific Coast, cigars for local delivery were only fair, but for overland destinations the total was very good. Copra shipments were again heavy, amounting to nearly 15,000 tons. Shipments of this commodity for June and July totalled more than for the previous five months. It is encouraging to note increasing quantities ol lumber moving, the total for July of about 2,500,000 feet board measure being the best for several years. Ilcmp shipments to the Pacific Coast, both local and overland, also show an improvement. To the Atlantic Coast and Gulf, sugar ship ments were light, amounting to only 40,000 tons, Tone Mtsrl. Sailing Tons Sailin 16,602 with 45 of which 1,292 carried in American Bottoms with 31,902 with 19 of which 21,739 carried in American Bottoms with China and Japan.............. Pacific Coast Local Deliv ery ................................... Pacific Coast Overland Delivery.......................... Pacific Coast Intercoastal Steamer........................... 1,308 with 14 of which 985 carried in American Bottoms with Atlantic Coast Ports........ 67,907 with 23 of which 31,791 carried in American Bottoms with European Ports................. 18,765 with 16 of which 37 carried in American Bottoms with Australian Ports................ 960 with 8 of which carried in American Bottoms A grand total of 138,417 tons with a total of 80 sailings of which American bottoms carried 56,290 tons with a total pf 17 sailings. ,vith but this of course is to be expected at this time of the year. Movement of other items, how ever, was good, there being a noticeable improve, ment in cigars, copra, hemp, desiccated coconutand coconut oil. To European Ports, the lumber movement was poor, but copra, copra cake, hemp, and tobacco were shipped in fairly good volume. From statistics compiled by the Associated Steamship Lines, during the month of July 1933, there were exported from the Philippine Islands the following: > Tons 10 10 446 carried in American Bottoms with 6 THE PRESIDENT LINER FLEET WORLD-WIDE SERVICE AMERICAN MAIL LINE “The Short Route to America” To SEATTLE via CHINA, JAPAN and VICTORIA Pres. Grant - - Sept. 20 Pres. Cleveland-Sept. 27 Pres. Jackson - Oct. 11 Pres. Jefferson - Oct. 25 Pres. Grant----- Nov. 8 Travel “President Liner” Tourist Class Manila to Seattle or San Francisco only $200; with private bath, $227. “President Hoover” and “President Coolidge” Special Class at slightly higher fares. DOLLAR STEAMSHIP LINES EAST OR WEST^ TO NEW_ YORK Via China-Japan, Honolulu San Francisco Panama Canal Pres. Lincoln - - Sept. 23 Pres. Coolidge - Oct. 7 Pres. Wilson - Oct. 21 Pres. Hoover----- Nov. 4 Pres. Taft------- Nov. 18 Via Suez Canal and Europe Pres. Polk ------ Sept. 18 Pres. Adams - - Oct. 2 Pres. Harrison - Oct. 16 Pres. Hayes-----Oct. 30 Pres. Filmore - Nov. 13 PHILIPPINE INTER-ISLAND STEAMSHIP CO. SUPERIOR INTER-ISLAND SERVICE S. S. “MAYON” sails Tuesdays at 2 P. M. from Manila to Iloilo Zamboanga, Cebu, Iloilo back to Manila. FUTURE SAILINGS Sept. 19 Sept. 26 Oct. 3 Oct. 10 Oct. 17 Oct. 24 FOR BOOKINGS AND INFORMATION APPLY TO: THE ROBERT DOLLAR CO. General Agents Robert Dollar Bldg., Port Area — MANILA — Telephone 2-24-41 87 Escolta IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 22 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1933 Here’s how to get Manilas! List of Philippine Tobacco Agenti Genuine Manila Long Filler Cigars in cellophane are obtain able in your city or nearby! Distribut ors furupon re quest to — C. A. Bond 15 Williams Street, New York City Collector of Internal Revenue Manila, P. I. MANILAS made under sanitary conditions will satisfy your taste! (Health Bulletin No. 28) Rules and Regulations for the Sanitary Control of the Factories of Tobacco Products. ••Section 15. Insanitary Acts.—No person engaged in the handling, preparation, processing, manufacture, or packing of tobacco product or supervising such employment, shall perform, cause, permit, or suffer to be permitted any insanitary act during such employment, nor shall any such person touch or contaminate any tobacco products with filthy hands or permit the same to be brought into contact with the tongue or lips, or use saliva, impure water, or other unwholesome substances as a moist ening agent; Passenger departures show an increase in first and intermediate classes over last month's figures. First class departures increased from 192 to 239 and intermediate departures from 395 to 494 This increase is attributable to the heavier traffic to China and Japan and also to the Pacific Coast. There were 128 first class and 224 intermediate class to China and Japan for the month of July as against 84 first class and 219 intermediate for the month of June. Fiftytwo (52) first class and 181 intermediate to the Pacific Coast as against 31 first and 102 inter mediate for June. Third class traffic continues to decrease due to the unfavorable conditions on the Pacific Coast and in Honolulu. Third class traffic to China and Japan for July is prac tically the same as for the previous month. The following figures show the number of passengers departing from the Philippine Islands during the month of July 1933: China and Japan..................... Honolulu.................................... Pacific Coast........... .............. Europe via America................ Straits Settlements and Dutch East Indies............................ Europe and Mediterranean ports beyond. Colombo........ America via Suez..................... IntermcFirst diatc Third 128 224 245 1 9 5 52 181 33 11 13 0 31 13 3 6 43 8 6 10 0 Australia.................................... Total................................... 239 494 294 AUGUST SUGAR REVIEW By Geo. H. Fairchild New York Market: The market for the first two weeks of the month under review was unusually inactive, very little business having been done in actual sugar. A few transac tions in Cubas hedged on the Sugar Exchange at 1.45 cents c. and f. were made during the first week, while small sales present shipment Philippines were made during the second week at 3.50 cents and prices advanced to 3.55 cents for August shipment Philippines on the 10th. Part of the loss suf fered on the Exchange for “future” quotations in the first week was regained in the second week as a result of the political complications in Cuba where strikes interfered with business. Little business in actual sugar was done during the third week, and September shipment Cubas after declining to 1.41 cents on the 14th instant, was sold on the 17th to refiners at 1.45 cents and on the 18th to Gulf refiners at 1.48 cents. Quota tions for futures on the Exchange suffered a heavy loss as the result of the political develop ments in Cuba aggravated by the slow progress being made in the Washington sugar stabilization conference and the threat of the Administration to take drastic steps to insure cooperation for the control of the world wheat situation. The market during the fourth week showed a firmer tone and the loss suffered in the previous week in “future” quotations on the Exchange was more than regained, and this improvement continued uf> to the end of the week wnen quota tions reached the highest point for the month. The improvement was ascribed to the difficulty in purchasing Cuban sugar as the result of the closure of 60% of all Cuban ports. On the 23rd sellers of Cubas asked 1.60 cents c. and f., at which price there were no buyers. On the following day, however, small sales present shipment to refiners were made at i.56 cents c. and f. The last week of the month was uneventful, fluctuations on the Sugar Exchange being very slight, although the market for actual sugar was decidedly weaker at the close, as the result of the withdrawal of the refiners from the market and the unfavorable news from Washington as regards the Sugar Conference. After sales of October-November shipment Philippines under existing sales contract form" including Cuban duty clau& were made at 3.FJ cents on the 28th, no buyers at this price could be found on the 31st for January-February shipment Philippines. Cuban ports reopened on the 29th and dealers’ anxiety to sell produced an adverse effect on prices so thaFi^jas^auld not be found at 1.58 cents. That prices on the U. S. market were above world parity was indicated in the sale on the 29th of Peruvian and Santo Domingo sugar on the basis of 1.09 cents c. and f. for SeptemberOctober shipment and 1.07 cents for prompt shipment. ' Futures: Quotations for future deliveries on the Exchange fluctuated during the month as follows: High Low Latest 1 1 0 September.............. ............ 1.46 1.29 1.45 December............... ............ 1.58 1.38 1.55 January.................. ............ 1.61 1.40 1.59 March..................... ............ 1.68 1.46 1.64 May........................ ............ 1.73 1.50 1.69 July......................... ............ 1.78 1.56 1.74 Stocks: Stocks in the U. K., U. S., Cuba, Java and European statistical countries were reported on August 23rd as 6,951,000 tons as compared with 7,187,000 tons in 1932 and 6,848,000 tons in 1931. Philippine Sales: Sales of P. I. centrifugal sugar were reported in New York during the month as follows: Long Tons Cent per lb. From to Sales................................. 20,767 3.45 3.63 Local Market: Very little business was done in the local market except in the fourth week when Iloilo exporting houses were reported having purchased fair quantities of new crop centrifugals on the basis of P8.25 per picul for December-March delivery. Exporters^ quota tions fluctuated during the month from P8.00 P8.10 to P7.90 and again to the previous level of P8.10. Crop Prospects: The estimate of the 1933-34 crop to be harvested from September of this year remains unchanged at 1,327,564 long tons equi valent to 1,486,871 short tons. The Philippine Sugar Association adopted a resolution in August favoring the limitation of Philippine production to 1,150,000 long tons, such limitation to become effective with the 1934-35 crop. Hearings on the sugar limitation bill in troduced in the House of Representatives were completed during the month but it is still un certain whether or not this bill will be enacted into law in view of its many complexities. Philippine Exports: Export statistics for the month of August as reported to us from private sources are as follows: Long Tons Centrifugals............................................ 31,136 Refined.................................................... 2,075 Total for the month..................... 33,211 Exports of these two grades of sugar from the Islands to the United States for the ten months of the current crop year from November 1, 1932, to August 31, 1933 are as follows: Long Tons Centrifugals......................................... 992,985 Refined................................................ 53,376 Total exports to date.............. 1,046,361 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Septe«»r, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 23 Commodities Coconut Oil.......................................... Copra...................................................... Cigar (Number)................................... Embroidery........................................... ^Tobacco JJesiccated and Shredded Coconuts. Wats (Number)................................. umber (Cubio Meterej.................... Copra Meal.......................................... Cordage.................................................. Knotted Hemp..................................... Pearl Buttons (Gross)....................... Canton (low grade cordage fibre).. . All Other Products............................. ToKl Domestio Products. .. United States Products........ Foreign Countries Products. Grand Total. Cotton Cloths................... Other Cotton Goods........ Iron and Steel, Except Machinery..................... Rice..................................... Wheat Flour..................... Machinery and Parts of.. Dairy Products................ Gasoline............................. Silk Goods......................... Automobiles....................... Vegetable Fiber Goods... Meat Products................. Illuminating Oil............... Fish and Fish Products .. Crude Oil........................... Coal..................................... Chemicals, Dyes, Drugs, Etc................................... Fertilizers........................... Vegetables......................... Paper Goods, Except Books............................. Tobacco and Manufac tures of........................... Electrical Machinery.. .. Books and Other Printed Matters................. Care and Carriages........ Automobile Tires............. Fruits and Nuts............... Woolen Goods.................. Leather Goods.................. Shoes and Other Foot ware................................. Coffee................................. Breadstuff, Except Wheat Flour............................... Eggs..................................... Perfumery and Other Toilet Goods................ Lubricating Oil................. Cacao Manufactures, Ex cept Candy................... Glass and Glassware.. .. Paints, Pigments, Varnish, Etc........................ Oils not separately listed. Earthern Stones and Chinaware..................... Automobile Accessories.. Diamond and Other Pre cious Stones Unset.. .. Wood, Reed, Bamboo, and Rattan.................... India Rubber Goods.. .. Soaps................................... Matches............................. Cattle................................. Explosives.......................... Cement............................... Sugar and Molasses........ Motion Picture Films. .. Other imports.. .•.......... Total. PRINCIPAL EXPORTS July, 1933 July, 1932 Quantity 481,840 1,575,045 1,028,072 82,555 11.800434 080,877 40,806 82,477 537,500 Value % Quantity 4G 4 6 8 7 2 2 9 2 9 9 7 5 4 2 7 P14.097.823 100.0 Value % Quantity Value 70,250,122 7,471,012 9.540,001 5,820,004 10,835,234 4 0 1 2. 0. 0. 0. 0. 4 2 5 7 0 1 3 1 0.0 0.2 0.3 0. 1 7^0 92,750 33,909 P12,410,731 100.0 P17,250,199 100.0 Notb:—All quantities are in kilos except where otherwise indicated. PRINCIPAL IMPORTS July, 1933 July. 1932 Monthly average for 12 months previous to July, 1933. CARRYING TRADE IMPORTS Value 1,198,686 110,314 558,978 354,225 508,326 491,307 510,303 492,641 268,472 211,509 302,489 222,043 456,128 172,020 386,577 168,489 35,953 29,990 107,070 105,003 112,338 125,028 82,424 44,699 % 13 7 8 0 8 0 3 2 3 3 0 8 7 3 3 2 2 2 4 1 3 3 9 2 6 1 2 3 0 0 9 6 2 3 0 6 0 0 2 0 0 8 0 0 9 6 0 0 0 0 0 6 5 5 2 0 8 0 0 7 Value % Value % Nationality of Vessels July, 1933 July, 1932 Monthly average for 12 months previous to July, 1933 Pl.732,683 967,459 Pl,555,049 . 935,407 12 7 9 8 Value % Value % Value % 328,987 216,188 28,148 136,738 179,623 36,858 166,719 123,148 78,241 21,339 77,760 92,381 64,697 74,231 92,728 9,102 124,581 4,631 13,124 16,086 924,090 0. 2. 3. 3. 2. 0 2 5 7 American. . British........ Japanese... Dutch........ German.. .. Norwegian. Philippines. Spanish . .. Swedish.. .. Danish........ Portuguese. Panaman . . P4,402,252 30.4 4,661,295 32.2 1,137,139 7.7 925,293 6.3 912,850 6.2 985,661 6.7 97,265 0.7 119,719 0.8 242,006 1.7 51,661 0.3 723,582 4.8 P4.771.533 4,644,125 632,000 581,325 042,497 216,918 6,065 38.7 37.6 5.0 4.7 5.2 1.6 P3,920,840 4,138,620 894,833 626,545 594,388 964,876 57,020 2 0 2 7 2 6 2 7 2 0 2 3 1 0 2 0 0 0 0 2 5 0 0 7 0 0 6 7 0. 269,659 333,140 306,564 44,963 76,833 88,558 95,610 24,261 2 1 2 9 0 2 2 2 2 8 6 3 0 7 9 1 0 8 0 0 0 0 6 0 0 0 0 0 0 0 0 0 0 5 1 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES Ports Monthly average for July, 1933 July, 1932 12 months previous , to July, 1933 Value % Value % Value % 12,073 45,389 0.3 292,952 2.3 272,833 2. 1 11,812 53,843 210,281 8,420 315,904 50 2,389 0.1 0.4 1.9 2.7 By Freight....................... P14.258.723 97.9 P12.118.219 98.2 PH,946,020 98.3 By Mail........................... 322,815 2.1 235,899 1.8 205,475 1.7 Total......................... P14.581.538 100.0 P12,3.54,118 100.0 P12,152,095 100. 0 EXPORTS Nationality of Vessels American. . British........ Japanese... German.. .. Norwegian. Spanish.. .. Dutch........ Philippines. Chinese.. .. Swedish.. .. Danish........ Panaman .. Italian .... July, 1933 July, 1932 Monthly average for 12 months previous to July, 1933 Value % Value % Value % P5,077,609 2,495,764 3,333,130 321,085 1,437,285 36 17 22 2 10 3 2 0 0 0 0 0 28 33 25 0 0 3 5 7 6 L3 12.4 0.7 7 8 6 5 2 By Freight................... By Mail....................... P13.991.213 99.3 P12.317.805 99.3 P16.645.309 96.5 106,610 0.7 92,926 0.7 604,890 3.5 Total..................... P14.097.823 100.0 P12.410.731 100.0 P17.250.199 100.0 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES July, 1933 July, 1932 Monthly average for 12 months previous Countries to July, 1933 Value % Value % Value % 8 68 2 77.7 2.5 8 5 Manila........ Iloilo.......... Cebu.......... Zamboanga. Jolo............. 58 17 20 0 2 1 5 Pl 5,188,370 5,572,400 3,167,245 130,552 20,455 394,916 290,911 60 22 12 0 0 1 1 6 6 9 7 2 7 3 10.4 0.6 0. 1 1. 7 1. 3 United States................. United Kingdom............ cEm.’.'.'. French East Indies.. .. Germany.......................... Spain................................. Australia.......................... British East Indies.. .. Dutch East Indies........ France............................... Netherlands..................... Italy................................. Hongkong......................... Belgium............................ Switzerland...................... Japanese-China............... Denmark.......................... Other Countries............. 7 7 4 0 2 0 0 2 0 0 0 0 0 0 0 0 2 5 6 5 7 3 3 6 Total. P28.679.361 100.0 P24.764.849 100.0 P29,402,141 100.0 Total. i. i 0*4 2^4 1.9 0 0 3 2 0 0 0 0 0 3 3 2 0. 0.6 P28.679.361 100.0 P24,764,849 100.0 P29,402,141 100.0 24 THE AMERICAN CHAMBER OF COMMERCE JOURNAL Septeml 1933 BUSINESS AND PROFESSIONAL DIRECTORY Kerr Steamship Co., Inc. General Agents “SILVER FLEET” Express Freight Services Philippines-New York-Boston Philippines-San Francisco (Direct) Roosevelt Steamship Agency Agents Chaco Bldg. Phone 2-14-20 Manila. P. I. Myers-Buck Co., Inc. Surveying and Mapping PRIVATE MINERAL AND PUBLIC LAND 680 Rizal Avenue Tel. 2-16-10 INFORMATION FOR INVESTORS Expert, confidential reports made on Philippine projects ENGINEERING, MINING, AGRICULTURE, FORESTRY, LUMBER, ETC. Hydroelectric projects OTHER COMMERCIAL AND INDUSTRIAL ENTERPRISES BRYAN, LANDON CO. Cehu, P. I. Cable Address: "YPIL,” Cebu. Manila Wine Merchants LIMITED P. O. Box 403 Head Office: 174 Juan Luna Manila, P. I. Phones 4-90-57 and 4-90-58 Branch Store: 39 Alhambra opposite Elks Club Phone 2-17-61 PHILIPPINES COLD STORES Wholesale and Retail Dealers in American and Australian Refrigerated Produce STORES AND OFFICES Calle Echague Manila, P. I. « ® « * CHINA BANKING CORPORATION MANILA, P. I. Domestic and Foreign Banking of Every Description HANSON, ORTH & STEVENSON, INC. Manila, P. I. Buyers and Exporters of Hemp and Other Fibers Chaco Building — Tel. 2-24-18 BRANCHES: New York — London — Merida — Davao THE AMERICAN CHAMBER OF COMMERCE JOURNAL P.O. BOX 1638 TEL. 21126 International Harvester Co. of Philippines formerly MACLEOD & COMPANY Manila—Cebu—Vigan— Davao—Iloilo Exporters of Hemp and Maguey Agents for INTERNATIONAL HARVESTER CO. MADRIGAL & CO. 8 Muelle del Banco Nacional Manila, P. I. Coal Contractors and Coconut Oil Manufacturers MILL LOCATED AT CEBU P. O. Bom 1394 Telephone 22070 J. A. STIVER Attorney-At-Law-Notary Public Certified Public Accountant Adminiatration of Estates Receiverships Investments Collections Income Tax 121 Real, Intramuros Manila, P. I. “LA URBANA” (Sociedad Mutua de Conatruccidn y Prtstamos) Prestamos Hipotecarios Inversiones de Capital Paterno Building, Calle Helio. MANILA, P. I. The Earnshaws Docks and Honolulu Iron Works Sugar Machinery Slipways Machine Shops Port Area Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Manila Railroad now offers RADIO and Telegraph Service IMPORTANT INFORMATION COMMERCIAL TELEGRAMS are accepted at all Railroad telegraph, telephone and radio stations from passengers of trains and ships operated by the Manila Railroad at any time between 5:00 a. m. and 9:00 p. m. Telegrams to or from train passengers are immediately trans mitted and promptly delivered. Any train passenger may deliver his telegram to the Train Conductor who will file the message at the next telegraph station for transmission to the addressee upon payment of neces sary fee. Telegrams from persons other than train passengers and rail road shippers may be accepted for transmission only when Government postoffices are closed on Sundays and holidays and outside of business hours. Messages to and/or from points where there are no Government telegraph stations are accepted at any time between 5:00 a. m. and 9:00 p. m. Messages addressed to persons residing within one kilo meter from railroad station or within the City of Manila and the towns of San Juan and Pasay are delivered free of charge. For further i nformation. Dlease inquire from Train Conductor or from local Station Agert who will be glad to answer your questions and extend all possible assistance. MANILA RAILROAD COMPANY Four Merchants’ Opinions One merchant says: “. .. It is difficult to tell what we have learned from our experiences except that, speaking for our organization, we have all learned to be very humble.” An other merchant, as well known, says: “Success is going to be measured by our consistent everyday business, with balanced stocks in wanted staples and styles that are in demand; in the continued promotion of those goods.” A third says: “...the promotion of timely, wanted mer chandise is essential to our continued profit making; in fact, to our very existence.” A fourth says: “...and I cannot too strongly repeat that we in our store are firmly of the opinion that not one peso should be spent on the advertising of goods not in demand —and that not one peso less than what is required to do a thorough job should be spent on the advertising of goods in demand.” When you place your advertising in the MANILA DAILY BULLETIN you are making a direct appeal to the buying power of Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL WARNER, BARNES & COMPANY, LTD. London Manila Iloilo Cebu Bacoiod NEW YORK AGENTS Ledward, Bibby & Co. 106 Wall Street IMPORTERS AN’I) EXPORTERS Shipping Depa.tinent Agents for: Nippon Yusen Kaisha Cunard Line White Star Line Bibby Line Insurance Department l Transacting: * Sugar Fire ! Marine Automobile 6 Workmen’s Compensation Miscellaneous Insurance [, Machinery' Department Machinery, Diesel Engines, Condensing Plant, Shipbuilders and Engineers. Agricultural Department All Classes of Fertilizer Import Department Sperry Flour Co. & Sugar Bags ( .ibt Sum lard (. I. •• Manila Office: Perez-Samanillo Building Escolta 'I PREVENTS DESTRUCTION OF WOOD FROM ATTACK BY ROT, TERMITES, WHITE ANTS OR ANAY, AND BOK-BOK STAMPED ON LUMBER MEANS THAT IT HAS BEEN PRESSURE TREATED WITH , A WOOD PRESERVATIVE OF EXCEPTIONAL MERIT. LUMBER IS PERMANENTLY PRO TECTED AGAINST ALL FORMS OF ROT AND INSECT ATTACK. IT IS CLEAN AND TAKES PAINT OR VARNISH AS SATISFACTORILY AS UNTREATED WOOD. A NEW INTERNATIONAL LUMBER TRADE MARK LUMBER IS ROT PROOF ‘ LUMBER IS PAINTABLE Zjpf'i LUMBER IS ODORLESS LUMBER IS PERMANENT AtA TION ZMA prevents attack by anay and bok-bok. Tests have shown that only a very small quan- I tity \ is necessary to kill termites or I ZM A does not change the strength, physical appearance, nor any other characteristics of the wood and has the added advantage of making it somewhat fire resistant. ZMA lumber may be used unpainted since it is colorless or it may be painted or finished in any manner desired. ZMA lumber is PRESSURE TREATED and I as such is not to be confused with open tank, dip. spray or brush treatments. Unless lumber I is PRESSURE TREATED It is not permanently I protected against decay and anay. ATLANTIC GULF & PACIFIC COMPANY OF MANILA Sole Licensee 71-77 Muelle de la Industria Philippine Islands Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL