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The American Chamber of Commerce Journal Vol. XXV, No.5 (May 1949)

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The American Chamber of Commerce Journal Vol. XXV, No.5 (May 1949)

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Vol. XXV, No.5 (May 1949)

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Published monthly in Manila by the American Chamber of Commerce of the Philippines Fourth Floor, El Hogar Filipino Building—Telephone No. 2-95-70 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines: Frederic H. Stevens, President; J. T. Hicks, Vice-President; F. C. Bailey, Treasurer; F. C. Bennett, J. H. Carpenter, C. H. Hirst, N. Most, R. J. Newton, and F. L. Worcester. Marie M. Willimont, Executive Vice-President: I. T. Salmo, Secretary. Vol. XXV May, 1949 No. 5 Editorials -• The Nameless Clime .............................. Step One. Step Two... Step Three? stupidity Thrice Compounded ............ Our Abaca "Monopoly” ........................ Hongkong Makes Its Bid .................... The "Reciprocal Immigration Bill’ ai Co ntents the "White Australia Poliey' Importance of the English Language in the The 1949 Metropolitan Water District ... Gold and Recovery. With some Observations Foreign Trade of the Philippines: By Countries, 1948 (Table: ........................ By Nationality of Trader. 1948 (Table........... Ten Principal Exports. 1947 and 1948 (Table Ten Principal Imports. 1947 and 1948 (Table The Business View — Office of the President of Banking and Finance ........ American ' Stock and Com me Manila Stock Market ........ Credit ....................................... Electric Power Production Real Estate .............................. Real Estate Sales in Manila, 1940-1949 (Tablei ........ Building Construction in Manila. 193(5-1949 (Tablei Ocean Shipping ............................................................................. Land Transportation (Bus Lines I ........................................... Mining ............................................................................................... Gold and Silver Production. 194:1 (Table) .................... Production of Metals and Ores oilier than Gold a: Copra and Coconut Oil ............................................................... Desiccated Coconut ......................................................................... Sugar ................................................................................................... Manila Hemp ................................................................................... Automobiles and Trucks ............................................................. Food Products ................................................................................... Textiles ................................................................................................. Legislation. Executive Orders. Court Decisions .................. Philippine Safety Council ............................................................. Weekly Changes in Retail Prices (With Graph I ............ Cost of Living Index, 194(1-1949 (Table) ............................ The “Let Your Hair Down” Column ............................................. Notice .......................................................................................................... Pllllippii F. H. Steven.M. Manosa .1. S. Lawrenci Market Official Source .... C. V. Grant .......................... R. Ewing ............................ A. C. Hull ...•.............. W. J. Nichols .............................. R. J. Baker ............................ C. M. Hoskins ............ Bureau of the Census and Statistics Bureau of the Census ar.d Statistics F. M. Gispert ...................... L. G. James ............................................. C. Hu E. M. H. K. C. A. Mitke ........................................ ureau of Mines .............................. ureau of Mines .............................. . C. Von Kauffmann .................... . Igual and K. B. Day ................ . R. Hick .......................................... Jamieson ........................................ . Robertson ........................................ >nde de Churruca ............................ H. Helling ...................................... G. Herdman .................................. Traynor ........................................... E. Selph ......................................... S Tenny .......................................... ireau of Commerce ........................ ireau of the Census and Statisti United States Information Service .. 50 Centavos the copy THE “HEART” B HigV-'ens-le sector C Load-corrying cor n High-compressi°n Here you see the inside, the “heart,” of Goodyear's E-C Cord Multi-V Belt — and the reason why it consist­ ently delivers finest performance, highest efficiency and longest life on Multi-V drives. Note the large diameter of the endless, heavy-duty cord — uncqualed in tensile strength and stretch resistance. This construction makes it possible to concentrate the load-carrying cord in the neutral section where it is not subject to extreme tension or compression in bending around the pulleys. Buckling, distortion and internal fric­ tion are thus eliminated. And Goodyear engineering insures perfect belt balance, with each cord pulling its full share of the load. It will pay you to contact us for full data on this and other Goodyear Industrial Rubber Products — all proved by performance to be highest in quality, lowest in ultimate cost. THE GOODYEAR TIRE S RUBBER CO. OF THE PHILIPPINES, LIO. BACOLOD MANILA CEBU Editorials “ .. . to promote the general welfare” We share in the people’s grief over the tragic deaths of the noble wife and the beloved elder daughter of the late great leader, President Quezon, The and of those others who, while on their Nameless way to Baler, his birthplace, were killed Crime in a machine-gun ambuscade by a ruthless band of criminals. It is impossible to conceive of anything more heinous and more pitiful. It is an appalling thing to have to write down in the annals of the nation. Americans feel this deeply and wish they could aid or comfort. But there are abysses of the spirit which a people must traverse alone. What is there to say except perhaps that all nations must pass through times of tribulation and shame, and that human beings are so constituted that in the end they are the stronger for them. Executive Order No. 193 (December 28, 1948) set up the machinery for the control of the importation of certain so-called “luxury” and “non­ Step One, essential” articles, cut down the volume Step Two... of these imports by an average 50 %, Step Three? and set aside 20% of the volume per­ mitted to be imported for so-called “new” importers. That was the first step. Now, by Executive Order No. 209 (March 30, 1949) which amends Order No. 193, the 20% set aside for new importers is to be “allocated exclusively to Filipino iniporters”. That was the second step. What is the third step to be? There may not be a third step, but what guaranty has established business that there will not be; that, some months or a year from now, there will not be another Executive Order amending Order No. 193 as amended and providing that 50% or 75% or the whole 100% of the import volume will be allocated exclu­ sively to Filipino importers? What would be the difference, in principle? There would be no difference, for whether discrimination be rated at 5%, 10%, 20%, 50%, or 100%, it is always discrimination. For any government deliberately to take away anything from one group of people and to serve it nicely wrapped up to another group, introduces an ele­ ment into government and society the working of which is unpredictable and which may stop_ at no length whatsoever. " Once any government, even in the name of its own citizens, begins deliberately to discriminate against any element in the population, we have the beginning of a regime of injustice, and injustice knows no limits. This Executive Order No. 209 was issued, of course, with a view to quickly forcing an unearned im­ provement in the position of Filipino importers as against non-Filipino importers and largely at the ex­ pense of the latter, but we are sure that the discri­ minatory policies upon which the Philippine Govern­ ment is today acting can never work out to the real benefit of either Filipino business or the over-all eco­ nomy of the country. It is much more likely, if these policies are persis­ ted in, that we shall all descend together into a slough of economic despond and stagnation. The vicious engineers licensing bill, twice passed last year and twice vetoed, has been reintroduced a third time; this third time, at first, with most of the Stupidity Thrice Compounded objectionable provisions removed, but now with amendments which make it, if possible, even more ob­ jectionable than it was at the out­ set. In the “Mining” column of the March issue of this Journal, we printed the story of how the rein­ troduction of this bill over the first presidential veto (by Mr. Roxas) resulted in the loss to the Philip­ pines of a projected investment by an American min­ ing company which would have reached approximate­ ly P50,000,000. 183 184 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1949 //Ml / PtHSUNA Ll£t U * /^/^ERVICE » EVERY PASSENGER OUR GUEST..! When you travel via Philippine Air Lines, you are much more than a passenger to us. . . you are our guest. . . and everyone of our employees does his best to make you feel at home in our planes. Thousands of air travellers will tell you of the pleasurable flights they have made via P.A.L. We want to give you the same experience! Philippine Air Lines serves all important points in the Philippines with daily flights — Hongkong, Guam, Honolulu and San Francisco with twice weekly flights — Tokyo and Okinawa with weekly flights — Calcutta, Karachi, Dhahran, Cairo, Rome, Madrid and London every other Saturday. P.A.L. gives connection service to points all over the world through inter-line agreements. P.A.L. serves European and Pacific routes with luxurious DOUGLAS DC-6 five-mile-a-minute pressurized-cabin sleepers. See your Travel Agent or the nearest P.A.L. office for reservations fLV Philippine air lides M.R.S. Bldg. — Plaza Cervantes — MANILA Tel. 2-79-66 Tel. 2-79-67 Tel. 2-79-68 hi <».. dies: Manila Hotel — Tel. 2-91-35 — Avenue Hotel — Tel. 2-79-66 General Managers — A. Soriano y Cia. That was a very heavy price for this country and for us all to pay for any lesson. But this lesson has still not been learned by the persistent individ­ uals who are behind the bill, nor by those others who give it their support. Let our Filipino mining engineers, whose car­ eers are tied up with the resumption and the develop­ ment of our once prosperous mining industry, — let our people here who have invested money in our still abandoned mines and those who have money they would like to invest in new mining ventures, — let the people as a whole whose welfare and prosperity depends on the economic development of the country, — let the Government which presides over all our fates, give this matter even the briefest earnest thought and they should understand how suicidal all this type so-called legislation is. Tn a series of three able articles published last month in the Manila Evening News in defense of the Bell Act and in criticism of the “Limited Our Abaca Free Trade” notion, by former Senator “Monopoly” Jose E. Romero, a competent economist, there occurred one statement to which we have to take exception, though our observation will only strengthen his general argument. In referring to the desirability of increasing the production of abaca (Manila hemp), he stated that this is a product “of which we have a monopoly”. That was true at one time, but is so no longer. The Japanese were producing abaca in Borneo and the Dutch in Sumatra before the war and the production there was rapidly increasing. But even more significant, not only in this con­ nection but with the whole problem of the economic development of the Philippines, is the fact that of late a large 'Manila corporation, of Filipino and Ame­ rican ownership, has undertaken to develop an exten­ sive abaca plantation in British North Borneo. In other words, Philippine capital is by voluntary choice leaving the Philippines to seek profit elsewhere in the production of abaca and will thereby unavoid­ ably take a part in breaking the monopoly which up to recently placed the Philippines in such a favorable position. The reasons for this migration of Philippine ca­ pital in this instance are said to be: (1) definite encouragement and assistance extended to the in­ vestors by the British North Borneo Government; (2) no or less onerous restrictions on land ownership; (3) fewer difficulties with labor; (4) no such troubles, as in Davao at present, with “squatters”. Hongkong continues to make a strong bid as an entrepot and Hongkong Makes its Bid follows: industrial and business center in the Far East. The Department of Com­ merce and Industry of the Hong­ kong Government is at present run­ ning advertisements in various periodicals which read in part as “..An increasing portion of the commerce of the Far East is being transacted through Hongkong. Since the war, merchants have found in this island colony, British law and order, the financial stability which comes of being part of the sterling area, the dignity and confidence which arise from its association with the (British) Commonwealth. "British justice guarantees a fair deal and British ad­ ministration a square deal for all. There are no special pri­ vileges for any race or class, there are no racial barriers, no colour bars, no ‘isms’ to tear society apart. All peoples, ir­ respective of race, colour, nationality, or creed find a wel­ come within its borders. There is liberty of thought, speech, and action common to all. There is freedom of trade and freedom to trade for all. “These are the characteristics which have made Hong­ kong the largest entrepot in the Far East, the largest city in the British Colonial Empire, and one of the main commercial centers of the world. “There is room for you in Hongkong. “Modern commercial discovery is still the search for new ‘wealth’ represented by new markets and new sources of sup­ ply. “You are invited to discover the Far East and having dis­ covered the potentialities of the Orient, to set up your Far Eastern Headquarters in Hongkong, the Commercial Capital of the Orient.” We have quoted the foregoing, though it consti­ tutes a “free ad.”, to show what the Philippine Gov­ ernment is up against in the natural and beneficial rivalry between a number of places in the Far East in inducing outside capital to come in to aid in their economic development. In our opinion, Manila and the Philippines have certain very definite advantages over Hongkong, — Hongkong is too small in area, for one thing, and too close to the continuing chaos in China, for another, but today our own Department of Commerce and In­ dustry could not truthfully publish an announcement similar to that of its counterpart in the great British crown colony. That it can not is due to the fact that the Gov­ ernment is still following the narrowly nationalistic trend which this Journal is opposing. It is a tragic thing, for if it were otherwise we should see the Phil­ ippines thriving as perhaps never before. The “Reciprocal Immigration Bill” and the “White Australia” Policy The so-called “Reciprocal Immigration Bill”, filed in retaliation upon the action of the Australian Gov­ ernment in the Gamboa case, has at this writing been approved by the House in third reading and now goes to the Senate. If this bill becomes law, we shall be very sorry, — as many Filipi­ nos, even among those members of Congress who voted for the bill will no doubt be sorry, for the difficulties this will result in for the few score of Australians who live among us. However, we can not oppose or even criticise the bill, not so much because it is retaliatory for an existing wrong, but because it is aimed at establishing reciprocal privileges, which is no more than right. In this connection, however, and for the sake of clarity, which we should always seek, it may be well to give thought to the fact that the so-called “White Australia” policy is not very different from the policies implied in such slogans as “Indonesia for the Indone­ sians” and “the Philippines for the Filipinos”, — the latter first enunciated by a great American, William Howard Taft. Nor is the determination behind the “White Australia” policy very different from the de­ cision of the people of the United States, some decades ago, to take certain measures to prevent the Pacific Coast region from becoming an Asiatic outpost. It would appear to be undeniable that a people, if they have a right to self-determination and self-gov­ ernment, also have the right to self-preservation, and this must include the right to determine in so far as that is possible what is to be the racial make-up of their nation. It is very natural that people should wish to remain themselves, and to take all possible measures to insure that their country shall belong to their own descendants rather than those of some other people. Just as the members of a family have the right to determine whom their guests shall be or whom will be allowed to live in their home, so does k nation have that right, although it must be admitted that that right may be overborne, as it was in the case of Australia itself which once was a black men’s country, and in the case of America which once was a red men’s country. But there enter factors of population pres­ sures and great racial and cultural migrations which must be excluded from a brief discussion. Biologists know that racial intermixture invigor­ ates and enriches a race; anthropologists and sociolo­ gists know that racial intermixtures enriches and stimulates the social culture. It is held, indeed, that all progress comes from such contacts and minglings. We may therefore hope that at some future time the world may become so much one that the various pri­ mary races will hardly be distinguishable anymore. But for that man is still not as yet mentally and moral­ ly prepared. In the meantime, however, the determination of a people to maintain itself racially is not necessarily an expression of racial hatreds, dislikes, or even mere prejudices. Such a determination may be fully ex­ plained as simply a matter of racial pride and of a half-instinctive urge to racial (and also cultural and political) survival. That much being granted, the political policies which are the result of this determination should be carried out with a view not only to incurring as little hostility as possible, but with a view to avoiding in­ justice especially in individual cases. Allowing Gamboa, for instance, to visit his Aus­ tralian wife and half-Australian children, allowing him even to live out his entire life there, would not affect the basic White Australia policy; nor would any number of such cases at all likely to arise, and met in a simple, human way, affect that policy. We have, in this Journal, protested during the past few years against various forms of discrimination against non-Filipinos by the Philippine Government. We have, however, never challenged the natural right of the Filipinos to the Philippines or their right to govern themselves as they deem wise. We have spoken up only for a truly wise govern­ ment, a government that does not discriminate against minorities in the population, including non-Filipino minorities. That is no more than an appeal to states­ manship, the high statesmanship which must rest on the fundamental concept of democracy, equality and justice for all. As a part of wise statesmanship, a government must know how to maintain its rights and the rights of its citizens under civilized conceptions. Gamboa and some others are being cruelly treated by a depart­ ment of the Australian Government. Protests and appeals have had no effect. We can not argue that two wrongs make a right; that making difficulties for Australians is, even under the circumstances, to be defended or condoned. But it must be admitted that it represents a natural reaction, as a blow in return for a blow. If the so-called “Reciprocal Immigration Bill” be­ comes a law, we sincerely hope that it may have the de­ sired effect, which appears to be the establishment of a true reciprocity between the Philippines and Aus­ tralia in matters of immigration. We in the Philippines, including the Philippine Government, might well show a keener interest in our nearest neighbor to the north, ForFormosa mosa, where, since the forces of libe­ ration were withdrawn, things have not been going well and are likely to grow worse. During the 16th and 17th centuries, Formosa, which is approximately one-third the size of Luzon, ■ was fought over by the Portuguese, the Spaniards, and the Dutch, but at the close of the latter century it became a part of the Manchu Empire. After the Sino-Japanese War in 1895 it became a colonial pos­ session of Japan and in 1942 the Japanese Govern­ ment declared it an integral part of Japan proper. Now, in accordance with the Cairo Agreements, it is under temporary occupation by the Chinese Nation­ alist Government pending decision as to its future when the peace treaty with Japan is drawn up. Though a considerable part of present popula­ tion of over 6,000,000 is Chinese or of Chinese des­ cent, the original inhabitants were Malay, akin to our Mountain Province people, and the population as a whole has always hated both the Chinese and the Japanese rule. They have become especially bitter against the present inept and corrupt Chinese Nation­ alist regime, and a strong movement now exists which aims at emancipation, independence, and mem­ bership in the United Nations. Formosa is actually in sight of our northern­ most islands and was in fact the base for the Japan­ ese attack on the Philippines. Especially in view of the recent developments in China and the threat of a hostile “communist” regime being established there, Formosa becomes of far greater immediate concern to us than either Korea or the East Indies. Our own thought is that SCAP should again take over in Formosa, this to be followed by an Ame­ rican civilian regime which would prepare the coun­ try for independence. However, the Philippine De­ partment of Foreign Affairs might well undertake a study of ways and means by which the appeal of the Formosans for self-government could be strength­ ened. “Both Government and business have indicated an increased interest in the investment of private United States capital in Israel. The Economic Israel Department of the Jewish Agency is prepar­ ing handbooks and indexes of firms. The Minister of Finance and the Economic Coordinator are planning tax-benefit legislation to encourage foreign investment, and the Manufacturers Associa­ tion is pursuing an active program to obtain conces­ sions ...” This is from the Foreign Commerce Weekly of the U.S'. Department of Commerce. They’re all working together in Israel. They’re losing no time in Israel. 186 May, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 187 --------------------------- FORD SERVICE THROUGHOUT THE PHILIPPINES---------------------------BICOL TRADING, INC. Iriga, Camarines Sur MINDANAO MOTORS CORP. Cagayan, Or. Misamis DAVAO MOTOR SALES Banquerohan, Davao City MONTILLA BROS. CO. Bacolod City EAST VISAYAN MOTORS, INC. 3 R. Palma, Cebu City PANAY MOTORS, INC. Muelle Loney, Iloilo City MANILA TRADING & SUPPLY CO., Port Area, Manila Importance of the English Language in the Philippines' By Frederic H. Stevens President, American Chamber of Commerce IT is still a fairly general impression that a Junior Chamber of Commerce is a juvenile organization, but actually junior only means young or younger, and not immaturity which is what juvenile means. So, in speaking to you today as the juniors which you — believe me — may be glad you are, I do not mean to reinforce the erroneous impression I have mentioned or to relegate you to an inferior position with reference to my own senior generation. Rather, I am very well aware of the fact that you have the advantage over us not only in years and in vitality, resilience, strength, courage, enthusiasm, but also, in the time still left to you in which you may be active and creative and accomplish great things, — as we have done in our time!... About the only real advantage over you to which we may lay claim is our longer experience, which may mean more knowledge and more wisdom, but which does not always mean that and which may also mean a moribund conservatism, over-cautiousness, timidity, and do-nothing-ism. I would like to say that each generation has its own good qualities and its own weaknesses, which do not offset each other within the same generation and which are best offset through some sort of combina­ tion between the two generations. This is generally recognized. Even the most pri­ mitive peoples have their warriors, — and their coun­ cil of elders. It has long been political wisdom, em­ bodied in our representative government institutions, to have a legislature composed of two houses, one of younger men and the other of seniors, a senate. A chief executive may be a comparatively young man, but he is generally counselled by older advisers. In business, too, most organizations have found it wise to find a place for junior partners. Thus, in business, as in the state, and church, and also the school, we, in fact, follow the scheme of Na­ ture itself, for all of life is a matter of generations, of a development from infancy to youth and maturity and old age. Nature has proved for itself that that process is of racial survival value. We can not always be young, and we can not long be old; but of what­ ever age, we can do our part. The junior chamber of commerce movement is a fine thing, as it allows our younger men to set up and run their own show, perform their own tasks as they see them, in their own way. Yet we of the ordinary, established chambers of commerce would suffer great loss if many of our younger members were to with­ draw to join the junior chambers. I feel that we should have bath the young and the old in our regular chambers of commerce. At any rate, I make a plea for frequent contacts between us, for consultation, collaboration, coopera­ tion, joint action, whenever that can be agreed upon. We may agree on all things, we may not, but we could, I am sure, all work for one common end, — the welfare and prosperity of the Philippines. A practical step in this direction might be to create a liaison committee between the junior and the regular chambers of commerce. * From an Address before the Manila Junior Chamber- of Commerce, April 26. Business in Politics ICONFESS to a feeling of admiration when, some weeks ago, I saw the call your organization issued through full-page displays in the newspapers for the Philippine Congress to get down to work. I would not say that what Congress is alleged to be doing now, — cleaning house, is not the best thing it could do. Certainly, whatever it is doing is better than grinding out legislation which, as during recent past sessions, has been harmful to the country, espe­ cially our economy, rather than helpful. But I liked your courageously seizing upon a role in the political life of the Philippines. Your organ­ ization, predominantly Filipino, has a right to thar role, and, in fact, it is your duty to assume it. Gen­ eral MacArthur and I, as Americans, may not have that right, though who will say we have no right to express our personal opinions? Under our democratic form of government, Fili­ pino businessmen at least have as much right as other citizens to seek to guide government policies in their own interests, though as they constitute only one class of citizens, they have no right to seek to control the government or to take an actual part in the govern­ ment except as honest voters at election time. Where industrial and business organizations take an actual part in government, as they do or have done under some fascist regimes through so-called corpora­ tive chambers, we no longer have democracy, but a government frankly by the vested interests. Businessmen and business entities and organiza­ tions, Filipino or alien here, may properly petition the Government, they may call certain facts, as they see them, to the attention of the Government, they may interest themselves in the passage of certain legisla ­ tion or in the amendment or abrogation of it, — all this is honest and above-board and no one can reason­ ably object to that any more than they could object to other groups of people, whether citizens or only resi­ dents, doing the same thing. Industry and business, regardless of nationality, represents the great basic material interests of the community, the nation, the world, which are funda­ mental to all the higher social and cultural interests. It has the duty to stand up for itself. However, at­ tempts at coercing the government or at corrupting government officials is evil in itself and destructive of the whole community or nation. Corruption in the Government It is to be emphasized that in the Philippines of late it was not business that corrupted the Govern­ ment, but the Government that corrupted itself, like some sick dog will bite itself. The scandalous corruption here was due not only to the decline in private and public morality which generally follows war and an enemy occupation of a country, but to the abnormal opportunities, for dis­ honesty presented by the existence of enormous stocks of army surplus goods w’hich it was difficult to guard 188 May, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 189 ushj uew bEHDV-POIBEr generators Where there’s Progress. Complete, Self-con­ tained Units ready tor installation. Engineered for long life and low-cost operation. Backed by genuine IH repair parts and service. Ready-Power Generators powered by Interna­ tional diesel engines make electrical power avail­ able anywhere in the Philippines. Complete, selfcontained Ready-Power Generators have un­ limited applications ... in towns, barrios, construc­ tion projects, manufacturing plants, lumber camps, mines, and many other fields. Write or see us for full particulars. INTERN ATION AlQfARVESTER COMPANY OF PHILIPPINES/^ IM Marquee de ComlUae, Mull* yz'-IWWHI Intemetlonal Track* MataUuee Street. Cebu f lalcrnattonal Retrlteretlo* ■a**, D>tu — Lacaea BL, Baevjed 1*1*r»»lle»*l Wutirtal fewer and by the inflow of vast rehabilitation funds from the United States, and also to the extremely low salaries paid to government personnel in the lower grades. This latter factor, however, does not apply to some of the more prominent malefactors whose criminal opera­ tions have lately been exposed. But more basic than any of these factors in the government corruption is the indifference and slack­ ness of the electorate which has failed to exercise the vitally necessary discrimination in the choice of its representatives in the Government. That was why I was glad to see those full-page newspaper displays of your chamber. I was glad to see your organization of young men taking the initiative in this way, reading the members of Congress a lesson, setting an example to the rest of the electorate. Not because of race or nationality so much, but because of age, this is your country, this is your op­ portunity rather than ours of the older generation. Though we do not by any means consider ourselves has-beens and we are not ready to assume a role of innocuous desuetude, we of the older generation are ready to see you take the lead, as we did ourselves in our time. Importance of the English Language in the Philippines I SHOULD like to see the Junior Chamber of Com­ merce take the lead in one matter of what I be­ lieve to be of paramount importance to the future of the Philippines as a nation, as well as to the advance­ ment and welfare of the common people here as a class, — the retention of the English language. That is a 'highly political question and of an importance it is not possible to over-emphasize. It is tied in with no less than the survival of our nascent democracy here. There has been agitation, especially in connection with the observance last month of “National Language Week”, against English as the language of instruction in the primary schools, one proposal being that this should be carried on in what is misleadingly called the “national” language, actually Tagalog, with English taught only as one of the subjects one-half hour a day. There have also been appeals that Tagalog be made the medium of government publication and correspon­ dence. As against such and other similar proposals, I should like to give you the following in the way of background: It was some fifty years ago, and immediately af­ ter the establishment of the American regime here, that English was introduced, to all intents and pur­ poses, as both the official language and the language of the schools. I believe this to have been what was basically the most constructive measure ever adopted here. To support this statement, I may mention that the colonial policies of the Spaniards here and of the Dutch in Indonesia were in the respect of language, at least, essentially the same. Instruction in the public schools was in the vernacular. I ask you now to com­ pare the Filipino people, after fifty years of English, with the Indonesians, as to their general educational level, their international outlook, their ability to carry on as independent nations, their government processes. I believe that you will not be able to escape the conclu­ sion that the Filipino people are in the more advanta­ geous position. It was not part of any “imperialistic” plan, nor was it part of any deliberate effort to “Americanize” the country. It was a step which was forced on the new government authorities because of the practical impossibility of doing anything else. No national lan­ guage existed, or exists, and were the vernacular lan­ guages to have been adopted for government purposes, rather than Spanish, government procedures and cor­ respondence would have had to be carried on, and gov­ ernment publications and also school books would have had to be published, in at least some eight or ten of the principal Philippine vernacular languages. The purpose of the American Government from the first was to instruct the people in the ways of de­ mocracy and self-government, to unite them and mold them into a modern nation, and to induct that nation into the world concert of nations. That three-fold purpose was accomplished and could only have been accomplished through the resort made to the English language, — a language which has long ceased to be merely the language of English­ men and which, through the centuries, in the deriva­ tion of its magnificent vocabulary, its rich local varia­ tions, and its universal use, has become the cosmo­ politan world tongue. In introducing English, the early American au­ thorities here did no violence to any established na­ tional language, for, as I have said, there was none; neither were there any public schools, — only a few scattered parochial schools in the larger towns run by the parish priests and a few higher schools and colleges for the upper classes in Manila where Spanish was the language of instruction. The measure did no violence to any established national literature, for there was none. The genius, Rizal, was among other things, a great novelist, but he wrote in Spanish. Balagtas wrote in Tagalog, but he was no more than a parochial poet, although a good one. While Filipinos before the American regime had . distinguished themselves in art, especially in gold­ smith work, woodcarving, and in painting, there was practically no development in native literature. The ancient Filipinos had an alphabet or alphabets, but the art of writing was never general, and in the later rustic Philippines there was hardly time and certainly no great stimulus for the development of a literature, whether oral or written. What little there is is much mixed up with medieval European church and chivalric literature, and some Indian. It is very natural, of course, for you to love and to cling to the vernacular tongue of whatever part of the country you may come from. As the language of your home and childhood, as perhaps still the language of your most intimate relationships, as the language of your own division of your people and race, you do well to love and treasure it. But as such, you should not be ready, merely in the name of so-called “na­ tionalism”, to give your language up in favor of Taga­ log, which, though the language of the people of this part of Luzon, is not even the language spoken by the largest number of Filipinos. That distinction belongs to Visayan. I ask for the destruction of no language. I would urge the preservation of them all and their continued frank use so long as this is functional. The eighty or so vernacular tongues of the Philip­ pines are also of great scientific interest in the study of comparative linguistics and in ethnology in connec­ tion with the peopling of these Islands and your rela­ tionships with other peoples of this part of Asia. I have the greatest respect for such studies. But to develop these languages or any one of them into a medium for modern communication, especially with respect to government and law, let alone science and technics, or into a medium for distinguished liter­ ary expression, would seem to be as hopeless as it is unnecessary and futile. And you must understand that for the public schools now to be forced to teach Tagalog and to teach in Tagalog, imposes a task on them the nature of which the early American authorities thought impos­ sible of accomplishment because of the lack not only of school books in any of the vernacular languages but be­ cause of the lack of a sufficient number of teachers lacking. And do not forget that while it proved that the people of the Philippines, young and old, were eager to learn English, no such eagerness is being dis­ played outside of the Tagalog provinces to learn Ta­ galog. The English program here has been magnificent­ ly successful and it is only to be sustained to bring it to full fruition. English is understood everywhere in the Philippines today. It is used in the legislature, the courts, and in all government offices; in churches, schools, colleges, libraries, museums, hospitals, pri­ sons; in banks, postoffices, and telegraph stations; in factories, shops, stores, and offices; in clubs and asso­ ciations of all kinds, including chambers of com­ merce; even probably in the majority of homes; cer­ tainly in all cultured homes. The (press is almost entirely English. Only in radio-broadcasting, which at the beginning was wholly in English, has there lately been, I regret to have to say, some back-sliding, and that may be one reason why the better types of radio-reception instruments which permit of tuning in on American and British stations, are meeting with good sales. It is our rightful boast that English has been brought to a point where Filipino writers in Eng­ lish have begun to make a truly notable contribution to world literature in the form of poems, short stories, essays, novels, and plays. English has opened world civilization to the Phil­ ippines. In "English the Filipinos are in communica­ tion with all the world, are able to keep abreast of modern progress and themselves to take part in con­ tributing to it. In Tagalog they can only talk to themselves, some of them, and read Liwayway. Proposals that would turn the Philippines from the great international language of English to a socalled “national” one, again exemplify the spirit of a “nationalism” turned to the service not only of paro­ chialism, but of reaction. For English, besides being the world tongue, is also the language of what a wellknown historian calls those “elemental forces”, de­ mocracy and industrialism, and it is those forces that will build the great world federation that is already forming. We all, Americans as well as Filipinos, should de­ termine to think internationally rather than nationally, for that is the way progress points. The other way, for us here, leads back to the mangrove swamp and the kaingin, and worse, to a renewed serfdom to an ilustrado class which will always have the money to edu­ cate its sons at home and abroad while the outlook of the poor would be confined within the narrow limits of the vernaculars. What I have said are the broad considerations of the question, broadly sketched. But such “national­ istic” proposals become truly despicable when one senses that at least some of the impetus behind them comes from those who have an eye to the profit there might be in locally publishing school texts in the ver­ nacular. To such “business” schemes the progress* and whole future of the country would be callously or stupidly sacrificed. I myself, as the agent of the monotype typesetting machine, naturally support the development of local publishing enterprise, but I, for one, would not want any profits at such terrible cost. All that this country has spent and may continue to spend for text books published in the United States remains a small price to pay for what has been and is being accomplished through them in our public schools, our technical schools, and all our institutions of learning. I would urge that you, young businessmen, take thought to realize the importance of retaining English here as the common language medium because of its importance culturally, politically, and, although I have hardly mentioned it, economically, for English is also, of course, the world language of business. I hope that you will be able to restrain the schemers and zealots among us, and see to it that English will not become, in the future, merely a “secondary” language in your schools, like German and French and Spanish in our American schools. As such it could not con­ tinue to play its great, its overwhelmingly great part, in the advancement of the Philippines. If you wish to keep the feet of our mutually be­ loved Philippines on the path of progress, hold on to English and develop its use here more and more, rather than permit that use to lessen. It was we, of the older generation of Filipinos and Americans who set the Philippines on that path. We must leave it to you of the younger generation not to abandon it, and I am deeply convinced that as the English program was our greatest basic achievement, which made everything else possible, so the lapse of that program would bring with it bitter failure in every other field.... ^tT is tragic that our people in recent elections have tended to support the theory that the government should be the I source of all planning, of all control, and of bread and circuses for the multitude. It is tragic, because at this very moment we see the magnificent success of a system of liberty in the United States as contrasted with the compara­ tive poverty and dissatisfaction of many foreign nations. Liberty has succeeded in the United States in developing original thinking, original methods, and new ideas. It has succeeded in giving a wide distribution of property and income to our people. It has succeeded in building up a tremendous production of material things and a standard of living higher than has ever been seen before in the history of the world. A man from Mars who studied the world today would of necessity come to the conclusion that only the free can solve the problems of production.” Senator Robert A. Taft In the April Fortune 191 The 1949 Metropolitan Water District By Manuel Manosa Manager, Metropolitan Water District SOON after my assumption of office in the Metro­ politan Water District in 1947, I wrote two ar­ ticles for this Journal in which I gave an ac­ count of conditions as I found them and tried to ana­ lyze some of our problems at that time. Now that we have accomplished some of the things we had to do, 1 believe it is time to attempt another exposition of our future plans, all aimed at the further improve­ ment of our public service. We have always con­ sidered that the Metropolitan Water District’s busi­ ness is very much the public’s business. For the sake, therefore, of public information, I shall start by enumerating some of the 1947 projects which have recently been completed. Quietly on the 11th of this month (April), the second parallel Ipo-San Juan Aqueduct was formally opened for public use by the Secretary of Public Works and Communications. This is an accomplish­ ment of great importance as it doubles the District’s supply from the Angat River and completes the plan dreamed of years ago by Stroebe, Williams, Mack,, and Gideon, to deliver to consumers in Manila and neighboring municipalities some 80,000,000 gallons of water a day. This aim should have been achieved a long time past, but, because of conditions which de­ veloped before and during the last war, financial dif­ ficulties, and other factors which were briefly sum­ marized in the article in the September, 1947, issue of this Journal, realization was postponed until this day, and meanwhile the demand has risen during the dry season to the well-near incredible volume of 85,000,000 gallons a day, or 5,000,000 gallons more than the sys­ tem, even as enlarged, can yield. Much to our regret, therefore, we must confess that the demand still sur­ passes the present maximum capacity. Worthy of mention is the change in our billing system from quarterly to monthly. This is a marked improvement in the accounting system and we are beginning to feel its benefits. Our income is becoming steadier, and fewer complaints are received from con­ sumers, and those we do receive are not so serious as before. We are sending out over 60,000 bills every month, three times the pre-war number. However, the system is not yet operating at maximum efficiency mainly because of the difficulties of fitting the avail­ able equipment of the International Business Machines Corporation to the numerous requirements of our gov­ ernment entities. As soon as we succeed in simplify­ ing the auditing and some other official procedures, we shall be able to render more satisfactory service with respect to billing. The completion of 5 out of the 12 originally plan­ ned branch offices in the more densely populated and the more distant areas has also helped the administra­ tion of the District considerably without increasing the personnel. Two more are now under construction. These branch offices bring the District closer to the public and have relieved the over-crowding in our main office during business hours. The branch offices also give us more efficient area control. Another achievement is the recent re-assignment and general promotion of our personnel, which up to the last fiscal year, was still drawing pay on the preThe Ipo-San Juan Aqueduct while under construction. war scale. This measure has impressed upon the minds of all our employees that efficiency and initia­ tive are better means of attaining advancement and promotion than the pull-the-string method and at­ tempts at exercising “political” influence. With re­ gard to the effect on our laborers, we keep our fingers crossed, as it seems that they prefer complete freedom of action in their own affairs. Nevertheless, there seems to be a strong feeling of goodwill and a desire to cooperate with the management. By the end of this fiscal year, we shall have com­ pleted 5 standard laborers’ quarters, 2 engineer’s bungalows, and a tenement house sufficient to accom­ modate 8 bachelors in oui' Balara Compound; 1 bar­ rack with an officer’s quarters, 1 engineer’s residence, and 4 laborers’ quarters to accommodate the Constabu­ lary guards and the District personnel at the Ipo Dam; and 4 duplex and 3 standard laborers’ quarters at the Novaliches head-gates. With the exception of the du­ plex quarters, all of these buildings are of strong ma­ terials, equipped with modern sanitary conveniences, and are surrounded by ample pieces of ground for gardening. Another delayed structure that is nearing com­ pletion is the P400,000 covered distributing-reservoir which will triplicate the water-storage capacity of the San Juan Reservoir. Completion of this project has been delayed a few weeks because of the scarcity of reinforcing-steel in the market. When completed this reservoir will stabilize the water-pressure throughout Manila. Good progress is also being made in the rehabili­ tation and reconditioning of the old sewer-system of Manila. Without the means to acquire new equip­ ment from the United States to replace the worn-out and obsolete electric motors and sewage-pumps which were installed over 40 years ago, our shops have striven to recondition those in use for further utility. The accompanying picture will give an idea of the reconditioning work we had to do on our Tondo pumps. Plans for the enlargement of the present net of sewers as well as that for the new Capital City are being drafted; our hydrological and current studies along 192 Manila Bay are progressing; and the negotiations for the sites for sewage-treatment plants are reaching their final stages. We can state that of the items calling for recon­ struction and repair, such as the Main Office Build­ ing, the property bodega, and the garage, to be paid for out of the P2,000,000 awarded to us by the War Damage Commission, all are now about to be finished. The work of reinstalling destroyed fire-hydrants is two-thirds completed. We are, however, handicapped in the rehabilitation and extension of the water-mains because of certain difficulties beyond our contro.l: some of the streets through which lines have to pass are not yet owned by the City; in some projects the laying of pipes has had to be subordinated to traffic conditions; and, in the case of one extension, the castiron pipes, the furnishing of which was awarded to a local contractor through public bidding, had to be re­ jected for not meeting the specified standards. But even with these difficulties, we are still confident that these projects will be completed long before the period of grace set by the Rehabilitation Act expires. We can also report the near completion of the construction of the Pilot Filtration Plant at Montalban, financed by the U. S. Public Health Service, work on which was stopped for a while due to Huk activities in that area. And, finally, we can announce the com­ pletion of the water distribution system, valued at about P500,000, in the “Morning Side” portions of the Singalong, Mandaluyong, and Santa Mesa Heights subdivisions, the cost of which was advanced by the respective real estate companies. Future Plans EVERYBODY is aware of the fact that the Master Plan of the Capital City was recently signed by the President of the Philippines. This was the “goahead” signal for starting the development. Under Sec. 4 of its Organic Act (Republic Act 333), the planning and physical development of the Capital City is entrusted to a Commission directly responsible to the President and independent of any other government instrumentality. To finance its undertakings, Sec. 9 of the Act authorizes the Pres­ ident of the Philippines to issue, in the name and on behalf of the Republic of the Philippines, bonds in the amount of P20,000,000, the proceeds of which will be used as a revolving fund. On the other hand, the new Capital City site lies northeast of Manila, within the territory of the Metropolitan Water District. From these facts it may be inferred that there will be a number of interrelated administrative func­ tions in the future Capital City government and the governments of surrounding cities and municipalities, which situation will call for thorough study. The phases affecting the Metropolitan Water District are not the least important, but the best that can be done now is to wait until the nature of the government of the New Capital will have been determined by legis­ lation. In the meantime we may continue to study in what way the redistribution of the population will affect the Metropolitan District Area, how the various sections are likely to develop, what revenues may be expected, etc. As a temporary measure we have proposed a small and independent system to supply the Capital HilFarea with water during the construction period. This plan, which was described in the article published in the September, 1948, issue of this Journal, was favorably indorsed by the Capital City Planning Commission and has been approved by the Secretary of Public Works and Communications. For the permanent watersupply system of the Capital City, probably the most convenient solution would be to develop a new source under the financial responsibility of the National Gov­ ernment. As to Manila itself and the neighboring munici­ palities, bearing in mind that the Montalban source of supply as redeveloped will take care of the towns of Montalban, San Mateo, Mariquina, Taytay, and An­ tipolo, all of which are at present drawing on the Ipo-Novaliches system, and bearing in mind, too, that a separate supply system for the Capital City should also take care of all the areas lying in the upper sections of the municipality of San Juan, including the People’s Homesite Development, the War Damage Housing Compound, Camp Murphy, and Fort McKin­ ley, which are now being supplied by what is known as “Kubao high-pressure system”, we do not entertain the slightest doubt that if we perfect the Ipo-Novali­ ches system and improve the very old distribution sys­ tem of Manila and its environs so as to encircle the outlying areas with larger mains, we would have a reconditioned system which would meet all public needs for some years to come. We should also pro­ ceed definitely with the extension of the old sewer­ system of Manila so as to include the outlying districts within the net-work. Measures should be taken, too, to treat all collected sewage before it is discharged into the sea for the protection of our beautiful Manila Bay. JVoni-OMt Impellert One of the new Branch Offices 193 The following long-term program of improvement, to be executed in 5 years’ time, has been submitted to higher authorities: A. WATER SOURCES AND TREATMENT: 1. Enlargement of Filters ............................. P 1,500,000 2. Additional Setting Basins ......................... 735,000 3. Mixing Basins ............................................ 585,000 4. Completion of San Juan Covered Reser­ voir 270,000 5. 54” By-Pasa at Covered Reservoir ......... 40,000 6. Additional 25,000,000 Gallon Covered Re­ servoir 825,000 SUB-TOTAL FOR WATER SOURCES .. P 3,955,000 B. JKATER FEEDER MAINS and DISTRIBU­ TION SYSTEM: 1. Completion of 42” Feeder Main at Santa Mesa Boulevard ............................................ P 338,000 2. Completion of Aviles-Arlegui Feeder Main (42” and 36”) .............................................. 42,000 3. Espana Feeder Mains (48” Cone, and 36” and 30” C. I.) ............................................ 1,900,000 4. 24” C. I. Feeder Main along Antipolo, Tecson, N. Harbor Boulevard, Del Pan, Boni­ facio, I. Peral ............................................ 1,358,000 5. Santa Mesa-Paco-Rizal City (Pasay) Feed­ er Main ........................................................... 1,534,000 6. 16” C. I. Main along Manuguit Street .. 275,000 7. 1,000 cu. m. Tank at Balintawak ............... 210,000 SUB-TOTAL FOR WATER FEEDER MAINS AND DISTRICT SYSTEM .. P 5,657,000 C. SEWERAGE SYSTEM: 1. Additional North Sewer Outfall ................P 1,700,000 2. North side Sewage Treatment Plant .... 1,500,000 3. South side Sewage Treatment Plant........ 1,500,000 4. Sanitary Sewer Mains Extension ............ 1,500,000 SUB-TOTAL FOR SEWERAGE SYSTEM P 6,200,000 D. MISCELLANEOUS IMPROVEMENTS: 1. Miscellaneous Improvements ....................... P 2,188,000 (Necessary Water Main Extensions, Buildings, etc.) SUB-TOTAL FOR MISCELLANEOUS IMPROVEMENTS .......................................P 2,188,000 GRAND TOTAL FOR FIVE-YEAR CON­ STRUCTION ................................................ P18,000,000 In formulating this program we have tried our best to coordinate the capital requirements with the operating budget for each year. The list as well as the period is long enough to offer sufficient flexibility for necessary changes in priorities in the execution. The estimates of cost have also been made purposely liberal in order to enable us to meet unforeseen market conditions or changes in methods of construction. The reason for doing so is principally the short-period terms for repayment of the loans to be obtained from our Central Bank. Before concluding it would not be amiss to say that in addition to this 5-year program of construction and improvement, we propose also to wage an inten­ sive campaign for water-conservation. A compara­ tive study of the water-consumption during the last 3 years has led us to the conclusion that a large part of the supply delivered to the system is wasted or un­ accounted for. If this loss or waste could be preven­ ted, we would be able to satisfy all requirements for some years to come. The success of the conservation campaign would of course depend on the cooperation extended by the public not only by promptly repairing leaks on private premises and by avoiding wasteful use of the water, but also by reporting leaks, damaged pipes, and open hydrants wherever seen to the Metro­ politan Water District. We earnestly solicit the co­ operation of the public. Gold and Recovery* With some observations on a managed currency By Joseph Stagg Lawrence Vice-President, Empire Trust Company, New York ONE of the major problems confronting the Government and the people of this country in the post-war period has been inflation. Since 1939 the cost of food has gone up 147.3%, wages 182.2%, wholesale prices 112.4%, and transportation, as measured by railroad freight-rates, 52%. This rise in prices has pervaded almost every field in our economy, with the single exception of gold. Even the Pres­ ident’s salary and his expense account reflect the changing value of the American dollar. I need hardly mention to this audience that the decline in the value of the dollar has presented us with one of the most acute political issues of the post-war period. On three sepa­ rate occasions, in his capacity as President of the United States, Mr. Truman has asked Congress for extraordinary powers to deal with this problem. Throughout the recent campaign he taxed the 80th Congress with inflation respon­ sibility for its failure to continue the OPA and grant him the necessary authority to keep prices at reasonable levels. In his analysis of the problem, the President has accused, at various times, the grain speculator, the high profits of corporations, the conspiratorial monopolies of big business, and the alleged failure of our banks to keep credit within bounds. * Address before the Colorado Mining Association, Denver, Colorado, Tuesday, February 1, 1949. At no time and on no occasion did he place his finger on the single valid cause of the distressing rise in prices from which this country has suffered. That cause, as every mone­ tary economist has long since pointed out, is the excessive is­ sue of currency and the enormous expansion of bank credit necessitated by the fiscal practices of the Federal Government itself. Nor has the President, or any of his advisers, pointed out that the only effective check on prices which all the experience of history has ever demonstrated has been the check which an honest gold standard provides. As we move from the President to the Federal Reserve authorities, we find a similar concern for inflation. Here, again, remedies are periodically proposed to correct this per­ vading ailment. In the 1945 annual report of the Federal Reserve Board, Mr. Eccles suggests that the Board be grant­ ed authority to impose any reserves upon the banks of the country which it might deem desirable. It also asks for the right to determine the character of a bank’s bond portfolio. It asks for further qualitative credit controls similar to the limits on borrowing for security purchases and the regulation of consumer credit. Here is an official body charged parti­ cularly by law to operate the American central banking system in a fashion that will promote a sound banking structure and an honest currency. It has ample funds for research and is able to employ outstanding experts in the field. Yet, in spite of this peculiarly responsible and competent position, the 194 Board has failed in the last fifteen years to call attention to the one condition which alone will serve to check the infinite expansion of bank credit and the unlimited issue of folding money — namely, an honest gold standard. What is the reason for this startling failure? Whv is it that the Administration and the executive agencies capable of diagnosing our price problem and prescribing authentic re­ medies have meticulously avoided the only possible sound pres­ cription? The answer is to be found in a seductive ideological importation known as a managed currency. This theory, like so many others that have confused and bedeviled the American people in recent years, has come from England. Probably the chief exponent of a managed currency in the last generation has been the late Lord Keynes. Im­ mediately after the First World War, John Maynard Keynes was one of the stoutest supporters of an honest gold standard. In fact, some of the most eloquent encomiums ever penned on behalf of the yellow metal have come from the hand of Lord Keynes himself. However, during the period of the early 30’s, particularly after Great Britain was forced off the gold standard in 1931, the views of Mr. Keynes changed. He not only believed it best for a government to control credit and currency to regu­ late the price level, but that it was a solemn duty for every government to do so. Because of their great importance, this injunction applied particularly to Great Britain and the United States. Under his skillful exposition Mr. Keynes found converts both in England and, this country. As corollaries of a man­ aged currency, he added the theories of pump-priming and government control of the bond market. He was frankly com­ mitted to a program of continuous inflation. Only in this way could England find relief from the succession of crises which had plagued that country during the 30’s and the con­ tinuation of which he apprehended after the Second World War. As a result of this thinking, the early discussions of the Bretton Woods agreement revealed a strong objection on the part of the English to any use of gold or even to any refer­ ence to it in the agreement. It was argued by them that gold was an anachronism, a relic of barbaric usage which had no validity as a monetary factor in the modern world. They argued that the production of gold was an actual social waste. It involved the laborious abstraction of the yel­ low metal from the mines of Utah and South Dakota, the placers of California and Alaska, and the re-burial of this same gold in the bowels of the earth in Kentucky. Repeatedly they pointed out what to them seemed a selfevident truth. If by design or through some natural calamity, the gold at Fort Knox were to disappear without the know­ ledge of the American people, it would make not the slightest difference in the acceptance of the American dollar or in the value of that dollar. This bland sophistry has made such headway in American thinking that the authorities, wrestling today with the pro­ blem of inflation, fail even to mention gold as a possible check on the evaporating value of the dollar. In spite of an offi­ cial conspiracy of silence which shrouds this subject, we know that the American people, like all other people, have a deepseated longing for the security which a gold unit of exchange affords. Elsewhere in the world men are eagerly bidding for the precious metal. In Mexico the peon, in France the peasant, in China the coolie all seek this tried and tested haven for their savings. It is a shocking comment on the deterioration in the American concept of freedom that this country leads the way in denying to the individual the right of refuge in gold which is still enjoyed by people in other parts of the world. I do not mean to imply that gold will automatically stab­ ilize the price level and establish a permanent and invulner­ able value fob the dollar. Fortunately, wherever gold is used as a base for a currency, it affords considerable breathing space for price levels and business fluctuations. The competent advocates of gold have never argued that it prevents price fluctuations or eliminates the peaks and the valleys of the business cycle. However, it does place definite limitations on the range of price fluctuations. It does so be­ cause it acts as a check upon the infinite expansion of cur­ rency and credit. It makes impossible the type of extreme price behavior which is now taking place in other parts of the world, price behavior whose ultimate correction can come only in the form of currency confiscation or repudiation by the government. With this limited but vital function in mind, what can we do in this country to return to a solid currency basis? Many students who understand the operation of a gold stand­ ard and who believe that monetary salvation can be found only in a return to gold, fear the resumption of specie pay­ ments by our Government. They argue that any attempt to redeem currency at $35 an ounce of gold might result in a rush on the American Mint which would denude the Treasury of its gold stock. This fear is probably well founded. Bear in minjkthat the price of gold was fixed in 1934« at $35 an ounce afflrthat since then the wholesale price index has gone up 125%, hourly wages 154% and fuel 88%. Only gold retains a nominal value of $35 an ounce. Economists know that supply and demand at any time depend upon price and that a fair price is that which equates supply and demand. If, as a result of arbitrary price fixing, a commodity is set at a price that is too high, supplies become redundant. This was illustrated by the pre-war accumula­ tions of cotton and grain by our Government. On the other hand, if prices are fixed at too low a level, we have scarcities and grey markets. The illustration of that is the present situation in steel and automobiles. Scarcity here is due entirely to a price that is too low. (Let us assume now that our Government were to offer wheat at 95 cents a bushel, hogs at $5.00 a hundred, and cot­ ton at 12 cents a pound. These are the prices that prevailed in 1934. I am sure, in spite of the growing supplies of these commodities at the present time, they would prove unable to satisfy demand at these price levels. Even though we have approximately two-thirds of the known gold stocks of the world, even though we have 5.6 times as much gold as we had in 1929, even though the ratio of gold stocks to total demand deposits and currency is more favorable today than it was during the 20’s or the period prior to the First World War, an unrealistic price of $35, if maintained in an open market, would probably cause a dis­ astrous drain on our gold stocks. It is in the light of this possibility that we suggest an intermediate step. Let the Government change the provisions of the Gold Reserve Act of 1934 and permit a free open mar­ ket in gold. There is no reason in equity, morals, or good economic sense why the miner should not be permitted to take his gold to the mint, accept 35 paper dollars for it, or re­ ceive it back in properly certified form and sell it in the best market he can find. After all, every other producer, whether of services or of tangible- goods has precisely this same right. It is a right which every one takes for granted in a free economy, a right which is enjoyed by people elsewhere who presumably do not have the advantages that we possess. In such a market where bidders are free to pay any price they choose and where sellers can offer their supplies, a fair value would be developed. If, in the light of this value as­ certained over a period of time, it seems that the Government could resume specie payments at $35 an ounce, then certainly it would be safe for it to do so without incurring the danger of a disastrous drain of gold stocks. On the other hand, if such a market should demonstrate over a period of time a value of some higher level — say $45 to $50 — then, obviously, it would be unrealistic for our Gov­ ernment ever to attempt to return to a $35 an ounce basis. Here is a sound test of the possible return to a gold standard, a practical test of the value for gold on which such a return could be effected. The men who argue that a free gold market will tend to confuse the public and create chaos are simply afraid to submit to this on a fair, practical basis. “There is no communism in the Marxist sense in the Soviet Union, and no capitalism in the United States as it is con­ ceived in Das Kapital." — Anne O’Hare McCormick in the New York Times. 195 Foreign Trade of the Philippines, by Country: 1948 __________________________ By the Bureau of the Census and Statistics_____________ _ Country | Total Trade Value (Pesos) 1 P61 cent J Distribution | 1 1 Per 1 | Imports cent Total Exports | |Distribution| | Per cent Distribution Domestic i exports | Re-exports Total............. 1,774,819,524 100.00 1,136,409,068 100.00 638,410,456 100.00 594,644,435 43,766,021 United States............. 1,357,413,940 76.48 939,228,876 82.65 418,185,064 65.51 405,472,913 12,712,151 China ........................... 49,834,803 2.81 45,784,484 4.03 4,050,319 .63 2,169,164 1,881,155 Dutch East Indies ... 40,363,621 2.27 30,083,974 2.65 10,279,647 1.61 769,830 9,509,817 Japan ........................... 35,227,715 1.98 4,192,546 .37 31,035,169 4.86 29,144,725 1,890,444 France ....................... 32,496,543 1.83 1,751,232 .15 30,745,311 4.82 30,730,106 15,205 Canada ....................... 26,328,765 1.48 14,998,174 1.32 11,330,591 1.77 11,134,390 196,201 Great Britain.............. 17,235,124 .97 10,587,158 .93 6,649,966 1.04 6,475,249 172,717 India ........................... 16,676,785 .94 13,142,718 1.16 3,534,067 .55 3,417,808 116,259 Denmark ................... 16425,907 .91 613,894 .06 15,512,013 2.43 15,508,771 3,242 Poland ......................... 14,356,548 .82 — — 14,356,548 2.25 14,356,548 _ Italy^k.......................... Belgiwn ..................... 13,375,388 .76 2,300,526 .20 11,074,862 1.73 11,074,031 831 12,469,590 11,958,552 .71 8,414,244 .74 4,055,346 .64 4,053,136 210 British East Indies .. .67 11,745,060 394,564 1.03 213,492 .03 7,857 205,635 Germany ..................... 11,412,272 .64 .03 11,017,708 1.73 11,017,708 _ Switzerland ............... 8,511,849 .48 4,954,224 .44 3,557,625 .56 3,548,125 9,500 S'weden......................... 7,927,903 .45 3,945,664 1,795,250 .35 3,982,239 .62 3,982,239 _ Hongkong ................... 7,618,896 .43 .16 5,823,646 .91 2,605,745 3,217,901 Netherlands ............... 6,927,534 .39 1,069,586 .09 5,857,948 .92 5,857,948 _ Arabia ........................ 6,906,851 .39 6,578,412 .58 328,439 .05 328,439 _ Austria ...................... 6,762,323 .38 779,760 .07 5,982,563 .94 5,982,563 _ Norway ..................... 6,396,083 .36 893,4.36 .Q8 5,502,947 .86 5,502,947 _ Argentina................... 5,370,572 .30 2,834,126 .25 2,536,446 .40 265,575 2,271,071 Ecuador .................... 5,253,533 .30 5,253,566 .46 1,967 _ 1,967 Brazil ........................ 4,033,187 .28 4,898,092 .43 35,095 .01 35,095 _ Australia ................... 4,326,697 .24 2,515,550 2,428,636 2,507,038 . .22 1,813,147 .28 42,623 1,770,524 Spain ......................... -4^251,101 .24 .21 1,822,465 .29 1,814,935 7,530 Hawaii ........................ 4,246,158 100.00 .22 1,739,120 .27 1,287,132 451,988 Persia.......................... 3,644,336 .21 3,644,336 .32 — _ _ Korea .......................... 3,423,719 .19 136 — 3,423,583 .54 11,245 3,412,338 British Africa .......... 3,359,883 .19 94,792 .01 3,265,091 .51 2,558,291 706,800 Colombia ..................... 3,170,158 .18 12,410 — 3,157,748 .49 3,157,748 Venezuela ................... 2,818,468 .16 82,944 .01 2,735,524 .43 2,735,524 _ Siam ............................ 2,722,059 .15 1,051,140 .09 1,670,919 .26 1,179,596 491,323 Czechoslovakia ............ 2,500,859 .14 415,818 .04 2,085,041 .33 2,085,041 French East Indies ... 2,314,059 .13 199,740 .02 2,114,319 .33 332,411 1,781,908 Malaya........................ 1,864,200 1,542,400 .11 205,612 .02 1,658,588 .26 1,099,299 559,289 Mexico ......................... .09 1,515,662 .14 26,778 — 9,762 17,016 Cuba ............................ 1,470,440 .08 1,465,600 .13 4,840 _ 4,840 _ Panama, Republic of . 1,338,633 .08 12,000 — 1,326,633 .21 1,326,633 _ French Africa ............ 1,189,633 .07 — — 1,189,633 .19 1,215 1,188,418 Costa Rica ............“... 952,563 .05 900,290 .08 52,273 .01 52,273 Guam ........................... 915,270 .05 — — 915,270 .14 668,662 246,608 Egypt.......................... 769,420 .04 769,420 .07 _ _ Uruguay ..................... 730,952 .04 608,592 .05 122,360 .02 105,574 16,786 Syria ........................... 706,191 .04 — — 706,191 .11 706,191 Porto Rico ................. 631,171 .04 19,306 — 611,865 .10 611,865 _ Portugal ..................... 595,165 .03 264,112 .02 331,053 .05 331,053 _ Ceylon ....................... 554,140 .03 554,140 .05 — _ _ British New Guinea .. 438,131 .02 — _ 438,131 .07 _ 438,131 Russia ......................... 421,388 .02 421,388 .04 _ Palestine ..................... 332,000 .02 — — 332,000 .05 203,000 129,000 Chile ........................... 277,342 229,800 .02 546 — 276,796 .04 272,209 4,587 Portuguese China ... .01 — — 229,800 .04 _ 229,800 New Zealand ............. 188,396 .01 182,078 .02 6,318 _ 6,318 Panama (Canal Zone) 149,103 .01 _ _ 149,103 .02 149,103 _ British West Indies .. 148,900 .01 49,108 — 99,792 .02 99,792 _ Portuguese Africa . . 100,037 .01 — — 100,037 .02 37 100,000 Peru .......................... 88,031 .01 42,314 — 45,717 .01 45,717 Turkey ....................... 83,354 .01 142 _ 83,212 .01 73,600 9,612 Dominican Republic .. 68,112 — 60,776 .01 7,336 7,336 Dutch West Indies .. 54,408 — 200 — 54,208 .01 54,208 Paraguay ..................... 53,809 — 52,608 — 1,201 1,201 Haiti ........................... 47,175 — — — 47,175 .01 47,175 Dutch Guiana ............ 45,221 33,070 — _ _ 45,221 .01 45,221 British Oceania.......... — 33,070 _ Ireland...............•........ 31,080 26,662 — 16,808 _ 14,272 _ 14,272 Findland ..................... — 26,662 _ _ British Honduras .... 25,972 — _ _ 25,972 _ 25,872 Aden ........................... 17,941 13,685 — — — 17,941 _ 17,941 _ Nicaragua ................... — 8,668 _ 5,017 _ 5,017 Hungary ..................... Other (U. S.) Insular 9,156 — 9,156 — — - Possessions ............. 4,517 — _ _ 4,517 _ 2,493 2,024 Salvador ..................... 3,103 1,582 — — _ 3,103 _ 3,103 Honduras ................... — _ _ 1,582 _ 1,582 _ Guatemala................... Azores and Madeira 1,460 — — — 1,460 — 1,460 - Islands ..................... 1,004 _ 1,004 _ _ _ Liberia ........................ 872 — _ 872 _ 872 British Guiana .......... 180 — _ _ 180 _ 180 _ Jugoslavia ................... 34 — _ _ 34 _ 34 _ 196 Foreign Trade, 1948, by Nationality of Trader Nationality Total Trade Imports Exports (Dom. Re-exports) Domestic Re-exports Total ............................... Pl,774,819,524 Pl,136,409,068 P638,410,456 P594,644,435 P43,766,021 American ............................... 659,983,109 319,219,012 340,764,097 321,678,796 19,085,301 Chinese ................................... 541,322,558 437,799,594 103,522,964 100,399,540 3,123,424 Filipino .................................. 383,740,919 259,501,708 50,037,898 124,239,211 108,320,273 15,918,938 British .................................... 73,777,645 23,739,747 22,426,342 1,313,405 Spanish .................................. Swiss ..................................... 36,603,780 27,274,004 8,046,964 28,556,816 28,422,915 133,901 27,031,392 242,612 201,420 41,192 British Indian ...................... 13,784,970 13,487,028 297,942 102,978 194,9 GA l,309,08F French ................................... 8,449,226 2,582,116 5,867,110 4,558,073 Danish ................................... 7,447,981 1,049,998 6,658,536 6,397,983 6,397,683 300 Syrian .................................... 6,944,327 285,791 285,791 Panaman ............................... 6)087,984 6,064,920 23,064 22,139 925 Dutch ..................................... 3,220,182 483,830 2,736,352 509,850 2,226,502 Swedish ................................. 1,671,714 1,175,354 1,663,230 8,484 2,884 5,600 German ................................... 142,212 1,033,142 1,033,142 _ Argentinian ........................... 1,064,051 676,620 851,168 212,883 211,723 1,160 Turkish .................................. 676,620 262,586 — — _ Dutch-Malayan .................... 354,305 91,719 — 91,719 Siamese .................................. 274,072 170 273,902 — 273,902 Belgian .................................. 235,684 235,684 — — __ Jewish .................................... 181,685 118,652 63,033 2,060 63,033 _ Armenian .............................. 133,080 95,564 131,020 460 1,600 Norwegian ............................ 94,864 700 700 _ Italian ................................... 77,618 77,118 500| 500 _ Australian ............................. 39,366 • 3,316 36,050 800 35,250 Austrian ................................. 38,492 38,492 — — _ Polish ..................................... 25,202 22>654 2,548 — 2,548 British-Malayan ................... 13,890 13,890 — — _ Egyptian-Malayan .............. 13,132 13,132 — — — Portuguese ............................. 12,613 10,232 7,220 5,393 5,393 — Greek ..................................... 10,232 — — — Hondurian ............................. 7,752 7,752 — — — Abyssinian ............................. 7,614 7,614 — — — Cuban ..................................... 5,953 — 5,953 — 5,953 Czech ..................................... 3,056 2,656 400 — 400 Russian .................................. 2,238 2,238 •1,354 — — _ Irish (Free) ......................... 1,354 — — — Paraguayan ........................... 674 674 — — — Slovak ............:...................... 560 560 — — — Indochinese ........................... 476 476 — — — Ecuadorian ............................ 100 100 — — — Hungarian ............................. 30 30 — — — Others .................................... 60,358 60,358 — — — Ten Principal Exports, 1948 and 1947 Country of destination 19 4 8 1 9 4 7 Country of destination 19 4 8 19 4 7 Unit _ 1 Value Quant,ty | (Pesos) _ 1 Value Quant,ty | (Pesos) Unit _ 1 Value Qtunuty | (pesos) _ . 1 Value Quant,ty | (Pesos) 1. Copra— Total—Kilo . 586,993,362 309,400,124 1,008,402,700 354,415,334 United States . . 333,826,462 181,153,992 586,801,096 207,023,362 62,9 10,85 1 30,031,385 96,386,038 33,645,953 Poland .............. 26,793,637 14,356,648 13,405,152 3,864,711 28,308,887 13,940,473 10,261,600 3,507,900 Denmark ......... 20,755,657 10,670,438 44,768,937 .16,837,796 Italy ......... 19,857,820 9.327,071 42,1 52,453 13,259,485 Canada ................ 15,717,416 8,954,540 26,321,738 10,291,466 Germany ............ 17,998,440 8,918,525 8,661,400 2,468,475 Austria ................ 10,160,005 5,864,256 10,210,800 3,819,111 Netherlands . .. . 8,260,094 4,537,053 9,074,000 1,991,828 Other countries . 42,802,093 21,645,743 160,359,486 57,705,247 2. Abaca, unmanufactured— Total—Bale 592,837 60,294,087 680,691 63,432,374 United States ., 267,344 30,377,821 480,739 44,870,176 Japan ................ 127,489 11,548,370 6,663 676,251 Great Britain 62,660 5,031,115 59,002 5,336,345 Denmark- ......... 23,180 2,317,192 20,591 1,865,984 Norway ............ 19,871 2,283,432 13,310 1,221,060 Germany ............ 18,896 1,903,641 2,150 178,858 Belgium ................ 14,655 1,415,023 28,370 2,713,153 Canada ................ 6,497 794,607 7,302 799,031 Hongkong ......... 8,243 653,778 5,956 446,479 France .................. 8,642 636,697 14,477 1,222,471 Other countries . 35,360 3,329,411 42,131 4,102,558 3. Dessicatcd coconutTotal—Kilo . 61,432,545 57,491,099 21,181,338 19,054,656 United States . . 60,058,156 56,124,011 20,966,653 18,821,257 Canada ................ 1,192,778 1,164,782 77,115 77,792 Norway................ 92,519 100,000 — — Hawaii ................ 62,091 74,630 37,800 50,007 Belgium .............. 27,001 27,676 — — Norway .............. — — 99,770 105,600 4. S»gor, centrifugal— Total—Kilo . 216,770,574 41,580,077 18,849,585 4,081.188 United States .. 216,770,008 41,5 80,077 18,849,135 4,081,058 506 152 Netherlands .... 60 24 — 450 130 197 Country of destination Country of destination 19 4 8 1 1 9 4 7 ' Unit 1 Value Quintlty 1 (Pesos) 1 Value | Quant,ty | (Pesos) 19 4 8_____ . | Value Qtlantlty I (Pesos) _______ 1 9 4 7 _____ I Value Quint,ty I (Pesos) 5. Coconut oil (Inedible and edible) — Total—Kilo . 47,278,774 40,138,581 18,144,956 13,940,603 United States . . 44,485,582 38,054,546 11,898,020 9,145,970 Italy .................. 1,412,544 1,274,432 3,075,326 2,186,004 British Africa . 5 90,047 589,71 1 502,275 573,470 Venezuela ......... 400,000 445,208 — — British West 12 5,060 118,307 Indies ...... 111,100 99,792 — — Arabia ................ 52,991 67,758 — — Haiti .................. 5 3,987 45,989 — — Japan ................ 18,924 17,204 — — 15,602 15,118 — — Other countries 13,037 10,516 2,669,335 2,03 5,1 59 6. Embroideries— Total ............ 13,917,276 2,335,1 16. United States — 13,906,135 — 2,326,764 Guam ................ — 7,739 — 5,553 Hawaii .............. __ 2,803 __ 2,799 Panama CCanal 472 Australia ............ 102 — — Denmark............ — 25 — — 7. Pineapples (Camied) — Total—Kilo . 15,339,787 7,648,327 — United States . . 15,339,787 7,648,327 - — 8. Copra Meal or Cake— Total—Kilo 5 3,670,638 7,425,325 27,088,523 4,391,434 Denmark............ 18,029,905 2,472,489 9,535,973 1,356,632 Sweden .............. 15,681,133 2,300,314 8,034,111 1,461,080 United States . 14,147,009 1,799,210 — — Netherlands .... 4,971,870 707,332 2,239,409 439,844 Belgium................ 485,030 90,865 4,159,650 640,3 58 France .................. 254,000 39,100 707,200 108,000 Italy ..................... 101,600 16,000 __ __ French Africa . . 91 15 __ __ Norway ................ — __ 1,000,000 154,000 Finland ................ — — 496,980 102,500 Other countries . — — 915,200 129,020 9. Chromite— Total—Kilo . 241,979,841 5,191,779 16,151,200 446,500 United States 220,3 Id,141 4,780,274 16,151,200 446,500 Great Britain . . . 20,044,000 3 55,500 __ Japan ..................... 1,625,600 56,000 __ __ Belgium................ 100 5 — — 10. Rope— Total—Kilo . 3,862,25 1 4,066,577 2,342,574 2,904,420 Malaya ................ 868,920 903,801 373,054 487,393 United States . . 697,445 686,997 914,714 1,031,274 Dutch East Indies 613,776 660,030 55,718 73,849 Chile ..................... 261,288 272,209 156,819 195,765 Hongkong ........... 228,498 . 231,916 95,073 118,985 British Africa . . 157,306 213,365 138,488 195,765 French East Indies .............. 175,191 191,611 22,142 33,593 Arabia .................. 125,5 33 180,214 8,090 11,414 Siam ..................... 151,210 133,802 54,365 73,389 Porto Rico ......... 127,794 116,511 31,504 36,105 Other countries . 455,290 476,121 492,507 646,888 Other exports (including re­ j exports) re-ex­ ports ................ 46,891,007 66,095,079 Total exports 5 94,644,43 5 531,096,704 Ten Principal Imports, 1948 and 1947 1948 1947 Country of Value Value Origin (Pesos) (Pesos) Country of Origin 1948 Value (Pesos) 1947 Value (Pesos) 1948 1947 Country of Value Value Origin (Pesos) (Pesos) 1. Cotton and manufactures Total .... 137,363,424 153,442,326 United States 111,813,252 139,561,292 China ......... 19,656,188 8,069,832 Great Britain 1,839,546 1,038,198 Switzerland . 1,566,5 50 458,968 Japan ......... 1,536,438 1,842,836 France ..... 447,932 213,422 Hongkong . . 179,636 5,462 Belgium . .. 123,026 40,632 Canada .... 57,006 11,072 Czechoslo­ vakia .... 4.5,266 10,060 Other Countries . 98,584 2,190,5 52 2. Rayon and othei' synthetic textiles Total ... ’ 105,019.904 90,584,900 United States 104,694,694 90,312,468 Switzerland . 137,134 112,418 China ......... .66,044 50,472 Italy ............ 39,510 5,750 France ......... 21,882 18,596 Belgium .. . 20,760 41,486 Hongkong . 10,236 34 Japan ......... 6,474 1,818 Spain ............ 6,372 1,388 Sweden .... 5,492 5,326 Other Countries . 11,306 35,144 3. Grains and preparations Total .... United States Ecuador . . . China ......... Great Britain Australia Germany Hongkong Other Countries . 4. Mineral oils 84,110,422 68,549,862 6,872,646 5,006,400 1,539,788 983,462 500,640 353,232 204,552 43,314 23,900 32,626 (Petroleum products) 98,834,050 70,588,036 16,444,314 4,541,016 1,717,840 4,980,922 14,486 152,182 88,982 16,268 290,004 Total . . . Dutch East United States British East Russia ” Switzerland . Great Britain Australia . . . Italy ............ 5. Automobiles, parts of and tires Total ... 63,910,034 United States 63,5 13,932 68,503,810 36,842,052 51,414,052 50,924,822 Great Britain 339,020 196,822 France......... 33,248 67,700 Canada .... 14,358 141,118 Italy ............ 5,624 70,422 Switzerland . 2,452 — Australia 1,400 — China ......... — 13,168 6. Iron and steel and manufactures Total . . . 55,888,764 46,144,372 United States 45,013,710 40,327,750 Belgium . .. 4,175,418 1,984,976 China ......... 2,654,050 2,493,690 Italy ........... 1,206,514 3,480 Great Britain 1,169,682 992,012 Japan ........... 854,650 40 Hongkong 387,1 54 59,566 Sweden .... 1 37,948 92,122 Germany 72,224 — Canada .... 38,242 18,536 Other Countries . 179,172 166,200 7. Tobacco and manufactures Total . . . 49,391,482 43,962,246 United States 49,315,484 43,920,936 Canada .... 75,012 6 Hongkong . . 744 424 Great Britain 148 104 China ......... 78 30 Siam ............ 10 — Dutch East Indies . . . 6 ' 40.756 (Continued at bottom of next page) 198 The Business View A monthly review of facts, trends, Office of the President of the Philippines From an Official Source March 28—The National Economic Council approves in principle the establishment of an Applied Science Laboratory under the National Development Company to be directly res­ ponsible to the general manager. It will not conflict with the Institute (formerly the Bureau) of Science as the latter is engaged principally in basic research. An initial appropria­ tion of P300,000 is recommended. The Council also considers a proposal to amend the Philippine Flag Law by reducing from 75% to 60% the amount of Filipino capitalization of firms en­ titled to the benefits of the law and refers the matter to Sec­ retary of Commerce and Industry C. Balmaceda for further study. A proposal to reduce the tariff of imported cement from 65 to 32 centavos per 100 kilos is rejected by the Coun­ cil, the action being said to be based chiefly on objections of the general manager of the government Cebu Portland Cement Company who stated that the Company “is able to supply all cement requirements”. March 29—The Cabinet on recommendation of Secretary Balmaceda approves granting the 20% import quota reserved under present regulations for allocation to new importers, ex­ clusively to Filipino importers. Balmaceda pointed out that the “80% allocation open to all nationalities is mostly in the hands of alien importers, so that the measure to reserve 20% exclusively for Filipinos can not be described as discrimina­ tory”. The Cabinet also decides to send an air mission abroad to negotiate air-transport agreements with Siam, India, Pa­ kistan, Greece, Saudi Arabia, and Egypt, along the pattern of agreements alreadv concluded with the United States and the United Kingdom. The mission will be composed of represen­ tatives of the Department of Foreign Affairs, the Civil Aero­ nautics Administration, and the Philippine Air Lines. Secretary of Finance Pio Pedrosa announces that in line with a recent Cabinet decision, the Government will shortly is­ sue two kinds of government bonds to be turned over to the Central Bank in exchange for cash advances which the Bank will make to th'e Government for rehabilitation and development purposes. They will be 10-year (1) registered and (2) bearer bonds, bearing 4% interest, in denominations of P20, P50, P100, Pl,000, P5,000, and P10,000. Felipe Buencamino, director of the government rice pro­ duction program, states that the program envisages not only the three projects in Ala Valley, Mallig, and Mindoro, on which the Government will concentrate for the first 3 years, but also the eventual cultivation of previously surveyed areas in Agusan, Bohol, Panay, Nueva Ecija, Cagayan, Camarines, and the Tablas Plateau in Negros. By the end of 3 years, the 10,000 hectares of each of the first three will have been fully develop­ ed and after the 10th year over 500,000 hectares of land will be producing rice at an expected rate of 30 cavans a hectare. The program calls for an outlay of P300,000,000 but will be self­ liquidating after the third year. NDC general manager V. Sabalvaro states that over 100 tractors are now in operation on the various government rice projects. March 30—Secretary Balmaceda informs the Cabinet that forecasts, by Manila businessmen the U.S. Department of Agriculture has endorsed the resto­ ration of the 2-cent differential in favor of Philippine coconut oil which would enable the Philippines to receive approximate­ ly P120,000,000 a year in excise-tax rebate. President Truman is expected to issue a proclamation soon. Last month President Quirino asked Ambassador Elizalde to explore this possibility, as under the Bell Act this differential in favor of the Philip­ pines applies. It was suspended after Liberation by the In­ ternational Emergency Food Council because of the then world­ wide shortage of oil, recently the IFEC discontinued the allo­ cation of fats and oils because of a presently sufficient world supply. The President approves a loan of Pl,900,000 for 40 pas­ senger coaches for the Manila Railroad Company to be pur­ chased from SCAP which submitted the lowest bid. Previously, 7 locomotives were purchased from the Vulcan Iron Works and 22 passenger coaches from the Pullman Standard Car Company, both in the United States. March 31—The President signs Executive Order No. 209, amending the Import Control Executive Order No. 193, the amendment providing, among other things, that the 20% re­ served for “new importers” of controlled goods is reserved exclusively to Filipinos. The President administers the oath of office to Col. Ama­ do N. Bautista, newly appointed general manager of the Na­ tional Development Company. The President instructs Secretary R. Nepomuceno of the Department of Public Works and Communications to start construction of the P200,000 permanent grandstand on the Luneta. April 1—The Philippine Government extends de jure re­ cognition to Israel: 27 nations had already granted the new Jewish state de jure recognition and 18 others have granted de facto recognition. The President instructs Secretary of Education P. Lanecauon to direct all farm schools to make full use of their lands for food production. April 2—The President authorizes the National Land Set­ tlement Administration to borrow P500.000 from the Philip­ pine" National Bank to finance principally its rice and corn projects. The loan will bear 5% interest and will mature in a year. Estimated income from current NISA projects is P3,101,400. April 3—The President returns from a two-day inspection trip to Zambales. April 4—A resolution to impeach the President is filed in the House by followers of the deposed Senate President Jose Avelino, The President urges immediate action on the reso­ lution “so as not to allow the people a moment of suspense in their judgment as to my personal and official integrity”. Various responsible officials issue statements denying the truth of the charges brought against him. The National Economic Council is reported to have de­ cided to recommend favorably on the proposal to establish a steel mill and machinery department under the National De­ velopment Company. The mill would have an initial monthly capacity of 1,500 tons and would produce bars and rods, util­ izing scrap for raw material. The machinery department would make use of Japanese reparation machinery to manu­ facture plows, harrows, and other farm implements. The steel mill calls for an initial investment of P6,000,000; the machiDairy products Total 45,824,662 42,425,172 United States 44,075,700 38,970,063 Switzerland . 479,422 1 36,236 Netherlands . 406,020 1,479,044 Australia 33 5,856 1,32 1,750 Denmark 181,226 189,822 New Zealand 180,788 324,426 Canada .... 92,036 14,002 China ......... 60,662 114,780 Italy ........... 6,652 34 Argentina . . 2,552 2,702 Other Countries . 3,748 72,308 9. Paper and manufactures Total 44,714,054 38,887,246 United Stales 35,734,400 33,034,490 Sweden .... 2,154,028 1,238,330 Canada .... 1,721,728 960,192 Hawaii 1,506,382 886,800 Austria .... 753,074 42,940 Spain ......... 690,752 408,968 Norway 617,890 1,171,238 Belgium 306,088 118,230 France 25 3,520 374,170 Italy ............ 176,898 14,934 Other Countries . 799,294 656,954 10. Machinery, machines and parts, except agri­ cultural and electrical . Total 43,170,350 36,422.882 United States 39,910,466 34,512,994 Great Britain 1,323,254 964,356 Canada .... 662,982 43,690 Switzerland . 375,532 89,788 Sweden .... 304,500 199,274 Hawaii .... 279,322 301,856 Australia . . 90,994 62,358 Belgium .... 80,500 14,202 China ......... 38,572 77,336 J»P»n ......... 36,518 100 Other Countries . 67,710 156,928 Other import 438,512,162 383,541,310 Total imports .. 1,136,409,068 1,022,700,608 199 nery department P6,500,000. Action on the request of the Cebu Portland Cement Company to be allowed to purchase P100.000 of shares ir. the Marble Corporation of the Philippines, is left pending. Reported that the Sugar Quota Office and the Bu­ reau of Customs are enforcing the recent decision suspend­ ing the export of scrap metals but export licenses issued on or before March 23 for which royalty has been paid, are being given due course, including unshipped balances. Eulogio B. Rodriguez, Director of the Bureau of Public Libraries, dies of heart ailment. April 5—A delegation of businessmen headed by R. V. del Rosario, president of the Philippine Junior Chamber of Commerce, call on the President to bid him goodbye previous to their departure for the International Chamber of Commerce conference in Brussels; total membership in the Philippine delegation will reach 20. April 6—Secretary of Health A. Villarama reports to the President that Philippine health conditions have greatly im­ proved, the general deathrate having dropped from 15 per 1000 population in January, 1946, to 12 at the end of 1948. The tuberculosis deathrate has dropped from 170.06 per 100,000 to 165.35; malaria from 92.56 to 56.36. April 8—The President affixes his signature to the Mas­ ter Plan of the Capital City Planning Commission. It is ex­ pected that work will start before the rainy season. April 9—Preliminary steps are announced to have been taken for the sale of the Insular Sugar Refining Corporation of the National Development Company to the National Fede­ ration of Sugarcane Planters. The Federation has also en­ tered a bid for the Binalbagan-Isabela Sugar Company, which is 42% government-owned. The President leaves Manila for Baguio to spend Holy Week there. April 11—The President tells the press in Baguio as he enters his second year as Chief Executive that the ground­ work for economic rehabilitation has been laid and that “from now on it will be just a matter of execution.” April 12—The President at a meeting of the Cabinet in Baguio instructs Secretary of Justice S. Padilla in his ca­ pacity as chairman of the board of the Philippine National Bank, to establish as manv branches of the Bank as possible in regions of the country where there are possibilities of econo­ mic expansion, especially in the Koronadal area (Cotabato), Iligan (Lanao), Maasin (Leyte), Ilaean (Isabela), and Aparri (Cagayan). He also instructs Secretary Nepumuceno to sub­ mit a list of irrigation projects already blueprinted to deter­ mine the prioritv construction, stating that the money is avail­ able from the P200,000,000 earmarked for economic develop­ ment by the Central Bank. Secretary of National Defense R. Kangleon is instructed to tighten the Naval Patrol guarding of the coast in connection with the illegal entry of aliens and alleged smuggling in of arms to the Huks. In connection with recently increased Huk raids, Under-Secretary of the Interior M. Roque is instructed to circularize municipal governments in the trouble spots to inform them they may enlist special po­ licemen as temporary members of the local police forces, though the so-called “civilian guards” may not again be called into being as the Government has adopted the policy to em­ ploy only such law enforcement agents as are under the con­ trol of the regular police forces. April 13—The Cabinet decides to allot P10,000,000 imme­ diately to start construction on a number of irrigation pro­ jects including those at Rosales (Pangasinan), San Pablo City, Balanga (Bataan), Calabanga (Camarines Sur), the Santo Tomas river projects (Zambales), the Dumacaa river project (Tayabas and Quezon), Tacloban and Hinunan°ran-Hinundayan (Leyte), Candon-Santa Lucia (Ilocos Sur), Palada Valley (Davao), Himamaylan (Negros Occidental), Mallig Plain (Isa­ bela), Jalaur river (Iloilo), Dingras and San Nicolas (Ilocos Norte), and Palinat ahd Pulangi (Albay). Standing appro­ priation acts authorize P24,000,000 for the purpose. April 13—The Cabinet approves the selling of concrete blocks to government employees at reduced rates by the Peo­ ple’s Housing ahd Homesite Corporation which, following a protest by private block manufacturers, was recently ordered to sell its blocks onlv for government use. A fire in Cebu City does damage estimated at P8,000,000. April 18 — The President announces that the appointment of Maj. Gen. Jonathan Anderson as Chief of the Joint United States Military Advisory Group (JUSMAG) has been accepted by the Philippine Government. General Anderson replaces Maj. Gen. Albert M. Jones who left for the United States last month. April 19 — According to a report of Secretary of Na­ tional Defense R. Kangleon, good progress is being made in building up the country’s defense structure, during the period from April, 1948, to March 31, 1949. Defense plans have been adopted based on both maximum and possibly minimum aid from the United States; the Military Academy at Camp Allen, Baguio, has been rehabilitated, with 187 cadets presently en­ rolled; enrolment in the ROTC training in colleges and uni­ versities has passed 20,000; and 96 officers and 188 enlisted men have taken specialized courses in different United States service schools. The Philippine Veterans Board has approved 10,411 claims for death pension benefits; 1,191 disabled ve­ terans have been granted pensions; and 8,118 applications for educational benefits have been approved. April 20 — The President has instructed the government entities concerned to find means of making immediate pay­ ments to persons who have been defrauded of their army be­ nefits by forgers. The Philippine National Bank has denied responsibility because such payments were made only upon presentation of supporting army papers, but army author­ ities contend that the Bank should assume the loss because it has the responsibility of guarding against forgery. The determination of the legal responsibility has been referred to the Secretary of Justice, but in the mean time steps are being taken to hasten payments to the victims. April 21 — N. Waii'en Waterhouse, head of a special fact-finding mission representing the Canadian company, Alu­ minium Limited of Montreal, which came to the Philippines last month, leaves Manila for home. The mission came at the invitation of the National Power Corporation to study the proposed hydro-electric developments in the country, par­ ticularly those on the Agus river, Mindanao. The produc­ tion of aluminum requires large quantities of electric power and the company is always on the lookout for areas where economic factors and the availability of low-cost power show promise of possible future development. Hydro-electric power in the Philippines would tie in well with large company de­ posits of bauxite in Malaysia where there is insufficient power. April 22 — Announced customs and internal revenue col­ lections for the one-year period from April, 1948, to March, 1949, amounted to P278,131,833.30, or around $67,000,000 more than was collected during the preceding year. The Cabinet approves the immediate establishment of a Philippine Legation in Bangkok, Siam. The Cabinet decides that the remaining explosives (some 33,000 bombs) at Bauan, Batangas, will be dumped into the sea to avoid further explosions. More than P600.000 has been realized from the sale of scrap metal to private contractors on the condition that they demilitarize the material. April 23 — The Council of State approves a number’ of Administration bills, including one authorizing the National Power Corporation to increase its power to contract indebted­ ness from the present P20,000,000 to P175,000,000 and a com­ panion bill authorizing it to contract loans from the Inter­ national Bank for Reconstruction and Development in the amount of P50,000,000; also a bill appropriating P10,000,000 to finance the operation of the Philippine Veterans Board, and another appropriating P6,000.000 for the next elections in November. The Social Security Bill was referred to the La­ bor-Management Board for further study. Brig. Gen. Alberto Ramos, Chief of Constabulary, reports that since the termination of the Amnesty period on August 15, 1948, to March 30, 1948, the. organization took part in 378 major encounters with dissidents, with 23,513 dissidents “either killed, captured, or surrendered”. Constabulary losses “included 25 officers and enlisted men, with 135 wounded in action and 9 missing. He states that the backbone of the Hukbalahap movement has broken and that it "has lost the sympathy and support of the masses”. The Amnesty was “not altogether unsuccessful... as it showed the dissidents in their true colors, offered the government and the people an opportunity to gauge their sincerity toward returning to peaceful life, and gave the government sufficient justification to promulgate a new policy to be pursued in dealing with the problem.” April 25 — The new members of the Oil Commission are sworn in, — Secretary of Justice S. Padilla, Senator Prospero Sanidad, Representative Domingo Paguirigan, and Manager Amado Bautista of the National Development Company. April 25 — The President administers the oath of office to three of the four new members of the Oil Commission,— Secretary of Justice Padilla, Senator P. Sanidad, and Man­ ager Bautista of the NDC. Representative D. Paguirigan was absent from Manila. The othei’ members of the Commis­ sion, which is to conduct a study of the oil industry and to make recommendations for its development, are Senators V. Francisco and T. Cabili, Representatives R. T. Leuterio and S. Moll, and Jose Paez. The National Economic Council rejects a proposal from Lorenzana & Sons for the lease of the Manila Hotel on the grounds that the Hotel is at present one of the chief assets of the Manila Railroad Company. The Council' refers a plan to rehabilitate the gold mining industry to the Central 200 Bank. The plan, prepared by V. A. Brussolo, of A. Soriano & Company, would provide that the Government would have the option to purchase domestic gold at a price calculated to induce a resumption of mine operation; the price would be “appreciably better than the statutory price of $35 U.S. cur­ rency per troy ounce and also higher than the present free market price obtainable by producers.” All payments by the producers to the Government would be made in bullion and all bullion purchased by the Government would be paid for in Philippine currency. The Council decided to give further study to the request of the Metropolitan Water District for a P18,000,000 loan to finance a 5-year plan for the rehabilita­ tion of the sewer system; the District claims that its income in 5 years would suffice to cover the loan. April 26 — The National Economic Council submits to the President a specific proposal for government assistance to the abaca industry which would provide for loans by the Reconstruction Finance Corporation and the Philippine National Bank to be covered by mortgages on the lands of the producers. Experimental stations would be established in Davao and Cotabato under the responsibility of the De­ partment of Agriculture and Natural Resources, and seed­ ling banks and tractor pools would also be established under the Bureau of Plant Industry and the National Development Company. The Director of Lands would take control over the disposition of former Japanese abaca lands now under the control of the National Fiber Corporation and sell them to bona fide occupants without public bidding. Loans of P800 per hectare would be granted to planters in a number of in­ stalments in accordance with the stage of growth of the crops. The Council also recommends to the President the accept­ ance of the offer recently made by the General Electric Com­ pany of the services of one of its experts, Dr. George B. Waterhouse, professor emeritus in metallurgy, Massachusetts Institute of Technology, to act in a consultative capacity in de­ termining the possible industries which might be able to make use of the power generated from the proposed Maria Cristina hydro-electric plant. April 29 — The President in Baguio issues an appeal for the cooperation of all law-abiding citizens in eliminating “the last vestige of lawlessness and savagery in our land,” fol­ lowing the shocking murder yesterday of Mrs. Quezon, her daughter Maria Aurora, her son-in-law, Philip Buencamino III, together with nine others including Mayor P. Bernar­ do of Quezon City, while on their way to Baler, birthplace of the late President, in a machine-gun ambuscade laid by a band of Hukbalahaps. Later in the day the President re­ turns to Manila by plane to attend the funeral services. He issues a proclamation providing for the half-masting of the national flag for 9 days. He also summons army and cons­ tabulary chiefs to a meeting at which he issues fresh orders for the “summary elimination of dissident depredations.” April 30 — Reported that the place where Mrs. Quezon and her party met their deaths, near the border of Nueva Eci.ja and Tayabas provinces, will be converted into a national forest preserve to be known as the Aurora Memorial Park. Banking and Finance By C. V. Grant Sub-Manager, National City Bank of Neiv York COMPARATIVE figures of assets and liabilities of the Central Bank for the first three report­ ing dates follow: ASSETS (In thousands of pesos) As of January 3.11 As of February 28 As of . March 31 International Reserve . Contribution to Mone­ P7T4,969 P648.758 P672/387 tary Fund................ Account to Secure Coin30,000 30,000 30,000 age............................ 113,106 113,306 113,306 469 Loans and Advances . Other Assets............... ’ 19,320 19,411 20,851 P877.395 P811.475 P837.013 LIABILITIES Currency: Notes . . . P621.521 P597.472 P580.377 Coins . . . 73,035 73,322 73,493 Demand Deposits: Pesos ............................ Dollars......................... Securities Stabilization Fund............................ Other Liabilities............ Capital............................ Undivided Profits . . . 169,351 127,139 2,000 1,488 10,000 2,000 1,542 10,000 P877.395 P811,475 127,361 40,072 2,000 1,604 10,000 2,106 P837.013 The deposit liability in U.S. Dollars of the equiv­ alent of P40,072,000 is included on the asset side under International Reserves. Thus the actual Inter­ national Reserves were P16,000,000 less than the pre­ vious month which decrease compared with a drop of P66,000,000 during February. At the end of March the International Reserves totalled 116% of the note issue and covered 82% of total liabilities of the Central Bank. It has been reported that the National Treasury has redeemed Pll,162,566 in legally issued Philippine National Bank circulating notes and has accepted for registration P7,291,012 in notes illegally issued. The Treasury also has accepted for registration P288,313 of circulating notes of the Bank of the Philippine Is­ lands. It is understood that plans for redemption of the latter will be announced later. Merchants report that inventories are still exces­ sive in some lines and importers appear to be follow­ ing a more conservative policy in placing new orders. This situation has resulted in a somewhat lessened demand for dollars during April. The trend of re­ cent months towards tighter money conditions conti­ nues. The rates within which the commercial banks are permitted to operate remain the same: Selling Buying P201.50 P200.50 201.375 200.375 202.00 200.00 U.S. Dollars T.T., over $500.00 .. U.S. Dollars Demand over $500.00 U.S. Dollars T.T. and Demand under $500.00 ............................. The rates given last month as being quoted by Banks for prime business are unchanged at T.T. P201.50 selling and P200.75 buying. American Stock and Commodity Markets By Roy Ewing Sivan, Culbertson & Fritz, Inc. March 28, 1949, to April 28, 1949 "COR about three weeks of the past month the New A York Stock market held firm at around 177.00 in the Industrial Average, but in the last week declined to near the minor lows made about two months ago. The high for this perod was 178.45, recorded on March 30, and the low, 173.24 on April 21. A direct reason given for the weakness was the worsening political situation in the Far East, but the primary factor is the fact that practically all business clues continue to record a negative performance. The news of increased supplies of every kind of goods and commodities continues, even the auto and steel industries reporting the virtual disappearance of premium prices. U.S. Steel’s announcement that first quarter earnings were $5.04 a share as compared to $2.48 last year, caused only a mild rally in the com­ mon shares and this held for but a few days. The in­ troduction of some fourth-round wage demands was an additional bearish factor. Technically, the market moving in narrow range 201 for so long leaves the primary trend obscure. A de­ cline now through the lows of last February would im­ ply that a further market shake-out is to be expected and that in months to come the business recession will continue to spread. Conversely, should the average hold at current levels and begin to plot a bullish pat­ tern upward, the implication would be that further readjustment in the economy is to be mild and has al­ ready been discounted. MOST commodities fluctuated narrowly and re­ mained firm in spite of the Bureau of Agricul­ ture’s estimate of normal to bumper crops in almost everything for 1949. The strength reflected the highly favourable Administration’s Farm Program announced by Secretary of Agriculture Charles Bran­ nan in early April. New York spot cotton is 33.84 as compared to 33.51 a month ago, due to a tight spot condition. May Chicago wheat is 225 against 213-7/8 on May 29. The winter crop is estimated at over1,000,000,000 bushels, second only to the 1947 record. Loans on the 1948 crop fall due on April 30. May Chicago corn is 135-7/8, up from 132 last month. Pro­ ducers have until June 30 to take the loan, and most distressed selling appears passed. The May contract of No. 5 sugar is practically un­ changed from a month ago. at 5.28 bid. Refiners are reported booked two or three months ahead on raw needs but the warm weather generally increases raw purchases. Manila Stock Market By A. C. Hall A. C. Hall & Company March 19 to April 22, 1949 Mining Shares BASE metal issues have weakened in sympathy with the easier trend of non-ferrous metal prices in the United States market, but lead­ ing gold-mining issues have remained steady to firm, particularly Atok-Big Wedge and Benguet Consoli­ dated. As the post-war inflationary boom dissipates itself, and is replaced by a deflationary tendency, we may expect to see a broadening in demand for gold­ mining shares, because producers of the precious metal stand to benefit by reduced costs. As in former recent months, trading has again been very slow. The market has been in a narrow trading area since the middle of March, with the mining-share average fluctuating between a high of 78.10 and a low of 74.67. Price movements of this nature reflect indecision, and, technically are called line-formations. Penetration of either of the above mentioned points, on expanding activity, would pro­ vide a reliable indication as to the direction of the next sizeable market movement. osn Clou 75.49 F .24 Clunt' Off J.58 Off .04 Up .05 Up .007 Off .0002 Up .001 Off .000J Off .0071 Off .018 Off .10 Total Sala 92,000 281,500 19,500 1,150,000 141,000 *140*000 101,000 15,000 129,000 124,000 15,000 91,447 Up .01 Off .028 Up .011 In addition to the foregoing, over-the-counter business during the month included about 10,000 shares Balatoc Mining Company from P2.50 to P2.70 closing at the latter price, and 48,000 shares Benguet Consolidated from P2.95 to P4.10 closing at P3.85, also 30,000 shares Taysan “A” at 9 centavos. Commercial and Industrial There was increased activity in this section dur­ ing the month. San Miguel ex 100% stock dividend was active and fractionally higher. Sugar shares easily absorbed some profit-taking at small price concessions. 1941-49 1941’49 Range Clute Change Total Sales P60.00 Off P 4.00 560 615.00 Off P 5.00 43 674 21 21 2,500 281,500 5,000 33,625 20,049 80 Over-the-counter commercial business "during the month included 200 shares Jai Alai at P9.50 and P7; 1,500 shares Manila Jockey CJlub at P2; 25 shares Pamplona Plantation at P85; and 435 shares Victo­ rias Milling Co. at P150. Credit By W. J. Nichols Treasurer, General Electric (P.I.) Inc. A RATHER interesting case of fraud involving collectors’ receipts has recently been uncovered. It may well serve as a warning to credit exe­ cutives to review their internal accounting routines to make sure that they are adequate and carefully followed. The device employed in this particular embezzle­ ment is known in auditing language as “lapping”. Most collection procedures provide for the collector’s filling out receipts in duplicate whenever payments are received. The originals are given to customers and the duplicates retained for record purposes. By post-dating duplicate copies and covering up shortages from subsequent collections, the employee was able to continuously withhold cash for his own use. The method can only be successful when numerous cash collections are made and record copies are not prompt­ ly audited. The theft in this instance was discovered only after it was noted that receipt numbers were not being used in sequence. This led to examination of record copies and a comparison with originals which disclosed the discrepancy. Bonding companies report an increase since the war in the number of cases of theft or estafa by em­ ployees in positions of trust. While no hard and fast rules can be established which will preclude all pos­ sibilities, we believe there are certain precautions which can be taken as protection against such losses. Collectors’ receipts should be closely accounted for and not made available to unauthorized persons. Some­ times it is a good idea to rotate collectors in their routes so that they do not collect from the same cus­ tomers all the time. Verification of accounts by in­ dependent means is another good precaution; although not always effective. 202 Electric Power Production Manila Electric Company System By R. J. Baker Manila Electric Company .1949 1948 January........................... 33 745 000 27 301 000 K February.......................... 31 110 000 26 021 000 I March............................... 34 776 000 * 26 951 000 L April................................ 32 813 000 ** 26 871 000 0 May.................................. 28 294 000 W June.................................. 29 216 000 A July.................................. 31 143 000 T August.............................. 31 993 000 T September....................... 32 012 000 H October............................ 33 943 000 0 November......................... 32 661 000 U December......................... 35 104 000 R TOTAL..................... 361 510 000 S ’ Partially estimated • Revised April output was lower than March on a daily basis, and the increase of 5,942,000 KWH, or 22% over April, 1948, was a smaller increase than the pre­ vious months. This may indicate that the output is temporarily levelling off at about present figures. Real Estate By C. M. Hoskins C. M. Hoskins & Co., Inc. REAL estate activity in Manila continued strong during April, with sales totalling P6,184,801.00, compared with P2,122,443.10 for January, P2,701,667.64 for February, and P3,362,635.32 for March. The April figure of P6,184,801.00 includes one trans­ action of Pl,350,000.00 the sale of the Myers Building in the Port Area to Jose Soriano. Comparative sales figures for the first four months are: 1946 ..................................... Pll,190,645 1947 ..................................... 29,025,271 1948 ..................................... 16,789,179 1949 ..................................... 14,371,546 Mortgages registered were off from the previous month, P4,256,694.00 as compared with P5,891,250.00 for March. Subdivision operators report that collections con­ tinue satisfactory. Ocean Shipping By F. M. Gispert Secretary, Associated Steamship Lines OFFSHORE shipping during March was excep­ tionally active. Heavy sugar bookings boosted the total exports to 223,640 tons for the month as against 141,396 tons for the same month last year. For the first time since Liberation, space for the U.S. Atlantic Coast was tight and the same situation would be felt during April, but it was expected to ease off during June as the bulk of the sugar crop would be shipped or booked by that time. Exports for the month of March, 1949, as com­ pared for the same period last year, were as follows:— March, 1949 March, 1948 Alcohol...... 10 tons — Beer.......... 25 ” — Buntal fiber ... 10 ” — Cigars....... 10 ” 11 tons Coconut, desiccated . . . 9,550 ” 6,533 . ” Coconut oil ... . 4,178 ” 3,320 ” Concentrates, copper............. 2,114 ” 126 ” Concentrates, gold.................. 175 ” 22 ” Copra.................. 42,150 ” 51,460 ” Copra meal . . . 6,124 ” 4,459 ” Embroideries . . . 129 ” 55 ” Empty cylinders, etc...................... 524 ” 458 ” Fish, salted ... 33 ” 13 tons Fruits, fresh . . 172 ” — Furniture, rattan 814 ” 590 ” Glycerine............ 298 ” 72 ” Gum, copal .... 91 ” 71 ” Gum, elemi ... 14 ” — Hemp................... 49,309 bales 40,088 bales Household goods. 132 tons 109 tons Junk, metal . . . 5,766 ” 9,710 ” Logs..................... 2,339,874 board feet 1,143,761 board feet Lumber............... 4,201,214 ” ” 343,060 ” Molasses............. 2,185 tons 3,887 tons Ores, chrome . . 26,860 ” 11,500 ” Ores, iron .... 18,317 ” — Rattan. 170 ” 177 ” Rope. 376 ” 492 ” Rubber. 129 ” 143 ” Shells. 23 ” 113 ” Skins. 128 ” 101 ” Sugar. 79,367 ” 23,218 ” Tobacco. 620 ” 17 ” Vegetable oil products .... 23 ” — Wines. 30 ” — Transit cargo . . 550 ” 102 ” General merchandise . . 2,743 ” 7,592 ” REAL ESTATE SALES IN MANILA, 1940-1949 Prepared by the Bureau of the Census and Statistics Note: A large percentage of 1945 sales and a diminishing percentage of 1946 sales, re­ present Japanese Occupation transactions not recorded until after liberation. January February March . . April . . May . . June . . July . . August . September October . November December Total . . P17,974,844 1940 P 6,004,145 918,873 1,415,246 883,207 403,866 542,187 1,324,861 1,905,828 1,141,114 993,103 938,416 1,504,004 1941 P 962,970 779,783 1,532,104 988,380 1,129,736 598,431 559,742 1,239,414 815,112 1,182,678 858,235 (?) P10,647,285 1945 P 7,943,605 1,337,830 (?) 213,262 962,008 1,212,780 1,123,565 699,740 1,870,670 2,096,893 2,555,472 2,874,408 P22,890,133 P45,537,914 203 1946 P 4,385,011 2,267,151 2,622,190 1,916,293 3,684,937 3,637,956 4,974,862 4,438,510 4,698,896 5,545,800 3,340,384' 4,025,926 1947 P 6,030,012 7,217,317 7,166,866 8,611,076 4,618,181 3,988,560 4,097,183 5,627,572 7,437,213 6,083,486 4,177,054 3,205,584 P68,260,104 1948 P 3,644,734 3,879,633 4,243,719 5,021,093 3,129,799 8,019,246 5,146,529 6,192,876 4,737,581 5,350,376 3,046,287 5,386,248 P57.798.121 P10,029,723 1949 P3,965,420 2,701,668 3,362,635 3,677,630 Land Transportation (Bus Lines) By L. G. James Vice-President and Manager, A. L. Amnion Transportation Co., Inc. AN analysis of the records of a number of trans­ portation companies, covering operations for the year 1948, indicates the extent to which the ever increasing tax burden affects the operator who conducts his business efficiently and keeps proper books of account, at the same time conscientiously meeting his obligations to the Government by way of tax responsibilities. A summary of the taxes and fees of various categories paid from January, 1948, to De­ cember 31, 1948, by one of the well known companies illustrates the tax problem confronting the industry in general. This particular operator paid: 1. Common carrier tax (2% of gross revenue) ........................................... P 55,000 2. Corporate income tax ....................... 27,000 3. Registration fees ............................. 74,000 4. Supervising fees................... 4,000 5. Tolls — (bridges and barges) .... 125,000 6. Gasoline tax at P.07 per liter....... 190,000 7. Lubricating oil tax at P.04 per liter 1,500 P476,500 In addition, the 50% sales tax on all purchases of equipment and supplies, as a hidden feature of the tax bill, amounted to an additional P40,000. Exclusive of this latter item, an amount in excess of 17 centavos out of every peso of gross revenue went to the Govern­ ment in taxes and fees. The total obligation repre­ sented 32% of the paid-up capital of the corporation and 16 times its’net earnings. There is no field of enterprise in the Philippines where competition is so keen and so unregulated. There is likewise no general classification of business which offers such a relatively high potential as a source of government income. In actual practice, a premium is placed upon the ability of the operator to run his business without maintaining proper records of ac­ counts and to evade his obligations to the Government. In the case of one of the larger land transporta­ tion companies, a corporation with hundreds of stock­ holders and obviously required to maintain its records in accordance with the principles of sound business practice, a force of several Bureau of Internal Revenue auditors spent a number of weeks in making a com­ plete investigation of every transaction appearing in the company’s books for the year 1945-1946 and 1947. This company had met its tax responsibilities in all respects in accordance with its records of accounts. When the investigators were questioned as to why similar investigations were not made in the cases of the multitude of competitors operating within the same territory, the reply was that no investigation was pos­ sible. The other operators either kept no records or they were kept in such a manner that It would be im­ possible to compute tax responsibilities. Thus, the operator who maintains proper records and meets his tax obligations conscientiously is at a great disadvantage. His cost of operation is obviously higher than those of his irresponsible competitors, whose failure to keep records of income and expense results in evasion of tax obligations. The most flagrant evasions are in connection with the Common Carriers’ Tax of 2 % on gross revenue and with the corporate and/or individual income tax, as a result of keeping incomplete or improper records. One authority estimates that there are in excess of 30,000 public utility vehicles in daily operation in the Philip­ pines with an average daily gross revenue of P25 each (including jeepneys and similar small units). It is further estimated that the Government collects less than 30% of the Common Carriers’ Tax on these gross revenues which should amount to a minimum of P15,000 per day or in excess of P5,000,000 per year. Mining By Chas. A. Mitke Consulting Mining Engineer MARCH PRODUCTION at the Mines. Benguet-Balatoc . P619,150.00 Atok-Big Wedge . 400,146.00 Mindanao Mother Lode................. 256,954.00 Surigao Consoli­ dated ................P196,790.00 Lepanto............... 592,100.00 Taysan Gold . . . 52,519.00 BUILDING CONSTRUCTION IN MANILA: 1936 TO 1949 Compiled by the Bureau of the Census and Statistics from data supplied by the City Engineer’s Office. MONTH 1 1936 1 1937 I 1938 1939 1940 I 1941 I 1945 I 1946 1 1947 1948 1 1949 | (Value) | (Value) | (Value) (Value) (Value) 1 (Value) | (Value) | (Value) | (Value) (Value) (Value) January . P 540,030 P 720,110 426,230 F* 694,180 P 463,430 Pl,124,550 P 891,140 P — P 1,662,245 P 3,645,970 P 6,571,660 P4,807,320 February . 479,810 434,930 1,063,050 1,025,920 467,790 _ 2,509,170 3,270,150 6,827,005 7,286,630 March . . 411,680 396,890 1,300,650 662,840 671,120 641,040 — 3,040,010 3,398,910 7,498,560 8,100,700 April . . 735,2^0 659,680 770,130 1,029,310 962,420 408,640 462,020 3,125,180 8,295,640 7,370,292 5,496,345 May . . . 400,220 670,350 1,063,570 1,139,560 740,510 335,210 1,496,700 3,968,460 3,904,450 5,564,870 8,570,410 June . . . 827,130 459,360 754,180 809,670 542,730 418,700 2,444,070 5,898,580 10,217,840 July . . . 302,340 691,190 827,660 756,810 627,790 495,910 622,050 357,680 609,920 1,741,320 3,062,640 4,889,640 9,875,435 7,771,487 August . . 368,260 661,860 306,680 1,418,360 7,428,260 7,568,950 September 393,100 777,690 684,590 554,570 590,380 530,830 1,015,250 7,326,570 7,770,310 7,095,860 October . . 663,120 460,720 971,780 718,190 645,310 738,700 699,040 639,030 4,630,550 6,747,240 5,368,800 November 320,890 972,310 461,580 485,100 315,930 1,364,310 4.373,390 7,088,283 3,424,125 December . 648,820 849,160 503,230 1,105,910 333,490 67,553 1,605,090 5,034,600 4,924,320 4,507,580 Total . P6,170,750 P7,530,690 P9,280,560 P9,053,250 P8,234,460 P5,692,273 P12,186,150 P47,526,905 P73,907,248 P82,792,56.9 P25,690,995 Annual Average P514.229 P627.557 P773.380 P754.438 P686.205 P474,356 |P1,O15,513 P3,960,575 P6,158,937 P6,899,381 P 7,162,620 204 Acoje Mining Consolidated Mines (2 weeks) (tons chrome) . 18,360 (tons chrome) . 3,000 SPEAKERS for the Philippines claim they are an­ xious to enlist foreign capital, particularly Ame­ rican capital, in the development and up-build­ ing of the country. At the present moment, a group of young Filipino business men are touring the United States, telling capital it will be welcome if it comes to the Philippnes. Looking at the reverse side of the medal, we find small organized minorities here at home doing all they can to hamper, or make it difficult, for foreign cap­ ital to invest in this country. Mining, was one of the major industries of the Philippines before the war. It ranked second to sugar, and promised, in 1942, had there been no war, to surpass it. Now everything has been done to’ put the sugar business back on its feet and spokesmen for the industry state it will achieve normalcy this year. Little or nothing has been done for mining. The mines were as badly damaged as the sugar -centrals, but there has been no government assistance, and, to date, but very small war-damage payments. Last year, a Milling Engineer’s Licensing Bill was introduced in Congress and passed. It was ve­ toed by the President, and re-introduced and passed in the Special Session, and again vetoed by the Pres­ ident. This bill contained a clause which legal ex­ perts stated would have prohibited American min­ ing engineers from practising their profession in the Philippines. The result of this legislation, even though finally vetoed, was that one large American corporation which had taken options on mining pro­ perty in the Visayan Islands, and planned, if preli­ minary work proved satisfactory, to spend approxi­ mately P50,000,000 in mine development, plants, etc., threw up its option and pulled out; while two other corporations, almost as large, which had, jointly, maintained an examining engineer in the Philippines for nearly a year, recalled their man, and decided to invest elsewhere. This same bill has been re-introduced in the 1949 Congress a third time. The objectionable clause re­ ferred to was modified, but amendments have been made to the bill which render it equally objectionable, not only to American interests, but to the entire min­ ing community in the country — Filipinos and for­ eigners alike. Under this particular bill (H.B. 2338) as amend­ ed, a Board, composed of three Filipino engineers would be appointed by the Secretary of Public Works and Communications, which would have absolute con­ trol over the mining industry. If this measure be­ comes a law, the Board would not enforce mining legislation previously enacted by Congress, but would make its own rules and regulations, (which would have the force of law) ; inspect mines and mining properties; examine mining companies’ books (if it deems necessary) ; “determine the complement of mining engineers and personnel needed in said plants and works,” and “whenever necessary, recommend to the Secretary of Public Works and Communications, the adoption of such measures as may be deemed proper for the maintenance of the ethics and technic­ al standards in the practice of mining engineering in the Philippines for the public well-being and safe­ guarding of life, health, and property.” GOLD AND SILVER PRODUCTION FOR 1949 By the Bureau of Mines Names JANUARY FEBRUARY Quantity in Troy Ounces Value in Pesos Quantity in Troy Ounces Value in Pesos Atok-Big Wedge Au- 5,178.070 Ag- 2,937.775 P 362,464.89 4,171.63 Au- 4,838.969 Ag- 2,890.329 T 338.727.83 4,104.27 Balatoc Au- 4,262.000 Ag- 2,531.000 298,340.00 3,543.40 Au- 4,166.000 Ag- 2,503.000 291,620.00 3,504.20 Benguet Cons. Au- 3.967.000 Ag- 2.355.000 277,690.00 3,297.00 Au- 3,495.000 Ag - 2,099.000 244,650.00 2,938.60 Mindanao Mother Lode Au- 2,883.980 Ag- 4,429.000 196.341.36 5,890.57 Au- 2,978.130 Ag- 3,960.000 202,751.00 5,266.80 Surigao Cons. Au - 1,750.000 Ag- 2,100.000 140,605.00 3,456.00 Au- 2,060.000 Ag- 2,900.000 144,200.00 4,176.00 Surigao Placer Au - 319.803 Ag - 98.992 22,386.21 148.49 Au - 180.000 Ag - 50.000 12,600.00 72.00 Taysan Mining Au - 913.944 Ag- 2.670.500 63,976.08 3.372.90 Au - 791.358 Ag - 1,655.460 ■ 66,395.06 2,483.19 Tnmbis Gold Au - 176.000 Ag - None 14.000.00 None Au - 196.000 Ag- None 15.800.00 None Totals Au - 19.450.797 Ag - 17,422.265 Pl,375,803.54 23,879.99 Au - 18,705.457 Ag - 16,057.789 Pl,305.743.98 22,545.06 Metals and Ores Other than Gold and Silver. 1949 Names Remarks January February Quantity L. Tons Value in Quantity Value in Pesos Acoje Metallurgical 5,0220.0 1,800.0 P 234,444.00 Luzon Stevedoring Chromite Manganese WM00 NonV Misamis Chromite Metallurgical Chromite 1,100.0 57,200.00 None None Consolidated Refractory 460,000.00 25,000.0 602,000.00 Lepanto Cons. Chromite Copper 23 000 0 L757’5 553,500.00 L877^0 517,400.00 Cia Minera de Manganese 6.880.00 123 0 4,920.00 Samar Mining 172 0 None 1 None 22,400.00 None 22,400.00 Palawan Mang. British-Am. Eng. Manganese Manganese 1,200^0 48,000.00 204.204.00 1.2C0.0 43,000.00 Luzon Steve. Metallurgical Chromite None None 1,150.0 14,250.00 Totals - - Pl,543,200.00 Pl ,343.414.00 This would create a virtual dictatorship over one of our leading industries. For these unwelcome services, the mines would pay whatever amount the Board decides, as “with the advice of the Commissioner of Civil Service and the approval of the Secretary of Public Works and Com­ munications, [the Board may] adopt rules, regulations and code of ethics as may be necessary to carry out the provisions of the Act, including inspection fees to be charged from the mines, metallurgical plants, etc. .. from which to defray ex­ penses incurred by the Board in connection therewith and for other purposes.” “In addition to the above compensation... each member performing such inspection and investigation shall... receive a professional mining fee of fifty pesos per day, during the investigation and examination, which shall be drawn and dis­ bursed from the inspection fees charged of mining, metallur­ gical works... as authorized in this Act.” Penal provisions for non-compliance accompany the bill. From this it will be seen that the entire cost of the proposed Board, including the P50 per day in­ spection fee, would be paid by the mines. The mining companies are already suffering from conditions imposed by the Court of Industrial 205 206 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1949 Relations, the officials of which are apparently un­ familiar with mining, as, among other restrictions imposed, 20% additional pay has been ordered for employees on night shifts, because “the tunnels are dark.. . and the laborer is hampered by his boots, his heavy clothing, and his indispensable lamp.” Any­ one familiar with mining knows that the tunnels and drifts are just as dark in the daytime as at night, and the carbide lamp is just as necessary on the day shift as on the night shift, as are also the boots. The mines are still struggling for existence. Only 5 gold mines out of the pre-war 35 are in ope­ ration, and less than half the chrome and manganese properties are shipping, yet they are burdened with heavy demands and restrictive legislation before they get well started. It seems poor business policy to kill the goose that once laid the golden egg, and which, if treated right, would do so again. Lumber By E. C. Von Kauffmann President, Philippine Lumber Producers’ Association LUMBER exporters have requested the Associated Steamship Lines to reduce the rate of freight from Philippines to the United States by $10 per 1000 board feet, in order to help them offset the recent drop in prices and the stiff Central American and South African competition. On the other hand the exporters are willing to share in the cost of an advertising campaign in the United States which the Philippine Mahogany im­ porters there will undertake. The exporters believe that the Philippine Government should also contri­ bute to the advertising fund as this -form of help would increase production and export by further establishing the name of Philippine Mahogany in the United States. The local market continues unchanged as fol­ lows : Red Lauan, rough, delivered buyer’s yard — P165. Apitong ” ” ” ” — 145. White Lauan ” ” ” ” — 140. Copra and Coconut Oil By Manuel Igual General Manager, El Dorado Trading Company, Inc. and Kenneth B. Day President, Philippine Refining Company, Inc. March 16, 1949 to April 15, 1949 OUR last report left copra and coconut oil in the doldrums with little to support them in world markets, but in a particularly vulnerable posi­ tion to pressure either from without or within. The story of the period under review shows little change in this situation, with an initial continuance of the downward drift of the market, followed by a mild re­ covery, and ending just about where it began. The period opened with buyers at $175 c.i.f. and f.o.b. and sellers’ ideas about $5 higher. On very sparse trading, and influenced by general market .weakness in domestic fats and oils, prices gradually ENGINEERS CONTRACTORS MANUFACTURERS SPECIALIZING IN THE FABRICA­ TION AND ERECTION OF BRIDGES, TANKS AND BUILDINGS ----------------------^Operating:-----------------------MACHINE SHOPS FOR MANUFACTURING AND REPAIRS FOUNDRY FOR CAST IRON, BRASS AND BRONZE STRUCTURAL STEEL SHOPS STEEL PLATE SHOPS MARINE REPAIR SHOPS • WOOD PRESERVING PLANT FOR 48 YEARS THE GREATEST NAME IN ENGINEERING & CONSTRUCTION Atlantic, Gulf & Pacific Company of Manila ENGINEERING DIVISION Barrio Punta, Santa Ana, Manila Tels. 6-75-31 — 6-75-32 May, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 207 receded until the end of March by which time copra sold as low as $170 c.i.f. and $160 f.o.b. Neither sellers nor buyers were very active however, sellers because production was still light, and buyers because there were few ECA dollars for European purchases and because American oil buyers still considered copra heavily overpriced. The best interest was on the part of speculators covering in previous sales, mostly at a reasonable profit. Meanwhile cottonseed oil dropped to 10i/2 cents, soyabean to lOi/g, and tallow finally broke through 5 cents, lower pre-war levels. This decline came in spite of quite heavy exports from the United States, and showed the true weakness of the situation, a weakness which European critics were inclined to consider somewhat overdone. After the 1st of April, however, competing oils and fats (particularly tallow) commenced to im­ prove, and copra became in demand with but small stocks available. A short-lived squeeze consequently developed which drove copra up to $195 c.i.f. and gave sellers hopes of seeing $200 copra again. After about ten days of this situation, the pressure was again off, copra broke sharply, and at the end of the period buyers were once more down to $175 both c.i.f. and f.o.b. and sellers were beginning to reconcile themselves to eventual trading on this or a lower basis. European buyers were conspicuous by their absence during the first half of April, both because of their lack of dollars and because they were sub­ stantially filling their needs from sterling areas. Thus the main support against the bearish tendency in American markets was wiped out. Trading throughout the period was anything but lively, and volume relatively small. A/TEANWHILE, coconut oil prices, as was to be expected, followed closely the pattern of the copra market. Commencing with sellers offering imme­ diate oil at 15 cents f.o.b.P.C. shading downward for futures, prices dropped by the end of March to as low as 121/2 cents for prompt and 12*4 for May. They recovered mildly in April and by the 15th were back to 14 cents. Bulk oil to the East Coast was in but slight demand, buyers ideas ranging from 13 cents c.i.f.N.Y. up and sellers from 15 cents down. Some few parcels were sold between 14 cents and 15 cents, but the volume was small and buyers in general con­ tinued to purchase on a hand-to-mouth basis for ab­ solute minimum requirements only. T OCAL copra prices, particularly in Manila where arrivals continued light, were above world levels, but did drop and rise in consonance with export prices. Thus we saw resecada prices per 100 kilos dropping from a high of P37 to a low of P32, only to recover to P36 and then decline to P33 at the close. This is the shortest season of the year in Manila, and available supplies were at a minimum. Cebu markets were somewhat lower, but were more influenced by temporary export shortages. Preliminary figures covering copra exports for March showed 42,150 tons as against 38,655 tons in February and 52,838 tons in March, 1948. These shipments were broken down as follows: Pacific Coast ........................................ 15,761 Gulf Ports .............................................. 4,929 Canada ................................................... 450 Europe .................................................... 20,198 consider offset printing FOR MORE SPEED MORE VOLUME MORE VERSATILITY 208 _____ AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1949 South America ..................................... 100 South Africa ......................................... 712 42,150 tons Oil exports for the same month amounted to 4,178 tons, consigned as follows: Atlantic Coast ...................................... 3,020 Europe (chiefly Germany) ............... 1,158 4,178 tons Some little improvement in exports is to be ex­ pected in April. Copra cake and meal markets continued their de­ cline of the previous month. European quotations were nominally down to $35 to $37 per long ton f.o.b., and meal on the Coast sold down to P53 per short ton c.&f., a better equivalent than the Europ­ ean market offered. Trading was light, but fair quantities were shipped unsold to the Coast. The period ended with copra and oil stagnant and with all signs pointing to lower prices in the future. It was hard to discover any promise of real strength anywhere, this in spite of the feeling in Europe that American oils and fats are rapidly be­ coming underpriced. Still without dollars to pur­ chase, and with constant direction from Washington, European buyers cannot do very much, and are more and more turning to cheaper American fats and to sterling areas for their needs, and this condition is likely to continue through the quarter. One fact is becoming apparent. Coconut oil, be­ cause of its particular lauric acid value, has broken away from its pre-war close relationship with tallow and the prices of the two are not comparable. The trouble with this is that, with the price spread, buy­ ers naturally hold their coconut oil requirements to a minimum. The copra and oil industries in the Phil­ ippines cannot really stabilize or prosper until de­ mand is constant and ample to look after maximum production at reasonable prices. Not until dollars are considerably more plentiful in Europe and a bet­ ter relationship between the European and American price structures exist; and particularly not until the price differential between tallow and coconut oil nar­ rows, can we look for substantially better and more stable conditions. When this may come about is any­ body’s guess. But as the season of heavier copra production draws nearer, the problem becomes in­ creasingly acute. The next two or three months may well indicate in what direction the answer may lie. Desiccated Coconut By Howard R. Hick President and General Mctoiager, Peter Paul Philippine Corporation THIS report covers the period from March 15 to April 15. During this period copra prices re­ mained steady, fluctuating within narrow limits and following world market prices more close­ ly than at any other time since the war. The last two months have been a test period for the copra market. Prior to this time competitive fats and oils prices were much under copra and coconut oil, this creating a false market. ENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS Gen. & Sales Office 174 M. de Comillas Manila Tel. 3-26-20 ★ ★ ★ Operating: MACHINE SHOPS • STEEL PLATE SHOPS STRUCTURAL STEEL SHOPS • WELDING SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • MARINE RAILWAY Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 May, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 209 This unstable condition terminated in January and now despite sellers’ resistance and their attempts on several occasions to take advantage of local condi­ tions, copra prices (seller’s basis) reflect world fac­ tors, and unless unforeseen circumstances present themselves, the copra market will follow a world pat­ tern and remain near present levels. In consonance with these developments raw coconut prices have fol­ lowed the copra pattern. During the period the desiccated coconut prod­ ucts factories have curtailed operations, with the in­ dustry operating at about 80% capacity due to oversupply in the United States. Over-production at present and general business conditions in the United States indicate a slight reduction in production for the remainder of the year. The shipping statistics for the month of March are as follows: Franklin Baker Co................ 4,371,600 lbs. Blue Bar Coconut Co............ 1,698,490 ” Peter Paul Philippine Corp.......... 3,975,300 ” Red V Coconut Products, Ltd........ 1,492,100 - ” Sun-Ripe Coconut Products, Inc. . . 1,026,000 ” Standard Coconut Products .......... 30,000 ” Isabelo Hilarion ............................... 0 ” Cooperative Coconut Products .... 100,000 ” Tabacalera ........................................ 500,000 ” Luzon Desiccated Coconut Corp. .. 340,570 ” TOTAL ................. 13,534,060 lbs. 1 REGRET that the shipping statistics for the month of Feb­ ruary in the April issue of this Journal were in error. The figures submitted were the cummulative figures for January and February which were inadvertently placed in my report by my secretary. The correct figures for the month of February are as follows: Frankling Baker Co...................................................................... 2,795,100 lbs. Blue Bar Coconut Co..................................................... 810,730 ” Peter Paul Philippine Corp....................................................... 2,133,500 ” Red V Coconut Products ...................................................... 1,072,400 ” Sun Ripe Coconut Products .................................................. 551,000 ” Standard Coconut Corp................................................................ 272,000 ” Isabelo Hilario .............................................................................. 0 ” Cooperative Coconut Products .................................................. 0 ” Tabacalera ....................................................................................... 100,000 ’’ Luzon Desiccated Coconut Corp............................................... 188,800 ” TOTAL .................................................... 7,923,530 lbs. I regret very much having made this error and call it to your attention so that persons using this information will be informed of this. — H. R. H. Sugar By S. Jamieson Alternate Secretary-Treasurer, Philippine Sugar Association THIS review covers the period from March 28 to April 29, 1949. New York Market. The period opened with small sales of Puerto Rican and Philippine sugar at 5.80c* to operators. This brought out heavy offerings in the same price from all quarters, but as refiners showed no interest in sup­ porting the market, it developed an easier tone. As the result, refiners were later able to buy fairly large quantities at 5.70c for prompt arrival and prompt ship­ ment. Second-hand holders of Puerto Rican and Phil­ ippine afloats became uneasy over their holdings, and, 210 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1949 faced with refiners seemingly well supplied with raws for their current needs, had to sell at a sacrifice, some sales being made at as low as 5.55<*. First-hand sell­ ers practically withdrew from the market during this phase, and when it passed, were able to dispose of large quantities at from 5.70<* to 5.75tf. At the close, there are further sellers at 5.75<? for May/June ar­ rival and at 5.80<* for later positions, with buyers in­ dicating 5.75< for the later positions. We give below a list of the Philippine sales reported during the pe­ riod: March 28— 7,000 tons May/June 5.80c* 30— 2,000 ” afloat (resale) 5.70< 31 — 13,000 ” ” ” 5.65c1 April 1 — 2,000 ” ” ” 5.55c* 8— 2,000 ” June 5.75c! 25— 5,500 ” April/May 5.70c* 26— 5,500 ” May/June 5.75c* 28— 1,000 ” May/June 5.75c* 2,000 ” afloat (resale) 5.72c* 40,000 tons It will be noted that about half the quantity repre­ sents resales, — that is, sales made by second-hand holders. Quotations on the New York sugar exchange for the period March 23 to April 23, 1949, under con­ tracts Nos. 4 and 5 were as follows: Total ................................................... 50,100 tons Contract No. 4 (World Market) Close Sales High Loio May . . . 4.22 4.05 4.06 16,100 July . . . 4.19 4.05 4.05 26,100 September . 4.08 3.95 3.92 4,050 March . . . 3.45 3.32 3.30 3,600 May .... 3.45 3.45 3.31 100 July .... 3.45 3.40 3.31 150 Contract No. .! May . . . 5.36 5.25 5.25 56,300 tons July . . . 5.38 5.27 5.27 51,650 ” September . 5.36 5.26 5.26 50,950 ” November . 5.27 ........ ” December . 5.30 5.17 5.17 350 ” March . . . 4.96 4.88 4.88 1,200 ” May . . . 4.89 4.88 4.87 300 ” July .. . . 4.89 4.89 4.88 Total .... 161,050 tons Local Market, (a) Export Sugar. The period opened with buyers generally paying P13.40 per picul ex mill warehouse. Pending the recovery of the New York market from the pressure of distressed parcels, exporters were not keen buyers and reduced their prices, at one time quoting nominally P13 per picul. However, as the New York market recovered, they again became active buyers for the rather limited quantities available, and the closing quotation is P13.40 per picul. (b) Domestic Sugar. The market was firm and prices advanced. At the close, there are buyers at P17 to P18 per picul for centrifugal sugar and P18.50 to P19.50 for washed sugar, ex mill warehouse. General. The distribution of sugar in the United States for the first quarter of 1949 was 1,691,000 short tons, against 1,290,663 short tons in 1948. The Puerto Rican crop is estimated at 1,240,000 short tons, indicating a surplus of 150,000 short tons, after allowing for their United States quota alloca­ tion, local consumption, and a normal carry-over. The revised estimate of the 1948-49 Philippine crop is 9,825,025 piculs or 685,012 short tons, a re­ duction of 38,337 short tons from the previous esti­ mate. After allowing for domestic requirements, this would indicate that there will be about 500,000 short •tons available for export. MAXIMUM * ENGINE LIFE AT THE SIGN OF Mobilgas STANDARD—VACUUM OIL COMPANY PHILIPPINES FOP VOUP CAP tuitfL Mobiloil May, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 211 Manila Hemp By H. Robertson Vice President and Assistant General Manager, Macleod and Company of Philippines THIS review covers the period from March 16 to April 15, 1949. Throughout this period, the market has remained very quiet and price changes have been small. We are still confronted with the unusual feature of seeing the better Davao grades selling for a cheaper price than the corre­ sponding non-Davao grades. Business to the United States has been limited and commercial buyers have operated with the great­ est caution. Further softness in commodities in gen­ eral is probably responsible for this attitude of con­ sumers who are most anxious to carry the smallest possible inventories to minimize inventory losses. Both the Stockpile and the U.S. Navy have bought during the period. SCAP bought less than usual during the past four weeks. It appears that SCAP is most dissatis­ fied with the weights and quality of deliveries from certain Philippine shippers and contemplates buying on different terms from July onward. There has been some demand from Europe, although generally CONGENIAL CLASSICS A century of pioneering in the Art of Brewing and the modern Science of Blending has resulted in this great beer we so proudly distribute — Pabst Blue Ribbon. MODELS AVAILABLE 14-in oh Tabic Model, with high or low stand: H21.000 (Tax included) 23-inch model with high or low stand: P335.95 (Tax included) 35-inch model wit P587.56 (Tax included) Blue Ribbon Sole Distributors: F. E. ZUELLIG, INC. 55 ROSARIO ST., MANILA TEL. 2-95-43 Hear MUSICANA - DZRH—SUNDAY, 9 P.M. speaking its buying does not make it an important factor in the market. During March, however, ship­ ments to the Continent of Europe amounted to 14,625 bales out of total shipments of 52,836 bales. Local provincial prices closed the period frac­ tionally higher than a month ago. As prices in term­ inal markets closed fractionally lower, the local trend may be attributed to technical reasons. Production for the first quarter in 1949 ran slightly higher than for the last quarter of 1948, and there is some reason to believe that Davao production will show a slight improvement for the remainder of the year. The following figures covering local provincial values and c.i.f. New York prices illustrate the price changes over the period: ' ' icuUAr FBESH’ND-AERE CIRCU­ LATORS—adequate, fullpowered, scientifically de­ signed to move air mas­ ses—provides proper air circulation without drafts . . . cools your home for comtable living . keeps your co pleasant 136 212 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1949 Per Picul Basis Loose Davao I........... P63.00— Up 1’0.50 per picul from March 15. Davao JI . . . 61.50—Up 0.50 ” ” ” ” ” Davao G . . . . 55.00—Unchanged Non-Davao I . 65.00—Up P0.50 ” ” ” ” ” Non-Davao G . 47.50—Up 0.50 ” ” ” ” ” Non-Davao K . 28.00—Unchanged ” ” ” ” ” New York quotations on April 15: Davao I . . . . Davao JI . . . Davao G . . . . Non-Davao I .;. Non-Davao G . Non-Davao K . 28'2',‘—Unchanged from March 15. 28 —Down ’kc ” ” ” 25 >.{ —Down >2 28:’i —Down U ” ” ” 22 — Down 15 —Unchanged ” ” ” Production for March, 1949, was 53,859 bales, — an increase of 8,018 bales from February, 1949. Non-Davao balings totaled 33,768, — up 3,190 bales from February. Davao balings were 20,091 bales, — up 4,828 bales from February. Exports ' for You’ll sense something differ­ ent when your fingers touch the highly responsive keys. It’s Rhythm Touch... to make your type­ writing easier. . Your fingers will find comforting ease in the light­ ning key response. You’ll note better-balanced finger action . . . the free-and-easy rhythm of Underwood's finest typewriter... the popular choice of secretaries and executives. With Rhythm Touch . . . plus other new refine­ ments . . . you get all the time-tried famous Under­ wood features . . . they make typing easier. See this new Underwood Standard Typewriter...with Rhythm Touch... NOW! SMITH. BELUCO..LTD. TRADE AND COMMERCE BLDG .MANILA March totaled 52,836 bales. Production for the first quarter of 1949 was 146,497 bales, while shipments for the same period totaled 142,270 bales. Tobacco By the Conde de Churruca President, Manila Tobacco Association THE crop of Western Luzon (Pangasinan, Union, Ilocos) has practically all been harvested and is substantially bigger than last year. The quality of the tobacco is good, as the rains came at the right time. We estimate a production of 35,000 quintals in Pangasinan, 45,000 in La Union, and 6,000 in Ilocos. Besides there are about 23,000 quintals of Batec Tobacco which is sold by the leaf in the native markets. Buying will start around the middle of this month (May), and prices will probably be lower than last year. If they -are low enough, it will be the first step toward the rehabilitation of the industry, as exports will increase and the cost of production of the local factories will be lower. The Cagayan Valley crop suffered very much be­ cause of lack of rain, and some regions lost more than 60 r/o of the tobacco. In spite of that, however, there will be no less than from 140,000 to 150,000 quintals, which will easily cover the needs of the local market, and leave enough to increase the exports provided for­ eign countries have the necessary dollars to buy. Pro­ bably buying will not start in these provinces until August or even later, and the prices will be influenced by those paid in Union and Pangasinan. BACHRACH MOTOR CO., INC. PORT AREA, MANILA ★ NASH-ENGLISH AUSTIN AUTOMOBILES ★ WHITE-FEDERAL-NASH TRUCKS ----------------------OPERATING---------------------RURAL TRANSIT PASSENGER—FREIGHT SERVICE BETWEEN MANILA—APARRI AND BMC TAXI CABS May, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 213 Automobiles and Trucks By C. Harold Helling General Motors Corporation THE United States automobile manufacturers pro­ produced during the first 2% months of 1949 1,073,206 cars and trucks, of which 810,390 were passenger cars and 262,816 were trucks. This exceeds by 55,825 the number of units produced dur­ ing the same period of 1948. The plants hope to achieve schedules which will result in the production of 414,000 cars and 112,700 trucks during the month of March, for a post-war high total of 526,700 units. The industry’s present post-war record was made in March, 1948. With these record-breaking production schedules, the auto­ mobile manufacturers are catching up with the pub­ lic demand foi' new cars, which has hit the black­ market and used-car dealers very hard. Prices of used cars have been reduced more than 10% on the overall average in the last two months. THE Manila Chapter of the Army Transportation Association and all the automobile distributors in the Philippines are planning an automobile show at the Fiesta Pavilion, Manila Hotel, May 23, 24 and 25. The show as planned will give the public an op­ portunity to inspect all the different makes and mo­ dels (post-war designs) of the various manufactur­ ers. In addition to the automobile display, the Army Transportation Association, Manila Chapter, is plan­ ning to include various pieces of army equipment which should be of great interest to the public. The Army Transportation Association’s main function in sponsoring shows of this type is to promote and effect cooperation between the various segments of transportation, including, rail, water, highway, air, warehousing, packaging, and others. It is the aim of the Army Transportation Asso­ ciation to assist in the coordination of all modes of transportation in the Philippines; to bring to the at­ tention of the people the necessity for efficient trans­ portation; and through meetings, conferences, and publications, endeavor to achieve this goal. All the automobile distributors in the Philip­ pines are giving 100% support to make the show a big success. Food Products By C. G. Herdman Director, Trading Division Marsman & Company, Inc. THERE has been no improvement generally in local conditions as far as food products and kindred lines are concerned during the past month, with the exception that overstocks in flour and canned milk have disappeared to a great extent and importers have again been placing orders for shipments of such merchandise in fair volume. The market continues to be materially overstocked on all other lines of imported foodstuffs. Retailers all complain of very limited sales. There is always a big drop in consumption of import­ ed foodstuffs during the present season, but their reNOW/ We have Ansco Superpan Press... THE FAST DAY AND NIGHT FILM This film is fast... fast enough to take pictures indoors at night with flood or flash lights. It’s easy to use, surer, more dependable... gives you beautiful prints with crisp, clear detail. Our professionals specialize in quick, ex­ pert photofinishing service. Bring your exposed films to us for developing and printing. BOTICA BOIE, Inc. Photo Department On the Escolta, Manila CEBU • ILOILO • LEGASPI • DAVAO THE COLLINS COMPANY Established 1826. Incorporated 1934. COLLINSVILLE, CONNECTICUT Commonwealth Axes Dayton Pattern also Double Bit Patterns for swamping'and falling The Collins name on any axe is your guarantee of high quality Obtainable in all the leading Hardware stores everywhere Exclusive Agents CHAM SAMCO * SONS, INC. P.O. Box 928. Manila 300-308 Sto. Cristo, Manila Phone: 2-81-72 214 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1949 HUME PIPE AND ASBESTOS COMPANY Notice to Builders, Architects, Contractors. Take advantage of this offer of special sizes: — "Elephant Brand*9 — Asbestos-Cement Sheets, Plain per square foot per square foot 14" ! 3 16” ! 3/16” j 316 7' x 4' | 8' x 3' 6' x 45" 3' x 3' 6' x 4' 8' x 45" 1 5' x 4' | 2' x 3' 5' x 4' i 7' x 4' 1 4' x 4' j 2' x ■ 2' x 2' 1' 4' x 4' ! 7' x 45" 3' x 4' | 6" x 2' 3' x 3' ! 6' x 4' | 2' x 4' | 12" x 14' P0.20 P0.15 Cash, F.O.B. factory Mandaluyong Reduce building cost! THEO. H. DAVIES & CO., FAR EAST, LTD. AYALA BLDG., MANILA TEL. 4-79-41 CONNELL BROS. COMPANY anila • Cebu • Iloilo • Davao Welch’s port indicate that the falling off in retail sales is even greater than usual. This is undoubtedly in­ duced by decreased prices obtained for Philippine products and the big drop in the export of these products. Textiles By James Traynor CONDITIONS in the local textile market have shown no appreciable change since the last re­ port. Importers generally are finding collec­ tions slow and sales are being made from a highly unsatisfactory basis. Inventories stayed approximate­ ly even due to arrivals during the month of April which about equalled sales. During April few or no new orders were placed in the United States. Due to the fact that pending orders now are about completed, importers for the first time in three months feel somewhat optimistic and it is expected that price levels will improve and come into line with replacements. Some dealers have shown interest in making new commitments on a se­ lective basis and within the next four to eight weeks, there is the probability that buying will become gene­ ral. In conversations with some of the larger import­ ers, there is an indication that the over-buying which took place last December and January will not oc­ cur again. Importers feel that from now on greater care will have to be taken in order to avoid the de­ pressed conditions such as have been seen during the past several months which were largely the result of over-buying. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso & Janda IN Case No. L-2179 (April 19, 1949) the Supreme Court published a decision on grounds for dis­ charge of an employee and this decision contains the following statement of principle: “It is well settled that an employer or principal may dis­ charge or dismiss his employee or agent for just cause or for malfeasance or misfeasance in the performance of his duties. “When the law does not, directly or inferentially, define the kind of misfeasance or malfeasance for which an employee or laborer may be dismissed or discharged, but the law leaves it to the court to determine whether or not an act or omis­ sion on the part of the employee may be considered as a just cause for his dismissal in view of the facts and circumstances of each case, the question for the Court of Industrial Rela­ tions to determine is one of fact. It is a question of fact be­ cause there is no law or rule which serves as guide to the Court in deciding it, and the Court of Industrial Relations may decide it in a way or another without violating any law, but it may gravely abuse its discretion if its decision is arbitrary or whimsical, that is, contrary to reason, logic or equity. The Court’s decision in such case is final and can not be appealed to this Supreme Court by certiorari, be­ cause only questions of law may be raised in the appeal or petition for certiorari according to Sec. 2, Rule 44. And if the Court decides the question of fact with grave abuse of discretion, a special civil action of certiorari filed with the Supreme Court is the proper remedy. “But where the law provides or defines what acts or omission, misfeasance or malfeasance, constitute a just cause 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 215 for which an employee or agent may be discharged by his employer or principal, and those acts or omissions are found by the court to have been established or proven, the question whether or not the former has been legally and properly dis­ missed by the latter is a question of law, and the decision of the Court of Industrial Relations on that question is appeal­ able to this Supreme Court by certiorari. “In the present case the Court of Industrial Relations, according to the above quoted conclusions of fact, has found that the relationship between the petitioner and the respon­ dent Fortich was that of agency or of principal and agent, because the respondent was a manager of the branch office of the petitioner in San Pablo, Laguna; and that the respon­ dent Fortich ‘has actually violated his trust as branch man­ ager’ of the petitioner’s office in San Pablo, Laguna, for the sale of automobiles and trucks. The relationship between them being of trust, based on the confidence of the principal in the agent, Article 300 of the Code of Commerce is applicable. Said Article 300 provides: ‘ART. 300.—The following shall be special causes for which merchants may discharge their employees, even though the term of the contract has not expired: '1. Fraud or breach of trust in the transactions entrusted to them. *2. Engaging in any commercial transaction for their own account, without the express knowledge and permission of the principal. • » “In the case of Barretto vs. Santa Marina, 25 Phil. 440, this Supreme Court held that ‘even though a period is sti­ pulated during which the agent or employee is to hold his position in the service of the owner or head of a mercantile establishment, yet the latter may, for any of the special reas­ ons specified in Article 300 of the Code of Commerce, dismiss such agent or employee even before the termination of the period.’ The provision of said Art. 300 of the Code of Com­ merce as well as the above quoted decision of this Court ren­ dered before the promulgation of Act No. 103 as amended, are still applicable although the respondent was a member of the Manila Trading Laborers’ Association, a labor union, because there is nothing in said Act which is in conflict with said Art. 300. “To order the petitioner as principal to reinstate the res­ pondent Fortich would be to compel the former to continue with the employment of the latter as its agent, in whom the petitioner has lost its confidence and whose continuance in the service is patently inimical to its interest. “The fact that the respondent Fortich had been laid off for almost nine (9) months without pay during the pendency of this case in the Court of Industrial Relations, can not be considered, as the lower court does, as a sufficient punishment for said respondent’s breach of trust and a justification for his reinstatement in the service of the petitioner. As the respondent Fortich has violated his trust as branch manager, and the petitioner was justified, under Art. 300 of the Code of Commerce, in dismissing and discharging him, the former has no right whatsoever to receive any salaries or compen­ sation from the latter for services he had not rendered during the time he has been laid off, and consequently his having been laid off or discharged not only during said period but definitely cannot be considered as a punishment in lieu of his discharge or dismissal. “In view of the foregoing, the decision of the lower court ordering the reinstatement of the respondent Vicente Fortich in the service of the petitioner is hereby reversed.” It is of interest to note that three justices con­ curred in the opinion as written, five justices concur­ red in the result, and the Chief Justice and one other justice dissented on the ground that reliance on the old section of the Code of Commerce was a backward step from the later laws and decisions on social, labor, and industrial questions. LINK-BELT ROLLER CHAINS AND SPROCKETS An accurately made finished steel roller of high tensile strength and excellent wear value made to ASA standards for power trans­ mission at either high or low speeds. Widely used on all types of machinery for drives and conveyors. Made in pitches 3/8" to 3" in single and multiple widths for drives to 1000 H.P. and above and various attachments for conveyor applications. Stock sizes. OTHER LINK-BELT PRODUCTS INCLUDE: Malleable Iron, Promal, Steel, and Silent Chains and Attachments... Babbitted, Ball and Roller Bearings... Shaft Couplings and Col­ lars... Clutches... Speed Reducers and Increasers... Variable Speed Changers... Conveyors of various typvs. etc.—builders of the most complete line of materials handling and power transmission ma­ chinery. Let us figure on your needs. Official Link-Belt Representative IHE EARNSHAWS DOCKS«HONOLULU IRON WORKS Cor. Tacoma & 2nd Sts. Branch Office at: Port Area, Manila Bacolod, Negros Occidental TELEPHONES: 2-68-48 & 2-67-47 NEW ARRIVALS of “OSHKOSH” luggage COMPLETE SETS HAP HONG HARDWARE COMPANY Ship-Chandlery, Mill & Mining Supplies, Mechanics Tools, Construction Materials, Paints, Oils, etc. 78-88 Rosario, Manila Tel. 2-91-04 UAMILTON-BROWU BIGREAT EASTERN HOTEL BLDG., ECHAGUE216 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1949 • CINE-KODAK EIGHT-25 • Home movies are so easy and so certain with the Cine-Kodak Eight-25. And it’s not only low in price, but also economical to use. Come in and see this outstanding movie camera today. Two Convenient Locations The Kodak Store Kodak Philippines, Ltd. 138 Escolta 10-1-13th St., Port Area z r S'. Sole Distributors in the Philippines KUENZLE & STREIFF, INC. 31 Tayuman, Tondo, Manila Tel. 2-64-94 Branch Office: 306-308 Dasmarinas, Manila Philippine Safety Council By Frank S. Tenny Executive Director ALL members, clients, and friends of the Phil­ ippine Safety Council are urged to lend their active support to the passage in the Senate of HR No. 1460, “An Act to Create the Commission of Industrial Safety”. This Act was passed at the 1948 session by the House of Representatives and is now pending before the Senate. In short, the Act contains many of the elements to establish which the Safety Council was created and for which it exists. The Act originated in the Advi­ sory Safety Council and is largely the work of Chair­ man Primo G. Maliuanag. It is designed to create safe working conditions in Philippine industry which would at once protect the working man and greatly benefit the employer. Some of the purposes of the Act are: To guar­ antee safe machinery through adequate safeguards; to insure that emergency first-aid attention is nearby wherever required; to enforce basic industrial safe’ ty rules and regulations as adopted by the Interna­ tional Safety Codes; to cause periodic safety-inspec­ tions of all industrial establishments; to create em­ ployee-safety committees in all companies of any size; to enable safety research and tests by means of a national safety laboratory; to implement safety re­ gulations in connection with boilers, fire prevention, etc. No great expenditure of money is involved. The passage of this Act would comprise one of the longest forward steps taken in Philippine social and industrial legislation in a long time. Its effect on the saving of life and the preservation of property would be almost unlimited. Your help in obtaining passage of the Act is therefore urgently solicited. A telephone call or a personal note to one of your Senator friends would no doubt be of great value in this connection. If you would care to read a copy of the Act, please notify this office. (Safety Council members will note that our in­ terest in this type of safety is an indication of the fact that the PSC is not only a “traffic organiza­ tion”, as some persons think. We have fully re­ cognized the necessity for industrial safety activity, fire prevention etc., and are working almost daily in these lines.) FOR RE-WINDING OF GENERATORS—MOTORS CALL E. J. MORA ELECTRIC CO., INC. Address: 170-2 M. de Comillas Tel. 6-65-85 May, 19-19 AMERICAN CHAMBER OF COMMERCE JOURNAL 21.7 Weekly Changes in Retail Prices Bureau of Commerce, Market Division April 25-30, .1.949 WITH consumers’ buying- activities generally confined to routine purchases resulting in a comparatively weakened demand, prices of both local and imported commodities suffered moderate reductions, thus bringing down further the Bureau of Commerce Price Index to the 225.23mark, off 0.22 point compared with the level prevailing a week before. The drop of the index conversely raised fur­ ther the purchasing power of the Philippine Peso to 44.39 centavos compared with the pre-war (1941) peso. As in the previous week, eggs conspicuously featured in the recession of prices. Duck’s eggs, fresh and salted, re­ gistered 5-centavo decrements at Pl.35 per dozen. Marked improvement in arrivals of fresh fish supplies in City markets precipitated appreciable reductions in prides of bangus, apahap, dalag-, and hito. Slashes ranged from 3 to 10 centavos per kilo. Dried fish items displayed a mixed trend. Tunsoy tuyo recorded a drop of 7 centavos at P2.48 per hundred; tinapa registered a gain of 5 centavos at P3.50 per hundred. Also attributed to increased arrivals were the wide­ spread decreases in prices of several important imported canned goods. Evaporated milk (Carnation and Darigold brands) led off with a 4-centavo reduction at P0.35 per- tall tin; powdered milk,1 Klim and Lactogen brands, recorded LUZON STEVEDORING COMPANY, INC. MANILA KARKOTE UNDERBODY COATING PREVENTS RUST • ROT « RATTLE Makes New Cars One application of Insul-Mastic Karkote prolongs the life of any auto... new or old. It insulates the exposed un­ derbody against further rust and rot... deadens load noises, too. Inexpensive quickly applied ...get full de­ tails today. INSUL-MASTIC V>"karkote Authorized Karkote Dealers: Manila Trading & Supply Co. Philippine Motors Reliance Motors United Motors Distributed by: MARSMAN & CO., INC. Trading Division Sta. Lucia at Anda Tel. 2-79-31 Intramuros, Manila “Boy Scouting is Nation Building" Do Your Part Work on the Rockwell Station at Makati is progressing as ra­ pidly as arrival of equipment allows. The completion of this new power station will make an additional 50,000 kilowatts available to supply the increased demand for electricity in Manila and its MANILA ELECTRIC COMPANY 131 San Marcelino. Manila CHRYSLER CORPORATION AIRTEMP packaged Air Conditioning and Refrigeration Exclusive Distributors: W. A. CHITTICK & CO., INC. Ill, 13th Street, Port Area, Manila 218 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1949 DEMING Look to The Deming Company for the right pump for the job! The complete line includes Deming Figure 4700 deep well turbine pump (capacities 15 to 3000 gallons per minute); a full line of suction centrifugal pumps; and a com­ plete line of water systems in all capa­ cities. Demins side suction cen­ trifugal pumps arc avail­ able in single and two ball bearing types. Can be furnished for belt drive or with electric Exclusive Distributors MANILA MACHINERY s SUPPLY CO., INC. 2:13 David (YWCA Bldg.) and 675 Dasmariiias P. O. Box 607 Tel. 2-72-98 Greatest Improvement in Dictation Technique Since the Invention of Shorthand 1 • PERFECT, ERROR-FREE DICTATION — Perfect fidelity plus "magnetic erasing” makes dictation smoother, faster for you. • TRANSCRIBING TIME REDUCE 25% — No cylinders to shave — no breakable records to handle — no clumsy discs. • SAVES 83% IN COSTS — Studies made for the government prove conclusively PEIRCE saves you up to 83% on long term usage, in competition with conventional disc and cylinder machines. Ask for cost study! • HUNDREDS OF USES — Ideal for inventory taking — educa­ tional purposes — police work — conventions — sales training — recording telephone conversations. TELEPHONE TODAY FOR FREE DEMONSTRATION ANO TRIAL 5-centavo decrements at Pl.95 and P2.45 per pound tin, re­ spectively, Sardines, in tomato sauce, registered declines ranging from 5 to 7 centavos at P0.55 to P0.63 per tin de­ pending on the brand. Corned-beef lost from 2 to 5 centavos at P0.90 to P0.98 per tin also depending on the brand. Fresh vegetable items were almost totally unchanged ex­ cept for the rise in price of chayote from P0.18 to P0.27 per kilo. The first important break in the continuous rise in prices of cement during the past few weeks occurred during the week on review when Rizal was pared down to P4.25 per 94-lb. bag, off P0.23; and imported, to P4.30 per bag, off P0.35. The sudden drop in prices of cement was attributed to the reap­ pearance of Apo cement in the market at prices ranging from P4.30 to P4.50 per bag. Despite the arrival of a sizeable shipment of Japanese galvanized iron sheets, prices in the open market were steady. Notwithstanding the brisk construction activity now go­ ing on, prices of lumber of the second and third group clas­ sifications suffered 1-centavo decreases at P0.19 per board foot for apitong or palosapis, and P0.18 for almon or white lauan. Prices of other commodity items such as textiles, fuel, meat, footwear, etc., were reported unchanged. SOLE DISTRIBUTORS O. E. S. & S. Co., Inc. 673 Dasmarinas (Gibbs Bldg.), Manila TEL. 6-72-36 MANILA SHIPYARD, DRYDOCK AND ENGINEERING CO. OFFERS COMPLETE HULL AND ENGINE REPAIR THREE SLIPWAYS AND DRYDOCK AVAIL­ ABLE. Shipyard: Navotas, Rizal Tel. 40 Ask 499 Office: Room 507 Insular Life Bldg.; Manila Tel. 2-89-06 May, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 219 COST OF LIVING INDEX OF WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1946 TO 1949 (1941 = 100) Bureau, of the Census and Statistics Manila 1946 All 1 House cioth-1:Fuel, Light 1 Miscel­ Purchas­ Items 1 159.15) Rent and Water laneous ing Power (8.43) (0.62) | (13.941 | (17.86) of a Peso January . 603.4 759.2 236.4 984.0 363.8 434.8 .1657 February 547.2 656.3 236.4 940.3 369.5 460.5 .1827 March . . 525.9 631.0 236.4 940.1 340.4 445.2 .19U2 April . . 556.2 684.1 236.4 910.3 345.5 435.9 .1798 May . 545.1 675.6 236.4 762.5 342.3 409.6 .1835 June . . 538.7 666.4 236.4 737.9 343.3 404.2 .1856 July . . . 552.7 704.3 236.4 598.9 341.3 364.6 .1809 August . . 477.9 590.0 236.4 384.7 320.9 346.3 .2092 September 477.9 591.3 236.4 378.7 314.5 347.2 .2092 October . 487.4 587.2 236.4 382.7 405.8 342.7 .2052 November 484.8 607.8 236.4 406.4 346.5 305.2 .2063 December 461.9 570.8 236.4 371.9 344.7 302.1 .2165 19472 (100.00)(63.43) (11.96) (2.04} (7.73) (14.48) * Average number or persona in a iamuy = 4.» members. 2 Revised in accordance with the new survey on the "Levels of Living, in Manila” by Department of Labor and the Bureau of the Census and Statistics conducted in December, 194G. January . 426.2 368.2 453.9 381.9 326.2 282.5 .2346 February 418.5 454.9 453.9 356.2 344.8 281.4 .2389 March . . 406.8 440.1 453.9 295.2 334.7 279.4 .2458 April . . 387.7 413.3 543.9 269.2 328.9 271.6 .2579 May . . 381.0 404.4 453.9 250.9 £25.4 269.4 .2625 June . . 386.3 414.4 453.9 236.8 316.6 268.6 .2589 July . -. . 393.4 426.8 453.9 217.7 309.3 269.9 .2542 August 387.4 419.8 453.9 210.2 292.0 269.1 .2581 September 368.9 392.1 453.9 216.4 283.3 266.8 .2711 October 358.7 376.3 453.9 212.7 280.5 267.7 .2788 November 358.4 376.3 453.9 215.1 280.5 265.3 .2790 December 371.9 395.8 453.9 219.1 298.2 262.9 .2689 1948 January . 391.2 428.3 453.9 224.5 304.6 249.9 .2556 February 368.5 392.0 453.9 223.8 301.1 254.4 .2714 March . . 349.4 361.0 453.9 214.6 308.1 255.9 .2862 April . . 356.1 374.1 453.9 209.4 289.7 254.8 .2808 May 349.8 360.2 453.9 214.2 289.7 271.6 .2859 June 354.3 370.4 453.9 205.2 283.2 262.9 .2823 July . . . 356.4 374.2 453.9 201.3 281.6 262.4 .2806 August 363.6 385.7 453.9 199.8 281.6 261.7 .2751 September 370.6 397.2 453.9 199.2 279.6 260.6 .2698 October . 374.9 404.0 453.9 204.8 283.2 257.9 .2668 November 368.7 394.4 453.9 202.0 281.6 258.7 .2712 December 365.9 389.9 453.9 202.0 282.4 258.9 .2732 1949 January . 363.8 386.8 453.9 202.0 279.0 258.9 .2750 February 343.8 355.5 453.9 203.0 277.5 258.9 .2909 March . . 346.3 358.2 453.9 202.0 276.3 258.5 .2896 April . . 348.7 362.6 453.9 197.6 287.5 257.1 .2868 MOTOR SERVICE CO., INC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES - TIRES • TUBES 230 13th ST., PORT AREA TEL. 2-65-27 SILVER AND JAVA PACIFIC LINES SILVER LINE, LTD. London, E. C. Z JAVA PACIFIC LINE N. V. S. M. "Nederland" N. V. Rotterdamsche Lloyd KERR STEAMSHIP CO., INC. General Agents 17 Battery Place New York Amsterdam—Rotterdam JAVA PACIFIC LINE, INC. General Agents 25 Broadway New York MANILA VANCOUVER LOS ILOILO CEBU To and From SEATTLE PORTLAND ANGELES and SAN FRANCISCO To and From BOMBAY and CALCUTTA ★ SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Place, New York 4, N. Y. FROM U. S. ATLANTIC COAST PORTS TO MANILA FROM PHILIPPINES TO HALIFAX and U. S. ATLANTIC COAST PORTS For Particulars See: ROOSEVELT STEAMSHIP AGENCY, INC. AGENTS 3rd Floor, Trade & Commerce Bldg., Juan Luna Tel. 2-82-01 WELDED STEEL All Ball Bearing FILING CABINETS INQUIRIES AT F. H. STEVENS & CO., INC. 4th FLOOR, EL HOGAR FILIPINO BLDG. Manila—Tel. 2-86-13 220 AMERICAN CHAMBER OF COMMERCE JOURNAL______________May^J919 PHONE 2-79-35 and we will do the rest! • Customs Brokers • Warehousemen • Trucking • Packing & Crating • Freight Forwarding • Ship Husbanding • Cargo Superintendence • Armored Car Service • Air Cargo Agents MR. R. L. BARY LUZON BROKERAGE COMPANY ’ LET YOUR HAIR DOWN” _ Column THE editor came bustling in one morning around ten, but he looked a little pale. “My son-in-law, — one of them, Roberto de Leon, suie knocked me out last night,” he said. “So?” we said. “Yes,” said the editor. “He is a young fellow, of course, and in the employ of an American firm here. Well, he told me last night that he had been talking with an­ other young Filipino about a num­ ber of things and that finally this man had said: “ ‘We’re independent n o tv. Everything belongs to us, and we can do what we please.’ “Bert chuckled,” the editor went on, “but I winced. I may have ducked. Anyway, I sat down, and I couldn’t find a word to say...” “Unusual,” we cracked. “Of course,” said the editor, “those ideas were not new to me, I knew some of the people here were thinking them, but stated so baldly, with such'crystaline clarity, such engaging candor, such pris­ tine innocence, such a natural de­ light. . .well, it was just too much for me. It was as primitive as a blow; natural, straight to the chin. I admit it knocked me for a loop. What could anyone say against a declaration like that, at least un­ til he has had time to rally. “So natural, so human,” groan­ ed the editor. “So self-evident, so incontestible, so just and right on the face of it! “And yet,” he cried, “it is so wrong, so dangerously wrong, so terribly wrong! “But how explain that? How prove that to the people who be­ lieve it, who want to believe it? “And it’s not just a fantastic notion. Much that the Philippine Government itself is doing these days, in some of the laws that are enacted, in some of the decisions rendered by the courts, in some of the administrative actions, just that seems to be the both under­ lying assumption and actual deter­ mination ! “And here I have spoken I don’t know how many words, and I haven’t even begun to prove that the whole thing is impossible, crazy, suicidal, — I mean, prove it to the minds which can entertain such a proposition. “An examination, an analysis, a refutation of it would only tire such minds; they’d never follow it; and they would end up still un­ convinced. “Looked at closely, the meaning of every clause disappears. ‘We’re independent notv’. What does ‘independent’ mean? Are any people really independent, even ■politically? Are not all the na­ tions of the world rather inter­ dependent? And isn’t the Philip­ pines economically still far from independent? As a matter of fact, can any modern nation ever be economically wholly independent? Isn’t every nation dependent not only on the goodwill but on many material things it must obtain from other people? other coun­ tries? “ ‘Everything belongs to us.’ Then what of the principle of pro­ perty right? If non-Filipinos here E. E. ELSER, INC. GENERAL AGENTS for ATLAS ASSURANCE CO. LTD.—THE EMPLOYERS’ LIABILITY ASSURANCE CORP. LTD. CONTINENTAL INSURANCE CO. OF NEW YORK—ORIENT INSURANCE CO. THE INSURANCE CO. OF NORTH AMERICA Derham Building Port Area 404 Ayala Bldg., Manila Phone 2-77-58 Cable Address: “ELSINC” May, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 221 RADIOTYPE YOUR MESSAGES t/ie “wa ■■ For GLOBE MESSENGER Tel. 2-95-17 — 2-97-91 GLOBE WIRELESS Ltd. Main Office Sixth Floor China Bank Bldg. Branch Office Lobby, Filipinas Bldg. Plaza Moraga For PROTECTION and BEAUTY ■' Pacific’s Shasta Prepared House Paints give your house the most protection. Also, they give your house that surface beau­ ty you want. PACIFIC Paints Exclusive Philippine Distributors: Marsman & Co, Inc. Sta. Lucia at Anda, Manila Tel. 2-79-31 Branches: Cebu — Iloilo — Davao had no such right, then what would become of the Filipinos’ own right to hold property? And isn’t the right to acquire and hold property the basis of civilization, the root stimulus to all human effort? And who is ‘us’? Would the confiscated property be divid­ ed? Among whom? Who would get it? Who could keep it? “ ‘We can do what we please'. Again, who is ‘we’? The Govern­ ment? The people? All of them? Who of them? Would they all ‘please’ to do the same? What about our laws? the Constitution? Treaties with other nations? “Wouldn’t this whole crazy thing result in absolute chaos, with no one sure of anything, least of all the Filipinos, except that disorder, injustice, poverty, mi­ sery, corruption, crime, national disgrace and humiliation would be sure? “The principles of reason and right and justice rule over all men everywhere in the long run. Neither men nor nations are in ­ dependent of them; neither men nor nations can do what they please, if they please to do wrong.’’ The editor was breathless. “Maybe that will convince them,” we said. “Think so?” he asked anxiously. “As an editor”, he said, “I’m going to edit that statement; I’ll try to recast it.. .How’s this? — “The Philippines is a sovereign state and a member of the United Nations. The Government is our oivn. We shall ‘promote the gen­ eral welfare . . . under a regime of justice, liberty, and democracy’.”* • From the Constitution of the Philippines. ti'yOU are always putting stuff J- into this so-called column which puts me on the defensive”, said the editor toward the end of last month. “Here, take a look at this. How about putting this in?” And he showed us a letter to Mr. Stevens from a prominent American lawyer which Mr. Ste­ vens had kindly passed on to him and which started out as follows: "The editorials in the Journal are getting better and better with every issue. Even if you are fighting an up­ hill battle, you are doing a wonderful work...” “That’s enough,” said the edi­ tor. “Just the first paragraph. DROP IN TODAY FOR A DEMONSTRATION ERLANGER & GALINGER, Inc. 12S T. M 222 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1949 C. F. SHARP & COMPANY, INC. STEAMSHIP OPERATORS — AGENTS SHIP BROKERS 6ENERAL ORIENTAL AGENTS: WATERMAN STEAMSHIP CORPORATION Mobile, Alabama THE IVARAN LINES — FAR EAST SERVICE (Holter-Sorensen — Oslo, Norway) PACIFIC ORIENT EXPRESS LINE (DITLEV-SIMONSEN LINES) (TRANSATLANTIC STEAMSHIP CO., LTD.) GENERAL STEAMSHIP CORPORATION San Francisco SIMPSON, SPENCE & YOUNG New York V. MUELLER Kobenharn, Denmark Head Office: 5TH FL.. INSULAR LIFE BLDG. MANILA, PHILIPPINES TEL. 2-87-29 2-96-17 Branch Offices: SAN FRANCISCO—SHANGHAI SINGAPORE—PENANG TOKYO—YOKOHAMA—KOBE NAGOYA—OSAKA SHIMIZU—FUSAN (KOREA) Cable Address: "SUGARCRAFT” all offices For PROTECTION and BEAUTY I Pacific's Shasta Prepared House Paints give _ your house the most protection. / Also, they give your house that surface beau­ ty you want. PACIFIC Paints Exclusive Philippine Distributors: Marsman & Co, Inc Sta. Lucia at Anda, Manila. Tel. 2-79-31 Branches: Cebu — Iloilo — Davao Now isn’t that something! And don’t forget that as one of the foremost counsellors-at-law in this great city, Mr. X ordinarily gets big money for expressing his opi­ nion. If the Chamber had to pay for that it would have cost thou­ sands ! Regardless of that, it seems he just couldn’t restrain himself from sending it free. That’s how good the editorials are!” “Ya,” said we, “but ponder those words ‘better and better.’ Don’t get swell-headed. Do they not imply very clearly that you have not reached perfection? Worse than that. If you read those words backward, you get ‘worse and worse.’ So what, ac­ cording to Lawyer X himself, can you have been writing two years or so ago when you first blessed these premises with your pre­ sence?” “Well, that’s logical,” said the editor disconsolately. “Or is it? ‘Better and better’ read back­ ward may imply ‘worse and worse,’ but they may also imply what lies in between, which is ‘good.’ Ha-ha!” he crowed, “I’ve got you!” “What Mr. X may have meant, is beside the point,” we answered. “Our suggestion is that you get another opinion from him that will stand up. Find out, if you can, what he actually meant.” “I for one,” said the editor, “am sure that he meant well, and all of you can go to... grass!” NOTICE (Special to the American Chamber of Commerce Journal) THE United States Information Service, a section of the American Embassy, main­ tains a 16mm motion-picture service. In the USIS Library are films on a variety of educa­ tional subjects which are made available to schools, individuals, and organizations through­ out the Philippines. A recent edition of the USIS Audio-visual Catalogue included films avail­ able from the Ford Motor Company. It is clear­ ly stated in the catalogue that the films are not available from USIS but can be obtained by con­ tacting the Ford Motor Company office in Ma­ nila. A brief synopsis of each film is given in the catalogue. It has recently come to the attention of USIS that other American firms in the Philip­ pines have secured motion-picture films for pub­ licity or educational purposes from their home offices in the United States. USIS will be glad to include descriptions of these films in forth­ coming issues of the films catalogue in cases where the company has no objection to lending the films to Filipino individuals, schools, or organizations. Firms wishing to take advantage of this USIS service should phone or write Mr. Harold L. Goodwin, USIS, American Embassy, Manila. USIS also has available projectors and a small projection room which the organization would be delighted to place at the disposal of American firms ut any time. EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines BARBER-FERN LINE Service to U. S. Atlantic Via Straits, Suez, Mediterranean FERN LINE To and From North Atlantic Ports Gulf Ports — Philippines EVERETT ORIENT LINE Serving the Orient Philippines to China, Japan, Korea, Straits and India Ports PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarinas St., Manila Tel. 2-98-46 (Priv. Exch. All Lines) To all who need accurate figures in a hurry,,. 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THE ► Branches in the Philippines MANILA Main Branch: Juan Luna Street ____ —. — — --------Port Area Branch: Bonifacio Drive corner 13th Street corner M. de la Industria — " ' PAMPANGA: Clark Field Start a Savings Zcccunt with the NATIONAL CITY BANK OF NEW YORK TODAY! NATIONAL CITY BANK OF NEW YORK FIRST IN WORLD-WIDE BANKING AMERICAN EXPRESS TRAVEL SERVICE When thinking of TRAVEL always consult AMERICAN EXPRESS TRAVEL SERVICE REMEMBER it costs no more to buy your travel tickets by Air, Rail or Steamship through AMERICAN EX­ PRESS. A chain of Offices throughout the world is maintained to render service to our clients. NEVER TRAVEL WITHOUT AMERICAN EXPRESS TRAVELERS CHEQUES THE AMERICAN EXPRESS CO., INC. El Hogar Filipino Bldg.—Juan Luna St.—Tel. 2-71-56 General Foreign Agents NEW YORK CENTRAL RAILROAD G-E lamp research ii constantly at work to give you more light for loss money, to make G-E lamps stay brighter longerl Be sure your lamp is G-E ... for utmost light value and economy. GENERAL ® ELECTRIC 120 13th Street, Port Area, Manila Tel. 2-98-31