The American Chamber of Commerce Journal

Media

Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Description: Manila : The Chamber, 1921-1976
52 v.
Issue Date: Volume XIV (No. 5) May 1934
Publisher: The American Chamber of Commerce of the Philippine Islands (Member Chamber of Commerce of the United States)
Year: 1934
Language: English
Subject: Philippines -- Commerce -- Periodicals.; Philippines -- Economic conditions -- Periodicals.
Rights
Place of publication: Manila
extracted text: P. O. Box 1638 MANILA, P. I. P4.00 Per Annum 35 Centavos a Copy Facing the Facts in PhilippineAmerican Trade: H. B. Pond U. S. Market Essential to the Philippines: Senate President Manuel L. Quezon Status of Americans and Their Families under Philippine Commonwealth: Clyde A. DeWitt Other Features and the Usual Expert Reviews of Commerce It has to be Good Begin With Experienced tobacco men go into the fields in Cagayan Valley to select the tobacco used in the cigars offered to you by us. Then.... proper ageing and cur ing under skilled super vision brings you that quality which distin guishes cigars made by TA IB AC A IL IE IRA Who Pays Your Gas Bills? It is easy enough to say “Aw, the cook looks after the kitchen”. . . . but does the cook pay the gas bills? The cook does NOT. . . . you pay it. From this standpoint of kitchen economy you ought to be interested in these new, gas-saving GAS Ranges. New, improved top burners. . . . venti lated, insulated ovens. . . . oven heat regulator. . . . these and other improve ments actually help to cut down your gas bills. . . . something that the cook can not do with the old range. Come in and look them over MANILA GAS CORPORATION IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 1 THE MANILA HOTEL LEADING HOTEL IN THE ORIENT Designed and constructed to secure coolness, sanitation and comfort under tropic climatic conditions Provides every Western convenience combined with every Oriental luxury Finest Dance Orchestra in the Far East Management — HUBERT C. ANDERSON Here’s how to get Manilas! Meralco Street-Car Advertising Genuine Manila Long Filler Cigars in cellophane are obtain able in your city or nearby! Interior Car Cards • Back of Fare Receipts • List of upon re - quest to — Exterior Dash Signs • Bumper Signs Manila. P. I. Distributors furC. A. Bond Philippine Tobacco Agent: 15 Williams Street, New York City Collector of Internal Revenue Business Managers are constantly striving to increase the volume of sales. Street-car Advertising is considered by many to be the best medium in the city of Manila for achieving this end. Include an appropriation for Street-car Adver tising when preparing your next annual budget. For rates and full particulars—call up A. B. Tigh, Advertising Manager Manila Electric Company 134 San Marcelino Telephone 2-19-11 MA N IL AS 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; ....”. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 rAK? beyond your hopes----The New TC>Rt) V"S for 1934 You have heard about the Xew Ford Y-8. Seen it on the road. Xow give yourself the unforget able thrill of driving it. Study this car from any angle . . . Beauty . . . Style . . . Comfort . . . Economy . . . Perform ance and you find QUALITY that represents a new standard of value. This is the Room iest and Most Powerful Ford Car Ever Built. A DEMONSTRA TION WILL CON VINCE YOU. “After We Sell We Serve” Manila Trading & Supply Company Main Office and Display Room: Port Area, Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 3 WARNER, BARNES & COMPANY, LTD. London • Manila • Iloilo • Cebu • Bacolod NEW YORK AGENTS Ledward, Bibby & Co. 106 Wall Street IMPORTERS & EXPORTERS Shipping Department Insurance Department Agents for: Transacting: Nippon Yusen Kaisha Cunard Line White Star Line Bibby Line Fire Marine Automobile Workmen’s Compensat ion and Miscellaneous Insurance Machinery Department Sugar Machinery, Diesel Engines, Condensing Plant, Shipbuilders and Engineers. Agricultural Department All ('lasses of Fertilizer Import Department Sperry Flour Co. Sugar Bags Cable Address: “Warner,” Standard Codes Manila Office: Perez-Samanillo Building ESCOLTA Your Guarantee of Good Paints! YCO CAMERA SUPPLY COMPANY KODAKS CINE KODAKS KODAK FILMS DE VE LOPING PRINTING ENLARGING PICTURE FRAMING SHEAFFER PENS—PENCILS SKRIP 138 Escolta (Cor. David) Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 4 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Subscription and United States: P4.00 per year Foreign Subscription: $3.00 U. S. Currency, per Single Copies: 35 Centavos WALTER ROBB Editor and Manager Pond Suggests Means of Islands’ Economic Survival His Rotary Talk: Men who say the United States is unfair to the islands “do not appreciate the economic problems with which the United States is wrestling” On Thursday, May 10, the Philippine legislature in special session May 1 having accepted the commonwealth-independence bill unanimously, President H. B. Pond of the Pacific Commercial Company gave the Philippine the following economic counsel in the form of an address at the weekly luncheon of the Rotary club. “In recent weeks I have listened to speeches here regarding our future, in the light of Philip pine independence legislation. One, while not minimizing the difficulties ahead of us, was optimistic; another dwelt on the development of local industries and the finding of other markets for our products; still another talked of the intangibles. None was specific. I do not criticise the views which were expressed. They may be right. Personally, however, I do not believe that our problems are going to be solved, unless we face the facts. There is no reason why, being human beings, we should act like ostriches and bury our heads in the sand. The facts may be unpleasant; they may give us many a headache, but by facing them at least we shall realize and better understand what our problems really are, and thus know what eventually may happen to us. “Our problems here will be primarily economic. It is true we shall have social problems and political problems, but after all, as has been repeatedly demonstrated in many countries throughout the world during these last few years of depression, monetary difficulties and financial distress have been the fundamental causes of social upheavals and political revolutions. We hear much these days of experiments being made for the purpose of solving the social pro blems arising from world conditions; but fundamentally those problems, and the efforts which are being made to solve them, whether they be by Communism, by Fascism, by Hitlerism, or by New Deal-ism, are economic. “Anyone who gives thought to our situation her come to two conclusions: “1st: That the present standard of living of the Filipino people and the present services of government are dependent on the production of surplus products for export; and “2nd: That our exports are overwhelmingly dependent on trade with the United States. “The Philippines today is agricultural country. Agricultural products, either raw or wholly or partly processed, make up the bulk of our exerts. We do not here produce, nor are we likely to pro duce within any short period of time, many of those industrial products which are essential to the maintenance of present living standards. Metals and their manufactures, drugs, chemicals, paper, fuels, certain foodstuffs, most clothing materials and many other products must be imported. Even though the Philippines had the fuels and the raw materials, the necessary capital is not available locally, or, under present conditions from abroad, for the production of most of these essential products, while for many of them the local market is so limited that they could not, even with capital, be produced here at any reasonable cost. Such products must be im ported. “But to import them we must sell abroad the products which we here can produce. No nation can, taking into consideration the invisible foreign trade items, import more than it exports, unless it borrows money abroad, and even that cannot be done indefinitely. Here, at least for some time to come, we cannot expect to borrow money from abroad unless the people of these Islands are willing, which I doubt, to accept political loans, with all that they imply. If we cannot sell our products abroad we cannot buy from abroad those products which we desire and which are requited for the maintenance of our ndards. “The question is, therefore, whether, in view of the independence bill which has now been approved and accepted, it. will be possible for the Philippines to sell abroad sufficient, exports ---- r-- Xi- --nnorts which are required TKis vhich I propose to analyse. In to nav.fQr't.he imports which are rex is the question which I propose to analyse. ±.. doing so I am assuming that that bill will not be amended as to time, and, therefore, that on the 4th of July, 1946, Philippine independence will be formally recognized by the United States. If, of course, the period is shortened, the full economic effects of that bill may be felt sooner. This is a bridge which will have to be crossed if and when we come to it. For the present we must consider the law as it now stands. “The economic provisions of the Philippine independence bill may be divided into four periods: “1st:—From the present time up to the inau guration of the Commonwealth Government, which probably will not be much before 1936. During this period there will be no limitation on the present free trade arrangement with the United States except as has been, or which may be, imposed by extraneous legislation, such as the Jones-Costigan bill for sugar. “2nd:—The five years following the inauguration of the Common wealth Government, during which period free trade with the United States will continue, but with the quantity of sugar which will be admitted into the United States free of duty limited to 850,000 long tons, coconut oil to 200,000 long tons, and cordage to 3,000,000 pounds in each calendar year. “3rd:—From the sixth to the tenth years following the inaugura tion of the Commonwealth Govern ment, during which period, while limited free trade will continue export taxes will be imposed here, 5% in the first year, 10% in the second year, and so on until the tax in the tenth year will be 25% of the United States duties then in force. “4th:—On and after the 4th of July following ten years after the inauguration of the Commonwealth Government free trade with the United States ends, and Philippine products will be subject to the full duties provided for in the United States tariff. 6 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 “During the first period about the only limi tation which is likely to apply to Philippine products is on sugar. Under the Jones-Costigan bill, recently approved, the quantity of sugar which may be shipped to the United States will be limited to about 925,000 long tons. This, however, is not part of Philippine independence legislation, but is the United States program to control and limit the production of sugar for the United States market from all sources sup plying that market. While this limitation will make necessary a considerable reduction in the production of sugar here, and while this will be difficult to accomplish, for the quota is retro active to January 1st, 1934, the quantity already shipped to arrive in the United States in 1934 probably exceeds the quota for the entire year, and the next crop will be substantially greater than the quota which has been fixed, thus giving us a surplus of unmarketable sugar of approxi mately 700,000 long tons; nevertheless, once the necessary readjustments are made, we shall on the whole fare well. We should remember that the maximum quantity of sugar which weshipped to the United States prior to 1932, only three years ago, was 741,000 long tons, thus making the present quota about 184,000 tons more than that maximum. “During the second period, beginning probably in 1936 with the inauguration of the Common wealth Govern ment, the quan tity of sugar which we may ship to the United States duty-freewill be limited to 850,000 long tons, or about 75,000 long tons less than the quota for the years 1934 and 1935. While this will mean an ad ditional reduc tion, the quan tity still is far in excess of that shipped by us to the United States in any year prior to 1932. The other limitations in the independ ence bill are not likely ser iously to affect us, for the largest quantity of coconut oil which we have ever shipped to the United States is about 185,000 long tons, while cordage is in value relatively unimportant in our export figures. Thus, during this second period, or until about 1941, there still is no reason for concern; on the contrary, with even a slight recovery in world conditions, these Islands should prosper. “In the third period, however, when exjrort duties begin to be applied, we shall face a different situation,—a situation in which the exports of a number of our products will slowly but steadily diminish, and in some cases finally end. The imposition of export duties on coconut oil, even though but 5% of the United States duties, will probably finish the coconut oil industry in the first year; if it is not finished in the first year, it surely will be in the second year, when the export duties are taised to 10%. It is also probable that when the export duties begin to be applied cigar shipments to the United States will cease, for the United States import duties on cigars are very high, amounting to several times their value. Any imposition of export duties, therefore, probably will close the United States market to Philippine cigars. The same thing probably is true of buttons, hats, em broideries, cordage and a number of other minor lines. If exports do not cease in the first year, they are very likely to cease in the second or third years. Sugar probably will be able to survive the 5% duty which will be imposed in the first year and possibly even the higher duties in the second and third years, although this will IMPORTS to a considerable degree depend on the price of sugar. Estimates which have been made, however, and in particular by the Philippine Economic Association, indicate that before the tenth year the United States market will be closed to Philippine Sugar. This third period will therefore be a period of liquidation, and the drying up of the flow of exports to the United States. “In the fourth period, that is after the in dependence of the Philippines has been recogniz ed, the flow of exports to the United States will practically cease. No sugar, no coconut oil, no cigars, no buttons, no cordage, no embroideries, can possibly be sold in the United States over the tariff wall which there has been erected. “It therefore becomes important to determine what the loss of the United States market means to the Philippine Islands. The accompanying graph shows Philippine exports from 1902 to 1933 inclusive. It shows that the real increase in exports began in 1909 when free trade began. There was a great increase during and im mediately following the War as a result of the artificial conditions and the very high prices which then prevailed. After the War period and the period of readjustment exports steadily increased in value, and enormously in physical volume, until today, despite low prices for practically all of our commodities, including sugar, they are many times what they were before free trade began. “This graph also shows the changing nature of our exports. Sugar has become our predomi nating exjx>rt product, its value now being about (50 per cent of the value of all exports. Hemp, which formerly was the principal export product of the Philippines is today relatively unimportant in value. Coconut products, while much greater in volume, arc today relatively low in value because of low prices. “This second graph shows imports and exports, both total and also front and to the United States. It shows that from 85 per cent to 90 per cent of all Philippine exports are now sold in the United States, and that the increase in our external trade has been entirely due to the free access of Philippine products to the United States markets. While we have been free to sell our products elsewhere, we have not been able to do so, and now we are almost entirely tie pendent upen the markets of the United States. This is partly due to the tree entry of our prod ucts into the United States, but principally to the fact that other markets have been closed to our products by the growth of economic nationalism and the erection of economic barriers throughout the world. “The third graph shows actual exports in 1908, the year before free trade began, and in 1933; what our exports will be in value up to the time of the inauguration of the Commonwealth Government with sugar limited to about 925,000 long tons, what they will be during the first five years following the inauguration of the Com monwealth Government, when sugar exports will be limited to 850,000 long tons, and, finally, what they will be in 1947 after the end of free trade with the United States. This graph shows the facts which we must face. It shows that exports from the Philippines will on the basis of present volume, when free trade ends, be reduced to less than what they were a generation ago. Im ports, so essential to the maintenance of living standards here, must of necessity be corre spondingly reduced. “The last three columns are on the basis of 1933. Actually they will vary considerably, for no one can today say what the price level or what the relative prices of our export products will be two years hence, to say nothing of twelve years hence. These columns do show, however, what our exports would have been in 1933 if the conditions which we now face had then prevailed. “In the preparation of this graph I have eliminated all sugar. There are some people who believe that if sugar cannot be sold in the United States it can be sold elsewhere. Per sonally I do not believe that that is possible, unless there is a complete reversion of present tendencies, which have been strongly toward eco nomic nationalism and the erection of economic barriers, and in particular against sugar. Many years ago the Philippines exported sugar to Japan and to China. Today Japan takes little, if any, sugar for in the last twen ty years Japan has developed her own sugar industry in For mosa and there now produces sufficient sugar for her home consumption. China is now developing her own sugar in dustry. This year in South China three mills are being erected and a definite program has been arrang ed so that during the next few years China will find it unneces sary to import any material quantity of sugar. But even though we might sell seme sugar to China we should immediately find ourselves in competition with Java, and what has happened to Java? Up to about three years ago Java was producing three million tons of sugar a year. She now has on hand about two and one half million tons of sugar for which it is difficult to find a market. 'Illis year the crop is being limited to 500,000 tons. '1 he erection of economic barriers in India, and, as a result thereof, a large increase in the production of sugar in India, have reduced Java’s outlet by a million tons a year. In Eu rope economic barriers have greatly increased sugar production so that with but few ex ceptions the countries of Europe import no sugar at all; in fact, several countries of Europe not only have sufficient sugar for home consump tion, but a surplus for export. “The situation in Cuba is similar to that of Java, except that Cuba does have a preference in the United States market. Only a few years ago (Alba produced 5,250,000 tons of sugar; now she produces about 2,000,000 tons. The closing of other markets to Cuba and the increased production of “flag” sugars have caused great economic distress and social and political re volution in Cuba. Both Java and Cuba pro duce sugar much cheaper than does the Philip pines. They surely have diligently searched for new markets for their sugar, but they have been unable to find them. If they cannot f nd them how can the Philippines expect to do so? 'there seems to be little hope, therefore, for the Philippine sugar industry, once Philippine sugar is placed outside of the United States tariff wall. May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 7 “The reduction in exports of other Philippine products has already Deen commented upon. Exports of some products will entirely cease, others will be greatly reduced. New market will be hard, if not impossible, to find. Is it not reasonable to suppose that our producers and our merchants have sought markets for Philip pine products, not alone in the United States but throughout, the world? They have been free to sell their products everywhere, but they have been unable to do so because they have found either that costs are too high, or, prin cipally, that the erection of economic barriers has made sales impossible. “It has frequently been stated that an in dependent Philippines will be able to negotiate trade agreements with foreign countries which will provide outlets for our products. Isn’t it chimerical to expect that a trade agreement can be made for sugar, our principal product, when most nations have by the erection of economic barriers, developed their own sources of supply? What are the other products which we have to offer that the world is today seeking? But even though we could find some nation willing to make a trade agreement with us, how could such an agreement benefit us? Most na tions of the world have commercial treaties with other nations which provide for “most favored nation” treatment. No trade advantages could be given to the Philippines without giving the same advantages to every other nation, and thus we should have no advantage at all. “The outlook for the Philippines is, therefore, as the law now stands, very black indeed. Fortunately, however, we arc not facing disaster immediately; but, on the contrary, as I have pointed out, reasonable prosperity, depending only on world conditions, seems to be assured dur ing the next six or seven years. Only after that period is there any real reason for concern; and long before that time comes we may face a different situation, for the law may be changed. There is reason for hoping that may be done. “Thus when the Tydings-Mc Duf fle bill was approved, there was a definite understanding with the President and with the leaders in congress that a study would be made of the Philippine economic situation, and, while no definite promises were made, it was indicated that if it is found that the economic provisions of the bill are too onerous they will be amended. “President Roosevelt in a spe cial message to congress stated:— “ ‘I do not believe that other provisions of the original law need be changed at this time. Where imperfections or inequal ities exist, I am confident that they can be corrected after proper hearing and in fairness to both peoples. “ ‘May I emphasize that while we desire to grant complete independence at tl.e earliest proper moment, to effect this result without allowing sufficient time for necessary political and economic adjustments would be a definite injustice to the people of t he Philippine Islands themselves short of denial of independence itself.’ “The Philippine Legislature in its resolution accepting the bill qiloted the first part of this message of the President, and added that it ‘gives to the Filipino people reasonable as surance of further hearing and due considera tion of their views.’ “Again, the bill itself provides in effect that at least one year prior to the date of the recog nition of independence, a conference shall be held between the representatives of the Philip pine Islands and those of the United States for the purpose of discussing and submitting recom mendations for the trade relations between Philippine Islands and the United States after independence. “The door is, therefore, open and steps should now be taken to secure amendments to the law. Preparations also should now be made tQ dem onstrate to the representatives of the United States, and in particular to the congressional leaders who are expected to visit the Philippines this year, first: that the foundation of the Philip pine economic structure, the services of govern ment and the very standards of living of the Filipino people are based on free trade with the United Stutes, and second: that if that foundation be destroyed, the entire superstruc ture of government and of society will collapse, and such a collapse will undo much of what here has been accomplished during the last generation. “In seeking our way out of the difficulties which confront us we bear in mind that we can not continue to secure large favors and fair treatment from the United States unless Philip pi ne-American trade relations are placed on a reciprocal basis. If you will examine again the graph showing imports from and exports to the United States you will note that our exports to the United States are far greater than our imports from the United States. In the year 1933 our exports to the United States value more than double our imports from the United States. In our trade with the United States we have been piling up very large favor able balances which we have been using in part to settle unfavorable balances with foreign countries. We are using our advantage in the United States market to the disadvantage of the United States. This cannot indefinitely con tinue, for if we expect or hope to continue to have access to the markets of the United States for our products on a preferred basis, we must accord to the products of the United States real reciprocal treatment hero. This is even more evident when it is considered that the duties waived by the United States on the products of the Philippine Islands are fully four times as much as are the duties waived in the Philippine Islands on the products of the United States. The duty which has been waived on sugar alone has amounted to more than 1’100,000,000 a year; while the people of the United States have paid to Philippine producers for their sugar over 1’80,000,000 a year more than they have paid to Cuban producers for a like quantity. The free trade arrangement today is one-sided, and if it is to continue for any length of time tVere must be a much better balance in our trade relations. “I have heard it stated, particularly in recent months, that the United States is not'fair to the Philippine Islands. Those who make those statements evidently do not appreciate the economic problems with which the United States is wrestling; and they are not facing the facts. The Philippine independence bill is not satisfactory because of its ruinous economic provisions; nevertheless, one can hardly say that congress was unfair in passing it, for it was pronounced satisfactory by the representatives of the Filipino people before it was originally approved. That bill has now been accepted by the Philippine Legislature, but, as a result of the work of the last mission to the United States, there are definite official commitments that amendments of the economic provisions will be considered. We may not like the bill; we may know that it will result in disaster; but, having accepted it, at least for the present, the Filipino people are estopped from saying that Statements have been made that the limit of 850,000 tons for Philippine sugar is too low. It undoubtedly is too low, based on present production; but I again point out that prior to 1932 the largest quantity of sugar which we ever shipped to the United States was 741,000 long tons, or 109,000 tons less than the limit fixed by the bill. We considered ourselves very well off in 1928 and 1929, when our exports of sugar to the United States were but 561,000 and 685,000 long tons respectively. The trouble here has been that, despite repeated warnings, and despite world conditions, we blindly went ahead increasing our production of sugar. Our great increase has been in the last few years, and now of course we must adjust ourselves to a lower level. “For the same reason, although we may question retroactive legisla tion, we can hardly consider unfair a quota for sugar of about 925,000 long tons between now and the inauguration of the commonwealth government, for there has been no real discrimination against the Phil ippines as compared with Hawaii and Puerto Rico. Furthermore, the representatives of the Philip pine sugar industry at hearings on the Jones-Costigan bill stated that although this quota is not satisfac tory, nevertheless the industry would accept it. “That fair treatment has been accorded by the United States to the Philippine Islands in the face of what, from the United States’ point of view, has been considered as a one-sided arrangement, let us remember— “1st. That the United States during the entire period which it has exercised sovereignty here has not asked the Filipino people to contrib ute one centavo toward the defense of the Islands from foreign aggression. The people of the United States have been taxed to protect the people of these Islands. “2nd: That bonds of the Philippine Govern ment heretofore sold in the United States have been tax exempt. “3rd: That, with administration support, a bill is pending in congress under which the United States will make to the Philippine Islands a gift of about 1’47,000,000, this being the theoret ical profit on the interest bearing deposits of Philippine currency reserves in United States banks, assuming that such deposits had con sisted of gold; and this although such profit probably will be principally used for the purchase with devalued dollars of obligations of the Philippine government or of its instrumentalities. “4th: That for the last twenty-five years, while internal revenue taxes collected here on United States products have been kept by the Philippine government, similar United States (Please turn to page 10) THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 Quezon Asserts Philippine Trade Balance Benefits U. S. Also Wants America taught value of our purchases from her, and the Philippines taught importance of American market to them—that commercial relations may be permanent Senate President Manuel L. Quezon, majority leader and head of the mission to Washington that brought back to Manila the Tydings-McDuffie act to establish a 10-year commonwealth eventuating in independence, addressed the American chamber of commerce at a luncheon in his honor Friday, May 11—members and their guests to the number ot about 200 persons thoroughly representative of the American and cosmopolitan business com munity ot the islands. President H. M. Cavender delivered the welcome, his words appear in a box next page. The following version of Mr. Quezon’s address derives from the stenographic report of it made jointly for the Tribune and the Bulletin: “Mr. Chairman, Secretary of the Chamber of Commerce, Guests: “ The last time, and maybe the only time that I addressed the American Chamber of Commerce was several years ago. I quite well remember the faces of the gentlemen around me. It was a very hostile crowd when I started to speak, and I think it was a very friendly crowd when I finished. The guests I see this time are not a happy crowd, but they seem to be at least a friendly crowd. I hope that when I am through that it will not be a hostile crowd. 1 am very happy, Mr. Chairman, to be your guest, not only because 1 consider it an honor to be a guest of the Chamber of Com merce, but because I will have the pleasure of addressing you and dis cussing the great economic problems that all of us must face. “The Congress of the United States has enacted the McDuffie-Tydings law, which purposes to grant independence to the Philippine Islands in ten years after the establishment of the Commonwealth. You all know that there has been, and still is, the greatest political fight among the Filipino people on account of the rejection by the legislature of the former Hare-IIawes-Cutting law. The McDuffie-Tydings law in its economic provisions is exactly like the Hare-Hawes-Cutting law, but in the poli tical provisions there is a substantial difference. While under the IlareHawes-Cutting law the inde[>endence to be granted to the Philippine Islands was not complete, under the McDuffie-Tydings law the United States renounces completely the right to maintain military bases. “While the economic conditions of the McDuffie-Tydings law are those of the Hare-Hawes-Cutting law, there is this that can be said at this time with reference to the McDuffie-Tydings law: “As you all know, the McDuffie-Tydings law was enacted by Congress after the President of the United States had sent a special message recom mending the enactment of that law. The President states that such inequalities or imperfections as may be found in the provisions of the law can be]':orrected. We must bear in mind that the objections of the Phil ippine Legislature to the Hare-Hawes-Cutting law are responsible for tne meaning and import of that clause. The President, when he wrote this, had before him the resolution of the Philippine Legislature stating all those objections to the Hare-Hawes-Cutting bill. He also had before him my own memorandum, that of our mission. Of course the political aspects of the provisions of the Hare-Hawes-Cutting law were discussed by the legislature, and my memorandum made it plain that in order that the government of the Commonwealth might be safe and assured of success it was necessary that all economic provisions of the law be amended. Of course the legislature accepted the McDuffie-Tydings law in good faith, but in accepting it in good faith it also placed its confidence in the encouraging statements of the President and in the attitude of the respon sible leaders of the United States Congress. I will not dare to assure you, gentlemen, that the provisions of the McDuffie-Tydings law will be amend ed. All I am willing to do is to recall those words of the President, as I have done. It is true that due to the fact that a committee is coming from the United States to investigate further conditions in the Philippine Islands and see that we have every reason to be able to expect the freedom which the government of the United States has taught the Philippine Islands during all the years of American occupation, that if this committee should find that these economic conditions are going to cause serious injury to the people of these Islands, are going to jeopardize the success of the government of the Commonwealth, and later of the government of the Philippine Republic, that those members of the committee will recommend to Congress that these provisions be amended; and if the President of the United States is convinced that these recommendations are based on facts, he will recommend carrying them out. “You will remember that I said in my memorandum that as far as the political capacity of the Filipino people to establish an honest government was concerned, the question which may be in the way of that success is the economic situation of the Islands. Under the terms of the HareIIawes-Cutting bill the sugar industry will be crippled. I may add that after the enactment of this law an excise tax on coconut oil has been im posed. We will be worse off unless some remedy is immediately forth coming. The time is past when a government can be established at the expense of the people, making them pay high taxes and without giving them anything in return for the taxes they pay. The time is past when the governments are satisfied with collecting taxes and spending them on armies and navies with which to support, defend and maintain a dynasty. Governments, in order to be safe, to be stable, to receive the support of a people, must have money to devote to the improvement of the people and to the necessary administration of good laws. •'These are things that the community demands from their government. Therefore it is absolutely necessary if we are going to succeed in the estab lishment of the government of the commonwealth, it is absolutely neces Senate President Quezon at the American Chamber of Commerce; May 11 Left to right at G aest-of-Honor table: J. P. Heilbronn, J. W. Haus9ermann, H. B. Pond, Mayor Tomas Earnshaw, Rep. E. Rodriguez, Director Kenneth B. Day, Senate President Manuel L. Quezon, President H. M. Cavender, Speaker Quintin Paredes, Director J. C. Rockwell. Hon. Rafael R. Alunan, L. Weinzheimer. Director E. M. Grimm, F. H. Hale, L. L. Spellman, F. J. McSorley, and N. H. Duckworth. May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 9 sary to place the government of the Philippine Islands, to place our people here, in a position not only to continue the work which the government has been doing but to improve it. And therefore the problems that we are concerned with, the problems of the government as well as our people are economic. “For many years the American Chamber of Commerce has been telling the Filipinos that they should divert their attention from politics, and con centrate more on the economic situation of the Philippines. I must confess that I have been one of those who have dissented, and I must confess that if the situation was to be repeated, and the Chamber of Commerce advised it once more, I would have to dissent again, because of the lack of knowledge you have of why Filipinos talk of the political, with utter disregard of the economic aspect. Now, gentlemen, I am going to speak to you as I always do, frankly. It is so natural, so human, that every civilized community should want to manage its own affairs that as long as the Filipinos did not feel, did not see that they were going to have that right and exercise it, they insisted on making a fight for it. Now we have an assurance that in a very short time the offi cials of this government are going to be Filipinos and we will have the right to govern ourselves. Not only that, we are going to be allow ed to make use of it. It is natural that we should give our considera tion and attention to the allimportant aspects of this govern ment, without which we can never make a success of the natural right that we have to govern ourselves. “When I went to the United States the last time, the first few speeches that I delivered were devoted to the question of the future economic relations between the United States and the Philippines. I tried to convince many audiences in America that the continuance of trade relations between the United States and the Philippines on the basis of reciprocity was not only beneficial and even necessary to the Philippines, but was also beneficial, if not necessary, to the United States. I think we all agree on that. But there is no use of arguing about this. The American Congress as constituted at present is determined to close the American market to the Fili pinos. They have been made be lieve, through a well organized and carried out campaign, that our products are ' competing with certain important American prod ucts. And these members of Congress hear the demand of their respective constituents to shut out these Philippine products, which in their opinion are competitive with their American products. “We will have to institute a well organized campaign in the United States to convince the American people that our sugar is not com peting with beet sugar. It is PRESIDENT CAVENDER’S INTRODUCTION “Mr. President, our other distinguished guests, and fellow American business men: “In view of the unsettled conditions existing at this time because of the uncertainty of possible future events, this chamber considered it advisable in the Interests of business to secure at first hand the opinion and ideas of one who can speak with authority and knowingly of what we may expect. “As we all know, an independence bill was passed recently, and, under its provisions, certain trade relations to last for the period of ten years were, to say the least, implied. Un fortunately, however, the ink of the President’s signature to this bill was not dry when lobbyists in Washington, inimical to Philippine interests, began presenting measures restricting our possible trade in Island products with the United States. Congress has already passed measures relative to sugar, co conut products and tobacco, and executive action has been taken concerning lumber—all of which are detrimental to our interests. “The effect of these measures will be reflected not only in our trade and economic welfare, but there may be political repercussions seriously affecting capital, labor, and public order. “As matters now stand, it looks very much as if one sugar crop out of three must be eliminated. The duty of Cuban sugar has been reduced by one-half cent per pound. Between this and restriction as to the amount of sugar that may be shipped to the United States free of duty, we are facing a reduced sale value of our product. “The excise tax to be imposed upon our coconut products will be ruinous to that industry, which affects one-third of the entire industry of the Philippine Islands. “A reduction in the United States internal revenue—which it is proposed to grant to United States domestic cigars—will partially, if not wholly, paralyze our export cigar industry. “The quota restrictions on our lumber will put this in dustry at the mercy of foreign buyers. Already a large num ber of mills have shut down entirely, and those actually operating have greatly curtailed their production. “With all these obstacles, is it to wonder that the merchants and manufacturers of Manila view with some alarm the future outlook for business in this Archipelago? All we have been able to do up until now is to conjecture. One man’s opinion is as good as another’s, and, I am sorry to state, the great majority of such opinions is very pessimistic. There, in order that we may be set right on our course, and have a firm foundation for our future action, the Chamber has asked the Honorable Manuel Quezon to give us some words of en lightenment and to suggest our course for the successful navigation of the ship of commerce at this time and during the incumbency of the commonwealth government. “Americans do not want to go out of business in the Philip pines. They will not go out of business unless it becomes apparent that conditions external and internal are such that they can no longer carry on. “There is no necessity to introduce our guest as he is known to all of us. Therefore, I will content myself with merely presenting Mr. Quezon, heed well what he has to say. Mr. Quezon, what is your answer?” PRESIDENT CAVENDER’S CLOSING REMARKS “We have all heard and paid close attention to the remarks just delivered by our guest of today, and I feel sure that his remarks have gone a long way towards quietening fears that may have been entertained up to now. “American business men are in the Philippine Islands to do legitimate business, and I can assure Mr. Quezon and the other leaders that the members of the American business community will cooperate in any honest and intelligent effort aimed to improve business conditions here and to per mit us to continue carrying on the business which we have so laboriously built up during the best and most productive years of our lives. “We want no part in politics, because the farther business keeps from politics the better. All we want is justice and impartiality and a fair measure of protection on the part of the duly constituted government now and in the future. “I thank you, Mr. Quezon, our other distinguished guests, and members, for honoring us with your presence on this occasion.” competing with the Cuban sugar, but the Cuban sugar is not Amer ican. Our oil is not injuring American production. Our tobacco is not injuring American tobacco. Now that they have succeeded in bringing the Filipino people to buy American products, a particularly good market for American products has been opened up. If they do away with the trade relationships of the two countries they will close this market to the American people. “1 have noticed and have read the speech delivered by my good friend Mr. Pond before the Rotary Club yesterday. Last night, at the party given by the Chinese Consul-General in honor of Dr. C. T. Wang a Filipino friend of mine took the matter up and asked me to read this speech, so I would have some remarks to make on it here. Now I am glad that I did. I am glad I read it, not because I am going to say something that is not supported by Mr. Pond. Mr. Pond is recognized as a great economist, but he made a very incautious state ment in his speech. I will say to Mr. Pond that that part of his speech is going to be distributed all over the United States by the sugar people. (Want of full accuracy prevents using the stenographic report in this portion of it; but the reference was to the latter portion of the Pond address, in full in this issue of the Journal, dealing with balances of Philippine-American trade unfavorable to Amer ica.—Ed.) “We must always have a balance of trade, not only because it is to our interest, but because it is to the interest of the United States as well. What good does it do an American exporter to have his goods not paid for? That is just the very thing that is happening to America now. What happened in Cuba? America spent billions of dollars there. In the beginning the trade balance was favorable, then the Cubans began using the same money they were borrowing from America and soon were falling in debt. The American exporter was selling to the Cuban nation with the same money that Wall Street had loaned to Cuba. Yet the Filipinos buy textiles, iron, etc., with what they get in America for their own products. America might have a very nice balance sheet. But which is best? To have a good balance sheet or to have the cash in your pocket? “Now again, in considering the balance of trade we must take into consideration certain investments that have been made. However, I admit that at this time the balance of trade is unusually large in favor of the Filipinos. In a way it is not the lack of desire of the people of the Philippines to be in with the American exporter. If you examine the records of our balance of trade of a few years ago, you will find that there was then much difference cither way. 10 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 “As a result of changes in the monetary systems of the different countries of Asia and Europe, etc., they have been able to send their products into the Philippines at a much lower price than American products could be sold. Ana much of this was done before the United States went off the Gold Standard. Therefore, we bought the products that were cheaper rather than those that were more expensive but of the same quality and it was due to this that we went to America on the Empress of Canada and Empress of Japan when friend Cavender here did not have the Coolidge and Hoover. Seeing this, Mr. Dollar realized that we are not foolish and he built new boats. “And I want to see this government made as it should be. Please re member that one year ago the Philippine legislature enacted a law—the anti-dumping law. We have enacted a law compelling foreign exporters to the Philippines to pay the duty on their goods at gold values, and have raised the duty on other goods. But I want to say this to Mr. Pond, and to every American exporter, they should remember that when large trade balances in favor of the Philippines came to pnss as a result of changes in the monetary systems, etc., these changes which were the result of the economic depression of years ago, the government of the United States was trying to put a limitation on the free exporttion of Philippine products into the United States. Now please see that it was very hard to get the Philippine legislature to pass a law to protect American importations when the legislators saw the American Congress trying to reduce our exports. Unless the Philippine legislature had succeeded in passing such a law, conditions would have been the reverse. It was very hard to tell our colleagues in the legislature to enact this law when they saw our friends and colleagues at Washington trying to reduce our exports to the U. S. "Now proceeding, we cannot depend entirely upon the goodwill of any President, any Secretary of War, or any leader of the U. S., which has a democratic government, a government that answers to public opinion. “Now let us get together and do what our enemies have been doing in educating America. Let Americans see that our products here are not doing them any harm. Let them see that the different products of this country are the combined efforts of America and the Philippines, and a work of which any nation would be proud, and make them feel foolish in letting the work which they have done here go to pieces and perhaps be profited by, by others who had nothing to do with it. (Reference was here made to vain proposals and effort toward finding other markets than the United States for Philippine products—markets which never mate rialize.—Ed.) There are other markets, but they don’t pay. We do not want to sell and get I.O.U.’s in exchange for our products, because we cannot support our people here with I.O.U.’s. Let’s get together in the interests of both countries to perpetuate trade with America. Whether the Philippine Islands are under their control or not, we must convince the American people that while the Filipino people are getting the benefit from their trade with America, America, on her part, is going to profit from her trade with the Philippines. “Mr. Cavender says that Americans who are in business here do not want to go, they want to remain, to stay under circumstances which are not ad verse. Now, gentlemen, if I can speak for my people, I want to say that I hope not only will Americans but foreigners who have invested in the Philippines keep their investments here. Where is the country that offers a better opportunity in the way of rapid development? And I am positive that under the government of the commonwealth and the government of the Philippine republic, when established, foreign capital here will receive due considerat ion. As a matter of fact, as far as the Americans are concerned, the Tydings-McDuffie act gives them special rights with Filipinos, and it is right that we should give evidence to the government and people of the United States of our gratitude for the work she has done during the last 35 years in the developing of this country, not in words, not in beautiful speeches, but in evidence. The best evidence we can give, gentlemen, of our good will and our gratitude is by giving the opportunity to the Amer icans who are in the Philippines to make good. “As a matter of fact, I believe it is essential for the success of the people and for the success of the government of the Philippines that the trade relationship continue. It is a guarantee, not only of the economic stab ility of the people of the Philippine Islands, but likewise of the stability of the government of the commonwealth and the future government of the Philippine republic. “Although no guarantee will be given by the government of the United States to help us, 1 know positively that the President and the leaders of Congress are sympathetic judging from the editorials of all the papers of the United States. I know that your government is not going to let the Philippines go to the dogs. They have a great sincere sentimental attach ment for the people of these Islands. They feel proud ol the work they have done and they are not going to let anything happen that will destroy that noble ideal which has been theirs in the Philippines. I am positive they will stand by us, and they are going to extend to us a helping hand until we have succeeded in arriving at a very safe port. You, gentlemen, are the only ones that can injure yourselves; if you get panicky and begin to doubt everything and export your money, you of course are going to suffer. But if you have faith in your government, if you have faitn in your people, as I have faith in your government and in your people and as I have faith in my government and my people, I am sure that nothing will happen that will stop the onward march of the progress of this country. You have made me happy by offering me this opportunity to speak to you today.” Pond Suggests . . . (Continued from page 7) taxes collected from the people of the United States have reverted to the Philippine treasury. 5th: That the coconut oil excise tax bill, as passed, gives to the Philippine Islands a pre ference of two cents, United States currency, a pound over coconut oil imported or made from copra imported from any foreign country, thus giving to the Philippines a practical monopoly of the coconut oil and copra business in the United States. Not only that, but the excise tax to be collected on Philippine coconut oil, and on coconut oil made from Philippine copra, is to be paid to the government of the Philippine Islands. Assuming that there is no reduction in the consumption of coconut oil as a result of the tax, this will amount to about 1’40,000,000 a year. This is a tax on the people of the United States for the benefit of the Philippine Islands. The principle of this excise tax may be condemn ed: but at least Congress has given a decided preference to the Philippine Islands and, even now, Congressional leaders are trying to secure the approval of a new bill which will exempt Philippine coconut oil from the tax. “6th: That the proceeds of the processing tax on sugar to be collected under the aut hority given in the Jones-Costigan bill, amounting to about P20,000,000 a year will likewise be paid to the Philippine Islands. This tax also will he paid by United States consumers for the benefit of the Philippine Islands. “In years gone by we have heard quoted here the oratorical statements of Patrick Henry. One of the things he railed against was taxation without representation. One is tempted, per haps facetiously, to remark that with the return to the Philippine Islands of these large sums collected from the taxation of the American people, and with the inauguration of the Com monwealth Government, the people of the United States without their having representa tion in the government of the Philippine Islands. The roles have been reversed. “I have heard it stated many times, and, in fact, have read in official reports, that the present free trade arrangement with the United States is unfair to the Philippines, because, while to be admitted free of duty into the United States a Philippine product cannot contain more than 20 per cent in value of foreign materials, there is no such limitation as ’to United States products. The makers of such statements have not faced the facts. The United States has a high, pro tective tariff; the Philippines a low tariff, prin cipally for revenue. It would not be fair to permit foreign materials to be imported into the Philippines, paying a relatively low rate of duty, and then by a simple process costing but little, to enable them to be admitted free of duty into the United States. Without such a limitation that is just what could, and would, be done. On the other hand, such a practice is hardly possible as to imports from the United States, for the duties in the United States generally are high. If foreign materials were used, therefore, their cost, after paying the duty, probably would be much higher than the duty paid cost of the same ma terials imported directly into the Philippines from abroad. No draw back of the United States duties can be secured, for one of the free trade limitations, working both ways, is that no drawback be claimed or allowed. “I remember an official report a few years ago in which this question was discussed, and an example was given to show that this 20 percent foreign material limitation is one-sided. It was stated that coffee could be imported into the United States from, say, Brazil, and then merely by roasting and grinding it and packing it in tins, it would be admitted here free of duty. The writer of this report couldn’t have picked a worse example, for he was all wrong. Such coffee is dutiable here, even though imported from the United States, for it is not an article which is the growth, product, or manufacture of the United States. If you don't believe it, look at any annual report of the Collector of Customs and see how much duty is collected on imports of roast and ground coffee from the United States. “In this respect I believe, therefore, that this limitation is really not unfair. “I admit that there are two sides to these questions, but I have presented them in the way that I have so as to emphasize what I have be fore stated: that the United States has played fair, and still is playing fair, with the Philippine Islands. I believe that, on the whole, there can be no just criticism of the treatment which has been accorded here, and particularly in economic matters. “As the United States has played fair with the Philippine Islands in the past, I cannot believe, therefore, that it was the intention of the United States, when independence legislation was approved, to give to the Philippine Islands both liberty and death. I believe further that if we will face the facts, and that if we will unite in presenting those facts to the proper authorities at the proper time, disaster may be avoided. Conditions in the United States may not make possible at this time the necessary changes in economic arrangements, but conditions are going to change, and if we play fair with the United States and then properly present our case, I believe that we can secure even better economic treatment from the United States, and thus avoid the disaster which threatens to overwhelm “Let’s face the facts. Let’s recognize and frankly admit that, as the law now stands, we are heading for economic chaos and disaster. But, facing these facts, and knowing that a way out has been left for us, let us try to find that way out by trying to secure those changes in the law which are necessary for our economic and social salvation.” Booklet Free The Canadian Pacific company, 14-16 calle David, Manila, has an illustrated booklet on The Sky Line Trail. It is on the pleasures of hiking in the Yoho valley, Canada, the name deriving from an Indian expression of wonder and awe, as if to say Tremendous! or Wonderful. Copies of the booklet, free, are sent upon request! May, 1934 11 THE AMERICAN. CHAMBER OF COMMERCE JOURNAL Commissioner Hester Made Murphy’s Staff Finance Man Worthily earned position, at a time when well found ed conservatism should be in high demand in solving problems due to acute but passing circumstances On furlough of 1 year from service with the Federal gov ernment, American Trade Commissioner Evett D. Hester went to Malacanan May 1 on full time for a year as finance and economic adviser to Governor General Frank Murphy. Carl H. Boehringer, Amer ican trade commis sioner recently on station in British Ma laya, temporarily fills, as acting trade com missioner, Hester’s place with the Fed eral government in the Philippines. Only since he came to Ma nila as trade com missioner has Hester worked for the Fed eral government in the islands, the greater number of his years here have been given to the Philippine government; and even as trade com missioner, his duties as ex ojjicio adviser to the governor general on matters of economics were discharged in behalf of the Philippines. Now that the islands, at a time of political change, are to have all of Hester’s time for a year, it is predicted that it will soon be evident to them how valuable he makes his services to his employer. His fund of knowledge pat to his duties is deep, yet added to every day; his mental honesty is such, and his detachment as a student, as enables him to give rounded and dependable counsel on the side of a question that his personal opinion does not favor. “If you are resolved to do this thing your way,” he can say, with all pleasantness, “then here are the means of doing it.” In council he puts his views clearly and defends them ably. At his desk he carries out whatever has been decided upon. Deception and intrigue are foreign to his nature: what he is to your face he is to your back. Being an economist, data are his eloquence: facts, graphs, digital comparisons. Study ing a question, he draws it in statistics; and he is glad of the smallest detail for additional perspective; and his least state ment, saying nothing of his definite conclusion, is only ready when all this is thoroughly in his mind and he can back his words with the book. This implies that he has the habit of tense application. He has. It is physically wearing, but for recreation he finds in the Philippines pastimes to his liking: days in the provinces on archeological research (with his friend Dr. H. Otley Beyer), and the collection of old por celains either of rare or scientific value. Evenings, he enjoys the movies and the informal fellowship of questing, unassured conversation. Cultured, he knows the art of conversation. At his bachelor’s table in the old Mayor Brown residence on calle San Luis, his home, he makes a capital host. Everything said is quite off the record. During these hours you are as likely to behold Hester the Liberal as you are Hester the Conservative: it is a piquant mixture of play and seriousness. Hester is now 41 years old, at his ma turity. He was born in Capron, Illinois, in 1893. His father was a Methodist mi nister, the family is pretty much made up of ministers and tea chers. He got his uni versity training at Northwestern, his economics therefore from one of the best sources. Grad uated in 1914, he came to the Philip pines as a teacher in 1916 and spent 4 years as a high-school instructor, principal and superintendent of schools at various sta tions in the provinces before, in 1920, he went to the agriculture college at Los Banos to found the chair of rural economics. He was also in charge of publications and a great reliance of Dean Baker’s in matters great and small pertaining to the college. He left the islands in 1925 to return to the United States via Europe, and soon after going to Washington he qualified for a place in the foreign and domestic commerce bureau, Herbert Hoover’s special pride in the commerce department. In 1926 he went to Spain as a trade commissioner, and during 4 years studied and traveled much in that country and acquir ed its language. This fitted for the post at Manila, which he got in 1930. It is widely conceded that he has filled it unexceptionably. Carl H. Boehringer, taking over from Hester at the trade commissioner’s office temporarily, was graduated from Michi gan State in 1925 and got into trade-commissioner work after some years in newspaper life—a natural gradation from the editorship of the college paper during his undergraduate years. In 1928 and 1929 he worked on the Detroit News, of the Scripps-Booth string. All his experience in the for eign and domestic commerce bureau has been in the Far East. His first assignment here was to Singapore, during 1930; his second, to Batavia, until July 1933, when he returned to Singapore and where he was on duty as acting trade com missioner, and about to go on leave, when called to Manila on account of his colleague’s transfer to Malacanan. Let no man fail to note he is reading vital history—of tomorrow, of course. A new regime is establishing in the Philippines. Men sitting in council at Malacanan are in key positions relative to this regime, which will tend to seek their counsel, finding it single-purposed; and it will find none among them abier, or more single of purpose, than Evett D. Hester. Business especially is most fortunate that he is to be there, meaning the whole business community of the islands. 12 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 The American Chamber of Commerce O F T H E Philippine Islands (Member Chamber of Commerce of the United States) DIRECTORS H. M, Cavender. President K. B. Day, Vice-President John L. Headington. Treasurer J. R. Wilson, Secretary C. S. Salmon J. C. Rockwell E. M. Grimm Paul A. Meyer Verne E. Miller ALTERNATE DIRECTORS E. J. McSorley L. D. Lockwood S. R. Hawthorne F. H. Hale E. E. Selph, General Counsel COMMITTEES PUBLICATIONS COMMITTEE: H. M. Cavender, Chairman K. B. Day R. C. Bennett J. R. Wilson BANKING COMMITTEE: C. M. Cotterman, Chairman N. E. Mullen J. R. Lloyd RECEPTION. ENTERTAINMENT 8s HOUSE COMMITTEE E. J. McSorley. Chairman J. R. Wilson LIBRARY COMMITTEE: S. A. Warner. Chairman SHIPPING COMMITTEE: E. M. Grimm. Chairman E. J. McSorley G. P. Bradford E. W. Latie INVESTMENT COMMITTEE: H. M. Cavender. Chairman K. B. Day J. L. Headinpton J. C. Rockwell DeWITT ON AMERICANS’ STATUS We are fortunate in being able to give our editorial space this month to publication of the brief which follows, work of Attorney Clyde A. DeWitt: CITIZENSHIP OF AMERICANS RESIDING IN THE PHILIP PINE ISLANDS AND THEIR FAMILIES When, on the 36th anniversary of the Battle of Manila Bay, the Philippine Legislature accepted the Act of Congress providing for the establishment of a commonwealth government in these Islands and the recognition of their independence at a later date, the attention of not a few of the American residents here was drawn to the auestion of how their citizenship, and that of their families, is to be affected by the institution of the commonwealth government in this country and its complete sever ance from the United States at a future date. Some have felt apprehen sion that they might lose their American citizenship upon the institution of the coming political changes. All fear in this regard is quite unfounded. The establishment of the government provided for in the Tydings-McDuffie Law would have no effect, one way or the other, upon the citizenship of Americans residing in these Islands. 'If one is an American citizen now he will remain an American citizen notwithstanding that Congressional piece of legislation— unless of course, he voluntarily renounces his citizenship and adopts another. The question, therefore, is, Who are American citizens? As a general proposition it may be stated that all persons born in the United States, including Hawaii, Puerto Rico, and the Virgin Islands, and those who have been naturalized, are citizens of the United States, excepting, in the case of Porto Ricans, those who made a declaration under oath, within six months from March 2, 1917, of their decision not to be American citizens. (Fourteenth Amendment to the Constitution, sec. 1; U. S. C. title 8, secs. 1, 4, 5, 5b). A full discussion of the question of who are citizens of the United States would require a voluminous treatise, entirely beyond the scope of the present article; so for the present we shall consider only such points as may prove to be of practical interest to local Americans. In doing so, we shall deal with certain more or less familiar conditions found among Americans residing in this country. 1. Americans who have no birth certificates or passports.—These are, of course, American citizens. The fact that they have no birth certificates or passports does not, if we may use the word, un-Americanize them. Birth certificates and passports are mere evidences of citizenship. Such persois desiring passports should consult Malacafiang as to the best means of remedying the situation. The Governor-General’s office issues tempo rary passports, pending review by the State Department, if satisfied as to the question of citizenship. 2. Americans legally married to Filipino women on or prior to Sept. 22, 1922.—Americans who marry Filipino women, or women of any other nationality, do not lose their citizenship merely because of such marriage. But do their Filipino wives become American citizens by reason of tne marriage? Prior to September 22, 1922, an alien woman married to a citizen of the United States, “and who might herself be lawfully naturalized”, became a citizen of the United States, irrespective of the time or place of the mar riage or the residence of the parties. (Rev. St., sec. 1994; 14 Op. Atty.Gen., U. S., 402.) Did a Filipino woman who was married to an American prior to that date acquire his citizenship? The answer to the question depends on whether she “might herself be lawfully naturalized”. It has been held that this clause does not require that the woman shall have the qualifications of residence, good character, etc., as in the case of naturalization by judicial proceedings, but merely that she is of the class or race of persons who may be naturalized. (Kelly v. Owen, 7 Wall. 496, 498, 19 L. ed. 283.) So if Filipinos may be naturalized citizens of the United States, a Filipino woman marrying an American prior to September 22, 1922, became an American citizen. Previous to the decision of the United States Supreme Court in the case of Toyota r. United States (1925), 268 U. S. 402, 69 L. ed. 1016, the author ities had not been in harmony on the question of the eligibility of Fili pinos to American citizenship. Some courts held that they might be naturalized. (In re Bautista, 245 Fed. 765; In re Mallari, 239 Fed. 416; and see 27 Ops. Atty.-Gen. U. S. 12.) Other courts, however, denied to them the privilege of naturalization. (In re Alverto, 198 Fed. 688; In re Lampitoe, 232 Fed. 382; In re Rallos, 241 Fed. 686.) The Toyota case settled all doubt on this question. It is there held that Filipinos are not eligible to citizenship, with the exception of— "Any native-born Filipino of the age of twenty-one years and upward who has de clared his intention to become a citizen of the United States and who has enlisted or may hereafter enlist in the United States Navy or Marine corps or the Naval Auxiliary Service, and who, after service of not lees than three years, may be honorably discharged therefrom, or who inay receive an ordinary discharge with recommendation for re enlistment." This exception to the naturalization laws of the United States was intro duced by the Act of Congress of May 9, 1918, chap. 69. (40 Stat, at L. 542, 547, Fed. Stat. Anno. Supp. 1918, pp. 488, 495.) Said the Supreme Court in the Toyota case: "When the Act of 1918 was passed, it was doubtful whether sec. 30 of the Act of 1906 extended the privilege of naturalization to all citizens of the Philippine Islands. They were held eligible for naturalization in Re Bautista, 245 Fed. 765, and in Re Mallari, 239 Fed. 416. And see 27 Ops. Att. Gen. 12. They were held not eligible in Re Al verto. supra, in Re Lampitoe, 232 Fed. 382, and in Re Rallos, 241 Fed. 686. But we hold that until the passage of that act, Filipinos not being 'free white persons' or 'of African nativity' were not eligible, and that the effect of the Act of 1918 was to make eligible, and to authorise the naturalization of, native-born Filipinos of whatever color or race having the qualifications specified in the seventh subdivision of sec. 4. "Under the treaty of peace between the United States and Spain, December 10, 1898. 30 Stat, at L. 1754, Congress was authorized to determine the civil rights and political status of the native inhabitants of the Philippine Islands. And by the Act of July 1. 1902, sec. 4, chap. 1369, 32 Stat, at L. 691, 692, 7 Fed. Stat. Anno. 2nd ed., p. 1139, it was declared that all inhabitants continuing to reside therein who were Spanish sub jects on April 11, 1899, and then resided in the Islands, and their children born sub sequent thereto, ‘shall be deemed and held to be citizens of the Philippine Islands and as such entitled to the protection of the United States, except such as shall have elected to preserve their allegiance to the Crown of Spain', according to the treaty. The citizens of the Philippine Islands are not aliens. See Gonzales v. Williams, 192 U. S. 1, 13, 48 L. cd. 317, 321, 24 Sup. Ct. Rep. 177. They owe no allegiance to any foreign gov ernment. They were not eligible for naturalization under sec. 2169 because not aliens, and so not within its terms. By sec. 30 of the Act of 1906, it is provided: ‘That all the applicable provisions of the naturalization laws of the Unitea States shall apply to and be held to authorize the admission to citizenship of all persons not citizens who owe permanent allegiance to the United States, and who may become residents of any state or organized territory of the United States, with the following modifications: Ttie appli cant shall not be required to renounce allegiance to any foreign sovereignty; he shall make his declaration of intention to become a citizen of the United States at least two years prior to his admission: and residence within the jurisdiction of the United States, owing such permanent allegiance, shall be regarded as residence within the United States within the meaning of the five years’ residence clause of the existing law.' 34 Stat, nt L. 606, chap. 3592, Comp. Stat. sec. 4366, 6 Fed. Stat. Anno. 2d ed., p. 1001. "Section 26 of that act repeals certain sections of title xxx. of the Revised Statutes, but leaves sec. 2169 in force. It is to be applied as if it were included in the Act of 1906. Plainly, the element of alienage included in sec. 2169 did not apply to the class made eligible by sec. 30 of the Act of 1906. The element of color and race included in that section is not specifically dealt with by sec. 30, and. as it has long been the national policy to maintain the distinction of color and race, radical change is not lightly to be deemed to have been intended. ‘Persons not citizens who owe permanent allegiance to the United States, and who may become residents of any state’, may include Malays. Japanese, und Chinese, and others not eligible under the distinction as to color and race. As under sec. 30 all the applicable provisions of the naturalization laws apply, the limitations based on color and race remain: and the class made eligible by Bee. 30 must be limited to those of the color and race included by sec. 2169. As Filipinos are not aliens, and owe allegiance to the United States, there arc strong reasons for relaxing as to them the restrictions which do not exist in favor of aliens who are barred because of their color and race. And in view of the policy of Congress to limit the naturaliza tion of aliens to white persons and to those of African nativity or descent, the implied enlargement of sec. 2169 should be taken at the minimum. The legislative history of the act indicates that the intention of Congress was not to enlarge sec. 2169, except in respect of Filipinos qualified by the specified service. Senate Report No. 388, pp. 2, 3, 8. House Report No. 502, pp. 1, 4, Sixty-fifth Congress, Second Sessipn. Sec also Congressional Record, vol. 56, pt. 6, pp. 600-6003. And we hold that tne words 'any alien’ in the seventh subdivision are limited by sec. 2169 to aliens of the color and race there specified. We also hold that the phrase ‘any person of foreign birth' in the Act of 1919 is not more comprehensive than the words 'any alien’ in the Act of 1918. It follows that the questions certified must be answered in the negative.” May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 13 Inasmuch as a Filipino woman, married to an American citizen prior to September 22, 1922, “might not herself be lawfully naturalized”, it follows that she did not become a citizen of the United States by reason of such marriage. 3. Americans legally married to Filipino women after September 22, 1922.—A similar answer should be given with regard to Filipino women marrying American citizens after Sep tember 22, 1922; for the Act of Congress approved on that date provides that— “Any woman who marries a citizen of the United States after September 22. 1922, or any woman whose husband is naturalized after that date, shall not become a citizen of the United States by reason of such marriage or naturalization; but, if eligible to citizenship, she may be naturalized upon full and complete compliance with all requirements of the naturalization laws, with the following ezceptions: (a) No declaration of intention shall be required; (b) In lieu of the five-year period of residence within the United States and the one-ycar period of residence within the State or Territory where the naturalization court is.held, she shall have resided continuously in the United States. Hawaii, Alaska, or Porto Rico for at least one year immediately preceding the filing of the Petition." (U. S. C., title 8, sec. 368.) 4. Children of American father and Filipino mother.— Although, as we have seen, a Filipino woman, the wife of an American citizen, does not follow the citizenship of her husband, nor does she become eligible to naturalization by reason of such marriage, nevertheless the children born of such union are citizens of the United States, except those children “whose fathers never resided in the United States”. Section 6, title 8, of the United States Code provides as follows: “Sec. 6. CHILDREN OF CITIZENS BORN OUT SIDE THE UNITED STATES. All children born out of the limits and jurisdiction of the United States, whose fathers may be at the time of their birth citizens of the United States, are declared to be citizens of the United States; but the right of citizenship shall not descend to children whose fathers never resided in the United States. All such children who continue to reside outside the United States shall, in order to receive the protection of this Government, be required upon reaching the age of eighteen years to record at an American consulate their intention to become residents and remain citizens of the United States and shall be further required to take the oath of allegiance to the United States upon attaining their majority. Duplicates of any evidence, registra tion, or other acts required by this section shall be filed with the Department of- State for record. (R. S. see. 1993: Mar. 2, 1907, c. 2534, secs. 6. 7. 34 Stat. 1229)." It will be noted that the law used the word “fathers” and not “parents”. Section 7 provides, among other things, that— “the children of persons who now are, or have been, citi zens of the United States, shall, though born out of the limits and jurisdiction of the United States, be con sidered as citizens thereof." It has been held that in the application of this rule it is wholly immaterial whether the parents are citizens by birth or naturalized citizens. (11 C. J. 779-780.) A most pertinent inquiry in this connection is as to the meaning of the phrase “whose fathers never resided in the United States” found in that part of section 6, above quoted, which provides: "but the right of citizenship shall not descend to children whose fathers never resided in the United States." Does that phrase mean that the father’s residence in the United States at any time, whether before or after the birth of the child, constitutes a sufficient compliance with the statute? The question was answered in the affirmative by the lower Federal courts before it was passed upon by the United States Supreme Court. (Weedin v. Chin Bow (1925), 7 F. (2d) 369; Johnson v. Sullivan (1925), 8 F. 2d, 988; Ex Parte Wong Suey Sem (1927), 20 Fed. (2d) 148.) But the Supreme Court held in the Chin Bow case that the father’s residence in the United States must have occurred prior to the birth of the child in order that the latrer may have the status of an American citizen—that residence after the birth of the child does not satisfy the statute. The Court said: "Only two constructions seem to us possible and we must adopt one or the other. The one is that the descent of citizenship shall be regarded as taking place at the birth of the person to whom it is to be transmitted, and that the words 'have never been resident in the United States' refer in point of time to the birth of the person to whom the citizenship is to descend. This is the adop tion of the rule of jus sanguinis in respect to citizenship and that emphasizes the fact and time of birth as the basis of it. We think the words, 'the right of citizenship shall not descend to persons whose fathers have never been resident in the United States', are equivalent to saying that fathers may not have the power of trans mitting by descent the right of citizenship until they shall become residents in the United StateB. The other view is that the words, 'have never been resident in the United States', have reference to the whole life of the father until his death, and therefore that grandchildren of nativeborn citizens even after they, having been born abroad, have lived abroad to middle age and without residing nt all in the United States, will become citizens, if their fathers born abroad and living until old age abroad shall adopt a residence in the United States just before death. We are thus to have two generations of citizens who have been born abroad, lived abroad, the first coming to old age and the second io maturity and bringing up of a family without any relation to the United States at all until the father shall in bis last days adopt a new res idence. We do not think that such a construction accords with the probable attitude of Congress st the time of the adoption of this proviso into the statute. Its construc tion extends citizenship to a generation whose birth, minority and majority, whose education and whose family life have all been out of the United States and naturally within the civilization and environment of an alien country. The beneficiaries would have evaded the duties and responsibilities of American citizenship. They might be persons likely to become public charges or afflicted with disease, yet they would no entitled to enter as citizens of the United States. Van Dyne, Citi zenship of the United States, p. 34. “As between the two interpretations, we feel confident that the first one Was more in accord with the views of the First Congress. We think that the proviso has been so construed bv a subsequent Act of Congress of March 2, 1907, chap. 2534, sec. 6. 34 Stat, at L. 1229, U. S. C. title 8, sec. 6, which provides: " 'That all children born outside the limits of the United States who arc citizens thereof in accordance with the provisions of sec. 1993 of the Revised Statutes of the United States, and who continue to reside outside the United States shall, in order to receive the protec tion of this government, be required upon reaching the age of eighteen years to record at an American consulate their intention to become residents and remain citizens of the United States, and shall be further required to take the oath of allegiance to the United States upon attaining their majority.' “Now if this Congress had construed sec. 1993 to permit the residence prescribed to occur after the birth of such children, we think that it would have employed appropriate words to express such meaning; as, for example, ‘all children born who are or may become citi zens.’ The present tense is used, however, indicating that citizenship is determined at the time of birth. More over, such foreign-born citizens are required upon reaching the age of eighteen years to record their intention to become residents and remain citizens of the United States and take the oath of allegiance to the United States upon attaining their majority. If the residence pre scribed for the parent may occur after the birth of the children, the father may remain abroad and not reside in the United States until long after such children attain their majority. Thua, they could not register or take the oath of allegiance because the rights of citizenship could not descend to them until their fathers had resided in the United States. This class of foreign-born children of American citizens could not, then, possibly comply with the provisions of the Act of 1907. Nor could such children 'remain citizens' since they are expressly denied the rights of citizenship. We may treat the Act of 1907 as being in pari materia with the original act, and as a legislative declaration of what Congress in 1907 thought was its meaning in 1790. United States r. Freeman, 3 How. 556, 564, et seq., 11 L. ed. 724, 727; Cope r. Cope, 137 U. S. 682, 688, 34 L. ed. 832, 834, 11 Sup. Ct. Rep. 222. “The expression 'the rights of citizenship shall descend’ can not refer to the time of the death of the father, be cause that it hardly the time when they do descend. The phrase is borrowed from the law of property. The descent of property comes only after the death of the ancestor. The transmission of right of citizenship is not at the death of the ancestor but at the birth of the child, and it seems to us more natural to infer that the conditions of descent contained in the limiting proviso, so far as the father is concerned, must be perfected and have been performed at that time. “This leads to a reversal of the judgment of the Circuit Court of Appeals and a remanding of the respondent.’’ Weedin r. Chin Bow (1927), 274 U. 8. 657, 71 L. ed. 1284, 1288-1289, 1291.) Of course, if a child of an American father and a Filipino mother is born in the United States, the child is an American citizen, for, as we have seen, all persons born in the United States and not subject to any foreign power are citizens of the United States, irrespective of race or color. (Fourteenth Amendment to the Consti tution, sec. 1; U. S. C., tit. 8, sec. 1; U. S. v. Wong Kim Ark, 169 U. S. 649, 42 L. ed. 890.) An interesting question that arises in this con nection is with regard to illegitimate children, that is, children born out of wedlock of American fathers.and Filipino mothers. Are such children citizens of the United States? No authoritative pronouncement upon this question has as yet been given by the highest court of the land. It will be noted that the law does not qualify the word “children”; that is to say, it makes no distinction between legitimate and illegitimate children. Nevertheless, in a very old case (1864), the Maryland Supreme Court, construing the provision that— “the children of persons who are or have been citizens of the United States shall, though born out of the limits and jurisdiction of the United States, be considered as citizens of the United States”, held that a child of an American father, bom out of lawful wedlock in a foreign country, did not come under said provision, for the reason that under the law of that State, such a child was nullius ftlii. (Guyer v. Smith, 22 Md. 239, 85 Am. Dec. 650, 653.) The doctrine of this case was follow ed in Mason ex. rel. Chin Suey v. Tillinghast (1928), 26 Fed. (2d) 588, wherein the Circuit Court of Appeals of Massachusetts said: "Revised Statutes, sec. 1993, Comp. St. 1916, sec. 3947, reads as follows: “ 'All children heretofore born or hereafter born out of the limits and jurisdiction of the United States, whose fathers were or may be at the time of their birth citizens thereof, arc declared to be citizens of the United States; but the rights of citizenship shall not descend to children whose fathers never resided in the United States.’ 8 U. S. C. A. sec. 6. “The statute applies to legitimate children only, and no provision is made in it in regard to the citizenship of illegiti mate children who may be thereafter legitimated by marriage. It determines the status of the child as of the time of his birth, and declares him to be a citizen of the United States, provided his father is a citizen thereof and shall have resided therein. See Guyer c. Smith, 22 Md. 239, 85 Am. Dec. 650. "The Circuit Court of Appeals in the Ninth Circuit reached the same conclusion in Ng Suey Hi «. Weedin, 21 F. (2d) 801, although it went further and decided that, if it were conceded that illegitimate.children would become citizens by subsequent legitimation by their parents, there was no evidence of such legitimation in that case.” And so in Louie Wah You v. Nagle (1928), 27 F. (2d) 573, in which the Circuit Court of Appeals of California said: "This is an appeal from an order quashing a writ of habeas corpus and remanding the appellant to the custody of the immigration authorities. The appellant made application for admission to the United States, claiming citizenship through his father, under section 1993 of the Revised Statutes (8 U. S. C. A. sec. 6). At birth, the appellant was the illegitimate offspring of a citizen of the United States of the Chinese race, who was born in Cali fornia and maintained his domicile in that state. Counsel concedes that, unless the status of the appellant has been changed since birth, he is not a citizen, and is not en titled to admission. Ng Suey Hi r. Weedin (C. C. A.) 21 F. (2d) 801. But he earnestly insists that the appel lant has been legitimated under the laws of California and is therefore a citizen. “The circumstances attending the birth of appellant arc as follows: His father married a woman of the Chinese race in San Francisco in 1903, and lived with her as hie wife for about two months. In the following year the father visited China, returning to the United States in 1905. During this visit be married a second woman of the Chinese race, whom he has since recognized and maintained as his wife in China. At the time of the second marriage his former wife was still living and un divorced. The father made a second visit to China in 1913, returning in 1914, and a third visit in 1924, return ing in 1926. As a result of each of these visits a child was born to the second wife in C_>ina; the appellant being the second son, born in 1915. "Section 230 of the Civil Code of California provides: ‘The father of an illegitimate child, by publicly acknowl edging it as his own, receiving it as such, with the consent of his wife, if he is married, into bis family, and other wise treating it as if it were a legitimate child, thereby adopts it as such; and such child is thereupon deemed for all purposes legitimate from the time of its birth.' The construction of this statute is for the California courts, and the construction there adopted is controlling on this court. The rule established by the later decisions of the Supreme Court of that state, while apparently out of harmony with some earlier decisions, is that: “ 'The court below seems to have acted upon the theory that where the father of an illegitimate child has no family the provision of the code in question in that respect may be dispensed with. This cannot be done. The Legislature adopting sect ion 230 evidently went as far as public policy would justify in this respect, and the language is too plain to be misunderstood. The father of an illegitimate child in order to adopt him as legitimate must not only publicly acknowledge him as his own, but must receive him into his family, and if he have a with her consent. It docs not say that he must receive him into his family if he has a family, and if not, in that case can receive him or send him elsewhere; but having a family, or at least a home, in which he can receive him is one of the cardinal conditions pre scribed for such adoption.' Estate of De Lavcaga, 142 Cal. 158, 169, 75 I’. 790, 794. “In Estate of Gird, 157 Cal. 534, 545, 108 P. 499, 504 (137 Am. St. Rep. 131) the court again said: " 'In Estnte of De Lavcagu. 142 Cal. 169, (75 P. 790). this court was careful to limit its language as to the neces sity of the existence of a family into which the cnild can be received as one of the cardinal conditions prescribed for an adoption under section 230 of the Civil Code, by saying “having a family, OR AT LEAST A HOME IN WHICH HE CAN RECEIVE HIM” is such a condition. The words of section 230, ‘‘receiving it * * * into his family”, imply a receiving into a place of which he is the head, of which he has control. As used in this section, the word "family", in our opinion, means no more at moBt than that the father must Eavca "home", a settled place *ifc. 14 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 Philippine Economic Conditions—March, 1934 Trade ^th the principal countries was: !££&*?::•........ ::::::::: ::::::: "I%gl s- •”May. 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 15 16 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 Murphy’s Financial Administration of the Philippines Savings effected by practiced and con sistent economy from towns to metro polis, porkbarrel funds held in treasury Governor General Frank Murphy has been accused of a penchant for putting government accounts in the red, when he was mayor of Detroit, and has countered that Detroit’s nearbankruptcy antedated his administration. Certainly, from the day he began governing the Philippines there has been no action on his part belieing his character as a saver of public funds rather than a waster of them. If anything, he leans to economy to a fault. The box on this page is the financial report of the government during 4 years, and during the year 1933 Murphy was in charge throughout the latter half of the year. The data tell their own story. Consolidated deficits in insular funds summed more than 1*20,000,000 when Murphy as sumed office here, an accumulated debt from the 3 years preceding 1933. It was more than 1/3 of the average insular budget. Of this depressing situation, accen tuated by the business outlook, Murphy put his financial adviser, the late Joseph E. Mills, in charge; and cooperation of the cabinet and the legislature was obtained as well as that of all bureaus and offices of the central government. Farmers were of course hard up. Murphy was asked to remit land taxes. He refused all such re quests, stimulated the collection of both current and back taxes, and in many instances.the tax officers collected taxes in products; at least one town treasurer sent his agents to the fields and took rough rice for taxes as it came from the threshing machines. Insular 1933 total collections exceeded the es timate by 6%; a remarkable show ing, which anyone will grant who knows the prevailing conditions throughout the country. The people not only paid their taxes, but learned the necessity of paying them. Murphy dealt fairly with the taxpayers by effecting budgetary economies and forced savings in the government. The legislature itself passed no porkbarrel bill for 1934, and 1933’s porkbarrel funds were withheld from expenditure. Thus there was over-collection and under-spending, and the budget was balanced without imposition of new taxes. (Reserve and gold stabilization funds of the Philippine government, held in the United States, had mounted far above actual requirements but had not been held in gold; they had been placed in banks, as money, to draw interest, in which state they were when the dollar was devalued. Murphy’s assiduous intervention got a valuation of these funds on the new basis of gold, wait ing to be confirmed by congressional legislation; and instead of suffering loss for their acquisitive indiscretion, the Philippines make a liberal gain; present currency reserves are above 100% of circulation, and addition of profit from revaluation would swell this sum enough to liquidate, prac tically, the national debt and leave more than statutory minimum against circulation). All the government corporations ended 1933 with credit balances; if generally small, still balances instead of deficits. Tabi.b 1.—Insular Auditor's Report: Consolidated Statement of operation of the General, Special and Bond Funds of the Central Gocernment, 1930 to 1933. Year Income Expenditures Difference 1930 ........... P97.869.947.92 P104,037,078.88 - P6,167,130.96 1931 ............ 82,159,869.77 91,018,511.81 - 8,858,642.04 1932 ............ 74,710,772.26 . 79,696.887.23 - 4,980,114.97 1933 ............ 70,025,933.81 69,535,029.86 + 490,903.95 Table 2.—Insular Auditor’s Report: Resutls of operation of the General Fund only of the Central Gocernment, 1930 to 1933. Year Income Expenditures Difference 1930 ........ P84.494,630.24 P95.828,238.78 - Pl 1,333,608.54 1931 ............ 69,425,591.75 76,641,465.73 - 7,215,873.98 1932 ............ 61,441,172.50 65.936,588.72 - 4,495,416.22 1933 ............ 58,017,374.35 56,631,361.51 + 1,416,012.84 Until the commonwealth is established under the TydingsMcDuffie act, the Philippines will have an American governor general. After that, during the commonwealth, they will have an American high commissioner, provided for in the act, until the commonwealth expires and is succeeded by inde pendence. Memory may not always disclose to the reader why it is that the United States is so preoccupied over Philip pine finances, with which the high commissioner, as the gov ernor general now. will have to do. The misgivings go back not only through the history of Latin states, but of the Amer ican states themselves. It isn’t true that new generations don’t learn from the past. They do; and every somber pre cedent in the economic history of the 13 original American states, before they were forced by sheer necessity into more perfect union under the constitution, in making and undergoing adoption from 1787 to 1789, warns the United States to take every pre caution respecting finances in es tablishing a new Philippine govern ment. In contrast to the Philippines, the 13 colonies were swamped in debt when they had won inde pendence from England. Their trade was entirely gone. Their currencies were debased and all but worthless. Many of them made paper money, without specie backing, legal tender for debts. The Federal government itself is sued such money, by simple fiat tried to make it valuable and ac ceptable. “The nonpayment of public debts,” says David Ramsay, History of the United States, “some times inferred a necessity, and al ways furnished an apology, for not discharging private contracts. Confidence between man and man received a deadly wound. Public faith being first violated, private engagements lost much of their obligatory force. From the com bined operation of these causes trade languished; credit expired; gold and silver vanished; and real property was depreciated to an ex tent equal to that of the depreciation of continental money.” With Ramsay concur all other authorities, all contemporary and later writers. So that in the constitution, money was made a Federal business; the obligations of the states and the Federal government were assumed, and it was prohibited to make anything but gold and silver legal tender. The long anarchy was corrected by Alexander Hamilton’s ingenuous management of the treasury under his tariff policy that, as Webster put it, “struck the dead rock of public credit” to such purpose that “abundant streams of revenue burst forth” and soon obliterated the public debt. This was because financial integrity had been written into the constitution, where the courts could at all times defend it. The remark able thing is, it was done at a time when public authority had all but been destroyed; when judges were mobbed, when the doors of courthouses, in some cases, were nailed (Please turn to page 21) reversions Department of Government15 priations, Forced sav ings based priations, Total sav ings based priations, Senate................................................. House of Representatives.... 5 National Library..................... Supreme Court......................... 1 Bureaus andOffices under the Governor-General including the Belo Fund .................. 11 Department of Finance.........21 Department of Public In struction ........ ,................... 1 Department of Justice.......... 2 Department of Agriculture and Commerce.............................. 1 Department of Public Works and Communications.......... Department of the Interior and Labor.............................. University of the Philippines May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 17 Philippine Economic Conditions GOLD MINES Can save money. . . . time... . and trouble by making, Marsman & Co., Inc. their purchasing agents for supplies, machinery and equipment required in mines, mills, power plants and in mine stores. . . . and mine messes. By long experience the officials of our Mine and Mill Supply Department have learned what to buy, where to buy, and most important. . . what to pay. This knowledge was gained during the bitter years when Itogon, short on both capital and credit, was forced to make a peso buy a dollar’s worth of dependable economical products suitable to local conditions. As the result of intimate contact with the daily facts in mine administration, we have established sales relations with selected manufacturers and distributors of standard mine and mill supplies and equipment, many of whom we represent exclusively in the Philippine Islands. It is axiomatic that prices of all commodities are reduced as buying power increases. Through the volume of our purchases we get extra discounts. .-. and our clients get the benefit of prices they could not obtain by direct purchases. To get these favorable prices it is not necessary for mines to buy from us in large quantities. Our bodegas are their bodegas, from which they can draw supplies as they are required. . . and pay for them on our usual terms. In the early days of mining, and those days were not so very long ago, there were no mine supply houses in Baguio; Manila dealers then took little interest in mine supplies and equipment for the volume was not important; roads to the mines were in poor condition... impassable during the rainy season. . . and transportation to the mines was casual, irregular and undependable. Consequently to insure continuity of operation, mines had to buy, usually in the United States, in large quantities, long in advance of actual needs. As a result of this enforced policy, bodega inventories ran into large figures. For in addition a staple supplies like cyanide and dynamite, it was necessary to carry a full line of spare parts. . . to make all types of replacement from their own bodegas. . . or else close down. That situation was changed by the establishment of our Mine and Mill Supply De partment, by better roads to the mines, and by the dependable transportation from rail road terminal to the mines inaugurated by M. P. Tranco, Inc. which is affiliated in owner ship and management with Marsman and Co., Inc. Our bodega service is an important contribution to the new companies in the district, as it frees their capital from excessive inventories for use in the development of their mines. That is an economy that will appeal to careful mine administrators. To take advantage of this direct saving all that mining companies have to do is to advise our department of their requirements. . . then when they want to use these products they will be in our bodegas ready for immediate delivery. Marsman and Co., Inc. Mine and Mill Supply Pepartment Stewart Building Telephone 287 Burnham Park Boulevard, Baguio P. O. Box 18 —Cut and comment from Judge. He.—If France misses two more payments America will own the war outright. GORDON DRY hear‘ r- T XT °f a Z°od QjllN cocktail BUGHANAN’S OLD LIQUEUR Scotch Whisky for Good Highballs Kuenzle & Streiff SOLE AGENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 18 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 Philippine Economic Conditions T< H U il UROMIL Powerful Urenic Dissolvent Astonishing cures of the most rebellious ca ses of Gout Rheumatism Arthritis A'jrnts for the Ph.iUppine3 BOTICA BOIE nlcas 0 046; 1 gr n. If you want a truly delightful cigar try the CORONA REAL or the LONG LIFE Both made by LA YEEANA IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 January: United States, February: United States............................................ countries.......................................... 1934 52 1933 73 up, prospects fair. Light chambrays. — Orders nil, entirely Japanese. arrivals nil, offtake very slow, stocks fair, business 67 29 4 Grey sheetings.—Orders very small, arrivals heavy, offtake slow, stocks heavy, prices lower due to overstocks, prospects at present prices difficult; Japanese arrivals small, Chinese merchants fearing decline U. S. prices. Bleached sheetings.—Orders nil, arrivals very smnll, offtnke slow, stocks low, prices unchanged, prospects nil; Japanese goods regular with offtake improving. Grey drills.—Orders very small, arrivals small, offtake slow, stocks heavy, prices slightly lower, prospects doubtful; prospects Japanese goods stronger. Colored yarn drills.—Orders good, arrivals small, offtake good, stocks low, prices up slightly, prospects good for better grades; Japanese competition stronger especially on cheaper cloths. Heavy chambrays.—Orders fair, arrivals fair, offtake good, stocks low, prices slightly Denims.—Orders nil, arrivals heavy, offtake slow, stocks plentiful, prices five percent down due locnl competition and heavy Japanese arrivals, prospects nil at present prices; Japanese arrivals and movement good, Japanese used exclusively in ready-made trouPercales.—Orders foir, arrivals good, offtake good, stoc prospects fair; Japanese somewhat losing in competition ks fair, prices unchanged, ith U. S. seconds. Khakis. prospects .—Orders very small, arrivals small, offtake good, stocks low, prices good, fair; British unchanged; Japnnese improved but not yet generally accepted. Blain toiles.—Orders nil, arrivals heavy, offtake good, stocks fair, prices considerably lower, prospects nil at present prices with great fear of Japanese competition. Printed eoiles.—Orders small and for stock lots only, arrivals fair, offtake good, stocks sufficient, prices lower, prospects fair; British selling at 12 percent under U. S. Rayon an<l sill:.—Unchanged except for few orders of U. S. better grades. Broadcloth.—Orders small nnd principally for better grades, arrivals fair, offtake fair, stocks fair, prices lower, prospects on low grades nil due Japanese competition, good U. S. qualities still predominant. Addendum on Insurance Dear Mr. Robb: I have read with a considerable degree of satisfaction your article on fire insurance as it affects the insuring public. However, I might perhaps be permitted to point out one error in your article. It is not a fact that if one com pany has put up the required deposit the other companies represented by the same agent are exempt. The true position is: a. Local companies (i.e., companies incor porated in the Philippines) are all required to have paid-up capital of 1*250,000 within a sti pulated period. b. Foreign companies (i.e., American) are exempt from the deposit requirement. c. Alien companies (all others than the above) must deposit 1’100,000 each, 50% of which may be approved securities, the certificate of which is held in the United States by the chief of the bureau of insular affairs at Washington. Attempts have been made from time to time to make it obligatory on the foreign and/or alien companies to increase the fixed deposit to 1*250,000, equal to the minimum capital required of local companies. One such bill has been vetoed and strenuous opposition made to any suggestion to increase the deposits required of companies engaged in the insurance business locally. The objections to increasing the local deposits are numerous, chief among them being that it is necessary for the benefit of the insuring public throughout the world that the companies’ available funds shall be in such form that, any large sum may be quickly and easily available for payment of losses of unusual magnitude. An example is the San Francisco conflagration. Further, 1’100,000 is more than sufficient guar anty for the amount of local business written, and precludes any company from willfully refraining from payment of just losses. If the insurance commissio'ner is not satisfied about the stability of a company, he has the right to stop the company from operating here. If, as has been argued, the desired increase of the deposit is to protect the local insurer, we feel that the better weapon is in the hand of the insurance commissioner—in the power just stated. Incidentally, if each and every foreign and alien company w.cre to comply with the require ment it would mean an increase of an estimated sum of P5,000,000 for investment; an amount which, together with present deposits, would exceed the premium income presently deriving from the country. Furthermore, the country is not advanced enough to attract any such sum as 1’5,000,000 Nor would it be possible to find local bonds and stocks in such an amount, which could be easily and readily liquidated in case of need. Fluidity of funds is the premier require ment of any insurance company, as is also the case in connection with banking. This has been {Please turn to next page) Philippine National Bank This bank has “acquired properties’’ for sale in the following provinces: ALBAY DAVAO MINDORO ANTIQUE ILOCOS NORTE NUEVA ECIJA CAMARINES SUR ISABELA NEGROS OCC. CAGAYAN LAGUNA LA UNION NEGROS OR. CAPIZ LEYTE PANGASINAN CAVITE MANILA RIZAL CEBU TARLAC SORSOGON SULU ZAMBOANGA TAYABAS These properties are mostly agricultural lands, and the Bank is willing to sell them on installments covering periods up to ten years. Interested Parties May Apply To— the branches of this Bank at: BACOLOD, OCC. NEGROS, CABANATUAN, NUEVA ECIJA, i 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 RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 20 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 amply proved by experience in the past and during the depression. Touching the question of placing insurance abroad, while I consider the security of Lloyds sound, I have always felt that as we are called upon to pay more for our requirements in this country by the very people who place their insurance abroad, that they in turn should realize that it costs money to transact insurance in these islands; and if they are not content to place their business locally then they should look to foreign countries to purchase whatever com modity or commodities they may deal in them selves. It is not realized by the insuring public that the following is the present scale of taxa tion, which I think will be conceded is a trifle more than is warranted by the business available. Companies— 1% of all premiums received 3% of profits (if any) P100 for certificate granted by the insurance ommissioner to transact insurance busi ness, and 1*50 for renewal. 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 WORLD’S GREATEST TRAVEL SYSTEM General Agents— 1*50 for certificate granted by the insurance commissioner and 1*25 for renewal. Income tax on profits derived from com missions. Agents— 1*15 for certificate granted by the insurance commissioner and 1*7.50 for renewal. Privilege tax 1*40 per annum. Income tax on profits derived from com missions. Agents’ Representatives— Same charges as apply to agents. Apart from the boon insurance has proved to be to the people of the Philippines, the govern ment has annually collected large sums by way of direct and indirect taxation. Figures might be quoted showing the losses of recent years, but ns this communication is not intended to provoke discussion, it is perhaps as well to let the data already used speak for themselves— 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! Fortnight ly 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 and to refer anyone who may be interested to the insurance commissioner's report to the secretary of finance in which all pertinent facts relative to insurance companies, business transacted, and even the actual securities deposited for protec tion of the insuring public, may be found. Very truly yours, D. O'Sullivan. Cheaper Radiogram Service The Robert Dollar Company announces radio gram service between ships at sea in Philippine waters and throughout the world, also radiomail service from the Philippines to all points in North Amerioa, Hawaii and Guam, both services supplemented by messenger service in Manila, messengers calling for and delivering messages within the city’s limits. Rates to New York, San Francisco, Honolulu and other cities for radiomail communications are distinctly lower than prevailing telegraph rates; and while the radiomail service does not fully duplicate the existing telegraph services, it is a rapid service with distinct advEtntages, as to time, over the steamship mails. Example, 10 words from Manila to Denver, 1*3.02: Dollar radio from Manila to San Francisco, airmail from San Fran cisco to Denver. Plain language messages from Manila to ships of Philippine registry in Philippine waters carry at P0.24 a word, code messages at 1*0.15; and messages in plain language from Manila to all other vessels carrv at 1*0.36 a word, code mes sages at 1*0.22. This is the radiomarine service. It is coextensive with the seven seas and there fore introduces many advantages of social and business communication from the Philippines with ships on voyage throughout the world. “Yes; we’re cutting our expenses to the bone but we’re not thinking of reducing our service by TELEPHONE “It brings too much busi ness that we might lose." The wise business execu tive knows the value of the telephone in times like these. Philippine Long Distance Telephone Company IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 21 Anzacs Beat Depression All ships from Australia recently visiting Manila have been well patronized by Australians making the round trip to China and Japan. These passengers confirm the reports that prosperity has returned to Australia; there is a curiosity among them to see the country, Japan, that boosted the price of their wool clip. The clip had been bringing some £20,000,000 a year; more active demand last season, particularly from Japan, raised this figure to £50,000,000 and made Australians happy. It takes £36,000,000 a year to service the Austra lian public debt; last year the country was able to send this sum to London and retain a nice budget balance. Unemployment there is, but it is waning. Fears that the Australian market would be flooded with Japanese manufactures have not materialized; the Australian favorable trade balance with Japan about equals the Philippines’ unfavorable balance with that country, pro portionately: it is 5 to 1 in Australia’s favor. The goodwill mission from Australia, headed by Attorney-General Latham, that visited Manila briefly en route to Japan, seeks continuation of Australia’s growing commerce in the Pacific basin. New Zealand, country normally enjoying the highest per capita wealth average in the world, reflects her prosperity in automobile and truck imports. Iler great exports giving her a con stantly favorable trade balance are wool and dairy products, also meats, especially lamb and mutton. Last year her favorable balance was £19,850,569: exports £41,301,951, imports £21.451,382. Steps in both Australia’s and New Zealand’s recovery were depreciation of their currencies, which New Zealand did by raising the price of exchange. There is hardly enough communi cation between the Philippines and these southern neighbors of theirs. Not enough fans resort to the shortwave radio, through which they might cultivate friendships or at least enjoy a wider range of radio entertainment. THE GOVERNMENT OF THE PHILIPPINE ISLANDS BUREAU OF POSTS TRADEMARKS REGISTERED During the month of October, 1933 Reg. No. 11507. Trademark consisting of the word “MYCOZOL” with a design, for ointment known as Mycozol used for the treat ment of fungus infections of the skin, registered on October 24, 1933, by Parke, Davis & Co., of Detroit, Michigan, U. S. A. Reg. No. 11508. Trademark consisting of the word “GALOEHAN” with a design, for starch, registered on October 24, 1933, by Wise & Co., Inc., of Manila, I’. I. Reg. No. 11509. Trademark consisting of the word “BENDOREDJO” with a design, for starch, registered on October 24, 1933, by Wise & Co., Inc., of Manila, P. I. (To be continued) Time To Plan For Your Vacation For HEALTH For PLEASURE For RELAXATION BAGUIO is the ideal place When going to BAGUIO, make it a point to travel by the MANILA RAILROAD. It will pay you to investigate what the Company has to offer in the way of comfort, safety and service. Always buy a round trip ticket. It saves you trouble and money. FIRST CLASS FARE now reduced During your stay in Baguio, remember our TAXI SERVICE For trips in the City and to the Mines Our fleet of BANTAM TAXICABS offers the most econ omical and convenient means of transportation within the City and to the Mining districts. Look for SMALL TAXICABS when in need of motor trans portation to the Mines or for City travels. These SMALL TAXICABS have been tested and proven to make the heaviest grades on roads to Mines with the efficiency of big cars. Murphy’s Financial ... {Continued from page 16) shut—when indeed, the United States were going through an experience they would now save the Philippines from by prudent attention to finances such as Governor General Murphy gives them, such as any competent high com missioner must give them, come what may. during the life of the commonwealth. The situation once more invites attention to the expert service the existing Philippine govern ment nas, and has always had, from the United States. Devising its currency, it had such service. Floating its credit, it had such service. All along it has been consistently better advised, at little cost, often at no cost, than most of the States of the Union itself; and in Murphy’s administration this basic service, on a high plane, carries right on. Reliance of the Philip pines on it evidences sound judgment. SWORN STATEMENT (Required by Act 2580) The undersigned The American Chamber of Commerce of the Philippines, owner or pub lisher of The American Chamber of Commerce Journal, published monthly in Manila, P. I., after having been duly sworn in accordance with law hereby submits the following statement of quired by Act 2580 of the Philippine Legislature: Editor, Walter J. Robb, P. O. Box 1638, Manila. Publisher: The American Chamber of Com merce of the Philippine Islands. Business Manager. Walter J. Robb, P. O. Box 1638. Manila. Owners or stockholders hold ing one per cent or more of interest, stock, bond, Bondholders, mortgages, or other security hold ers of one per cent or more of total value: None. Manila, P. I., May 3, 1931. Walter J. Robb. Subscribed and sworn to before me this 3rd of May. 1934. the declarunt having exhibited his cedula F-15364 issued at Manila, P. I., on January 20, 1934. SIGHTSEEING AND EXCURSIONS Enjoy to the full your vacation by making a trip to Bontoc and from there to Banaue and Kiangan through the Ifugao country of striking contrasts. Don’t fail to see the famous rice terraces which are classed among the wonders of the world. Besides there are lots of wonderful things to see on the way. Don’t hurry, if time is not an essential element in your trip. Stop at beautiful Mt. Data Lodge, Km. 105, for a good rest and excellent meals. New, safe and comfortable cars with experienced drivers for moun tain tours are always available at reasonable rates. For information concerning travel and service, please apply to BENGUET AUTO LINE, either at Central Office near Government Center, or at Baguio Station across the street from PINES HOTEL, Telephones Nos. 250 and 901. Manila Railroad Company 943 Azcarraga, Manila Telephone 4-98-61 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 22 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 IMPORTERS & EXPORTERS INSURANCE & STEAMSHIP AGENTS MITSUI BUSSAN KAISHA, LTD. National City Bank Bldg., Manila ■ BRANCHES | CEBU ♦ ILOILO ♦ DAVAO i Established 1876 j Capital Paid Up.............¥100,000,000.00 ' Head Office in Tokfo REAL ESTATE By P. D. Carman Addition Hills April shows an increase of P290.179 over March business and is larger than the April totals in 1931 and 1932 alt ho a little below the April transactions of last year. Sales City of Manila March April 1934 1934 cut Hour Cost TK AVE L LUXUKY IN addition to coaches, standard Pullman sleeping cars, and ob servation-club car the NORTHERN PACIFIC RAILWAY now operates new-type, modern Tourist sleep ing cars between the Pacific Coci6t and Chicago. Electric lighted upper and lower berths, velour-upholstered seats, large men's and women's dress ing rooms...in fact they are luxurious, yet rates are exceedingly low. ROUTE OF THE FAMOUS CN.ort!z Coast limited One of America's finest trains, with every modern refinement and comfort in travel equipment. When you plan to travel in the United Statea always be 8UX* a delightful journey by making reseivations on the fijQffl NORTHERN PACIFIC RAILWAY L / C. L. TOWNSEND, General Passenger Agent \3C|fV£ Smith Tower Seattle. Washmgton Sta. Cruz......................... P194.996 P181.171 Sampaloc......................... 57,389 115,574 Tondo............................... 83,418 54,982 Binondo........................... 39,060 15,900 San Nicolas..................... 24,700 39,224 Ermita............................. 21,000 6,500 Malate ........................... 67,656 488,562 Paco................................. 19,684 12,214 Intramuios... . 15,500 San Miguel..................... 57,958 42,500 Sta. Mesa......................... 3,000 1,700 Quiapo............................. 23,869 11,676 Sta. Ana........................... 83,070 12,073 Pandacan......................... 597 1*691,897 1*982,076 TOBACCO REVIEW By P. A. Meyer Alhambra Cigar and Cigarette Mfg. Co. Raw Leaf: Gath ering of the 1934 crop in Cagayan and Isabela has practic ally terminated. A considerably larger quantity than the previous year is ex pected. The local market in domestic and export grades was rat her quiet dur ing April. Export during the month was as follows: ^Australia.............................................. 1,608 K China.................................................. 27,252 ['Gibraltar.............................................. 21,735 f Hongkong............................................ 24,212 f Japan.................................................. 187,449 I Java..................................................... 470 ! Malay Peninsula............................... 236 North Africa...................................... 21,118 North Atlantic (Europe). . . 203,21S Spain.................................................. 480,240 Straits Settlements........................... 1,883 United States..................................... 113,581 1,083,002 March.................................................. 177,621 February............................................. 3,037,323 Cigahs: Comparative figures for shipments to the United States are: April, 1934................... 19,668,451 March, 1934................ 17,549,132 February, 1934............ 20,116,112 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 23 SHIPPING REVIEW By H. M. Cavender General Agent, The Robert Dollar Co. Total shipments from the Philippines for the month of March, while off somewhat from the previous record month, were again very heavy, amounting to 295,091 tons. This was mainly due to the continued heavy movement of sugar to the Atlantic Coast which accounted for 190,787 tons. To China and Japan, hemp shipments were good, showing an increase over February. Lumber and log shipments were particularly heavy, amounting to over five and one half million feet. There is a continued gradual increase in the copra movement. Rope also show ed an increase, but tobacco movement was slow. To the Pacific (.’oast, cigar shipments held up well. Coconut oil was slow, and copra movement was the lowest for a year or more, 'l'his, of course, was to be expected. Copra meal and hemp were good, and lumber fair. Sugar shipments, both centrifugal and refined, while off somewhat from the previous month, were still good. China and Japan................................... 23.173 with Pacific Coast Local Delivery.............. 31,188 with Pacific Coast Overland Delivery . . .. 1.112 with Pacific Coast InterCoastalSteamcrs.. 2.673 with Atlantic Coast.......................................214,315 with Australian Porta................................... 232 with 53 of which 18 of which 11) of which 39 of which 18 of which 4 of which A Chand Total. ..........295,091 with 104 of which 47,418 were carried in Amcricnn Bottoms with 14 To the Atlantic Coast, cigar shipments were off. Coconut Oil dropped very considerably, while copra showed a good increase. Hemp was off from the previous heavy month but still moved in good volume. Desiccated coconut was quite good. Rope was slow. I’o European Ports, hemp showed a nice in crease to tne best monthly total for the year. Copra was also good, and copra cake fair. To bacco wos also fair. From statistics compiled by the Associated Steamship Lines, during the month of March 1934 there were exported from the Philippine Islands the following: Tons Sailings 18,428 were carried in American Bottoms with 9 927 were carried in American Bottoms with 7 2,033 were carried in American Bottoms with 7 24,56(1 were carried in American Bottoms with 7 53 were carried in American Bottoms with 2 ------- were carried in American Bottoms with THE PRESIDENT LINER FLEET WORLD-WIDE SERVICE AMERICAN MAIL LINE “The Short Route to America” To SEATTLE via CHINA, JAPAN and VICTORIA Pres. Jackson - May 23 Pres. Jefferson - June 6 Pres. Grant - - June 20 Pres. McKinley - July 4 Pres. Jackson - - July 18 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 WE_ST_ TO NEJV YORK Via China-Japan, Honolulu San Francisco Panama Canal Pres. Wilson - - June 2 Pres. Hoover - - June 13 Pres. Lincoln - June 30 Pies. Coolidge - - July 11 Pres. Cleveland - July 28 Via Suez Canal and Europe Pres. Harrison - May 28 Pres. Hayes----- June 11 Pres. Johnson - June 25 Pres. Monroe-----July 9 Pres. Van Buren - July 23 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 May 22 ,, 29 June 5 „ 12 „ 19 FOR BOOKINGS AND INFORMATION APPLY TO: THE ROBERT DOLLAR CO. General Agents Robert Dollar Bldg., Port Area — MANILA — 87 Escolta Telephone 2-24-41 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 24 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 Passenger traffic during the month of March continued to increase, nil Liners going out booked to capacity. A very noticeable improvement is evident over passenger traffic for the same month a year ago. The following figures show the number of passengers departing from the Philippine Is lands during March 1934: China and Japan..................... Honolulu.................................... Pacific Coast............................. Europe via America............... Straits Settlements and Dutch East Indies........................... Europe and Mediterranean Ports beyond Colombo....... America via Suez..................... Australia.................................... Round-t he-World..................... 33 13 12 3 0 Total for March.............. 294 Total for February......... 317 6 9 90 8 2 0 7 0 0 0 518 233 333 347 COPRA AND ITS PRODUCTS By Kenneth B. Day and Leo Schnurmacher stagnation communicated itself to foreign mar kets which were dull but fluctuating. Copra: Arrivals for the month were just about equal to those for the corresponding month in 1933 and were sufficient to produce a fair selling interest, although not enough to force prices radically down. Pacific Coast buyers averaged about 1.22-1/2 cents although some little business was done as high as 1.25 cents and some as low as 1.17-1/2 cents, the latter at the end of the month. Combined with this there was an opportunity to sell a fair parcel of copra to Mexico at a price reported above 1.30 cents and, of course, this copra was willingly sold. London prices ranged from £7/2/6 down as low as £6. 17/6 which figures are perhaps mis leading because exchange fluctuated from day to day. Dealers really anxious to sell were able to dispose of their products in one market or another at all times and a steady, though unenthusiastic, business was conducted throughout the month. The following statistics apply: Arrivals—Manila, 207,140 bags and 233,665 bags. Shipments— Pacific Coast....................................... Atlantic Coast.................................... Europe................................................. China and Japan............................... buyers holding back. Coast quotation was 2-1/4 cents f.o.b. with scattering sales of small lots at this figure. Toward the end of the month there was a bit more interest on the part of buyers on the East Coast, but this interest evaporated almost immediately and without substantial business being done. Local mills were buying largely to protect their copra cus tomers. The local price of coconut oil dropped again and small lots were sold as low as 8-1/2 cents ex factory. Statistics for the follow: Shipments— Pacific Coast...................................... Atlantic Coast.................................... Gulf Ports.......................................... Europe................................................ China and Japan............................... month Tons 1,729 11,313 4,209 291 102 Cebu, The month of April was a most unprofitable one from the standpoint of copra, coconut oil and copra cake markets. Buyers of coconut oil in the United States suspended all except the most necessary purchases waiting for the final decision in the excise tax question. This, of course, reflected itself to copra purchases which were restrictive and at low prices. In turn this Total................................................ 24,867 Please note tluit European shipments were heavy in fulfillment of March contracts and that no conra was shipped to the Gulf in April. Stocks on Hand— Tons Beginning of Month......................... 62,485 End of Month..... ....................... 52,028 Coconut O'l: The coconut oil market was purely nominal with sellers offering freely at 2-1 / 2 cents per pound e.i.f. New York and Total................................................ 17,6-14 It will be noted that March shipments of oil were unusually heavy but were almost without ex ception in fulfillment of contracts made last year. Stocks on Hand— Tons Beginning of Month......................... 20,090 End of Month................................... 16,448 Copra Cake: European buyers of copra cake backed off continuously throughout the month. Prices declined from 1’17.20 f.o.b. to 1’16.30 f.o.b. The Hamburg price dropped from GS17.50 to GS17.25, and finally to GS17.00. Very little business was done because buying interest was light even at the decline and the price seemed too cheap to sellers who were still hopeful of obtaining 1’17.00 or better, and who were in no great hurry to sell. Some little business was done in copra meal to the United States at prices ranging from GS14.50 to GS14.00 e.i.f. Pacific Coast. Meal business thi^ .vear to the Coast has increased as contrasted to previous years. The following statistics cover this com modity: STRENGTH ECONOMY USE is the sure sequel to a sleepless night. No concentration; no control over one’s faculties; general depression; painful discontent. If you want to work well you must have your nerves in order; your nerves will be raw if you do not sleep well. Your salvation lies in RIZAL^EMENT Bromural Tablets -Knoir. Their world-wide fame is founded on their rapid nerve-soothing action which restores sound sleep thus enabling you to utilise your full working capacity. Vouched for as harm less and not habit-forming. Obtainable from all the leading chemists. Tubes of 20 tablets. I “The Builders’ Choice” MADRIGAL & CO MANILA Knoll A.-G., Chemical Works, Ludwigshafen-on-Rhine. FORMULA: Urotropins 0-051 —Benzoato litico 0-028—Sales piperacinicas 0-046—Fostato disddico 0-023—Escipiente efervescente q. s. para 1 P. O. Box 254 Tel. 21-9-62 grIN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 25 Philippine Timber Exports of Logs Exceeding Lumber NINE YEARS’ EXPORTS OF PHILIPPINE TIMBER: LOGS AND LUMBER Japan buys liberally, but in forms leaving mill work to be done in that country rather than in the Islands Year Cubic Meters Value in Pesos Timber (logs) Lumber Timber Lumber 1924.................... 15,480 104,200 151,182 3,909,188 1925.................... 11,505 112,200 123,662 4,129,097 1926.................... 16,745 130,106 248,756 4,856,765 1927.................... 21,692 149,060 328,493 5,259,121 1928.................... 35,332 167,215 537,169 5,715,832 1929.................... 66,870 180,092 956,898 6,281,022 1930.................... . . . . 60,493 133,902 797,396 4,689,382 1931.................... 83,171 85,069 920,835 2,760,368 1932.................... 86,061 33,345 744,410 925,040 Totals......... 397,349 1,095,195 4,844,821 38,325,917 This table of timber exports of the Philippines shows the tendency toward export of logs, which go to Japan almost exclusively, rather than lumber going to other markets than Japan. Formerly Japan bought lumber in considerable amounts, she now seems to see more advantage in buying logs and squared timber and the tendency toward this less profitable export is accentuated by Japan’s continued demand for timber during the period other markets for Philippine timber have markedly declined. The year we are in seems to be running abreast with last year, a very slow one for our timber products. During the first half of this year exports of logs and squared timbers were 51,239 cubic meters valued at F355,453, against 18,054 cubic meters of lumber valued at P460.,513. From the former the Philippines realized f*6.93 a cubic meter, from the latter, the lumber, 1*25.50, a difference of P18.57 a cubic meter. Little income tax or sales tax accrues to the government from a log-selling business, more of such taxes accrue from a lumbering and lumber-selling business in which loggers, mills, dealers and shareholders are taxable. Disregarding taxes, the advantages of lumber exports to the islands over log exports are about as 4 to 1; Japan has been sagacious in shifting from lumber to logs and squared timbers and dividing the cost of her Philippine timber purchases by 4, for this method of supplying herself employs labor in Japan that would otherwise have to be paid for in the Philippines, and gives Japan taxes that otherwise would go to the Philippine government. The practice comports with the main sugges tion made in Manila by the party of peers of Japan recently here, that Japan is a market for Philippine raw products and the islands a market for Japanese manufactures. How general Japan-Philippine trade is running this year is seen in exports to Japan during the first 6 months valued at 1*2,600,000 and imports from Japan in the same time valued at 1*8,200,000; the visible balance of trade in this period against the Philippines, a balance not far from the actual one, is P5,600,000. Sale overseas of excess forest products such as timbers is desirable rn the Philippines, but rehabilitation of the overseas lumber market that once kept some 40 lumber mills busy here would be better 4 to 1 than sales of logs and squared timbers. Japan has one fertile source of logs and squared timbers in Mindanao. This concession, originally obtained about 1928, is very extensive, around 75,000 acres. It is clothed with heavy stands of valuable timber, including first-group varieties as well as tanguili and lawan, the popular woods for lumber. In 1930 the concession was renewed for 6 years. The table indicates the increased exports of logs and timbers from the Philippines to Japan since that time. The data on such exports during the first half of this year show this trade is keeping up. In such a trade the islands have to sell about 4 feet of timber to equal what they get for 1 foot of timber manufactured into lumber and exported in that form. Smart Rattan Furniture By PUYAT You do not know how smart kattan Furniture can look until you have seen thenewPUYAT line. Philippine Art Furniture Division Gonzalo Puyat & Sons, Inc. 727 Solana • Intramuros, Manila Foremost Philippine-made Shoes Real quality shoes made to sell at sensible prices Request your dealer to order the latest ESCO styles ESCO SINCE STORES 615 Escolta and 333 Legarda IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 26 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 SUPER-DRAGON 1934 Model PILOT is the pioneer in Round-the-World j Radio. | ALL-WAVE reception is taking J the country by | storm. | These sensational new sets are click- 1 ing in stations from ! all over the world, j TRY THEM NOW AND BE CONVINCED. Sole Importers JOSE OLIVER SUCC. CO. 317 Carriedo MANILA Tel. 2-15-37 RAIL COMMODITY MOVEMENTS By M. D. Royer Traffic Manager, Manila Railroad Company The volume of commodities received in Manila during the month of April 1934, via the Manila Railroad arc as follows: Rice, cavans................................. 109,632 Sugar, piculs................................. 898,909 Copra, piculs................................. 83,794 Desiccated Coconuts, cases....... 17,116 Tobacco, bales............................................... Lumber and Timber, board feet. . 445,500 The freight revenue car loading statistics for five weeks ending April 7, 1934 as compared with the same period for the year 1933 are given below: FREIGHT REVENUE CAR LOADING COMMODITIES FREIGHT CARB FREIGHT Decrease 1934 1933 1934 1933 Cars Tonnage Rice....................................................... 774 850 9.146 9,267 (76) (121) Palav................................. .................. 313 180 3.262 1,754 133 1,508 Sugar.................................................... 2,488 2,056 58,319 432 12,634 Sugar Cane......................................... 11,192 11,044 203,830 213.392 148 (9,562) 715 687 5,276 5,333 (57) Coconuts::: 155 177 1.896 2,172 (22) (276) Molasses................................................ 375 168 10.994 4,923 207 6,071 Hemp.................................................... (4) (41) Tobacco ............................................. 2 14 60 70 (12) (10) 26 17 131 89 9 42 Mineral Products................................ 455 311 6,770 4,026 114 2,744 Lumber and Timber........................... 274 7,008 8,738 (71) (1,730) Other Forest Products....................... 9 12 82 87 (3) (5) Manufactures . .................................... 1.924 1,838 86 AU Others including L. C. I,........ 3,399 3.656 20,006 28,430 (257) (8,424) Total............................................ 20,330 19.679 341,338 338,479 651 2,859 SUMMARY Week ending March, 10................... 5,577 5,321 97,290 94,640 256 2,650 Week ending March 17................... 4,816 5.086 84.330 91,198 (270) (6,868) Week ending March 24................... 4,418 73.202 73,600 175 (398) Week ending March 31............... 2,631 (420) (8,987) Week ending April 7....................... 2,888 1.978 45^547 2£h085 910 16,462 Toni................................................. 20,330 19.670 311.338 338.479 651 2,859 Regain Youth POOR digestion and constipation bring on the feeling of age. Poisons spread through the blood ... cause listless ness and headache . . . ruin the com plexion . . . sap vigor. End these evils with Fleischmann's Yeast. Three cakes a day keeps the intestines clear. Aids digestion. Adds vitality. You feel young! Fleischmann’s Obtainable at all good Grocery and Drug Stores in Manila, Cebu, Iloilo and Baguio “KIRIN BEER” THE CHOICE OF THE MULTITUDE It's not merely a drink. It is a wholesome, refreshing, and invigorating beverage ever in troduced in the Tropics! WE ALSO CARRY IN STOCK Silk and Cotton Goods Toys and Toilet Goods Groceries, Porcelain and Glasswares. School Supplies, Etc., Etc. TAKAHASHI & CO., INC. Importers & General Merchants , Manila . 14-96-18 753 Tabora p 0 gox 220 TeIs-\4-96-19 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL THE RICE INDUSTRY By Percy A. Hill of Munoz, Nueva Ecija Director, Rice Producer’s Association Both palay and hulled rice prices are weak, due to unsettled condi tions and lowering de mand, and the tendency is toward further de cline. Balay at primary markets is Pl.SO to P2.lt) per cavan ac cording to grade. Rice, macans from P4.lt) to 1*4.30 per sack of 57 kilos, luxury rices from 1*4.40 to 1*4.90. Per capita consumpI’hilippines during 1933 was amount of luxury rice. The dollar debased, and given the current prices, the Philippines can export very little rice either to the United States or Porto Rico. Practically supplying the do mestic market of the islands, the danger line in the Philippine rice industry is about reached. Yet further expansion will of course take place, rice will be grown where export crops must be abandoned. The 1933 Japanese rice crop was 134,710,000 cavans, 8.6% above normal. (1 koko equals 5.119 bushels, or 2.128 cavans). Low rice prices prevailing in China are affecting areas given to rice, Canton has raised its rice tariff. Indochina had a normal crop, 1,650,000 metric tons, with exports up a bit over former years. Siam reports a surplus, Burma expects about the usual supply and surplus for export. tion of rice in the -.....__________ _____ __ 146 kilos, approximately 2-1 2 sacks, based on a population of 11 million folk using rice for bread; which means a harvest of 27,000,000 sacks plus a small importation. Importations of rice were 218,000 sacks in 1931, 231,566 in 1932, 345,500 in 1933; which in all 3 years included glutinous varieties required for confectionery, rice for the Japanese in Davao and other communities, and Spanish luxury rice. These are the lowest year ly rice importations during the past 30 years. Philippine rice exportations were 15,270 sacks in 1931, 5,800 in 1932, 3,382 in 1933. Much of this was for ships, with a negligible JOAQUIN REYES & CO., INC. Photoengravers Up-to-date Equipment Modern Methods (School Annual Cuts Our Specialty) Please send us your next order for cuts HALFTONES COLOR PLATES LINE ETCHING COLOR PROCESS COMBINATION CUTS Free Press Building __ P. O. Box 326 680 Rizal Ave. ~ Manlla “ Tel. 2-21-10 CHARTERED BANK OF INADJAD’chuintar ALIA Capital and Reserve Fund..........................................£6,000,000 Reserve Liability of Proprietors............................... 3,000,000 WhisicT MANILA BRANCH established 1872 SUB-BRANCHES AT CEBU, ILOILO AND ZAMBOANGA Every description of banking business transacted. Branches in every important town throughout India, China, Japan, Java, Straits Settlements, Federated Malay States. French Indo-China, Siam, and Borneo; also in New York. Head Office: 38 Bishopsgate, London, E. C. C. E. Stewart, Manager, Sole Agents for the Philippine Islands The Manila Wine Merchants LIMITED= ■ Head Office: Wise Building 174 Juan Luna Tels. 49057-49058 Branch Office: 37-39 Alhambra Opposite the Elks Club. Tel. 2-17-61 Scientific Inspection With the latest instruments of precision by registered optometrists characterizes all eye exa minations in our office. Our lenses are all ground by experienced operators, exactly to your prescription. This is the kind of service we give you. Ever the best in quality but never higher in price IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 28 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 APRIL SUGAR REVIEW By Geo H. Fairchild New York Market: Although the market showed a slight im provement at the close of the previous month in anticipation of con gressional action on the sugar control bill, the first week of the month under review, in spite of the approval by the House of the bill in question on April 4th, saw recessions both in prices for actual sugar and quotations on the Exchange, the former ranging down from 2.95 cents to 2.83 cents for duty-free sugars and the latter declining 10 to 14 points. During the following week, prices for duty-free sugars sagged 10 to 13 points, from 2.83 cents to 2.70 cents, as the result of pressure of sales, although improvement was noted on the 12th when a sale of April shipment sugar was made at 2.83 cents. Quotations on the Exchange suffered losses of 3 to 6 points on the 10th against the previous week’s levels, but these picked up again with slight fluctuations up to the close of the third week. During this week, the price of refined was reduced to 4.30 cents per pound. The setback suffered bv the Exchange market during this week, in common with all the other markets, owing to the strong opposition to the proposed silver legislation, was offset by the expectation that the provisions of the Jones-Costigan sugar bill would soon be put into effect, resulting in slight improvement of Exchange quotations at the end of the month, while prices for afloat duty-free sugars from the third week onwards similarly advanced from 2.75 cents to 2.80 cents. Futures: Quotations for future deliveries on the Exchange fluctuated during April as follows: High Loir Latest Mav...................................... 1.54 1.36 1.44 July....................................... 1.59 1.42 1.48 September............................ 1.63 1.47 1.54 December............................. 1.68 1.53 1.61 January................................ 1 69 1.54 1.62 March................................... 1.72 1.59 1.67 Stocks: Stocks in the United Kingdom, United States, Cuba, Java and European statis tical countries as reported April 26th were 8,340,000 tons as compared with 8,953,000 tons in 1933 and 8,780,000 tons in 1932. Philippine Sales: Sales and resales of Philippine sugar were rejwrted in New York during the month as follows: from To Sales............................... 157,150 2.70 2.90 Resales........................... 24,600 2.70 2.95 Local Market: Exporting houses’ quota tions during the first week were reduced to 1’6.501’6.55 |>er picul without any significant business being done. Following the sharp decline in sugar values in the New York market, local quotations sagged to ' 6.00 in the early part of the second week, then advancing to P6.25 in the latter part of the week, at which level only insig nificant transactions were made. This im provement was not maintained as during the third week, exporting houses again reduced their quotations to P6.10. Little business was done at this level, but speculators were able to secure certain parcels at prices ranging downward from 1 5.70 to P5.40 per picul “without any conditions covering the possibility of the imposition of quota or an alteration in the U. S. tariff.” During tne last week, local quotations increased to 1’6.10-1’6.20 per picul, although certain parcels changed hands at 1 6.30. Crop Prospects: Most of the large sugar Centrals haye now finished milling their 1933-34 crop. The production of these Centrals as well as those which have not finished grinding is tabulated below (up to April 29): CENTRALS’ PRODUCTION FOR 1933-31 CROP Metric tons up to April 1. Arayat (a)................................. 15,548 2. Bacolod....................................... 62,502 3. Bais............................................. 36,728 4. Bamban...................................... 36,728 5. Bearin......................................... 12,921 6. Binalbagan (a)........................... 65,425 7. Calamba (a).............................. 71,534 8. Calatapan (a)............................. 7,934 9. Cebu............................................ 12,270 10. Danao......................................... 6,810 11. Del Carmen (a)........................ 84,036 12. Don Pedro................................. 47,905 13. El Real....................................... 8,669 14. Hawaiian-Philippine (April 21) 64,628 15. Isabela......................................... 42,467 16. Janiuay....................................... 11,310 17. La Cariota (a)........................... 90,822 18. Lopez........................................... 14,251 19. Ma-ao (a)................................... 59,171 20. Manapla..................................... 22,190 21. Mindoro (a)............................... 12,409 22. Pilar............................................ 17,845 23. Palma.......................................... 10,495 24. San Carlos................................. 33,056 25. San Fernando (a)...................... 90,509 26. San Isidro.................................. 12,400 27. Santos-Lopez.............................. 17,698 28. Sara-Ajuy (a)............................. 9,449 29. Talisay-Silay (a)........................ 57,849 30. Tarlac (a)................................... 90,573 31. Victorias..................................... 43,474 1,172,334 (a) Actual final production. Philippine Exports: The sugar exports for the month of April, as reported to us by private sources, amounted to 195,351 long tons of centri fugals and 9,934 long tons of refined or a total BONDS Firearm Ammunition Judicial Contractors Customs Internal Revenue Fidelity and other Bonds INSURANCE Fire Marine Earthquake Typhoon Workman’s Compensation and other Insurance Call or Write for Particulars ILDEFONSO TIONLOC, INCORPORATED FIDELITY AND SURETY COMPANY of the PHILIPPINE ISLANDS Customs Brokers and Forwarding Agents Geo. C. Dankwerth President P. M. Poblete Sec.-Treasurer E. B. Ford Vice-President A. Santwico Asst. Sec.-Treasurer MONTE DE PIEDAD BUILDING Plaza Goiti Tel. 2-12-55 Manila, P. I. 123 Dasmarinas Manila, P. I. « . , (4-90-16 Telephones^ go l7 IN R1 SPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 29 of 205,285 long tons. The aggregate exports for the first half of the current crop year begin ning on November 1, 1933, and ending on April 30, 1934, follow: Centrifugals............................................. 900,569 Refined.................................................. 51,627 Total................................................. 952,196 Copra and Its Products (Continued from page 2.',) Shipments— 'Pons Pacific Coast...................................... 1,968 Atlantic Coast.................................... 182 Eurojie................................................. 2,642 China................................................... 51 Total................................................ 4,843 Stocks on Hand— 'Pons Beginning of Month......................... 4,254 End of Month................................... 6,290 Desiccated Coconut: No material change in the Desiccated product at 7-1.2 cents per pound e.i.f. New York, and mills were able to maintain normal production. Shipments de clined to 1,837 tons as against a rather high March delivery of 2,242 tons. General: The future is very obscure. There is every indication to believe that the President will sign the excise tax bill although he disap proves of it. If this bill is signed, copra and oil business may be expected to decline to a marked degree, but how much, only exj>erience will tell. The shutting out of all foreign oils from the United States should result in greater competition and lower prices in Europe, and the best guess at this time is that barring an unexpected ac celeration in the recovery, there is little prospect that prices can advance and more than an e\en chance that they may decline a bit more. Interests out here have been doing all possible to combat the excise tax and are awake to the seriousness of the situation. The net result of their efforts hate, unfortunately, so far been insufficient to change the views of the American congress. OXYGEN Compressed Oxygen 99.5% pure HYDROGEN Compressed Hydrogen 99.8% pure ACETYLENE Dissolved Acetylene for all purposes BATTERIES Prest-O-Lite ■ Electric Stor age Batteries WELDING Fully Equip ped Oxy-Ace tylene Weld ing Shops. Philippine Acetylene Co. 281 CALLE CRISTOBAL, PACO MANILA, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 30 THE AMERICAN'CHAMBER OF COMMERCE JOURNAL May, 1934 TO EUROPE BY AIR TRAVEL BY MODERN AEROPLANES OF THE ROYAL DUTCH AIR LINES (K. L. M.) WEEKLY PASSENGER AND MAIL SERVICE BETWEEN BATAVIA (JAVA) AND AMSTERDAM (HOLLAND) VIA PALEMBANG, SINGAPORE, ALOR STAR, BANGKOK, RANGOON, CALCUTTA, ALLAHABAD, JODHPUR, KARACHI, JASK, BUSHIRE, BAGHDAD, RUTBAH, GAZA, CAIRO, ATHENS, BUDAPEST AND LEIPZIG. 9000 MILES IN 8 DAYS For full information please apply to EASTERN & PHILIPPINES SHIPPING AGENCIES, LTD. Escolta 8-12 Manila (Comer Jones Bridge) Tel. 2-26-96 Luzon Stevedoring Co., Inc. Lightering, Marine Contractors Towboats, Launches, Waterboats Shipbuilders and Provisions SIMMIE & GRILK Phone 2-16-61 Port Area The National City Bank of New York Capital (Paid) - U.S. $127,500,000.00 Surplus - - - - ,, 30,000,000.00 Undivided Profits „ 5,087,505.94 (as of Dec. 30th, 1933) COMPLETE BANKING SERVICES MANILA OFFICE National City Bank Building IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 Coconut Oil. Commodities Desiccated and Shredded Coconuts. Hats (Number)................................... Lumber (Cubic Metere).................... Copra Meal.......................................... Cordage.................................................. Knotted Hemp..................................... Pearl Buttons (Gross)......................... Canton (low grade cordage fibre).. . All Other Products............................... Total 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 Goode, Except Books.............................. Tobacco ManufactuElectrical Machinery.. .. Books and Other Printed Matters........................... Cars and Carriages......... Automobile Tires. ...... Fruits and Nuts............... Woolen Goods.................. Leather Goods.................. Shoes and Other FootCoffee...................... •• Breadstuff, Except Wheat Flour............................... Eggs, In natural Form.. Perfumery and Other Toilet Goods................ Lubricating Oil............ .. Cacao Manufactures, Ex cept Candy................... Glass and Glassware.. .. Paints, Pigments, Var nish, 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.. .. Matches............................. Cattle................................. Explosives.......................... Cement............................... Sugar and Molasses........ Motion Picture Films. .. Other imports................... Total. PRINCIPAL EXPORTS February, 1934 February, 1933 Monthly average for 12 months previous to February, 1934 Quantity Value % Quantity Value % Quantity • Value % 188,275,309 12,729,472 14,644,339 21,054,506 21,302,377 1,056,908 2,882,950 1,911,170 86,350 8,853 8,445,965 729,238 27,077 68,190 43,010 P23.602.690 1,262,163 1,516,633 1,080,211 671,243 243,988 68,678 532,101 332,234 174,097 236,660 155,558 233,985 32,100 49,904 2,186 807,155 70.0 128,720,556 4.0 9,83,3,908 4.8 12,450,306 3.4 11,594,797 2.1 12,310,659 0.7 0.2 430,986 1.6 1,527,572 1.0 1,682,894 0.6 68,312 0.7 1,054 0.5 8,123,208 0.7 383,600 0. 1 126,370 0^2 701,813 192,914 2.8 P13,887.108 805,980 1,486,875 778,331 408,310 343,365 23,273 455,685 306,939 113,077 31,856 207,672 109,934 33,032 143,483 12,203 567,896 P19.590.183 76,763 48,073 99.4 0.4 0.2 P31.061.586 100.0 P19,715,019 100.0 Note:—All quantities are in kilos except where otherwise indicated. PRINCIPAL IMPORTS February, 1934 Value % P2,490,129 1,004,574 468,478 547,675 415,670 582,082 209.928 592.928 113,055 70,257 178,270 128,743 17,059 13 9 0 9 2 1 2 0 1 5 2 2.6 3.0 2.3 0.6 O.'' 0.5 0.7 0.5 1.3 0.7 0.8 0.5 0. 1 Monthly average for February, 1933 12 months previous to February, 1934 Value % Value % Pl,199,710 630,383 223,033 207,660 149,731 56,018 57j378 31,852 13 7 5 6 2 2 1 4 1 2 9 6 4 1 2 1 6 4 0 6 5 2 8 2 1 0 7 7 7 0 0 7 0 0 6 7 0 7 4 7 7 3 4 3 3 2 12.6 7.5 8.3 348,248 302,344 283,575 389,800 296,654 126,613 99,132 118,353 64,234 124,751 119,525 54,402 118,770 102,580 90,993 25,450 2.7 2.4 2^3 2.2 3.0 2.4 90,878,983 13,393,926 14,393,094 28,194,311 17,701,679 595,963 1,356,123 1,580,500 88,568 5,791 9,322.810 521,264 27.194 68,900 415,638 IU,»3U,81Z 1,245,804 1,589,727 1,601,042 566,873 273,059 36,763 283,077 293,486 141,493 158,275 186,230 25,216 627,471 3 „.5 0.2 CARRYING TRADE IMPORTS February, 1934 Nationality of Vessels American, , British........ Japanese... Dutch........ German.. .. Norwegian. Philippines. Spanish.. .. Swedish.. .. Danish........ Portuguese. Panaman . . Italian........ Belgian.... By Freight. By Mail. .. Total. Nationality of Vessels 0.8 1.2 1.6 ---------------3.9 American. . 1.0 British........ 1.0 German.. .. 0.9 Norwegian. Spanish.. .. 1 ■ 0 Dutch........ 0.6 Philippines. Chinese.. .. 1.0 Swedish.... 1.0 Danish........ Panaman .. 0.4 Italian .... Total. 0.2 0. 256,380 278,741 P18.067.574 99 92,174 0 42,612 " P18.202.360 100.0 Monthly average for February, 1933 12 months previous to February, 1934 Value % Value % 31 37 8 3 6 2 12 2 6 6 0.1 EXPORTS 32 0 2 9 8 5 10 6 6... 0.7 10.4 4.7 5.3 8^4 0.2 0.5 0^2 1.7 2^5 3.0 L5 Monthly average for February, 1934 February, 1933 12 months previous to February, 1934 Value 429,422 842,727 870,230 % 21.7 21.0 36.2 l’.O 12.7 2.7 2.8 Value % P6,657,562 3,658,439 5,244,744 212,843 1,695,692 199,672 1.1 1.9 0.6 5. 1 4.1 0.'9 0.8 P31.061.586 100.0 P19,715,019 100.0 P18.202.360 100.0 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES Countries Monthly average for February, 1934 February, 1933 12 months previous to February, 1934 Value % Value Value 74 2 7 2 8 2 8 9 United States................. United Kingdom............ Japan................................ French East Indies.... Germany........................... Australia........................... British East Indies.. .. Dutch East Indies........ —----- - France............................... Monthly average for Netherlands..................... February, 1933 12 months previous Italy ■_............................... to February, 1934 5 9 7 9 4 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES 2 6 0 4 1 Ports February, 1934 Value % Value % Manila........ Iloilo.......... Cebu.......... Zamboanga.. Jolo............. 64.1 26.4 7.0 0.3 2 0 8 1 0 Total. Hongkong.......... Belgium.............. Switzerland........ — Japanese-China. >; 2 Sweden.............. 1 Canada....................... 7 Norway....................... 1 Austria....................... 3 Denmark.................... 7 Other Countries.... P49.286.717 100.0 P28,323,524 100.0 P30.920.117 100.0 Total. 8 2 7 7 6 0 0 2 0. 1 0.2 0.2 3 3 2 2 6 151 13,275 34,270 0. 1 1.6 32 THE AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1934 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 American Chamber OF Commerce Journal P.O. BOX 1638 TEL. 21126 D. B. Santos Commercial Artist CUTS PRINTING TEL. 2-27-05 320 Bustos MADRIGAL 8b CO. 8 Muelle del Banco Nacional Manila, P. I. Coal Contractors and Coconut Oil Manufacturers MILL LOCATED AT 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 P. O. Boa 1394 Telephone 22070 J. A. STIVER Attorney-At-Law-Notary Pub.ic Certified Public Accountant Administration of Estates Receiverships Investments Collections Income Tax 121 Real, Intramuros Manila, P. I. PHILIPPINES COLD STORES Wholesale and Retail Dealers in American and Australian Refrigerated Produce STORES AND OFFICES Calle Echague Manila, P. I. S « CHINA BANKING CORPORATION MANILA, P. I. Domestic and Foreign Banking of Every Description International Harvester Co. of Philippines MACLEOD & COMPANY Manila—Cebu—Vigan—Davao—Iloilo Exporters of Hemp and Maguey Agents for INTERNATIONAL HARVESTER CO. Agricultural Machinery “LA URBANA” (Sociedad MOtua de Construcci6n y Pristamos) Prestamos Hipotecarios Inversiones de Capital Paterno Building, Calle Helios 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 your income—there’s a National Sifr plan that is ideally suited to your needs! What a National Cife PIO,000 Endowment Policy offers you: P10,000 to spend as you please at the end of the endow ment period. P10.000 for your fa mily in the event of untimely death. Or P20.000 if death is caused by accident A substantial BONUS every five years while the policy is in force. Pl,000 every year for ten years should you be totally disabled Our Endowment Policy with Guaranteed Bonus assures you of a MONTHLY INCOME for 20 years, or for life, for yourself or beneficiary in lieu of cash set tlement. National Etfr Jnsnranrr fflo. “National Life Makes Your Future Bright” Miguel Unson President Arsenio N. Luz General Agent Hipolito Berrenengoa Assistant General Agent Telephones: Home Office: 2-32-29 General Agency: 2-39-07—2-39-08 Offices: Regina Bldg. Escolta, Manila P. O. Box 676 Dear Sir: THE GENERAL AGENT NATIONAL LIFE INSURANCE CO. am interested in your details without obligation on my part. policies and would of Your Hirth............................... further IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Xou know, that means something By “balancing” 6 dif ferent types of homegrown tobaccos— By adding just the right amount of the right kinds of Turkish— By blending and cross blending—‘ ‘ w e.l d i n g ” these tobaccos together— We believe we have in Chesterfield a cigarette that’s milder and tastes better. “They Satisfy” has.always seemed to jus the best way of describing what we mean by this milder better taste. the cigarette that’s MILDER • the cigarette that TASTES BETTER IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL