The American Chamber of Commerce Journal

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Issue Date: Volume XXV (Issue No.10) October 1949
Year: 1949
Language: English
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extracted text: 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; R. J. Newton, Vice-President; C. R. Leaber, Treasurer; F. C. Bennett, J. H. Carpenter, C. H. Hirst, N. Most, J. A. Parrish, and E. A. Perkins, Marie M. Willimont, Executive Vice-President; I. T. Salmo, Secretary. Vol. XXV October, 1949 No. 10 Contents 50 Centavos the copy 418 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1949 IT is common sense that trucks need truck tires because they do truck work. And thousands of small-truck owners arc finding that using auto tires costs money instead of saving it. So we invite you to look at the Goodyear Truck Airwheel pictured here. Pioneered especially for light trucks, its tread is wider and thicker than the tread on auto tires — to withstand the all-day, stop-start punishment of pick-, up and delivery operation. Extra stamina — from RAYON 'Beneath that tread, it is “bodied” with six or more plies of super-strong, heat-resisting RAYON Cord—for longest wear, maximum stamina. Beads are specially reinforced to prevent bead trouble. In every way it is so tough and strong — so balanced for truck work — it helps lengthen truck life. This great tire costs a little more. But when you add up its many savings of extra mileage, extra safety, extra long service, you find it is actually the lowest-cost tire to use. Available in two types — RIB TREAD for city service and improved roads — STUDDED SURE-GRIP for mud and snow. THE GOODYEAR TIRE & RUBBER CO. OF THE PHILIPPINES, LTD. Bacolod Manila Cebu Editorials “.. .to promote the general welfare” The almost unanimous election of Ambassador Carlos P. Romulo to the Presidency of the fourth annual session of the General AsWorld Assembly sembly of the United Nations, is President — an honor both to the man and the Romulo nation which he represents. He received the votes of the re presentatives of all of the fifty-nine nations, great and small, except those of Russia and its satellites who gave five votes to the Czeck Foreign Minister, one other, unidentified vote, possibly Yugoslavia’s being declared invalid. Mr. Romulo’s election may be interpreted as show ing both the esteem in which he is personally held and the respect and goodwill internationally entertained toward the Republic of the Philippines. It greatly enchances this nation’s prestige. May the Philippines hold the respect it has won and go on from victory to victory. The British Government’s devaluation of pound sterling The European Currency Devaluation by 30% has met with general ap proval as a realistic measure which it is hoped and believed will im prove the British position in inter national trade, but no one should suppose that the act resulted from anything else than a bleak recognition of a desperate situation which required desperate resort. The British action has prompted some. irrespon sible talk ‘ in Manila, — not in official quarters, to the effect that devaluaton of the peso might be a means to meet the situation created by the dollar shortage with would result here if our imports con tinue greatly to exceed our exports. While the peso is “tied” to the dollar at the ratio of 2 to 1 by treaty agreement and while there are other legal obstacles to arbitrary devaluation, this nevertheless, could be done and would, in fact, be inevitable under certain circumstances, but it must be emphasized that it would be a desperate resort to which a government turns only in extremity. The devaluation of the British pound was not a matter of choice except within margins of time and the precise degree of the devaluation. It was forced on the British Government by the untenable position in which Britain finds itself economically despite the assistance it has been receiving from the United States since the war. The fact is that though Brit ish production has greatly increased of recent years, the total production still runs far below the nation’s needs, the position having been worsened by the ef forts of the British Government, controlled by the Labor Party, to attempt through various socialistic measures to improve the condition of the British masses to an extent not justified by the present pro duction. This has cost money, — other people’s money, and the nation was on the verge of bankruptcy. The situation of Britain has once again shown that a people’s general welfare, whatever the will of the government, must depend and can only depend in the long run on their production and not on what they can borrow. Britain has to increase its production still further and has to increase its exports to pay for its imports. If total collapse is to be averted, the nation has eventually to live within its income. And, true enough, this holds true for us in the Philippines also. The situation being what it was, the British Gov ernment resorted to devaluation of the British cur rency. This means, first of all, and in effect, partial repudiation. People in Britain itself and elsewhere in the world who held pounds or who had invest ments in pounds suddenly found the dollar value of these assets reduced by a third. It means, further more, a reduction in real wages and, in the standard of living in Britain. Costs of production will be lessened and that was one of the effects aimed at because this will make it possible to offer British goods at lower prices and to sell more of them ab road. These lower production costs, however, will be partly offset by the higher costs of many imports 419 420 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1949 Now.,. Week/yTrvps to EUROPE Sun Route Fly with the on the New Straight-Line Beginning October 22, Philippine Air Lines inaugurates weekly flight service to Europe via Manila, Calcutta, Karachi, Lydda (Jerusalem), Rome, Madrid, London and Amsterdam. • DC-6 five-mile-a-minute SLEEPER PLANES • More comfort per mile O Faster flight schedules • New STRAIGHT-LINE “Route” • More convenient arrivals and de partures • Personalized service • Connections through inter-line agreements anywhere in the world. A. Soriano y Cia.—General Managers Main Office: M. R. S. Bldg., Plaza Cervantes Branches: Manila Hotel—Tel. 2-91-35 Telephone: 2-79-06—2-79-67—2-79-68 Avenue Hotel—Tel. 2-79-66 used in production and the higher cost of imports generally will also further affect the cost of living. Devaluation results in still further consequences and complications which reduces its usefulness even as an expedient. Other nations vieing for foreign markets and faced with threatened severer competi tion from a nation which thus seeks to reduce its production costs and the prices of its exportable goods, follow suit in devaluing their own currencies, and each time this happens the advantage tempora rily gained by the nation which first devalues its cur rency is diminished. As every newspaper-reader knows, the British devaluation was followed by the devaluation of the currencies of a score of other countries. In the present case, however, Britain ex pected this and even wanted it because its policy is aimed at improving the situation of all the countries within its economic orbit with respect to the United States. Another consequence and complication which di minishes the temporary advantage gained by devalua tion, is the likelihood that the workers of the country or countries affected will demand wage and- salary increases to compensate for the decreased purchasing power of their pay and to meet the higher prices of the foreign goods they are dependent upon. There is already evidence that such demands will be made by the British workers. So, before long, the temporary advantage gained by devaluation may be entirely wiped, out and the position will be worse than it was in the beginning unless, in the meantime, production costs have been reduced through greater efficiency of methods and exported goods sell well because they are better adapt ed to foreign demand. IT is of the most basic importance in the economic life of a nation and indeed of the whole world, to have a stable currency — stable currencies, affected only by the great time-trends which follow advancing technology and increased production, trade, and con sumption and to have also stable rates of exchange of currencies among nations based on the price of gold and the cost of shipping it back and forth between countries as required by their trade balances. The International Monetary Fund was establish ed after the war principally to stabilize currencies and exchange in so far as this is possible at present, but though the Fund exercises great authority, still even this powerful international body can not fly in to the face of economic law. Due to the state of British finances and the trade imbalance, the true value of the pound sterling — in terms of the rela tionship of domestic cost-price levels in Britain and the United States — had fallen to about its pre sent level long before the British Government took the action it did, and the Fund, in approving the course the British Government took, only endorsed the inevitable. The brutal fact is that the British pound wasn’t actually worth what was being asked for it, and that couldn’t go on. .These are the facts in broad outline, if some what over-simplified, and they should serve to show that we must not talk recklessly of devaluation as a course which may be lightly adopted as an easy, pleasant, and satisfactory remedy for economic and financial trouble. GREAT Britain did it. Many other nations did it. Why not we? Why not have four pesos instead of only two for the dollar? Wouldn’t that double the value of our reserves? Such talk is im becile. If the Philippines should ever have to face a peso devaluation, that would not be merely a maneuver on the part of the gentlemen in the Central Bank of the Philippines. It would mean that the country was teetering on the edge of financial ruin. It would mean that the present constructive planning had failed. It would mean a poorer life for all of us for perhaps a long long time. When the step must be taken, as in the case of Britain and some of the other European countries, we may say that devaluation is good because it clarifies the actual situation, bad as it may be, and because, though at no small cost, it offers a “breathing-spell” and an opportunity for a new start. But let us re cognize devaluation for what it is,—a desperate ef fort to avert a financial and economic, and some times a political, collapse. We should understand that forced devaluation is a natural consequence of a depreciation in the real value of a currency, but that an artificial revalua tion, either upward or downward, merely to influence costs and prices and wages and debts, is an attempt at contorting the real function of the currency, which is to “facilitate the exchange of goods and the flow of capital on the most stable basis”. Such manipula tions are only one manifestation of the belief cur rent in some government circles throughout the world that natural economic laws may safely be twisted to obtain certain ends. The result of this error is seen in Europe today, where the multitudinous govern ment controls of all kinds have only worsened the economies of all the countries affected and made con fusion worse confounded. AS for the possible effects of the present devalua tions on Philippine trade, the consensus is that these will be minor, as most of our trade is with th United States and not with the countries in the ster ling or “soft-currency” areas. Trade with Britain and other countries which have devalued their currencies may be expected to pick up in so far as our imports from them are concerned; our exports to them, how ever, may not, for a time, hold their own because of the higher prices buyers there will have to pay for our products in terms of their own devalued curren cies. Our export trade with the United States may also suffer somewhat in such commodities as copra, in price if not in volume, because of the lower prices, in dollars, at which such products will be or may be come available in the world market. It will take time, however, for those countries whose products compete with ours, to expand their production. IT is true, in general, that all countries which do not now devalue their currencies are likely to lose sales to the countries which have devalued them, but that is not sufficient reason for them even to con sider a like devaluation. For countries which do not have to devalue, countries which are relatively pros perous and whose currencies are stable with respect to the U. S. dollar, it would be madness to devalue simply because some other countries have done so and because they may face some export decreases. Such countries are in a position to absorb whatever losses may be entailed in the interest of saving the countries which are in extremity and whose recovery, as in the case of Britain and other European nations, is so necessary to the re-establishment of general world prosperity. 421 That is why the United States Government scouts all talk of dollar devaluation. The dollar is today the international standard of value and it is important to the highest degree to keep that standard stable, free from even a breath of impairment. If the dollar were devalued, then the only sense there is in the de valuation of some of the other currencies would imme diately disappear. From the shorter point of view, the more pros perous nations are, in a sense, making a sacrifice in thus submitting voluntarily to a more intensive com petition from the less fortunate countries. But that is today the price of civilization. It is also proof that in the “high finance” of so-called “capitalism”, considerations of sympathy and humanity do enter as well as what has been called “enlightened self interest”. The United States Government is very soundly encouraging the British and the others to sell more to America because, in the long run, that is the only way the United States could sell more to Europe. And when we think of “selling” (and buy ing), let us think of what that really means: an exchange of needed are desirable goods to the mutual advantage and enrichment. Members of the American Chamber of Commerce and businessmen generally, we believe, will be very much pleased with a statement by Mr. Aurelio Periquet, who was recently elected Presi dent of the Chamber of Commerce of the Philippines, succeeding Mr. Gil J. Puyat, in the August issue of Philip pine Commerce, the monthly organ of the Philippine Chamber. The Dead Hand of Government Control The statement is contained in an article outlining an 11-point program which Mr. Periquet has set for himself as the new head of his Chamber, and comes under Point 7. It runs: "Anything that impedes free enterprise is objectionable. Government intervention has been decreed time and again, whether in this country, in the United States, or elsewhere. One such measure is import control. I recall that we endorsed for approval the law establishing import control as a tem porary measure. While I do not argue on the beneficial ef fects of the import control, such as the conservation of our dollar reserves, by canalizing the import trade to essential com modities and capital goods and restricting the importation of luxuries and non-essential goods, the fact of the matter is that we favored it as a temporary measure. I shall suggest to the Board that we send a referendum to the members asking them to give their opinion as to the continuation or repeal of the import control so that we may arrive at a definite stand on the matter.” “Anything that impedes free enterprise is ob jectionable.” That is as sound as it is emphatic. That is the authentic note. As for import control, Secretary of Commerce and Industry Balmaceda has again announced that furth er cuts in the imports of “luxuries and non-essentials” are due and will be “substantial enough” to necessi tate the observance of “greater austerity” here. A section of the press having stated that the “American community” now “supports” import con trol, the American Chamber of Commerce last month deemed it necessary to isstie a press statement deny ing this in so far as the Chamber’s representation of the American community is concerned. The statement ran substantially as follows: “The problems confronting an American businessman here are the same as those which beset the Filipino businessman. Their interests are very much the same. Both are interested in the establishment of a sound Philippine economy. “Any criticism we may voice is offered as constructive criticism and in a desire to help. “We are convinced that import restrictions are not a cure and can be only a temporary palliative of the exchange difficulties of this or any other country. “When import control was first being considered here, considerable opposition was expressed both by Filipino and American businessmen. There was a general belief among them that the problem offered by the excess of imports over exports could best be solved by: “1. Increasing local food production so that less food need be imported; “2. Increasing our exports; “3. Increasing the manufacture of all products which may be manufactured from local raw materials. “Most businessmen at that time were not convinced that import control was necessary if a properly planned program of increased production were immediately and energetically put in operation. “The Philippine Government, however, decided that im port control was necessary and such controls were imposed. Since that time all American business houses here have faith fully cooperated in the attempt to make these controls work. “If the situation today is indeed such that it has become urgent that even stricter controls be imposed as a temporary means to conserve our dollar-balance, then no right-thinking businessman, American or Filipino, would oppose them. “However, even if this were so, there might still be con siderable criticism of the methods used, and general criticism of the whole policy will no doubt continue unless all other possible means of balancing our imports and exports are dil igently pursued so that the control may be terminated as soon -as possible. “There are two ways in which a country may balance its exports and imports,—one is right and the other is wrong. “One is to lower the standard of living,—and import con trol is one means for bring that about. The other and right way is to produce more and to export more in exchange for what is imported, utilizing all possible natural resources and, in our case, especially increasing food production. “The American Chamber of Commerce always has been and still is opposed to import control in principle. However, the Chamber is as deeply concerned in the financial stability of this country as any other organization, and would cooperate •wholeheartedly in the execution of any necessary policies adopted toward that end. The foregoing was a more or less generalized statement for the Manila newspapers. In this Jour nal we should like to point out that while, under the present control, whether necessary or not, and with more lines coming under control all the time and with progressively larger cuts, the volume of imports has indeed been reduced, but this “success” has been accompanied by much damqge. One of the most un toward effects is that it has become virtually impos sible for businessmen to plan ahead except, in gen eral, for still poorer business. The businesses of many importers have already been seriously curtailed, and it would appear that they have nothing to look forward to than still further curtailment. What normally constitutes around half of the business of this country engaged in foreign trade,— the import business, has been most seriously affected and most deeply discouraged. All thought of expan sion has been given up; stability, confidence, much of business incentive,—all this has already been sacri ficed to the policy of import control. In the “Real Estate” column of this Journal last month, the statement was made that “office space shows a growing percentage of vacancies in new buildings, and warehouse space is more readily avail able than at any time since 1945.” And the editor of the column added: “Office and warehousing space appears to be feeling the effects of import control” The policy has reduced imports, and if it is per sisted in it will certainly reduce imports still further, but this will be at the cost of the failure Of many businesses and the loss of their jobs by thousands of our workers. 422 October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 423 BEFORE YOU BUY LOOK UNDER THE HOOD OF A DIESEL POWERED Diesel Powered International Trucks and buses incorporate all the latest engineer ing advancement in design. They are built stronger from high quality materials to insure long life. 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And rather than talk of “greater austerity” in a country that for fifty years has been engaged in an earnest effort to increase the general standard of living, we should talk of greater effort, greater in dustry, greater production. We should resolutely set our minds on more rather than less, on development, prosperity, abundance, rather than on choking and checking, retardation, retrogression, a more grinding poverty. “Anything that impedes free enterprise is ob jectionable.” Nothing so impedes enterprise as gov ernment controls. That, indeed, is the dead hand the laying on of which palsies and kills. Since the foregoing was written, some of the Manila newspapers published summaries of a new import control order which, it was Hog-wild stated, was to be submitted to the Cabinet for approval. The order would apply to no less than 160 different classifica tions of goods, some 65 of which would be new, and the cuts would range up to 95%. The following day it was officially stated that this had been an unauthorized and premature pub lication of an “unedited draft”, but business generally was aghast at the extent of the further curtailment of imports which is evidently being considered. We wish to make it plain that nothing that was said in the Chamber’s release to the press or in the foregoing editorial should be or could be interpreted as being in support of any measure so extreme. It would be so-called “control” itself running uncontrol led and hog-wild. It would be ruinous to much if not all of our business and our general economy, a ruin that would certainly have to be measured shortly in terms of failures and bankruptcies, decreasing new investment, increased unemployment, a falling off in government revenues, all against a general rise in prices and an increased cost of living, and greater and greater popular discontent. No government can afford to draw such conse quences upon itself at the behest of a group of its bureaucrats and theoreticians. A despairing contrast between humanity’s tech nological and political progress, is often drawn. Our science has far outrun our Demagoguery — The Broadening Base of Government for the* demagogue. politics. Yet we have made political progress, too, even if it be admitted that the abso lute ruler has only made way Though a number of ancient states and empires were certainly not small, political forms of organiza tion in general have grown vastly not only in size and power, but in the character of their human base. In the main, the many have always been gov erned by the few, but governments have, on the whole, become steadily more representative of, and responsive to, ever greater masses of people. Government by war-chiefs and medicine-men, by feudal land-owning classes, by ecclesiastical hierar chies, by aristocrats, nobles, and kings, by oligarchies of merchants and plutocrats, — all such forms of do mination lie largely behind us. They appeared and disappeared, often to appear and disappear again, on the world-scene in various places and over many centuries, and they all played their part in human advancement. They all served, primarily in estab lishing and maintaining order, but generally also ex ploited the multitude. These various classes of rulers have succumbed, one and all, before the surge and swell of the will of the people, before the great democratic flood, whe ther it was recognized as such or not. And even from the first, the most veritable tyrants had always to be careful that the mutterings of an oppressed peo ple did not rise to the cry of revolt. The demagogue is generally conceived of as a sinister figure, and this he may be and often is, though demagogues may range in character from a Roosevelt (some have called him a demagogue) to a Hitler. Today, even totalitarian despots give lipservice to democracy, and though they rule by terror they themselves live in mortal fear of the people and play upon them with every organ of propaganda in the effort to retain their grace. That even the most evil rulers of these times are demagogues, is an un conscious tribute to the people and their latent power. When we see demagoguery in action today, we should not be wholly disgusted but rather recognize that fundamentally it is a hopeful thing that a poli tical scoundrel must, as does the honest democratic leader, attempt to win over the people instead of seek to gain the support merely of the classes and the special interests, as he had to do in the past. If we are largely governed through demagogue ry today, this is because the power of the people is recognized. If the historical process has led only from the autocrat to the demagogue, we should understand that while both are dangerous, the latter rarely exercises such absolute power as did the former. The spirit of democracy may be subverted and perverted, as it is under what now is called commu nism. But even so, no demagoguery can long save any regime when its appeal to the people ceases to be convincing and the despotism can only be maintained by naked force, for force must always in the end bow to the people’s consent. Under modern “scientific” methods of control, including not only terror and brutalization, but a hypnotic propaganda, it does appear that whole po pulations might be hopelessly enslaved, made un aware of their chains, dulled to all their miseries, even taking in them an idiot-delight. But that is such a nightmare picture of the humanity of the future under totalitarianism that we feel that it could never be true. Somehow, man, with his hu man intelligence and spirit, would fight himself out of such a demonic trap, which only madmen would be capable of constructing. Not that we have not had such madmen. Mussolini was one such, Hitler was another... and there are still others. We may confidently expect further development in democratic leadership as the people themselves raise their material, intellectual, and moral stand ards. If much of today’s leadership even in our de424 October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 425 INTRODUCE YOUR NEW PRODUCT REPACKAGE YOUR OLD ONE in REYNOLDS ALUMINUM FOIL The quickest way to attract a customer’s eye is to wrap your package in aluminum foil. Its sparkle stands out among all other packages. And you can be sure that this attractive covering seals in fresh ness; seals out moisture, light and odors. 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A. • CABLE: FOILWAX NEW YORK Representatives throughout the world REYNOLDS ALUMINUM WORLD’S LARGEST MANUFACTURER OF ALUMINUM FOIL mocracies is still merely demagogic, — addressing it self to ignorance, prejudice, and passion, resorting to catchwords, lying accusations, specious arguments, making use of social discontent to hoist itself to power, then there is also a growing capacity on the part of the people to discriminate between great men and mountebanks, between sincere men and hypo crites, between devoted men and the self-seekers, be tween the planners and the sly plotters, between the builders and the underminers, between the preservers and the assassins and destroyers. The exploiters of every type will continue to at tempt to play their parts, but they will be ever more surely recognized for what they are, and will be given ever lesser shift. We publish in this issue of the Journal a very dear exposition of the facts, the law, and the equities involved in connection with claims which have arisen from the Japanese seizures of the credits and bank deposits of American and allied Japanese Seisure firms and nationals in the Philipof American pines, including decisions of the Bank Deposits Philippine Supreme which in effect “validate” this enemy action and re lieve certain local banks of any obligation to their pre-war depositors and also relieve debtors generally who paid off their pre-war obligations in Japanese military notes, of all further liability. The Court decision with respect to the liability cf these local banks to their pre-war depositors has fallen especially heavily on numerous Americans of moderate means, former civil servants and veterans cf the Spanish-American war who are thus deprived of their life-savings at a time when they need them most. The situation cries for corrective action. Story of the Manila Bankers as told in the Santo Tomas Internment Camp 'f By A. V. H. Hartendorp MANILA bank executives among the internees, unanimously, though with bankers’ reserve, expressed dissatisfaction with the manner in which the abandonment of the city had been carried out by the United States and Commonwealth author ities. They said, as did everyone else, that they had received insufficient warning. The three days just prior to the enemy occupation, during which the banks were closed to the public, could have been used by them in preparing for the inevitable, but they were actually given over to little more than the ordinary end-ofthe-year business of banks. Bankers said that if they could have gotten their records away, the Japanese would have had much greater difficulty than they had in taking over control of the business of the country. As for the public, had the banks been open during the last two days of the year and on New Year’s Day, not so many people would have been caught in the most terrible crisis of their lives with little or no money. But December 30 is Rizal Day in the Phil ippines, a national holiday; December 31, as the last day of the year, is customarily a bank holiday; January 1 is a public holiday. January 2 (Friday) was the day of the enemy occupation, and although the Japanese did not enter the city until around six o’clock in the evening, they had been expected from hour to hour during all of that day. Great fires were raging at Pand’acan, along the river banks, and in the port area, looting was going on, the city was in panic. The night before, the bank managers, in consultation with Buss and Vargas, had decided that the banks should remain closed that day. It was too late to think of opening them then. A brief summary of Philippine banking history during the six months which preceded the outbreak of Author’s note: — This is one of a number of similar sections, based on personal interviews, in the writer’s unpublished book on Santo Tomas. It was written after interviewing most of the bank officials, American and British, then in the camp, and was checked by them for accuracy at the time. As a precaution against the results of a possible discovery of the manuscript by the Japanese, names were little used and sources were never indicated. the war in the Pacific, is interesting. About the beginning of this time, all the banks were busy on “T. F. R. 300,” a form which had1 to be made out for the U. S. Treasury showing the assets and liabilities of all foreign nationals in the Philippines; also of those Americans in the Philippines whose legal residences were in the countries mentioned in the various “freez ing” orders of the American Government. These forms were completed in October and November and turned in to the office of the U. S. High Commissioner. The freezing of Chinese assets followed the freez ing of Japanese assets as a measure, taken in colla boration with the Chinese Government, to prevent Japanese manipulation of Chinese finances. The purpose of the freezing orders was not to interfere with the legitimate business of the nationals of the countries to which these orders applied, but rather to control certain exports which were of military im portance to the aggressor nations. The Japanese and Chinese nationals in the Philippines were still allowed to diraw up to Pl000 a month from the banks in which they had deposits, this applying also to Americans in the country whose residences were in Japan or China. The two Japanese banks in the Philippines,—the Yokohama Specie Bank and the Bank of Taiwan, were ordered closed on December 8, the day war broke out, and all Japanese accounts in other banks were frozen. Had Manila not been occupied by the enemy so soon afterwards,—within a month, certain concessions would no doubt have been made with respect to indi vidual bank withdrawals by interned Japanese nation als, but things moved too swiftly. The offices of the Japanese banks, though closed, were not interfered with, but a representative of the High Commissioner’s office went into each of the banks. Japanese business houses, factories, stores, etc., were simply closed-and 426 LAST WORD IN ENGINE PROTECTION! Mobiloil NOW BETTER THAN EVER ! STANDARD - VACUUM OIL COMPANY placarded, “Closed by Order of the USAFFE.” There was some discussion as to this by the authorities and in the end it was decided that the High Commissioner’s office would take charge of these alien properties, but it was already too.late to work out any course with reference to them. Pre-war banking hours in Manila were from 9:30 a.m to 2:30 p.m. After the outbreak of war, the hours were changed from 9:30 to 12:00, with but one instead of two bank-clearings a day. This was found advisable because the frequent bombing raids on the city greatly upset bank routine. Regulations were issued by the Bank Commis sioner limiting all personal cash withdrawals of de positors to P200 a week, a special license being re quired to withdraw more. Later on this was changed to P1000 a month. This was for the purpose of pro tecting the cash-on-hand in the banks. There was, however, no difficulty in drawing cash for pay-rolls, and those earning more than P200 a month had the excess transferred to their accounts. Outstanding bills could be paid in checks negotiable through the banks, as such checks, cleared daily, did not involve the payment of cash over the counter, but were met in the aggregate by the clearing-balances which the various banks maintained at the Philippine National Bank. There were also restrictions on exchange, to pre vent a “flight of capital,” and telegraphic transfers were limited to P500 in the case of individuals except by special permit from the Bank Commissioner. Company transfers were however permitted within their established regular requirements, and the Bank Commissioner allowed the banks considerable latitude in carrying out this order. On December 10 the order went out that banking institutions for the purpose of fulfilling exchange contracts executed after December 8, 1941, should satisfy themselves that such contracts were entered into for the purpose of obtaining foreign exchange with which to pay for the import or export of goods. There was a difference of opinion among the bankers in Santo Tomas whether this applied to banking institutions themselves. Though there were official indications of what was ultimately to be expected, bank managers in the Santo Tomas camp stated definitely that they had never received any direct warning from any respon sible government official that the enemy occupation of the city was as imminent as it proved to be, with the result that many important records, which might otherwise have been placed in safety, fell into the hands of the Japanese. In actual cash and negotiable securities, hoivever, the Japanese probably got very little. The High Commissioner gave the public an op portunity to lodge U. S. currency and government bonds with bis office against receipt, though only for a few 'days late in the month, December 22 to 24. F. C. Bailey, assistant manager of the National City Bank of New York in Manila was deputized to handle this business at the offices of his bank. Publicity was given to the matter in the newspapers and many peo ple took advantage of the opportunity this offered, though many more were still standing in line to await their turn when an armored truck called for the last time at the bank around 11 o’clock on the morning of December 24 to take this wealth away. On May 26, the Bank Commissioner had issued “Special License No. 12,” authorizing withdrawals from banks— “for the purpose of buying bonds and/or other evidences of in debtedness to the Government of the Philippines, or of the United States or any of its instrumentalities authorized to issue such bonds and/or evidences of indebtedness, including bonds issued by government-owned or controlled corporations and other institutions, public or private, engaged in the military and civil defense of the Philippines. Any banking institution against which sucn withdrawals are made shall act as agent of the withdrawing depositor for the purchase of such bonds, or shall otherwise satisfy itself that such withdrawals are being made and will be solely used for the purpose of buying such bonds.’’ The Mint as well as the Philippine Treasury was housed in the Intendencia Building on the Intramuros side of the Pasig River, and this building was bombed and partly destroyed by the enemy around noon on Saturday, December 27. Two bank men, in the Santo Tomas camp, an American and a Scot, were caught in the first attack. A bomb exploded in front of the entrance, and although others were killed and wound ed, the two, who happened to be standing behind the large pillars in the lobby, escaped injury. The chauffeur of the Scotsman had not come in to take shelter and was killed in his car, parked just outside the entrance. After the raid, the men got away on foot, across the Jones Bridge, and had reached their offices badly shaken, when, in a return attack, the Intendencia received several direct hits. Many in the building were killed). A representative of the Monte de Piedad had a man killed right on top of him. He himself was unhurt. The bombs were probably aimed at the shipping in the river, but some people believed .that the building had been deliberately bombed by the enemy perhaps because they believed that bullion was being removed from there. On the 28th, the High Commissioner’s Office an nounced that private individuals and the banks other than the National City Bank might, up to noon of the following day, deposit their securities with the National City Bank in parcels together with affidavits of their contents for later checking; these securities were to be taken to Corregidor for safe-keeping, and, if it became necessary to destroy them, the affidavits would serve as a basis for issuing duplicate securities later. On the evening of the same day, Sunday, Dec ember 28, bank managers tvere called to Malacahan where they were instructed by one of the U. S. Treasury officials in Manila to turn over all their re maining cash and negotiable seczirities to the High Commissioner’s depzities at the Philippine National Bank and the National City. Bank the next day. They were, however, given no specific warning as to the imminence of the enemy occupation of the city. The Bank Commissioner, Pedro de Jesus, told one of the bankers present that he couldn’t sell any more dollars because the vaults in the Intendencia Building had been jammed by the bombing and he had therefore no place to put the pesos which he would be offered in exchange for the dollars. Early Tuesday, morning, between 1 and 2 o’clock (December 30), an armored car, accompanied by a Constabulary guard in a truck, called at the two banks for the cash and securities, including the clearing balances, all of which was sent to Corregidor. 428 October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 429 Low-cost Kilowatts from Worthington standardized power plants To give you the best power plant equipment and engineering at lowest cost . . . Worthington developed the "packaged” power plant—a complete electrical generating station. Now Worthington has extended this modern engineering from the 500-3500 kw range to standard units of larger capacities, powered by either steam or Diesel. 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WORTHINGTON THE SIGN OF VALUE AROUND THE WORLD Pumps Construction Equipment Engines Turbine-Generators Compressors Refrigeration As inter-island transportation was disrupted following the outbreak of the war, the branches of the various banks in the southern islands had no means of replenishing their cash. For this and other reasons, the Philippine National Bank branches were authorized by President Quezon to print emergency paper currency, much of which was used in paying the USAFFE in the field during the months which followed. Some of the Manila bank executives awaited the Japanese in their offices on Saturday morning, Jan uary 3. They were made to turn over the keys and the combinations of the safes and vaults to them, and were informed that an official of the Bank of Taiwan had been appointed liquidator. Calhoun of the National City Bank and two of his staff were exhibited down-town for an hour or so in an open truck before being taken to Villamor Hall. Subsequently, after their internment in Santo Tomas, a number of the bank men were taken out of the camp to their former offices to complete trial balances and give other information. On such occa sions they were generally treated with fair courtesy. The Gold Bullion.—On the 22nd of December, most of the gold bullion on hand in Baguio, about P2,000,000 worth, was shipped to Manila in an armor ed truck. It was desired to get this off to Corregidor for safe-keeping, and the same armored truck was at the pier on the morning of the 26th or 27th. But neither of the two ferry boats which plied between Manila and the island came in all that day, and it was a day of frequent air-raid alarms and of several bomb ings in the port area. Every time the siren blew, the heavily-loaded truck (the bullion was about half silver and weighed three tons) drove off for greater safety to the Luneta. It always took quite a little time for the heavy truck to get up any speed. During the day a lot of army gear accumulated on the pier, intended for Corregidor, and, in time, also a consi derable number of wounded soldiers. An army captain, hearing about the three tons of bullion, said, “If there are any three tons of cargo to go, it will be corned-beef and blankets!” In the end, however, a major communicated the tip that after dark the S. S. Don Esteban would come to the pier and would sail at midnight for the fortress. The bullion was got aboard and stored in the two de-luxe cabins on the deck. The ship arrived at Corregidor before morning and the gold was unloaded on the wharf. The man in charge went looking for the U. S. High Commissioner; and found him at breakfast with President Quezon.’ Mr. Sayre said there were no regulations to cover such a situation, but after consulting some of his ad visers he conceded that the gold could be placed in the Insular vault on the island. Note (1945) — According to General Wainwright ("General Wain wright's Story”, edited by R. Considine, Doubleday & Company), gold Btock certificates and other securities taken to Corregidor in December, 1941, were tnken to Australia by submarine and from there by ship to San Francisco where they were deposited in the Federal Reserve Bank. Paper currency wns burned on Corregidor, but a record of ownership was made for subsequent reimbursement. Some $17,000,000 in silver coin was boxed and sunk under 100 feet of water. The Japanese were unable to find this treasure and most of it was recovered after the war. Note (1946) — According to the annual report of the U.S. High Commissioner, the paper currency destroyed consisted of $2,741,225 in United Slates currency and P28,375,420 in Philippine currency. Of these amounts, $2,420,485 belonged to the Commonwealth Treasury, P27,374,000 belonged to Manila banks, and the balance to private individuals. The largest Bingle item of paper currency was one of P19,900,000 from the Manila Clearing House Association, which represented the balances of mem ber banks. This means that the free cash balances in the banks which were withdrawn in Philippine currency amounted to only P7,474,000, or 3.2% of the total currency in circulation. This belies the claim that issues of Japanese military notes wero necessary because of the lack of an ade quate currency. Claims Arising from Japanese Seizure of American and Allied Credits and Bank Deposits in the Philippines By Finley J. Gibbs Gibbs, Gibbs, Ch-.tidian & Quasha. INTRODUCTION WHEN the Japanese army invaded and occupied the Phil ippines at the outbreak of World War II, it interned the resident Americans, British, and other nationals of the United Nations and seized their property. This prop erty included: (1) tangible personal and real property of all sorts, such as houses, furniture, and cars; and (2) credits and bank deposits. Much of the tangible property was looted or damaged. Practically all of the credits and bank deposits were collected by the Japanese in wholly unsecured Japanese military notes. The Supreme Court of the Philippines has ruled that such col lection was valid and wiped out the deposits and credits in volved. These losses, which in many cases were of life savings and were more severe than losses to tangible property, were suffered only by Americans and their non-Filipino allies. Fil ipinos were not formally treated as enemies by the Japanese. The purpose of this memorandum is to set forth the re levant facts, law, acts of Congress, and equities with regard to these losses of credits and deposits in the hope of obtaining some redress or assistance through the United States Gov ernment. FACTS nr1 HE Japanese army entered Manila on January 3, 1942, A and immediately set up a Japanese Military Administra tion. Under this administration the Japanese established the “Office of Enemy Property Custody” the function of which was to take custody of the property and credits of Americans, British, and other non-Filipino allied nationals. On June 25, 1942, the commander-in-chief of the Japanese forces issued Military Ordinance No. 1 sequestering all pay ments due to citizens of the United States and to other nonFilipino allied nationals, and required that such payments be deposited in the Bank of Taiwan, Ltd., and the Yokohama Specie Bank, Ltd., to be subject to withdrawal only under licenses given by the Japanese Military Administration. (1 Official Journal, Japanese Military Administration, pp. 3638). On July 31, 1942, an order was issued requiring the liqui dation of the American, British, Dutch, and Chinese banks. The Bank of Taiwan, Ltd. was appointed as liquidator. Debt ors were ordered to pay to the Bank of Taiwan the principal and interest of their obligations by September 30, 1942. (Ad ministrative Ordinance No. 11). 430 These general orders were followed up by personal de mands made by the Bank of Taiwan with regard to debtors of the banks under liquidation, and by demands made by the “Office of Enemy Property Custody’’ with regard to debtors of individual Americans and allied citizens and their business concerns. Despite these orders and demands very few payments were made to the Japanese in 1942. In the meantime, the Japanese issued military notes — known colloquially as "mickev mouse” — and ordered that these military notes be accepted at par with Philippine pesos. (Official Journal, Japanese Military Administration, Vol. I, p. 47). This currency had absolutely no backing whatsoever and was issued by the Japanese army in payment for goods and property which it requisitioned. As time went on, these notes were issued in increasingly larger quantities, diminished in value, and drove the good Philippine pesos out of circula tion. By 1943 a serious deterioration in the value of tho military notes had already taken place. In 1944 the deterio ration progressed at a rapid rate until, toward the end of the year, this money was practically worthless. The estimated total circulation of "mickey mouse” currency was from P7,000,000,000 to Pl 1,000,000,000 as compared with a pre-war circu lation of Philippine currency of some P230,000,000, or an in crease of more than P2,750%. A study of the comparative value of the Japanese mili tary notes and the good Philippine pesos was made by a United States Government expert for the Philippine Govern ment and a scale was prepared which is now generally re cognized by the Philippine courts. The scale, which is knownas the Ballantyne Scale, is as follows: of December Value in military notes one Philippine Peso 1.00 1.00 1 94 J January February April May July September October November December January February March May July September October November December 19 4 5 Jnnunry February 4.00 5.00 6.00 9.00 12.00 15.00 20.00 25.00 30.00 40.00 60.00 90.00 120 .-00 None As the Japanese military notes decreased in value, debtors of American and other allied citizens and of the American and allied banks became increasingly willing and eager to pay their obligations which had been demanded by the Jap anese. Large debtors, in particular, made heavy payments in 1944 completely liquidating large pre-war obligations with this currency which they could then obtain at a nominal cost in good Philippine pesos or in property. Over P35,000,000 was paid to the Japanese by debtors on account of their obligations to the Americans, British, and al lied banks and to individual Americans, British, and allied nationals. Of this amount, 16% was paid during 1942, 40% in 1943, and 44% in 1944. All but 3% of the payments were made by Chinese, Spanish, Filipino, German, and Swiss citi zens. Sixty per cent of the payments were made by debtors owing over P100.000 each. Many of these debtors made their money by dealing with the Japanese. For example, a German citizen owed one of the British banks over P200.000. He paid small instalments on this debt until 1944 when he paid the entire balance due from the proceeds of a sale (P600,000) to the Japanese army of two compressors, which pre-war were woith P6.000. Some of the money collected by the Japanese on obliga tions owed to the liquidated banks was used to satisfy a small part of the obligations owed by the banks and thus the total loss to the liquidated banks was reduced. The individual American and allied creditors, however, did not have the be nefit of any such payments. «On October 4, 1943, the Japanese Military Administration issued an order entitled “Zai” No. 257 ordering all local banks — except the American and allied banks under liquidation by the Bank of Taiwan — to transfer to the Bank of Taiwan, as the depository of the Bureau of Enemy Property Custody, all deposits of Americans, British, and other allied nationals. Pursuant to this order, bank deposits totalling over P3,000,000 of some 2,000 American citizens and companies were trans ferred to the Bank of Taiwan. Although the Japanese order was issued in 1943 most of these deposits were not transferred until late in 1944 when the banks involved had huge amounts of “mickey mouse” currency in their vaults. The largest amount transferred was from deposits of Americans in the Philippine Trust Company. This was a bank and trust com pany which was wholly owned by the Archbishop of Manila and which held many small accounts, particularly of Amer ican army personnel and Spanish-American war' veterans. There is still some question as to whether these transfers were of currency or were merely bookkeeping transactions. In addition to credits and deposits of resident American and allied citizens and companies the Japanese collected drafts drawn through banks in Manila for merchandise shipped to the Philippines immediately prior to the war by American and allied export houses in the United States and allied countries. In January, 1943, the United States and the other gov ernments of the United Nations expressly declared that they intended to do their utmost to defeat the methods of dispos session practised by Japan and the other Axis powers. The text of the declaration read as follows: The Union of South Africa, the United States of America, Australia, Belgium, Canada, Chinn, the Czechoslovak Republic, the United Kingdom of Great Britain nnd Northern Irelnnd, the Union of Soviet Socialist Re publics. Greece. India, Luxemburg, the Netherlands, New Zealand, Norway, Poland, Yugoslavia, nnd the French National Committee: "Hereby issue n formal warning to all concerned, and in particular to persons in neutral countries, thnt they intend to do their utmost to defent the methods of dispossession practiced by the governments with which they are nt war against the countries and peoples who have been so wantonly assaulted nnd despoiled. “Accordingly, the governments making this declaration and the French National Committee reserve all their rights to declare invalid any transfer of. or dcnlings with, property; rights and interests of any descrip tion whatsoever which are, or hnve been situated in the territories which have come under the occupation or control, direct or indirect, of the governments with which they are at war or which belong or have belonged, to persons, including juridical persons, resident in such ter ritories. This warning applies whether such transfers or dealings have taken the form of open looting or plunder, or of transactions apparently legal in form, even when they purport to be voluntarily effected. "The governments making this declaration and the French National Committee solemnly record their solidarity in this matter.” The Philippine Government in exile, acting through Pres ident Quezon, expressly announced: "The Government of the Commonwealth of the Philippines adheres to this declaration and in so doing records its complete solidarity with the otller United Nations." (Official Gazette of the Philippine Common wealth, Vol. 41 May 1943, Washington, D.C. p. 19) When General MacArthur’s forces returned to the Phil ippines he issued a proclamation on October 23, 1944, de claring all “processes” of the Japanese Government in the Philippines to be null and void. Upon the liberation of the Philippines some of the debtors who had paid the Japanese assumed that their payments were void and proceeded to make settlements with American and allied creditors who then reopened their businesses. The large majority, however, claimed that their debts had been satisfied. As a result, litigation testing the validity of these payments was initiated in the Philippine courts by a number of the parties involved. The decisions in these cases in the lower courts were uniformly in favor of the creditors and depositors. The courts ruled that the collection of the credits and deposits by the Japanese was prohibited by the Hague Regulations and did not bind the creditors. The Philippine National Bank, a government-owned concern, after a decision against it in the lower court (Milne v. Philippine National Bank, Civil Case No. 71200, Court of First Instance of Manila), recognized the invalidity of the transfers of the deposits made to the Japanese and paid all of its pre-war American, British, and other depositors. The Bank of the Philippine Islands, the Philippine Trust Company, and the Monte de Piedad, which were the other local banks, involved, and Kvhich are owned or controlled by the Catholic Church, continued to insist upon the validity of the transfers and refused to pay their American and other allied depositors. The first case to reach the Supreme Court of the Philip pines was the case of Haw Pia v. the China Banking Cor poration (G. R. No. L-554). Although this case involved only a small amount of money it was argued as a test case by several of the leading law firms appearing as amici curiae. The Supreme Court, in deciding the case, recognized the principle that a belligerent, such as the Japanese, occupying another country, had no authority to confiscate private pro perty but ruled that the Japanese had the authority to se quester and liquidate commercial banks. It found that the Japanese did not intend to confiscate the credits of the banks and that the collection of such credits by the Bank of Taiwan 431 was valid. In subsequent cases, it ruled that the collection of private credits and the transfer of bank deposits to the Bank of Taiwan were also valid. As a consequence, all debtors who paid the Japanese and the banks which transferred their deposits — even those who paid in late 1944, when the American forces were already in the Philippines—were completely relieved of all further liabil ity. Most of them thus reaped a large profit represented by the difference in value between the good Philippine peso ant the “mickey mouse’’ currency. The American and allied citi zens, banks and business concerns, on the other hand, suffered a total loss of the amount of their credits and bank deposits. Some of the creditors argued that the debtors were un justly enriched by the validation of these payments and re quested the Supreme Court to at least revalue the payments according to the Ballantyne Scale but this plea was also de nied. 1 The Supreme Court advised the creditors and deposi tors to look to their own governments for redress. The Su preme Court stated: "But be thHt as it may. whatever miffht have been the intrinsic worth of the Japanese war-notes which the Bank of Taiwan has received ns full satisfaction of the obligations of the appellee's debtors to it, is ot no consequence in the present case. As we have nlrendy stated, the Ja. panese war-notes were issued as legal tender nt par with the Philippine peso, and guaranteed by Japanese Government 'which takes full respon sibility for their usage having the correct amount to back them up' I Proclamation of Jan. 3, 1942). Now that the outcome of the war has turned against Japan, the enemy banks have the right to demnnd from Japan, through their States or Government, payments or compensation in Philippine peso or U. S. dollars as the case may be. for the loss or damage inflicted on the property by the emergency war measure taken by the enemy. If Japan had won the war or were the victor, the property or money of said banks sequestrated or impounded by her might be retained by Japan and credited to the respective State of which the owners of said banks were nationals, as a payment on account of the ' sums payable by them as indemnity under the trenties, and the said owners ■were to look for compensation in Philippine pesos or U. S. dollars to their respective States. (Ttvnty of Versailles and other peace treaties entered at the close of the first world war: VI Hackworth Digest of International Law, p. 232). And if they cannot get any or sufficient compensation either from the enemy or from their States, because of their insolvency or impossibility to pay. they have naturally to suffer, as every body else, the losses incident to all ware." (Decision, Haw Pia vs. China Banking Corp., G. R. No. L-664, pp. 18-19). As a resJlt of this ruling, over 2,000 American indivi duals and American-owned companies lost credits and depo sits totalling over P5,000.000. This does not include creditors which were voluntarily paid before the Haw Pia decision, some of which payments are now being contested. If these credit3 are included, the total of American credits and deposits in volved amounts to over Pl5,000,000. Losses of British anti other allied individuals, companies, and banks total over P20,000,000. L .1 IV A LTHOUGH criticized from time to time by the courts ** and commentators, it is a recognized principle of inter national law that a government in time of war may seize and confiscate enemy property found within its boundaries. The U. S. Trading With The Enemy Act provides for such seizure although not necessarily for confiscation. The law is entirely different, however, with regard to the powers of a belligerent temporarily occupying the territory of another country during the course of a war. In such cases, because of the temporary and uncertain tenor of the jstay, and because practically all of the property in the occu pied country would be considered enemy property, the rule, which in the past has been accepted by the commentators and courts, has been that private property — except that especially adapted to war — must be respected and possession must remain with the owner. These rules were codified by international agreement in articles 46 and 53 of Section III of the Hague Regulations, entitled “On Military Authority Over the Terri tory of a Hostile State’’. "Private property cannot be confiscated by the hostile army." (Article 46.) "An army of occupation can only take possession of cash, funds, and realizable securities which are strictly the property of the State, depots of arms, means of transport, stores and supplies, and generally, all movable property belonging to the State which may be used for the operations of the war. "All appliances, whether on land, at sea. or in the air. adapted for the transmission of news, or fcr the transport of persons or things, ex clusive of cases governed by naval law, depots of arms and, generally, all kinds of munitions of war. may be seized, even if they belong Io private individuals, but must be restored and compensation fixed when peace is made.” (Article 63) It will be noted that Article 53 prohibits even the mere taking of possession of private property with certain limited exceptions. After the Civil War the United States Supreme Court had occasion to rule upon a case very similar to the liquidation of the American and allied banks in the Philippines. When the Union Army occupied New Orleans the commanding general set up a military administration which attempted to liquidate one of the local banks. After first stating that the general had no authority to make the seizure under certain U. S. sta tutes, the United States Supreme Court declared that a con quering power had no authority under international law to collect private credits in the occupied territory: "And it in by no means to be admitted that a conquering power may compel privnte debtors to pay their debts to itself, and that such pay ments extinguish the claims of the original creditor. It docs indeed appear to be n principle of international law that a conquering state, after the conquest has subsided into government, may exact payment from the state debtors of the conquered power, and that payment to the conqueror discharges the debt, so that when the former government returns the debtor is not compellable to pay again. This is the doctrine in Phillimoiv on International Law, Vol. 3. par. 12, Ch. 4, to which we have been referred. But the principle has no applicability to debts not due to the conquered state. Neither Phillimore nor Bynkershock, whom he cites, as serts that the conquering state succeeds to the rights of a private cre ditor." (Planter's Bank vs. Union Bank, 16 Wall. 483, 496-497; 21 Law. cd. 473, 479) Similar authorities exist as to World War I. (Mazzom Sisters, Court of Venice, Jan. 8, 1927, Annual Digest 1927-38, Case No. 384). As a matter of fact, no past precedent can be found in international law in which the courts of a vic torious country, such as the Philippines, have validated within their own territory the seizure of private property or credits by the defeated invading army. Although the U. S. Alien Property Custodian under the Trading With The Enemy Act is authorized to seize enemy property even in occupied countries, he has scrupulously res pected the Hague Regulations and has not vested any pro perty in Germany or Japan of German or Japanese residents. The Supreme Court of the Philippines, in making its rul ing in the Haw Pia case, quoted partly from the work on in ternational law of Professor Charles Cheney Hyde, who is considered one of the leading authorities on international law. When the Court’s decision was brought to the attention of Professor Hyde, he published an article criticizing the deci sion and stating that the Supreme Court had misinterpreted his work as well as the commentaries of other existing author ities. (See Philippine Law Journal, XXIV, No. 3, June, 1949.) Professor Hyde not only reiterated the above stated principles of international law but he also pointed out that the Japanese had violated international law by flooding the Philippines with “mickey mouse’’ currency in such wholesale quantities as to completely destroy its value and by thereafter collecting the credits of American, British, and allied nationals in this worthless currency. The issuance of the “mickey mouse” money was in effect an instrument used by Japan to loot the Philip pines. Professor Hyde noted that in other occupied countries in the Orient similar payments had been revalued. In France and, so far as is known, in other occupied European coun tries, such payments were set aside altogether. In France this action was taken expressly pursuant to the proclamation of the United Nations quoted on pages 5 and 6 of this me morandum. (See Ruling dated April 21, 1945, of French Na tional Liberation Committee.) So far as the Philippines is concerned, the decision of its Supreme Court in the Haw Pia case, upholding the seizures by the Japanese, is now the law2 and can no longer be ques tioned. As stated by the Supreme Court, the American credit ors and depositors can now look only to their own government for relief. ACTS OF CONGRESS PROVIDING RELIEF FOR WAR LOSSES THE Philippine Rehabilitation Act passed by the United A States Congress in 1946 provides for partial compensa tion for war damage to tangible property. The losses from the Japanese seizure of bank deposits and credits were, how ever, excluded from the Act in a general provision excluding all losses to intangible property. Furthermore, the Act prac tically destroys any chance of recovery from Japan on these claims by providing that any money or bullion received by way of reparations from Japan shall first be applied to rc‘Note:(—Under motion for reconsideration with regard to dollar credits. -Not-e; Subject to motion for reconsideration as to dollar credits. 432 imburse the United States for payments made under the Act (Tit. 50 App. Sec. 1756 USCA). The War Claims Act of 1948 sets up a War Claims Com mission and specifically provides for payment of: (a) cer tain wage claims of employees of federal contractors during their period of detention by the enemy; (b) ‘‘detention be nefits” to American citizens at the rate of $60 per month for the period they were imprisoned by the Japanese; (c) certain injury, disability, and death benefits; (d) claims of prisoners of war for failure of the enemy to furnish proper food; and (e) claims of religious organizations in the Philippine Islands for aid furnished to members of the armed forces of the United States and American citizens. The War Claims Act further provides that the War Claims Commission shall study all other types of claims arising from the war and report thereon to the President of the United States for submission to Congress. The act expressly states, however, that this shall not in any way bind Congress to make payment of any of these other claims. The War Claims Act establishes a fund designated as the ‘‘War Claims Fund” which is to consist of all sums received by the Treasury of the United States from Japanese and Ger man property vested in the United States by the United States Alien Property Custodian. The fund is to be applied to th<» claims payable under the Act and to such other purposes as may later be provided by Congress (Tit 50 App. 2012 USCA). The amount of the fund is estimated to be over $100,000,000. Under the Trading With the Enemy Act which was passed during World War I and amended during World War II, claims against the Bank of Taiwan and the other Japanese agencies which liquidated the credits and deposits can be filed with the U. S. Alien Property Administration or its Philip pine office, but the recovery is limited to the assets of these agencies which have been vested. These assets are so limited compared with the amount of the claims that the estimated recovery under this Act will be only 5%. EQUITIES 'T’HE equities of the situation are simple and striking. Those who suffered from the Japanese seizure of credits and bank deposits Were American, British, and other non-Filipino allied individuals and companies. Most of the bank depositors were of moderate means. Hundreds of them were American soldiers, officers and veterans who patronized the Philippine Trust Company. In most cases, the individuals involved — if not killed — were imprisoned or interned by the Japanese and suffered heavy losses in addition to the loss of their credits and deposits. Most of them also incurred heavy liabilities merely to keep alive and feed themselves while they were in terned. On the other hand, the debtors and the banks, ex cept the American and allied banks under liquidation, con tinued in business. Seventy per cent of the debtors consisted of non-Filipinos, principally Chinese, Spanish, Germans, and Swiss. As a result of the ruling of the Supreme Court, the debtors and banks were able to wipe out their pre-war obliga tions to American and allied nationals at a fraction of their pre-war value. Instead of suffering losses from the war they were enriched as a result of the war and at the expenses of their American, British, and allied creditors. Many of these debtors are now collecting war damage claims under the Philippine Rehabilitation Act which, as previously stated, excludes the American and other allied nationals from any recovery for their credits or deposits. Except for a claim under the Trad ing With the Enemy Act against the Japanese agencies involved, for which there is no hope of any substantial recovery, the depositors and creditors are without any existing remedy or provision for compensation. The Supreme Court of the Phil ippines has told them that their only remedy is through their own .governments. CONCLUSION T N view of the foregoing, justice requires that the United States Government provide some remedy to American citi zens for the compensation of these losses. Compensation could equitably be provided by: 1. Including these losses ns compensable losses under the Philippine Rehabilitation Act to be paid out of any additional appropriations which may bo made; or 2. Providing for the pnyment of these losses out of the "War Claims Fund” established under the War Claims Act of 1948. Philippine Rehabilitation Act.—At the time the Philippine Rehabilitation Act was passed there was as yet no decision by the Philippine Supreme Court as to how these losses should be treated. Now that the Philippine Supreme Court has de clared them to be war losses of the creditors and depositors and has informed the claimants that their remedy is only through their own governments, there would seem to be no good reason for now excluding such losses of American citizens from the Act. The severity of these losses to individual Amer icans was in many cases much greater than the loss of their tangible property. The underlying purpose of the Philippine Rehabilitation Act could be fully served by requiring that compensation for such losses be used for rehabilitation or in vestment in the Philippines. Furthermore, since the money appropriated for war dam age payments under the Act comes from American taxpayers it would be only fair that these losses which were suffered by Americans in the Philippines as a direct consequence of the war — and which actually resulted in benefits to other Phil ippine residents — should be compensated at least equally with the other war losses, if not given a priority. War Claims Fund.—As stated previously, the “War Claims Fund”, which consists of money covered into the U. S. Treas ury from Japanese and other enemy property vested by the United States Alien Property Custodian, will amount to over $100,000,000. Some of this money will be used for payment of the claims specifically approved under the War Claims Act, namely, wage claims, “detention benefits”, death and disabil ity claims, prisoner-of-war claims, and certain claims of re ligious organizations. The major portion of this fund, how ever, is not appropriated to any specific purpose but is im pliedly reserved for payment of other types of war claims which may be approved by Congress. Payment of the “detention benefits” under the War Claims Act was justified before Congress partly on the ground that the American civilians in the Philippines were deliberately misled by the U. S. State Department as to the imminent dan ger of war and thus had no opportunity to protect themselves by leaving the Philippines before the outbreak of hostilities. If American residents and businesses in the Philippines had been properly advised by their State Department as to the imminence of war, their is little doubt that most of them would have protected themselves financially by transferring their deposits and liquidating their credits. Thus, the justi fication for reimbursing American citizens in the Philippines for "detention benefits” would apply equally to reimbursing them for the loss of their credits and deposits. Furthermore, since these losses arose as the result of seizures by the Japanese Enemy Property Custodian of Amer ican property in the Philippines, it would be particularly ap propriate that such losses be compensated out of Japanese property seized by the U. S. Alien Property Custodian in the United States. In any event, since the Philippine Rehabilitation Act will siphon off most, if not all, reparations from Japan (Tit. 50 App. Sec. 1756 USCA), it is clear that unless Congress ap propriates funds for payment of these claims the only source from which they can be paid in the foreseeable future is the “War Claims Fund.” For the foregoing reasons, it seems only just that Congress appropriate funds and make provision for payment of these claims under the Philippine Rehabilitation Act or out of the “War Claims Fund”. “We oppose aggression; we do not oppose change. Indeed, we welcome and encourage change where it is in the direction of liberty and democracy...” — Secretary of State Dean Acheson. 433 The Philippine Position in the Economic World By Eugene H. Clay First Assistant to Ambassador Myron M. Cowen THE Philippines emerged as an independent sover eign nation, after the cruel and destructive pe riod of the Occupation, in one of the most troubled times of history. It needed help and the United States gave that help. The free market for Philippine commodities was continued for a definite period to give you the opportunity to adjust the eco nomy to normal world markets. Military assistance was provided so that an armed force adequate for internal security and national dignity could be established. War damage payments, the rehabilitation projects, war surplus and other assistance are pro grams to help you repair the damages of war and occupation. The Philippines, however, faced and still faces a tremendous task in maintaining and developing its true position in the economic world of today. Your Government and people fully appreciate that this task must be accomplished primarily by your own efforts. You know at the same time, however, that in accordance with the present close friendship be tween our nations the United States stands squarely with you. President Truman reaffirmed this deter mination in the joint statement of our Presidents on August 11, in which he reiterated the desire and in tention of the United States to render all feasible assistance to the Philippines. The successful accomplishment of this task vitally affects every individual in the Philippines. Only then can the nation be assured that the standard of living of the.people can be maintained and improved and that the business and occupations of all of you can prosper. Your country has done well and all of you have full right to be proud of the position of your nation in the world today. Ambassador Romulo has truly a magnificent grasp of international problems and his election as President of the Council of the United Na tions symbolizes what you have achieved. I have also found that your officials here, with whom I have been working on behalf of Ambassador Cowen, have a realistic and sound understanding of the problems of your nation. We have been meeting frequently with Secretaries Pedrosa, Mapa, and Balmaceda, Under secretary Neri, Governor Cuaderno, and the Honor able Jose Yulo. We are discussing and studying to gether the economic plans developed by the Govern ment and some of the economic problems of your na tion in an endeavor to further the cooperative efforts of our countries in the economic development of the Philippines. .We are trying to give them the full benefit of our experience in other countries and are learning a great deal from them. Our joint efforts and discussions at this time are pointed toward a very specific goal. We are for mulating recommendations on how best the desire and intention of the United States to render all feasible assistance can be implemented. The economic plans which have already been developed and the studies which have been made on the possibilities of further economic growth by your Government are of tremen• An address before the Manila Junior Chamber of Commerce, September 27. dous help and form the basis for discussions. The formulation of such recommendations nevertheless is a tremendous task, as we well know from our ex perience elsewhere in the world. We however, are making real progress and we can specifically assure you that the words of President Truman were not empty, and that, as again stated by President Truman, your President did not return from the United States empty-handed. The United States wants to help its friends who need assistance and the friendship between our coun tries is now unique and I hope it always will be. You must always remember, however, that the require ments for economic development must come primarily from you,—from your energy and from your resour ces. No one can or will do the job for you. You must remember, too, the vast demands on the United States throughout the world, that the resources of the United States are far from unlimited and that the American people have already shouldered a gigantic tax burden. Economic development is not a matter of miracles but of hard work, enterprise, and efficiency over an extended period of time. The best of economic pro grams are meaningless unless the people of the nation really give all of their efforts toward its implemen tation. In a democracy the people cannot be expect ed to make such efforts unless they fully understand and approve of what must be done and fully appre ciate what successful accomplishment means in their lives. This is where you, members of the Jaycees, have a direct responsibility. You and people of your age are the leaders of tomorrow. You must help ex plain and set an example for your nation. I know well that you are capable of shouldering this respon sibility. You are an intelligent, well-trained group of men and you have a burning desire to help your coun try and your people. Your good-will tour around the world, led by my good friends Monching del Rosario and Bert Villanueva, well illustrated your desire to understand the relationship of the Philippines to the world. Much of your efforts in the years since liberation have had to be expended in reestablishing the basic necessities of life. I am confident, however, that you are now prepared to move with full force in the development of the economic potential of your nation. No nation can live and prosper in the world to day in isolation. A nation’s economic strength de pends on its ability to produce and trade on equal terms with the rest of the world. A democracy, moreover, has a direct obligation to ensure that its people have the means and opportunity to produce at competitive prices and still maintain and improve their standard of living. You have all the basic assets that are required, —tremendous natural resources and an intelligent population. Money is of course needed. There is first the internal peso-cost of economic development. On the basis of present estimates, I consider that these costs can be easily met from the internal resources of the country. Remember that tax returns are now an 434 extremely small percentage of the national income in comparison with the United States and that the rate of private investment in productive enterprises is minute. Bank credits can also, I believe, be greatly expanded if a dynamic economic program is being implemented. There is, next, foreign-exchange requirements. The first source is, of course, your own foreign-ex change earnings, your present reserves, and additional payments to the Philippines which have already been authorized by the United States Congress. I hope that as much of this foreign exchange as possible will be used for productive imports and not dissipated for current consumption items. Foreign private capital is next, and I hope that every reasonable effort is made to attract a flow of such capital to the Philip pines. I believe, moreover, that you should not look entirely to the United States because considerable pri vate capital and equipment could unquestionably be attracted from another country which is a relatively few miles away from you. Loans from institutions such as the International Bank, with which an appli cation is now pending, is another source. We are con fident that if maximum utilization is made of internal peso resources and foreign exchange from the sources I have mentioned, any additional foreign exchange re quired would not present any problem. I am also con fident that technical assistance for economic develop ment can be readily acquired. The Philippines must be developed to a position of self-reliance in a relatively few years. We there fore hope that the nation will concentrate on projects which can be completed relatively quickly. We do not mean by this that long-term projects should not be undertaken, but we do consider that such long-term1 projects should not be relied upon as the solution, of your immediate economic problems. The first need is of course to make the nation re latively self-sufficient in food supplies which can be purchased by the people at low prices. Only then will the basis be established for the nation to produce at world prices with a developing standard of living, and only then can the foreign exchange earning of the na tion be adequate to purchase the necessities of life which cannot be economically produced within the Philippines. I believe that the use of selected seeds and plant materials and the application of the right kind of fertilizers, small scale irrigation, and better practices of cultivation offer a quick means of in creasing production. The small farmers must, of course also have guidance from an effective agricul tural extension system and must have inexpensive credit readily available to finance the use of modern techniques and methods. We hope that the tenancy problem will be satisfactorily solved so that these peo ple will have the required stimulation for maximum effort. Work in these fields of agriculture is, of course, already under way and I am sure will be great ly accelerated now that the basic requirements have been reestablished. The production of export crops, with improve ment of quality and reduction of costs, also of course has top priority. We believe that the owners of large estates have a great responsibility in this area and we consider that people like Jose Yulo are setting a mag nificent example in the use of modern methods and in improving the welfare of their workmen. The health of your people must be at a level which will enable them to give full effect to their intelligence and energy, and they must be thoroughly trained in modern me thods and techniques. In the export market for agricultural commodities, the Philippines faces a particular problem. You are surrounded by countries that either are producing or can produce the same agricultural commodities that are produced in the Philippines. These nations have a lower standard of living. As new markets are sought for such commodities, you can only compete with these nations and at the same time maintain and improve your standard of living by effective applica tion of the most modern methods and techniques of production. Industrialization must also be given every en couragement. No nation can expect to establish heavy industries except over a very extended period of time. We are confident, however, that this nation can economically produce many of the items that it now imports and that industries can be developed for export, particularly those which would utilize agri cultural raw materials and by-products and lumber. The mining potential of the country would scarcely appear to be touched, and the semi-processing of ores for sale in world markets would appear to be a fea sible and economical operation. This processing could be further expanded with development of hydro electric power and the basis could be established for more advanced industrialization at a later date. Industrialization as well as advanced agricultural expansion, however, requires capital. The people of the Philippines must be convinced of the advisability of investing their funds in industrial development and in modern agricultural methods. Foreign capital can scarcely be expected to be attracted here unless the Philippine people themselves demonstrate confidence in their own country by investing in the future. Your Government and your newspapers have repeatedly stressed the importance of such type of investment. Jaycees can do a great deal to help. You can campaign to sell the nation on its future and on the advisability and responsibility of investing funds for the expansion of the production of your country. New markets must be opened up in Europe and elsewhere for your present export commodities and those to be developed. Trade has been largely with the United States. There is a definite limit, how ever on the amount of some of your commodities that can be sold in my country while markets in other parts of the world remain virtually untapped. The recent devaluation of the pound and of other currencies is of course a factor in the opening up of new markets. A reason for such devaluation, as you know, was to reduce the cost of production of export commodities. With the anticipated reduction in the cost of these commodities, there should be a great stimulation of Philippine purchases from these coun tries. Your sales to these countries should of course be increased at the same time. Devaluation may de crease the cost of production of items similar to those produced in the Philippines, and, in the long run, could stimulate additional production in these areas. I am sure that the Philippines with its resources can meet any competition by the effective application of mo dern methods and techniques and still look forward, as does the United States, to the continued improvement of the standard of living. 435 Philippine Chamber of Commerce Program By Aurelio Periquet President, Chamber of Commerce of the Philippines At the annual meeting of the Chamber of Commerce of the Philippines held on July 30, Mr. Aurelio Periquet was elected President, succeed ing Mr. Gil J. Puyat, who ably headed the Chamber since its post-war reorganization in 1945. The Chamber was founded in 1903. Mr. Periquet had been Vice-President, and Mr. Olimpio L. Villacorta, a Director, was elected in his place. Mr. Pedro J. Ocampo was reelected Secretary-Treasurer. The other remaining mem bers of the Board are Messrs. Cornelio Balmaceda, Vicente Sabalvaro, Ramon J. Araneta, and Eugenio Padua. The newly elected members of the Board are Messrs. Juan J. Carlos, Francisco Dalupan, Fermin Francisco, Jose M. Valero, and Eduardo Z. Romualdez. Mr. Periquet was born in Balanga, Bataan, and has traveled widely. He has been engaged in the insurance business in Manila for nearly thirty years and is President of the Pacific Union In surance Company and Honorary Treasurer of the Manila Fire Insurance Association. 1H A V E been asked what will be my program of administration during my incumbency as President of the Chamber of Commerce of the Philippines. The question cannot but animate me into joyful introspec tion—to reminisce on the past activities of the Cham ber of Commerce of the Philippines. Since its organization in 1903, the Chamber has marked every year of its existence with achievements and has carved a noble niche of its own both in the national and international world of business. So much so, that its name as an organization is synomymous to the Philippines as a country. The administration of my predecessor in office, the young but brilliant business leader, Mr. Gil J. Pu yat, which lasted for four and a half years, is certainly a record of achievements. Presidents and Boards of Directors come and go and the good work done by past Presidents and Directors will remain as assets of the Chamber, in particular, and the whole Philippines, in general. There is, therefore, a continuity—a chain that links the past, present and future—and in conscious ness of the responsibility that has been entrusted to me by my colleagues, I am going to implement what has already been set in the past with an eleven-point program of administration during my term as Presi dent of the Chamber of Commerce of the Philippines, to wit: 1. I intend to make a sort of review of the re cords of the Chamber for the purpose of completing action on pending matters. Since Liberation, the activities of the Chamber have been manifold. Per haps little is known that it was the Chamber which initiated the organization of the Rehabilitation Fin ance Corporation. The recommendation for additional appropriation for war damage payments to fully com pensate, as much as possible, the ravages, destruction and havoc caused here by the last war is also another aim of the Chamber. One of the objectives of the trip of His Excellency, President Quirino to the United States is to secure such additional appropriation. But there are other matters equally important, which altogether initiated by us and forwarded to the powersthat-be are still held pending. I propose to urge action on these pending matters. 2. One of the most outstanding accomplishments of the Puyat administration is the holding here of the Regional Trade Conference in July, 1948. We have arrived at agreements and have endeavored to imple ment with follow-up work such agreements. I am reviewing the records of this conference, so as to push through with determined action things which are yet left undone or unfinished. Among them is the estab lishment of a Free Zone in the Port of Manila and the revival of the Tourist Trade. 3. I will enlist the cooperation of my colleagues in the Board of Directors of the Chamber. While it is true that the initiative to start discussion on any topics pertaining properly to the Chamber is of the members in general, I would like a more aggressive leadership by the Directors themselves. I am suggesting to them that each Director contributes a topic for discussion, properly falling within the jurisdiction of the Com mittee of which he is Chairman—at least one topic a month. i 4. The recurrent and perennial problem of the position of Filipinos in business, wherein we are still desperately in the minority, will deserve our atten tion. I am calling on the directors and the entire membership of the Chamber to formulate plans for increased participation of Filipinos in business. 5. The business community has been vocal in criticizing banking laws, which place our banks in straight jacket and prevent them from accommodat ing business on loans under more liberal terms. I propose to enlist the cooperation of the members so that suitable suggestions could be submitted to the Board for such reforms or amendments to the banking laws as will enable our banking institutions to be more liberal in granting of loans. 6. The ambitious industrialization program of the Government has already passed the blue-print stage. It is necessary that the implementation of such plans be made. In view, however, of the insuf ficiency of our funds, it is to be desired that a few industrial projects of the Government be selected for immediate implementation. I shall ask the assistance of the members who are technical men and conversant in the field of industrialization, to give sugestions as to what few industrial projects should be pushed through. I shall also interest and encourage the mem bers to undertake such industrialization projects as will be within their means and ability. 7. Anything that impedes free enterprise is ob jectionable. Government intervention has been de(Continued on page ^62) 436 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines From an Official Source SEPTEMBER 1 — President Elpidio Quirino states that he never has used and never will use his emergency powers except us to strictly necessary measures. "We are faced today with certain realities, not with ncademic con tingencies. and I reserve the freedom as head of the State to act, con sistent with democratic thought and practice, as I see fit in the interest of the public welfare. The stability and security of the nation is the paramount consideration.” The President appoints Judge Buenaventura Ocampo as associate justice of the Court of Appeals. The President authorizes the allocation of P471,643.37 for the construction of houses for officers and enlisted men of the Armed Forces of the Philippines at Camp Murphy. Felipe Buencamino, Jr. reports to the President that 30,000 cavans of rice will be harvested from the 700‘hectare area under cultivation by the Government in the Ala Valley, Cotabato, beginning the end of August, and that some 300 hectares there planted to mongos will be harvested in October. He states that with the aid of tractors some 1000 hectares a month will henceforth be put under the plow in the Ala Valley and some 500 a month at Maramag, Bukidnon, until the cul tivated area will reach 12,000 in the former region and 5,000 in the latter. Sept. 3 — Announced by Secretary of Public Works and Communications Prospero Sanidad that construction on thj Bonga irrigation system in the Ilocos region will soon be started. The system will be one of the largest in Northern Luzon with a main canal of 58 kilometers and 2 tunnels 1,700 meters in aggregate length. The system will place over 4,000 hectares of land under irrigation around Dingras and Laoag. September 6 — The President administers the oath of ofv fice to Jose E. Romero, newly appointed Minister to London, who is leaving 'Shortly for his new post. He will serve con currently as Minister to Norway, Denmark, and Sweden. The Cabinet authorizes the release of Pl,000,000 for sev eral flood-control project, including drainage in Manila, — the others in Pampanga and Bulacan, Pangasinan, Mindoro, and Antique. The Cabinet authorizes Civil Aeronautics Administrator Andres O. Cruz, who is leaving for Washington this week, to make representations with the U.S. Civil Aeronautics Admi nistration for additional technical and financial assistance for the Philippine civil aviation program. Sept. 7 — The President on behalf of the Government accepts a check for Pl,000,000 transferred to him by James Mcl. Henderson, Philippine Alien Property Administrator, re presenting a part of the proceeds of former Japanese pro perties sold by the PAPA. Deputy Auditor General Pedro M. Gimenez takes his oath of office as Acting Auditor General during the absence of Auditor General Manuel Agregado, now on official business abroad. Sept. 8 — The President leaves on the S.S. Arffu* on an electioneering trip to the Visayas and Mindanao. He is accompanied by Secretary of Education P. Langcauon, Social Welfare Commissioner A. A. Perez, Senators T. Cabili and E. Magalona, Generals M. N. Castaneda and A. Ramos, and members of his personal staff. Sept. 10 — Executive Secretary T. Evangelista, by author ity of the President, releases P310.000 for the construction of bridges in Batangas, Bulacan, Ilocos Norte, Laguna, Pampan ga, and Rizal. Sept. 16 — The Supreme Court after a rehearing of the executive emergency power cases, in a 6 to 3 decision, pro mulgated today, nullifies the Executive Orders on the budget and the election appropriations, the decision to take effect after 30 days. Chief Justice M. V. Moran, who at first de ferred his vote, this time voted with the majority. In the case involving the “existence of the emergency powers”, how ever, the old decision of 5 against the existence and 4 for the existence still stands, and this is not conclusive on an is sue which requires a majority of 6. Sept. 19 — Secretary of Finance Pio Pedrosa states in a radiocast: "We have succeeded in maintaining our dollar reserves at the safe level of about P668.000.000, more than enough to keep the value of uur peso stable and to meet all our standing commitments and obligations abroad. Don't believe all these alarming reports that our reserves are almost gone. It is not true." Sept. 20 — Malacanan announces release of P228,130.75 for the improvement of various commercial air navigation fa cilities at Baguio, Cebu, Davao, Iloilo, Laoag, Legaspi, Rosario (Cavite), Zamboanga, and Manila. Sept. 21 — President Quirino, in Capiz, hails the election of Ambassador Carlos P. Romulo as President of the General Assembly of the United Nations as “one more feather in the cap of the Filipino nation”. Under-Secretary of Foreign Affairs Neri states it is an— "indication of the increasing importance of the role the Philippines has nssumed in international affairs and reflects the decided shift of the world's attention to Asia and the Far East..." Sept. 23 — The President and his party return to Manila. Sept. 22 — The President sends the following message to Ambassador Romulo: "My heartiest congratulations. I am very happy and our people re joice with us over your election. Our increasing responsibility in our International relatione makes us all the more determined to be worthy of world confidence. I pray God that He give us light, strength, and vision to justify and fulfill our mission. You have fulfilled yours. I am proud ef It.” Sept. 24 — The President at a meeting of the Cabinet Instructs Secretary of Commerce and Industry Balmaceda, in his capacity as a member of the Board of the National Rice and Corn Corporation, to reduce the price of rice to P.90 a ganta, to take effect immediately. Announced by Under-Secretary of Foreign Affairs Neri that the President has designated Consul General Jose Melencio in New York as fifth member of the Philippine dele gation to the present session of the United Nations General Assembly. He also announces that the Thailand Government has designated Luang Bhadravadi as Minister to the Phil ippines; this official has occupied various diplomatic positions in London, the Hague, and Paris from 1929 to 1947, and served recently as director general of Eastern political affairs in the Thailand foreign ministry. Sept. 25. — The President, accompanied by Secretary of Interior S. Baluyut, senatorial candidates T. Cabili and L. Sumulong, and others, visits the “Huk country”, stopping briefly at Apalit, and then going on the San Fernando, Pampanga, and from there to Tarlac, Tarlac. Sept. 26 — The President returns to Manila after spend ing the night at Panique, Tarlac. He was prevented from going on the Cabanatuan, Nueva Ecija, because of a sprained ankle. Secretary of Agriculture and Natural Resources P. L. Mapa states in a radio address that the production of rice has risen from an all-time low of 37,000,000 cavans in 1945-46, 49,900,000 in 1946-47, 53,000,000 in 1947-48, and 56,620,000 in 1948-49, the latter figure being almost 3,000,000 more than the best pre-war production of 53,698,000. Prospects for a still larger harvest in 1949-50 are bright. He states also that present irrigation systems now water 725,000 hectares and that 22 other irrigation projects are under construction. The present area under rice amounts to 2,164,100 hectares as compared to 2,080,380 before the war. There are no less than 1,000 native varieties of rice which yield an average of only 25 to 30 cavans a hectare. Plant experts have been work ing on the improvement of some 50 varieties of these to a point where they yield from 50 to 120 cavans a hectare. The Department is now spreading their use. Of the 29,000,000 hectares of land in the archipelago, 19,000,000 are potential agricultural lands and of these only 11,000,000 are claimed as private property, leaving 8,000,000 hectares available for the landless. Sept. 27 — The President authorizes the payment of two months’ back-pay to pre-war government employees, the Phil ippine National Bank to advance the funds in the form of loans at a discount of 2%, the transaction being secured by the Governmer-.t’s back-pay sinking fund which accumulates at the rate of Pl ,800,000 a month. Last December one month’s 437 back pay was granted under the same conditions, in the amount of P3,520,920.64. Payment of the two months’ back-pay will probably begin on October 15 The President on the recommendation of the Under-Sec retary of Foreign Affairs and with the concurrence of the Cabinet authorizes the Surplus Property Commission to ex tend credit to the Republic of Indonesia for the purchase of certain surplus goods from the Commission. Recently the In donesian application was withdrawn because of certain re quirements of the Commission, and these will now be relaxed, the President being desirous of strengthening Philippine-Indonesian relations. The Office of Public Information, Malacanan, announces that the organization has been completed for a daily 30-minute broadcast at 10 a.m. of news of the day, at dictation-speed, over the government radio station, DZFM. Under supervi sion of the Radio Control Board, battery receiving sets have been distributed to remote communities and certain officials have been designated to transcribe and post the transcriptions on bulletin boards in public places. The Department of Edu cation is also encouraging schools in such localities to acquire receiving sets so that they may also make use of these broad casts. Sept. 28 — The Department of Foreign Affairs announces that the Philippines will open its first consular mission in In donesia about the middle of October with Vicente Pastrana as consul and Marciano Joven as vice-consul with headquarters in Batavia, the Netherlands Government having accorded these men provisional recognition. The Department of Foreign Affairs announces that the Korean Government has made an offer to sell apples to the Philippines either for cash or on a barter basis, Korea hoping for timber, coconut oil, and rope in exchange. The apples range in price from $4 to $7 a box of 150, weighing 42 pounds. month, the reserves having decreased only $1,600,000. Substantial amounts of dollars received from the U.S. Treasury to cover war-damage payments off-set most of the excess dollar disbursements made to cover the continuing unfavorable trade balance. The Central Bank has released the following sta tistics which had been compilled from the records of the Bureau of the Treasury and the Accounting Department of the Central Bank: MONEY SUPPLY* Banking and Finance By C. V. Grant Sub-Monager, National City Bank of New York COMPARATIVE figures of assets and liabilities of the Central Bank follow: (in thousands of Pesos) ASSETS International Reserve . #.. As of Jan. Si P714.969 As of July 30 P573.031 • As of Aug. 31 P569.809 Contribution to Interna tional Monetary Fund .. 30,000 30,000 30,000 Account to Secure Coinage 113,106 113,306 113,306 Loans and Advances ........ _ — 10,000 Domestic Securities ............ _ 10,354 18,287 Due from Treasurer of Philippines ....................... — — 12,569 Other Assets ....................... 19,320 23,627 24,090 P877.395 P750.318 P778.061 LIABILITIES Currency: Notes ............... P621,521 P505.179 P502.949 Coins ................ 73,035 74,112 73,935 Demand Deposits: Pesos .. 169,351 116,269 145,048 Dollars _ 11,637 ♦ 11,700 Securities Stabilization Fund ................................ 2,000 2,000 2,000 Due to Int’l Monetary Fund — 22,499 22,499 Due to Int’l Bank for Reconstruction and Development..................... — 2,392 2,392 Other Liabilities................. 1,488 2,262 3,092 Capital ................................ 10,000 10,000 10,000 Undivided Profits ............. — 3,968 4,446 P877.395 P750.318 P778,061 * Note: The Demand Deposit liabilities in U.S. Dollars are deposits of the Treasurer of the Philippines which are temporarily being kept in foreign currency. These amounts are included on the asset side as part of the International Reserve. The figure for the International Reserve of the nation as released in the August 31st report of the Central Bank showed little change from the previous End of Month 1948 Jnnunry Februnry May'* July September October November December 1949 January February April May Notes in Cir culation Demand Deposits Manager's Deposits Other Cashier's of Nat'l Savings Time Checks, etc. Total Treasurer Deposits Deposits 551 541 539 542 618 626 521 633 540 566 568 576 442 454 485 472 445 593 640 597 611 621 607 6 999 45 6 1,001 30 7 1,031 25 6 1,020 63 6 969 84 7 1,126 57 6 1,167 11 6 1,136 62 6 1,112 74 5 1,171 43 6 1,186 45 11 1,194 22 219 18 221 20 220 19 218 19 218 20 221 20 225 20 226 21 230 21 230 21 228 21 227 22 672 671 670 588 552 536 July (tentative) 527 617 589 556 568 540 645 522 7 1,196 16 6 1,166 16 7 1,133 17 1,163 17 6 1,107 16 6 1,087 20 6 1,054 19 236 23 236 24 236 27 236 28 237 28 239 30 240 80 * Money supply consists of the peso demand deposit) government deposits and overdraft lines. currency issued minus cash in banks; plus liabilities of banks, excluding) the national inter-bank deposits, but including unused The announcement of the depreciation of ster ling received here early in the morning of September 19 had little immediate effect on the local business and financial communities. However, as a result of the 30% depreciation in sterling currencies, the pro ducts of the soft-currency areas should be in a con siderably better competitive position vis-a-vis “dollar area” merchandise. On the other hand, it will be come more costly for sterling area countries to pur chase with their depreciated currencies products of the dollar areas. The new rates for the various currencies re valued as a result of the .devaluation of the pound sterling follow: Australia — pound ................................ $2.24 Belgium — franc .................................. .02 Burma — rupee ............................................. 21 Canada — dollar .................................. $ .91 Ceylon — rupee .............................................. 21 Denmark — kroner ............................... .1450 Egypt — pound ..................................... 2.87 Finland — mark ............................................ 00431 France — franc ............................................. 00285 Greece — drachma ......................................... 000066 Hongkong — dollar ............................... .1750 Iceland — kronur .......................................... 106 India — rupee .................................................21 Indonesia — guilder .......................................2635 Iraq — dinar ......................................... 2.80 Ireland — pound ................................... 2.80 Italy — lira .....................................................0016 Luxembourg — franc ....................................02 Malaya — Straits-dollar ..............................3250 Netherlands — guilder ..................................2635 New Zealand — pound ......................... 2.80 Norway — kroner ..........................................14 Portugal — escudo .........................................034965 South Africa — pound ......................... 2.80 Sweden — kronor .......................................... 193376 United Kingdom — pound ................... 2.80 For prime business the banks are quoting Tele graphic Transfer 201.25 selling and 200.625 buying for spot exchange. 438 Stock and Commodity Markets By A. C. Hall A. C. Hall Company August 20 to September 23, 1949 New York Stocks. — Important events of the past month have had little effect marketwise. In chronological order, the first big news was the report of the Steel Fact Finders which was more favorable than anticipated. This caused a couple of days’ advance, with emphasis on the steel issues, be fore profit-taking halted the forward movement. Over last week-end came the news of sterling de valuation, which resulted in only fractional losses to the list. The following day, however, there was a sharp break on the overnight threat of a steel strike together with a coal strike against the southern pro ducers. Since then, on an agreement for a further six days’ truce in the steel industry, the market has quite easily recovered the lost ground. With the exception of a few industries with im proved earnings, most first half-year statements are not comparing favorably with a year ago, but the market has long anticipated this factor and pays lit tle attention. Market fluctuations during the period, as mea sured by the Dow Jones Closing Averages, were as follows: Industrials .... Rails ............... Utilities ........... Aug. 19 High 181.16 183.29 46.84 47.78 36.67 38.19 Low Sept. 23 Change 177.75 181.30 Up .li 44.97 47.78 Up .94 36.47 38.19 Up 1.52 Among the best-acting groups during the month were Chemicals, Gold Minings, Oils, Tobaccos, and Utilities. Autos and Steels were fractionally higher but Mail Orders were easier, reflecting their current lower-profit outlook. As in recent months, high-grade common stocks have continued in good demand, and market services are generally stressing the advisability of quality in commitments. It is too early as yet to assess the longer-term effects of devaluation by the sterling block, but the market action in Wall Street indicates it to have been no surprise. While history continually repeats in broad outline, time and circumstances combine to al ter the details. It is now emerging that the change in value of the currencies in question is not to be a straight 30% cut across the board. A number of commodities in which there is little or no competition are to have their sterling prices adjusted to bring in as many dollars as formerly, while other exports, in a poorer competitive position, will be able to quote lower prices by virtue of the lower exchange rate. From the viewpoint of this column, and provid ing food for thought to investors, perhaps the most important development so far in the devaluation pic ture, is the failure of British industrial shares to re spond to the monetary change. On September 16, Reuters London Industrial Share Index stood at 126.1, arid today it is at 124. The implications are that in vestors apparently have no confidence that higher company profits will result from the cheaper pound. Commodities. — Acreage allotments for 1950 wheat production are fixed at approximately 69,000,000 acres compared to 83,000,000 acres a year ago. There have been large purchases by C.C.C. recently and the cash position has improved; December Chica go Wheat is quoted at $2.12*/2compared to $2.03*4 a month ago. In Corn, while the cash market has turned easier, country holders are unwilling sellers and will use all available storage to participate in the loan; December Chicago Corn is quoted at $1.153/8 against $1.13*4, last month. Cotton crop-reports are generally favorable, and demand from Worth Street is good, but devaluation was responsible for a modest decline during the past week; New York December Cotton closed at 29.64 cents compared with 29.87 a month ago. In domestic sugar the quota was in creased by 250,000 tons with little or no effect on prices. At current level the demand will easily ab sorb the increase. New York November No. 6 Con tract closed at 5.52 cents from 5.36 last month. Manila Market. — In the mining section, follow ing early weakness, sentiment improved considerably in sympathy with an advance of almost 10% in the price of gold in the local free market. Latterly, devaluation of sterling caused sharp advances in gold shares in other parts of the world and also had a firming effect on the free gold price, but our market has shown no ability to respond to these developments. It is to be inferred, therefore, that the primary concern of local investors at present is with the con fused domestic economic and political picture. The decline in the value of the pound and other currencies is interpreted as bearish to Philippine exports, with the exception of sugar. The continuing unfavorable balance of Philippine payments is being given much publicity in the press, is generally considered to pres age early drastic cuts by the Import Control Board, and is upsetting to local merchants. It is too early yet for the anticipated seasonal monetary expansion to be felt, with a result that credit continues tight. In view of these circumstances, neither buyers nor sellers are showing any interest at the moment, and trading consists principally of small necessitous liqui dation in an unwilling market. In the Commercial and Industrial Section, de mand for sugar shares continues with offerings light. San Miguel Brewery was easier on the cut in soft drink prices. Commercial Shares 439 Over-the-counter business in mining stocks in cluded 28,000 shares Benguet Consolidated between high P4.45, low P4, and closing sales at P4.40. There was also business in Eastern Development at P.004, Philippine Iron Mines Common at P26, Philippine Iron Mines Preferred at P9, and Taysan “A” at 10 centavos. In commercial issues 1,000,000 shares Consoli dated Investments were traded at P.0075 and P.01, and business was reported in Philippine-American Drug (Botica Boie) at P135, and San Miguel 87° Pre ferred at P102 and P103. Credit By W. J. Nichols Treasurer, General Electric (P.I.) Inc. THE Association of Credit Men has reoently put into effect a new service whereby the names of accounts on individual members’ books over. 90 days past-due, are collected and compiled into one listing for the private information of all reporting. This new service should be of considerable value to credit managers who wish to know which of their accounts should be most carefully watched. When a customer is in arrears with only one creditor it is often not too serious, but when he begins to get behind in his payments on several accounts it is a sure sign of trouble. The Association now numbers 66 members. New devices to increase the scope of its activities are continually being investigated. A project is now un der way to compose in booklet form a handy reference guide containing information useful to business houses operating in the Philippines. The digest will include among other things hints on how to expedite transactions with government agencies, up-to-date information as to sales and other tax requirements, customs clearance regulations, and data on other matters pertaining to every-day commercial dealings. The next general meeting of the Association will be held on Wednesday, October 19 at 6:00 p. m. and will be followed by dinner and entertainment. A short talk on some topic of interest to credit men will fea ture the meeting and a large proportion of the mem bers are expected to attend. Insurance Victor H. Bello Supervisor, American Foreign Insurance Association THE signing of Executive Order No. 259 by Pres ident Quirino has at long last estalished a Fire Prevention Board whose principal function will be to apply every means at its command to lessen the mounting cost of fires and loss of life therefrom. The Chairman of this Board as appointed by the Philippine Government is Secretary of Interior Sotero Baluyot. In turn, respresentation on the Board is divided among five so called Groups each with its own Chairman. These groups give the widest re presentation possible not only to governmental bodies but to technical, business, and civic groups. Fire insurance companies form their own group, Group Four with Mr. L. P. Ralph, Chairman of the Manila Fire Insurance Association, as Chairman. Prior to a general meeting of the Fire Preven tion Board, each Group at the present time is holding its own meetings for the purpose of drawing up an agenda which will eventually be the basis of dis cussion and implementation by the Board. The Fire Insurance Company Group at its first meeting contributed the following suggestions for in clusion in the agenda at the next general meeting of the Board. 1. Enforcement of Building Codes. (a) Consider practicability of having Building Permits and Certificates of Final Inspection approved by the F.P.B. before issue; (b) Consider practicability of Building Permit No. being shown in Fire Policies covering same. 2. Cut off Electrical Installations when con demned. (Note: From the lists received by the Manila Fire In surance Association, it would appear that there are a consider able number of faulty installations in operation and causing constant danger.) 3. Arson. (a) Revision of Arson Law; (b) Simplification of judicial procedure; (c) Cooperation with the Manila Fire Investigating Com mittee and similar organizations. 4. Elicit the cooperation and assistance of: (a) National Fire Protection Association (U.S.A.) (b) Fire Protection Association (England) (c) Order, and possibly distribute, literature by the above bodies. .... 5. Maintain Fire Department out of the follow ing taxes paid on insurance policies: (a) Premium Tax .......... 3% (One to three percent) (b) Stamp Tax .............. 1%% (c) Fire Department Tax Vzr/o This Column views the organization of the Fire Prevention Board as a distinct step forward in the ef fort to solve a problem which has caused concern not only to the Philippine Government but to the entire population of the Philippines. But it is only an ini tial step and the progress of this newly founded Fire Prevention Board will depend not only on the inte rest and talent applied by its members, but also on the cooperation given it by all governmental bodies and the general public. Subscribe to the Journal and be assured of a reserved copy 440 October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 441 Electric Power Production Manila Electric Company System J. F. Cotton Treasurer,. Manila Electric Company 1949 1948 January......................... 33 745 000 27 301 000 February....................... 31 110 000 26 021 000 March............................. 34 776 000 26 951 000 * April.............................. 33 048 000 26 871 000 L O May................................ 34 453 000 28 294 000 w June............................... 34 486 000 29 216 090 £ July................................ 35 726 000 31 143 000 T August........................... 35 394 000* 31 993 000 September...................... 35 790 000** 32 012 000 October.......................... 33 943 000 R November...................... 32 661 000 O U December....................... 35 104 000 R ___________ S TOTAL ........................... 361 510 000 • Revised •• Partially estimated Output in September set a new record by a small margin. There was an increase of 3,788,000 kwh, or 11.8r< over September, 1948. The rate of increase during the first 9 months of 1949 has been considerably less than in the same period of 1948. In September, 1948, ouput was 17% over the preceding January, whereas in 1949, Sept ember was only 6% above January. It begins to ap pear evident that the future rate of increase in out put will continue to be moderate. It should be borne in mind that there is still a power shortage which will continue until the new 50,000 kw Rockwell Station is completed toward the end of 1950. During the latter half of September it was necessary to cut one or two circuits nightly be cause of overload. Unless there is voluntary ration ing of electricity during the hours of 5 p.m. to 9 p.m. it will be necessary to cut some circuits every night. Real Estate By C. M. Hoskins (0/ C. M. Hoskins & Co., Inc., Realtors) PURCHASES of real estate in Manila totalled P3,668,662 during the month of September, as compared with P2,228,597 for August. Mort gages recorded in September aggregated P5,094,415, compared with P4,924,841 for July. Cumulative totals of sales for the first 9 months from 1946 were as follows: January-September 1946 P32,625,806 1947 54,793,978 1948 44,015,210 1949 28,975,426 Sales in the suburbs recorded in September were 1*3,786,671, slightly higher than the Manila figures for the same month. Quezon City accounted for TYPING EIGHT HOURS A DAY IS NEVER FUN. . . GIVE HER A BREAK, AND INSURE TOP PRODUCTION AT MINIMUM COST AND TIME . . . SMART EXECUTIVES INSIST ON REMINGTON RAND KMC TYPEWRITERS, THE FIRST NAME IN THE BUSINESS WORLD FOR THE PAST 76 YEARS. . . ORDER ONE TOD AY... I TAYLOR PACIFIC (Phil ) LTD ATKINS KROLL I CO.. I NC .-Gen.Mgrs. 124 MYERS BLDG.,PORT AREA’Tel.2-94-67 REAL ESTATE SALES IN MANILA, 1940-1949 Prepared by the Bureau of the Census and Statistics Note: A large percentage of J945 sales and a diminishing percentage of .1496 sales, re present Japanese Occupation transactions not recorded until after liberation. January . February , March . . April . . . May . . . .June . . . July . . . August . . September October . . November December Total . . 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 P17,974,844 PIO,647,285 P22,890,133 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 (?) 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 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 P45,537,914 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 1949 P 3,965,420 2,701,668 3,362,635 3,677,630 4,253,395 2,793,217 3,019,784 4,924,841 3,668,662 P32,367,252 Pl,897,454 of the suburban sales, or about one-half of the total. Owners of commercial properties are somewhat concerned over the threat of broader import control restrictions, fearing that if wholesale and retail mer chants dealing in imports are further restricted, many firm may be forced out of business. Apartment owners are also wondering whether more import con trol will cause an exodus of foreigners. As changes in the control regulations are still under study, the reaction of real estate owners seems to be one watch ful waiting. In general the tone of the real estate market is cheerful. Land values continue firm at about last year’s transaction levels. Buyers are plentiful with a greater tendency to bargaining. Port of Manila By Madox Brown Luzon Brokerage Company THERE has been a decline in waterfront activity during the past month proportionate to the drop in incoming cargo, due mainly to the re strictions of the Import Control which came into ef fect as from the beginning of the month. The num ber of vessels putting in at the piers has slackened off considerably and as a consequence the volume of business has shown a marked decrease. The falling curve of the graph can be gauged ap proximately in a comparison of the past three months with regard to total arrastre charges, marking 20% of the gross collection of the Philippine Ports Termi nal, which are as follows: June .......................................................... P173,103.80 July ........................................................... 164,143.65 August ....................................................... 163,037.07 Paradoxically, however, the total tonnage for August shows an increase over that of July. A breakdown of the figures shows: July Total tons handled on piers ................. P144,821.735 Total tons handled at shipside ............. 35,426.738 Total tons for July ............................... 180,248.473 August Total tons handled on piers ................. Pl57,903.429 Total tons handled at shipside .............. 36,502.029 Total tons for August ........................... 194,405,458 The apparent discrepancy in these figures can be explained in the fact that they include the amount of gasoline, kerosene, oil, cement, and rice coming into the country. The actual amount of purely commer cial cargo, however, definitely shows a decrease. As against the falling off in volume of business handled along the waterfront, there has been a decid ed improvement in handling conditions on the piers. Congestion, which has been the main bugbear in the past, it gradually being cut down and the work on the docks has been correspondingly easier. The im provement has been most noticeable on Pier 5, on which the greatest bulk of cargo is now being dis charged since Pier 13 has been virtually closed down for repair. One shed has already been completed on Pier 5 and work has been started on the second shed. One-way traffic has been instituted and cargo is be ing shifted at a faster pace now that the snarled-up .congestion of trucks has been brought under control. Work is coming on fast on Pier 9, which is pre sently under construction. It is understood that this pier will be ready to start operating by the end of the year. Pier 13 is presently under demolition and will be rebuilt entirely, the same as Pier 9. At the present time, only one ship at a time is allowed alongside this pier for unloading and loading. LABOR relations along the waterfront have been moderately peaceful during the past month. There was a short strike of the Checkers, which for tunately lasted only half a day. The case was im mediately referred to the Court of Industrial Rela tions, which ordered the men back to work. The point at issue involved the matter of payment, the steamship companies desiring to pay the men indivi dually while the Union insisted on the Checkers beingpaid through the Union. The question is still up for arbitration and no definite ruling has as yet been is sued. ONE bright feature has been the result of the campaign instigated by the Philippine Chamber of Commerce aimed at getting an improvement in the quality of packing for incoming cargo, especially car go coming from the United States. This campaign had its origin in the visit of several representatives of the San Francislo Chamber of Commerce to Manila last year for a trade conference held under the aus pices of the Philippine Chamber of Commerce. Among other issues decided at this conference was 442 October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 443 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 1937 1 1938 1 1939 1 1940 1 1941 1 1945 I 1946 1 1947 1 1948 1 1949 1 (Value) |- (Value) | (Value) | (Value) | (Value) | (Value) | (Value) | (Value) | (Value) | (Value) | (Value) January . P 540,030 P 426,230 P 694,180 P 463,430 Pl,124,550 P 891,140 P — P 1,662,245 P 3,645,970 P 6,571,660 P 4.807.320 February 720,110 479,810 434,930 1,063,950 1,025,920 671,120 467,790 — 2,509,170 3,270,150 3,398,910 6,827,005 7,286,630 March . . 411,680 396,890 1,300,650 662,840 641,040 — 3,040,010 7,498,560 8,100,700 April . . 735,220 659,680 770,130 1,029,310 962,420 408,640 462,020 3,125,180 8,295,640 5,564,870 7,370,292 5,558,245 May . . . 400,220 670,350 1,063,570 1,139,560 809,670 740,510 335,210 1,496,700 3,964,460 8,570,410 5,070,380 June . . . 827,130 459,360 754,180 542,730 418,700 . 2,444,070 3,904,450 5,898,580 10,217,840 4,809,250 July . . . 302,340 691,190 756,810 495,910 357,680 609,920 1,741,320 1,418,360 3,062,640 9,875,435 7,771,487 4,601,450 August . . 368,260 827,660 627,790 622,050 661,860 306,680 4,889,640 7,428,260 7,568,950 4,150,280 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 4,952,660 October . 663,120 971,780 718,190 645,310 738,700 699,040 639,030 4,630,550 6,747,240 7,088,283 5,368,800 November 460,720 320,890 972,310 461,580 485,100 315,930 1,364,310 4,373,390 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 Annual 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 P82.792.569 P49,336,915 Average P 511,229 P 627,557 P 773,‘380 P 754,438 P 686,205 P 474,356 P 1,015,513 P 3,960,575 P 6,158,937 P 6,899,381 P 5,481,879 the decision to interest exporters in the United States in improving the packing of merchandise sent to the Philippines. According to various advices received from the Secretary of the San Francisco Chamber of Commerce, the campaign has been pushed in the United States and some apparently good results have been obtained. A questionnaire is presently being circularized among local customs brokers and local importers with the idea of determining whether there has been any resultant improvement in packing. Judging from the answers that are beginning to come in, the results are in the main satisfactory. The efforts of the Philippine Chamber of Com merce in this direction are to be highly commended. The type of packing for merchandise being sent here from the United States has been totally inadequate to meet the conditions prevailing on the piers since the war. It was especially noticeable that the type of packing for merchandise coming from the United States was far inferior to the packing that emanated ATLANTIC, GULF & PACIFIC CO. OF MANILA FOR 48 YEARS THE GREATEST NAME IN ENGINEERING AND CONSTRUCTION ENGINEERS CONTRACTORS MANUFACTURERS SPECIALIZING IN THE FABRICATION AND ERECTION OF BRIDGES, TANKS AND BUILDINGS Operating : MACHINE SHOPS FOR CONSTRUCTION AND REPAIRS FOUNDRY FOR CAST IRON, BRASS & BRONZE STEEL PLATE & STRUCTURAL STEEL SHOPS MARINE REPAIR SHOPS WOOD PRESERVING PLANT Distributors tor: Allen-Bradley Company American Blower Cor poration Armco International Cor poration Armstrong Machine Works Chain Belt Co. of Mil waukee Cherry - Burrell Corpora tion Coffing Hoist Company Dempster Brothers, Inc. Dodge Manufacturing Company Fairbanks, Morse & Co lne. Firth-Sterling Steel Com pany Gardner - Denver Com pany Gar - Bro Manufacturing Company Johnson Service Com pany Lincoln Electric Com pany McCray Refrigerator Com pany Marion Power Shovel Company Mystik Adhesive Pro ducts Pioneer Engineering Works, Inc. Smith Welding Equipment Corp. Staples & Pfeiffer Tube Turns, Inc. Walsh Refractories Cor poration Western Brass Works Western Rock Bit Mfg. Co. York Corporation MERCHANDISE SALES DIVISION Robert Dollar Bldg., Muelle del San Francisco & 23rd Street, Port Area, Manila Tela.: 2-83-64 • 2-84-82 EXECUTIVE OFFICES • ENGINEERING DIVISION STRUCTURAL & MACHINE SHOPS Barrio Punta, Santa Ana, Manila Tela.: 6-75-31 • 6-75-32 • 6-75-33 444________________■ AMERICAN CHAMBER OF COMMERCE JOURNAL____________October, 1949 from Europe, and especially Great Britain. The per centage of smashed and Bad Order cargo arriving from the United States was out of all proportion to that coming from the European countries. As a direct consequence, there was a very high rate of pilferage of this merchandise and an unne cessary loss of time and money was imposed on the local importers. Added to which, laborers on the piers worked under insuperable difficulties in their endeavors to save as much of the broken cargo as pos sible for the unfortunate importers. With an im provement in packing, the pilferage on the docks will be cut down greatly and at the same time work will be vastly simplified. At the time of writing, speculation is rife along the waterfront as to the possible effect of the deva luation of the Pound Sterling on local imports and ex ports, but it is obviously too early to be able to ha zard any kind of an accurate guess as to what the ef fects will be. A crystal ball might be of some help, but incoming cargoes have so far been singularly lacking with regard to this particular commodity. Ocean Shipping By F. M. Gispert Secretary, Associated Steamship Lines THE general trend of increased total exports was maintained during the month of August, as compared with August last year, due mainly to an increase in ore exports over last year. Ninety-seven vessels during last August lifted 162,829 tons, as against 84 ships and 107,825 tons during August last year. Exports of the main commodities during August of this year, as compared with the same month last year, are as follows: fecc Alcohol .................. 1.94 9 27 tons 1W 108 tons Coconut, desiccated . 8,090 ” 8,801 ” 3,095 ” Coconut oil ............ Concentrates, 5,300 ” copper ............... Concentrates, 2,924 ” 127 ” gold .................... 520 ” 41 ” Copra .................... 62,190 ” 37,114 ” Copra cake/meal .. 6,541 ” 2,215 ’’ Embroideries ........ 133 ” 138 ” Empty cylinders . . 235 ” 244 ” Fish, salted — dried 43 ” 3 ” Furniture, rattan . 251 ” 511 ” Gums, copal ......... 50 ” 86 ” Hemp .................... 33,108 bales 32,402 bales Hemp, knotted .... 14 tons 1 tons Household goods .. 166 ” 97 ” Junk, metal .......... 380 ” 8,557 ” Kapok ................... 25 ” 74 ” Logs ....................... 3,497,563 board 1,072,748 ” feet 1,241,330 board 1,651,839 ” Lumber ................. Molasses ................ 504 tons _ Ores, chrome ........ 26,000 ” 15,500 tons ” iron ............ 25,052 ” — ” manganese 1,000 ” — Pineapples, canned. 3,976 ” 1,017 ” Rattan, Palasan .. 28 ” 179 ” Rope ...................... 288 ” 362 ” Rubber .................. 71 ’’ 146 ” Shells .................... 34 ” 25 " Skins, hides .......... 41 ” 18 ” Sugar, raw ........... 3,398 ” 15,105 ” Tobacco ................ 319 ” — ELECTRIC LOAD HANDLINGCorner Tacoma & Second Streets, Port Area, Manila Telephones: 2-67-47, 2-68-48 & 2-67-59 WORKS Branch nt B A C O L O D, Occidental Negros Many users report savings as high as 50 in their handling costs — thanks to P&II Ilevi-Lift Hoist. These wide-awake businessmen take advantage of electric power for quick lifting. . . carrying. . . lo wering and placing of heavy loads — up to 15 tons — all without rehandling. Why not sec how you can make such savings in time and money? See your local dis tributors. The P&H Hen-Lift • Capacities up to 15 tons. • Operates on hook, jib or trolley. • Available for AC or DC current. ELECTRIC HOIS1 Main Otfcw and PItnl: Milwaukee 14. Wb.. U.S.A. October, 1949 ______ AMERICAN CHAMBER OF COMMERCE JOURNAL 445 Vegetable oil products ............ Transit cargo ....... General merchandise .... 50 282 1,222 202 141 3,166 Mining By Chas. A. Mitke Consulting Mining Engineer August Production:— Acoje Mining Co..................... Atok-Big Wedge ..................... Benguet-Balatoc ..................... Consolidated Mines ............... Mindanao Mother Lode.......... Misamis Chrome ..................... Surigao Consolidated ............. Lepanto Consolidated ............ 8,624 191,250.00 1,424,700 lbc. cu ) 2,068 oz. gold ) Tons Value 5,500 165,000.0# 12,534 361,839.00 49,936 711,900.e0 15,000 303,000.00 9,900 304,636.76 527,250.00 EVERYONE, from the highest government official down to the smallest businessman, is exercised over the all-absorbing topic of how to balance exports and imports in order to conserve the dollar reserves of the country. The main solution offered, so far, is to curtail imports, but as everyone knows, such a procedure can be carried to the vanishing point; that is, if exports continue to decrease and imporis are curtailed correspondingly, eventually a condition could be reached where there would be a 100 <}'<> embargo on imports and the people would suf fer immeasurable hardships. For nearly 30 years now, a large proportion of the population of .this country has come to look upon bread made of im ported white flour as a necessary part of its daily diet. If the importation of flour were prohibited, as would be the case if eventually we arrived at a 100 7© embargo on imports, we would then be on the way to attain what the Japanese recommended as the ideal co-prosperity state for the Filipino people; namely, “abolition of all motor transportation with the con sequent abandonment of good roads; a universal diet of fish, rice, and camotes; clothes made of home-spun materials; and the majority of the population engaged in the production of raw materials for its more ad vanced and industrialized neighbor—Japan”. A drastic curtailment of imports is not the solu tion or cure-all for our present conditions; rather, if the same interest, enthusiasm, publicity, and energy were devoted to the increase of our exports that is being shown in the curtailment of imports, we might eventually hope to achieve the dream of some of our more enlightened citizens—that is, that the Philip pines shQuld become the distributing point for all Asia and the center of all commerce, such as it was in the old days, when goods from every part of the Orient were collected in the Philippines for shipment to Me xico and Spain on galleons built of lumber from Min doro. Here we have the land on which can be grown sufficient rice to eliminate the necessity of purchases from abroad, filling all needs of our people and eliminating the sending of dollars abroad for this product. As in Japan and Formosa, the use of fer tilizers here would greatly increase the present yield, and arrangements to permit local capitalists to plant large-scale by machine-methods would greatly reduce the cost of production. We have forests of beautiful hardwood, such as mahogany, which is needed by other nations. We have hemp, coconuts, and sugar in quantity, and last but not least, before the war, we had a promising mining industry with a Pl00,000,000 production, which, with a little government help, can again be revived and possibly expanded. During the last 6 months, information has been continually coming in of rich mineral discoveries along the east coast of Luzon, in the Visayan Islands, in Mindanao, and elsewhere throughout the Philippines. All that these new finds need is a little venture capital to test them out in depth so that investors will be en couraged to carry on the work begun by the pros pectors. From one newly discovered deposit alone, a smal shipment of 150 tons of ore has been made run ning 400 ounces of silver and 62 71 lead with a gross value of P948 per ton. A second shipment will follow shortly. Several other equally interesting dis coveries not quite so rich, have also been made. The business community is naturally in favor of any plan which will furnish the initial impetus to convert these mines of tomorrow into additional new operating mines of today; thus, resuscitating —TS^Blue Ribbon— Distributors: F. E. ZUELLIG, INC. 55 Rosario St., Manila Tel. 2-95-43 Hear MUSIC ANA-DZMBfnc/ays 7:00~7:30 P.M. 446 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1949 the mining industry. They are fearful, however, that if the venture capital necessary for this purpose is supplied by some government agency (as has been suggested), this may lead to the government’s de manding a participation in the new ventures and ul timately, control of them. This, of course, would put the Government into the business, which is not to be desired and might also lead to insistence on govern ment participation in other lines of endeavor. The large integrated mining companies, here as elsewhere, have become conservative. They tend to concentrate their efforts upon the extension of known mineral deposits, or upon the purchase of mining operations already developed and producing. They have lost their pioneering spirit. They are no longer willing to take the initiative in searching for, or de veloping promising prospects, which, if given the op portunity, may prove to be equally as profitable as the known operating mines. Therefore, the miner has only two sources of aid,—one is the collective assist ance of the men on the street, through the purchase of low-priced shares, and the other is government aid. With the aftermath of a disastrous and crippling in vasion and occupation, the man on the street has no money at the moment for speculative investments; therefore, the Government is the last resort. Were the Government to give assurances that if it furnished the necessary venture capital to develop new and meritorious mining prospects, it would do so merely with the thought of resuscitating a crippled industry, and not with the idea of obtaining an enter ing wedge for eventual government control of the mining industry, the business community would be solidly behind the plan. Lumber By Luis J. Reyes Philippine Representative. Penrod, Jurden & Clark Company THE devaluation of the pound sterling is being looked upon by lumbermen with apprehension. They realize that African mahogany that comes from Equatorial Africa (Ivory Coast, Baboon, and Cameroon), as are also the various species of seraya (Borneo lauans), from British North Borneo, are controlled by Britain. Thus the lumbermen believe African mahogany will have a stronger competitive position in the United States markets, whereas Borneo Seraya, while courser-textured, softer, and less lustrious than our lauans and tanguile, will compete with the Philippine products in Japan and other countries of the Far East. During the month of August our timber exports amounted to 3,730,387 bd. ft., consisting of 986,408 bd. ft. of sawn lumber and 2,743,979 bd. ft. round veneer logs. The lumber went mostly to the United States, while the logs went mostly to Korea, where a total of 2,287,708 bd. ft. was purchased by SCAP.* At the dinner given in honor of Mr. H. C. Pope, General Manager of the Insular Lumber Company, the members of the Philippine Lumber Producers Association heard a very interesting report on the market conditions in the United States. During • These figures represent the timber inspected and approved for ex port by the Bureau of Forestry. The actual shipment figures are general ly . lower. 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 aud 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 October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 447 Mr. Pope’s sojourn, he attended the Annual Conven tion of the Philippine Lumber Import Association held in Colorado Springs, Colorado. Mr. Pope spoke highly of the firms handling Philippine products. One of the plans approved in the convention is to launch a more vigorous advertising campaign in favor of Philippine woods, although some importers are of the opinion that it is mostly a matter of price adjust ments and that our woods will sell if sold at a lower price. Perhaps something could be done along both lines simultaneously, and in this connection, the co operation of the Government in lowering certain levies is being solicited, also a revision of freight rates is being sought by a committee of the Lumbermen’s Association. At the request of the Philippine Lumber Pro ducers Association, Mr. Tamesis, Director of Forestry, emplaned for the United States on August 27, to help boost Philippine woods. Mr. Tamesis timed his de parture so that he could be in Chicago bj’ September 26, when the National Hardwood Lumber Association opens its convention. Mr. Tamesis is scheduled to ad dress the Convention on September 29. During the trip, Mr. Tamesis will likewise visit hardwood and furniture centers throughout the United States in the interest of the Philippine woods. The local price of lumber has been more or less stationary since last month. Small and medium-size mills continue closed down. With the advent of the dry season, it is believed greater building activity will follow which may bring some relief to the lumbermen in the form of higher prices. It might be of interest to mention here that the local manufacturers of plywood have petitioned the Government to put a ban on the import of plywood for the reason that the mills now in production arc more than 'capable of supplying the market require ments. According to the Bureau of Commerce, a total of 7,810,638 sq. ft. was imported from various coun tries in 1948. This amount together with plywood manufactured locally during the same year, consisting of 2,621,394 sq. ft., gives a total of 10,432,032 sq. ft. consumed during the year. Based on the 1948 figures, the probable consumption for 1949 is 1,000,000 sq. ft. per month. This demand can be supplied at present and by the end of October, more than double this amount could be produced. Copra and Coconut Oil By Manuel Igual Executive Vice President, El Dorado Oil Works and Kenneth B. Day President, Philippine Refining Company, Inc. August 16 to September 15 FOR the first half of the period under review co pra prices were steady and gradually advancing, particularly for nearby shipments. Then came a few days of uncertainty, followed by what ap peared to be the start of a fairly substantial decline toward the end. In the absence of substantial ECA allocations', American markets and American prices controlled. Starting with a market where buyers solicited offers at $170 c.i.f. P.C. and sellers were holding for $180, prices advanced in erratic trading to a point where limited sales were continually made at $185, and sellers were beginning to think optimistically of the possibility of $200 copra once more. But the advance was too rapid, with supplies considerably greater than in many months, and with a good vol ume of business done at the higher levels, demand started to ease off, and an accelerating decline con tinued to a point where on September 15 buyers would not look at anything over $155 c.i.f. and were freely predicting that lower prices were in the offing. European buyers, while purchasing sterling bloc commodities whenever possible, felt that Philippine copra was not relatively overpriced, and a few trades were made on the basis of $160 to $165 f.o.b. chiefly for Scandinavian destinations. France was out of the market and Bizonal Germany, a hard-currency buyer, was undergoing a reorganization of its buying system and deferred replacement purchases. The main reason for a strong copra market in the very heart of the copra season was the spectacu lar rise in the prices of domestic oils and fats, caused by shortage of supplies, particularly for prompt deYou’ll sense tomething 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-ahd-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 I 'n SMifH.BELL^Cd'XTD. TRADE AND COMMERCE BLDG .MANILA 448 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1949 REMEMBER THE FOLKS AT HOME! A box of put up in attractive holiday packing is a much appreciated Christmas present. The cigars can be mailed direct from the factory or delivered from our New York stock, to any place within the United States. Your personal card can be enclosed. PRICES for shipment from Manila by ordinary parcel post, including postage, the U.S. Internal Revenue Tax to be paid by recipient: Shape Packing per box CORONAS 25’s Standard P 8.75 id 25’s Boite Nature 9:50 id 50’s Boite Nature 16.00 id 25’s Tesorito 14.50 id 50’s Tesorito 22.50 id 50’s Chest 22.00 ESPECIALES 25’s Standard 7.75 id 25’s Boite Nature 8.25 ALCALDES 25’s Standard 7.25 id 50’s Standard 11.50 BELLEZAS 50’s Standard 7.50 Place your order now. Parcel post shipments from Manila should be forwarded not later than the early part of November, to assure arrival at destination before the holidays. PRICES for deliveries ex New York, all expenses, including U.S. Internal Revenue Tax, prepaid. Recipients pay no charges whatsoever: Shape Packing per box CORONAS • 25’s Standard P10.50 id 25’s Boite Nature 11.00 id 50’s Boite Nature 21.50 ESPECIALES 25’s Standard 9.50 Ask for Illustrated Folder ALHAMBRA CIGAR & CIGARETTE MFG. CO. P. 0. Box 209 —Tel. 2-64-94 31 Tayuman, Tondo — Manila livery. The new crops of cottonseed and soya were still unavailable and inventories were low for hand to mouth consumers. Buyers who could not wait were forced to pay through the nose. The advances in these oils carried coconut oil and consequently co pra along with them. LOCALLY, the copra market was very much con fused and unpredictable due partly to day by day fluctuations but more to a very unsatisfactory freight situation. As predicted last month, the Con ference declined to cut rates $3, and shippers began to charter, chiefly for September loadings, at savings reported to be as much as $7.50 to $10 per ton. Chartering became so general that the Conference was forced to act, and finally, after conferring with West Coast mills, Pacific lines reduced their rates on copra, oil, and meal by $8.50 effective September 6, good until November 30, with reconsideration Oct ober 15. This unilateral action was not followed by Atlantic lines until September 14, the rate adjustment being retroactive to the 6th. The new rates appear unprofitable to carriers, and were only adopted to fight cheap charters in an overtonnaged market. It is not impossible that they may be adjusted upward in October, unless some agreement can be reached with shippers to improve loading conditions and des patch. Uncertainty regarding freight rates thoroughly mixed up local markets, and further resulted in va riations of contract terms in many cases from straight c.i.f. landed weights per short ton to f.o.b. landed weights per long ton. Moreover, with lower freights clearly coming, the age-long struggle began as to who should get the benefit of the drop, sellers through higher local copra prices, or buyers through lower c.i.f. purchases. A middle course result appeared likely. COCONUT oil buyers were quite active during August, supplies being very short for early deli veries. In fact spot sales of a few tank cars were registered as high as 17<* f.o.b. P.c. But the discount for futures was heavy, and large Eastern users of co conut oil refused to pay fancy prices. The best East Coast sales of Philippine oil were at around 15^ c.i.f. N.Y. for August/September shipment. Philippine mills did a fair business in August, but in September buy ers went on strike once more, and, as the period en ded, were entirely out and waiting for the bottom of the market again, their supplies being adequate through October. Also, as prices declined, premiums for spot oil began to fade away, to the disadvantage of Coast mills, which had been doing very well with small uncommitted stocks. Local copra markets fluctuated with export quo tations, advancing in Manila from 31 to 24 pesos, then dropping to 29, then back to 31, and eventually ending the period at 28. Cebu prices were about the same. But there was never any great selling pressure, and outport shipments, especially by charters, kept provincial prices at extremely high levels, — generally too high for Manila and Cebu buyers. Copra shipments for August were the highest since February, 1948, totalling 62,390 tons distributed as follows: United, States Pacific Coast ..................... 38,404 tons Atlantic Coast........................ 2,226 ” Gulf Coast .......................... 3,754 ” 44,384 tons October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 449 Canada ................................................ 2,900 tons Europe ................................................. 14,902 ” Africa .................................................. 204 " 62,390 Some of this copra should have been applied to July, as explained last month. Shipments in August, 1948, totalled 37,114 tons. It can be seen therefore that current prices were sufficient to encourage full production. Oil shipments declined from July, partly owing to freight difficulties, and totalled only 5300 tons dis tributed as follows: United States Pacific Coast ........................... 464 tons Atlantic Coast ......................... 4,763 tons 5,227 tons China ........................................................... 73 tons 5,300 tons This, however, contrasted favorably with the 3,095 tons exported in August, 1948. Total August copra and oil shipments in the form of copra exceeded 71,000 tons, a very good month, indeed. While European cake markets held steady at the equivalent of $34 to $35 per ton f.o.b. the American meal market declined from $51 to $46 per short ton c.i.f., the decline being primarily due to large avail able supplies of feed stuffs on the Coast. Some of this decline was absorbed by the new freight rates. LOOKING at the copra market in mid-August, we find the position statistically weak with buyers looking for lower levels. The new bumper crops of cottonseed and soya were beginning to come to mar ket, big hog and cattle slaughters were anticipated, and the domestic situation seemed inherently very easy. Prices were dropping daily, spot premiums had largely vanished, and buyers were generally disin terested. Some market authorities felt, however, that per haps the decline was again being overdone, and pre dicted that markets might soon steady themselves at around current levels for the remainder of the year. Coconut oil was expected to be tied more or less to domestic oils and divorced temporarily from tallow. The real answer to coconut oil prices, however, lay right here in the Philippines, and depended on the amount of copra produced and offered for sale. If declining prices serve to curtail production, if bad weather sets in, or if there should be any consider able buying interest from Europe, prices may well steady up again. If copra continues abundant and supplies exceed demand, the market may weaken fur ther. Or any one of several unanticipated contingen cies may upset the present picture one way or an other, including acts of government. That is why dealers in general are trying to maintain a fairly ba lanced position, and pure speculation as such is at its lowest ebb for the year. For the country as a whole, this is a healthy state of affairs, it does lend itself to spot fluctuations if outside markets move suddenly, because uncommitted stocks, which normally act as cushions against spot requirements, are very limited, particularly for this time of year. As usual, then, we leave the copra market on September 15 in a very confused and unpredictable condition, but subject to considerable downward pres sure from United States buyers, who find themselves in a substantially better position than a month ago. HUME PIPE & ASBESTOS COMPANY Mandaluyong DO YOU KNOW? of a BUILDING MATERIAL used for Siding, Ceiling and Roofing that is: Fireproof Rustproof Corrosionproof Insectproof Heat resistant There is only one: ASBESTOS • CEMENT SHEETS Plain for Siding and Ceiling, Corrugated for Roofing For further information see your dealer or: THEO. H. DAVIES & CO., FAR EAST, LTD. 6th Floor, Ayala Building Manila Tel. 4-79-41 to 4-79-44 Provincial distributors: Davao : Ker & Co., Ltd. Iloilo : Ker & Co., Ltd. Cebu : F. E. Zuellig, Inc. Legaspi: Smith, Bell & Co., Ltd. Bacolod: Earnshaws Docks & Honolulu Iron Works 450 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1949 Effects of European Currency Devaluation ON September 19, the British pound was devalued by 30-1/2% from $4.03 to $2.80, and sterling area countries immediately devalued their cur rencies correspondingly. The question at once arose as to how this might affect Philippines copra and oil which are sold in competition with sterling producers. The immediate effect was of course psychologically bearish, and prices started to decline. The decline was short-lived, however, and prices began to stabilize themselves at not very much be'.ow pre devaluation levels. But this is not a long-range an swer, and it will take time to determine the real end-result. A few points stand out. First, sterling area pro ducers can undersell Philippine producers in both American and European markets. But in the Ameri can market they must hurdle the extra processing tax of 2 cents per pound,—about $25 per short ton of co pra. If they want dollars badly enough to pass up more profitable European markets, they will do this, but $25 a ton is a weighty deterrent. Secondly, Europe is still very short of fats and oils, and prospective world supplies of copra and co conut oil this year are somewhat disappointing. It is unlikely therefore that there will be any great pres sure of copra on the market. Consequently, Europe will probably be able to take care of outside copra, which because of devaluation has a preference in sterl ing markets, leaving American buyers still chiefly de pendent on the Philippines. American markets are depressed due to large crops surplusses and threats of industrial unrest. Prices cannot therefore be expected to advance much except for distressed buyers. But in the United States, the laws of supply and demand will ultimately govern, and for minimum requirements prices must follow availability of copra. What this will mean for the Philippines must depend during the coming months on available supplies. Whether European buyers will still look at Philippine copra is problematical, but not impossible, although obviously they will draw on sup plies from sterling areas as far as they can. Were it not for ECA dollars when earmarked for purchases from the United States or the Philippines, in which European purchases have largely been made in recent months, Philippine copra would find it hard indeed to supply the European market. Certainly, there is nothing bullish for copra and coconut oil in devaluation; on the contrary, it is on the whole bearish. Prices should tend to be lower than they otherwise would. In another year, and with increasing world production of fats and oils, it may become a serious factor. But statements to the effect that Philippine copra and coconut oil face immediate ruin from devaluation appear, to say the least, pre mature. Desiccated Coconut Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from August 15 to September 15, 1949. Generally the industry continued at slightly reduced capacity, with the Blue Bar Company remaining shut down in Luzon. Peacock’ s6The Store of Quality 600 DASMAIIISAS TEL. 2-79-78 & 2-79-79 October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 451 The copra market eased off after remaining quite steady during the first part of the period, and toward the close of the period copra and nut prices became bearish. We can look for a considerable fall in price due to the pound sterling drop as well as the drop in shipping rates for the coming period. It is too early to say what the drop in copra ship ping rates will do to desiccated coconut factories as far as purchasing nuts is concerned, but already indi cations are that around the coastal areas the middle men are absorbing a large part of the differential and that the freight drop has not been of much assistance to desiccators. Although it is too early to give a de finite opinion, events to date have only proved how definitely the desiccators are tied to copra events and prices. Labor-management problems remained at a min imum during the period. Standard Coconut Corpora tion had a flare-up of labor difficulties which to the date of this report have not been settled. The issue has become largely an inter-union squable with the company caught in the middle. We officially welcome into the ranks of the desic cated producers, Red V’s new factory in Oroquieta, which we hear is a fine factory, well planned, and making use of all labor-saving devices possible. This marks a post-war effort to establish multi-plant opera tions, as did Blue Bar before the war. The shipping statistics for the month of August are as follows: Shippers Pounds Franklin Raker Co................................. 3,941,560 Blue Bar Coconut Company ............. 218,070 Peter Paul Philippine Corporation ... 1,014,000 Red V Coconut Product, Ltd................. 2,325,600 Sun-Ripe Coconut Products, Inc.......... 291,000 Standard Coconut Corporation .......... 506,300 Cooperative Coconut Products ............ 599,700 Tabacalera ............................. 575,000 Coconut Products, Inc........................... 186,210 Luzon Desiccated Coconut Corp .......... 237,370 9,904,810 Sugar By S. Jamieson Alternate Secretary-Treasurer Philippine Sugar Association THIS review covers the period from September 1 to September 28, 1949. New York Market. — September opened with sales of Cuban, Puerto Rican, and Philippine sugar at 5.95^ for September/October shipment. There after sellers held out for 6C, at which price a fairly large quantity of sugar, mostly Hawaiian, was on of fer; but buyers showed little interest, apparently hop ing that, -to ease the supply situation, Washington would increase the United States consumption quota. This hope was realized on September 13, though not before buyers had paid 6 c* for 10,000 tons of Cubas for October shipment, by the announcement made by the U. S. Secretary of Agriculture that the 1949 United States consumption quota would be increased by 250,000 short tons, making the total quota 7,500,000 short tons. Of this increase, Cuba was allotted 246,600 tons, making her total United States allot ment 2,888,735 short tons. This had no noticeable effect, however, on sellers’ idea of price, and buyers finally gave up their idea of getting prompt arrivals below 6tf and purchased about 30,000 tons at that Valuable References For Your Business Library EXPORTERS’ DIGEST (Monthly Magazine) 1 yr. . . 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P 6.00 Collector’s Stock Book .............................. 9.00 “Ring Binder” Stock Book ....................... 10.50 “Daisy” Stock Books — Complete .......... 14.50 PHILIPPINE EDUCATION COMPANY Tanduay at Vergara TEL.3-22-51 Quiapo, Manila 452 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1949 FOR BETTER SERVICE — Call 2-77-03 ALLIED BROKERAGE CORPORATION Marsman Building Tort Area Documents may be delivered, to our repre sentative in the branch offices of MACKAY RADIO & TELEGRAPH COMPANY, Plaza Moraga and Trade & Commerce Building. Individual attention and competent super vision given to your customs brokerage require ments. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING YOUR new ROOM in 1'day! MORE COLORS-MORE DECORATING HELP Decorating delight—that's FULLCOAT—real OIL paint! Covers easy—flat and smooth dries quick—has NO ODOR! 12 sunny "go-together" colors. AMERICAN FACTORS (PHIL.) INC. Mary Bachrach Bldg. 25th St., Port Area Tel. walls & ceiling use FULLCOAT 1 -day, 1 -coat real OIL paint price. The market continued to gather strength, sellers holding out for G.OS?4, and the price finally went over the Gc* level with the purchase of 20,000 tons of Cubas at 6.03<‘, followed by about 30,000 tons more at 6.05<‘. At the close there are sellers but no buyers at 6.05<*. During the month, the following sales of Phil ippine sugar were reported: 3,500 tons ex warehouse New York at 6(* 6,000 tons for September shipment at 5.95<* 13,000 tons new crop at 5.75 for January/February ship ment In the face of the steadily advancing price of law, refiners raised their price of refined from 7.85tf to 8.05<‘, effective September 26. We give below the quotations on the New York Sugar Exchange as of September 22 for contracts No. 4, 5, and 6: Contract Contract Contract No. 4 Np. 5 No. 6 September . . . . . 4.18 5.67 — November . . . . -.— -.— 5.53 December . . . . — 5.59 5.45 January ................. -.— 5.55 5.41 March..................... . 4.09 5.31 5.22 May....................... 4.08 5.30 5.21 July........................ 4.08 5.30 5.21 September, 1950 . — 5.32 5.23 November, ” 5.24 Local Market.— (a) Domestic Sugar. Suffi cient stocks of 1948//49 sugar are said to be on hand to meet local needs until November 15, by which time adequate supplies are expected to become available from new crop sugar. Current prices for old supplies are from P19.50 to P20.00 per picul, ex mill ware house, for centrifugals. Dealers have already entered .into contracts for new crop centrifugals at the follow ing prices ex mill warehouse: P19.00 to P19.50 per picul, October delivery; P17.50 to P18.00 delivery first half of November; P16.00 to P17.00 delivery during second half of November; and P16.00 delivery up to December 15. They are indicating P15.00 to P15.50 for delivery after January 1, 1950. (b) Export Sugar. Exporters are quoting P13.90 ‘o P14.25 per picul, ex mill warehouse, for delivery up to October 31, and P13.40 to P13.50 for later delivery. Mills and their planters will likely sell a large part of their first new crop sugar in the domestic market, and, in consequence, the quantities offered for sale as export sugar will probably be quite limited, especially during the months of October and November. Several Negros mills start milling in the latter part of October. General. — Freight Rate. Negotiations are pro ceeding between shipping agents and shippers for a new rate on raw sugar from the Philippines to United States Atlantic Coast ports, to be effective upon the termination of the existing rate of $15.50 on October 31, 1949. Java. — The latest estimate of the new Java crop reduces the quantity to 200,000 tons. The original estimate was 350,000 to 360,000 tons. There is thus no likelihood of sugar being available for export from Java during the coming season, since their home con sumption is more than 200,000 tons. The reduction is ascribed to a recrudescence of the disturbed condi tions in the sugar districts which has made it diffi cult to safeguard the growing crop. Hawaii.—The longshoremen’s strike has not yet been settled, but since the government took the port facilities, several steamers hav been loaded with su gar for delivery to United States Atlantic. Coast ports. October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 453 Manila Hemp By H. Robertson Vice President and Assistant General Manager, Macleod and Company of Philippines THIS review covers the period of August 16 to September 15. During these thirty days, the market ruled quiet but inactive. Closing values were somewhat under the highs for the period, due to the tendency of Philippine sellers to press sales on the prevailing thin market. World demand for abaca at present prices is strictly limited. In view of the continued poor de mand for rope, United States consumers feel that prices are too high to justify purchases except for their immediate requirements. Japan is still out of the market except for small quantities of particular grades. SCAP may re-enter the market in October. The dollar shortage precludes any real demand from the sterling area, although small ECA purchases were recorded during the period. Locally, prices continue to run higher than out side demand warrants. Expected lower production for October and November probably accounts for this. It is apparent that 1949 production will run 90,000 to 100,000 bales below that of 1948. Philippine provincial quotations, September 15: Per Picul Basis Loose Davao I . . . . P59.00 — Up P4.00 per picul since August 15. Davao Jl . . . . 57.00 — Up 3.00 ” ” ” Davao G . . . . 48.50 — Up 1.00 ” ” ” Non-Davao I . . P56.00 — Up 6.00 Non-Davao G , . 39.00 — Up 3.00 ” ” ’’ Non-Davao K . . 24.00—Unchanged ” ” ” New York quotations, September 15: Davao I . . . . 26% ■} -Up ’ 2<‘ per 1’:). since August 15. Davao Jl . . . . 26. -Up % ” Davao G . . . . 23% -Up % ” Non-Davao I . . 26% -Up Non-Davao G . . 19% -Up 1% Non-Davao K .. 15(* -Up % Production for August, 1949, reached only 31,666 bales. This represents a decrease of 3,959 bales from July, 1949. Non-Davao August balings totaled 16,936 bales — down 2,267 bales from July; and Davao, 14,730 bales — down 1,692 bales from July. August production was the lowest recorded for any month since November, 1948.Exports for August amounted to 24,880 bales. Production for the first eight months of 1949 was 348,932 bales, against ex ports for the same period of 320,750 bales. January/August production for 1949 was 87,031 bales lowfer than production for the same eight months of 1948. PHOTOGRAPHIC C H RI ST M A S CARDS Place Your Order Now Avoid Rush MARY OFTEDAHL 321 A. Mabini ALMAR STUDIO Tel. 5-33-26 AMERICAN INTERNATIONAL UNDERWRITERS FOR THE PHILIPPINES, INC. ARTHUR H. HENDERSON President Seventh Floor, Wilson Bldg., Manila Telephone: No. 2-98-86 Cable: “Underiters” Managers in the Philippines for: — AMERICAN INTERNATIONAL ASSURANCE CO., LTD. COMMERCIAL CASUALTY INSURANCE COMPANY THE EAST AND WEST INSURANCE COMPANY FIREMEN’S INSURANCE COMPANY THE FULTON FIRE INSURANCE COMPANY GRANITE STATE FIRE INSURANCE COMPANY THE HANOVER FIRE INSURANCE COMPANY MILWAUKEE MECHANICS’ INSURANCE COMPANY NATIONAL UNION FIRE INSURANCE COMPANY NEW HAMPSHIRE FIRE INSURANCE COMPANY PACIFIC NATIONAL FIRE INSURANCE COMPANY SECURITY INSURANCE COMPANY Fire and Allied Lines CASUALTY — AUTOMOBILE — MARINE REINSURANCE FOR Quality ENGINEERING SUPPLIES... WITTE Diesel Engines ATLAS Imperial Diesel Engines U. S. Electric Motors MACWHYTE Wire Rope CUTLER-HAMMER Electrical Controls BYRON-JACKSON -Pumps JENKINS Valves “HOOPERWOOD” Canvas “FILTROL” Filtering Clays BALDWIN Locomotives and Testing Machines G. R. COLEMAN & CO. — Textile Machineries MERRILL & CO. — “Merrillite” HARDINGE & CO. — Ore Grinding and Reduction Mills E. J. LONGYEAR & CO. — Drilling Equipment STEPHEN-ADAMSON MFG. CO. — Conveyors, Ele vators, etc. ELLIOT CO. — Steam Turbines and Generators and many others Backed by service and a large stock of spare parts Your Inquiries Are Invited ATKINS, KROLL & CO., INC. MACHINERY DEFT. Myers Bldg., Port Area Manila Tel. 2-94-67 454 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1949 Afraid of Color Photography? (you don't have to be!) Ansco Color Film is easy to use— thrilling to work with! Here is a true color film that gives you superb trans parencies in sparkling “natural” color. It reproduces your Tobacco By the Conde de Churruca President, Manila Tobacco Association FOR the first time since liberation, the corn crop of Northern Luzon has been saved and harvested by the farmers. It is a big crop, amply suf ficing their needs. As a consequence, farmers will be prepared to plant a larger -amount of tobacco, and if the weather plays no tricks, we can expect a pro portionately big crop. A few years of good weather would be the real basis for the rehabilitation of the tobacco industry. It is much too early to make any guesses as to the next crop, but tobacco seed is being distributed in large enough quantities to enable the farmers to plant many seedbeds. EXPERIMENTS with Virginia seed (that has not been changed for 4 years) have given good re sults as to quality but have proved very expensive comparison to the results obtained. It will not be possible, because of the high wage cost, to produce this tobacco by administration, but if the farmers would be willing to cooperate and the Government and private entrepreneurs would build a large enough number of curing sheds, very good results could be obtained in certain regions of the Philippines as this tobacco could be sold to factories at better prices for the farmer than the native type, and it would be cheaper for the factories than the better grades of •imported Virginia. To promote this matter, it would be necessary, in the first place, that some local type of Virginia cigarette be manufactured and accepted by the public. It would have to be made, at the beginning, from im ported Virginia leaf, and little by little this would be blended with the local Virginia. In time, by pro gressive improvement, a minimum of imported leaf would be needed. It would not be too easy for the factories to hit upon the right type of cigarette, one which will be appreciated by the public, for it would have to be both cheap and good. But this would be the only way to procure a market for native Virginia leaf. Once a locally manufactured Virginia cigarette is well introduced, it would not be hard to progressively change the blend to the native Virginia. subjects as they are! Get acquainted with Ansco Color Film today! We have it in 120 and 620 rolls, and 35mm cartridges for cameras having f6.3 or faster lenses. . . . And let our experts process your exposed films. You’ll get pictures that sparkle with beauty and naturalness. BOTICA BO1E, Inc. Photo Department On the Escolta, Manila CEBU ILOILO LEGASPI DAVAO AGENCIES CHARTERS SALES TELEPHONE 2-97-23 American Steamship Agencies, Inc. MANILA, SHANGHAI, SINGAPORE, GUAM CABLE ADDRESS: “AMERSHIP” 214 MYERS BLDG. PORT AREA MANILA October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 455 It is out of the question, however, to encourage our farmers to produce Virginia tobacco instead of native in quantity at once, for if it were produced in any volume, there would be no buyers prepared for it. The factories have first got to produce a good cigarette (even at a sacrifice), one which local smokers will indeed prefer to the imported type. All this would therefore involve a parallel process that would take time, but it would produce an im portant business and keep many millions of dollars from leaving the the country. Chemicals By Herbert Fischer Philippine American Drag Company (Botica Boie) IMPORTS of chemicals into the Philippines have reached a level which is being steadily held, in dicating that the supply is meeting the demand and that consumers are buying by the week or month instead of stocking up months in advance to be as sured of a sufficient supply. Increased sales in certain items have offset de creases in others which were subject to speculation. Philippine industry, which is the heaviest direct con sumer of chemicals, demands a certain flow of im ports and this flow will increase with the develop ment of local industry. The present import control over luxury items which restricts the import of ready made preparations, will act an incentive toward the1 establishment ■ of new industries, though some restricted items, well and favorably known, will con tinue in demand. Some of the largest American soap, dentrifice, cosmetic, and perfume manufacturers are reported to be preparing to manufacture locally, and while they will no doubt import most of their raw materials and their containers, they will certainly purchase some of their raw materials, such as alcohol, here. Ultimate ly, most of the containers, — bottles, cardboard boxes, and labels may also be made here. It is too early to make any definite statement with respect to the effect of the sterling devaluation on local prices of chemicals. There may or there may not be a shift to European suppliers, depending upon availability and prices. FOR RE-WIN DING OF GENERATORS—MOTORS CALL E. J. MORA ELECTRIC CO., INC. Address: 170-2 M. de Comillas Tel. 6-65-85 Buy COLLINS for your men, be cause COLLINS gets more done. It’s easier to handle. Better ba lance, longer-lasting edges speed work. Cane is cut quickly with a minimum effort. Top value for your money. COLLINS LOUISIANA PATTERN CANE KNIVES Stocks on hand for immediate delivery at all leading hardware stores Exclusive Agents for the Philippines CHAM SAMCO & SONS, Inc. I’. 0. Box 928 — 300-8 Sto. Cristo, Manila Tels. 2-81-72 & 2-81-76 456 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1949 Textiles By James Traynor ★ LUZON STEVEDORING COMPANY, INC. MANILA ¥ THE market during September was more active than at any time since January. This activity is the result of several factors, the most import ant of which is the seasonal increased consumption, common toward the end of the year, usually beginning in September. Ordinarily importers buy for this year-end activity, but this year buyers have used ex treme caution due to depressed prices which have ruled during the past 5 to 6 months. Inventories were therefore held at a conservative level and are now low enough to cause many grades to be in short supply, and with the consequent upward adjustment in prices, importers feel more confident in making new commitments. There is a feeling in the market that if the cur rent rumors of further restrictions by the Import Con trol Board are put into effect, the normal demand for textiles could not be satisfied. The New York market continued to be firm and nearby deliveries very difficult to procure. Some mills in the United States have sold as far ahead as next February. Prices in New York continued to ad vance throughout the month. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso & Jcinda THE Supreme Court has just rendered an in teresting decision on the liability of a lessee for the agreed rental during the period of the Japanese occupation. In Case No. G. R. No. L-1802, decided September SO, 1949, the Court said: “We do not agree however with plaintiff that the non payment of rent worked to rescind the contract. The failure of the defendant to pay rent during the war was due to im possibility inherent in the nature of the thing to be performed. In this aspect of the contract the payment was the very thing promised by the lessee, the very foundation, the sole considelation of the contract for the lessor, and the lessee’s failure tc make good the promise was due to causes over which it had no control and for which it was in no manner at fault. The war led to its officers’ incarceration or internment and prevented them from receiving cash from their principal or from working to earn money. There is no difference in the animating principle involved between this case and that of SWAN, CULBERTSON & FRITZ, INC. BROKERS IN LOCAL AND FOREIGN SECURITIES Member—Manila Stock Exchange New York — San Francisco Correspondents — Honolulu — Uruguay Shanghai — Hongkong 701 S. J. WILSON BLDG. _„T J 2-74-55 143 JUAN LUNA 1 \ 2-80-53 October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 457 a promissor who is unable to fulfill a promise to sell a house because the house was burned down. “It will perhaps be contended that after liberation the de fendant was in a position to pay the rent in arrears and yet did not do so. This failure, in our opinion, should not oper ate as a forfeiture of the right of the lessee under the con tract. Its refusal was not due to any notion of bad faith but to an honest belief that it was not under obligation to pay. This claim for exemption can not be dubbed frivolous in the face of the fact that the lower court sustained it and of the vehemence with which the proposition is urged by counsel upon us. “The judgment of the lower court is reversed as to the obligation of the defendant to pay rent from December, 1941, to the date preceding the first payment after January, 1945. The decision is affirmed regarding the prayer to rescind the contract.” In the case of San Miguel Brewery, Inc., Case No. 271-V, decided September 17, 1949, .Judge Roldan of the Court of Industrial Relations said: “Section 1 of Article III of the Constitution of the Phil ippines regulates the acts of the laborers and employers in a strike. Sec. 1 provides: ‘No person shall be deprived of life, or property without due process of law', nor shall any person be denied the equal protection of the laws.’ In any strike the rights of four groups of persons are affected—the strikers, the employer, the workers who did not join the strike, and the public. “In the application of the constitutional provision above cited, the laborer has the liberty to sell his labor to whom he chooses and to stop rendering his service when he so deter mines; the employer is at liberty to operate his business in the way he pleases and to employ those whom he selects; the non-striker has the liberty to join or to refuse to join the strike or to stop or continue his service; and, the public has the right to continue its dealings with the employer. All these rights are sacred and must be respected in accordance with the laws enforced.” Another point the Court made was that wages were not payable for time lost during the strike last year. The Court said: “As to the demand for the payment of the wages that the strikers lost on the occasion of their strike on November 22, 1948, the Court understands that a strike is a voluntary and deliberate cessation of work on the part of the workers. Upon this consideration and based on the equitable tenet of a fair day’s wage for a fair day’s labor, this demand falls of its own weight and must be, as it is hereby, denied.” As to the claim for the equivalent of 3 years’ pay for rehabilitation, the Court said: “This demand has been the subject of a similar petition in Case No. 26-V of this Court between the National Labor Union and the petitioner. This Court then and there rules that ‘the company should not in fairness be responsible for the back pay of three years during which it had not been benefited because all the properties and plants of the com pany were operated and utilized by the Japanese Army of occupation during that period; and, moreover, there had been no evidence at all as to w'ho among the employees worked during the occupation in the company’. “Conditions have not changed since then. No new evi dence had been presented by respondents to justify a new MOTOR SERVICE CO., INC. AUTOMOTIVE PARTS . ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th ST., PORT AREA TEL. 2-65-27 FERTILIZERS SULPHATE OF AMMONIA SUPERPHOSPHATES SULPHATE OF POTASH MENZI & CO., INC. Iloilo MANILA Cebu J. M. MENZI Bldg. Corner Reina Regente & Soler Streets Tel. 4-79-29 ENTERPRISE HEAVY DUTY DIESEL ENGINES FOR ELECTRIC DRIVE THREE ENTERPRISE GENERATING UNITS OF 300 KW EACH HAVE BEEN FURNISHED THE JAI-ALAI CORPORATION FOR ITS POWER PLANT. Prompt Delivery Exclusive Distributors MANILA MACHINERY & SUPPLY CO., INC. 675 Dasmarinas Tel. 2-72-98 458 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1949 SILVER AND JAVA PACIFIC LINES SILVER LINE, LTD. London, E. C. Z KERR STEAMSHIP CO.. INC. General Agents 17 Battery Place New York JAVA PACIFIC LINE N. V. S. M. "Nederland” Amsterdam Konlnklijke Rottvrdamsche Lloyd. N. V. Rotterdam A nisterdam—Rotterdam JAVA PACIFIC LINE, INC. General Agents 25 Broadway New York MANILA VANCOUVER ILOILO To and From SEATTLE CEBU PORTLAND LOS ANGELES and SAN FRANCISCO CALCUTTA. BOMBAY and** PERSIAN GULF PORTS ★ PRINCE LINE, LTD. FROM U. S. ATLANTIC COAST PORTS TO MANILA FROM PHILIPPINES TO HALIFAX and U. S. ATLANTIC COAST TORTS F'or Particulars Sec: ROOSEVELT STEAMSHIP AGENCY, INC. AGENTS 3rd Floor. Trnde & Commerce Bldg., Juan Luna Tel. 2-82-01 SPUR-GEARED HOISTS If your lifting methods are costing you "muscle money”—those needless costs that go with timestealing, effort-consuming hoisting operations, inves tigate the \ale Spur Geared Hoist. This star performer of all hand hoists is a modern lifting too) that saves you money. Ask for complete information. J4 to 40 tons. Hook and trolley types. THE EDWARD J. NELL COMPANY 1450 Arlegui Street Tel. 3-21-21 decision on the matter. For these eason, this demand is denied.” As to the legality of the strike, the Court said: ‘‘A perusal of the evidence submitted by both parties on the matter of strike leads the Court to conclude that at least in the Coca-Cola Plant located at Otis Street, Manila, in the Magnolia Plant located at Aviles Street, Manila, and in the Polo Plant located at Polo, Bulacan, employees were coerced and intimidated from rendering their usual services to the San Miguel Brewery, and, in the Polo Plant there was use of coercive words, display of force, threats and acts of violence, during the strike. ”... .With regards to the strike, the Court finds that the means employed in its furtherance were violative of Constitu tional and legal provisions in forces in this jurisdiction and declares this strike illegal. As a consequence, those respon sible for this illegal strike can be dismissed.” Philippine Chamber of Commerce Program. .. (Continued from page 436) creed time and again, whether in this country, in the United States, or elsewhere. One such measure is the import control. I recall that we endorsed1 for approval the law establishing the import control as a temporary measure. While I do not argue on the beneficial effects of the import control, such as the conservation . of our dollar reserves, by canalizing the import trade to essential commodities and capital goods and restrict ing the importation of luxuries and non-essential goods, the fact of the matter is that we favored it as a temporary measure. I shall suggest to the Board that we send a referendum to the members ask ing them to give their opinion as to the continuation or repeal of the import control so that we may arrive at a definite stand on the matter. 8. There is no question that our system of tax ation is top heavy, considering the rather simple eco nomic structure that we have. On top of this, there is always danger of double taxation—taxation by the local government and taxation by the Government of the Republic. Taxation is one of the greatest restric tions on the progress of business. I am not arguing against taxes which are reasonable and bearable, and which are imposed under the principle of ability to pay. But there are taxes in our system of taxation that are defective and which operate as impediment to our economic development and the progress of busi ness. I intend to direct the preferential attention of the Taxation Committee of the Chamber to this problem. 9. Our obsolete tariffs should be revised. The tariffs enforced now are colonial in nature. They have been in force “mutatis mutandum” since 1909. Certainly, the Government of the Republic should revise our tariffs. As a matter of fact, such revision has already been started. It came to a head with a proposal submitted to the National Economic Council. Such proposal has been circularized to the members of the Chamber and I am urging all the members to make such suggestions as they may deem proper so that we can study and contribute to the revision of the existing tariffs in a manner to suit best our national interests. 10. The labor-management relationship should ever be kept harmonious. The success of any business enterprise depends, to a large extent, on that harmony. Labor should be given a just wage and human treat ment and Capital should be entitled to a fair and reasonable profit. Labor-Capital disputes should be minimized as they tend to disrupt business and entail great economic loss. I propose to have a study of all (Continued on page 462) October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 459 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 I House Rent (8.43) Cloth ing (0.62) Fuel, Light I Miscd-1 Purchasand Wntcr laneousl Ing Power (13.941 I (17.86) | of a Peso Food <59.15) 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 .1902 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 1947’ (100.00) (63.43) (11.96) (2.04) (7.73) (14.48) 1948 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 . . 381.0 404.4 453.9 250.9 325.4 269.4 .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 1949 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 1 Average number of persons in a family = 4.9 members. 1 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, 1946. 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 May . . . 348.8 362.8 453.9 197.2 287.5 257.1 .2867 June . 349.0 362.9 453.9 203.9 287.5 257.2 .2865 July . . . 351.7 374.0 453.9 194.2 265.8 240.5 .2844 August 337.5 351.2 453.9 196.3 266.6 241.2 .2963 September 333.6 345.1 453.9 190.3 264.8 243.1 .2998 CHRYSLER CORPORATION AIRTEMP packaged Air Conditioning and Refrigeration Exclusive Distributors: W. A. CHITTICK & 111, 13th Street, Port Area, Manila WELDED STEEL All Ball Bearing FILING CABINETS p r e p a r e d by those who recog nize the overall worth of a qua lity product. Any size to fit your needs. INQUIRIES AT F. H. STEVENS & CO.. INC. 4th FLOOR, EL HOGAR FILIPINO BLDG. Manila—Tel. 2-86-13 SUPERIOR GAS & EQUIPMENT CO. HI. 1NUIACTURERS Of: • Highest Quality OXYGEN & ACETYLENE GASES For All Welding Purposes • SUPERFLAME Bottled & Tank Gas for all Cooking Purposes — Complete Instal lation & Service facilities • CARBON DIOXIDE In liquid form for bottled drinks CARBON form for DIOXIDE “Superfriz” Frozen Food preservation Solid • CARBON DIOXIDE In liquid form for Fire Extinguishers • HYDROGEN GAS For Balloons & Under water cutting of Steel • Distributors of NATIONAL CARBIDE, WELDING EQUIPMENT & SUPPLIES “STOODY” Welding Rods For hard surTEL. 6-88-02 460 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1949 SAFE The=- —' LET YOUR HAIR DOWN” -------- Column STORAGE is SOUND BUSINESS POLICY! ★ Lcast Bother For our ^^lients MAINTAINS BONDED WAREHOUSES FOR THE SAFE STORAGE OF YOUR CARGO OR MERCHANDISE. PHONE 2-79-35 OR CALL AT OUR CONVENIENT DOWNTOWN OFFICE: RCA, Ground Floor, INSULAR LIFE BUILDING THE editor was full of talk one day this month about a diplomatic reception he had attended the evening before, — the reception at the Netherlands Le gation in honor of Lt. Col. John P. Prior who was on that occasion decorated with the Royal Order of Orange-Nassau. But to listen to the editor you would have thought that he is the one who was de corated. “You know,” he said, “I don’t go out very much, but the Nether lands Legation is near my house and I got up energy enough to go last night. And everyone I talk ed to seemed glad to see me and had something good to say about the Journal. Even the woman. I was surprised!” He quoted himself: “You mean to say you read the Journal'! A businessman’s paper; economics, finance, statistics, mar ket reports! A woman: I can’t believe it.” “But it’s true, all right,” he went on with a self-satisfied smile. “They told me that their husbands always take their copies home with them and these wives get a chance to read them then. They read mostly the editorials and the ‘Hair-Down’ column and some oY the articles of a more general nature. I hadn’t thought of it before, — that we have wo men readers. But I am convinced now that we have. And it’s a very nice thought.” Well, since he put it that way, we didn’t jeer. “It does something to me. It will humanize my job now that I can think of men and ivomen readers. Not that I recommend starting a cooking or housekeep ing section, of course. But some how the thought will soften and mellow the spirit. . .” “Soften is right!” said we. Exclaimed the editor: “Is there no one around here with a touch of feeling, any sense of gallantry?” BROKERAGE COMPANY TALKING about the ladies, —it was a cheerful group of Chamber members’ wives who on the morning of September 29 inaugurated the new Coffee Shop on the Chamber’s premises. A spe cial committee composed of Mrs. Parish, Mrs. Newton, and Mrs. Most, assisted by Mrs. Willimont, the office-head, did a fine job in making the place a really attrac tive clubroom,—light, airy, com fortable, and quiet. Some fifty or more of the ladies attended, played a little bridge, talked, and had coffee, sandwiches, cake, and what other home-made good things are now provided there. (In view of what the editor had said about the reception he at tended, we took especial note of the fact that on this occasion, at least, none of the ladies took any notice of him.*) The place is now open to mem bers and accompanied guests, and the wives, of course. A chit system has been established to eliminate cash-handling problems. Bills will be sent out at the end of each month. Editor's note:—Ib that so! I was at my desk and probably looked too busy. 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) October, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 461 Be Wear And speaking of men and wo men, a friend sent in a note which read as follows: “Life is never dull. Here is the latest: Labor in the United States is now demanding a one-week 'Paternity’ leave with pay. 1 repeat, ‘Paternity.’ ” Perhaps this is to be taken as a modern equivalent of the ancient classical and primitive couvade, a custom which required a man to go to bed at the birth of his child, fast and groan, all with the idea of emphasizing his paternity and making birth easier for his wife. We received the following letter from a reader of the Journal who asked us not to use his name: “In connection with the statement in the editorial in the September Journal on the United Nations Declaration of Human Rights that this is ‘not binding law’, I came across the following para graph in Secretary-General Trygve Lie’s introduction to the fourth annual report on the work of the United Nations, which is very much to the point: " 'It is true thnt this Declaration is not law, but neither have been many of the most in fluential documenta of history. The United States' Declaration of Independence, and France's Declaration of the Rights of Man were not laws when they were proclaimed. The finest name in watch bands. It’s here! The completely flexible watch band for men. Adjust comfortably to any wrist — any watch. Thin as a dime. Looks like a million. Choice, if you wish, of 1/1014 Kt. gold filled, or 10 Kt. Stainless Steel Lined — Never Gets Weather-Beaten! Exclusive Distributors: OCEANIC COMMERCIAL, INC. (Levy & Blum) Manila's Leading Jewelers 35 Plaza Sta. Cruz, Manila Tels. 3-21-51 & 3-21-52 Cebu City Branch: Gotiaoco Building, 4 Comercio Street. " 'Nevertheless, the .Universal Declaration of Human Rights has behind it the force of public opinion, and public opinion is the source of all law whether it be national or international. The Declaration sets a standard for Governments to live up to. Ita power for good is incalcucr people are deprived of freedom lheir beliefs, wherever there is disbeenus-j of the color of a man's skin wherever people do not their children, and seof illness, accidents, and old age. " 'The Declaration, furthermore, is only the first, although the most important, of the steps being taken by the United Nations to extend respect for human rights more widely in the world.' “ ‘The Declaration has behind it the force of public opinion’. We in the Phil ippines should remember that. Our So licitor General should remember that. Did you send him a copy of your Sept ember issue?’’ We did. Mr. Stevens, President of the Chamber, a great kidder but with a heart of gold, and a power be hind this Journal, has left us for a while to go on another visit to the home country, and all we can think of now in our depression is that he has promised to be back before the end of the year. May the great planes which will bear him and his wife through the skies be strong of wing. C. F. SHARP & COMPANY, INC. STEAMSHIP OPERATORS — AGENTS SHIP BROKERS GENERAL ORIENTAL AGENTS: WATERMAN STEAMSHIP CORPORATION Mobile, Alabama THE IVARAN LINES — FAR EAST SERVICE (Holler-Sorensen — Oslo, Norway) PACIFIC ORIENT EXPRESS LINE (DITLEV-SIMONSEN LINES) Norway (TRANSATLANTIC STEAMSHIP CO., LTD.) Sweden GENERAL STEAMSHIP CORPORATION San Francisco SIMPSON. SPENCE & YOUNG New York V. MUELLER Kobenhavn, Denmark Head Office: .'•TH FL., INSULAR LIFE III.DG. MANILA, PHILIPPINES TEL. 2-87-29 2-9G-17 Brandi Offices: SAN FRANCISCO—SHANGHAI SINGAPORE—PENANG TOKYO—YOKOHAMA NAGOYA—OSAKA SHIMIZU—FUSAN (KOREA) Cable Address: "Sl'GARCRAFT" all offices Automatic Calculators To all who need accurate figures in a hurry, •• PHONE OR WRITE US FOR DEMONSTRATION ON YOUR OWN WORK SMimmL^cOro. TRADE AND COMMERCE BLDG, MANILA Tel. 2-69-71 462 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1949 AMERICAN PIONER LINE on orders originating in Eastern United States UNSURPASSED SHIPPING SERVICE TO AND FROM ATLANTIC COAST PORTS “via PIONEER LINE” Agent: UNITED STATES LINE COMPANY Port Area, Manila Tel. 2-66-02, 2-70-47, 2-76-49 Philippine Chamber of Commerce Program. .. (Continued fiom page 458) labor disputes that may arise and to find and suggest means of re moving the root causes of such disputes. 11. Mv last but not the least point is my desire to have the full support of the entire membership of the Chamber of Commerce of the Philippines. I am giving as much time as I can to the perform ance of my duties and responsi bilities as head of this premier organization, but I knop I will not make a headway unless I get the full support cooperation., sympathy and goodwill of the members of the Chamber who have conferred upon me the signal honor of elevating me to the position of read of the organization. Subscribe to the Journal and keep your files com plete. Republic of the Philippines Deportment of Public Works and Communi cations BUREAU OF POSTS Manila SWORN STATEMENT (Required by Act No. 2580) The undersigned, A. V. H. Hartendorp, editor and manager of the American Chamber of Commerce Journal, published monthly in English at the Office of the American Cham ber of Commerce of the Philippines, Manila, after having been duly sworn in accordance with law, hereby submits the following state ment of ownership, management, circulation, etc., which is required by Act No. 2580, as amended by Commonwealth Act No. 201: Editor, A. V. II. Hartendorp, ■104 El Hognr Filipino Building, Manila Business Manager, A. V. H. Hartendorp 404 El Hognr Filipino Building, Manila Owner, American Chamber of Commerce of the Philippines 404 El Hogar Filipino Building, Manila Publisher. American Chamber of Commerce of tho Philippines 404 El Hogar Filipino Building, Manila Printer, Carmelo & Bnuermann, Inc.' 2057 Azcarraga, Manila Stockholders owning one per cent or more of the total amount of stocks: None. Bondholders, mortgagees, or other security holders owning one per cent or more of the totul amount of security: None. Total number of copies printed and circu lated of the lust issue, dated Sept., 1949: Sent to paid subscribers .................... 800 Sent to other than pnid subscribers . 1200 Total .................77. 2000 (Sgd.) A. V. H. Hartendorp Editor and Manager Subscribcsl and sworn to before me this 2sth day of Sept., 1949, at Manila, the af fiant exhibiting his Residence Certificate No. A-49130, issued at Munila on January 17, 1949. G. V. McClure Notary Public Until December 31, 1050 Doc. No. 54 : page 2: Book No. 36; series of 1949. consider offset FOR YOUR SALES LITERATURE POSTERS • HANDBILLS FOLDERS • LABELS printing FOR MORE SPEED ♦ MORE VOLUME MORE VERSATILITY Carmelo & Bauermann, Inc. < OFFSET LITHOGRAPHERS • PRINTERS 2057 AZCARRAGA • MANILA, PHILIPPINES B.F. Goodrich Tires GIVE LONG MILEAGE • Inside and out, B. F. Goodrich tires are built to give long mileage. Note the broad, flat tread that grips the ground and spreads the weight of your car over a wider road surface. A tough extra layer under the tread protects against road shocks. For longer, safer mileage, buy B.F.Goodrich tires. AVAILABLE AT YOUR GOODRICH DEALERS GOODRICH INTERNATIONAL RUBBER COMPANY Access NATIONAL CITY BANK offers quick access to world markets through 48 overseas branches of to the its own—more overseas branches than those of all Markets other American banks together. In addition it has long established correspondent relationships with of the important banks throughout the world. World CLARK FIELD THE NATIONAL CITY I ANI or new y<ii First in World-Wide Banking Iiranchcs in the Philippines MANILA Main lhaiirh: Juan Luna Street Port .I’Vn Iiranch: 13th Street CEBU 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 60,000 kilowatts available to supply the increased demand for electricity in Manila and its MANILA ELECTRIC COMPANY 134 San Marcelino, Manila G-E lamp reiearch it conitontly at wort to give you more light foe leti money, to mote G-E tempi itay brighter longerl Be lure your lamp ii G-E... for utmoit light value and economy. GENERAL® ELECTRIC 120 13th Street. Port Arao. Mania Tel. 2-9S-31