The American Chamber of Commerce Journal

Media

Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Issue Date: Volume XVII (Issue No. 1) January 1937
Year: 1937
Language: English
Rights
extracted text: Manila, the City of Churches U. S. Navy Buys Philippine Sugar The Cheap Money Era: How Long Will It Last? Philippine Army Economy Science, Munitions and Civilization MINING REVIEW Looking Back Over 1936 By Rd!pb Keeler Modernizing Manila’s Mining Stock Business Treasure Island Average Daily Tonnages for 1936 Average Recovery for 1936 Metals Hit High Levels OTHER FEATURES AND THE USUAL EXPERT MINING AND COMMERCIAL REVIEWS There is an McCormick-Deering Diesel Power Unit 50 II. P. McCormick-Deering Engine 1-12 to 2-1 2 IIP -ind 3 to 5 HP 8 58 International Harvester ENGINE to meet your POWER requirements WHATEVER your power requirements, there is an INTERNATIONAL HARVESTER engine of the pioper size and type that will cut your operating costs to Well Pun,,, tl,r,.11Uh >|><'<-i:illy <l<-.«iKn’-<l Blackstone Type DB Diesel Engine 8 HP & 12 IIP the minimum. Easy starting .... low fuel consumption .... long life and low maintenance cost .... dependability .... convenience .... modern construction .... International Harvester and Blackstone Engines give you the best value for your money. Write us for General Catalog No. 19 covering full information, prices and terms. International Harvester Company OF PHILIPPINES 154 M. de Comilk’.s, Manila Iloilo . Bacolod < Cebu . Davao • Legaspi • Baguio Blackstone Diesel Engines RIGHT: IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 1 Otifyuwd, aoa,nst jiiF influenza AND < V colds ~ With (7iFmspiRiA/r Qiiick and safe relief IF YOU LOST YOUR MEMORY YOU’D BE UTTERLY HELPLESS If You Lost Your Business Records YOUR BUSINESS WOULD BE RUINED SAFEGUARD YOUR RECORDS, THE LOSS OF WHICH YOUR BUSINESS COULD NEVER SURVIVE! ARE POSITIVELY FIREPROOF AND BURGLAR PROOF! THEY CANNOT BE DESTROYED—FIRE CANNOT DESTROY THE CONTENTS. PHONE OR WRITE OUR OFF ICE EQU1PME NT DEPARTMENT FOR DETAILS, PRICES, AND FULL INFORMATION NOW! DON’T WAIT UNTIL IT’S TOO LATE! HEACOCK’S THE STORE OF QUALITY Send the JOURNAL to friends in U.S. Cost Only IM.00 a Year American Chamber of Commerce Journal P. O. Box 1638 Manila WHY BE VAGUE? ASK FOR HAIG $ ■UK KL Wm IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 2 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 CHARTERED BANK OP ,NADJAD’ cV.nVAL,A Capital........................................................................................... £3.000,000 Reserve Fund............................................................................. 3,000,000 Reserve Liability of Proprietors...................................... 3,000,000 MANILA BRANCH established 1872 SUB-BRANCHES AT CEBU, ILOILO AND ZAMBOANGA Ever}’ 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. The Bank’s London Office undertakes Executor and Trustee business, and claims recovery of British Income-Tax overpaid, on terms which may be ascertained on application. Head Office: 38 Bishopsgate, London, E. C. C. E. STEWART, Manager, Do your friends a favor! Direct them to The Manila Hotel the leading hotel in the Orient where they will have s E A L S LUXURIOUS COMFORT at MODERATE RATES Provides every Western con venience combined with every Oriental luxury continue to be the recognized leaders in QUALITY cigars American Plan Only H. C. (“ANDY”) ANDERSON Managing Director Superior Qualify Dependable Service the next time you need a Rubber Stamp or Dry Seal and our Salesman will call ti j-c^ttt r otic I W/K PRINTING CO M I> A N Y LT-L u cr Sales Office: 2nd Floor T A M P S IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 3 Here’s how to get Manila's! I Genuine Manila Long Filler Cigars in cellophane are obtain able in your city or nearby! List of Di str iI b u t or s I furnished upon rey quest to— C. A. Bond Philippine Tobacco A ftent: 15 Williams Street, New York City Collector of Internal Revenue Manila, P. I. MA NILAS made under sanitary conditions will satisfy your taste! (Health Bulletin No. 28) Rules and I Regulations for the Sanitary Control i of the Factories of Tobacco Products. I “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;....”. Specie JBanfc —..- Utb. = (Established 1880) HEAD OFFICE: YOKOHAMA, JAPAN Yen Capital (Paid Up).........................................................................................100,000,000.00 Reserve Funds ............. 130,900,000.00 Undivided Profits ................... 10,446,651.83 MANILA BRANCH 34 Plaza Cervantes, Manila S. Dazai, Manager Telephone 2-35-28 Import Dept. Telephone 2-37-58 Export & Current Deposit Account Dept. Telephone 2-37-59 Manager Telephone 2-37-68 Remittance 8c Deposit Dept. Telephone 2-37-55 Cashier 8c Accountant Rent an ELECTRIC RANGE Why cook the old-fashioned way? Investigate modern Electric Cooking. You do not have to buy a range to try it. We will install a range free, and you pay only the monthly rental for the use of it—plus the current con sumed. We know that once you have tried Electric Cook ing, you’ll never go back to any other type. RANGE RENTAL OFFER: Free Installation in your kitchen, Free Servicing, and Free Repairs and Replacements of Parts. Get more details of this Offer today. 1 J !Z Manila and Suburban J-~ * C) homes have changed to ELECTRIC COOKERY Manila Electric Company 134 San Marcelino Telephone 2-19-11 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 4 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 When— I you buy matches ' ask for : '‘WIIILIIIPIPIIIW IMIATCIHIES’”' any matches bearing the name Philippine Match Co., Ltd. will give you | service and protection CAPITOL—COMING SOON KAY AT THE PEAK OF HER LOVELINESS AND GEORGE AT THE TOP OF HIS FORM Reward You With Performances That Will Make You Thank Them From The Bottom of Your Heart! KAY FRANCIS GIVE ME YOUR HEART GEORGE BRENT ROLAND YOUNG. PATRIC KNOWLES. HENRY STEPHENSON.FRIEDA INESCORT A Warner Bros. Picture • A Cosmopolitan Production • Directed by ARCHIE L MAYO ! THE BUILDER’S TEST IS ALWAYS BEST "Builder’s Choice" RIZAL CEMENT Superior Lower Cost i -----ZZZZ — ■ --------------HUIHAI k CO. i MANILA P. O. Box 254 — Tel. 2-19-62 WARNER, BARNES & COMPANY, LTD. LONDON — NEW YORK — MANILA ILOILO — CEBU — BACOLOD IMPORTERS & EXPORTERS SHIPPING DEPT. INSURANCE DEPT. Agents For: Nippon Yusen Kaisha Cunard-White Star, Ltd. Bibby Line Transacting Fire Marine Automobile Workmen’s Compensation and Miscellaneous GENERAL MANAGERS OF COMMONWEALTH INSURANCE COMPANY SPECIAL REPRESENTATIVES OF IMPERIAL AIRWAYS, LTD. MACHINERY DEPARTMENT Agents For: Sugar Machinery, Diesel Engines, Condensing Plants, Mining Machinery and Steels, Shipbuilders and Engineers. AGRICULTURAL DEPT. IMPORT DEPT. All Classes of Sperry Flour Fertilizer Sugar Bags Cable Address: “Warner' Standard Codes Manila Office: Perez-Samanillo Building, Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL THE AMERICAN J CHAMBER ^/COMMERCE January, 1937 WEF VoL XVI1’ No- 1 Single Copies: 35 centavos WALTER ROBB Editor and Manager Entered as Second Class Matter May 25, 1921 at the Post Office at Manila, P. I. America’s Philippine and Straits Settlements Markets Since President Quezon of the Philippine Commonwealth cordially welcomes overseas capital, from America particularly, why not more effort for rubber here? We have the following letter from Singapore, from a reader expert in tropical products and the trade in them throughout the world: “The inclosed editorial from the Singapore Free Press has.onc point of interest, it shows that the trade balance between the Malay Peninsula and the United States stands in the ratio of 47 to 1 against the United States. But that is not the whole story. (The editorial follows our transcription of the letter). Since November the price of rubber has risen a good 25%, and tin at least 10%. For December and thereafter, that balance will be much more against the United States than even 47 to 1. “It is all very well to say that in our trade with-the British Empire we regain in the round what we lose in the swing, but where in that empire are we going to find markets to make up for the fact that where we buy our rubber and tin requirements we are only allowed to pay for them in mer chandise to the extent of 2%. Perhaps from these figures you can demonstrate to your readers the value of a market such as the one we possess in the Phil ippines, in which we are allowed to pay for what we import with products of American labor up to 60% and 70%. There will be a new rubber boom in 1937, world consumption is being esti mated at 1,200,000 tons. The standard production as estimated by the rubber pool is 1,300,000 tons. However, very few estates can make their quotas on the basis of 70% of the standard pro duction, and practically none will be able to produce their quotas on the basis of the full 100% of the standard production. “Of the 1,200,000 tons, if consumption in 1937 reaches that figure, the United States will take at least 900,000 tons of 2240 pounds, which at 39 cents Straits per pound, the actual spot price in Straits dollars 649.60 per ton, means that the United States is going to pay about 575,000,000 Straits dollars in 1937 for the raw rubber she uses, or nearly 330 million American dollars. Do you not regret that tlie island of Min danao is not spotted with rubber plantations? First for the increased revenue it would bring the Philippines, and secondly for the increased market for American goods such additional revenue would afford, and thirdly because it would prevent Tapping young rubber, Basilan Island. this peninsula and the Dutch East Indies from working the periodical squeeze of which the Free Press speaks—a squeeze, by the way, that profits London and Amsterdam more than it does the producing countries, since 90% of the increased revenue will go toward dividends on shares owned in and around those cities. “In addition to 8330,000 which we will pay for rubber, there is another little matter of about 90,000 tons of tin which we will buy at £230 or better a ton, and that is another 8100,000,000. Of course le bon Dieu put the tin where it is found and if the Philippines have no tin it can not be helped; but how about the palm oil, the cocoa, the coffee, and the tea—to say nothing of cinchona, tapioca, pepper and spices for which that same bon Dieu provided those islands with the exact soil and climate necessary for their growth. “Does not the fact that we have done nothing about these prime necessities, either as Philippine producers or Amer ican consumers, make you want to weep on my shoulder as I should like to weep on yours. ... If you can find any meat in this coconut you are entirely welcome to it.” It is a curious fact in world commerce that the American regime has added no crop to Philippine agriculture, and sugar cane is about the only old crop it has improved. Coffee is not so good as it was 50 years ago, and not so abundant; some good tobacco has been added, but old types have not been improved. America, it seems is just not a country embracing a practicalminded class of great agricultural investors. Then the ques tion is, are the Philippines? They arc not, at this time; the many good farmers here are not yet ready to organize and finance the great farm corporations. Mindanao offers a great field of profit—this development will only come after the new mining industry is further developed and dividends from it have to be put to use in other ways. When that time comes investors will have been accustomed to returns of 10% to 15% a year, while now they demand much more—and commonly manage to get it out of sugar, coconuts and Manila hemp, as well as the great rice crop sold entirely in the Islands. {Please turn to page 10) ■ 6 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 Japanese Mandates In The Pacific Ocean The League of Nations, which was formed by twenty-eight allied nations after the Great European War, came into ex istence on January 10, 1920, through the coming into force at that date of the Treaty of Versailles signed at Versailles, France, on June 28, 1919. In virtue of this Treaty, the League mandated to, that is, committed to the charge of, Japan, to be governed as Mandates, the former German possessions in the Pacific Ocean, covering an immense expanse of sea and extending for 1,200 miles north from the equator and for about 2,500 miles east to west, and consisting of the following groups of islands, namely: Approx. Area Approx, sq. miles. Population Marianne or Ladrone Islands................................... 450 83,328 Less: Guam (the largest island in this group), ceded by Spain to the United States in 1898.............. 206 18,509 Balance of the group belonging to Germany and mandated to Japan................................................. 244 64,819 Marshall Islands.......................................................... 160 9,700 Caroline Islands.......................................................... 400 23,222 TOTAL former German possessions mandated to Japan........................................................................ 804 97,741 Population as at April 1, 1930: Japanese................................................ 21,422 Foreigners........................................ 81 Total Japanese and foreigners (chiefly in the Marianne Islands)........................................... Total native population in the Japanese Mandates.......................................'.............. 21,503 76,238 The seat of government is in Parao (Palaou) in the Carolines, and the principal resources in these mandated islands are phosphorus ores (chiefly in the Carolines), coconut and copra. The budget for all of the above Japanese Mandates, con sisting of a total of 623 islands, was balanced for the fiscal year 1932-1933 at 5,628,918 yen which, at the present exchange of approximately 28-5/8 (that is, U.S.SO.28625 per yen), is equivalent to U. S. SI,611,277.78. The circumstances which led to Japan’s coming into pos session of these islands are, in part, as follows: On February 16, 1917, at the very time when America was urging China to sever diplomatic relations with Germany, the British Government concluded an agreement with Japan, in part, reading as follows: “His Britannic Majesty’s Government accedes with pleasure to the request of the Japanese Government for an assurance that they will support Japan’s claims in regard to the disposal of Germany’s rights in Shangtung and possessions in the islands north of the equator on the occasion of the Peace Conference; it being understood that the Japanese Government will treat in the same spirit Great Britain’s claims to the German islands south of the equator.” On February 19, 1917, Baron Motono of Japan sent a com munication to the French and Russian Ambassadors at Tokyo stating, among other things, that: “The Imperial Japanese Government proposes to demand from Germany, at the time of the peace negotiations, the surrender of the territorial rights and special interests Germany possessed before the war in Shangtung and the islands belonging to her situated north of the equator in the Pacific Ocean.” The French Ambassador on March 2, 1917, replied as fol lows : “The Government of the French Republic is disposed to give the Japanese Government its accord in regulating at the time of the Peace negotiations questions vital to Japan concerning Shangtung and the German islands on the Pacific north of the equator. It also agrees to support the demands of the Imperial Japanese Government for the surrender of the rights Germany possessed before the war in this Chinese province and these islands. M. Briand demands on the other hand that Japan give its support to obtain from China the breaking of its diplomatic relations with Germany, and that it give this act desirable significance. The con sequences in China should be the following: First, handing passports to the German diplomatic agents and consuls; Second, the obligation of all under German jurisdiction to leave Chinese territory; Third, the internment of German ships in Chinese ports and the ultimate requisition of these ships in order to place them at the dis position of the Allies, following the example of Italy and Portugal; Fourth, requisition of German commercial houses, established in China; forfeiting the rights of Germany in the concessions she possesses in certain ports of China.” The Russian reply dated March 5, 1917 to Baron Motono’s Note was as follows: “In reply to the Note of the Japanese Ministry of Foreign Affairs under the date of February 19th last, the Russian Embassy is charged with giving the Japanese Government the assurance that it can entirely count on the support of the Imperial Government of Russia with regard to its desiderata concerning the eventual surrender to Japan of the rights belonging to Germany in Shangtung and of the German islands, occupied by the Japanese forces, in the Pacific Ocean to the north of the equator.” In total ignorance of all of the above exchanges of secret understandings, the United States, on April 6, 1917, declared war against the Central Powers, thus began helping the Allies to fight the war lor righteousness, for democracy, for a war to end wars, and for the 14 points which included condemnation oi the practice of transferring peoples and territories “from potentate to potentate as though they were chattels.” President Wilson, when asking Congress to agree to the declaration of war, said, among other things, that: “We shall, I feel confident, conduct our operations as belligerents without passion, and ourselves observe with proud punctilio the principles of right and fairplay we profess to be fighting for.” It may be recalled that in November, 1915, Japan was not in favor of China joining the Allies, Viscount Ishii explaining: “Japan considered developments in China as of paramount interest to her, and she must keep a firm hand there. Japan could not regard with equanimity the organization of an efficient Chinese army such as would be required for her active participation in the war, nor could Japan fail to regard with uneasiness a liberation of the economic activities of 400,000,000 people.” The Lansing-Ishii Notes, or the so called Japanese-American Agreement, were in fact notes exchanged on November 12, 1917, between Viscount Ishii for Japan and Secretary Lansing for the United States, the result being the acknowledgment, on the part of the United States, of Japan’s special interest in China on account of her territorial contiguity. (Please lain to page J6‘) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 7 Miller Pirlo Manila's Beautiful and Majestic Cathedral on Plata de McKinley, walled city MANILA the City of Churches THE WALLED CITY By Norbert Lyons If there is one feature that stands out among the many that arouse the interest of tourists in the City of Manila it is the many old and beautiful churches that have been erected by the Spaniards in all parts of the city. Under a local govern ment in which the Church was the controlling factor, it was only natural that much time, money and effort were expended in the erection of pretentious religious edifices. This is true not only of Manila but also of the provinces. Throughout the Islands, the priests and the monks of the Spanish orders have put up stately piles, often out of all pro portion to the size of the communities and the wealth of the people. Some of these architectural creations would do credit to old world capitals and their mere physical construction with the limited means and resources at the dis posal of their builders is little short of miraculous. In Manila, the oldest and largest churches are situated in the Walled City which until comparatively recent times was Manila proper, the country outside ot the walls having been incorporated in the municipal district within the last century. All these churches, except the Roman Catholic Cathedral, are ad ministered by the different religious orders, whose members are everywhere in evidence—brown-clad and bearded Capuchins, blue-gowned Franciscans, white-robbed Dominicans and Augustinians, and Jesuits clad in somber black. These priests and brothers are all welleducated, cultured men, who spend a good deal of their time in their conventos (monasteries) adjoining their churches, ’ engaged in study and research of various ; kinds. The University of Santo Tomas, the oldest educational institution in the Islands, and one of the best, with a history that antedates that of any American university, is administered by the Dominican fathers. Many of these monasteries are quite as interesting as are the churches. . Augustinian Church and Convento First in point of antiquity and interest is the Augustinian church, situated at the intersection of Real and General Luna streets. The first building, erected in 1571, was destroyed by fire. In its place was erected another church built of firmer material, but this was destroyed by an earthquake. Finally, in 1599, Juan Macias, a noted architect, began the present structure. On his death, the work was continued by the lay brother Juan de Herrera, son of the famous designer of the Miller Pbcte Dominican Convent Church of Our Lady, walled city, Manila, one of two great Churches in the Gothic style in the city. Madrid Escoria 1, the second largest church building in the world whose beauty was such that its architect gained clas sic fame for himself and country by his artistry. Young Herrera in Spain got into trouble over a woman and was condemned to death. Influential friends and relatives inter ceded for him and his sentence was commuted to banishment. He came to the Philippines and followed his father’s profes sion. Herrera also built the old bridge of Spain and the church at San Pedro Macati, where he was killed by a stone falling on his head during the construction work. Architecturally, the Augustinian church is of the peculiar Romanesquc-Renaissance style so common in Spain and her colonics of that period. It has no special artistic appeal, aside from its antiquity, and what'little it has is depreciated by the absence of one of the twin towers that originally adorned the structure. The east tower was demolished in an earthquake and has never been rebuilt. The body of the church is built to with stand the heaviest seismic shocks, with its great low arches that span the entire breadth of the building. The interior of the church is chiefly notable for its mural decorations, made by Alvcroni, an Italian painter, about 60 years ago. On cither side of the two side naves there are five chapels, each named after a saint and decorated ap propriately. The dimensions of the building are 231 feet long, 84 feet wide and 42 feet high. Beneath the beautiful hardwood floor lie the remains of some of the most prominent Spanish and native residents of the Islands, including those of Legaspi, Salcedo, Ronquillo, Lisarraga and other Governors General. Archbishops Guerrero, Serrano, Zamudio and Garcia are also buried here. The Augustinian monastery, the largest in the Islands, occupies a space of six square blocks interspersed with six patios or open spaces. Of most massive construction, with walls in places twelve feet thick, this convent is practically immune to earth shocks. At one time it housed hundreds ot friars; now some twenty odd occupy the huge structure. Its endless halls are lined with oil painting ot saints and martyrs, made by Filipino artists lor the most part. Some of these are interesting, but none are what might be considered distinguished works of art. They are poorly preserved and are rapidly falling to pieces. One of the sights of the convent is a huge well which on several occasions has saved the population of old Manila from drought. It also was used by the American troops during the early days 8 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 of American occupation. Its capacity is estimated by the Augustinian fathers at 65,000 gallons. Church of the Capuchins Two or three squares up General Luna street, just beyond Victoria street and close to the Delmonieo Hotel, stands the Capuchin Church cf Our Lady of Lourdes, the most modern of the Walled City churches. The Capuchins did not come to the Islands until 1886, when they established a mission and built a chapeliin Pasay. In 1892 Brother Bernardo M. de Cieza had an image of Our Lady of Lourdes made by a Filipino artist, Manuel Flores. This work of art, because of its beauty and religious significance, aroused much enthusiasm among the parishioners of the church, especially the women, and im mediately became the objective of pilgrimages and devotions, being credited with the power of curing bodily ailments. Finally, in 1897, it was decided to build a new church on the present site and Federico Soler, the architect, and Jose Garcia Moron, the engineer, were commissioned to begin work on the edifice. The following year the American troops came to Manila and there was great consternation among the populace, the people fearing a bombardment. The Superior of the Order, Brother Alfonso M. de Morentin, at the time the excite ment was at its highest pitch, took a solemn vow that the new church would be dedicated to Our Lady of Lourdes if the bombardment did not take place. The bombardment did not eventualize and on September 24, 1898, the church was completed. It is of a Romanesque style of architecture, in the main, with touches of Renaissance and other orders of dec oration. While small, it is very impressive, and when fully illuminated presents a brilliant appearance. It is a popular church among the ladies and its 10 o’clock mass is largely attended on Sundays. It is also the scene of many fashionable weddings, having a wealthy and exclusive congregation. Recoletos Church A short distance away, at the intersection of Recoletos and Cabildo streets, is the Church of the Recoletos or San Jose. The Order of Recoletos is one of the oldest in the Islands, its first representatives, 13 in number, having come her^ in 1606. They settled in what was then the barrio of Bagumbayan and on September 10, 1606, founded the first church, a crude structure, in whioh they placed the image of San Nicolas of Tolentino, now patron saint of the city of Manila, which they had brought from Spain. Here they also established their first monastery. They struggled on amid great hardships and in most abject poverty. Don Bernardino del Castillo, the leading Spanish executive of Manila, and his wife, Dona Maria Enriquez de Cespedes, moved by the poverty-stricken state of thie good friars, bought the present site and erected a church on it at a cost of 1*100,000. In 1645 an earthquake destroyed most of the original building and it had to be reconstructed as funds became available. The present facade dates from 1781. The earthquake of 1863 destroyed the roof which had to be rebuilt. The facade is rather more elaborate than that of the other churches, being adorned with Doric pillars and niches holding statues. The bell tower, with its numerous openings and niches, makes a picturesque feature of the exterior. It has five bells. The architectural style of this church is Spanish Romanes que with touches of Renaissance. The interior is typical of the Spanish churches of Manila, expept that it has a large distinguishing cupola. The reredos or altar screen, is partic ularly noteworthy because of its numerous sacred paintings and statues and its beautiful and intricate carvings. To the left of the high altar is a large chapel surmounted by a cupola. An old and quaint organ in the choir loft is worthy of inspec tion. In this church are buried Captain General Fajardo, who died in 1617, and his wife, as well as other distinguished Manilans of the early days. Franciscan Church and Monastery In close proximity is the Church of San Francisco with its Chapel of the Third Order of San Francisco, both facing a large stone court. The two churches are separated by the convent, one of the largest in the city. The front of this square is located at the intersection of Potcnciana and Solana streets and also faces San Francisco street. The First Franciscan monks to reach Manila arrived in 1577 and erected a small nipa house of worship. This was destroy ed by fire in 1583 and another of wood was constructed at the expense of Marshal de Rivera and Don Martin de la Rea. In 1602, Marshal de Rivera built a rubble church and convent, donning the gown of the order shortly afterward. In 1739 this group of buildings was destroyed by an earthquake and the present structure was erected. The tower was demolished in 1824 and rebuilt. The southern part of the main chapel and the roof of the church also suffered severe damage from an earthquake in 1863. This church owes much of its popularity and repute to a miracle which is reported to have occurred on October 3, 1603, when during the Chinese uprising Saint Francis is said to have appeared upon the city walls, defending the capital with a sword of flame. So impressed were 400 of the Chinese pri soners by this miracle that they immediately asked to be baptized and each and every one of them assumed the Chris tian name of Francisco. This story is taken from the annals of the Franciscan fathers published in 1863. The Franciscan Church is of rather massive outside ap pearance, the architecture being of a mixed style, with the Romanesque and Renaissance elements predominant. Greek pillars of the Ionic and Corinthian orders embellish the front. The effect is to make the church look larger than it really is. The altar screen, resplendent in silver, is truly impressive. The whole interior effect is one of massive simplicity. One of the images in front of the high altar, that of San Francisco de las Lagrimas, has an interesting history. It was originally {Please turn to page 13) Franciscan Convent Church in the Walled City oj Manila. Franciscans are the patrons of the Sta. Clara nuns, whose cloister in the walled city dates from 1621. Franciscans built many missions in the Bicol region and Samar. Oldest Christian fane in the Philippines: St. Paul and St. Peter, in the walled city, oj Manila in 1898 were signed in its vestry. Augustinian Convent Church' of Terms for America’s occupation January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 9 U. S. Navy Buys Philippine Domestic Sugar On December 15, 1936, the United States Navy supply department in the Philippines opened bids at Cavite Naval Yard for the purchase of three hundred thousand (300,000) pounds of refined sugar, that is, 3,000 bags of 100 lbs. each. The bidders and prices offered were as follows: Price per lb. Victorias Milling Co., Inc......................... P0.0689 Malabon Sugar Co., Ltd........................... 0.075 St. Louis Bakery: Domestic sugar........................................ 0.081 Foreign sugar........................................... 0.046 Insular Sugar Refining Corporation........ 0.0729 The Navy accepted the lowest offer for Philippine local manufactured refined sugar, that is, that from the Victorias Milling Co., Inc. at P0.0689 per lb. equivalent to U. S. 83.445 or P6.89 per bag of 100 lbs. net weight delivered in Manila as it was, in effect, P3.01 per 100-lb. bag lower than the foreign bid of f*0.46 per lb., taking into consideration the import duty of P5.30 per 100 lbs. net weight bag which should be imposed on the foreign sugar to be imported. The calculations are as follows: Foreign sugar bid, c.i.f. Manila (per lb.) U. S. $ F0.046, or per 100 lbs......................... 82.30 Plus duty: Philippine import tariff (for 99.6 degrees polarization) per 100 lbs........................ 82.635 Tare (weight of immediate container), say.................. 0.015 Pesos P4.60 Total import duty for bag of 100 lbs.net. 82.65 1*5.30 Foreign bid, total cost per 100 lbs. net bag, duty paid....................................... 4.95 Philippine bid (“Victorias”) per 100 lbs. net bag.......... ..................................... 3.445 9.90 6.89 Foreign bid (paying import duty of 82.65) exceeds Philippine local sugar bid by (per 100 lbs. net bag)......................... 81.505 1*3.01 Disregarding the Philippine import duty of 82.65 or P5.30 per 100-lb. net bag, the foreign sugar bid of P0.046 per lb. is, however, only approximately 66.76% of the Philippine bid of P0.0689 per lb. from the “Victorias”. The United States Army supply department in the Philip pines, on September 2, 1936, opened bids for 10,800 bags of 100-lb. net refined sugar and later accepted the lowest foreign bid of P0.0347 equivalent to 81.735 or 1*3.47 per 100-lb. net bag which was only about 45.12% of the lowest Philippine local sugar bid of 87.69 which was, at that time, also offered by the “Victorias”. In the above U. S. Navy bid, the local sugar offered at 1*0.0689 per lb. is equi- Per 100-lb. net bag valent to .........................................U. S. 83.445 P6.89 while the foreign bid of P0.046 per lb. is equivalent to.........................................82.30 P4.60 Therefore the local sugar bid exceeded the foreign bid (excluding duty) by.......................................................... $1,145 1*2,29 In the case of the U. S. Army bid on September 2, 1936, above mentioned, the foreign sugar bid of 1*3.47 (excluding duty) was P4.22 lower or cheaper than the Philippine local sugar bid of P7.69 per 100-lb. net bag. These foreign sugar bids bring home to us, in black and white the fact that foreign refined sugar can be produced and trans ported, cost plus freight, etc., and delivered in the Philippines at a total cost, varying at different times, from P2.29 to 1*4.22 per 100 lbs. cheaper than Philippine local refined sugar. They also go to show, regarding our great Philippine surplus sugar for export, that if the Philippines were to lose the dutyfree market in the United States after the ten-year Philippine Commonwealth transitional period, how helpless and hopeless it will be for the Philippines to produce sugar at a cost cheap or low enough to be transported, cost plus freight and other expenses, tc China or other foieign countries and compete with Java, Hongkong or other foreign sugar, refined or unrefined. At present, the Philippines is prevented from being flooded with foreign sugar by a tariff wall furnished by Act No. 3515 of the Philippine Legislature, amending paragraph 237 of the Philippine Tariff Act of 1909 which imposes an import duty of U. S. 80.025 per pound for raw 96 degrees centrifugal sugar, and U. S. 80.02635 per pound for refined sugar of an average polarization of 99.6 degrees, plus the same rate of duty for the corresponding tare or the “weight of the im mediate container.” Philippine Army Is New Economic Unit Now abuilding in the Islands, the Philippine army is at once an economic problem and factor. Modifications have occurred in the original plan, and no doubt will arise in the future, inasmuch as the situation glistens in novelty—and glitters with opportunity. Taking over Teachers’ Camp in Baguio, the Philippine Military Academy found the nucleus of a housing plant for the 4-year course leading to career officership. Though ad ditional buildings will be necessary when an extra 100 cadets are added to the 142 enrolled in 1936, an original outlay is spared. Present plan is to vacate during April and May so that Philippine teachers may, as before, enjoy their deserved rest and recuperation in Baguio’s ideal climate at nominal cost. The Academy vacated Camp Henry T. Allen which had been its home since 1908 as an institution turning out Constab ulary officers after a 3-year collegiate course. Into these grounds last July marched candidates for reserve officers’ training. The first group of 150 finished their preparation in September, were ready for assignment to trainee camps. Another 150 have just held graduation exercises at Burnham Park’s lower parade ground. Other reserve officers are avail able from college R.O.T. Corps and high school teachers’ training centers. Naturally the officering of the army has been the first step, but of great, importan.ee is the establishment of the trainees’ cadres with attendant costs. Thus far, faculty salaries and cadets’ subsistence have been the principal expenditures. The outfitting and subsistence of the 20-year-olds, whether 10,000 or 20,000, is a task both executive and economic. Auxiliary to the MacArthur plan of defense is Major-General Paulino Santos’ subsistence plan for trainees. Addressing the first group of probationary officers at Baguio last Septem ber, he outlined a scheme for combining modern instruction in agriculture and vocational lines with the trainees’ military service. To quote, “We evolved a plan to convert every army post and training cadre into a model agricultural station, with the immediate but secondary objective of reducing the maintena.nce of the army, and with the primary and more vital objective of making our people agriculturally minded in a modern way. I am pleased to say that that plan was endorsed by the military adviser, and it merited the enthusiastic approval of President Quezon, notwithstanding opposition from many leaders of thought in cluding even some of my own colleagues in the army, who openly expressed their doubts as to its practicability, observing (Please turn to page 46) 10 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 193 7 The American Chamber of Commerce OF THE Philippine Islands (Member Chamber of Commerce of the United States) DIRECTORS: E. M. Grimm Verne E. Miller S. F. Gaches E. Schridieck H. M. Cavender ALTERNATE DIRECTORSi L. K. Cottermao A. G. Henderion D. L. Cochran E. M. Bachrach SECRETARY: C. G. Clifford EXECUTIVE COMMITTEE: P. A. Meyer, Chairman C. S. Salmon COMMITTEES RELIEF COMMITTEE: C. G. Clifford, Chairman . MANUFACTURING COMMITTEEi: X. B. Day, F. H. Hale C. A. Kotler D. P. O’Brien LEGISLATION COMMITTEE: E. E. Selph, CW-w. C. S. Salmon L. D. Lockwood C. G. Clifford FINANCE COMMITTEE: Verne E. Miller, Ciarr^a, A. G Henderson FOREIGN TRADE COMMITTEE: H. B. Pood, Cia/rnan PUBLICATIONS COMMITTEE i P. A. Meyer, Chairman C. S. Salmon Roy C. Bennett BANKING COMMITTEE: W. Douglas, aarraran E. E. Wing J. R. Lloyd RECEPTION, ENTERTAINMENT and HOUSE COMMITTEE: C. S. Salmon, Ciarrman SHIPPING COMMITTEE: E. M. Grimm, Chairman H. M. Cavender INVESTMENT COMMITTEEi P. A. Mever, Cha.rman C. S. Salmon J. C. Rockwell America’s Philippine .... {Continued from page 5) Now for Singapore’s editorial: Boom Dangers (Reprinted from Singapore Free Press) However poorly it may have started, the year 1936, so far as Malaya is concerned, seems to be going out in a blaze of glory, if we are to judge from yesterday’s issue of the Free Press. In the first place, we had the announcement that after a secret session the Siamese People’s Assembly ratified the new tin control scheme, and with it goes that final lingering doubt of a last-minute hitch. Now the barometer is “set fair’’ in that industry for such period of time as the I.T.C. may decide should constitute the life of the new scheme, a period not likely to be less than three and not more than five years. On the same page we had an account of the frenzied scenes on the London Rubber Exchange as a result of the commodity topping the elevenpenny mark and similar conditions were reproduced in local markets, filling all concerned with the highest hopes of a new era of prosperity to compensate for the lean years experienced in the past. To revert to the tin industry, yesterday’s Free Press reproduced the December issue of the Hague Statistical Bulletin of the International Tin Research and Development Council, showing that for the twelve months ended October, 1936, apparent world consumption showed an increase of 13,900 tons over the total for the preceding twelve months, and though this was offset by an increase in production, which still exceeded consumption by 13,300 tons, world visible stocks have increased by only 3,130 tons in the same period. These figures, regarded more as trends, can there fore be safely considered as “bull” factors for the tin industry and with the metal at present prices that is evidently the interpretation put on them by the market. To complete the happy picture, Tuesday’s Free Press contained the latest Malayan trade figures, showing that a spectacular rise had taken place in the total value in Novem ber, compared with the previous month and the corresponding month of last year, and the cheering estimate that the total trade for the year will exceed that of 1935 by at least $90,000,000. There are only two or three sources from which this rush of prosperity can come, namely, increased prices for tin, rubber and copra, and while rejoining at the phenomenon it is wise not to lose touch with reality and try to appreciate the dangers inherent in the situation. These dangers are very real for it cannot be pretended that tin at over £230 a ton and rubber heading rapidly for one shilling a pound constitute fair prices, or at least prices which leave only a modest margin of profit. It seems a long cry now from those black days when tin was in the region of £100 per ton and rubber was under twopence but those who recall them will also remember the pathetic eagerness with which we looked forward to tin round about £150, while rubber at sixpence seemed almost unthinkable. Now these figures have been far surpassed and still many people arc not satisfied. While there arc dangers in attempting to assess fair prices for tin and rubber, we believe that for the former something between £180 and £200 per ton provides a generous margin of profit for efficient producers and ninepence a pound at the most for rubber will ensure a fair return on capital. It can be said—without begging the question as to whether they could do anything but accept the situation—that manufacturers have been tolerant about the recent rises in these two commodities. They realised that the slump figures repre sented an uneconomic price for producers and, so far as it is possible to judge, they have accepted the increases philosophi cally and made the necessary adjustments. But now the feeding must be gaining ground that at present prices they are being “squeezed”, and it is hard to avoid sharing the same conviction, however nice it may be for Malaya to sit back and enjoy the process. Malaya has had experience in the past of the rude shocks which can come to those who persist in “squeezing,” and while it may be difficult at the moment to see where they can come from, economic laws and other factors, such as political pres sure, have a habit of keeping a rod in pickle, and just as the abandonment of the Stevenson Scheme came like a bolt from out the blue, so might some other unpleasant surprise be lurking in the background, one which cannot even be foreseen or conceived at the moment. For instance, we find that exports to the United States in November were $34,922,000, compared with $27,034,000 in October and $17,732,000 in November of last year. How are we to convince Americans that much of that increase docs not represent “squeeze,” and that it is really the result of an expansion of trade? Again, the latter country has reason to feel aggrieved when in addition to any soreness she may feel at a “hold up” on the part of Malaya— among other producing countries—we only took $738,000 worth of goods from her in November. These are disturbing reflections and it is wise to consider them squarely and not ostrich-like, hide our heads in the sand of a shortlived boom. Malaya, it should be emphasised, does not want another boom of the kind we have had in the past. They have proved more of a curse than a blessing and have always contained in themselves the seeds of their own des truction. Before it is too late the two controlling bodies, the I.T.C. and the I.R.R.C., should take steps to keep prices with in reasonable bounds. They have the weapon and it is hoped they will not hesitate to use it ruthlessly and save the tin and rubber industries from their own folly. January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 11 Science, Munitions Makers, And Civilization “Though he slay me, yet will I trust in him” (Job 13: 15)— such, in the language of the Sacred Scriptures, seems to be the attitude of the greater part of the scientific West towards science; science, with its inventions and constantly improving means or instruments for efficient homicide and destruction, has been continually slaying them and yet the Westerners, and some Eastern adepts, keep on trusting and placing im plicit faith in it, believing in “if you want peace, prepare for war”, in the improved armaments and more and more destructive bombs to wipe out whole cities of neighbouring countries, and in doing a man first as they think he would do unto them. Among the greatest promoters of wars and opponents of peace, national and international, are the “organizations engaged in the manufacture or trade in arms”. During the Great European War of 1914-1918 and before the United States joined the Allies, certain American munitions interests were criticized for selling munitions both to the Allies and the Central Powers. The then ex-Prcsident Taft made a public ized statement to the effect that any nation at war should be entitled to freely buy arms and ammunitions wherever it could obtain, otherwise almost every nation in peace would have to accumulate and store up great quantities of arms and ammunitions and thus spend enormously to the detriment of the economic welfare of the people of such nation. By resolution of April 12, 1934, the United States Senate appointed a Special Committee to investigate the operations of “Organizations engaged in the manufacture or trade in arms”, and to inquire into the desirability of creating a gov ernment monopoly in respect to the manufacture of arma ments and munitions. The Committee held its first session September 4 to 31, 1934, in Washington and produced evid ence confirming most of the abuses charged against the private munitions industry in the past. The munitions corporations were private in character, operating for profit, and controlled the source of supply from which the majority of governments must meet their national defense needs. They therefore occupied a dual role. On the one hand, they were private business enterprises, selling a commercial product in the world market; on the other, they were regarded by their own governments as an essential part of the national defense system. The evidence brought out by the Senate Committee was summarized by the Foreign Policy Association as disclosing the following conditions: (1) The national policy, as expressed in arms embargoes or international treaties, has been defied or circum vented by private armament interests operating for profit. (2) Bribery is generally accepted as a necessary clement in the promotion of armament sales. (3) Selling arms simultaneously to both sides in time of war and arming revolutionary and government factions in civil wars are common practices among armament firms. (4) Armament races between friendly countries have been stimulated by armament firms working in competition or in association with other companies at home and abroad. (5) Lobbies organized by armament firms have supported military and naval appropriations and opposed embar goes and other restrictions on arms. (6) British, German and American arms companies arc linked together under patent and sales agreements which provide for exchange of secret processes, divi sion of profits and division of sales territories. (7) National defense policies and foreign policies of gov ernments Jire influenced, if not hampered, by secret agreements between private arms interests in different countries. (8) Agencies of the United States government encourage the promotion of foreign armament sales. The United States War and Navy Departments release military designs to private armament firms and served as sales promotion agents in foreign markets. (9) Under existing laws and regulations, the United States government is powerless to control the shipment of arms to warring nations in violation of embargoes, or to prevent mislabeling of shipments to foreign countries. Bribery, although deplored by armament company offi cials, is apparently regarded by arms salesmen as an essential element in the sales of war materials abroad. The payment of special “commissions” to “persons of influence” is cus tomary. Over a period of 11 years from 1919 to 1930, a cer tain Electric Boat Company paid commissions totalling U.S.8766,000 to Sir Basil Zaharoff whose munitions dealings in Europe covered half a century and whose services were to “do the needful” in certain specific dealings. The Senate investigation also revealed the fact that, up to that time (September, 1934), large scale manufacture of war materials was limited to some ten (10) industrial countries. Armament firms in these ten countries supplied more than 93% of the total world exports of arms and ammunition, while more than 50% of the total exports come from three countries—United States, Great Britain and France. DIXOKOLA I The new refreshing, stimulating beverage you and your friends will enjoy—made by ISUAN, INC. Tel. 5-73-06 • WE DELIVER IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 12 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 The Uncut Pages Fresh from the bookshelves are the gifts of discerning friends who bestowed printed treas ures, books new-published or reprinted after successfully passing the test of time. Such as these are: Cradle of Life, by Louis Adamic Science of Living, by Alfred Adler San Felice, by Vincent Sheehan Notebook, by Mark Twain With title so gentle, the Adamic book is a torrent of first-person subjective writing, reach ing far back into childhood remembrance. These memories tottered between life and death, for the protagonist was a love-child farmed out to rude Slavic peasants who in their own bitter battle for mere existence felt no compunction over the death of such a foundling, when its subsistence money failed to arrive. Even among them, though, fondness for this little lad grew. More than once the gnarled hands of Mammadora shielded him from danger and death. Yearly he was dressed in good clothes and taken to a photographer in the nearest town. The significance of this treatment grew, too, in the lad’s mind. Then, one day, a splendid carriage drove up to the farm gate, and from it stepped a fine gentleman. But, alas for fairy stories, this was not his father. The visit led to the slow unfolding of the mystery, however. Fathered by the Crown Prince of AustriaHungary, renounced by the noblewoman who gave him birth, the illegitimate princeling was yet to have his castle and estate though the intervention of a progressive nobleman who hoped that this sensitive and thoughtful boy might supplant the legal heir, unfit for Emperor ship. Such a tale is old, but Adamic’s telling is new. Realist the author is, and his hero never climbs to tangible power. He does conquer—himself. After an accident which cripples him for years, he recuperates under the care of his beloved Mammadora. Grown now, student of culture and the humanities, he can yet find harmony in the peasant family which took him to its shelter for gold, only to find him suddenly a touchstone of emotional life. His step-brethren, with a little schooling and Heads dr Tails YOU WIN! 1. If you live to old age, Life Insurance will guarantee freedom from care. 2. If you should not live, it will guarantee the con tinuance of the good things of life to your family. E. E. ELSER AGENCY KNEEOLER BLOG. ■ MANILA E. L. HALL. MANAGER TEL. 2-15-04 much earthly courage, are watching the dawn of a fairer light for their kind. Turning away from all wish to grandeur and power, the nobleborn casts his lot with them. Written for the layman, published in inex pensive editions, the Adler Science of Living furnishes a fascinating sketch of the famed psychoanalyst’s theories. Departing from the Freudian path, Adler long ago embarked on his study of the individual as a unit of society. The three domains of occupation, gregarious activity, and domestic circle—to summarize rudely what Adler so carefully and clearly sets forth—interweave the mental fabric. They are strongly influenced by the pattern set in childhood, an apperceptive plan which, deeply grounded in the subconscious, bears on the grown-up’s action. To illustrate: if the subject is anti-social, perhaps the case history develops that he was an oldest child in a family where subsequent children received the preponderance of parental attention. Rebuffed, he withdrew from the others and thus was formed the habit of self isolation. In all situations involving other human beings, he then reacts with timidity. Latent are the possibilities of a richer personal ity; confidence slowly-gained through directed effort will remake the individual. Childhood remembrances and dreams are part of the Adler data in studying a subject, for they indicate the apperceptive plan. Valuable for parents, teachers, and whoever deals professionally with other humans, this or another of the Adler volumes is a worthy invest ment. The Lady Sanfelice of an old Italian family didn’t know Voltaire from Virgil, but she fell in love. And the fate of Italy swerved from royalism to republicanism. Sheehan attempts to reconstruct the ducal scene from the political and international viewpoint and to show the cosmic accident by which national direction can be established due to entanglements of minor personages. Solidly written, and no doubt historically sound, Sheehan’s first novel (Per sonal History, though narrative in movement, is autobiography) will interest those having a flair for European history of the nineteenth century. Lest we forget, that great American gentle man—Mark Twain—wrote many another piece than Tom Sawyer and Huckleberry Finn. For instance, his American Claimant is a complete chuckle, Innocents Abroad a convulsion of risi bilities, Connecticut Yankee riotous, and Joan of Arc staunchly eloquent. Given to a range of laughter from mere punning to barbed irony, Twain kept a full notebook of impressions and plot-ideas, as well as of family happenings. Edited by Paine, the Notebook contains such items as the famous cable from England, after American papers reported the writer’s death. "Rumor of my death is greatly exaggerated.’’ Numerous instances of mental telepathy between Twain and his helpful wife are jotted down. Clown or scholar by turns, but always fittingly, Twain was a gallant friend, enemy to no man but to many of “man’s inhumanities to man”. His carefully-guarded set of leather-bound scratchbooks were his closests confidantes, nor does his sterling worth suffer in the reading. ASHAMED op yoilt! FLOORS? No need to be ashamed of your floors when you can renew them so quickly and easily with QuickStep, the modern color coating for linoleum, wood, and cement floors. Any one can have a smooth, lus trous floor with Quick-Step. This new floor coating is waterproof... and as nearly wear-proof as any thing you’ve ever seen or tried. Come in and let us show you how easy it is to use Quick-Step and have nice floors again! General Paint Corporation PHILIPPINES, INC. 12th 13th & Atlanta Sts. Port Area, Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 13 Manila, City of Churches (Continued from page 8) in the suburban home of one Alonso Cuyapit, a Filipino, who had it standing on a small stand mounted on wheels. In 1645, so the story goes, the city was shaken by a series of earth quakes beginning on November 30. Soon after the seismic disturbance began, tradition says, this image of its own accord moved from its accustomed place to a window facing Manila and began to shed tears. Four times Sr. Cuyapit brought it back to its place and four times it returned to the window and wept copiously, until the earthquakes ceased. This is set down in the Franciscan annals above referred to. Since then the event is celebrated annually on December 4. The organ in this church is over 200 years old and has always been considered a gem by antiquarians. There is nothing of very great interest in the Third Order church or chapel, its exterior being a rather bizarre mixture of Italian Renaissance and Greek styles, though the effect as a whole is quite pleasing. Only the lower portion of the facade is of old construction, the upper portion being modern. This chapel is popular among the people of the district as a place of special devotion. DoMiNtCAN Church Proceeding down calle Solana, we come to the Dominican Church and Convento, in front of which is a spacious and wellkept yard planted with trees and shrubs. At the side of the church is the beautiful Santo Tomas Plaza. We at once note the fact that this is the only Gothic church building in the Walled City, and it is of a particularly pure Gothic type.. This is the fifth building of the Dominican Church. The first was put up in 1675 and was of wood. It was destroyed by fire and in its place was erected an edifice of strong material, which, in turn, was destroyed, by an earthquake. It was suc ceeded by a third building at the beginning of the last century, which was also demolished by an earthquake. The same fate visited the fourth structure, erected in 1863^ The present church was finished in 1888 and is probably the second largest in Manila, the first being the Catholic Cathedral. One of the noteworthy features of this Church is an image of the Virgin on the center facade over the entrance, in front of which a light is kept burning nightly. This image was brought here from Mexico in 1587 and has been in the same position ever since, with the light burning in front of it. The groined arches, sculptured capitals, stained glass windows and rich but simple decorations combine to give the interior a very artistic and yet. deeply religious atmosphere. This church has one of the finest organs in the Islands. It is a double instrument with a full set of orchestra stops and was brought here from Spain, having been specially constructed. The chapel of Our Lady of the Rosary is the most famous and most beautiful portion of this church. The image is considered a rare work of religious art and is held in high reverence as the Patron Saint of the Islands. This statue is reputed to have saved the Islands from a Dutch invasion in 1646. The annual fiesta of Our Lady of the Rosary as cele brated at this church is said to be the gieatest in the Philippines. It takes place in the month of October. When the present church was erected the site was little more than a swamp, the moat surrounding the wall at that time being close to it. The fathers who inspected the site had to make their way in bQats. Adjacent to the church is the Dominican monastery, from which the feminine sex is strictly barred. This institution derive^ particular importance from the fact that it is the central headquarters of the Order in the Far East. Educa tional work appears to be the specialty of the Dominican fathers, who, as has already been mentioned, administer Santo Tomas University, as well as many other institutions of learn ing such as San Juan de Letran College for boys and Santa Catalina College for girls in Manila. They also have very strong representation in the more important provinces. The Catholic Cathedral Walking around the front of the Dominican church, through the beautiful Santo Tomas plaza and past the Ayuntamiento (Insular government building), we reach the Cathedral of the Immaculate Conception, the largest and most imposing church edifice in the Islands. It fronts on Plaza McKinley, in the center of which is the statue of Don Carlos de Bourbon. Its architecture is of Byzantine style, with numerous modifica tions. The three large arched doorways are reminiscent of §t. Mark’s, Venice. It has a large dome, whose gilt top is one of the first sights that attract the eye of the traveler as he ap proaches Manila on board ship. The high arched interior with its groups of quadruple co lumns, elaborate decorations, exquisite chapels, beautifully painted dome and spacious .nave is very impressive. The sacristy is especially beautiful and contains some of the richest vestments and religious paraphernalia to be found anywhere. The present Cathedral is the fourth since the dedication of the first building on December 21, 1581. This was destroyed by an earthquake in 1600 and was succeeded by a new building, which was opened in 1614. An earthquake destroyed this edifice in 1645 and a third structure was dedicated nine years later, only to be razed to the ground by a seismic shock on June, 1863. The prqseijt.Cathedral was completed in Decem ber, 1879. Jesuit Church Close by, on calle Arzobispo and near the Archbishop’s palace, stands the Jesuit Church, a gem among the many beautiful churches of the city. Owing to the close proximity of other buildings and the narrowness of the street, its exterior architectural beauties are not as apparent as they would be were the church viewable from a distance. However, it is its interior that constitutes its main attraction and a most beau tiful and pleasing effect does it produce. In style this church is Graeco-Roman of a late date and much credit must be given to the architect, Don Felix Roxas, for his exquisite design. The work of construction was begun by Senor Roxas in 1878 and completed by Father Francisco Riera in 1889. The interior is a most haimonious blending of countless artistic features and the effect is very pleasing. To the writer, this is the most beautiful church in Manila, so far as the interior effect is concerned. A number of good paintings by Spanish artists are hung at different points and there is an excellent painted wooden statue of Christ on the Cross executed by a Filipino artist which has been placed in the church recently. The carving in this church is of partic ular excellence, the pulpit being the best exemplar of this sjpeejes of craftsmanship. To the rear and one side of the altar is an underground crypt in which are stored the remains of all the Jesuit fathers who have died in the Islands. A marble floor slab bears the names of the most of the departed and a new slab will be. placed in the wall for additional names. Access to the crypt is gained by lifting a floor slab and descending a stairway. The re mains are stored in walled-up niches along the sides of the crypt. In this church can also be seen a fine collection of antique and modern vestments of genuine cloth of gold and silver, as well as many highly artistic and valuable sacred vessels. A monstrance of solid gold studded with precious stones is valued at P30,000 alone. The first Jesuit church was built in 1727 on calle Palacio, then calle Real. It was destroyed by an earthquake in 1852. It was succeeded by the present church. Like the Domini cans, the Jesuit fathers are educational specialists and the Ateneo de Manila, next door to the church, is a famous se condary institution, now headed by Father Francis X. Byrne, an American member of the Order, who is assisted by a staff of American teachers of the Order. Father Byrne is also rector of the church. The museum of the Ateneo is reputed to be the best in the Islands and is well worth a visit. This completes the round of Walled City churches and they should be visited in the order named if economy of time and effort are desired. The antiquarian or student, however, can find a veritable treasure house of church annals, history, tradition and theology in the libraries of the monasteries con nected with mpst of the churches and the good fathers are only too pleased to furnish whatever information is desired, or assist in its gathering. 14 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 LETTERS Our Own Letter from the Dust Bowl better chance. It seems impossible to dispense with that little word hope, even though at times we are conscious of the pain of hopes too long deferred. Soon after my last letter was mailed, Will suffered a painful accident which might easily have proved a permanent handicap. While he was unloading a barrel of coal oil, it slipped and fell, bruising one ankle severely and, I still believe, fracturing some of the smaller bones. At that time the dust storms were at their worst. For a while it seemed that perhaps, regardless of desire, we could not go on. There were many days, as I struggled to care for the stock, when I could not see from one of the farm build ings to another through the blinding, choking clouds. Dust was piling up every where, filling gateways, burying machin ery, drifting around the buildings, making the less traveled roads almost impassable. The mere matter of getting milk or even water to the house in a condition fit for use presented a difficult problem. Will improvised a crutch from a short length of pump rod and after the first few days helped all he could to direct and carry on the outdoor work, actually crawling on hands and knees the length of the barn left to break open the bales of Colorado alfalfa and get it ready for me to drop into the mangers. In spite of his being almost compelled to do the things he shouldn’t have done, the injured ankle slowly regained its shape and strength and the recovery is one thing to be grateful for as we look back over a difficult year. The wind and dust continued without much abatement through March and April and early May. The first sign of any hopeful change came with a light rain on May 17 though the following week of high winds destroyed most of the benefit. By this time any lingering hope of wheat production in our vicinity had faded away, though limited areas in the ex treme eastern part of the country returned small yields. The gound was too dry and hard to permit satisfactory preparation for spring planting, though Will had done some listing and “chiseling” as well as the condition of the soil would allow. On June 4 as if to confute all theories about the diversion our moisture-bearing winds to Greenland and such attempted ex planations of the long-protracted drought, we had one tremendous rain—a regular “gully-washer”—when two and a half inches poured down in half an hour. The unworked soil could not absorb it fast enough, especially as there is strong ten dency for the fine wind-ground silt to coat over the surface, closing the pores of the soil as if with a thin cement and preventing natural penetration. So much of this precious moisture proved ineffective for actual crop production, broke over contour and terrace lines and finally formed several “playa” lakes in the neighborhood in basins which have no outlet. One of our neighbors now plans to pump same of this still standing water back upon his fields. During the fall these temporary lakes furnished sanctuary to immense flocks of seagulls, possibly driven inland by storms along some coast or attracted by the hosts of grasshoppers which had helped to complete the damage done by the drouth. It was a new and delightful interest to us to watch the strong, im petuous flight of these gulls as they skim med low over our fields or massed in silvery shimmering clouds against the darkening horizon as they returned at nightfall to the sheltering lake. All at once they were gone and we saw them no more. That heavy rain on June 4 before a seed was planted was our only source of moist ure through the growing season aside from two or three drouth showers which scarcely dampened the surface. As you asked about the contour farming, you may be interested to know that we are more than ever convinced of its usefulness for our locality. Where our terrace lines remained unbroken and held the water back to soak slowly into the soil, the effect upon production was noticeably beneficial. From one small field where the water had stood, which was sowed to January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 15 cane as soon as the ground was di v, wo were able to save two fair cuttings in August and October. From still smaller areas of maize along the terrace lines we threshed out about forty-five bushels of grain for chicken feed. This also had the distinction of having matured upon stored moisture without t^Jbenefit of additional rainfall. On the other hand where our terraces broke in the swift onrush of the flowing water, there was slight penetra tion, the ground dried quickly and seed failed entirely to come up. It seems particularly unfortunate that the well-devised plans of the Department of Agriculture looking toward the control of soil erosion should have had so little chance for a fair trial. Inducements of small acreage payments were offered and widely accepted for cultivation on con tour lines with the provision that all forage should be left on the ground for cover, though matured grain might be gathered. In some places the plans worked out as desired. The fallen stalks and leaves should serve a double purpose by providing protection and by beginning to restore to the soil the moisture-conserv ing humus, so much of which has been wasted in recent years. But in very many places, the seed never sprouted and the bare ground is still exposed to the destructive work of the wind. Where the deep listing has been let undisturbed, it should help to reduce wind damage. In our judgment drilled crops of millet, cane or Sudan grass with their closer rooting and thicker stubble afford an even better safeguard against erosion than the listed crops. But they are expensive to plant and the millet and Sudan grass are especially attractive to grasshoppers. So all sorts of things must be considered. A few families have removed from our neighborhood during the spring and sum mer but most of those who held out through the dust storms are still here, working along various lines toward their individual hopes for the future. There is no cons traint and little agreement as to the best methods to pursue in attempts at recovery. The planners, however, might be divided into two large groups, those who would rely upon improved cultivation to conserve every bit of natural rainfall, and those who believe in the possibility of rather ex tensive irrigation by pumping from deep wells. The first group includes the adherents of contouring and terracing methods and also those who abhor the crooked lines and inconvenience of that type of farming but would seek to gain similar results while keeping their fields square and their rows straight. These people are placing much reliance upon the further development of the so-called “basin-type” lister, which has a special device for dumping little dems every ten or twelve feet across the furrows, thus preventing run-olTof water in any ordinary rain. Each irrigationist has his own pet plan {Plfiixc turn to page /,;>) LIQUEUR BONBONS and DELICIOUS ICE CREAMS are our SPECIALITIES ... ASTORIA Swiss Confectionery and Tea Room 106 Escolta NOW,'.’, TIME to buy Commercial Stationery We have the largest and most varied Assortment of Blank Books and Office Accessories in the Far East. No other House carries bigger stocks of— Ledgers Journals Cash Time Books Trial Balance Stock and Transfer Books Columnar Books, 2 to 36 Cols. Mining Field Books Transit and Level Calendars 1937 Diaries 1937 Columnar Pads Brief Cases Rubber Chair Cushions Order Books Drawing Instruments Slide Rides We carry only merchandise of recognized standard quality Philippine Education Co., Inc. Retail Store — 101 Escolta Inks and Paste Carbon Papers Papers and Pencils Typewriting Ribbons Envelopes Folders—Binders Blotters and Pads Inkstands and Wells Pen Points Pen Holders Files-Clips Waste Baskets Desk Baskets Engineer’s Scale Desk Glass Call Bells Perforators and Punches Memo Books IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 16 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 Celebrating Paramount’s Silver Jubilee for Adolph Zukor Capitol Theater Now Luzon Stevedoring Co., Inc. Lightering, Marine Contractors Towboats, Launches, Waterboats Shipbuilders and Provisions SIMMIE & GRILK Phone 2-16-61 Port Area When To Stop Advertising When every man has become so thoroughly a creature of habit that he will certainly buy this year the same products he bought last. When younger, and fresher and spankier concerns in your line cease starting up and using the newspapers in telling the people how much' better they can do for them than you can. When nobody else thinks “it pays to adver tise." When population ceases to multiply and the generations that crowd on after you, and never heard of you, come on. When you have convinced everybody whose life will touch yours, that you have better goods and lower prices than they can ever get any where outside of your store. When you perceive it to be the rule that men who never do and never did advertise are out stripping their neighbors in the same line of business. When men stop making fortunes right in your sight, solely through the discreet use of this mighty agent. When you can forget the words of the shrewd est and most successful men concerning the main cause of their prosperity. When you would rather have your own way and fail than take advice and win. When you want to go out of business with a stock on hand. When you want to get rid of the trouble of waiting on customers. LET US HELP YOU WITH YOUR ADVERTISING PROBLEMS Manila Daily Bulletin ADVERTISING SERVICE DEPARTMENT N RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL OF COMMERCE JOURNAL AMERICAN CHAMBER Testing Placer Diggings with Sluices •----------------------------------- ----------------------------------------------Comprehensive Philippine Mining News Up to Date ORE TESTING • Complete equipment is available in the Marsman laboratories for every kind of ore test ing. Experienced metallurgical engineers personally supervise such test work, and from it make (low sheets and design mills. • Ore testing; mill design and construction: mine and mill operation; and sound manage ment are important features of the complete service which Marsman and Company offers the mining industry of the Philippines. • No better examples of the efficiency of this service can be presented than United Paracale and San Mauricio, the two latest gold producers in the Philippines to become divi dend-payers. The entire work of exploration, prospecting, development, and mill planning and construction for both of these companies was done by Marsman and Company in a remarkably short time and with remarkable success. • Further information upon request MARSMAN COMPANY, INC. MINE MANAGERS AND OPERATORS Examining and Consulting Mining Engineers Insular Life Building -Manila Philippine Blanches Baguio, Mountain Province y\, Paracale, Catnatines Norte Surigao, Mindanao European Office London, England SOLE AGENTS FOR PENNSYLVANIA PUMP AND COMPRESSOR COMPANY RECENT ORDERS PLACED WITH US: PALIDAN-SUYOC DEEP LEVEL TUNNEL CO. 1—19X11X14" COMPRESSOR ITOGON MINING CO., INC. 1 25X14X16" COMPRESSOR UNITED PARACALE MINING CO. 1 18X11X14" COMPRESSOR SAN MAURICIO MINING CO. 1—18X11X14" COMPRESSOR hronous Motor Driven Air Compressor. YOUR INQUIRIES ARE SOLICITED! KOPPEL (PHIL.) INC. M A N I L A ILOILO IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 17 Albay International Consolidated Mining Association Under process of organization and later for INCORPORATION 330-332 Crystal Tel. 2-34-49 Arcade, Escolta P. O. Box 2068 MANILA ORGANIZED for the purpose of exploring and acquiring MINING CLAIMS by location and patent, by lease or purchase, and to engage in mining exploration and in mine development and exploitation, as well as in other activities, commercial or industrial, tending to of the PHILIPPINES. o. Hon.^SANTIAGO> ARTIAGA, C. E. JVLIO FRANCIA, C. E. & Minim; ’“(CHy'Assessor, Manila) Member NATIVIDAD TRIAS DE FRANCEA. Member VICENTE PADILLA, Trcasurcr-Tr Management &• Administration V. PADILLA, C. P. A. Managing - Comptroller TRY NOW CCCCNAS TAEACALEKA PHONE 2-25-77 © Antamok Goldfields Mining Company 0 © 0 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 18 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 2 and 4 Plaza Moraga P. O. Box 25G9 Manila Stock Exchange Members Alegre & Company CAldecoa* Company STOCKS and BONDS Stock & Bond Brokers 40 Plaza Moraga Manila, Philippine Islands CARLOS ALEGRE 0FF,c7/9L|E2PH0NES ,u Escoha / 2-87-24 RAMON ALEGRE 2-29-13 p. 0. Box 2005 Telephones 1 2-81-65 ( 2-85-62 JESUS ALEGRE Sit MAMLA P. O. Box No. 2053 Exchange 2-81-12 Angel Padilla & Co. H. E. BENNETT & CO. STOCKS and BONDS 3rd Floor Burke Bldg. Branches: STOCKS and BONDS 125 Escolta Iloilo, Iloilo P. O. Box 1471, Manila Bacolod, Occ. Negros 12-18-34 2-18-35 TELS. relS* 2-18-36 2-24-51 \2-18-37 2-24-52 2-33-30 53 ESCOLTA Telephone 2-10-51 Private Exchange with Direct Connection to Stock Exchange Max Kummer & Co. STOCKS and BONDS 9 Plaza Moraga P. O. Box 1458 MANILA Tels. 2-15-26 2-15-27 2-15-28 Exchange 2-15-29 OVEJERO & HALL BROKERS CORRESPONDENTS IN NEW YORK — LONDON — HONGKONG — SHANGHAI IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January. 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 Looking Back Over 1936 By Ralph Keeler Steady and substantial growth has marked Philippine min ing during the past year. This growth, measured in terms of gold production, was about 33-1 3 per cent; the 1936 output was 1*44,421,000 as compared to 1*32,911,353 for 1935. The number of gold-producing plants has been increased from 13 to 19; the monthly tonnage treated in mills has been upped from about 132,000 in December 1935 to about 215,000 for last month. More important, perhaps, than gold production has been the declaration of dividends by 16 companies during the year, totalling nearly 1*20,000,000. During 1935 six mining com panies paid dividends amounting to P12,528,589. Not all of the companies who declared dividends in 1936 were mining operating companies; two, Gold Shares and Syndicate Invest ments, were investment organizations, while one, Marsman Investments Limited, was the holding company of a mine operating group. Gold mining continued to be the leading branch of the in dustry, and will undoubtedly hold that position for many years to come. There is no reason to believe that any other phase of mining will even approach gold in importance or in value. This year will probably see the amount of gold produc ed increase to around 1*55,000,000. Predicting gold production is pretty much guess-work, .of course, but the expansion plans now being carried on, and the likelihood of several new plants coming into operation, makes the figure given above seem reasonable enough. The Cham ber of Mines of the Philippines has predicted a gold output of 557,519,230 for 1937, and of 1*60,400,230 for 1938. These figures are based on estimates made by the companies them selves, and often represent what would be produced under ideal conditions. For example, the estimated production for 1936, as compiled by the Chamber of Mines was around P45.,200,000 —excluding East Mindanao and Big Wedge—or nearly P3,000,000 more than the actual output. Although the base metal industry—and by that general term we include chromite, copper, manganese, iron, and all other metallic products is not likely to threaten the supremacy of gold in value to the Philippines, the increased interest in this phase of mining has been of great importance during i936. Chromite is by far the most important mineral product of the Philippines with the exception of gold. 1936 saw Benguet Consolidated bring the Florannie deposits of high-grade ore into production, and develop the Masinloc deposits of lowgrade to the stage where contracts were completed for 1937 deliveries. The Florannie chromite is going to the Union Carbide Company of Pittsburgh, and about 100,000 tons, of it will be shipped. Test work carried on in the United States has proven that the Masinloc ore is suitable for metallurgical uses. So far, announcement has been made by Benguet of one contract for a relatively small amount of this ore. There is no reason to believe that a market will be lacking. It is generally believed that negotiations are being carried on with the United States government for a sizeable part of this ore to be used as a war material. Since the United States lacks adequate supplies of chromite, which is one of the most im portant of the strategic minerals, it does seem reasonable that an effort will be made to insure an ample supply in case of war. Japan has shown considerable interest in Philippine chro mite as well as in Philippine iron. Several contracts for small amounts of chromite have been concluded here. The only exporter of iron ore, the Philippine Iron Mines, shipped more than 500,000 tons of high grade orc to Japanese ports last year; the 1937 output will probably be substantially more. Copper and Manganese deposits are now being developed, and shipments will be made this year. Most important in the base metal industry is the fact that Japan needs all metals badly, and that the Philippines is the logical place for her to buy them. The European markets will absorb part of the Philippine output, but freight charges add so much to costs that it is difficult for local companies to compete abroad. There is obviously little or no market for copper, manganese, zinc, or lead in the United States, well supplied at home. Amalgamated Minerals, recently-organized firm of ore buyers, is doing much to develop the base metals in the Philip pines. The Montilla interests control several copper and manganese properties. The Marsman interests are worked on a number of properties which may be brought into produc tion this year. Nielson and Company has ordered a mill for the Lepanto copper property north of Baguio, and production will be started in 1937 according to present plans. Benguet Consolidated and its subsidiaries, Balatoc and Ipo Gold, accounted for about half of the total gold production. During the year Cal Horr was brought into production, and this plant, owned outright by Benguet, accounted for some Pl,200,000 in bullion. The capacity of Benguet is being increased to 1,000 tons a day, so that 1937 will probably see a substantial increase in that plant’s output. Of Benguet’s outside activities, chromite mining, described above, was most important. Marsman and Company had a most remarkable growth in 1936. It added two gold-producing operations, San Mauricio and Coco Grove, to its undertakings (Itogon, Suyoc Consoli dated, and United Paracale being the other companies under Marsman management which are in the production stage). It acquired management contracts with a number of mining companies all over the Philippines, among them Acoje, Gold Pocket, Mindanao Mining, Mother Lode, Gumaos Goldfields, Southern Paracale, Valley Placer, Tinga, Filipinas, and Dayaka. It has ventured abroad, and now is exploring mining properties in China, Netherlands East Indies, and British Malaya. Two projects recently started by the Marsman interests will be of great benefit to the industry as a whole—the PalidanSuyoc drain tunnel and the Mambulao smelter. In order to explore Suyoc Consolidated at depth, a drain tunnel is now being driven a distance of some 9,000 feet. It will go under a number of new properties and will facilitate the development of these properties. It is more than likely that one or more mines will be opened up as a result of this tunnel, in addition to the value of the project to Suyoc Consolidated. The new smelter will have a capacity of 50 tons a day, and EXAMINATION OF MINERAL PROPERTIES Minerals & Metals, Inc. Consulting Engineers, 202 Brias Roxas Bldg. Managers & Operators Phone 2-21-40. Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 20 THE AMERICAN: CHAMBER-QE COMMERCE JOURNAL January, 1937 will treat flotation concentrates from United Paracale and San Mauiicio. In addition, custom smelting will be under taken. Several of the properties in the Paracale-Mambulao district have orc containing copper; such ore can be treated in the new smelter. The amount of gold produced by the Marsman companies was about twice as much in 1936 as for 1935; for 1937 it will be even higher. Four Marsman concerns declared their first dividends at the close of the year: San Mauricio, United Paracale, Marsman and Company, and Marsman Investments. The Soriano interests concentrated their efforts on gold operations during 1936, with marked success. Antamok Gold fields was expanded until it now produces around 1*500,000 a month, thus becoming the third largest producer in the Philippines. Masbate Consolidated, with its 2,000-ton plant, handles more ore than does any other mining operation. I.X.L. and I. X. L.-Argos have been developed into high grade prop erties and offer great promise for 1937. Antamok Goldfields doubled the amount it paid in dividends the figure being 1*2,062,500 for 1936 and 1*1,000,000 for 1935, and in addition declared a 100% stock dividend in November. I. X. L. closed the year with the announcement of a 20% dividend and the promise of a stock dividend early in 1937. A number of gold properties are under development by Soriano engineers, in the Paracale and Masbate districts, and these may be brought to the producing stage this year. Of the smaller operating organizations, Demonstration is outstanding. Production has been steadily increased, and dividends amounting to F200,000 were paid during the year. Benguet Exploration maintained its regular operations, and paid its first dividend, of 10%. Baguio Gold has kept up its production, and at the end of 1936 was in the best financial position of its history. A divi dend of 10%, the first since September, 1934, was declared in December, 1936 by Baguio Gold, and it is very likely that dividends will be paid regularly for some time. The Atok Gold Mining Company brought Big Wedge, which it is operating on a profit-sharing basis, into production. A new flotation unit has been ordered for the plant which will increase production materially. Salacot has been plugging along. Its monthly production has been low, and every effort is being made to increase the ore reserves. East Mindanao, in operation but a few months, seems to have a bright future. Tambis Placer has recently announced plans for develop ment of its lode properties. This company has been operating a dredge in Mindanao for several years; figures on 1936 pro duction are not as yet available in Manila. Of the properties now under development, it is likely that mills will be in operation some time in 1937 at the following: Lepanto and Paracale-Gumaus (Nielson contract); Dulong (Marsman contract); Mindanao Mother Lode (Engineering Equipment and Supply contract); Mineral Resources; Uni versal. Development results at these properties arc reported to indicate ore bodies which will warrant mill construction. Whether or not such mills will be built, or whether, if built, they are justified, remains to be seen. A 1500-ton plant for the treatment of tailings from plants in the Baguio district is now being built by the Twin Rivers Gold Company Inc. This plant is expected to be in operation by the middle of 1937, at least. Whether or not it will be success ful, it is hard to say. Technical men differ in their opinions as to the project. Extracting gold from tailings is done on a commercial scale in many parts of the United States. Some engineers say it can’t be done here because the values in the tailings, by the time they reach the plant, are so low that there will be no profit. Every one is watching the great in terest the progress of the project, and will continue to do so. If Twin Rivers succeeds in salvaging gold from Benguet, Balatoc, Antamok Goldfields, Itogon, Big Wedge, and Cal Horr tailings, and makes money on it, there will be several engineers with very red faces, and no little explaining to do. Several new organizations were formed in 1936 for the pur pose of managing and operating mining properties. Presuma bly encouraged by the success of the Benguet, Marsman, and Soriano organizations, most of the new engineering firms are operating along similar lines. An engineering staff is as sembled, new properties arc acquired on contract or option basis, and prospecting is carried on. When such prospecting justifies development work, the necessary equipment is sup plied. When development justifies plant construction, the company undertakes this work. L. R. Nielson and Company has become a mine management firm, and has contracts on a number of promising properties in the Paracale and in the Baguio districts. The Engineering Equipment and Supply Company, which built several mills now in production, is working on properties in Mindanao and has a chromite prop erty in Zambales. Developments, Inc., pioneers in geophy sical mineral surveys in the Philippines, has made complete surveys for most of the mining organizations here and now has management contracts with several new companies. R. Y. Hanlon and Company is doing engineering work for many companies. Dr. A. D. Alvir, one of the most prominent of the Filipino engineers, has formed his own company and has a staff of several experienced American mining engineers. H. A. Wendt and Company is operating a number of properties in the Paracale district and elsewhere. None of these companies has a mine in production as yet, but all are carrying out definite prospecting and development campaigns. Most of the engineers with these concerns are competent and honest, and their efforts will do much in 1937 to develop the mineral resources of the Islands. All was not rosy throughout 1936, of course. The usual wild-cat promotions, false reports, dishonest and incompetent men which accompany all mining booms have been, and still are, present in Philippine mining. Of the 200 or more new mining companies which have been started, not more than a handful have even a chance of success. Many of these com panies have no claims worthy of attention; some of them have claims which have been carefully examined and turned down. The new year will bring disillusionment and financial loss to many people who invested their money in some of these com panies. It is unfortunate that so-called mining companies (Please turn to page 25) ELLIS, EDGAR & COMPANY STOCK AND SHARE BROKERS Members: MANILA STOCK EXCHANGE 201 NATIONAL CITY BANK BUILDING MANILA Branch Office: BAGUIO TELEPHONES: Mrs. M. J. S. WALKER, Manager 2-29-64 (4 Lines)/ BAGUIO CHAMBER OF COMMERCE BLDG. TEL. ADDRESS: TELEPHONES: 192 and 193 “ELLEDCO” MANILA IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN'CHAMBER OF COMMERCE JOURNAL 21 Russia Becomes Gold Conscious There’s a new spirit in Russia today, or maybe fever would be a better name for it. Russia has become gold conscious and is making a strenuous effort to establish a gold reserve by speeding up production in her rich goldfields in Siberia and in the Ural mountains, according to an article which appeared recently in the North China Daily News. Unlike most other European nations, Russia has discovered that it is not necessary for her to go beyond the limits of her own domain to acquire that gold which now seems so necessary for her economic and political security. She is bending every effort to develop her own gold-bearing territory, and is offer ing every inducement, and special privileges unheard of in the Communistic nation before, to her stalwart sons who will brave the wilds of Siberia and retrieve the precious metal for her. A few years ago, Comrade Serebrovsky, Director of the Gold Trust of the U. S. S. R., boasted that he would soon overtake the output of gold of the Rand. He was not taken seriously. Later, when he published figures showing that he had already attained half that amount, it seemed incredible. But, as time went on, and he maintained that figure, and even increased it, an uneasy feeling started to creep into the world gold market. The statistics published by him for the year 1935 gave an output of 5,650,000 fine ounces, representing today a value of approximately 1*360,000,000 for the one year. The thing seemed impossible. The whole output of the famous Lena goldfields for three-quarters of a century did not amount to more than double that. Russia has no intention of resting on her laurels, even with this remarkable increase. Comrade Serebrovsky has boasted that by the end of 1936 he will have pushed up the output to over 10,000,000 ounces. That is, he will really rival the Rand. Figures are not yet available to prove whether he has been able to carry out his ambitious intention. An explanation of this enormous output from Russia’s mines to vindicate a boast is asked by Mr. Malcolm Burr in London’s Daily -Telegraph—and is adequately given. Russia has used the same general methods to speed up gold production as she used to speed up industrial production; that is, by encouraging miners and prospectors, with privileges not otherwise obtainable, and enticing men of all sorts to join in the hunt for gold. Russian methods of gold-mining are far behind the times. Even so recent as ten years ago,, engineers on the Lena were intensely interested at the prospect of seeing dredges at work. It is obvious then that the quest for gold, even in this miners’ paradise, is no easy undertaking and a certain amount of personal gain would have to be allowed, against the principles of communism, to induce men to suffer the privations and hardships of the Siberian goldfields. Today, Russia considers these men “soldiers on the gold front” and has granted them free railway travel, relief from taxation, exemption from various services, especially from forced labor in other departments or in labor camps, and above all, better food and more of it. They go gladly, not only experienced miners, but all the floating proletariat, for the sake of the reward and a certain amount of personal freedom. Although the mineral wealth of the Urals has been famous for centuries, and the Bolsheviks have been prospecting very energetically in the less explored ranges of their empire, the answer to Russia’s new gold activity is not to be found there. Promising reefs have obviously been found in the Altai, the Tian Shan, the Pamirs, and the Caucasus, but that these could be developed within a few years to seriously rival an oldestablished field is not possible. The answer to the riddle is in that vast forest that sprawls right across northern Asia, the gloomy taiga, some 3,000 miles across from the west to the Pacific coast in the cast, and a thousand miles northward to the edge of the Arctic tundra. Right in the middle of this almost boundless forest there is a river called the Angara, whose icy crystal waters swirl down to Lake Baikal in a stream so turbulent that it defies even the Siberian frost until the end of January. That river flows over one of the oldest parts of the surface of the earth. Here time and the elements have combined with the mad rush of the fast-flowing river to break up the rocks, disintegrate them, wash down the debris, and concentrate the flakes of gold in the sand and gravel of the river beds. Some of these are on the surface today; some are buried beneath 100 feet or more of gravel and rubble, ground down by the glaciers. These are the deep leads. For this reason the T<iiga is gold-bearing almost throughout its extent. As in the Lena goldfields, it is extremely rich in some places. (Please turn to page 28) Woo, Uy-Tioco & Naftaly STOCKS AND BONDS Members: Manila Stock Exchange 322 San Vicente Tels: 2-30-75—2-17-95—2-93-02 Cable Address: “Woostock” HAIR & PICORNELL Successors to Hair & Elliott k GENERAL BROKERS Members of Manila Stock Exchange Insular Life Bldg., Plaza Cervantes Tel. Address: “Brokerage” P. O. Box 1479 Tels. 2-18-44 & 2-18-45 Correspondents: Neui York: Honolulu & San Francisco: Chisholm & Chapman Dean Witter & Co. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 22 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 The Housing Problem Solved By Goldilocks During the past year the resident population of Manila has enormously increased, owing to a variety of reasons into which we need not enter here, and has now reached what I believe the scientifically minded refer to as the “saturation point”. In other words, Manila is full up. Not only is every available house occupied, but the owners of new houses being built are simply inundated with applications from prospective tenants. All hotels and boarding houses are full to capacity and many of their rooms are more like school dormitories than hotel bedrooms, as they are being made to take as many beds as they will hold. With the Eucbaiistic Congress due to commence in about a fortnight’s time, we are threatened with the invasion of several thousands more people. Estimates vary as to the exact number to be expected but it is generally accepted that the present population of Manila will be about doubled during the period of the Congress. But no matter what the numbers may be, the fact remains that MANILA IS FULL UP right now, and all these visitors will expect to be accommodated somewhere. It is not yet too late to put forward a few sugges tions as to how this problem could be tackled. It is known that certain passenger vessels will berth at Pier 7 as floating hotels for the duration of the Congress, so why not go a step further and rig up shelters along the roofs of all the piers? These pier pent-houses, though not as lux urious as the ocean liners alongside, could also boast that their guests would enjoy “glorious sea breezes and unrivalled views of the sunsets for which Manila is so justly famous,” etc., etc. They would also be conveniently situated for all the ceremonies taking place on the Luneta. Of course some of the roof dwellers might be so foolish as to sleep lying along the length of the piers in an east-and-west line, nautically speaking, in which case they would roll off. Bales of hemp could be placed at frequent intervals down below to ease the landing of those, who elect to come down to ground level in this manner. Another suggestion is that the cinemas should remain open all night. They would be available from 11 o’clock at night until 8 the following morning and would provide shelter for large numbers of people. With the seats tipped up there would be plenty of floor space, and think what a fine address for the pilgrim from the far distant Batanes, say, if, when writing home to his friends, he could head his note paper The Loge, Capitol, Escolta, Manila! Similarly all office buildings could be placed at the disposal of the visitors after business hours. Imagine what a thrill it would give some hacendero to sleep in a bank with his head on his overdraft, surrounded by adding machines and current account ledgers, with a picturesque Indian watchman on guard at the entrance. I flatter myself that my own private office could be turned into a very attract ive boudoir for half a dozen young ladies if they didn’t object to sleeping under my desk and on top of a filing cabinet. The sales charts and other statistical data which now decorate the walls could be replaced with looking glasses and a few saintly pictures in order to make the place appear more homely. My one stipulation would be that they should clear out at least an hour before my arrival in the morning to give the janitor time enough to sweep up the powder, ends of lip-stick, etc. But perhaps those attending the Congress will forego the use of rouge and lipstick for these few days. There are still other sources of shelter which have not been tapped. Why not close to traffic some of the quieter streets in the residential districts and put the space thus gained at the disposal of pilgrims as camping grounds? Presumably we may expect fine weather, so that sleeping in the open would be no particular hardship. Then again, trams, busses and taxis, upon return to their garages and car barns at night, could be turned into dormitories. Large parties from the same town in a province might like to engage a tram and so be together for the whole of their visit; honeymoon couples could share a baby taxi, and so on. As the population of Manila is expected to be doubled, would it not be possible to double its present housing capacity and arrange for one family or one half of the inhabitants to work (Please turn to page 27) ASIATIC AGGREGATES, Inc. Consulting • Mining • Mechanical Engineers 507 Philippine National Bank Bldg. MANILA Tel. 2-28-13 GUTIERREZ, GUTTRIDGE & BRIMO STOCK & SHARE BROKERS MEMBERS: MANILA STOCK EXCHANGE 104 Calle Nueva (Comer Escolta) and at Manila Stock Exchange P. O. Box 389 Manila Cable Address “GUBRI”. Manila Codes Used Bentley’s & Private t i ( 2-35-22—2-12-92 Office Tels. ' 2.35.23_2.25.,4 Manila Stock Exchange Tel. 2-12-63 FRANCISCO GUTIERREZ SAENZ ALBERT S. GUTTRIDGE JOSEPH A. BRIMO IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 23 Treasure Island Engineer Hanlon Recommends the Expenditure of P100,000 For Development at Lahuy An interesting new development is that going on some five kilometers off the coast of Camarines Sur, eight kilometers northeast of barrio Caramoan, 20 kilometers west of the north ern tip of Catanduanes Island. The island of Lahuy is well covered with ruins of old workings. Four Spanish locations were investigated by Mining Engineer Russell Yale Hanlon for the Treasure Island company formed to prospect and develop the region. Samples of an old dump, the only residue of the Spanish work found, were taken. Results reported by Engineer Hanlon were encouraging. Two locations have been selected for initial development. These afford a comparatively cheap and quick access to the veins well below the old Spanish shafts. As this work goes on, the entire network of old workings will be cleaned for examination, and unexplored areas will be cleared of brush. “Heavily oxidized veins can be found cutting through the barrio on the west coast, and through the coconut flats to the north. These show traces of gold. All such veins should be traced and trenched. There are several areas of swampy, mangrove-covered ground that should be tested for placer possibilities,” reads the report. Twenty samples, taken from various old workings and outcrops, show assays ranging from a trace to 812.40 a ton in gold, with only one nil recorded. Engineer Hanlon advises an intensive exploration of the entire area, in view of promising possibilities. The old work ings are only on the richer portions of large vein intrusions, he says, sometimes on the foot wall and again on both walls. These workings appear also only on the most prominently exposed veins. New and untouched veins should be uncover ed by further prospecting. For the purpose of carrying out this exploratory program, an expenditure of P100,000 or more is recommended. Develop ment work, of course, will depend upon the results of preli minary exploration. Lahuy is about eight kilometers long, and two kilometers wide. All of the island except an area on the east coast un suitable for mining has been staked, and there are 144 claims and fractions in the area covered. Good backs can be obtained in the auriferous areas, it is reported, and several of the veins have been worked to a depth varying from 50 to 60 feet below the outcrops worked. Water and timber is available for mining purposes, and a good camp site was located. There is an abundance of labor available, much of it experienced. The geology of the region is interesting. The western and northern parts of the island are igneous. The whole island is cut by many andesite dykes in the diorite intrusions. In these dykes are found many quartz veins, ranging in width from a few inches to five or six feet, as exposed in the old Spanish workings. These workings are very numerous, many of them so encumbered by brush that it was not possible to examine them when Engineer Hanlon made his inspection. Of the workings entered, only a few had the veins which had been worked sufficiently exposed to permit good sampling. These veins have been badly leached and decomposed through the years, and no tools were at hand for opening up fresh faces. POWER— ECONOMY — PERFORMANCE Rocking Contact Type Voltage Regulator Operates Without Spark— Requires No Renewal of Parts Allis-Chalmers Automatic Regulator Fifteen regulators in stalled in Philippine sugar and mining plants during the past five years are obtaining close regulation. Hand Regulation Examine this chart and you will note what an improvement the automatic regulator will make in your plant. P. O. Box 282 Tel. 2-32-13 The Earnshaws Docks & Honolulu Iron Works 60-118 Second Street, Port Area Manila, P. I. Branch Office Bacolod, Occ. Neg. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL $ 55 8 54...6. 55....2. 5i...87. 55... 51. 55 S. 28i B 28 ...5._ 271... 35 28... 1'5 281...20 .2 Mr. Eisenberg at the keyboard on the floor oj the Manila Stock Exchange, with E. Palomo, executive secretary of the Exchange, an interested spectator. Modernizing Manila’s being a description of the ticker The installation of a modern ticker system, similar to those in use in stock trading centers the world over, is nearly completed at the Manila Stock Exchange. An electric call board and telephone broad cast system has already been installed on the floor of this exchange, and these devices have added much to the efficiency and ease of trading. Each of the members of the Manila Stock Exchange will soon have a ticker in his office. Transactions will be broadcast over the ticker system from the floor of the Exchange, and will be printed simulta neously in each member office. In connection with the ticker system, a financial news service covering the New York, London, Shanghai and Hongkong mar kets, as well as other markets of local interest, will be carried daily. News of financial and political importance will be included, and flash news of events of political and fi nancial importance will be transmitted as soon as received. The exchange has made special arrangements with the United Press and with Reuter’s Limited, for this news service. The technical supervision of the con struction and of the operation of the ticker service has been in the hands of J. G. Eisenberg, specialist in communications work. Mr. Eisenberg is no stranger here. He installed the original KZRM plant and the central office equipment for trans Pacific radio circuits. He has had more than 15 years’ experience in communications engi neering work, and was connected with various large concerns in the States among which are numbered the New York Quotations Company, the American Telephone and Telegraph Com pany, and the Radio Corporation of America. It is likely that but few readers of the Journal are acquainted with the whys and wherefores of a ticker system. Let’s let Mr. Eisenberg explain what happens between the time the broker sells your shares of American Beauty Gold Mines (at a profit, naturally) and the receiving of the news of the transaction in your office. Quoting Mr. Eisenberg: “The ticker is in reality a telegraphic device which, instead of operating a sounding instrument, operates a printing wheel carrying letters and figures. These letters and figures arc impressed upon a moving tape and appear as a continuous record of the transmitted information. This type wheel is operated by impulses of electrical current, which vary in time duration according to the key which has been operated at the switchboard. The switchboard oj the tic; supervised its installation. "Without going into the more complicated factors involved, it be stated simply that the tick ers are synchronized with a control keyboard which is timed in conjunction with the type wheels of the ticker instruments. Looking B (Continui were permitted to advertise in the Manila i chromite”, “orebodies showing assays of fivs expressions used to fool the public. One of the biggest swindles in mining hist' discovered that the Bicol Gold and the Cabit j! had been made for months, mills recommen spent in development, check reports made by tion simply did not have the ore. The engi Hongkong by the authorities. Investigation] tempt to fix the blame. Every one connected as can be determined, no one seems to be tak; matter. It is likely that by this time next yea guilty will be enjoying their loot. New mining legislation has been passed, dl gold production is not excessive, the catch if; subject to existing laws. By this the Asseml of gold should go up, the tax rates would u however, that the Assembly will tax the indu tied up in mining investments. The creation of a Bureau of Mines was a wit! Abadilla President Quezon has an engineer handicapped considerably by a lack of funds.) government employ to engage in private pr; Dr. H. Foster Bain as advisory engineer foj should prove invaluable to the bureau head All in all, the Philippine mining industry is year; 1937 will be more so in every way. Cft OA s SI 71 B16.1 a... 15, 28...'5.' 28. .5,28,z... S. 11.06 .. ft 13..7S .. 'S; 21. B 201...2ft 19-35 1.9,1.... Mining Stock Business ystem of the Manila Stock Exchange “The operation of this master timing device, arranged in a form not unlike a miniature piano keyboard and carrying letter and figure characters, controls a rotating synchronized drum around the periphery of which are located offset stops which are engaged when any of these keys are depressed. The position of this drum determines the time period of operation of a relay in the ticker instrument which moves the printing wheel into a position to print the character which corresponds to the keyboard selection. At the same time another relay automatically moves the printing mechan ism against an inked wheel and impresses it upon the tape, which is then automatically moved ahead by an auxiliary part of the mechanism into the next priting position. “The machinery for carrying out these operations, consisting of switchboards, relays, synchronized trans mitters and the ticker instruments them selves, is quite complicated, but the op eration of such a system simplifies the me chanics of brokerage reporting considerably. “It is necessary to have these reports appear simultaneously at a considerable number of separate points, and to do so accurately and uniformly. This ticker system accomplishes without the errors inherent in the simple method of telephonic reporting. In other words, the ticker sys tem is not dependent upon the human equation in operation except during one phase of its activity, the keyboard operation. “The ticker keyboard operator transerbes his information directly from buyer and seller slips which are rushed to the central operating position from the floor of the Exchange as soon as they are completed. An auxiliary ticker instrument located alongside his transmitting key board gives the operator a visual record of his transcription and acts as a check against any m:stakes he may make. Should such errors occur, a correction is placed upon the tape immediately. “Since the type wheel lends itself to continuous printing as well as the symbolic printing necessary to the speeding up of reporting of brokerage operations, it is possible to utilize the system for carrying information other than the trading reports. During such periods as the stock market is inactive or not in trading session, the systetn is accordingly used to carry a financial news service covering other markets than the local ones, in which traders may be interested. The Manila Stock Exchange, through special arrangements with the United Press and Reuters Limited, have provided for such financial news services from New York, London, Paris, Shanghai, Hongkong, and other markets of interest locally. News of political and other import will also be carried by the ticker system” Tickers will be installed in the offices of members of the Manila Stock Exchange imme diately, and later, in the offices of mining companies and businessmen who arc vitally interested in keeping in close touch with trading. ■r system Mr. Eisenberg, seen here. The first ticker was set rip in the office of Enrique Santamaria, president of the Exchange. Here he is reading the first message to, be transmitted over the newly-installed system. Walter S. Price, one\ of Manila's leading traders in mining stocks, is at the rights. ack Over 1936 tZ from page 20) tewspapers: “mountains of gold”, “huge deposits of j and six hundred dollars a ton” are samples of the Try was uncovered in the Albay region, when it was >roperties were worthless. Although glowing reports ded for both companies, and thousands supposedly reliable engineers showed that the properties in quesneer who made the reports was brought back from « are presumed to be going on at the present in an atl with the region claims innocence, however. As far ing an active interest in getting at the bottom of the ir the whole matter will have “been dropped, and those id is now in effect. While the increase in taxes on the taxation clause is that royalties are to be paid 'y can change the tax rate as it sees fit. If the price ! doubtedly be raised. Mining men do not believe, Ary out of reason; there is too much Filipino money •e move on the part of the government, and in Quirico well qualified for his position. The new bureau is ^however. Several of its engineers have already left ^ctice where the pay is better. The engagement of the bureau is considered a wise move. His advice k in an enviable position. 1936 was a record-breaking Q QQ R QO IA on on nn 0 ............. 26 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 Average Recovery Per Ton For 1936 (Compiled by the Chamber of Mines) Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 19.06 17.16 18.09 14.88 17.27 16.40 18.94 16.30 16.36 16.34 18.46 15.41 17.06 28.74 30.46 25.33 28.39 25.44 30.41 27.75 25.96 28.67 27.73 29.71 32.04 28.38 31.43 31.81 33.23 30.15 31.59 32.65 30.62 29.00 28.51 31.26 28.33 29.22 30.65 7.84 7.96 7.56 5.61 6.18 8.68 10.02 8.64 7.38 8.88 7.97 8.12 7.90 — — — 16.45 — ------- 31.15 37.78 33.90 31.06 28.64 25.26 31.30 14.18 17.11 16.74 14.96 15.86 14.06 16.71 19.80 24*34 22.50 23.87 18.05 21.10 23.76 23.71 23.51 23.52 20.76 16.59 15.93 18. 77 20.04 17.06 18.33 20.17 — — — — — — — — 16.77 18.43 20.96 21.53 19.42 17.52 16.47 16.66 16.76 21.89 16.57 14.96 — — — -- ---- — 17:26 8.87 10. 79 10.57 9.34 10.01 8.59 9.46 9.45 8.52 9.09 10.36 15.89 10.08 17.12 18.07 16.50 15.11 14.96 15.05 16.85 13.40 16.42 18.64 19.19 16.03 16.44 17.67 19.99 26. 50 18.94 13.56 22.86 17.93 20.06 22.07 21.61 18.44 21.23 20.07 7.81 6.10 6.38 6.58 5.49 5.43 5. 58 5.03 4. 57 3.52 4. 35 5. 65 5.54 16.44 13.90 11.01 14.41 7.69 18.47 12.22 12.68 15.44 8.19 17.45 24. 55 14.37 7.04 8.39 6.96 8.50 9.40 7.69 7.78 7.00 7.07 5. 76 4.74 5.74 7.01 — — 28.53 32.25 22. 68 19.67 32. 78 43. 16 51.97 51.61 49.27 61.80 39.37 27.42 21.02 20.82 15. 73 18.83 18.90 13.68 21.02 15.41 16.07 15.20 14.90 18.25 31.04 43.56 21.23 26.36 20.51 11.50 11.24 12. 96 13.75 14.66 15. 14 11.67 19.45 Ave. for Nov. Dec. year Intamok Goldfields.. P23.34 P26.54 P23.97 P24.02 P26.56 P27.19 P25.03 P24.39 P24.68 P22.49 P21.06 P22.37P24.30 laguio Gold............... Balatoc........... ........... Benguet Consolidated Benguet Exploration. Big Wedge................. Cal Horr................... Demonstration........... East Mindanao......... Gold Creek................ Ipo Gold.................... Itogon......................... I. X. L....................... Masbate Consolidated Northern Mining.... Salaeot........................ San Mauricio.. ......... Suyoc Consolidated. . United Paracale........ Average Daily Tonnage For 1936 (Compiled by the Chamber of Mines) Rated Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Capacity Antamok Goldfields. . 308 325 342 410 476 625 663 706 732 783 757 735 800-900 Baguio Gold.............. 151 169 171 194 172 183 167 176 176 177 172 174 200 Balatoc....................... 1208 1207 1226 1203 1210 1223 1221 1229 1234 1225 1249 1250 1200 Benguet Consolidated 798 803 794 776 804 790 815 807 787 794 816 859 800 Benguet Exploration. 99 101 83 103 72 68 86 99 108 98 108 116 120 Big Wedge............. — — — — — — 89 103 111 107 104 105 150 Cal Horr.................,. 127 142 159 153 161 149 181 189 211 203 208 202 200 Demonstration........... 178 195 190 189 201 175 218 209 203 209 231 216 200 East Mindanao......... ----— 81 106 87 112 125 Gold Creek................ 83 76 77 71 54 33 37 — — — No mill Ipo Gold.................... 183 181 182 176 170 183 151 148 195 168 180 175 200 Itogon......................... 319 362 422 591 461 501 485 499 460 517 511 515 500 I. X. L....................... 74 102 157 122 173 180 180 203 208 209 233 229 200 Masbate..................... 323 483 702 851 853 975 1236 1216 1603 1587 1591 1388 2000 Northern Mining.... — 14 12 9 20 24 16 16 19 TO 11 9 No mill Salaeot........................ 206 176 181 133 161 164 139 163 177 146 142 106 200 San Mauricio............. — — 88 155 151 146 169 155 143 145 155 131 150 Suyoc Consolidated.. 124 151 148 173 165 152 160 189 216 224 221 222 200 United Paracale.... 113 122 123 118 178 305 315 289 313 307 281 333 325 7x620 18 Escolta P. O. Box 201S Manila, P. I. Telephones 2-18-57 2-20-11 E. SANTAMARIA & CO. BROKERS MINING STOCKS AND PROMOTIONS E. Santamaria A. K. Macleod R. H. Machado Cable Address: •'SANTA” Codes: Bentley's Peterson International Wall Street, 1927 Edition IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 27 The Housing Problem . . . (Continued from page 22) at night whilst the other half slept, then the night workers could return home to rest in the rooms just vacated by their opposite numbers. It would be rather like on board ship where you have the watch on deck and the watch below. I have not gone into detail in any of the above schemes but present the ideas to the authorities for what they are worth, observing, however, that patents have already been applied for. Should all these plans fail, and as a last resort, why not freeze the Pasig and Manila Bay solid, leaving sufficient traffic lines for the ingress and egress of shipping? Scientists can achieve almost anything these days, so surely a little thing like this would not overtax their ingenuity. With the whole area of Manila Bay as a camping ground there would be prac tically no limit to the crowds that could be accommodated, and the cooling breezes off the ice would add considerably to the comfort of thousands of people attending the ceremonies on the Luneta. With regard to the feeding of our visitors, this will present almost as difficult a problem as their housing, and it will be interesting to see how th(> authorities will cope with this task. I have only one suggestion to make. As traffic will lx* prac tically at a standstill during the period, all service stations should have their tanks cleaned out and refilled with milk, beer or drinking water to be served through the pumps. What about a Shell Shandygaff or a Socony milk shake? AGU INALDO ‘AGU INALDO STOCK. AND BOND B KO KE XS . MEMBERS-INTERNATIONAL STOCK EXCHANGE .. 465 Son Vicente-corner T-Pinbin . Manuel S.Rush'a '-h*. 2I6JI-2I632-2I6B IT IS A J Conditioned! How a Newcomer Looks at Philippine Mining By H. Z. Peters Editorial Note: The author of this article was a consulting mining engineer in the United States for about 10 years, when he entered' the financial and organization phase of the industry. He engaged in this work for some 12 years, and came to the Philip pines a month ago. Mr. Peters recently opened an office in Manila, and is engaging in financial and organization work for himself and for his own clients. His remarks on the mining situation and on promotional activities as they concern mining stocks are peculiarly' appropriate since Mr. Peters owned his brokerage company in Sail Francisco and was a member of the mining stock exchange there. I find the mining situation in the Philippine Islands most interesting. The production of the Islands as a whole has had a very steady increase over the past couple of years until at this time approximately twenty mines are producing in excess of 1*4,000,000.00 a month. All information I am able to secure in the short period of time I have been here convinces me that there is an opportunity of finding and developing an additions,1 number of producing properties, some of which may become as important as those which are at this time pt5ducing substantially and profitably. I have been particularly interested in a comparison between the mining and stock activities here and similar activities which I have witnessed in a number of so-called boom mining camps and localities in the United States. While there are quite a few points of similarity, I have noticed many different conditions existing here than any I have seen before. In the first place the huge capitalization of many of the corporations insofar as the number of shares is concerned, together with the very small par value of the shares of these companies, has impressed me, I may say, quite unfavorably. I have yet to hear any satisfactory explanation of these very large capitalizations. I have also been impressed with the very large number of claims on acreages held by many of the mining companies. CAMAHORT & JIMENEZ STOCKS and BONDS MEMBER MANILA STOCK EXCHANGE 34 Escolta Tel. 2-34-81 P. O. Box 54 5 Lines IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 28 THE AMERICAN -CHAMBER' OF'COMMERCE JOURNAL January, 1937 This condition seems to be more prevalent among .those more recently organized companies, some of which have sold a con siderable quantity of stock to the investing public without regard to the possibilities of developing a real producing mine. It would seem that there has been an unusually large sum of money raised by such companies. Under ordinary conditions the majority of this money would no doubt be expended, partly on the development of a property having little or no value and the balance in the payment of excessive office and general overhead expenses. J. PASCUAL Stocks and Bonds Member: International Stock Exchange 465 San Vicente Exchange Tels.: 2I34I41 Office Tel.: 2-34-33 KRUEGER'S first BEER IN KEGLINED CANS AT ALL GROCERS OR DIRECT FROM TRANS-PACIFIC - TRADING. CO. P.O. BOX 497 « MANILA • TEL. 2 -42-04 Good for a Miner’s Thirst! I believe it is very fortunate for the mining industry of the Philippine Islands that there has recently been plr.ced in effect a new securities act, which if properly administered will tend to curtail the expenditure of considerable of the money al ready raised and in the future will go a long ways towards eliminating the promotion of so-called wild-cat mining com panies, and in .straightening out a more or less chaotic con dition which has apparently existed here for sometime. I have been very favorably impressed with the very apparent wish of the new commissioner to administer the act in a way which will provide protection for the investing public and at the same time not hinder those companies which are attempting legitimately to develop a mining property. I believe the commissioner is acting wisely in giving publicity to the appli cations for permits for the sale of stock to the public by various newly organized corporations. The new securities act of the Philippine Islands has apparent ly been patterned after the federal securities act of the United States. There arc some slight differences, but, in general, the acts are very similar. Prior to the enforcement of the various “states securities acts” throughout the United States and finally the Federal Securities Act, much so-called wild-catting was done in the various new mining camps of the Western United States. In each “boom” camp many companies were organized on properties of no possible mining value, and stock sold to the investing and speculating public. In many cases the stock of these wild-cat companies sold on the various ex changes at high prices and the promoters and manipulators reaped quite a harvest. The final enactment and subsequent enforcement of the federal securities act has stopped many of these activities. The administration of any securities act governing the financing of mining properties through the sale of stock to the public is a very difficult problem. The question of valua tion of an undeveloped mining property is a hard one to solve. This has been the experience of the Corporation Department of California for a number of years and the officials of the new {Please turn to page /t6') Russia Becomes . . . {Continued from page 21) The Angara is a three weeks’ journey north of the Lena Goldfield, which is itself a good two weeks journey northward from the Trans-Siberian railway. This will give you a general idea of the extent of the Taiga—it’s a big place. While other nations have looked upon the fundamental principle of all human activity as economic, and even the precious metal, gold itself, can be worked and won only if it can be made to pay, the fundamental principle of the Soviets is political. If gold be required for political reasons, as it always is, the question of cost and profit is not taken into con sideration. In the U. S. S. R. the payability of a deposit, whether low or high-grade is not taken into consideration. All gold possible must be collected, regardless of cost—in money, in suffering, even in Ifuman life, and brought to Moscow. The gold seekers of Siberia arc a stalwart race, who wrestle with Nature in her grimmest moods, to wrench a little of her buried treasure with primitive methods and inadequate resources. But this mad scramble on Russia’s part to build up a gold hoard from gold retrieved by such methods, cannot go on forever. The amount of gold to be recovered thus is limited. Large areas are already exhausted—some worked out and abandoned ten years ago. And diligent prospecting has offered no hope that gold mining in the true sense—that is, by drifting or underground mining—would last much longer in the Vitim district. Although large quantities of gold have been and still are being recovered from the streams and other workings, these are not expected to last much longer. The hope of the future seems to lay in dredges. The fact still remains however, that Russia is at present making a mighty bid for a gold hoard, and whether this will have any serious effect on the world’s gold situation, or affect the local gold mining industry remains to be seen. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 29 Metals Hit High Levels (Ey United Press) The continued increase in demand at all world markets this month for all metals caused prices to steadily increase to the best levels in several years. Production has continued to gain as new mining ventures get underway to cash in on soaring prices. Commodity markets have been exceedingly bullish, even surpassing the gains registered on the stock markets. As surances that the New Deal’s crop control program will be continued plus an actual shortage of certain commodities, such as corn and rubber, has greatly benefited the situation. Wheat prices have reached post-depression highs as Europ ean nations buy heavily to lay away surplus stocks for possible use in event of war. Another factor in the wheat market is the acute shortage of tonnage to move the Australian crop. The United Press learns that the acute shortage of shipping tonnage has virtually halted shipment of ores from the Philip pines, excepting gold. The lack of tonnage unquestionably will continue throughout 1937, regardless of an early settle ment of the Pacific Coast maritime strike, shipping agents predict. There is even a possibility Philippine sugar growers will encounter difficulty moving all of their quota tonnage to the United States by the end of 1937. The tonnage rate for sugar from Manila to American ports has skyrocketed from 88 to 811 a ton and even at the latter figure there was no tonnage available for sugar at the time this dispatch was written. Continued increase of metal production in the Philippines was revealed Jan. 14 when the Department of Commerce in Washington issued preliminary estimates of 1936 gold and silver production. The United States imported from the Philippines in 1936 about $6,000,000 more gold than in 1935 when it received 815,335,467 from the islands. The United States received $2,273,064 in gold from the Philippines during December, the department reported. Philippine gold production in 1936 exceeded that of Alaska, according to announcement of the U. S. Treasury Department. The islands produced 599,453 ounces during the year, valued at $20,098,855. California, with a production of 1,042,915 ounces, was first in production. The Philippines ranked se cond, South Dakota was third with 589,229 ounces, and Alaska was fourth with 510,982 ounces. Total production for the United States was reported as worth 8150,959,270. Development of silver production in the Philippines during the year also was revealed by the Department of Commerce report. Preliminary figures issued showed 1936 Philippine silver output amounted to 472,992 ounces valued at $364,181. Total silver production for the entire United States in 1936 was estimated at 62,024,929 fine ounces worth $47,759,195. This compared with 45,924,454 ounces in 1935 worth $33,008,201, indicating the extent the treasury’s silver purchasing program has benefited that industry. The New York bar silver price has hovered around 45 cents in January, declining to 44-3/4 cents at press time. Increased silver production has been accompanied by a marked gain in copper and lead production. The export copper price in New York touched 13.05 cents on Jan. 13, the highest price in seven years. However, many spot sales were being made at 12.75. Reduced visible supply of copper plus a steadily increasing demand from Europe has produced brisk buying of the metal. Reports from the copper mining sections indicate the reopening of a number of mines which have remained idle since 1931 when copper prices fell considerably below the cost of production level. Heaviest speculative trading in copper continues to center in London. It is too early to forecast the effects of the announcement in London Jan. 13 that all production restrictions agreed upon by copper producing countries are being temporarily removed by mutual agreement. (Please turn to page 32) What you really buy is DRILL HOLE at so much per foot WE ARE.PROUD TO PRESENT THE DA - 35 A New 150-lb.-3y2 inch DRIFTER THE FASTEST DRILL THAT Ingersoll-Rand HAS EVER BUILT The Earnshaws Docks & Honolulu Iron Works Sole Agents—Manila, P. I. P. O. Box 282 Branch Office: Tel. 2-32-13 Bacolod, Occ. Negros IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 Men of the Mr. H. Schifflin and wife sailed on the Empress of Asia on December 19th for Milwaukee, Wisconsin. During their stay in the Philippines for the past four weeks, Mr. Schifflin met the representatives of the mining industry in Manila and visited for a week in Baguio at several of the mining properties. A trip to Cebu Portland Cement plant via Iloilo was made during his stay here. Mr. Schifflin has been long associated with the Allis-Chal mers Mfg. Co. in an administrative capacity. He is Manager of the Crushing, Cement and Mining Machinery Department. His position over the past twenty-five years has brought him in close contact with the Mining and Cement Companies, and their organizations, in most parts of the world. His interviews with numerous Engineers in the Philippines recalled some places and officials whom the engineers knew or had worked within Mexico, Africa, China, Japan,Canada, or South Amer ica in Mining or Cement properties. Mr. Schifflin’s stay in the Philippines was limited and he regretted not having the. time to visit other places of interest. He expressed himself as being favorably impressed with the magnitude and growth of the mining industry in the Philippines. REAL SMOKERS PREFER THEM EEGIGS TABACALERA CIGAR TELEPHONE 2-25-77 L. R. Nielson, head of the company that bears his name, and George Scholey, who is in charge of technical operations for the Nielson interests, left for Hongkong on January 4th on the Empress of Canada. Their business there will be in connection with the Hongkong Mines Limited. Sidney Baxter, who accompanied them, will be in charge of Nielson and Company’s branch office there. * * ♦ W. R. Storms, graduate of the University of Washington’s School of Mines, class of 1923, arrived December 18th on the Empress of Asia to join the staff of H. A. Wendt and Company. Mr. Storm was formerly associated with the United Verde Copper Company at Jerome, Arizona, and later with the Newmont Mining Company in Peru. Gilbert Whitehead, Harvard graduate and holder of a B. S. degree in mining engineering from the Massachusetts Institute of Technology, also arrived on the Empress of Asia on De cember 18th to join the staff of H. A. Wendt and Company. A. Walter Beam, who was president of Benguet Consolidated for 13 years, returned to the Philippines on Sunday, December 20th, on the Philippine Clipper, for a brief visit. Mr. Beam retired from active participation in local mining in 1934 and has made his home in California since that time. Walter J. Eaton, Colorado School of Mines, class of 1913, arrived December 6th on the Empress of Japan to join the technical staff of Alvir and Company. Mr. Eaton has followed his calling in Mexico, California, Arizona, Colorado, Cauda, Bolivia, and Central America. Gold Production Antamok Goldfields....................... Baguio Gold................................... Balatoc............................................ Benguet Consjlidated................... Benguet Exploration..................... Big Wedge...................................... Cal Horr......................................... Coco Grove..................................... Demonstration............................... East Mindanao. ............................ Ipo Gold......................................... 1. A. JU..,........................................................ I. X. L. Argos.............................. Masbate Consolidated.................. Salaeot............................................. San Mauricio.,............................... Suyoc Consolidated....................... Tambis......................................... United Paracale............................. December 1936 F 509,888 83,221 1,241,712 778,180 29,164 82,312 149,367 none 123,589 75,000 86,144 256,223 151,101 24,069 242,841 18,850 250,631 102,355 unavailable 123,728 Total for 1936 F 5,260,339 1,077,096 12,760,406 9,008,052 274,914 497,863 1,183,739 636,292 1.473.887 239,940 641,939 2,825,669 1,341,249 211,315 2,022,302 413,106 1.733.888 1,172,547 unavailable 1,430,613 Total........................................ F4,318,375 F44,205,156 Note:—Totals given above are based on figures released monthly by mining companies, and are not final. The final total will be close to F44,500,000, since Tambis figures are not available and several smaller operations are not yet reported. GORDON W. MACKAY C. F. McCORMICK MEMBERS, MANILA STOCK EXCHANGE BAGUIO OFFICE BUENO BLDG. A4ackay & A4cCormick CABLE ADDRESS “CIMROC” TELEPHONES SHARE BROKERS 2-15-57 2-15-58 34 ESCOLTA P. O. BOX 2-15-59 2688 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 World Sources of Chromite are Shifting (Cont. from Nov. 1936) The Union of South Africa became a significant producer of chromite immediately before the depression. Production was started in 1924 and rapidly increased till by 1929 nearly 45,000 metric tons were exported. As in other countries, the depression affected the industry and pro duction dropped to about 50 per cent of its boom year. 1934 was a rapid comeback with 46,000 tons exported. From 1930 to 1934 exports amounted to 9 per cent of the world total. The chromite industry participates in the government bonus of 7 per cent granted to base metals exported from the Union. South African ore is mainly low-grade. New Caledonia is the principal source for chemical ore and although exports dropped during the depression, it continued to supply a large part of the world’s requirements. During the period 1930 to 1934 it maintained its same relative position with other producing countries; exporting between 10 to 12 per cent of the world’s total. In the early 1920’s New Caledonia chromite exports were much larger, supplying a much larger part of the world’s needs. The World War brought about the beginning of the Cuban chromite industry, which declined rapidly at the close of hostilities. In 1923, with the development of the refractory grade deposits, production was revived and has become quite substantial. Cuba made no shipments in 1932, but contributed 8 per cent of the world exports from 1930 to 1934. In the preceding 5-year period Cuban exports amouted to 10 per cent. Russia, being a producing and consuming nation, obtains its chromite requirements from domestic mines and exports material quantities to other world markets. Before the war, Russia was an important factor in the international chromite market, but from wartime to 1927 no outside shipments were made. Since 1927 Russian chromite exports have rapidly increased, reaching a peak of 41,527 tons in 1932, or 19 percent of the world’s exports. From 1930 to 1934 about 10 per cent of the world’s chromite came out of Russia. Chromite reserves in the U. S. S. R. are re ported to be about 15,000,000 tons, but the ore is generally low-grade. Only the high-grade ore is exported, although some of the 40 per cent ore has been shipped. Imports of Russian ore to the United States in 1934 contained 45 per cent Cr203. Chromite exports from India are much less than formerly. The peak years of Indian pro duction were between 1920-1924 when 21 per cent of the world total was exported. In the period 1930-1934 its exports amounted to 7 per cent, compared to 12 per cent in the preceding pentad. The 1934 exports were the largest since 1929. In Southern Europe Yugoslavia is probably the principal source for chromite deposits, and although small amounts were mined prior to 1914 definite production really began in 1925. Ship ments to foreign countries followed immediately after production began; 33,060 tons being ex ported in 1930, the peak year. From 1930 to 1934 Yugoslavia supplied 8 per cent of the world's exports. Some of the chromite is hand picked and shipped as mined; the remaining shipments are washed ore. The crude ore to the concen tration plants runs 24 to 40 per cent Cr203, but all shipments are of high-grade chromite, much of it being of metallurgical grade. During 1929 Yogoslav producers began using Saloniki as a port of export. Greece’s recovery from the depression period is worthy of note. In the years 1931-1932 chromite exports dropped to a little over 1000 tons per year, but recovered to 22,141 tons in 1934. For the past ten years Greece’s exports have averaged about 5 per cent of the world’s total. Greek ores are low-grade and are said to contain 38 to 40 per cent chromic oxide. Japanese chromite production is absorbed by her domestic industries with no exports whatever to the outside market. In 1933 her production amounted to 19,897 tons, slightly double that of (Phase turn to page 32) Shredded Rubber —it doesn’t belong in tools GOODRICH AIR HOSE HEVER CL06S YOUR TOOLS WITH RUBBER lU I K# I IaJAPEXI IU b 1^ B bji^ibi^ibibi^ibjbi^ibibibi^b IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 32 THE AMERICAN' CHAMBER OF COMMERCE JOURNAL January, 1937 Metals Hit High Levels (Continued from page 29) Most traders continued optimistic despite the removal of restrictions, feeling that it will require many months to stim ulate p eduction sufficiently to offset the present, low copper reserves, and prices of copper mining shares on the New York Stock Exchange remained popular with traders. The demand for lead has continued good with prices holding around last month’s levels. Philippine interest in lead this month turned to Hong Kong where L. R. Nielson, Manila broker, concluded a contract to operate the lead mines of Hong Kong Mines, Ltd. After a personal inspection of the property, Nielson announced his engineers were satisfied with the prospects sufficiently to warrant early installation of a 150-ton mill. AVERAGE METAL PRICES FOR DECEMBER, 1936 {By United Press) NEW YORK, Jan. 16.—The market for non-ferrous metals moved steadily upward during the past month with copper very strong, the magazine Metal d’- Mineral Markets reported today. Domestic copper during December averaged about one cent above the price prevailing during October and November. Demand was strong. Lead and zine also found brisk demand and prices gained about one cent a pound on the average. Sales were estimated at more than 25,000 tons of lead for the month and sales of zinc exceeded 20,000 tons. Substantial improvement in the demand for tin has sentprices for that metal steadily higher during the winter. The average New York price for Straits in December was 51.823 as compared to less than. 45 cents last October. Metal & Mineral Markets reported average metal prices for December as follows: Copper: Electrolytic, Domestic, Refinery................................. 10.763 Electrolytic, Export., Refinery...................................... 10.835 London, Standard Spot................................................ 45.946 London., Forward............................................................ 50. 364 Lead: New York........................................................................ 5.554 St. Louis.......................................................................... 5.406 London, Spot.................................................................. 25. 560 London, Forward............................................................ 25. 503 Silver and Sterling Exchange: Silver, New York, per cz............................................. 45.352 Silver, London, pence per oz................................ 21.238 Sterling Exchange, “checks”......................................... 490.670 Zinc: St. Louis, Spot............................................................... 5.273 London., Spot.................................................................. 17.957 London., Forward............................................................ 18. 145 Tin: New York, Straits.......................................................... 51.823 London., Standard Spot.................................................232.108 Goid, per oz., U. S. pi ice.........................................$35,000 Quicksilver, per flask.................................................$90.25 Antimony..................................................................... 12.918 Cadmium...................................................................... 90- 000 Platinum, Refined, per oz. ........................................$48,000 Aluminum, 99 + %...................................................... 20.000 Domestic quotations above, unless otherwise stated, are in cents per pound. London averages for copper, lead., zinc and tin are in pounds sterling per long ton. Sterling ex change, checks, is in cents. (Please I urn Io page JO) World Sources of Chromite (('anti nued from page dl) 1931. Japanese imports of chromite in 1933 equalled home production. In the Philippines, the chromite industry is just beginning to receive serious attention, and with the United States, the largest chromite consumer, depending entirely on foreign sources for its supply, the development of chromite mines in the Islands will prove a boon to the national welfare of both countries. Quoting a report from the United States Bureau of Mines issued this year: ‘'Recent reports from the Philippines indicate considerable development Petter Diesel Engines Fred Wilson & Co., Inc. Wilson Building 53-55 Barraca Manila of chromite in the islands. Exploration work has been going on for several years, and reserves of some magnitude have been blocked out. A trial shipment of 500 tons of high-grade ore shipped to the United States in 1935 was reported to run 53.59 per cent chromic oxide and 14.43 per cent ferric oxide. Present plans are said to provide for shipment of 25,000 tons yearly over the next 4 years”. The importance of the chromite industry to the Philippines will be obvious when the figures on American Chromium imports and exports are considered. American imports contrasted with world chromium exports for the decade 1925 to 1934 show the importance of the industrial setup in Advantages SIMPLICITY ECONOMY RELIABILITY Sole Distributors For the Philippine Islands: the United States to chromite producing coun tries, and though exports from America increased during the latter part of the depression, the United States still remains by far the world’s largest user of chromite. American require ments during the post-war period caused imports to reach a peak of 331,860 metric tons or 78 per cent of world exports in 1930. During the next 2 years imports dropped sharply, amounting to only 90,574 tons (42 percent of world exports) in 1932. Although imports had recovered 100 percent, to 195,383 tons in 1934, their relation to world exports varied but little, being 41 per cent in 1933 and 44 percent in 1934 compared with 66 per cent for the pentad 1925-1929. During the past 10 years the United States im ported chromite from Cuba, Greece, India, New Caledonia, Southern Rhodesia, Turkey, Russia, U. S. Africa, and Yugoslovia. Examination of the above sources from which America received chromite for her industrial needs reveals the changes in locality from which she drew her supplies. Nearly 60 per cent of American requirements during the period 192529 were met by imports from British Africa, but in the five years following less than one-third came from this source. Cuba maintained the same relative position during the two periods while India showed a decrease. Increased im ports are credited to Greece, New Caledonia, Turkey and Russia. 3’110 extent of the Greek increase is questionable as the movement of Yugoslavian ore out of the port of Saloniki is credited to Greece in import statistics. Imports of chromite into the United States enter through the Atlantic Coast ports and are used largely in the industrial States in the north eastern part of the country. Such is the story of chromite during the past two decades; that it has definitely influenced world commerce and added greatly to the pros perity of the producing nations is without ques tion. With the further developcmcnt of chro mite mining in the Philippines a new chapter will have to be written into the history of this important mineral. As yet, the full extent of chromite deposits in the Philippines is undeter mined, but as further explorations and develop ments reveal the abundance of chromite ore here, the Philippines stands a fair chance of becoming the world’s next great source of Chromite. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Halving Coconuts to Make Copra 0©i= Up to Date Commercial Reviews When you win J you deserve it When you lose you need it BLACK&WHITE® 'WHISKY KUENZLE & STREIFF, INC, Main Office: 343 T. Pinpin Tel. No. 2-39-36 MANILA CEBU ILOILO ZAMBOANGA Branch Office: 44-48 Isaac Peral Tel. No. 2-17-62 Far East—Europe RAPID LUXURY LINERS Via Singapore— Colombo Bombay — Mawowah Suez — Port Said M.V. VICTORIA Leave? MANILA, FEBRUARY 3, for Naples and Genoa S.S. CONTE ROSSO Leaves HONGKONG. FEBRUARY 18. for Venice and Trieste S.S. CONTE VERDE leaves HONGKONG. MAUCH 14. 1937. for Venire and Trieste Overland to London, Paris, Berlin. Stopover privileges. From Egypt the voyage may be continued by five optional routes of the Mediterranean services. Through Tickets to the U. S. and Round the World at Reduced Fares. EXPRESS SERVICE via INDIA-EGYPT - ITALY ITALIA LINE LLOYD TRIESTINO Smith, Bell O Co., Ltd., Agents HONGKONG «t SHANGHAI BANK BLDG., PHONE 2-31-31 More Power—Lower Operating Costs with 1937 Chevrolet Trucks No w Ready for Delive ry See them at the Chevrolet Show Room Pacific If you have a hauling job to do—if you are in terested in greater efficiency—if you want to figure costs down to the lowest possible level —if you expect dependable, trouble-free per formance—then the 1937 Chevrolet Truck is the unit you must investigate. Commercial Company ILOILO MANILA CEBU IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 33 The Cheap Money Era: How Long Will It Last? By Professor C. S. Richards Continuing the Survey of World Conditions TWO FUNDAMENTALS Now there are two fundamentals for a rising world price level—the desire (and the will) that it should rise, and the means to make it rise, that is, an adequate supply of money. Both are essential: desire without the means is vain, and a short-lived boom is all that could result. The means without the desire merely implies stagnant money markets and low rates oi interest. There can be no question that desire is there—most countries oi the world are in an expansionist and inflationist mood, though in some cases the idea is less fla grantly decked out and “reflation” is spoken of, though in the end it amounts to very much the same. Granted that the mood is there, are there the means? Has the world the money available to finance such expansion? There can be little ques tion also that it has, and this on two grounds: (a) The fundamental change which has taken place in recent years in the position of “bank money”; (b) The enormous increase in the world’s actual and po tential supplies of gold. (a) With the abandonment of the gold standard in Eng land, to take the outstanding case, the Bank of England is not now under the necessity of maintaining its traditional gold reserves. National monetary policy is expressed through the Treasury (which is virtually now the dominant factor in the money market) by means of the Exchange Equalisation Account. Subject to this policy and its implications, the Bank of England is free to meet the demand for credit without the rigid restrictions which the gold standard imposed and can vary the amount of joint stock banks’ cash within very vfide limits. This non-rigidity in the banking structure is a great improvement in technique, but it does throw added respon sibility on to the central bank. Since the crisis of 1931 these banks have improved technique in other ways so as to safe guard themselves against dangerous developments. 1929 1930 1931 1932 1933 1934 1935 10,412 10,716 10,878 11,559 11,014 10,480 10,773 2,208 2,286 2,396 2,449 2,537 2,916 3,619 1,928 2,102 2,694 3,044 2,949 2,965 3,280 1,085 1,434 1,701 1,990 2,667 4,263 5,650 4,040 4,184 4,702 5,224 6,347 6,715 7,356 19,673 20,722 22,371 24,266 25,514 27,339 30,678 *Record year before the years 1932-35. flncluding the Philippines. 2,108 2,220 2,397 2,600 2,733 2,929 3,287 STILL BUYING GOLD But the fiduciary issue of the Bank of England is still fixed at £260 millions, and the Federal Reserve System must still maintain a reserve ratio of at least 40 per cent. Moreover, central banks are still eager buyers of gold, so that though freedom is greater than previously, it is still dominated by gold. (b) What therefore is the world’s gold position since it still is of the utmost importance? The facts in this connec tion are little short of staggering. 1. The annual physical production of gold continues to rise at a rate never before exceeded in the history of the world. Since 1929 the output of gold has risen by fully 50 per cent and by no less than 150 per cent if valued in currencies which have depreciated by 40 per cent, that is sterling and the dollar. The following table (taken from the Annual Report, 1936, of the Bank for International Settlements) shows the world’s gold production in 1915, the record year before 1932, and each year from 1923 onwards: Year Africa U.S.A.f Canada, in thousands of ounces 1915* 9.096 4,888 918 1923 9.149 2,503 1,233 1924 9.575 2,529 1,525 1925 9,598 2,412 1,736 1926 9,955 2,335 1,754 1927 10,122 2,197 1,853 1928 10,354 2,233 1,891 Russia. Countries for the World »f fine gold in millions of Swiss francs. 1,546 6,146 22,594 2,420 438 4,463 17,786 1,905 594 4,827 19,050 2,041 693 4,592 19,031 2,039 895 4,430 19,369 2,075 810 4,464 19,446 2,083 899 4,206 19,583 2,098 “The probable increase of production in South Africa and Russia alone will lift world production above the 40,000,000 fine ounces mark by 1940.” (“Economist, June 13, 1936.) This increase in production has, of course, been largely brought about by the great increase in price. Assuming that the non-monetary demand for gold and for hoarding in the East is in future to be the same as in 1925-29, namely about 8,000,000 fine ounces, the above figure means that the annual addition to the stock of “monetary” gold may be expected by 1940 to have increased from 10-1/2 million fine ounces in 1929 to approximately 32 million ounces. 2. Moreover, in recent years there has been a great trans ference of the world’s stock of gold from non-monetary to mone tary uses—from this source alone the world’s monetary stocks have increased from 553.6 million ounces in 1929 to 734.3 million ounces in 1935. In brief, the position is that the ul timate basis of the world’s money has increased by 32.7 per cent, while annual production will soon be sufficient to increase it by a further 4 to 4-1/2 per cent per annum at least. Nor is this increase in monetary stocks confined to the United States and France. Excluding these two countries, the world’s monetary gold stock has increased from 2860 million ounces in 1929 to 316.4 million ounces in 1935, or by 10.6 per cent. 3. But these figures, impressive as they are, by no means tell the whole story. Not only has there been a great increase in the weight of the monetary gold stock, but its value in terms of paper money has risen. Few countries have definitely de valued their currencies, though in some devaluation seems imminent. The American dollar has been devalued to 59.06 per cent of its former value, the belga to 72 per cent and de preciated sterling stands at about 62 per cent of its par value. It is impossible to say what the ultimate devaluation will be. On the basis of devaluation to 66 2-3 this will involve a rise in the price of gold of 50 per cent (the present rise in the sterling price, say 140s., represents an increase of about 64.7 per cent). The 553.6 million fine ounces of monetary gold in 1929 at 85s. per fine ounce were worth £2,353 millions. The 734.2 million fine ounces in 1935 at 127s. 6d. (50 per cent more) would be worth £4,680 millions. The annual production available for monetary use in 1925-29 was worth about £44.5 million. The annual production available for monetary use in 1940 will be worth nearly £205 million. In other words, the world’s monetary stock of gold has increased since 1929 not by 32.7 per cent (that is from 553.6 to 734.3 million ounces) but by 98.9 per cent (that is from £2,353 to £4.680 millions). If the present price be taken, i.e., say approximately 140s per fine ounce, a rise of 64.7 per cent, the figure is not £4,680 but £5140.1 millions, and the percentage increase not 98.9 but 118.4. 4. Nor does the above complete the tale. Many countries have reduced the legal ratio of gold to liabilities, for example, South Africa from 40 to 30 per cent. No figures are easily procurable, but it seems safe to say that throughout the world as a whole, since 1929, the increase in the monetary stock of gold has been 120-125 per cent. 34 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 MORE GOLD THAN EVER These figures are significant. They mean that there is a greater available supply of money than ever before in the history of the world. The secular rises in prices in the nineteenth century were caused by just such increases in gold pro duction, for example, by the Californian and Australian discoveries of 1849 and that of the Rand in the nineties. But such increases were as nothing to the present position. “If mone tary history means anything, it means that the world is on the eve of a very large rise of prices.” ("Economist.”) What are the prospects of such a rise even tuating? The position of the "gold bloc” is becoming daily more difficult to maintain—it seems only a matter of time before the last strong holds of deflation may give up the unequal struggle. There are two countries where such an initial impetus as is requisite to start the movement is possible, and of these, one where it is probable. Under present circumstances a rise is possible in England—but not probable. A rise such as is postulated would largely destroy the internal improvement which has taken place and would imperil the foreign trade position. Moreover, both the Treasury and the Bank of England policy is against it, despite the past four years of “cheap money.” But such cannot be said of the United States. Briefly, there is an enormous potential supply of money in the United States as a result of President Roosevelt’s policy since the spring of 1933. Big as it is, it can be greatly increased by the power the President holds of further deva luation from 59.06 to 50 per cent of the previous gold figure of the dollar, that is, a further rise in the dollar price of gold cf 15.3 per cent. More over, whether the Federal Reserve system could control such a situation is, judged by past ex perience, open to question—both desire and ability seem lacking, and the Treasury necessity of having to finance debt deficits is another factor which increases the possibilities of a rise of prices in the U.S.A. Such a rise could obviously not ESTABLISHED 1812 -------- . -------- - Capital (Paid) - U. S. $ 77,500,000.00 Surplus--------- ”--42,500,000.00 Undivided Profits ” 11,991,339.92 (As of Sept. 30, 1936) -------------------------- ----COMPLETE BANKING SERVICES MANILA OFFICE National City Bank Building be confined to America—the British Govern ment, in all probability, would have to let sterling depreciate still further in the interests of its foreign and domestic trade—and a rising tide would soon lap other shores. It does not follow that such a rise is imminent the time element is as usual the unknown factor. In the international field though, as seen already, improvement is noticeable in certain directions, for example, in commodity prices, employment, world production, international debts, etc., but there are still many restraining influences on general world improvement. Tariff barriers and economic nationalism show little sign of relaxation—tariffs still restrict the volume of trade, capital and exchange regulations the flow of international investment funds, and immigra tion laws the movements of population. More over, political tension and uncertainty restrain enterprise and lead to the prolongation of the desire to remain liquid, and the possibility cf a European war cannot be completely discounted. THE CAPITAL MARKET In this respect the position of the capital market in England is significant of a general tendency. Total capital issues during the year 1935 were £182 against £161 million in 1934, and though the former figure is double the lowest year, 1931, it is only half of the peak year, 1928. Moreover, as pointed out by Mr. D. Graham Hutton in Lloyds Bank Limited Monthly Re view for February, 1935, in an article entitled “Recovery and the Rate of Interest,” the share of the total of new non-government issues taken by the local bodies and public boards and cor porations has remained at two-thirds and threequarters of the new borrowings by “mainly pri vate enterprise,” while in 1928 and 1929 it formed but an insignificant fraction. The recovery in England has been, as “The Economist” (June 13, 1936) clearly shows largely confined to that of the industries catering wholly or mainly for the home market, the export trades standing out in “strikingly unfavourable con trast.” This recovery has been conditioned largely by the policy of liberal credits and cheap money, a policy now under general and serious discussion. The strongest advocate, and indeed prognosticator, of lower interest rates and cheap money has been Mr. J. M. Keynes. In an article in Lloyds Bank Monthly Review for April, 1932, entitled “Reflections on the Sterling Exchange,” he advocated and indeed prophesied “lower and lower rates of interest” in erder to counteract the then present deflationary tendencies and stimulate investors “to lend for purposes which involve material risks.” That prophesy has since been amply fulfilled as has already been shown. At the annual general meeting (Feb ruary 21, 1934), of the National Mutual Life Assurance Society, of which he is chairman, he stated categorically that the long term rate of interest would and should fall further in “the interests of the maintenance of employment and the full utilisation of national resources.” (“Economist,” February 24,1934). At the meet ing last year (“Economist,” February 23, 1935) he was still of opinion that “while British econo mic health required a still lower rate of interest, there was less prospect of expecting that to even tuate because British rates were already much below those ruling elsewhere,” and he expressed disappointment “at the comparatively few large scale opportunities for the investment of new savings which had as yet disclosed themselves under the influence of the low rate of interest apart from the new building and electrical devel opments.” At the annual meeting this year, he stated that “a further reduction in the long term rate of interest was urgently called for” and criticised the Treasury for not themselves (judged by recent bond issues) “showing confi dence in the short term rate of interest remain ing low,” since this is of paramount importance in determining the long rate. Indeed, Treasury action would seem to indicate that the period of low money rates may be drawing to a close. Mr. Reginald McKenna, chairman of the Midland Bank, has also himself recently ex pressed the same view (address to Annual Meet ing Institute of Municipal Treasurers and Ac countants at Blackpool, June 18, 1936): “There need be no rise in the cost (of borrowing) to the legitimate borrower if its quantity is increased in accordance with the demand. T"his relative freedom to meet the demand for credit is indeed one of the most striking benefits resulting from our adoption of a scientifically regulated money system and there is nothing inherent in that system, as it now operates, to warrant the sugges tion that cheap money must come to an end as soon as trade recovery passes a given point.” Such a statement embodies an obvious fallacy. Business men arc always likely to regard their' demands for accommodation as “legitimate,” but bank credit is not the same as capital and, in the case of England, it would be idle to think that present population can be maintained on the same standard of living by a somewhat artifi cial policy which concentrates on home develop ment and ignores the necessity for improvement in the export trade, before many depressed in dustries can show any signs of recovery—a policy of too cheap money may dry up some of the sources of savings. Now the current long term rate of interest is a highly psychological phenomenon which must necessarily depend on what expectations are held concerning the future rate of interest. The rate of interest is the price of borrowed capital and IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 35 the equilibrium rate is a figure which equates the volume of savings to the demand for its use, and while no one rate is recognisable at any time, since variations will depend on the risk involved in particular cases, the trend of long term interest rates is so recognisible. Both the demand for and supply of capital are composite factors—but, in general, the greater the level of the na tional income the greater the volume of savings. In recent years in many countries this factor has been greatly influenced by the tendency towards equalisation of incomes, e.g., heavy income tax, death duties and more equitable distribution. The demand for capital is made up of the de mands from governmental, private and industrial uses; governments are everywhere taking larger proportions of the available total, and industry is increasingly providing its own funds by reser vations and re-investments of profits, partic ularly in the large combines, but in England, any way, the field for investment by private enter prise is narrowed both by opportunity and in clination-lessened confidence among business and the restrictions on the movement of capital, together with foreign capital seeking refuge from uncertainty in other parts of the world, seem to preclude much possibility of a rise in interest rates in the near future. It would seem to follow, therefore, in so far as immediate prospects are concerned, that, both from conditions in England, the United States and elsewhere, the low interest rates and cheap money will continue and rates may even perhaps fall further, but that in time the enormous pres sure of the available supply of money will lead to a gradual world rise in prices and values and consequently in interest rates. Such a rise would tend to facilitate a general return to equi librium in the future, but'it may, if it is to be kept within bounds, necessitate measures to neutralise somewhat the factors producing it. THE ECONOMIC OUTLOOK IN SOUTH AFRICA What is the bearing of the above on the po sition in South Africa? There is no need to de scribe in detail the nature and extent of the rec overy in the Union—I have so described it for 1933 and 1934 in an article in the “Economic Journal,” London, December, 1934. But some important figures must be mentioned. The rec overy of the Union has been almost wholly dependent on the great rise in the price of gold and the consequent expansion of the gold mining industry. The following figures, which relate to the operations of the producing gold mines of the Witwatersrand, indicate the altered po sition : Total tons milled... Total fine ounces de clared .................... Total working re venue .................... Tot a 1 w ork i ng c ost s. Total working profit. Revenue per ton milled.................... Working costs per ton......................... 19/3 1932 34,906,000 11,378,000 £48,832,000 £33,526,000 £15,306,000 28/1935 44,235,000 10,565,000 £74,414,000 £41,774,000 £32,640,000 33/8 18/11 Government revenue (direct taxation and profits from lease mines) amounted to approx imately £13,300,000 during the year ended March 31, 1935, whilst for 1932 it was £4,313,000. Working profit per ton......................... 8/9 14/9 Stores consumed.... £16,045,000 £24,829,000 Average number of whites employed.. 23,000 32,000 Average number of coloured persons employed.............. 218,000 273,000 Salaries earned by whites.................... £8,873,000 £12,394,000 Wages earned by co loured persons.... £7,343,000 £9,210,000 Dividends declared. £8,979,000 £16,391,000 This prosperity of the gold mining industry has permeated all sections of the national life, though in varying degrees. Secondary industry has shown marked improvement, and whereas in 1932-33, there were 7,669 establishments em ploying 87,173 Europeans and 105,310 non Europeans with a total salary bill of £21,875,000 and a gross value of output of £90,948,000, the corresponding figures for 1933-34 were 8,180 establishments, 80,647 Europeans, 148,855 non Europeans, £26,399,684 in total salaries and a gross value of output of £111,391,000. Later figures are, unfortunately, not available, but it is certain that the present position reflects an even more favourable situation. While agriculture is still depressed, as com pared with the pre-depression years, there has been a considerable improvement as compared with 1931 and 1932 the increase in commodity prices has favourably affected the position of the farmer though the Union still suffers from the “chronic bucolic complex” which I noted in the previously mentioned article. The improved position is well-reflected in the registration of new companies since gold was abandoned, the figures for 1932 being inserted for comparison—the following figures being the result of a personal detailed investigation of all the companies’ records in the office of the Re gistrar of Companies, Pretoria: REGISTRATION OF Period No. Gold Mining Companies Norn. Cap. No. Other Mining Companies Nom. Cap. No. Manufacturing Companies Total Companies Nom. Cap. N’om. Cap. No. 1932 Jan.-June......... 4 £29,000 13 £355,600 301 £955,247 318 £1,339,847 July-Dec........... ... 5 891,500 10 62,860 269 773,986 284 1,728,346 Total................ 9 920,500 23 418,460 570 1,729,233 602 3,068,193 1933 Jan.-June......... .. .. 42 3,509,752 16 111,465 329 1,355,250 387 4,976,467 July-Dec........... . .. 68 4,598,000 20 38,000 375 1,328,000 463 5,964,000 Total................ ... 110 8,107,752 36 149,465 704 2,683,250 850 10,940,467 1934 Jan.-June.......... . .. 53 10,598,000 24 258,000 543 4,870,000 620 15,726,000 July-Dec........... . .. 76 8,682,000 7 1,059,000 487 1,909,000 570 11,650,000 Total................ ... 129 19,280,000 31 1,317,000' 1030 6,779,000 1190 27,376,000 1935 Jan.-June.......... . .. 16 4,881,000 30 388,000 580 3,305,000 626 8,574,000 July-Dec........... 11 107,000 14 718,000 542 4,201,000 567 5,026,000 Total................ . .. 27 4,988,000 44 1,106,000 1122 7,506,000 1193 13,600,000 1936 Jan.-June.......... 16 657,000 23 2,688,000 673 9,338,000 712 12,683,000 1933-36............ ... 282 33,032.752 134 5,260,465 3529 26,306,250 3945 64,599,467 It is interesting to note the order in which in vestment has taken place, first gold mining, then other mining and more recently secondary in dustries. To date the increase in prices has been very small. Wholesale prices (base 1000 in January, 1934, stood in January, 1933, at 955; in January, 1934, at 1161, January, 1935, at 1045; January, Sport of Kings will Begin with Eclat Soon to open its clubhouse and start a season of horse racing, Santa Ana Turf Club announces the purchase of 100 Australian race horses. Y. S. Day, the racing manager, describes these griffins are measuring not under 14 hands 1 inch and not over 15 hands, 3 to 7 years of age in clusive. Under the auspices of Philippine Racing Club, this new sports group is designed to give racing the popularity it deserves in the Philippines. It intends to provide suitable accommodations for comfort, cleanliness and convenience, so that persons who have always wanted to enjoy the “sport of kings” can do so pleasantly. Santa Ana T\irf Club is a non-stock corpora tion. Without going into lengthy technicalities, this means briefly that it is not operated for profit; that it has no authorized capital, and issues no shares. It is the simplest legal entity that can be organized, not requiring a more elaborate structure since it will be operated under the auspices of the parent corporation, the Philippine Racing Club. There will be two grandstands, one for the general public, the other for club members. 1 he latter will include a tastefully-furnished clubhouse with restaurant, bars, ballroom, lounge, and—for race days—very comfortable seating arrangements. Applications for member ship are now being submitted, and subscriptions for the griffins accepted. 1936, at 1089; and the latest April figure is 1091, a rise over the whole period of 14.2 per cent. The retail (cost of living) figure for “all items” (base 1000 in January, 1914), which stood at 1123 in January, 1933, 1160 in January, 1934, 1157 in Januaiy, 1935, 1157 in January, 1936, stood at 1164 in June last, a rise over the whole period of 3.6 per cent. The future of prices will be discus IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 36 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 sed shortly. The Budgets since the abandonment of gold have shown successive surpluses. Taxation has been reduced, but while revenue has remained at approximately the same figure (£38 millions to £39 millions), expenditure has shown successive increases (£33 millions to £36 millions). Mount ing Government expenditure may denote pros perity, but it may equally indicate national ex travagance. At the end of 1932 the total public debt of the Union stood at approximately £264 millions. It gradually rose and stood at £274 The figures for imports and exports on visible account are as follows:— 1933 1934 1935 1936 (5 months) Exports 94,328,000 81,495,000 102,126,000 50,912,000 Imports.............................................................. 49,371,000 66,321,000 71,392,000 33,713,000 Balance............................................................... £44,957,000 £15,174,000 £30,734,000 £17,199,000 As a result of the altered banking position, all interest rates have been continuously and drastically reduced, as the following tables show:— Date 2/ 8/32 10/10/32 20/ 1/33 15/ 2/33 23/ 3/33 8/ 6/33 31/ 8/36 Date Prior to 21/ 9/32 12 months. Batea (Payable to Public). t'---------------cent. months. - 3. 4. 5, months. Bank Interest ------Fixed Deposit—per 7, 8 and 9 months. Short Call 4-1/4 4-3/4 5 5 3 3-1/4 3-3/4 4 4-1/4 2-1/2 2-1/4 2-3/4 3 3-1/4 . 1 — 1-1/2 2 3 — — 1/2 1 2-1/2 — — 1/2 1/2 2 — — 1/2 1/2 2 — Interest Rates—Representative Building Society Savings Account Fixed Deposit Rates— Twelve months 5 to 5-1 /2 per cent, according to the Society. 5 to 6 per cent, according to the Society. 4 to 3 per cent, according to the Society. 21/ 9/32 1/ 1/33 Stabilised at 4 per cent for many years. Now reduced to 3 per cent on daily balance. Varies for different societies but above figures typical. But the altered position of the Union is best reflected in the banking figures ana can be set out as follows: Commercial Banks: 1. Advances and Discounts in the Union............................ Total Deposits (Time and Demand)............................. Ratio of 1 to 2.................. Ratio of Cash Reserves to Liabilities in the Union ... A. Reserve Bank: Bankers’ Deposits in Re serve Bank.......................... Gold cash reserves and foreign balances.................. Ratio of cash to liabilities in the Union....................... Whole banking system: 8. Ratio cash to total liabilities to the public....................... 2. 3. 4. S. 5. 6. 7. The banks are choked with funds; building so cieties and similar institutions are likewise find ing it difficult to invest profitably. What is the significance of the above situation, firstly in relation to the world position and prospects as previously outlined, and secondly in relation to the internal position? With reference to the first question: it has been shown already that there are reasons for believing that a considerable rise of world prices is possible and perhaps probable—when it will even tuate it is impossible to say, but while the means exist and likewise the desire, the wiU to use them is braked by political uncertainty, monetary instability and a whole series of international re strictions, so that it is unlikely to happen im mediately. But ultimately, the situation in U.S.A. millions at the end of 1935. Through the con version of loans and other operations during the first three years after the abandonment of gold, the annual public debt charge was reduced by more than £1,300,000. Similar operations will result in a further reduction of total debt by £23 millions and of interest debt charges by £200,000 per annum through the repayment or conversion (to a rate of 3 per cent) of both London and Cape loans, so that at March 31, 1936, the total Union debt has been reduced to £251 millions and interest charges by £1.5 million per annum. ‘May Dec. ’32 Jan. '33 Jan. '34 Jan. ’35 J an. 36 June '36 £38.6m. £36.9m. £35.4m. £46.0m. £46.3m. £47.6m. £54.6m. 70.8 £59.6m. 61.9 £83.8m. 42.3 £87.0m. 52.9 £88.4m. 52.5 £86.4m. 55.0 12.7 16.7 38.2 27.4 35.6 29.9 £3.8m. £6.7m. £28.3m. £21. Im. £28.5m. £24. Im. £7.6m. £8.4m. £17.7m. £23.8m. £26.9m. £23.0m 57.2 44.0 40.1 59.3 56.3 51.8 14.7 13.7 19.0 24.6 26.3 22.7* in particular is pregnant with possibilities and unknown factors, e.g., further devaluation and the arbitrary power of the Treasury to do anything considered necessary in America’s interests. Let it be assumed that U.S.A, does not devalue further (that is, thegold price remains at 35 dollars per fine ounce) and that an internal rise of prices takes place in the U.S.A. Under such circum stances, what would probably be the effect on the sterling-dollar exchange rate and on the price of gold? A rise of prices in the United States would tend to reduce the volume of exports and it is hardly likely therefore, that the Federal Reserve Board would operate through the Exchange stabilisa tion fund to maintain the exchange value of the dollar, nor is it, either, likely to curb inflation, for example by sterilising gold and/or raising reserve ratios, as it can under the new Banking Act of 1935—political pressure would almost certainly make that impossible. But a weaken ing dollar would in all probability reduce the volume of British trade so the Treasury and the Bank of England would probably let sterling ‘go out” too, resulting in a rise of prices in Great Britain. Gold would probably also rise in price n terms of sterling (for hoarding and holding purposes) which would increase South Africa’s export balance on visible account and make the already difficult position more difficult still. But a rise in prices in Great Britain would, since we are linked to sterling, almost certainly ulti mately be felt here. We could, if we wished (indeed we might have to) sever the link with sterling, in which case in the South African pound would stand at a pre mium over sterling. Such a possibility can, however, after the currency and exchange ex periences here in 1931-32, be safely ruled out. So that our price level and our costs would rise and it would be a question of a race between the rise in the price of gold and the rise in the cost level—even if it were to reduce the profitability of gold inining, the present margin between selling prices and working costs is on the whole great enough to preclude the probability of much immediate adverse effect. But a rapidly rising price level is not such a phenomenon as we can gnore or treat with contempt. But what of the actual present position? One certainly cannot, in view of the present banking position, visualise at. the moment higher money rates, but can we go on piling up funds as we are doing? Lower short and long term rates of interest would perhaps stimulate enter prise, but judging by past experience not always of the right kind. What possibilities out of the present impasse are open? They seem to be as follows:— 1. An internal rise in prices—this is in any case possible because of our own internal position, indeed prices are already slowly rising—but it would bring considerable difficulties and in any case raise the costs of production of gold mining and is highly undesirable on other grounds. 2. Investment abroad—this is possible, but investment in what? At the moment it is hardly likely and, in any case, foreign capital is being invested here because of the security offered by our gold mines, and from many points of view this is a welcome sign—the risks of min ing are taken by by others and the more foreign investment in this country the less is anything drastic likely to happen to gold in future. It is as well for us to have—ambassadors and friends at court, even if it is a foreign court! 3. We could reduce tariffs and so increase imports, but in so far as a reduction reduces local manufacture it would not be popular and the im mediate effect would probably be an increase in unemployment, though it must be remembered that imports (goods and services) could be of a sort different from those we manufacture at present. 4. Housing could be improved and other amenities undertaken, e.g. slum clearing—this is already being done as building plan figures show, and any further increase might involve dangers of a lop-sided development and cause (Please turn to page 4%) January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 37 New York Foreign Exchange Quotations On January 31, 1934, the President of the United States proclaimed the new United States standard gold dollar to be 15-5/21, that is, 15.23809 grains 9/10 fine, as against the old gold standard of 25.8 grains 9/10 fine, thus devaluing the U. S. gold dollar to approximately 59.06236% of its former value or a reduction of gold weight and value of approximately 40.93764%. The calculations are as follows: (new $) 15.23809 0.03174602 grains =----------------oz. troy 9/10 fine (old $) 25.8------------------ 0.05375 0.028571418 0.8886854088 =----------------oz. troy or-------------------grammes 10/10 fine 0.048375 1.504656 = 59.06236 % Based on this new standard of 15-5/21 grains 9/10 fine, equivalent to a fine weight or pure gold content of 0.8886854 gramme, or $35 per fine troy ounce, the cable rates of New York banks’ selling foreign currencies (as of December 21, 1936) on the principal foreign world financial centres may be explained as follows: LONDON: 4.9106 (that is, U.S.S4.9106 per £1): The British Pound Sterling or gold sovereign of 7.32237916 fine grammes has a gold standard parity with the new U. S. dollar of............................................ (per £1) U.S.S8.2397 New York-London cross-rate, December 21st................. $4.9106 Difference (per £1) $3.3291 Which is equivalent to a depreciation or devaluation of the British Pound Sterling (now off the gold standard, and a ‘‘managed currency”) of approximately......................... 40.40% As the old U.S. dollar has been devalued, as above stated, by approximately................................................................ 40.94% Therefore the devaluation of the old U.S. dollar exceeds the depreciation of the British Pound Sterling by approxi mately................................................................................... 0.54% PARIS: 4-43/64 (that is, U.S.$4.671875 per 100 French Francs): The new French Franc of 0.05895 fine gramme has a gold standard parity with the new U.S. dollar of U.S.S0.066343 per Franc, that is,.............(per 100 French Francs) U.S.$6.6343 New York-Paris cross-rate, December 21st.......................$4.671875 Difference (per 100 Fr. Frcs.) $1.962425 Which is equivalent to a depreciation or devaluation of the French Franc (now off the gold standard, and a "man aged currency”) of approximately............................... 29 58% AMSTERDAM (Holland): 54-49/64 (that is, U.S.$54.765625 per 100 Dutch guilders or florins): The Dutch guilder or florin of 0.6048 fine gramme has a gold standard parity with the new U.S. dollar of U.S. $0.68063 per guilder, that is,...(per 100 guilders) U.S. $68 063 New York-Amsterdam cross-rate, December 21st........... $54.765625 Difference (per 100 guilders) SI3 297375 Which is equivalent to a depreciation or devaluation of the Dutch guilder (now off the gold standard, and a "man aged currency”) of approximately................................... 19 54'7 BERLIN (Germany): 40-1/4 (that is, U.S.S40.25 per 100 Reichsmarks): The German monetary unit Reichsmark of 0.3584222 fine gramme has a gold standard parity with the new U.S. dollar of U.S.S0.40335 per Reichsmark, or (per 100 ,Reichsmarks).............................................................. U.S.$40.335 New York-Berlin cross-rate, December 21st......................S40 25 Difference (per 100 Reichsmarks) $ 0 085 Which is equivalent to a depreciation of the Reichsmark of approximately................................................................ 0.22'J SHANGHAI (China): 29 11/16 (that is, U.S.SO.296875 per “Yuan” or Chinese dollar): The Chinese silver standard dollar has a fine weight or pure silver content of 23.493448 grammes which is equivalent to 0.756086 ounce troy 0.999 fine. With London silver at 21-5/16 pence (at the approximate cross-rate of 491.36) equivalent to New York silver price of 47-1/8 cents gold per ounce troy 0.999 fine, the New YorkShanghai parity is.....................................(per yuan) U.S.SO.356306 New York-Shanghai cross-rate, December 21st................ $0.296875 (Difference (per yuan) SO 059431 Which is equivalent to a devaluation of the “yuan” or Chinese dollar (now off silver standard, and a “man aged currency”) at the present price of silver, of approx imately .................................................................................. 16.68% YOKOHAMA (Japan): 28-1/2 (that is, U.S.SO.285 per yen): The Japanese gold yen of 0.75 fine gramme (of identical weight and fineness as the Mexican gold peso) has a gold standard parity with the new U.S. dollar of (per yen) U.S.SO. 843943 New York-Yokohama cross-rate, December 21st (say).. $0.285 Difference (per yen) $0.558943 Which is equivalent to a depreciation or devaluation of the yen (now off gold standard, and a “managed cur rency”) of approximately.................................................. 66.23% The French franc should be distinguished from the Belgian franc and the Swiss franc, both of which are of different weight and value from the French franc. The Belgian franc, with a fine weight and pure gold content of 0.04184 gramme and a parity with the new U. S. dollar of $0.04708 per franc, was, by decree of the Belgian Government on March 31, 1934, devalued to 0.03013 gramme with a new parity with the U. S. dollar of $0.0339 per franc. This means that the Belgian franc was devalued, or reduced in gold weight and value, by approximately 27.989% of its former value before the suspension of its gold standard on March 29, 1934. One Belga equals five (5) Belgian francs. The Swiss franc (of identical weight and fineness as the Spanish gold Peseta), with a fine weight or pure gold content of 0.2903225 gramme, has a gold standard parity with the new U. S. dollar of $0.32669 per franc. The Swiss Government has, however, suspended its gold standard and, on November 3, 1936, announced that it would adhere in principle and prac tice to the new tripartite gold agreement between the United States, Great Britain, and France, and to take the same meas ures as these three countries for fixing the price of gold. Philippine Trust Company thru its correspondent banks, executes orders for the purchase or sale of stocks and bonds on the New York Stock Exchange and other exchanges in the United States. It also sells drafts and cable or radio transfers for the payment of money anywhere in the United States, the principal cities of Europe, China and Japan. Fidelity and Surety Company of the Philippine Islands executes and covers BONDS INSURANCE Court, Customs, Firearms, etc. Fire, Marine, etc. Plaza Goiti and Escolta IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 38 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 DECEMBER SUGAR REVIEW By GEO. H. FAIRCHILD New York Market: The firmness of the market at the opening of the month under re view which resulted in a fairly large volume of business being done at prices as high as 3.83 cents, was soon adversely affected by rumors, which were subsequently shown to be unfounded, to the effect that the AAA had intended to in crease 1937 quotas by 500,000 tons. As the 1937 quotas were not announced until the 12th, this uncertainty influenced the market to a large extent, thereby contributing to holders pressing sales and the consequent decline in prices during the first two weeks of the month. 1 he first signs of holders’ discouragement oc curred on the 4th when two cargoes of February shipment Puerto Ricos were sold at 3.75 cents, Protect Your Vision "Adj vision is nearly perfect, but---This is the story we hear from many men of mature years. They go on to say, “but these eyes of mine have been cared for with proper lenses for years”.................Come in today for an examination. Protect your vision with proper care. Ever the best in quality but never higher in price while during the first two days of the second week small sales of afloat Philippines and Feb ruary shipment Puerto Ricos were made at 3.70 cents. The slight improvement during the rest of this week was credited to the entry of operators into the market beginning on the 9th when, after small sales of January-February shipment Philippines were made at 3.75 cents, sellers indi cated 3.80 cents. Small sales of Cubas for pre sent shipment were subsequently made during the week to operators and refiners at 2.87 cents. The announcement on the 12th of the initial quotas for 1937 amounting to 6,682,670 short tons, representing an increase of approximately 250,000 tons over the initial 1936 quotas, instead of the rumored 500,000 tons, had a favorable effect on the market. After small sales of Jan uary shipment Cubas and of April-May ship ment Philippines were made on the 15th at 2.90 cents and 3.83 cents, respectively, however, the market became quiet with buyers retiring. Small sales'of February-March shipment Puerto Ricos were made at the close of the week at 3.80 cents, with the market showing a firmer tendency. With the revival of the buying interest of operators, the 4th week opened auspiciously with small sales of present shipment Puerto Ricos to refiners at 3.81 cents and fairly large sales of March-April-May shipment Philippines at 3.83 cents during the week up to the Christmas Eve, when refiners re-entered the market. A small sale of February-March shipment Philippines was made at 3.85 cents, at which level business was done in Puerto Ricos for March-April-MayJune shipments. The improvement of the market continued after the Christmas holidays and a large volume of business in Puerto Rico and Philippine sugar for January-February shipment was transacted at 3.90 cents, with both refiners and operators buying. At the end of the month, prices further advanced to 3.95 cents for March shipment Puerto Ricos and April-May shipment Philip pines, while at the close Philippine holders were offering 4,000 tons of March-April shipment Philippines at 3.97 cents without finding buyers thereat. The improvement in sugar prices was credited in some quarters, at least partially, to the strike situation in the Pacific coast which has seriously disrupted the freight and shipping situation throughout the world. Futures: Quotations on the Exchange during December fluctuated as follows: BEARBRAND NATURAL SWISS MILK Latest 3.04 3.01 3.03 3.04 3.05 3.03 January........... March........... May................. July................. September. . . . November.. . . Slocks: The latest statistics of world stocks were 4,265,000 tons as compared with 5,395,000 tons at the same time last year and 6,255,000 tons at the same time in 1934. Philippine Sales: Sales of Philippine sugar afloat and for future delivery during the month amounted to 66,300 long tons at prices ranging from 3.70 to 3.95 cents, while resales amounting to 16,000 tons for January-FebruaryMarch shipment were made at 3.80 cents. Local Mark t: The local export market opened during the month with exporters quot ing P8.80 per picul ex-godown, after a fairly large sale was made at 1*9.00 per picul the week previously. Prices sagged down to P8.50 the following week but later reacted to P8.65 in sympathy with the improving tendency of the New York market, although holders’ ideas were set at not less than 1*9.00 per picul. The local market was affected by the scarcity of space at the conference lines’ rate of S8.00 per ton, and shipowners indicated the rates of from $10.50 to $12.00 per ton to guarantee shippers space. Exporters accordingly reduced their quotations to P8.50 per picul during the third and fourth weeks at which level no business was done. In view of the advancing sugar values in New York, exporters quoted during the last week P8.65, with sellers remaining uninterested. The market for domestic consumption sugar was dull throughout the first three weeks of the month under review with the nominal quotations remaining stationary at 1*7.50 per picul for two weeks and then reportedly declining to P7.00 for old-crop sugar during the third week. The disciplinary action taken by the Domestic Sugar Administration during the fqurth week in im pounding several shipments of domestic sugar from the South on arrival in Manila for alleged violation by certain centrals of the Sugar Limi tation Act, caused some Chinese dealers to enter the market and buy their requirements at 1*7.50 per picul ex-ship Manila. Prices however, again declined during the last week to 1*6.90-1*7.00 per picul ex-ship Manila. Philippine Exports: According to reliable advices, Philippine sugar shipments to the United States during December amounted to 76,902 long tons of centrifugals. The total ship ments to date of the centrifugal and refined sugar are as follows: Centrifugals Refined. .. T IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 39 COPRA AND ITS PRODUCTS ’ By KENNETH B. DAY and LEO SCHNURMACHER Kenneth B. Day 1936 went out in a blaze of glory as far as copra and coconut oil markets were concerned. During December both copra and oil advanced about 20% over November levels and at the end of the year copra was more than double its early January price, and coconut oil prac tically double. Copra—Copra arrivals in December were slightly higher than those in November but fell approximately 30% short of December 1935 arrivals. In fact, they were short of the 10-year average. When November ended, copra was fairly firm at P 16.25 for resecada in Manila. During Leo Schnurmacher the month of December the price went up steadily and without a check to a high of 1*20.50 at the very end of the yeir. At all times there were more buyers than sellers, and with America asking for spot oil and willing to pay fancy prices for it, there was every incentive for buyers here to concede in the matter of price, thus falling into the hands of speculators with ac cumulated stocks. The accumulation of stocks, however, is now becoming a problem, for with copra at over 1*20.00 any volume of copra re presents a large financial investment. In the United States, Pacific Coast crushers increased their ideas during the month from 4.25 cents to 5.25 cents. Crushers were somewhat handicapped, however, by lack of space, the strike on the Pacific Coast beginning to make itself evident through shortage of space. There still was some tonnage available, however, and crushers did their best to fill up this tonnage in anticipation that it would be hard for them to ship in January and February. The European market varied from a low of £18/17/6 to a high of £22/10/0, but at no time did this market seriously threaten to take much business away from the Pacific Coast and local crushers, whose prices were always at least £2 higher than European buyers were offering. Copra exports were somewhat below expect ation, but very little empty space available for copra left the Islands. Statistics for the month follow: Arrivals— Bags Manila............................................... 292,048 Cebu........................................ ,. ... 296,214 Shipments— Pacific Coast.. Atlantic Coast Gulf Ports.... Tptal. Stocks on hand— Manila.............. Cebu................. 17,572 Beginning End of of Month Month Tons Tons 24,641 22,363 18,793 17,317 WORKMEN’S COMPENSATION PUBLIC LIABILITY AUTOMOBILE 1 ---- ------ATLAS ASSURANCE CO. LTD. CONTINENTAL INSURANCE CO. Coconut Oil—The big feature in the coconut oil market for December was the premium available for spot oil. At the beginning of the month coconut oil was selling at 6-3/4 cents c.i.f. New York and 6-1/2 cents f.o.b. Pacific Coast. These prices gradually climbed to a point where by the end of the month oil could be sold at 8-3/8 cents on the Atlantic Coast and 8-1/4 cents on the Pacific Coast. These prices were too low in comparison with copra equi valents, but spot oil was commanding a premium anywhere from 1/8 of a cent to 1/2 cent over forward positions and it was these spot prices which determined the copra market in the Philippines. The demand for oil was, as recent ly, very spotty; but peculiarly enough there was some demand from soapers in a small way, with refiners who were fairly well supplied with stocks showing a temporarily lessened interest. It is anticipated that refiners will have to come in later on and may be forced to pay higher prices thereby. Statistics for the month follow: Shipments— Metric Tons Pacific Coast..................................... 1,400 Atlantic Coast................................... 6,998 Gulf Ports......................................... 1,499 China and Japan............................. 11 Other Countries............................... 1 Stocks on hand in Manila and Cebu. Beginning of Month 'Pons 6,847 9,909 End of Month Tons 9,708 INSURANCE For Every Need and Purpose ORIENT INSURANCE COMPANY INSURANCE COMPANY OF NORTH AMERICA General Agents E. E. EIME. INC. Telephone 2-24-28 — MANILA — Kneedler Building Copra Cake and Meal—In spite of the fact that large stocks of meal were lying afloat off Los Angeles and other Pacific ports, an unex pected demand for copra meal made its appear ance along toward the middle of December and boosted the price from S27.00 to S30.50 per short ton c.i.f. This demand was for future ship ments up to May and June and was fairly heavy in volume. The European copra cake also advanced from S30.00 to around S34.00—but these prices, which work out approximately 1*46.00 per metric ton f.o.b., were less attractive than those obtainable for meal, and sellers were sufficiently covered with forward business to make it unnecessary to unload stocks at what appeared to be comparatively unfavorable prices. It is anticipated, however, that some selling interest must develop in copra cake to Europe in the early part of 1937, when presum ably meal will be less in demand owing to the proximity of Spring. Statistics for the month follow: Shipments— Metric Tons Pacific Coast..................................... 2,721 Atlantic Coast................................... 1,029 Gulf Ports......................................... 2,790 Europe............................................... 4,351 Total............. ................................. 10,891 Stocks on hand in Manila and Cebu........... Beginning End of of Month Month Tons Tons 7,248 4,120 D siccat d Coconut—The increase in the value of copra has caused a corresponding in crease in the price of coconuts for desiccated. While the sales price of desiccated in the United States has firmed considerably, it has not kept pace with the cost of nuts. Desiccated factories are finding it difficult to secure sufficient nuts even at increased prices. In addition, the marine strike in the United States has cut down available shipping and has forced a considerable quantity of desiccated to be routed through {Please turn to page 40) FIRE MARINE ACCIDENT PLATE GLASS THE EMPLOYER’S LIABILITY ASSURANCE CORPORATION LTD. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 40 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 LUMBER REVIEW By FLORENCIO TAMESIS Director, Burtau »f Forutrj Lumber and timber exports in October fell 36% below the September figure but was 65% greater than in October, 1935. Japan’s consumption of logs continued comparatively heavy. Log exports to this market constituted 70% of the total lumber and timber exports during the month under review. For the first time, shipments of logs, amounting to 1,604,416 board feet, were made to Korea. An in crease in Japan’s already large consumption of logs is expected in the next few months as several licensees or concessionaires dealing with Japanese importers are putting up addition al machineries in their concessions with the view to increasing production. Demand in the United States in October registered a decline of 40% from the previous month and 15% below October last year. Ship ments are being greatly affected by the maritime strike in the above country. Difficulties in finding bottoms for the Pacific Coast and even for the Atlantic Coast are being encountered by local exporters. Shipments to China during the month under review consisted entirely of sawn lumber, amount ing to 183,168 board feet. This is 402% greater than the October figure last year, but is consider ably below the previous month, which amounted to 5,860,104 board feet. The total exports to China in September was, however, considered to be unusually large. Shipments to Australia in October consisted of 88% logs and 12% sawn lumber, totaling 179,352 board feet. Total exports to Europe during the month under review declined slightly from the October figure in 1935, but was 2-1/2 times greater than the previous month. The • increase was chiefly due to larger shipments made to Great Britain and Ireland. The local markets continued strong and prices are on the upward trend. Mill production in October registered a slight increase compared with the same month in 1935. Mill inventories increased about 3,000,000 board feet compared with October last year. The following statements show the lumber and timber exports, by countries, and the mill pro duction and lumber inventories for the month of October, 1936, as compared with the corres ponding month of the previous year. Lumber and Timber Exports for the month of October 1936 CustomsDestination Board • Feet Declared Value Japan........................ .. @13,297,064 1’240,512 United States.......... ... 2,117,456 147,253 Korea........................ . .. 1,604,416 32,484 Great Britain.......... 895,064 69,718 British Africa.......... 392,624 25,550 China........................ 183,168 9,297 Australia................... 179,352 5,891 Ireland...................... 46,216 3,474 Hawaii...................... 28,832 3,665 Portuguese Africa... 25,440 1,274 Norway..................... 13,144 1,036 Belgium.................... 18,656 1,561 Singapore....................... 2,968 800 Sweden........................... — — Hongkong....................... — — Total................... . 18,804,400 1*542,515 1935 CustomsDestination Board Feet Declared Value Japan.......................... 6,710,224 P 108,613 United States............ 2,510,504 182,892 Korea.......................... — — Great Britain............ 930,680 71,275 British Africa............ 215,816 12,573 China.......................... 36,464 1,816 Australia..................... 864,536 47,325 Ireland........................ 81,832 7,189 Hawaii........................ 848 80 Portuguese Africa... . — — Norway....................... 13,568 2,361 Belgium...................... — — Singapore.................... — — Sweden........................ 7,208 963 Hongkong................... 424 45 Total................... .. 11,372,104 P435.132 Not:-: This represents mostly solid log scale, that is, 424 board feet to a cubic meter. For 50 Mills for the month of October Lumber Deliveries Month from Mills 1936 1935 Oct................................. ,19,329,336 20,550,345 Lumber Inventory Oct................. 1936 ............. 43,071,260 1935 40,732,316 Mill Production 1936 1935 Oct................. ............. 21,556,244 21,266,517 Not/: Board Feet should be used. Copra . . . (Continued from page 39) Canadian ports, which increases the expense of shipment. Shipments for the month totalled 2,594. metric tons. All of these factors are cutting down pro duction and apparently will further decrease production in the near future. G n hai.—-1936 w:is on the whole a larger copra year than 1935, arrivals being approx imately 5% over those of 1935. This increase, however, was very unevenly distributed, the first half year showing an increase of 25% and the second half year a decrease of perhaps 8%. This factor upset trading conditions a good deal because in the first half of 1936 European buyers absorbed much of the Philippine production with American buyers laying back for the larger supplies expected the second half. When these larger supplies failed to materialize, and in fact proved short, this combined with the drought, the rising prices in all commodities the world over, and a desire to build up stocks, was res ponsible for the situation whereby copra and co conut oil advanced as they have not since 1920. 1936 should have been a good year for producers, and probably was. For mills it was an average year, for most mills could not afford to speculate on what appeared to be an unreasonable market. Prospects for 1937 are dubious. It is pro bable that copra will be short, particularly in the North part of the Islands for the first half year. In the second half year there should be a good deal of copra, but it is then entirely possible that the present demand for spot oil will not continue, for by that time America’s own supplies of oils and fats will be replenished. It is a significant fact that although imports into the United States of oils and fats in the past two or three years have been increasing by leaps and bounds, the only important commodities not sharing in the increase have been coconut oil and copra. More and more, copra and coconut oil are feeling a competition of other more cheap ly produced oils and fats, and the higher prices go the narrower becomes the use of coconut oil and copra. It is very necessary, therefore, to watch the situation closely, for there can be no assurance about prices in 1937, although for the first few months at least the prospects look favorable. Annual Meeting The annual meeting of the Chamber of Com merce for the election of three directors in the board of nine, and for other purposes, is set for 5 p. m. Friday, January 29. The secretary has mailed notices to all active members and inclosed proxies that should be executed and mailed back to him in the event a member will not be at the meeting. Tell It to the Judge Only occupied vehicles are allowed on the Escolta. No cruising taxicabs one way. Cars and carromatas, ’ware one way streets unless going the right way. Tuesdays and Saturdays are market days. There’s plenty of traffic, and the fine for ob structing it—P2.50. But speeding is an offense, too. The moral of And Sudden Death is enforced by the curt words “P20.00”. Calesa ponies that are hurt or lame take their drivers to the Municipal Court of Judge Locsin at Bonifacio and Aduana, if the vehicle squad is nearby. Yet with only 10 men, the job is only begun. Parking had better be done according to rule, because if not, it gets in the hair of the traffic squad. They want to teach all drivers the new ways. Once the lesson is finished, know your stuff or else I Average Metal. . . (Continued from page 32) (By United Press) NEW YORK, Jan. 19.—The market for man ganese and chromite continued firm today, prices temaining at the levels established last month. Closing quotations today: MANGANESE: 22.4 per pound, C.I.F. South African, 48-51 per cent, 30. Brazilian, 46-48 per cent, 25. CHROMITE: Long ton, C.I.F.— Indian, 45-47 per cent, $16.75-17.00. Russian, 48-50 per cent, $19.00-195.0. January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 41 SHIPPING REVIEW By H. M. CAVENDER General Agent, The Robert Dollar Co. From statistics compiled by The Associated Steamship Lines, during the month of November there were exported from the Philippines the following: To China and Japan............................ Pacific Coast Local Delivery........................................ Pacific Coast Overland................................................... Pacific Coast Interroastal.............................................. Atlantic and Gulf........................................................... European Ports................................................................ All other Ports................................................................ Were Carried in Mi TFilA iscrllaneous ztmerican BotOf Which toms With Tons Sailings Tons Sailings 68,357 39 603 4 32,115 15 19,314 7 730 10 184 3 823 5 607 4 66,438 22 21,683 7 8,173 17 289 4 2,104 23 212 4 A Grand Total of 178,740 tons with a total of 82 sailing (average 2,180 tons per vessel) of which 42,892 tons wen- carried in American bottoms with 12 sailings (average 3,574 tons per vessel). November shipments, 178,740 revenue tons, exceeded October ship ments by 24,480 tons and also exceeded No vember 1935 by 14,311 tons. The trade to the United States was handi capped by labor con ditions on the Pacific Coast, the strike of water front laborers and vessel personnel assum ed seriou* projxntions. Sugar shipments amounted to 26.999 tons only, the beginning of the 1936-1937 movement. Indications point to a shortage of tonnage due to an unusual demand for charters to m >ve rice beans, wheat and corn from other ports of the World. Shippers found it difficult to book their sugar requirements for the first quarter of 1937. Coconut products show a decidedly healthy condition. 21,194 tons of oil went forward to the United States. The United States took 22,668 tons of copra, Europe 150 tons, a total of 22.818 tons as against 7,888 tons in October. Cake and meal shipments to the United States were 7,149 tons—to Europe 2,475 tons, and to China 50 tons, a total of 9,674 tons, slightly less than October. Desiccated Coconut shipments were only 4,869 tons—the smallest month’s business since March 1936. Hemp shipments increased 4,200 bales over October business. Japan took 53,183 bales and still leads all other buyers. The United States took 29,241 bales—Europe 35,131—and 4,043 bales were scattered thfuout the world. Lumber and log movement amounted to eight and three-quarter million board feet. Japan took 4-1 2 million feet of logs. The United States took 3-1, 4 million feet of sawed lumber. Africa wa< a heavy buyer as 482,415 feet went to that district. Europe took 395,128 feet— Australia 40,983—China 68,000 and Canada 32,000 feet. This product is quite widely dis tributed. Japan took her monthly lot of Iron Ore—49,530 tons. 3,904 tons of chromite and manganese went forward to the United- States. Several sample shipments went to other markets. Cigar shipments totaled 564 tons and tobacco 300 tons only. Furniture—194 tons (40 cu. ft.) as against 560 tons in October is not a satisfactory showing. No molasses moved during November. A shipment of 1,263 tons of canned pineapple went forward. Vegetable Oil edible products amounted to 261 tons only. Gums, shells, and cutch show slight increases while embroideries, junk, kapok, rubber and hides decreased. These minor product movements on the whole were dis appointing. Passenger traffic for the month of November 1936, compared with October, shows an increase in first class traffic. Intermediate traffic declined slightly and third class traffic decreased consider ably. (Please turn to page 48) I 17all* Seasons Travel the Scenic Route VANCOUVER ^gSgVICTORIA OK ANE LOWEST ROUND TRIP FARES FOR MANY YEARS to all points in Eastern United States. Return limit six months. NORTHERN PACIFIC ____ fO RAILWAY The oldest railroad crossing Northern United States . . . The route famed for its natural beauty............................... The route of superior comfort—winter or summer .... The route of smooth, roller-bearing locomotives and cars The route of the COMPLETELY AIR-CONDITIONED NORTH COAST LIMITED with its baths, library, buffet, card rooms, radio, luxurious observation lounge, private rooms en suite, box spring beds, newest and finest sleeping cars and "famously good" meals No dust or cinders, temperature and humidity controlled to exactly the right degree for genuine comfort. Low one way and round trip fares on sale daily with long return limits Winter Tourist Fares allow six months' re turn limit Fast trains daily between Seattle and Chicago. North Coast Limited leaves Seattle, 8:30 p C L TOWNSEND. General Passenger Agent, Smith Tower. Seattle, Washington NORTHERN PACIFlE RAILWAY IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 42 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE RICE INDUSTRY By PERCY A. HILL of Munoz, Nucva Ecija Director, Rice Producer's Association Prices of luxury rice range from 1*5.45 to 1*6.55 per sack of 56-1/2 kilos with palay of that grade from 1*2.30 to 1*2.40 per cavan of 44 kilos. Macans from P4.85 to 1*5.40 per sack with palay of that grade from 1’2.25 to 1’2.30. The latest Sai gon quotations for grade No. 2, is 1’7.05 per sack laid down Manilaalldutiespaid, with some stocks of the Saigon imported article still unsold. Strictly speaking there are no Macans on sale in the general market, except in very small quantity. Threshing reports to date in the Luzon Plain show a very fair to good crop according to local ity, but more will be known in next report. A plentiful supply will of course not require any or very little importations for this next year. So far the price of macans has held quite close to the line suggested by the NARIC (Rice and Com Corporation) offerings being from 1’2.25 to 1*2.30 but of course can only be maintained so long as the corporation can buy at the price suggested. So far as is known only about 100,000 cavans of palay have been purchased, the impasse being a lack of local warehouses and of ready cash to make purchases from those who are forced to sell. Very naturally the Corporation will have to face the problems that face ordinary business, with certain privileges. If all the capital primarily set apart for this entity were now avai'able it would go far in stabilizing the minimum price in the principal buying regions concentration of course, being in those districts with large quantities of the cereal for sale. It is understood that the spread of 1’0.25 is for the macan grades, the luxury classes not being very desirable for supplying the masses later in the season. The restricted local amounts proposed to be bought in the smaller producing town will have little or no effect unless these are arranged to buy supplies as offered, in fact, if these are not so purchased it will weaken any effect of what the corporation was established for—the stabilization of supply and price. MANILA HEMP By H. P. STRICKLER Manila Cordage Company During December, the Londqn market atrengthened further as a result of trade demand, and prices advanced steadily on practically all grades. This strength in the London market finally influenced both the American and Japanese markets, where a similar advance in values took place, and the market closed active and stronger on all grades. All local markets responded to the foreign demand, and during most of the time, local values were considerably higher than the pari ties of foreign prices. Continued small pro duction throughout the abaca producing dis tricts lent a special incentive to the higher prices asked by producers and dealers. Prices of Loose Fiber ii November 30th n Manila Per Picul December 31st CD............. 1’25.00 CD....... . .. P28.00 E. 21.50 E 23 00 F. .............. 18.50 F.......... 21.00 I.. ............. 17.00 I.......... 19.00 JI. ............. 15.50 JI........ 16.50 G. ............. 14.50 G......... 16.75 H. ............. 13.50 II......... 15.50 J2. ............. 14.50 J2........ 16.00 K. ............. 13.25 K......... 15.25 LI .............. 12.75 LI........ 14.75 L2 .............. 10.25 L2........ 13.00 Prices of Loose Fiber ih Davao Per Picul November 30lh December 31st F. .............. P18.75 F.......... ... 1*22.50 I.. ............. 18.00 I.......... 21.50 S2. .............. 17.00 S2........ 20.00 JI. ............. 17.50 JI........ 20.50 G. ............. 16.00 G......... 19.00 H. ............. 13.50 H........ 16.00 J2. ............. 15.75 J2........ 19.00 K. .............. 14.50 K......... 16.75 TOBACCO REVIEW By P. A. MEYER Rawl‘:af: The central and upper parts of Isabela province were visit ed by an enormous inundation at the beginning of the month. However, as most of the tobacco of the 1936 crop had already been sold, tobacco losses through wa ter damage affect ed buyers more than farmers. In some districts considerable damage was done to seed beds, thus probably resulting in reduced tobacco acreage for the 1937 cr^p. Comparative ship ments abroad were as follows: Australia and New Zealand..................... Austria and Czechoslo vakia......................... Belgium and Holland. China, Hongkong and Manchoukuo............ France, option other ports......................... Gibraltar....................... Japan, Korea and For mosa ......................... Java and Malaya........ North Africa............... Spain............................. Kawleaf, Stripped Tobacc December o and Scraps Kilos Year 1036 1936 13,768 6,357 1,041.582 128,623 59,816 379,563 1,816,090 14,160 1,816,090 34,966 121,981 2,305 31,067 1,416,811 18,652 383,150 6,286,341 United States............ 129,928 1,009,781 Various......................... 16,363 2,183,129 12,545,690 November 1936........... 156,039 December 1935........... 1,751,051 Year 1935.................... 18,517,176 Year 1934.................. 14,024,614 Cigars: Business with the United States continues lagging due to insufficient shipping opportunity caused by the maritime strike. Comparative figures of shipments to the United States and abroad are as follows: U n ited Other States Countries December, 1936. . 10,503,060 836,010 November, 1936.. 11,151,085 1,697,994 Year 1936. . 164,905,078 14,637,306 Year 1935. . 208,676,183 15,771,427 Year 1934. . 208,268,782 15,352,252 Cheap Money .... {Continued from page 36) anxiety when the building boom slackened off as it probably will shortly in Great Britain. 5. Even more oversea debt could be paid off, but reasons have already been advanced in para. 2 for believing that it is wise to have certain oversea creditors on Public Debt account. 6. New industries might be started, but our market is at present, small and the pace of in dustrialisation can, as previous figures show, hardly be accelerated with safety; moreover, the ultimate effect of a too rapid industrialisation might be to reduce the relative volume of im ports and still further increase oversea balances. 7. There remains one further possibility— a gradual improvement in the economic position of the lower classes, unskilled European, the natives and coloured. There are dangers even here. But a solution partly along these lines seems to offer most possibility of permanency and an improvement in distribution and an ex pansion of the local market is desirable on other grounds. For where an increase in wages in creases efficiency, costs of production should ultimately fall. While therefore I look to a continuance, for some time, of the present favourable position of South Africa, it is obvious that there are dangers. Cheap money looks like continuing for a period—indeed, present banking figures wiSthl, ajmost warrant a further fall in money rateSjCJgrf when the secular rise of prices does take pRtCe, interest rates will also rise, though they may not rise sufficiently in the early stages to offset the rise in prices. It would be idle to prophesy at what price gold will ultimately be stabilised, but we must remember that South Africa is thriving because of the present atmos phere of world distrust, which pushes up the price of our chief product. No country is more vitally concerned than is the Union in a return to stable conditions—some form of the inter national gold standard—and a reduction of all those artificial barriers which impede trade and restrict exchange. At present we are in a highly favoured position but there are signs that the inevitable pressure of events may produce a secular rise in world prices with unfavourable reactions. While appreciating our favoured position, our policy should be directed (even though it may help little) towards a return to a condition of things which realises the ultimate and final interdependence of all countries through out the world. We add that al) that relates to South Africa in this gold question relates equally to the Philippines as a considerable producer of gold, making a study of Dr. Richards’s whole paper from our December issue and concluded here, germane to our leaders in mining.—Ed. January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 43 REAL ESTATE By P. D. CARMAN Addition Hillt As will be seen from the following totals, 1936 sales exceeded those of any year since 1919. A very marked improve ment over 1935 or any very recent year will be also noted. While prices in general are still considerably below those obtained prior to the Depression, there has been noticeable improvement during the past year. An acute housing shortage is very evident particularly in the better type of prop erties and construction of new buildings has recently been greatly accelerated. 1935 strong material construction valued at 1*2,648,900, January to November inclusive, was practically doubled in the same period of 1936 with a total of 1*5,223,840. It is improbable, however, that new construction will, in the near future, catch up with the demand created by Manila’s growth in population, increasing prosperity and con struction greatly retarded during the last seven years. 1937 gives decided promise of continued improvement in real estate activity both as to volume and price. Sales City of Manila November December 1<»3G 193G Sta. Cruz..................... 1* 174,394 1* 130,320 Sampaloc..................... 27,306 21,237 Tondo......................... 407,947 119,302 Binondo....................... 12,500 380,500 San Nicolas................... 2,000 49,000 Ermita.......................... 106,500 567,446 Malate.......................... 452,000 309,676 Paco............................. 100,462 19,000 Sta. Ana....................... 20,414 17,638 Quiapo.......................... 17,500 2,446 San Miguel................... 11,586 118,831 Intramuros................... 12,000 —— Pandacan..................... —— 8,740 Sta. Mesa..................... 14,946 ,^00 P1.359J>55 P£,748,936 (Note:—Direct transfers in payment of debts are included. Such transactions have been steadily diminishing. Centavos in all cases are disregarded, if under P.50 but, if over, are counted as one peso. Totals are thus affected very little. Occasional transactions whose values are registered at one peso reduce totals as they obviously do not represent actual values.) 1932 ........................... 9.857,937 1933 .............................. 11,755,282 1934 .............................. 12,466.897 1935 .............................. 15,403,079 1936 .............................. 18,557,530 Total for 1935 193G Sta. Cruz.................. 1* 3,069,158 P 2,752,261 Sampaloc.................. 1,640,718 2,734,179 Tondo....................... 1,535,826 1,769,232 Binondo................... 921,083 3,906,110 San N icolas.............. 1,966,612 627,488 Ermita...................... 611,800 1,285,873 Malate...................... 1,460,963 1,886,588 Paco.......................... 444,281 732,007 Sta. Ana................... 321,430 477,992 Quiapo...................... 2,813,733 664,532 San Miguel............... 123,089 666,944 Intramuros............... 400,008 426,198 Walter A. Beam, well-known in the Philippines as one of the early organizers of Benguet Conso lidated, was visiting in Manila for the stay of the Clipper. Greeted heartily by his many friends, he left, again via the skyway. Arriving to join the technical staff of Union Management, Earl Williamson finds many simi larities in Island life to South America, especially Men Downtown That home and garden which you always dreamed of— SAN JUAN HEIGHTS is the best place for it. Pandacan................. Sta. Mesa................. San Felipe Neri....... San Juan del Monte. 39,721 462,664 54,157 162,332 500 630 ----- 2,500 1*15,403,079 P18.557.530 1920 ........................... 1*17,677,811 1921 ........................... 8,227,859 1922 ........................... 10,082,089 1923 ........................... 10,277,448 1924 ........................... 13,038,861 1925 ........................... 15,404,742 1926 ........................... 12.710,666 1927 ........................... 11,995,124 1928 ........................... 16,884,814 1929 ........................... 18,110,918 1930 ........................... 16,922,288 1931 ........................... 18,523,382 San Juan Heights Co., Inc. P. O. Box 961 — 680 Ave. Rizal — Tel. 21501 Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 44 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 Chile and Peru where he spent some years; but much contrast to Newfoundland where he has also resided. Judge Frank B. Ingersoll is seen again after arrival from a round-the-world trip, and the realm of athletics in particular welcomes his return. Another visitor to Europe was A. Beckerleg, Marsman vice-president, who spent some time there in the interests of his organization. Metropolitan Insurance director Ramon Aboitiz and family returned from a European vacation. Back to the managing partnership of Inhelder Walch, Hermann Inhelder brings views of the present turbulent European situation. Any reader is hereby authorized to submit a list of the ten highest-paid Manilans, following Congress’ list of high-salaried homefolk. The first ten of the Congressional report were, in order, William Randolph Hearst ($500,000), Mae West, C. W. Guttzeit (steel executive), A. P. Sloan (president of General Motors,) Marlene Dietrich, Winfield Sheehan (Twentieth CenturyFox), William Knudsen (vice-president of Gen eral Motors), Bing Crosby, B. D. Miller (pres ident of Woolworth interests), Thomas J. Wat son (International Business Machine Corpora tion). Unless the arts of Thespis and Apollo rank' along with business, our fair city would seem to be a trifle behind the times. W. F. McCandlish of Engineering Equipment and Supply left Manila via clipper after some months of special technical advisorship in the islands. As manager of KZRM and KZEG, Tommy Worthen will again be heard on the air, and has already announced sizeable improvements for radio audiences. Dr. Murray Bartlett, former president of Uni versity of the Philippines, is again here, busily fulfilling invitations to address gatherings at campus and club. Manila Electric’s H. A. Deymek and J. G. Owen return to their desks after invigorating vacations in America. Colonel H. H. Andreas brought back both tiger and leopard skins from a 2-months hunting trip to French Indo-China and South China, but those trophies were practically insignificant compared to the size of the “ones that got away”. J. R. Carmichael of J. P. Heilbronn Company spent most of a 6-months’ leave in England, arriving back via the United States. Of the Boston publishing house—Little, Brown—L. H. Putney came to visit this farthestflung American reading public and school system. J. F. Berkenkotter is visiting brother “Ben” Berkenkotter, plans to stay indefinitely. To be with Union Management, H. N. John son arrived from Los Angeles, home stamping grounds when not in Australia or New Zealand. J. M. Forbes joins the mining crowd, will work under Jimmy Baker who directs the Opisso mining interests. Polo and the opening of Los Tamaraos brought to Manila sundry American and Australian riders of note—Hopping, Blockey, Finlay, Hen derson, Allison, Bragg—but to the brothers Elizalde went first-game honors. Larry Enos of Kelvinator spent 2 weeks in the islands during holiday season, and to the festi vities of Christmas, Rizal Day and New Year’s added his birthday merrymaking. In Manila for a short stay was C. I. Barr, manager of Canadian National Railways’ office at Hongkong. S. Greilsamer of Paris made his annual visit to Manila in the interests of trade. A. T. Gillespie visited his company’s quarters here, found things thriving. New arrivals for the National City Bank staff are R. C. Russell and George L. Hill, who with their families will be permanent residents. Sidney Baxter and Mrs. are off to Hongkong where he will be manager of L. R. Nielson branch. British ConsuLGeneral Blunt was welcomed back to Manila but announced he remains for a short time only, pending other assignment. Consul General Willoquet Returns Eight months of traveling bring the Consul Genera) of France back to his post in Manila. Rested, freshened and even more genial—if that be possible—Mr. Willoquet reports a delightful trip. Leaving the new French motorship on which they journeyed from Hongkong to Suez, the Willoquets motored to Cairo, and after viewing Egypt entrained for Jerusalem. They arrived in the midst cf the Arabian riots. Nothing daunted, the Willoquets set out by car to see Nazareth. Time after time, Arab bands stopped the car. Repeatedly the Arabian driver explained who the occupants were, and they were allowed to proceed. Finally, along the road, a British officer hailed them, and marvelled that they had been unmolested. “Courage?” questioned Mr. Willoquet, with a shrug of the shoulders. “It W'as the same as in the war. When you returned, to your sur prise you found yourself a hero!” (Tradition ally, he wears in his lapel the inconspicuous crimson thread that proclaims him of the Legion of Honor.) In Syria, which has just been declared inde pendent by the French government, the Willo quets enjoyed a jolly reunion with French offi cers and nationals. From Beirut they journeyed “by the schoolboy’s way—the longest”, seeing Tripoli, Cyprus, Rhodes, Smyrna, Istambul, Athens, Naples, and finally Marseilles and home. The Front Populaire had just achieved victory. A series of strikes began; newspapers abroad gave them the coloring cf red. Actually the outbreaks were mastered by a Trotskist faction always at crossed swords with Moscow. Though new-baked, the Front Populaire government cleverly averted real rioting by a socialist pro gram that pleased the people. “When the social disturbances were taking place, we motored all over France,” said Mr. Willoquet. “We had the opportunity of talking W’ith all classes of people, found them quiet and optimistic. Contrary to opinions spread abroad, the French are getting along with the clear and calm consciousness that they are on the right way. They stand for social justice, liberty, democracy and peace, leaving to others the smeky theories that confuse the brain.” The French peasant is like his radishes, Mr. Willoquet continued—red outside but white inside. And the analogy is further important because the French are a great nation for garden ing. A man with a garden to tend and reap is never a fanatic. Recently the French premier said, “Democ racy will have right because it is right.” The nation has definitely exposed agents provocateurs and clings to its ideology of republicanism. Actually, in France any political differences are considered a sign of vitality and proof of the workability of democracy. “AnEuropean war began 3years ago. Political troubles in various countries, civil war in Spain, arc mere chapters of that war. How will it end? Nobody knows. But a country with a real philosophy of life—and a sense of humor— can turn the drama into good comedy.” This first-hand report of Mr. Willoquet’s gives rise to two reflections. One, the serious student of world affairs must be on guard against the obscurantism, as well as deliberate pro paganda broadcast, that tends to muddle hap penings and issues even as camouflage does warships. Two, • the peace and commercial well-being of the Orient depend rather directly on the European situation. Whether nations of the Orient will heed the lesson, what docs the balance sheet of Europe’s last 3 years show? A definite loss I The credit side of the ledger lists—only munitions. Autarchy, or dictator-type government, vio lates the principle of division of work. For instance, Italy tries to produce all her necessi ties, whereas she would do better to buy in America such a crop as wheat, then sell to Amer ica her wines. Of course, Italy now begins the development of Ethiopia; but the cost will be tremendous. Kipling’s words have found anew interpretation. The white man’s burden is the foreign-expansion tax load inevitably shouldered by the folks at home. When the colonial harvest is ready, as in South Africa the native—by that time progressing—wants a goodly share. Of the first-class powers probably those that can be self-subsistent are the United States and Russia. Since the United States is geo graphically aloof, the great Russian bear is the shadow over Europe, with one gigantic paw in the Orient. Russia’s adoption of a democratic constitution amazes the world. Is she eventual ly to become the bulwark of European and Asiatic democracy? From Maxwell S. Stewart’s Can Europe Afford War, the following r6sum(5 of Russian strength is quoted: “As compared with the Western powers, the economic strength of the Soviet Union is practically untested. Its enormous population, its vast area, and its tremendous store of raw materials make it potentially the most formidable power in Europe. In the past few years its industrial growth has been un precedented. From the 5th country in Europe in the production of steel in 1926, it has become {Please turn to page 48) January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 45 Letters {Continued from page 15) but the great obstacle in all of them is the initial expense required for the deep wells and an effective pumping system. Some question the feasibility of irrigating comparatively small plots while the surrounding area might be up in the air or drifting in upon the watered field or garden. Others wonder whether even our apparently unfailing supply of deep ground water could stand the drain of continuous pumping through a large extent of territory where supplementary irrigation would be most useful if it were really proved practicable. I haven’t myself any technical knowledge regarding either the water supply or the engineering required to make it available. But there have already been some preliminary official surveys which may result, in experimental work to provide more definite information about such projects. Some enthusiastic advocates of irrigation believe that event ually the supplies of gas under the Panhandle can be utilized to develop cheap power for pumping. Here again we come up against the hard fact that every material resource comes to an end unless constantly replenished. But at least these various possibilities provide subjects for discussion aaid some incentive to look forward to happier days. So we work on caring for the house and the chickens, the horses and cattle, trying to make our scant supply of feed go as far as possible, filling the days with the innumerable tasks necessary on any farm, hoping somehow, as the passing years steal away our strength, to be able to provide easier, more convenient ways of accomplishing the essential tasks. We were interested in what you said about Mr. Cordell Hull’s foreign policies, for we regard him as one of our most useful and far-seeing public men. We hope he may be equal to the great responsibility he now has in the South American conference for strengthening and giving form and direction to the world’s desire for peace. Mr. Hull is surely right in thinking of international peace as something not merely to be accepted but to be striven for actively and devotedly. We might think of it as Edgar Lee Masters did of immortality, that it is “not a gift but an achievement.” We especially appreciated the photo graph of the terraced rice-fields in Luzon. They make our own endeavors look childish and clumsy. Tlv>nks too for the magazine. We had little idea of the variety of industrial interests in the Philippines or the richness of its mineral resources. And we liked your article about Will Rogers. He was greatly loved. I am glad that he can still go on through the work he had done, giving wholesome enjoyment for years to come. Will savs he recalls the name of Raines in a neighborhood somewhat west of us but was not acquainted with the people. As Eleanor’s medical work has been at. the University of Kansas, it is doubtful whether she know your nephews. On the day before Thanksgiving we received word of her appointment to an interne ship in Minneapolis for next year. That relieves us of a great .anxiety for she had been a little fearful that she might not find a place to complete her training. We expect her and her husband home for the holidays and are worse than children in our eagerness for their coming. '"I’liey were married here on Jan. 4 of 1936). I had hoped to send this letter in time for Christmas but all sorts of delays have occurred, so I'm sure it will not reach you until some time in the new year. Will jqins in thanks for your letter and in the hope that 1937 may be for you a year of accomplishment and generous fulfil ment. If ever you come back to look over those homesteads of earlier years, justtakcanotherstepand look up ours too. We have set back that old cornerstone as you desired and shall probably not wander far away from it for any length of time. So be sure of a welcome here from the Hendersons. CAROLINE A. HENDERSON. Note—Because we have Mrs. Hender son’s letter this month, the remaining notes from another reader on how to travel and what to see during a trip from TO FULLY ENJOY PARTICIPATION IN THE XXXIII INTERNATIONAL EUCHARISTIC CONGRESS IN MANILA February 3-7, 1937 Every one would like to be assured of good transportation to or from Manila For this purpose the Manila Railroad offers its Train service which will be augmented by special trains if found necessary Modem buses of Luzon Bus Line from Rizal, Cavite, and Batangas Provinces Round trip third class fares within the reach of all Avoid road congestion and delays in transit OUR TRAINS WILL INSURE YOU Rest while you ride Arrival on time Safety and comfort Quick travel at low cost For information, write to Traffic Department— R. E. BERNABE Chief Clerk LEON M.LAZAGA Traffic Manager Call Up Tel. 4-98-61 Information, Local 42 City Office, Tel. 2-31-83 PIO Q. MOLINA City Agent MANILA RAILROAD COMPANY 943 Azcarraga — Manila Manila through other parts of Malaysia are deferred to February. Nearly all our readers will recall Mrs. Henderson as the author of Letters from the Dust Bowl that first appeared in the Atlantic Monthly and afterward in book form—unquestion ably the most vivid and accurate narrative of the ravishing consequenses of repeated and prolonged drouths in the semiarid region of America, outside the scientific reports themselves. Further, Mrs. Hen derson’s own observations are far from the unscientific: one of the beauties of her calm authorship in the midst of so much personal distress is that there is no wishful thinking in it—she draws the thing as she sees it for the gods of things as they are, and heaven forgive us for an allusion to a poet whom personally we don’t admire, yet here he fits.—Ed. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 46 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 Japanese Mandates... (Continued from page 6) Japan started the Manchurian incident on September 18, 1931, resulting in the creation of the puppet state ot Manchukuo. The Lytton Committee was appointed by the League to investigate the Manchurian matter the report on which Japan refused to accept and she announced her resig nation from the League of Nations on March 27,1933, effective two (2) years, that is, on March 27, 1935. Though Japan has ceased to be a member of the League of Nations, she has refused to surrender the administration of the mandated territories back to the League. In view ot the commitments of the Allies to Japan, as contained in the fore going exchanges of secret diplomatic correspondence, it is not clear how the League (which is practically in the hands of the same two or three nations above referred to) can, without em barrassment, compel Japan to give up the Mandates. Japan has formally denounced the Pacific Treaty, otherwise known as the Washington Naval Treaty or the Quadruple Entente, so that it expires on December 31, 1936, together with the London Naval Treaty. The Pacific Treaty was sign ed on December 13, 1921, by the United States, Great Britain, France and Japan in the Pacific or Washington Conference which was called on November 11, 1921 by President Harding of the United States, in the American capital, for the main pur pose of disarming the great naval powers. Various Far Eastern questions were brought up in the Conference, but the main point in the Treaty finally concluded is the mutual re spect of their rights in relation to the insular possessions or dominions in the Pacific Ocean. While the Philippines is under the protecting wings of Uncle Sam, no nations have yet seen fit to announce that the Philip pines is within their lite line. Will such nations have the same feeling or state of mind if, after the ten-year transitional period, the Philippine Commonwealth attain its independence, or will the Philippines be able to muster enough "steel throats” (as the British say) to speak so eloquently as to discourage such feelings ana the threat ol serious consequences adverse to the Philippines? The Philippine Guaranty Company, Inc. (Established in 1917) Phil. Army. . . (Continued from page 9) that such a thing has never before been done elsewhere and that in all likelihood it could not be done here in the absence of a similar experience from other nations.” The Santos plan predicates that occupational and military training can go hand in hand. Each model farm is to be comprised of truck gardening, plant nursery, poultry and hog raising, fruit tree planting and other farm enterprises depend ing upon the topography, climate and soil condition of the land available. President Quezon’s reservation of public land in Mindanao for the Philippine Army—128,081 square meters at Barrio Central, Davao—may contribute to this project. If competent agricultural instructors are available and receive commissions for such instruction, as well as necessary appropriations for equipment, a wave of vocational education such as was never accomplished by the Bureau of Education due to its limiting of agricultural schools may prove a per manent economic benefit to the Philippines. The return of the first 10,000 trainees to the soil after 5-1/2 months’ training will prove or disprove the efficacy of this method. Other possible benefits outlined by Major-General Santos are the availability of a disciplined force in typhoon and flood disasters, their services at times of locust infestation, their action during plague and epidemic, their adaption of hygienic and sanitary habits. Not the least of immediate benefits to industry has been the requisitioning of equipment in accordance with the Nepa movement. Too, this has meant a saving in expenditure. The following table demonstrates. Foreign product ™ • Iron beds.............. Felt hats.................. Woolen puttees. . .. Woolen blankets. . . Mosquito bars........ _ __ It is said that on 12 items consisting of clothing and equipment, the ordering of Philippine products has meant a savingof al most a million pesos. Initial purchases for the first 10,000 trainees alone will boom Philippine industry. Under the Santos plan, to which there seems to be no greater obstacle than the reluctance which, among conservatives, attends any experiment, the trainees return to their commun ities as efficient producers and not burdensome idlers. Philippine product Native beds............ P7.49 Guinit hats............. .78 Local cloth............. 1.20 Ilocano blankets (notquoted) Native nets........... 1.80 SURETY BONDS— We execute Bonds of various kinds, especially CUSTOMS BONDS, FIRE ARMS BONDS, INTERNAL REVENUE BONDS, PUBLIC WORKS BONDS for Contractors, COURT BONDS for Executors, Administrators and Receivers and BAIL BONDS in criminal cases. FIRE INSURANCE— In the Philippine Islands. LOANS— Secured by first mortgage on improved properties in the City of Manila on the monthly amortization plan. Phone 2-41-11 Second Floor P. O. Box 128 INSULAR LIFE BLDG. MANILA How a Newcomer Looks... (Continued from page 28) federal securities act of the United States have been confronted with this as well as many similar problems, 'the interpretation of various parts of the act has taken considerable time to work out, however, the administra tion of the act is gradually becoming more simple. The Philippine Islands Act should be handled more easily and efficiently because advantage may be taken of the experience of the administrators of the States Securities Act. Please keep in mind that in making the above criticism of wild-catting in the Philippine Islands and its control by a properly administered Secu rities Act, that the same criticism might be offered in some degree of any so-called boom mining camps that I have ever seen. In all such camps there has been an unusually large amount of money raised through the side of stock to the public much of which money has been wasted either through expenditure on properties of no value or through very large over head expenses. Further, we must not overlook the fact that while much of the so-called wild-cat money is deliberately thrown away, there is a portion of it spent on what might be termed marginal properties, those which offer a bare possibility of favorable development. Occasionally, a real mine is opened up and in some eases the productive area of otherwise worked out mining districts has been extended and become of major im portance. The problem, of course, is for those in authority to administer the securities act in such a way as to prevent as near as possible the wasting of the investors’ funds. Mining is a business and should be conducted as such; it is not a game as it is so often called. It is of necessity a somewhat hazardous business and requires specially trained men to manage the affairs of a mining company. Too often, companies are organized and officers elected who have through their success in other lines of business become prominent. These men permit their names to be used as officers of the companies without first having made any investigation of the properties owned by the company or subsequently arranging for both capable engineering advice and manage ment of the company’s affairs. If these men would use the same business ability which was responsible for their success in other lines of business, in first, making an investigation of the mining properties and second in the selection of capable management, there would be many less mining failures. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 47 Commodities Canton (Low Grade Cordage Fiber). Cigars (Number)................................... Coconut Oil............................................ Copra Meal. . Desiccated and Shredded Coconuts. Embroideries......................................... Hats (Number)................................... Knotted Hemp........................ Leaf Tobacco........................... Lumber (Cubic Meters)........ Maguey..................................... Pearl Buttons (Gross).......... AlftJther Products................ Total Domestic Products. .. United States Products........ Foreign Countries Products. PRINCIPAL EXPORTS November, 1936 November, 1935 Quantity Vniue % Quantity 435,542 12,837,814 21,224,672 19,449,585 9,367,567 404,061 2,599,802 74,420 13,974,994 8,888 58,496 11,265 1,318,764 42,953 10,323,408 T 33,099 391,314 4,444.548 2,454,389 397,523 141,098 677,834 566,341 127,060 2,820,028 12,548 24,182 273,363 158,340 29,914 1,317,888 826,220 P14,725.689 43,686 71,573 99.2 0.3 0.5 Grand Total........................................................................................................ P14.840.948 Articles Monthly average for 12 month* previous to November, 1936 Value % Quantity Value % 759,762 17,151,520 16,279,990 21,107,690 11,058,205 425.861 2,936,155 83.494 16,351,189 2,127 2,681,961 9,796 866,525 65,272 4,721,625 P 61,103 0.5 526.129 4.4 2.592.050 21.6 1,772,016 14.7 359,724 3.0 129.130 1.1 701,333 5.8 955,277 7.9 155,374 1.3 2,873,504 23.8 2,129 336,251 2.8 268,092 2.2 91,146 0.8 50,584 0.4 537,692 4.5 621,978 5.2 P12.033.512 126,196 23,510 98.8 1.0 0.2 P12.183.209 Note:—All quantities arc in kilos except where otherwise indicated. PRINCIPAL IMPORTS CARRYING TRADE Monthly average for November. 1936 November. 1935 12 months previous to November, 1936 IMPORTS 3.4 3.5 0.4 12.2 1.7 1.4 1.2 0.2 45.5 5'1 P21,698,752 99.7 75,142 0.3 18,914 P21.792.708 Automobiles....................... Automobile Accessories.. Automobile Tires............. Books and Other Printed Matters........................... Breadstuffs Except Wheat Flour............................... Cacao Manufactures Except Candy................... Cars and Carriages. .... Chemicals, Dyes, Drugs, coai.c:.:::::::::: Coffee Raw and Prepared. Cotton Cloths................... Cotton Goods, Other.. .. Dairy Products................. Diamond and Other Precious Stones Unset.. .. Earthen Stones andChinaEggs and Preparations of. Electrical Machinery.... Explosives.......................... Fertilizers........................... Fish and Fish Products .. Fruits and Nuts............... Gasoline.............................. Glass and Glassware.. .. India Rubber Goods.. .. Instrument and Appara tus Not Electrical.. .. Iron and Steel Except Machinery..................... Leather Goods.................. Machinery and Parts of.. Matches............................. Meat Products................. Motion Picture Films. .. Oil, Crude......................... Oil, Illuminating............... Oil, Lubricating............... Oils, not Separately Listed.............................. Paints, Pigments, Var nish, Etc........................ Paper Goods Except Books.............................. Perfumery and Other Toilet Goods................. Photographic Equipment and Supplies................. Rice...................................... Shoes and Other FootSilk Goods.................” ” Soaps................................... Sugar and Molasses. .... Tobacco and Manufac tures of........................... Vegetables......................... Vegetable, Fibre and Man ufactures of................... Wheat Flour....................... Wood, Reed, Bamboo and Rattan............................ Woolen Goods................... Other Imports................... Grand Total.............. Value "p 300,: 136,376 88,288 50,233 61,916 86,421 93,834 136,709 282,407 82,348 74,497 215.953 % 1 0 0 0 0 3 1 5 5 0 0 3 0 7 0 7 0 2 2 0 6 2 0 0 0 3 7 2 6 0 98.120 91,300 20,207 47,003 84,554 96,77-1 204,865 122,647 15,277 68,557 30.269 80,534 77,717 20,357 489,653 228,096 338,448 497,260 % 2 0 0 0 0 0 3 12 3 0 0 0 2 0 2 0 8 5 0 0 0 0 0 0 0 0 0 Value % P 2 3 153,085 69,983 117,408 70,087 61,246 86,477 146.833 80,303 592,482 281,264 313,7.33 568,438 3.0 0.9 1.1 0.9 0 6 0.4 0.7 2.1 9.7 6. 1 3.7 0. 0. 9 6 0.9 0 8 0.5 >.9 2.3 0.5 0..3 1.6 0.2 2.9 0.5 0.2 3.6 .87 1 62,335 46,854 1,437,310 P 12,960,363 0 0 10 5 5 0.5 0.6 P16.356.425 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES Ports Monthly average for November, 1936 November, 1935 12 months previous Nationality of Vessels to November, 1936 Value % Value % Value % British................................. Chinese............................... Danish................................. Dutch.................................. French................................. German............................... Greeks................................. Italian................................ Japanese............................. Norwegian.......................... Panamas............................. Philippines......................... Swedish............................... Aircraft.............................. P3,429.738 27.4 4,001,969 31.9 15,904 0.1 587,323 4.7 736,609 5.9 1,082,899 8.7 34,902 0.3 100 1,113,487 8.9 609,955 4.9 690,748 5.5 64,673 0.5 P4.008.619 30.2 4,369,201 33.1 38,373 0.3 333,832 2.5 469,469 3.5 762,714 5.7 40,049 0.3 148,740 867 2 1,688,418 12.7 1,214,447 9.2 261,765 1.9 9,789 69,655 0.5 P5.606.737 35.1 4,915,837 30.7 71,223 0.4 338,023 2.1 884,623 5.5 2,569 877,922 5.5 25,697 0.2 4,029 1,524,176 9.5 1,350,293 8.4 295,987 1.8 6,567 93,898 0.6 By Freight......................... P12.517.914 96.6 P13.266.331 98.3 P15,997,581 97.8 By Mail............................. 442,449 3.4 232,186 1.7 358,844 2.2 Total. P12.960.363 P13.498.517 P16.356.425 EXPORTS Monthly average for November, 1936 November, 1935 12 months previous Nationality of Vessels_______________________________________ to November. 1936 Value%Value%Value% American............................ British................................. Chinese............................... Danish................................. Dutch.................................. German............................... Norwegian......................... Philippines......................... Swedish............................... Aircraft............................... By Freight......................... By Mail............................. Total........................... . Monthly average for November, 1936 November, 1935 12 months previous to November. 1936 Value 6 0 3 63 2 5 5 4 Value Value 9 291,258 P25.681.726 P5.160.189 35.3 3,632,215 24.8 679,355 4.6 619,651 4.2 189,450 1.3 26,633 0.2 2,395,964 16.3 864,840 5.9 998,366 6.7 P6,031,604 50.1 2,133,940 17.8 545,544 4.5 862,406 7.2 180,942 1.5 97,344 253 0.7 963,345 1,020,616 3,200 327 272,4t0 8. 1 8.5 2.: 208,414 0.9 Pll,664,260 98.8 P12.014.404 98.6 P21.680.284 99.5 176,688 1.2 168,805 1.4 112,424 0.5 P14,810,948 P12.183.209 P21,792,708 TRADE WITH THE UNITED STATES AND FOREIGN COUNTRIES Monthly average for November, 1936 November, 1935 12 months previous Countries _______________________________________to November, 1936 Value%Value%Value% United States........... United Kingdom.... Australia..................... Austria....................... Belgium...................... British East Indies. Canada....................... China.......................... Denmark.................... Dutch East Indies.. France....................... French East Indies. Germany................... Hongkong................. Italy.......................... Japan.... .. ............. Japanese-China. .. . Netherlands............. Norway..................... Siam.......................... Spain.......................... Sweden..................... Switzerland.............. . Other Countries.. . P19.482.768 773,218 361.184 9,677 P16.517.883 1,148,307 256,301 409,907 Total........................... 317,338 410,475 198,962 496,746 54,473 400,307 198,686 286.620 968,406 157,381 43,214 2,912,567 3,945 316,231 45,923 17,224 18,535 94,545 39,624 202,262 0.3 0.1 0.7 P27,801,311 224,590 537.272 165,045 383,574 373,485 69,963 513.412 99,670 29,196 15,673 438,163 72,279 98,723 167,457 P25.681.726 4 P27.065.463 70.9 5 1,114,933 2.9 4 424,706 1.1 7,697 0 273,971 0.7 6 377,370 0.9 9 308,175 0.8 1 638,708 1.7 6 122,122 0.3 5 372,640 0.9 4 463,443 1.2 3 263,334 0.7 0 869,285 2.3 4 193,104 0.5 1 206,172 0.5 0 3.603,666 9.4 1 30,144 5 783.385 2.1 1 39,965 0.1 39,528 0.1 7 . 455,231 1.2 3 107,755 0.3 4 100,973 0.3 7 307,363 0.8 P38,149,133 48 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 RAIL COMMODITY MOVEMENTS By LEON M. LAZAGA Traffic Manager, Manila 'Railroad Company I L The volume of commodities received in Manila during the month of December 193G, via the Manila Railroad Company, are as follows: Rice, cavans................................ 107,935 Sugar, piculs............................... 504,015 Copra, piculs............................... 50,530 Desiccated Coconuts, cases....... 17,525 Tobacco, bales............................ 379 Lumber, board feet................... 496,641 Timber, kilos.............................. 1,420,000 FREIGHT REVENUE CAR LOADING COMMODITIES FREIGHT CARS to’nxaoe | Increase or Deci 1936 1935 1936 1935 | Cars Tonnage Rice................................................. 533 418 5.701 4.741 1 115 963 Palay.............................................. 82 110 1.221 (28) (372) 1,112 28,576 34,556 (148) (5.980) Sugar Cane.............. ..................... 353 833 *2*379 6J09 (480) (3.730) Molasses........................................ 55 71 1,532 2,098 (16) (566) Tobacco......................................... f 23) Mineral Products......................... 3,5*63 Lumber and Timber................... 102 Other Forest Products............... Manufactures............................... 212 105 2,890 1.164 All others including L.C.L......... 2,579 2.608 14,932 16*6.34 I <29) Total.................................... 12.215 12.402 186.701 195.708| (I 87' (9.007) The freight revenue car loading statistics for four weeks ending De cember 26, 1936, as compared with the same period of 1935 are given below: SUMMARY Week ending Deccmbcrl 5.... 2,104 Week ending December 12. . .. 2,951 Week ending Dcccmbei 19.. .. 4,025 Week ending December 26,... 3,132 3,396 3,158 3,582 2,266 29,793 44,33.' 63,581 48,319 35,802 (1.292) (26,955) (3,986) 8,742 13,192 Total................................... 12,215 12.4021 186,70’ 195,708 (187) (9.007) NOTE:—1‘igurcs in parenthesis indicate decrease. Consul General (Continued from page 44) 2nd only to Germany. It has the good fortune to be the one country in the world which possesses within its boundaries an adequate supply of all three of the essentials of steel making—iron ore, good coking coal and manganese. It is also among the great powers in possessing an adequate supply of chromium, which is likewise of con siderable importance in steel. Certain other of Russia’s recently-developed industries are of strategic importance. The chemical industry has received especial attention in the 2nd FiveYear Plan, and is believed to be nearly adequate. The U.S.S.R. leads the world in the production of tractors—a fact of great significance in consid ering the relative effectiveness of a mechanised army. Automobile production has grown many fold in the past 5'years.” With apparently no imperialistic ambitions, as a democracy Russia undoubtedly will be inter ested in the maintenance of the stains quo in the Client. Here is another constitutional democ racy—the Philippines. Are they to be big brother and little sister in the future alignment of Oriental powers? Shipping Review (Continued from page 41) The following figures show the number of passengers departing from the Philippines during November, 1936: Interl'irst mediate Third China and Japan................. Honolulu. ............................ 94 1 92 6 107 8 Pacific Coast....................... 36 17 11 Europe via America........... 2 2 0 Strait Settlement and Dutch East Indies....................... 19 4 0 Europe end Mediterranean ports beyond Colombo.. . 49 1 8 Australia 6 0 1 America via Suez................ 0 0 0 Total for November, 1936.. 207 122 135 Total for October, 1936 .... 168 152 207 Total for November, 1935.. 182 135 165 BUSINESS AND PROFESSIONAL DIRECTORY Kerr Steamship Co., Inc. General Agents “SILVER FLEET” Express Freight Services Philippines-New York-Boston Philippines-Pacific Coast (Direct) Roosevelt Steamship Agency Agents Chaco Bldg. Phone 2-14-20 Manila, P. I. P. O. Box 1394 Telephone 22070 J. A. STIVER Attorney-At-Law—Notary Public Certified Public Accountant Adminiitration of Bstatee 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. ft & M * CHINA BANKING CORPORATION MANILA, P. I. Domestic and Foreign Banking of Every Description AMERICAN CHAMBER OF COMMERCE JOURNAL P. O. Box 1638 — Manila — 180 David RATES Philippines - - - P4.00 per year United States - - $ 2.00 ,, ,, Foreign Countries - S 3.00 ,, ,, IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL Creosote Is An ‘Antidote’ for Ants White ants simply will not associate with creosote or anything that has creosote in it. Taking advantage of this knowledge it will pay you to use nothing but CRECSCTED LUMBER Rot is another problem that causes large losses. Again creosoted lumber brings a great saving. Actual use of this has proven that it will prolong the life of lumber for many more years. We have ample stocks for all purposes, including piles and ties. ATLANTIC, GULF & PACIFIC COMPANY There’s No Mystery About Electrolux Silence Three words explain it — No Moving Parts. This also explains its low cost operation; freedom from expen sive repairs; absolute dependability and general desirability. That is why you always get MORE than you expect when you buy an Electrolux. MANILA GAS CORPORATION Display Room 136-138 T. Pinpin IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL The EXECUTIVE COMMITTEE OF THE XXXIII INTERNATIONAL EUCHARISTIC CONGRESS urges Manila and nearby towns to DECORATE Pilgrims from many parts of the world will begin to arrive in Manila within a very few days. We of Manila and the nearby towns will want to show our deep ap preciation for this international courtesy. Our best OUT WARD manifestation of this appreciation is the man ner in which we decorate to receive them. The Executive Committee has prepared various of ficial decorative materials for this purpose—shield cards, Hags, medals, seals and other items, all intended to add official color to this great occasion. Get and display this material now, that our visitors from foreign lands will see at first glance that we are glad to have them with us. PARTICIPATE Private homes, institutions, business and industry, automobiles, and other places will find the right material for their decorative purposes. The vast majority of these1 will PARTICIPATE in this memorable event: the Ex ecutive Committee has a nt ieipat ed this wist participation and has adopted uniform material, from official designs and color combinations, so that the celebration will be suitably correct. Those1 in the1 province's may secure1 this material in advance* se> that when they arrive* in Manila they will not have1 to lose1 time1 in supplying themselves. You are1 all urged te> cooperate1 te> make1 this occasion one1 in which every person may be1 ]>re>nel. The1 material may besecureel from the-* sources inelicateel in the1 column on the1 left: inquiries or information concerning it should be* elirected te> these two aeldresses. AN INTERNATIONAL EVENT OF UTMOST IMPORTANCE TO THE PHILIPPINES IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL