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 XXVI (No. 3) March 1950
Year: 1950
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 Paul H. Wood, President; R. J. Newton, Vice-President; C. R. Leaber, Treasurer; J. H. Carpenter, C. H. Hirst, Paul T. Millikin, N. Most, J. A. Parrish, and E. A. Perkins. Marie M. Willimont, Executive Vice-President; I. T. Sa Imo, Secretary Vol. XXVI March, 1950 No. 3 Contents Page 91 92 92 94 94 96 97 97 98 Editorials— The Proposed Joint Economic Commission.................................................................................................................................................. American Help and the Philippine Future.................................................................................................................................................................................. Point Four: What it is and What it isn’t..................................................................................................................................................... The Tanada Bill Again...................................................................................................................................................................................................................... Meaning of the Coin Shortage........................................................................................................................................................................................................ Annual Report of the Philippine American Chamber of Commerce (New York)......................................................................................................... The Jaycee World Congress in Manila........................................................................................................................................................................................ Messrs. Sy Bn and Sycip......................... ....................................................................................................................................................................... Controls versus Production............................................................................................................ Paul H. Wood................................................ Expansion of the Philippine Manufacturing Company (Possibilities for Export of Finished Coconut-Oil Products)............................................................................................ Paul T. Millikin............................................ 100 The Business View— Office of the President of the Philippines.............................................................................................. Banking and Finance.................................................................................................................................... Stock Market...................... ............................................................................................................ Credit................................................................................................................................................................ Electric Power Production.......................................................................................................................... Real Estate.............. ................................................................................................ Port of Manila.................... ........................................................................................... Ocean Shipping and Exports...................................................................................................................... Inter-Island Shipping................................................................................................................................... Lumber.............................................................................................................................................................. Mines............................................................................................................................................. Copra and Coconut Oil. . ....................................................................................... Desiccated Coconut...................................................................................................................................... Sugar................................................................................................................................................................. Manila Hemp (annual figures).............................................................................................. T obacco........... Imports............................................................................................................................................................. Automobiles and Trucks (annual figures)........................................................................... Food Products (International Wheat Agreement)........................................................... Textiles (annual figures)........................................................................................................... Legislation, Executive Orders. Court Decisions.................................................................................... Philippine Safety Council............................................................................................................................ Fires and Fire Losses, Manila, 1946-1949 (table) Other Chambers of Commerce Philippine Chinese General Chamber of Commerce................................................................. Executive Order No. 302..................................... Cost of Living Index, 1946-1950 (table). The “Let Your Hair Down” Column ... Official Source.................................................... R. E. Russell................................................... R. Ewing............................................................ W. J. Nichols................................................... J. F. Cotton........................................ ,............ C. M. Hoskins.....................................’............ E. W. Schedler............................................... F. M. Gispert.................................................. D. M. Cameron................................................ L. J. Reyes.................................. ..................... C. A. Mitke...................................................... M. Igual and K. B. Day............................. H. R. Hick......................................................... G. G. Gordon................................................... F. Guettinger................................................. L. A. PujALTE........................................................ L. S. Kraemer.................................................. K. E. Gay........................................................... C. G. Herdman................................................ L. W. Wirth..................................................... E. E. Selph....................................................... F. S. Tenny....................................................... 102 103 104 104 104 104 105 106 106 106 107 108 110 112 113 115 115 117 119 121 122 123 ............................................................................... 125 President of the Philippines.......................... 126 Bureau of the Census and Statistics........... 127 50 CENTAVOS THE COPY ............... 128 FIRST IN QUALITY/ BETTER THAN EVEN I Achievement after achievement—such is the colorful saga of MOBILOIL... the motor ... MOBILOIL ... the oil that’s FIRST IN HISTORY—FIRST IN QUALITY! Al Till TRIPL£ ~action NEW Mobiloil iMobilgas STANDARD - VACUUM OIL COMPANY Editorials “ ... to promote the general welfare” The Proposed Joint Economic Commission Probably the most hopeful development in many a moon in the field of Philippine-American economic relations was the announcement made simul taneously in both Washington and Manila by the American and Philip pine chief executives that a high-level Philippine-American economic com mission will shortly be created to advise on the establish ment of a sound and well-balanced economy here. President Quirino returned to Manila from the United States on Saturday afternoon, February 11, and made the announcement on his part that evening in Malacanan, and President Truman’s announcement in Washington, as reported in a press dispatch, bore the same date, both appearing in the Sunday papers. This promptitude, sug gestive, indeed, of haste, is doubtless indicative of the urgent importance given to the matter by both the Amer ican and Philippine heads of state. The Manila report of President Quirino’s announce ment ran, in part— “President Elpidio Quirino will start shortly a scries of conferences with American Ambassador Myron Cowen to take up the organiza tion of a proposed joint top-level Philippine-American Commission to map out a comprehensive and complete blue-print for Philippine economic development in accordance with the understanding reached between President Quirino and President Truman in Washington, it was learned last night in Malacanan. . . “As soon as President Quirino and Ambassador Cowen reach an agreement, the proposed joint body will be immediately organized. Malacanan expects the Commission to be organized by the middle of March. . . It will be composed of ten members,—five Filipinos and five Americans . . . headed jointly by American and Filipino chair men. . . President Quirino will choose from local businessmen and pro fessionals as Filipino members.” According to the Washington report, President Tru man “favors the idea of a high-level American commission to the Philippines to advise on economic rehabilitation.” “Mr. Truman is said to be seeking a man of the caliber of Detroit bank president Joseph Dcdge, who carried out a similar mission to Japan. . .The Commission to be appointed would be one of considerable stature. President Truman’s attitude, according to sources close to him, was that this matter must be approached vigorously.” It will interest members of the American Chamber of Commerce of the Philippines to learn that the idea for forming some such commission originated in this Chambci and was taken up by the Vice-President of the Philippine American Chamber of Commerce in New York in a letter to the members of the New York Chamber. Mr. Koch wrote: “One suggestion which deserves the support of the entire member ship of this Chamber is that a small, top-level, non-political, permanent joint Philippine-American economic commission be established to study, recommend, and follow-through on measures for the attainment of a sound and well-balanced economy in the Philippines.” The proposal was called to the attention of Mr. Jose Yulo just before he left Manila for the United States with President Quirino, and was discussed with him in New York by officers and directors of the Philippine-American Chamber and the National Foreign Trade Council there. The present plans appear to be a development of this preparatory work. The local planners had a less official body in mind, voluntary, chiefly local, and more or less permanent, but in some respects the present plan appears to be an improvement since more heed is likely to be paid to an official group such as Presidents Truman and Quirino appear to have agreed upon. It is not amiss to enter a word of caution. Our past experience with joint governmental commissions has not been an entirely happy one, especially when the make-up was either too political or too technical and professorial, which often results, in the first case, to a spreading out of genial platitudes and, in the second, to .theoretical and impractical generalizations. Advantage, too, has some times been taken of recommendations more or less tenta tively advanced by the experts, which have later been given too radical an implementation in practice. Reassuring, however, is Mr. Truman’s reference to such a man as Mr. Dodge and Mr. Quirino’s statement that he will look for his appointees among the businessmen and professionals. But only the thought that American and Filipino leaders see the need for such a body as is proposed, and that they feel that it is so urgent that it get to work im mediately, is a most heartening thing in these desperate days. 91 Two prominent and able friends of the Philippines have recently spoken up in the United States for the Philip pines in its present situation, both American Help of them emphatically bringing out and the Philippine the fact that the Philippines is Future worthy of continued American in terest and assistance. Former Ambasador Emmet O 'Neal made a statement which was introduced into the Congressional Record. It read in part. “There is no spot on earth more potentially important to the cause of future world peace and human freedom thsfti the Philippines. A successful Philippines can affect the thinking of the Eastern.world more than propaganda from any source. . . The Philippines are on the doorstep of China, Malaya, Indonesia, Japan, Si’-n, and other populous countries. “The leadership of all those awakening nearby countries are watch ing with extreme interest the progress of democracy in the Philippines. To them it is a demonstration of the democratic way of life in the Orient, and it carries with it implications as to the value of American friend ship and cooperation. They are watching to see if democracy can suc ceed in Asia. . . “If the Philippines succeeds in demonstrating that its democracy is bringing all the freedoms to all its people, and a better life to its citizens than any Asiatic country ever saw, it could lead countless millions to demand a true democratic government. In this way the chances of peace in the decades to come would be enhanced greatly. . . “America .should give the greatest consideration to the Philip pines as a matter of duty and enlightened self-interest. . . “What will it mean to America in the future and to world peace, to have the Philippines a powerful, successful, happy, and free dem ocracy, showing the way in Asia to a better life through a democratic process! “ If our foreign policy is to bring results, we must think in terms of decades rather than years. In our Asiatic foreign policy, if we recog nize the importance of the Philippines and think in terms of five and ten years, we will advance the cause of democracy beyond our present power to evaluate. . .” Dr. Frank A. Waring, Chairman of the Philippine War Damage Commission, made the other statement, urging, according to a press report, “ ‘continued interest and sympathetic consideration’ of Philippine problems during the crucial last half of its ten-year reconstruction program”. He said, in part: “The United States, in my opinion, can not afford a failure in the Philippines because of the new Republic’s importance to United States foreign trade, its relation to the cause of democracy in the Far East, its strategic militaryjlocation, and the valiant aid which countless Fili pinos. . . rendered to the allied cause. “With adequate capital, efficient management, and technical skill, the Philippines could well become one of the world’s favored lands,—a garden spot in the Far East...” The reader will note that both the statements made as to the future of the Philippines are conditional,—“if” so and so, the Philippines “could become”, etc. In that connection, the recent words of Secretary of State Dean Acheson have the most solemn bearing: ”... That leads me to the other thing I wanted to point out and that is the limitation of effective American assistance. American as sistance can be effective when it is the missing component in a situa tion which might otherwise be solved. The United States can not fur nish all these components to solve the question. It can not furnish the determination, it can not furnish the will, and it can not furnish the loyalty of a people to its government. But if the will and if the deter mination exist, then, and not always then, is there a very good chance. In that situation American help can be effective and it can lead to an accomplishment which could not otherwise be achieved.’’ Secretary Acheson, in the foregoing paragraph, spoke of American assistance in general, rendered anywhere in the world. But he spoke of the Philippines in particular when he said, in the same speech: “. . . Here again we come up against the matter of responsibility. It is the Philippine Government which is responsible. It is the Philip pine Government which must make its own mistakes. What we can do is advise and urge . .. We can not direct, we should not direct, we have not the slightest desire to direct. I believe that there are indica tions that the Philippines may be facing serious economic difficulties. With energetic, determined action, they can perhaps be avoided or certainly minimized. Whether that will be true or not, I can not say, but it does not rest within the power of the American Government to determine that. We are always ready to help and to advise. That is all we can and all we should do.” Important as the Philippines is to the United States in various ways, to world peace and the cause of democracy, and whether or not the United States could “afford a failure in the Philippines”, the issue must finally depend, irrespective of any help the Philippines may receive, upon the people of the Philippines themselves. For that matter, a strong people would not want it otherwise. They accept the responsibility and stand up under it. As the historian Toynbee has shown in his monu mental study of the rise and fall of nations and civiliza tions, a rise has always resulted from a vigorous and effec tive response to some dangerous challenge, under creative leadership and not under some merely “dominant” mi nority which must sok^T later lose power. Hidden in that still to appear in time, lies the fate of the Phi’»' * «s and all it may mean to other peoples of the '/orlu. Point Four: What it is and What it isn’t. Point Four, in the four-point “Program for peace and freedom” which President Truman laid down in his inau gural address delivered on January 20 of last year, was worded by him as follows: “Fourth, we must embark on a bold new pro gram for making the benefits of our scientific ad vances and industrial progress available for the improvement and growth of under-developed areas”. To provide the frame for this statement, we may recall here that the President gave, as Point One, that America would continue to search for ways to streng then the authority and increase the strength of other part ner countries,—the old and the new nations being formed; as Point Two, that America would continue its programs for world recovery, which include “keeping our full weight behind the European Recovery Program” and additionally providing “military advice and equipment to free nations which will cooperate with us in the maintenance of peace and security”. Then came Point Four. Enlarging on Point Four, the President said in part (italics ours): “The United States is pre-eminent among nations in the develop ment of industrial and scientific techniques. The material resources which we can afford to use for the assistance of other peoples are limited. But our imponderable resources in technical knowledge are constantly growing and are inexhaustible. “ I believe that we should make available to peace-loving peo ples the benefits of our store of technical knowledge in order to help them realize their aspirations for a better life. And, in coopera tion with other nations, we should foster capital investment in areas needing development. “Our aim should be to help the free peoples of the world, through their own efforts, to produce more food, more clothing, more materials for housing, and more mechanical power to lighten their burdens. “We invite other countries to pool their technological resources in this undertaking. Their contributions will be warmly welcomed. This should be a cooperative enterprise in which all nations work together through the United Nations and its specialized agencies wherever practicable. * It must be a world-wide effort for the achieve ment of peace, plenty, and freedom. “With the cooperation of business, private capital, agricul ture, and labor in this country, this program can greatly increase the industrial ability in other nations and can raise substantially their standards of living. “Such new economic developments must be devised and controlled to benefit the peoples of the areas in which they are established. Guar antees to the investor must be balanced in the interest of the people whose resources and whose labor go into these develop ments. “The old imperialism—exploitation for foreign profit—has no place in our plans. What we envisage is a program of development based on the concepts of democratic fair-dealing. “All countries, including our own, will greatly benefit from a constructive program for the better use of the world's human and natural resources. Experience shows that our commerce with other countries expands as they progress industrially and econo mically. by the technical aid woa approved 92 “Greater production is the key to prosperity and peace. And the key to greater production is a wider and more vigorous application of modern scientific and technical knowledge. . .” In a special message to Congress on June 24, the Pres ident recommended the enactment of legislation to imple ment the plan, and two separate administration bills, assigned to different committees of each House of Congress, were introduced. The House bill was recently (February) reported for action by the foreign affairs committee. It envisages an expenditure of $35,000,000 for one year’s operation in providing experts to assist development pro jects abroad, including public health programs, power and flood-control projects, and agricultural and industrial development projects, and an additional $10,000,000 to continue United States participation in the technical co operation programs authorized under the Institute of Inter American Affairs (1947) and under the U.S. Information and Educational Exchange Act of 1948. The other, complementary, bill ha^also passed the banking and currency committees of both Houses and would grant broad powers to the Export-Import Bank to guarantee United States private capital against risks “pe culiar to such investments”. Meanwhile a third bill, offered as a substitute for the administration measures, omits such a guarantee but would seek to create a more favorable climate for American in vestments abroad by requiring foreign countries desir ing assistance to enter into treaties and agreements assuring (1) fair treatment of American private capital, (2) convertibility into dollars of local curren cies derived from these investments, and (3) avoid ance of double or discriminatory taxation * Govern ment loans would also be authorized, under this condition, if private capital were not available. The bill would create a Foreign Economic Development Administration within the Department of State, together with an advisory board of American citizens. Joint commissions in collabo ration with foreign countries for formulation of economic development programs would be authorized. The facts in the preceding paragraph were taken from a brochure on the Point Four Program which was prepared by the Chamber of Commerce of the United States, and no doubt provide some of the background behind the recent announcement, made separately by President Truman and by President Quirino, that a joint economic advisory committee would be created for the Philippines shortly. It is the topic of another editorial in this issue of the Journal. Although none of these bills have, at this writing, been passed, and although, even when they are passed, the actual appropriation bills would still have to be enacted, Acting Secretary of Foreign Affairs Felino Neri issued a press release early in February stating that three American experts from the U. S. State Department and the U. S. Department of Agriculture ** were coming to Manila in April to discuss with Philippine authorities the details of a program for this country under Point Four. A reference to an important statement made in Manila by Ambassador Philip C. Jessup, was included in this press release, as follows: "Considerable importance is attached to the forthcoming mission of the American experts in view of the United States decision to use the Philippines as a ‘pilot area’ in the implementation of the Point Four Program in the Far East. U.S. Ambassador-at-large Philip C. Jessup who was here on a four-day diplomatic mission two weeks ago, himself indicated at a policy conference with Foreign Office officials the United States intention to use the Republic as a ‘ show window’ for democracy in the Far East and as a demonstration area for President Truman’s ‘bold new plan’.” It goes without saying that the Point Four Program is or could be a most constructive one, but it should also be plain that it does not involve any large expenditure of American government funds in any foreign enterprise. The $35,000,000 to be appropriated is no doubt for ad ministration costs and for the salaries and expenses of the experts who may be sent to various countries. Unless the substitute bill, already mentioned, is adopted instead of the two administration bills, there will be no government loans made under the Program, and even under that bill, Government lending is unlikely. The success of the Point Four Program will depend on whether private capital can be induced to invest. And the fact of the matter is that spokesmen for private capital have so far shown no great enthusiasm in connection with the Program. An editorial in the February issue of Fortune states that “the chief danger in Point Four is the amount of rosy hoping and cloudy thinking that has surrounded it”, and raises the question whether President Truman has not “simply promised too much.” “The obstacles to private capital abroad are legion”, states Fortune: “In few undeveloped countries can you get your money out when you want it, and in fewer can you count on a stable exchange rate. Often the courts are unreliable, labor laws are arbitrary, taxes are dis criminatory, local monopolies are protected by law, local participation is required by law, and there is usually a threat or a history of exprc priations”. “Even if the State Department does its duty and wins for the investor the best treaties possible”, says Fortune, this still “will not mean plain sailing for United States capital or for the economic development of backward countries.” There are obstacles, “partly economic and partly social”, that “neither their governments nor ours can do much about”. Among such obstacles, Fortune lists poor sanitation and public health, poor farming methods and low diets, short life-expectancy, and a shortage of “native people capable of intermediate responsibility: the foremen, bookkeepers, field engineers, and the like whose non-existence reflects the failure of most backward coun tries to develop a petty bourgeois class”. Mr. Milo Perkins, former assistant to the U. S. Secre tary of Agriculture, in an article on Point Four in the Reader’s Digest for January, also touches on the lack of a middle cla^ in under-developed countries, stating that the petty industrialists and land-owners in such coun tries talk about “dollar imperialism” but that what they really mean is that “they don’t want any large-scale eco nomic development with its emerging middle class. . . They want large pools of cheap labor.” “We must not be ashamed to state our self-interests openly,” says Mr. Perkins. “ We should tell the world in unmistakable terms that a way must be found by like-minded peoples to work together to build recovery on a basis which can be self-supporting. So far as we are concerned, this means counting primarily on private capital. Many nations may not want to cooperate with us on this basis. That is their business; and we shouldn’t get provoked when we encounter ideas different from our own. Our policy should be to husband our resources for those countries which do want to build up productivity in the only way we know how to do it; through encouraging the individual to engage in competitive enterprise with the minimum amount of government interference. “We should negotiate treaties with like-minded countries which guarantee fair treatment for United States private capital when it goes abroad. All we want from these treaties is the simple assurance that our businessmen will be treated as fairly when they go to another coun try as the nationals of that country are treated when they come to the United States to engage in business. We are not entitled to preferential treatment and no responsible person suggests it. “Unless we get reciprocally fair treatment, however, and unless there is a chance to make a profit commensurate with the risks of doing business abroad, we are not going to invest our savings in factories in other lands. This is so elementary that it’s silly to pussyfoot on the issue with other nations.” Concludes Mr. Perkins: “World recovery requires more of this kind of private activity [such as that of the United States oil companies, the United Fruit Company, General Electric Company, and Sears, Roebuck] and fewer doles from the United States Treasury. If Point Four is ♦ * Dr. Roas E. Moore, Dr. Albert Moaeman, and Dr. P. V. Kepner. 93 to succeed, American business will also need more vigorous diplomatic support from our State Depart ment than it has received in the past.” The Chamber of Commerce of the United States, in the brochure already referred to, states that the established policies of the Chamber “justify a sympathetic attitude to ward the Point Four program’’, but that Chamber prin ciples “do not countenance waste or needless expenditure of funds in any program which may be inaugurated either at home or abroad”. A summary statement runs: “The Chamber specifically has warned against ‘industrialization at any cost’ in the less developed countries of the world. In this con nection, it has held that factors to be taken into account should include the establishment of political and economic security and equal justice for domestic and foreign traders, possession of or access to essential raw materials, necessary capital whether domestic or foreign, the re quisite technical personnel, the prospect of adequate markets for indus trial products either at home or abroad, the ability of industries thus fostered to survive without uneconomic trade barriers, and private rather than government operation.” Among the Chamber’s final recommendations are: “That the Government confine its technical aid projects to coun tries wher * there is a genuine desire and ability to cooperate and where there is no question as to conditions favorable for economic develop ment. . . “That the program of technical or other aid be restricted to coun tries which through treaties and agreements or financial guaranties provide assurance of fair treatment for American private capital. . .” This Jo rnal will not say that the Philippines will get no further United States Government assistance ad ditional to that still on schedule. It is possible, perhaps even likely, that a further inter-governmental loan may be negotiated for economic development purposes, but this could not be under more than a nominal application of Point Four policy. An inter-government loan, if it were to be agreed upon at all, would have the advantage of being comparatively quick and sure, which private investments under the Point Four Program would not be. But development under Point Four would in the long run be far more sound, enduring, extensive, and self-multiplying, than any piece-meal devel opment on the basis of a government loan could be, pro vided only the proper “climate” were established, and this rests with the Philippine people and Government. If the Philippines is to be a “pilot area” in the imple mentation of the Point Four Program, a “show-window” for democracy in the Far East, it rests largely with the Philippines, because the success of the Program will depend on cooperation and reciprocity, on the profit there will be in it for both sides. With the re-introduction of the Tanada Bill on the forced disposition of lands acquired by foreigners, we feel impelled to sound the warning once again The Tanada that the Supreme Court decision (not, we Bill Again claim, any of the provisions of the Consti tution) which this Bill seeks to implement, will strike foreign capital investment in the Philippines its possibly most deadly blow. It is true that under the interpretation given the Supreme Court decision in the notorious Krivenko Case by other high officials of the Government, American hold ings will not be affected under the present “Parity” pro visions, but this is a safeguard likely to be good for only a limited number of years. What could be more discouraging to capital than the fact that the investor could never own land here, - the land which he would develop as a plantation, the land on which he would erect a factory or a shop, even the land on which he would build his residence? The possibility of acquiring a sound title to any land necessary, is generally one of the first concerns of any one who is contemplating a new industrial or business venture. And speaking of a favorable “climate” for invest ment, what could produce a more vivid impression of a hostile climate than if any man who might come into the country learned that he would not even have the right to a small piece of land on which to build his private home, let alone his factory or mill or shop? We say again that such a policy is not in consonance with the Philippine Constitution, but traduces what is, in the main, a liberal, democratic basic law. We say that it is contrary, too, to the letter and spirit of the Universal Declaration of Human Rights, in the drafting of which, by the United Nations, the Philippines took so honorable a part. What, indeed, could be more cruel than forcibly to dispossess any resident here, of whatever race or na tionality, of the home he and his family occupies, in which, perhaps, with foresight and care for those dependent on him, he has invested all his savings, and which he has tended with the love It jride which go into home-making every where? Such -■ ^"inhuman and wicked policy, executed wholesale, under a mere color of law, would make the Philippines a by-word for its hostility to the aliens within its territories. Meaning of The Coin Shortage It is fortunate that there are members of Congress who understand the nature of our present economic and finan cial problems and who are ready to face them realistically and speak of them frankly. We refer at the moment espe cially to Senator Lorenzo Sumulong, worthy son of a worthy father, who according to the news papers at the time of this writing, is initiating a move in the Senate— “to amend the monetary reserve provisions of the Central Bank Charter so as to strengthen domestic as well as international confidence in the Philippine Peso. . . “Senator Sumulong said yesterday he planned to introduce a bill to require the Central Bank to keep a reasonable percentage, possibly 25 per cent, of its reserves in gold as is done in the United States. "Under the present Charter, the Central Bank is under no require ment to keep a definite percentage of its reseives in this stable metal..." —Manila Daily Bulletin, February 11. This proposal comes at a time, and is no doubt largely prompted by the growing shortage in the circulation of silver coins which became apparent recently and which is now (middle February) * creating not only great inconven ience but is leading to all sorts of charges in official quar ters as well as in the newspapers that this is the result of wilful hoarding and speculation on the part of “Chinese merchants”. The circulation of such charges and reports, together with the fact that many merchants, Chinese and others, find it actually impossible to make change, could easily result in rioting in which many innocent people would suffer injury. To single out one group in the population and to charge it with being responsible for what is actually a natural economic phenomenon under present conditions, is unfair and indicative of a lack of a sense of responsibility. There is hoarding but it is general, and, as is well known, for instance the conductors of certain bus-lines, Filipinoowned. are among those who simply refuse to make change, though it is obvious that after the first few runs of the day, the conductors must have collected enough coins to hand out some change when necessary. In a number of stores change is now being offered in the form of postage stamps and small “promissory notes.” There are no doubt a number of causes contributory to the disappearance of our silver coins. This is the season • As this issue of the Journal goes to press (early March), the coin shortage ap pears to have been pretty well overcome, at least for the time being, through the release of additional coins by the Central Bank, through appeals for confidence published in the newspapers, and through the introduction of legislation providing for the punishment of hoarders. These are all proper measures, but the shortage as a phenomenon of last month remains to be explained, as also the possibility of a recurrence. 94 of the year when there is usually some "shortage because the farmers are selling and being paid for their crops and it is a country custom to put away silver coins rather than paper money as safer to keep against the danger of fire. Also, once a shortage becomes noticeable, everyone, willy-nilly, becomes a hoarder. Every man who has to have some change for small purchases or for transportation or other such purpose, will do his best to see to it that he has some in his pocket. With several million people doing this and attempting to keep more change than they ordi narily would, a great quantity of coins naturally disappears from view; they are in people’s pockets. This is what an official of the Central Bank meant when he said that the cause of the coin shortage is “psychological”;—it is that, but it is also more than that. It is possible that there may be some individuals, perhaps even a “syndicate” such as is being talked about, buying up silver coins which, at the present price-levels, may actually be worth more than the monetary equivalent, * doing this buying either for such profit as there may be in it, or, as has also been suggested, for shipment to Formosa to help pay Chiang Kai-shek’s soldiers. The latter seems a pretty far-fetched guess, and as to the holding of large quantities of silver coins for hoarding or for sale at a profit as bullion, no such activity has actually been uncovered, and there may be nothing at all to any of this talk. But if it were true that silver coins are being hoarded and sold at a profit on the basis of the silver-content, which is considerably below the normal monetary value of the coins, then the real cause of the coin shortage would not be this speculation, but both the fact that the paper peso had greatly depreciated in value and the fact that a loss of confidence in the national currency was manifesting itself. This, indeed, may be one of the principal causes of the phenomenon, and Senator Sumulong, therefore, put his finger precisely on the weak spot in our present cur rency system,—the lack of a mandatory metal reserve supporting the currency, and proposed the proper remedy. The lack of a mandatory metal reserve has from the first threatened to be destructive of confidence, and a year ago, we stated editorially in this Journal: "January, 1949, marks an important point, a point of departure, in Philippine economic life. With the inauguration of the Central Bank, the currency and banking situation changes radically from that of a banking system which has been largely free and from a virtually automatic exchange currency standard, to a system of direct govern ment control over both currency and credit. . . "As the old banking system served the country well and as the Philippine currency under the former standard has been one of the few stable currencies in the world, it may truthfully be said that the new system, with all its obvious risks has not been hailed with excessive enthusiasm outside of certain government circles. . .” In the main, the country is still using the old pre independence Philippine notes, but merely as a convenience until new notes can be printed and these old notes can be retired. Last year the Central Bank issued the first of its new one-peso bills, printed in England on not-so-good paper and in a rather unattractive gun-metal black. It is generally known that the common people throughout the country do not much like them and call them “piso maitim”, the black pesos. The Central Bank would have been better advised had it printed the notes in some more cheerful color and had it, indeed, reproduced the appear ance of the old note as closely as possible in the new issue. ‘According to the Manila Times (February 19), "Currency profiteers and agitators tiptoe on sound business logic . . . Melted, one peso in silver coins amounts to !».76. At present blackmarket rates ( P2.8O to a dollar) a peso bill is worth P.71." The silver content of Philippine coins runs as Peso.................................................................... 50-centavo piece.............................................. 10.centavo piece . ................... fol lows: 20 grams (800/1000 fine) (750/1000 " ) (750/1000 ” ) (750/1000 " ) Central Bank figures show that most of the coins in circulation are silver pieces: P53.394.000 in 10- and 20-centavo pieces; P28.154.000 in 50 centavo pieces; and P19.299.000 in silver pesos. Only P12,459,000 are in 1-centavo and 5-centavo Public hesitancy in the acceptance of the new peso note is probably chiefly due to “aesthetic” reasons and because they are different from what the people are accus tomed to, as only the instructed among the people are likely to take notice of what is technically known as the “covenant” on this first, issue of the new currency. The old Philippine Peso note bears the following covenant or promise: “This certifies that there has been deposited in the Treasury of the Philippines One Peso payable to the bearer on demand in silver pesos or in legal tender currency of the United States of equivalent value.” This Peso was backed 100% by United States Dollars in the ratio of 2 to 1, the then existing laW requiring that the Philippine Treasury maintain a Treasury Certificate Fund in dollars at the rate of $1 for every P2 in circulation or available for circulation. This Fund was not in silver but in United States Dollars, which Dollars themselves were supported by a substantial gold and silver metalic reserve (the minimum being ’25 per cent and the actual generally much larger). The new Peso note bears the following covenant: “This note is a liability of the Central Bank and is fully guaranteed by the Government of the Republic of the Philippines. Thi? note is legal tender in the Philippines for all debts, public and private.” Nothing is said about any Treasury Certificate Fund or any metal backing, and the word “liability”, though, technically correct, does not have a reassuring sound. However, in effect, the old Treasury Certificate Fund has now become what is called the “International Reserve” which properly may be considered a reserve against the Philippine currency issue, as this issue, a direct liability of the Central Bank, is backed by the total assets of the Bank of which the International Reserve forms a part. But whereas the old Treasury Certificate Fund was a very stable one, not to be diminished except by retire ment of notes in circulation or available for circulation, the new International Reserve increases or decreases ac cording to the amount of foreign exchange which has to be bought or sold by the Central Bank and its agencies, as is required by the general balance of trade and of payments. The International Reserve goes down if Philippine pay ments exceed collections, and vice versa. In December, 1945, Philippine reserve funds amounted to $557,000,000. In January, 1949, when the Central Bank was established, the reserve amounted to $279,000,000. As of January 31, 1950, the International Reserve was made up as follows, according to a Central Bank report: Gold.................................................................................. F 2,935,162.93 Due from United States Depositories.................... 439,472,634.85 Foreign Currency (United States coins)................ 25,120.98 P442,432,918.76 As against this Reserve, the currency issue in notes and coins stood as follows on January 31, 1950: Notes.................................................... P540.849,900.00 Coins...................................................... 74,723,481.60 P615,573,381.60 As Central Bank authorities have pointed out, the Philippine currency, despite the large decrease in the total of the International Reserve, still has a very considerable backing, over 70 per cent, which exceeds the backing behind most national currencies these days. But because of the continuing excess of imports over exports, the Reserve continues to dwindle, and it is for that reason that exchange, control was recently imposed on top of the earlier controls on imports and credits. Some such control was evidently necessary to diminish the drain on the International Reserve, although such control is not a cure, and while the drain has been tempo rarily diminished, the restrictions placed on the converti bility of the peso is having most serious effects. Converti « 95 bility is the one thing of most crucial importance, not only in the maintenance of industry and trade but of the inflow of outside capital, and, finally, in the maintenance of confidence not only in the currency, but in the whole eco nomy of a country and in the wisdom of its management. As has been noted, Philippine currency is backed not only by the total assets of the Central Bank, whatever these may be, but is “fully guaranteed by the Government of the Republic of the Philippines”. This could be a very strong guarantee, just as the American Dollar enjoys all the world’s confidence though it has a metal backing of only 25 per cent. But if conditions arise which cause a loss of confidence in a government, in its political and financial stability, then there is a corresponding loss of confidence in the paper currency guaranteed by that government. As is well known, the Philippine Government has spent sums greatly in excess of its revenues,—partly from neces sity, partly in extravagance. The country as a whole, also, partly from necessity and partly in extravagance, has bought far more (in the form of imports) than it has been able to pay for (in the form of exports). As results: loan funds are being exhausted and the International Reserve is, or was, rapidly dwindling. Under these circumstances, we must accept the no doubt unhappy interpretation that the disappearance of the country’s silver coins is one symptom of a loss of confi dence in the Peso, not so much, in this case, a loss of con fidence on the part of aliens, but on the part of the people of the country, the common people, themselves. They are coming to think that silver money is at least better than the paper peso, so, whenever they can, they are holding on to the coins. It is an example of Gresham’s law at work, —the tendency of money of lesser intrinsic or imputed value to remain in circulation while that of some higher value is hoarded. For people to hold on to their silver is a rather pitiful thing for at best this gives them only little protection, coins constituting only around one-eighth of the total currency and the silver in the silver coins being ordinarily valued at much less than their monetary value. And the drain on the silver coins could be stopped quickly enough by issuing paper notes in small denomina tions, as is generally done in war-time, but even if this were done, it would still be to deal only with a symptom and not the disease. The coin shortage should be taken by the Govern ment as a grave warning-signal. It is a manifestation of a local reaction among the people themselves which, in a sense, is more serious than any reaction, outside of the Philippines, in foreign countries. It is a warning far more spontaneous, far deeper, far more unmistakable (if we only do not try to explain it away falsely) than a popular vote at an election. We may take it for granted that the Government will want to take every possible measure to restore the people’s waning confidence in the currency. It would not be enough merely to issue appeals against hoarding, and we say this although certain members of the American Chamber of Commerce very creditably took the initiative in organizing the Philippine and Chinese Chambers and the Philippine Media Association for the purpose of instituting, in coopera tion with the Central Bank, a publicity campaign against hoarding. That is a good thing, but neither such appeals nor the passing of laws punishing hoarders can result in anything but a mitigation of a symptom. To treat the basic cause, some such legislation as Senator Sumulong’s proposed bill should be adopted. The Government also should take even the most radical measures necessary to balance the budget. At the same time the Government should seize upon every available means to promote the rapidest possible increase in the national production and in the country’s exports. In such an all-out effort, the American Chamber of Commerce, as an organization and through its membership, will do everything possible to assist, and so, we are sure, will all the foreign business elements in the country, for certainly it is not to their interest to do anything else. Annual Report of the PhilippineAmerican Chamber of Commerce Mcnters of the American Chamber of Commerce of the Philippines who had an opportunity to see it, read with interest the 1949 Annual Report of the Board of Directors of the Philippine-American Cham ber of Commerce presented by Mr. the Vice-President. (New York), E. F. Koch, For those who did not have the opportunity, we shall quote a few paragraphs to show “how others see us”: In speaking of the economic situation in the Philip pines, the Report states: “The Philippine economic situation progressively deteriorated during 1949. At the close of the year, the outlook for 1950 was far from bright. Relatively mild import controls, mainly on luxury goods, were imposed January 1, 1949. These were followed by more drastic controls toward the end of the year. To these import controls were added, in November and December, first selective credit control and then exchange control. The latter suspended the free convertibility of pesos into dollars, the maintenance of which it had been expected would be insured to the mutual benefit of the Philippines and the United States, under the provisions of the Philippine Trade Act of 1946.... “The underlying factors that brought about the predicament in which the Philippine Government now finds itself are varied and com plex, but they are water under the bridge. Regardless of the causes, we are all facing an extremely confused situation which has for the present at least undermined confidence in the Philippines as an attrac tive field for the investment of capital and for other commercial opera tions. The mere removal of recently invoked controls will not be the cure, but the efficient and equitable administration of these controls and a flexible attitude on the part of the Philippine Government toward such liberal modifications as may be justified, will be of some temporary help. The basic need is further constructive long-range planning in which both the Philippines and pie United States should participate, including representatives of business from both countries. A more favorable climate should be created in the Philippines to attract the investment of private capital....’’ Commenting on the Chamber’s relations with the Philippine and American ’ Governments, the Report de clares: “As in the past, the Chamber has maintained friendly relations with the elected as well as the appointed leaders of the Philippine Gov ernment and with its diplomatic and consular representatives in the United States. The same applies to the government departments in Washington that deal with Philippine affairs. We have at all times found the representatives of both governments accessible and prepared to discuss Philippine problems frankly. In cases where we had construc tive suggestions to offer that were within the scope of established govern mental policies or regulations, there has generally been a disposition to be helpful to business interests. This has been especially true with respect to the Chamber’s day-to-day dealings with the Philippine Consulate General in New York.’’ With respect to the American Chamber of Commerce here, the Report remarks: “The closest possible contact has also been niaintained with the National Foreign Trade Council and with the American Chamber of Commerce in Manila, with a view toward coordinating policies, com plementing each other’s activities, and thus avoiding working at cross purposes...” In commenting on the fact that “with a less promising outlook for the Philippine economy shaping up during the course of the last year, it was expected that some firms with only a marginal or transitory interest in the Philip pines would drop their membership”, the Report expresses the hope that there will be no further loss, and concludes: “While the immediate outlook for the Philippines is clouded, the return of better days is hoped for, and it is precisely during a period like now that the Chamber can best serve its members by being of assistance in accelerating the arrival of these better days.” 96 The Jaycee World Congress in Manila As this issue of the Journal goes to press, the Fifth World Congress of the Junior Chamber of Commerce International, being held in Manila from March 1 to March 8, has not yet run its full course, but it is already a demonstrated fact that the Con gress here, attended by some 75 dele gates from 10 different nations, as well as by the members of the 22 Philippine chapters, will be recorded as a great success. The American Chamber of Commerce of the Philip pines, which shared with the American Embassy the honor of tendering a reception to the Jaycees, joined all Manila in welcoming the visitors and in congratulating the local body on its able management of this truly important affair. The Junior Chamber of Commerce movement, inau gurated in St. Louis in 1915, during the First World War, may be regarded as one of the most significant and hopeful developments in the field of free economic enterprise and in the field of Democracy itself. The movement spread very rapidly in the United States and in 1920 a national organization was established with a membership of around 300,000. It then spread to other countries and in 19(16, immediately after the Second World War, the International was established at the first world congress held in Panama City. Since then world congresses have been held each year,—successively in Dallas, Rio de Janeiro, Brussels, and now in Manila, though the local organization is only two years old. The most remarkable thing about this movement among the younger businessmen is the fact that it is highly idealistic and that emphasis is laid not on the narrower interests of business, but on the deep democratic interests which underlie a free economy. The Jaycee “Creed” reveals this clearly. It declares— (1) That the brotherhood of man transcends the sovereignty of nations; . (2) That economic justice can best be won by free men through free enterprise; (3) That government should be of laws and not of men; (4) That earth’s great treasure lies in human personalities; (5) That service to humanity is the best work of life. The Manila Congress is dedicated to “The preserva tion of world peace and the democratic way of life”. Plans are being studied to counteract the growth of communism and there is also a movement under way to secure the out lawing of the manufacture of uranium and hydrogen bombs. There are other plans to aid in the implementation of President Truman’s “Point Four”, in assistance to “dis placed persons” who are technicians, in the exchange of scholars and professors, and in various social and welfare movements, including the prevention of juvenile delin quency. Youth, strength, enthusiasm, civic spirit, worldmindedness,—these are the sterling and inherent qualities which the Jaycees naturally draw upon, and these should take them to great achievement. We are pleased to record here that Mr. Ramon V. del Rosario, President of the Junior Chamber of Commerce of the Philip pines, was unanimously elected President of the Junior Chamber of Commerce International, succeeding Mr. Theo Staar, of Bel gium. He was nominated for the office by Mr. Clifford D. Cooper, President of the United States national organization, and Mr. Hubert Harvey of Australia and Mr. William Fuller of Canada seconded the nomination. The Philippine delegation abstained from voting. Two other members of the Manila body were elect ed to International offices: Mr. Joaquin Gonzalez as SecretaryGeneral and Mr. Roberto Villanueva as Vice-President for Asia. Mr. del Rosario is General Manager of the International Busi ness Machines Corporation of the Philippines which is an active member of the American Chamber of Commerce. Mr. Villanueva is General Manager of the Manila Chronicle and Mr. Gonzalez is a member of the Law firm, McClure, Salas, and Gonzalez. Mr. William Fuller (Canada) was elected Vice-President of the International organization; Mr. Al Cahill (America), VicePresident for North America; Mr. Hubert Harvey (Australia), Vice-President for Oceania; and Mr. Paul Moreau (Belgium), Vice-President for Europe. Upon the election last month of Mr. Sy En as President of the Philippine Chinese General Chamber of Commerce, following the retirement of Mr. Alfonso Z. Messrs. Sycip, who occupied this position for many Sy En and years, Mr. Paul Wood, President of the Sycip American Chamber, wrote these two gentle men as follows: “Dear Mr. Sy: "Although we will miss seeing our good friend, Mr. Alfonso Z. Sycip, as often as has been our pleasure in the past, we are very happy to learn of your election to the Presidency of the Philippine Chinese General Chamber of Commerce. “On behalf of the Board of Directors of the American Chamber of Commerce of the Philippines, I wish to extend to you our greetings and best wishes and to assure you of our full intent to continue the close cooperative association with you and the Philippine Chinese Chamber. “Dear Mr. Sycip: “On behalf of the American Chamber of Commerce, may I extend to you our congratulations on your election as Honorary President of the Philippine Chinese General Chamber of Commerce and express also at this time our appreciation of the understanding and generous co operation we always received from you in business and civic matters during the many years you headed the Chinese Chamber as its Preident, which covered the entire life of our Chamber up to the present? “We join the members of your own community in saying of your long and active and able leadership, ‘Well done’, and trust that as Honorary President of your Chamber, we may all still expect a conti nuation of your public-spirited interest in Philippine affairs. “THE tremendous productive capacity of the United States continued to ship more t^n one the world’s exports and it imported over one-tenth of the world’s goods for its own ne s... “America’s vast economic present and future potential, the immense power to produce, particular secret formula. Producing more goods and services through the use of machme-pow P with a freely operating competitive capitalistic economy, has made this program possi e. Exporter. 97 Controls versus Production * * From an addreM at the San Beds College symposium on government import and exchange controls, March 4, presided over by Dean Jacinto Kamantigue, Col lege of Commerce, University of Santo Tomas. Other speakers were Governor Miguel Cuaderno, Mr. Gil J. Puyat, and Mr. Felix de la Costa. By Paul H. Wood President, American Chamber of Commerce Dr. Kamantigue, distinguished guests, AND MEMBERS OF THE FORUM I sincerely appreciate the invitation to come here today to represent the American business community, but I am going to take advantage of your hospitality to also appear as an exponent of people, both national and foreign, earnestly seeking the economic well-being and development of the Philippines. I feel that I have a right to do so for several reasons: First: While it is probably true that many of us Americans come here originally expecting to benefit economically, we soon find that our major interests lie here, that our best friends live here, that our families are raised here, and this becomes our home. You can be sure that such people continue to think and work for the common good of their fellow community members, regardless of nationality. I also feel that you will be interested in another reason. It has been my experience to live and work for various lengths of time in more than 50 countries other than the United States. This experience has included working under import, export, exchange, and other controls in many places and long before they were ever considered of possible applica tion in this country. I have found that it is the precept of such controls that they are of good intent, but that precedent is established by his torical pattern and that one control follows the other as a consequence. Generally, they are lined up as: 1) Export Control, then 2) Import Control, then 3) Exchange Control, then 4) Price Control, then . . . 5) I leave to you the research on the next. I have seen the good and the bad results of these controls in many other places, as well as here. I do not question the present justification in the import and exchange controls in the Philippines. They are vitally necessary today. We all agree that foreign trade is a two-way street. The world is running out of dollars because United States business is selling and exporting more goods than it is buying and importing. This dollar deficiency is being countered by loans, grants, payments, and various “plans.” Since the beginning of the first world war, when it first be came necessary, the United States has progressively become more and more self-sufficient; and today that is one of the main causes of the world dollar shortage. In the years preceding the last war, the Philippines enjoyed a favorable trade balance. Goods exported re turned more foreign exchange than was required for the payment of imports. Today, that condition is totally reversed. In the Philippines, our exportable goods have not yet reached the saturation point of exports to the United States. We have yet to become self-sufficient in the basic foodstuffs we produce, or fully to supply from our mines, forests, and factories the demands upon us. I do doubt the advisability of some controls that have been imposed in this country before this time, and I spe cifically refer to export control which was placed into effect shortly after liberation and which included many items on which present foreign market demands have been irre vocably lost to this country. I am also certain that these export controls on the re-export of many imported items helped to bring about the elimination of Manila as a Far Eastern site for large scale import-export activities. This would have been a natural development for Manila in the trade between the United States and the countries of South Asia. The establishment of these firms here instead of in other Asian ports, particularly after Shanghai fell, would otherwise have taken place, and made for a great deal of local employment in the handling, proces sing, assembling, and shipping of such re-export merchandise. I can talk to you about these from personal experience. I do not want to be limited to speak of the effects of the exchange control regulations on the American business community, because the effects are exactly the same on all the Philippine business communities. The exception is in the effect on the American individual, which, while important to him, to his family, and his associates, is less important than the effects on the whole population and the na tional economy. In speaking briefly of the effects on certain American individuals it is necessary to consider: 1) Need to defray the expenses of children at school in the United States; 2) Need to maintain dependents in the United States; 3) Need to pay taxes, including those on real property, in the United States; 4) Need to remit life insurance premiums; 5) Need for travel funds for business trips and earned vacations; 6) Need to send savings to the United States to establish old age security. While some of these needs have been provided for in part by the present exchange control regulations, the concessions are far from satisfactory to the American individual living in the Philippines because they still donot meet his urgent needs. American business and Philippine business, as a whole, is concerned with obtaining dollar exchange: 1. To pay for imports made before December 9. These are the goods that we in the Philippines have consumed and paid for in pcflOB to the importer, who, however, has been unable to pay the people he owes the dollars to for the goods from the United States. 2. To pay for subsequent importation. There are established policies and practices by the Exchange Control on such matters, but they do not take into consideration consumption levels as against inven tories. The Exchange Control Board needs badly to be guided by a system that provides information on consumption demands or require ments so that it can reduce the amount of dollars not required for com modities already in excess of normal requirements, and be able to increase the amount of dollars available for commodities of which the country is in bad need. 3. To pay for machinery and raw materials to keep manufacturing concerns in operation, or to establish those needed, or to institute new processes that will provide dollar savings. 4. To remit dividends and profits. 5. To pay United States taxes. Exchange control is an intricate matter. To deter mine guiding policies and to set up an organization to im plement these policies is a tremendous job which will take unremitting effort over a period of time and which cannot be projected all at once. The policies and organization of exchange control have gradually acquired shape and as of now, many of the routine procedures to take care of some of the problems of both individuals and business, have been set forth. The Central Bank has taken a wise course in delegating authority to its authorized agents, the banks, to deal with quite a number of the functions of control. It is thus re lieved of many of the details which the authorized agents can handle expeditiously, and free to deal with unusual and exceptional cases and with the many important phases of exchange control which arise on a higher level. All controls cause disruption of business and hard ship. Some people and some businesses are hit more than others. Among the bad effects of exchange control, some of which cannot be avoided or corrected, are: 1) Less business volume; 2) Unemployment; 98 3) The complications in complying with the regulations, with much increase in paper work in offices; 4) Higher tax rates to offset other tax losses. I am particularly concerned with another application of exchange control. In the United States, 18% of the people produce the foodstuffs and the agricultural products not only consumed by the best-fed people on earth (which includes the other 82% of the population), but the 18% produce, in addition, enormous quantities of agricultural products for. export. The reverse of that condition is in effect in the Philip pines. Here, according to the latest statistics, more than 70% of the employable male citizens are engaged in agri cultural production and still are unable to feed themselves and the rest of the population from their labor. I would like to quote from a recent advertisement on the subject of “Food for the Toilers: “Today, feeding 19 million Filipinos should not be a problem. Modern machinery and new labor-saving devices make it possible to produce more from every hectare of land. This means abundance for all those who toil and a greater measure of comfort, security, and plenty for the Philippines.” When we think of mechanization of agriculture, we should include irrigation and the application of commercial fertilizers. The very foundation upon which this country must stand and grow will be established through the development of its agricultural and natural resources, and by the creation of an independent small farmer class. After more than 30 years experience in various parts of the world in assisting just exactly such developments, I am sorry to say to you that I do not see that program under full implementation here. There is a great deal of talk about industrialization. Industrialization is a natural consequence of a people’s self-sufficiency and the development of their natural resources. It comes naturally as a people are released from seeking a bare subsistence from the soil. It cannot and never will be successfully forced or imposed from the top down. In dustrialization can only become economically advantageous to the Filipino people as a natural consequence of an im proved agricultural production and a development of the basic resources of the country. As an Ex-G.I., I know that you need no proof of the continuing interest and the faith that all Americans have in the Philippines. We only have to remember our demon strated cooperation during the last war. Philippine problems are American problems, and if we work together they will be solved. 99 Expansion of the Philippine Manufacturing Company By Paul T. Millikin Director of Sales, Philippine Manufacturing Company The Philippine Manufacturing Company Plant in Tondo, Manila . ONE of the largest companies in the Philippines, spon sored by American capital, is the Philippine Manu facturing Company, * manufacturer of edible oil products and soap. Known throughout the Philippines as PMC, this organization is a wholly owned subsidiary of the Procter & Gamble Company, largest manufacturer of shortening and soap in the United States. The products of PMC are: Purico and Venus Shortening, Star Mar garine, Mayon Edible Oil, Luto and Perla Laundry Soap, and the well-known Camay Toilet Soap. In addition to these products, the company manufactures other brands of edible oil products and soap for export to various parts of the world. The company’s objective is to manufacture and dis tribute locally large quantities of these products at the lowest possible price. For this reason, the Philippine Manu facturing Company has pioneered in the installation of modern mass-production equipment and has set up an island-wide distribution service by means of a big fleet of •PMC started out in 1908 as the Manila Refining Company, established by Edwin Burke and Ernie Young, for the purpose of manufacturing soap. This com pany was incorporated as the Philippine Manufacturing Company on April 2, 1913, and a new plant was established in its present location, Tondo, Manila. Capi talized at P500.000, the objective of the company was to continue the production of soap. In 1914 the company got into the production of coconut oil by crushing some copra. It continued the manufacture of soap, and also started to manufacture candles. Its first edible product, a shortening named Purico, and a brand of edible oil was put on the market in 1920. F. N. Berry joined the company in 1919. In 1935, theProcter & Gamble Company purchased the PMC. During the war, the Japanese operated the plant until they ran out of fuel oil in 1944. The plant was completely destroyed in the fighting for the liberation of Manila. Rehabilitation began late in 1945. Purico trucks which stop at stores, large or small, and a strategically located network of warehouses to back up this service. The Camay Toilet Soap plant in Manila, which has just been completed and is now producing large quantities of quality toilet soap daily, is an example of PMC’s far sightedness, good planning, and execution, plus a bit of good fortune. At the outset, an installation of this type is an expensive thing. PMC has invested more than Pl,500,000 in this toilet soap venture. Fortunately, several years ago, before import and exchange control restrictions had become a fact and a new consideration for business decisions, PMC’s management had decided that it would be worthwhile to undertake a toilet soap plant installation. The most modern toilet soap-making equipment was ordered and plans were drawn up to erect the plant at the company’s present factory site in Manila under the super vision of local and American engineers. More than one year was required to complete the plant after the decision to invest had been made, but by January 1, 1950, the first cake of Camay Toilet Soap was passing through the paking line. This Camay Toilet Soap is in every respect equal to or better than the Camay Soap marketed in the United States. The same formula, care, and modern equipment are used to make this soap in the Philippines. Locally made Camay is no substitute. Its quality and the method by which it is made are real assets to the Philippine economy. 100 President Quirino of the Philippines received the first case of Camay Soap. Inasmuch as the President was con valescing in Washington, D.C., this first case of Camay Soap was flown via the Philippine Air Lines to the Pres ident. The President immediately wired back to Philip pine Manufacturing Company his congratulations for its outstanding achievement in quality and mass production. The PMC plant has had many visitors from all walks of life, including prominent business men, legislators, and most recently, the Seattle Chamber of Commerce dele gation. F. N. Berry, PMC Vice-President and General Manager, who has spent the major part of his life in the Philippines guiding the destiny of PMC, has recently announced another pioneering move in the form of an employees’ pension plan. This pension plan is one more stone in the solid foundation of PMC-employee relation ships. PMC employees work enthusiastically toward helping the Philippine Manufacturing Company to main tain its lead as the largest manufacturer of edible oil pro ducts and soap in the Far East. Purico Shortening has been the backbone of the com pany’s business. Since its establishment in 1913, the com pany has steadily expanded its line of products and volume, except for the war period when its plant was totally destroy ed. Its rehabilitation, started in late 1945, and its continued expansion have kept the growth-curve headed upward continuously. The activity of PMC is an already estab lished part of the Philippine industrialization program. Possibilities for Export of Finished Coconut-Oil Products LOCALLY produced copra (dried coconut meat from which coconut oil is extracted) is by far the principal raw material used for the Philippine production- of soap, shortening, margarine, and refined edible oil. Other items such a‘s hardening oil, resin, caustic soda, and part of the packaging supplies, all of which must necessarily be imported, are a quite small part of the finished-goods cost compared with copra. Thus, the soap and edible oil products industry is truly a vital factor in any national self-sufficiency program. It should be noted that edible-oil products made from coconut oil, a vegetable oil, are especially appetizing and overcome some of the difficulties inherent in similar pro ducts made from animal fats and oils. In particular, Philip pine margarine appears to be much more delirious as a table spread than margarine known to other countries. There would be many more opportunities to export large quantities of these coconut-oil products, were it not for these reasons:— 1. Inter-country trade barriers and restrictions. 2. Widespread lack of dollar exchange. 3. Current high cost of crude coconut oil compared with the cost of tallow, soybean oil, cottonseed oil, and other fats and oils used in competitive products manufactured in other countries. In the Philippines right now is enough plant capacity— 1. To supply the current per-capita consumption of fats and soap in the Philippines, and 2. To provide substantial quantities of finished products for export. Local producers want to export, but most countries in the sterling bloc or in countries short of dollar exchange, greatly restrict or prohibit importation of these products from dollar areas, since they have other sources and agreements. The few countries remaining that can still turn up dollar exchange, find our edible and soap coconut-oil pro ducts a luxury as compared with exports from the United States, for example. The reason is simple. The raw mate rials are a very large part of the entire product-cost. Cur rent quotations in U. S. cents are: Coconut oil 13-1/2/ (not including 3 U. S. i processing tax), cottonseed oil 12-3/8?!, soybean oil 12?!, lard 9-5/8/, as edible raw ma terials, while for soap you can compare coconut oil 13-1/2 i (not including 3 U.S. i processing tax) and tallow at 6-1/2 i. Some coconut-oil products can command a slight premium, but the spread cannot be that large and still turn up volume export business. In addition, the differential ocean freight costs from the Philippines to many countries widen the gap even more. Why is coconut oil currently priced so much higher than other fats and oils? Because world demand exceeds world supply for this particular oil. And why is that? 1. War-torn supply areas have not been completely rehabilitated. 2. Some of our own areas were given a bad setback by typhoons and disease in 1947, and have not fully recovered. 3. Apparently some producers and laborers are satisfied to produce less than maximum, as demonstrated by prolonged holidays, absen teeism, held-back production for market-strengthening purposes, and some lack of cultivation and replacement (plus some premature or post-mature picking of nuts). 4. The marketing channels are sometimes complicated. 5. The increase in demand for desiccated coconut has resulted in a situation where it is necessary for desiccated-coconut plants to go after nearby nut production aggressively and they are sometimes forced to reach out to remote parts of the Philippines. This means that both local edible-oil products manufacturers and desiccated-coconut plants are in stiffer competition for supplies than previously. 6. In a few instances, dissident activities have held up production and marketing. 7. While many pre-war foreign coconut-oil users have found sub stitutes and other sources of supply, it seems that new coconut-oil uses have been developed and new markets have appeared to soak up the decrease of demand from pre-war users. How does this affect the Philippine economy? The coconut export industry is of tremendous propor tions. In 1949 it is estimated that over $130,000,000 was turned up by this industry as a result of exporting copra, crude coconut oil, desiccated coconut, and copra cake. On a copra-equivalent basis, these exports amount to approxi mately 750,000 long tons. How does this affect the local manufacturer? 1. Since more than 85% of the copra made is exported as copra or crude coconut oil, the cost of raw material to Philippine manufacturers of edible oil-products and soap is governed by the whims of the world copra and coconut-oil market (which is currently relatively high). Not only does the situation force up export prices, but it also keeps local costs high. 2. In addition to the 10 or more large edible oil-products manufacturers, there are many “backyard” soap factories and small oil producers that go in and out of business monthly. They operate when the price of copra is low and stop when it gets higher. The obvious answer to this supply problem is— 1. More production of copra and improvement of quality. Any decrease of price, without increased prodution, will turn up less total dollars of foreign exchange; and 2. Streamlining of marketing channels. Improvement of these two factors should result in— 1. Lower prices for Filipino consumers of edible oil products and soap. 2. More opportunity for Philippine manufacturers to compete in the world market for both crude and finished products—expanded exports. 3. Less incentive for present world users of coconut oil to search for substitutes and other sources of supplies. 4. More solid foundation for future maintenance of this important foreign-exchange producing industry. 101 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines From an Official Source FEBRUARY 1 — In ceremonies at the Manila South Harbor, Vice-President Fernando Lopez accepts on behalf of the Govern ment a note from American .Ambassador Myron M. Cowen signi fying the formal transfer of the newly constructed Pier 9 from the United States Government. Speeches are made and Lt. Col. W. W. Ragland, district engineer of the U.S. Army Corps of Engineers which supervised the construction, congratulates and thanks the men who participated in the work. Members of the Seattle Chamber of Commerce Trade Delegation, which arrived today, call on the Vice-President to pay their respects. Director Pablo Lucas of the Bureau of Printing has urged the immediate purchase of printing machines to replace those lost in the fire last year as the Bureau’s present equipment is insufficient to cope with the growing volume of government printing; he also urges tjie training of some 200 new printers. Feb. 2 — Vice-President Lopez and a party of foreign diplomatic officials in the Philippines emplane for a tour to Iloilo and other southern cities. Earlier the Cabinet approves the draft of proposed legislation which would legalize and ratify the licenses and other fees and royal ties collected by the Sugar Quota Office, claims having been filed by private parties for refunds because of the Supreme Court decision which invalidated Executive Order No. 192. The Cabinet authorizes the Surplus Property Liquidation Committee to negotiate a loan from the Rehabilitation Finance Corporation to pay all its outstanding obligations as there are enough receivables to guarantee the loan. The Cabinet further authorizes the Bureau of Coast and Geodetic Survey to receive the equipment and supplies which the Manila Field Station of the U.S. Coast and Geodetic Survey is expected to turn over to the Philippine Government. The Department of Foreign Affairs announces that Minister Ber nabe Africa, accredited to SCAP, has formally taken his seat as Philip pine delegate to the United Nations Commission in Korea, taking the place of the former Philippine delegate, Dr. Rufino Luna. Disclosed that Central Bank Governor Miguel Cuademo sent a communication to the Vice-President urging the ratification of the International Wheat Agreement (deadline February 28); he states this would save the country over $4,000,000 a year, as the Philippines would be entitled to the world-price level on the commodity which is estimated by experts to be about $.50 less per bag of 50 pounds than the free market price. President Quirino certified to the urgency of the ratification in a letter to the Senate some time ago. Feb. 4 — Acting Foreign Secretary Felino Neri urges upon foreign policy leaders in the Senate the early enactment of an administration bill authorizing the President to conclude bilateral barter trade pacts with foreign countries as well as the speedy ratification of the Inter national Wheat Agreement. Neri states that Japan is already enjoying the advantages of barter agreements which SCAP concluded with 19 different countries. Under the proposed legislation the President could not increase or decrease existing tariff rates by more than 50% and such treaties would be limited to a tenure of 5 years. “Any barter pact to be concluded would not affect any of the provisions of the Philip pine trade agreement with the United States’’. Feb. 6 — The Department of Foreign Affairs announces that India has formally given notice to the Philippines its desire to enter into a bilateral trade treaty. Feb. 7 — Assistant Secretary of State for Far Eastern Affairs, W. W. Butterworth, arrives in the Philippines from Tokyo on his way to Bangkok to attend the conference of United States Far Eastern diplomatic officials to be held there beginning February 13, and confers during the day with Vice-President Lopez and Acting Foreign Secretary Feb. 8 — Vice-President Lopez receives the members of the Seattle Chamber of Commerce World Trade Group. Feb. 9 — In connection with a growing shortage in the circulation of silver coins, Vice-President Lopez states that Congress should im mediately pass a measure punishing hoarders. S. Wilson, retired U. S. Navy captain and Philippine war veteran, confers with the Vice-President to suggest the re-issue of notes to cover some P3,500,000 in notes burned by him in Lanao in 1942 to avoid capture by the enemy, the burning being witnessed by the late Pres ident Manuel Roxas, then a USAFFE colonel, Andres Soriano, then a USAFFE major, and General Ford. A delegation of the National Janitors and Watchmen Association of Manila calls on the Vice-President to petition for a raise in the mini mum wage from P95 to P125 monthly which pay would be equal to that now received by janitors in the employ of the City of Manila. Auditor General Manuel Agregado proposes the creation of a department in the auditing office for the auditing of government collec tions and of another department for the auditing of the accounts of government corporations. Canadian Consul General Frederick Palmer in a radio-cast over Station DZFM, as a guest of the Foreign Office, states that two prere quisites in the attraction of Canadian investors here are (1) an internal climate favorable to foreign investment, and (2) no impediment to the transfer of foreign earnings out of the country. A favorable climate should possess the following features: “Political stability, a sound budget, definite absence of threats of nationaliza tion of foreign assets, a reasonable tax structure, non-discrimination in the treat ment of foreign and domestic capital, and a favorable record in the treatment of foreign investment in the past.” Consul General Palmer also indicated that his Government does not contemplate entering into a bilateral trade agreement with the Philip pines. He said that Canada’s trading policy is based on “multi-lateralism”, and he emphasized that in recent years Canada has “successfully resisted all appeals from other countries to enter into bilateral arrange ments”. Feb. 10 — Secretary of Finance Crispin Llamado issues a state ment in reply to certain charges made by Senator L. Tanada, stating that the Philippines is “up-to-date in the payment of annuities and interest on its bonded obligations”. The Department of Foreign Affairs addresses a note to the Chinese Embassy expressing “Philippine concern over the alleged practice of Chinese nationals, particularly those living in Batangas, to hoard Philip pine coins and to spread “false rumors that the Philippine peso will be devalued". “It is therefore suggested in the interest of preserving the cordial relationship between the Philippine Government and the Chinese nationals in the Philippines that the Chinese nationals be advised to desist from the practice referred to above.’■ Feb. 11 — President Elpidio Quirino returns to Manila from the United States where he underwent a successful operation for kidney stone. In a brief address to those who came to greet him at the airport, he refers to the talks he had with President Truman, first at tea at Blair House and later at a White House conference, and reveals that he— “received assurances of America’s continued concern toward the Philippines and of effective support in its efforts to secure economic stability and national security." Feb. 13 — Announced that the present policy of the Rehabilita tion Finance Corporation of granting loans for real estate and building construction will be changed to a policy of granting loans primarily for economic development projects, as decided upon at a conference between President Quirino, Secretary of Finance Pio Pedrosa, RFC Chairman Delfin Buencamino, and Budget Commissioner Pio Joven. Feb. 14 — President Quirino issues Executive Order No. 302, amending Executive Order No. 227, to exempt from the Import Control construction materials needed for the completion of government pro jects financed by war damage funds. The President addresses a communication to Congress urging the passage of legislation to punish coin hoarders. Announced that the President’s Action Committee on Social Amelioration is extending assistance to some 20,000 people who have had to evacuate some 30 barrios of San Pablo City, Laguna, because of outlaw depredations. Feb. 15 — The President informs the Council of State that he has— “an understanding with President Truman that a Commission representing experts from both the United States and the Philippines would soon be established to pro mote closer and mutually beneficial economic coUaboration between the two counHe also tells the Cabinet he will name a commission shortly to advise him on the general reorganization of the government and of government corporations. He states he proposes— "the closest possible liaison and consultation between the Executive and Legisla tive Departments of the Government to assure maximum beneficial results during this session of Congress”. Under-Secretary of Foreign Affairs Neri, correcting press dis patches from Bangkok which referred to President Quirino’s South eastern Asia Union proposal as an “Asian anti-Communist pact", states that there has been no change in the basic objectives of the SEAU as enunciated by the President,—“political, economic, and cultural collaboration”. "President Quirino has emphatically announced time and again that the Philip pine idea of an association of democratic countries in thia part of the world is one based on regional peacetime cooperation and completely devoid of any military connotation." [Brig. Gen. R. B. Lovett, U. S. Veterans Administration manager, reveals that P110,975,373.02 in veterans benefits were distributed in the Philippines during 1949, including death compensa tion and pensions to dependents of deceased servicemen, disability compensation and pension to disabled veterans and their families, and readjustment and rehabilitation benefits to veterans in school or in job training. The number of payees registered at the end of the year was 66,044. Altogether, the total USVA payments through the Manila Regional Office since its establishment in 1946 approaches P250,000,000 ] 102 Feb. 16 — Secretary of Education Prudencio Langcauon reports to the President that his Department proposes the transfer of the sup port of intermediate grade schools to local governments and the levying of a specific school tax to meet the cost. It is also proposed to return to a seven-grade system, from the present six-grades, and to .abolish the double single-session program. S. N. Eisenberg, President of Eisenberg & Co., Inc. with head offices in Tokyo, calls on Vice-President Lopez in the latter’s capacity as Chairman of the Government Enterprises Council, in connection with plans to set up a ramie industry here. Feb. 17 — President Quirino issues Executive Order No. 303 “calling upon every inhabitant of the Philippines and mobilizing all government agencies and instrumentalities for the intensification of the national food production campaign”. Secretary Neri expresses Philippine satisfaction over the decision of the Australian Government permitting Sergeant Lorenzo Gamboa to enter Australia. Gamboa, married to an Australian woman, was last year refused permission to join his family there. Feb. 18 — Vice-President Lopez, in a speech before a meeting of fishery technicians at the Manila Hotel, scores the rampant use of dynamite in fishing here, declaring that this “illicit practice is a wanton destruction and spoliation” of the country’s fishery resources. Feb. 19 — Secretary of Agriculture Mapa announces that emphasis will be laid on increased production of local coffee and fruit in the present food production campaign. Feb. 20 — President Quirino signs the instruments of ratification of the International Wheat Agreement which will guarantee the Philip pines a fixed quota of flour and entitling the country to the world price estimated to be $.50 less per 50-pound bag than the free market price. Feb. 21 — The Cabinet approves a list of priorities in the allocation of dollar exchange prepared by a special committee composed of Secre tary of Commerce and Industry Balmaceda, Secretary of Agriculture and Natural Resources Mapa, Secretary of Public Works and Com munications Sanidad, Under-Secretary of Finance Llamado, Budget Commissioner Joven, and Central Bank Governor Cuademo. It also approves the recommendation of this committee to limit the disburse ment of dollars this year to the actual receipt of dollars from exports, from United States payments and expenditures here and from other inward remittances. The list includes items for food, shelter, clothing, medicines and medical supplies, education, for increasing exports, transportation, and for other industries, including industrial chemicals and machinery and materials for paper manufacture, the canning industry, household articles, soft drinks, etc. President Quirino assures a group of rice producers that the pur chase price of palay paid by the National Rice and Corn Corporation will remain at Pll a cavan. The NARIC desired to suspend further purchases unless the price was lowered to P9. The Cabinet directs the Department of Public Works to notify all architects designing government buildings to make use of locallymade items whenever possible. Feb. 22 — Secretary of Commerce and Industry Balmaceda states that a press interpretation that the issuance of the exchange priorities schedule is an “effort to salvage the rapidly deteriorating Philippine economy” is not justified. “Since the imposition of controls last December, the rapid drain on the country’s dollar resources has been checked, and Central Bank officials say that the immediate darfger of further drain on these reserves is now comparatively remote as a result of the existing controls . . . Central Bank economists estimated that during 1950 the expected total receipt of foreign exchange is about $58S,000,000. As of December 31, 1949, Central Bank dollar reserves amounted to $230,000,000. Not desiring to reduce this level of reserves, the Central Bank felt that in the pre paration of the foreign exchange budget, total disbursements should be limited to the estimated receipts of $585,000,000. This amount is by no means negligible. It represents more than three times the value of our prewar yearly disbursements of foreign exchange. It gives adequate allowance for the financing of government development projects, raw materials imports for existing factories, necessary remit tances for invisibles, as well as merchandise import of controlled and uncontrolled articles...” The Department of Public Works announces that the construc tion of a permanent grandstand on the New Luneta will begin soon. As the whole structure, seating 10,000 people, would cost P800.000, only the central portion, costing P250.000, will be built at this time. Feb. 23 — Announced that the Department of National Defense is considering the feasibility of establishing a small-arms and a small arms ammunition plant. Feb. 24 — Secretary of Agriculture Mapa informs the Cabinet that tests made in the manufacture of bags from saluyut have been very successful, and that such bags as a substitute for jute bags from India could save the country P15,000,000 annually. The Cabinet directs the Department of Foreign Affairs to lodge strong representations with the International Refugee Organization for the removal of the remaining refugees from Guiuan, Samar,—2,348 people of some 6000, most of them White Russians, sent there from China for temporary refuge. The departments of the Interior and of National Defense are also instructed to exercise more vigilance against the illegal entry of aliens which has increased since the intensification of the civil war in China. Feb. 25 — President Quirino reported to have issued a proclama tion setting aside 549,120 square meters of land owned by the People’s Homesite a,nd Housing Corporation along Timog Avenue, Diliman, Quezon City, for the site of the veterans’ hospital to be constructed from United States Government funds. Feb. 28 — President Quirino officially welcomes the foreign Junior Chamber of Commerce delegations which have arrived here to attend the Fifth World Congress of the organization to be held in Manila and Baguio, March 1 to 8. The group is headed by Theo Staar, of Brussels, President of the J. C. International. The President issues Administrative Order No. 109 creating a com mission to assist the President in the reorganization of the different executive departments, bureaus, and other entities of the Government, including the corporations owned or controlled by it; the Commission is composed of Ramon Fernandez, Chairman, and Luis P. Torres, Pio Joven, Jose Paez, Teofilo Sison, H. B. Reyes, Pablo Lorenzo, Aurelio Montinola, and Jose Gil, members. Vice-President Lopez asks approval of a Pl,000,000 overdraft for the National Tobacco Corporation to be used for purchase of native leaf tobacco, agricultural and other machinery, and the construction of curing barns and warehouses. Banking and Finance By R. E. Russell Sub-Manager, National City Bank of New York COMPARATIVE Statements of Conditions of the Central Bank: As of As of As of Aa of Jan. 31,'49 June 30 Dec. 1 Jan.31.‘S0 ASSETS (Tn thousands of pesos) CONTINGENT ACCOUNT Forward Exchange Sold............................................ P6.460 P 6,460 serve.................... P714.969 * P641.617 * P460,689 P442.432 Contribution to International Monetary Fund. 30,000 30,000 30,000 30,000 Account to Secure Coinage............... 113,106 113,306 113,306 113306 Loans and Ad vances.................. 77,047 ‘ 83,374 Domestic Secu rities 9,739 92,197 96,774 Due from Trea surer of Philip pines .................... 7,626 Other Assets......... 19,320 22,681 20,390 25,248 P877.395 P824.969 P793.629 P791.136 LIABILITIES Currency: Notes.. P621.521 P534.425 P555.576 P540749 Coins. . 73,035 74,283 74,384 74,723 Demand Deposits: Pesos.................... 169,351 135,438 117,682 128,571 Dollars................ — 40,649 * — — Securities Stabili zation Fund.... 2,000 2,000 2,000 2,000 Due to Interna tional Monetary Fund.................... 22,499 22,498 22,497 Due to Interna tional Bank for Reconstruction and Develop ment 2,389 2389 Other Liabilities. . 1,488 2,128 2,636 2,942 Capital.................... 10,000 10,000 10,000 10,000 Undivided Profits. — 3,537 6,464 7,161 P877.395 P824.969 P793.629 P791.136 ♦NOTE: The Demand Deposit liabilities in U. S. Dollars are deposits of the Treasurer of the Philippines which temporarily are being kept in foreign currency. These amounts are included on the Asset side aa part of the International Reserve. A comparison of the monthly statements of the Central Bank of the Philippines reveals a further drop in the International Reserve of over P 18,000,000. It had been hoped that the implementation of the Exchange Control regulations would accomplish a reversal, not merely a slowing of the downward trend which was so abrupt during September, October, and November of 1949. The full impact of the more stringent import control regula tions which came into force on December 1 was not reflected in January/February import figures. The back-log of 103 orders in December was not cleared and paid for until January and February. We look for a lessened demand for dollars in March to pay for imports. About the middle of February, the Rehabilitation Finance Corporation obtained an additional P5,000,000 loan from the Central Bank which brings its total borrowings from this source at present up to P25,000,000. These funds are in turn loaned by the R.F.C. for rehabili tation projects which it is hoped will increase the nation’s productivity. Circular No. 21 of the Central Bank pf the Philip pines offered some relief to the gold producers in that it requires them to sell only 25% of their production to the Central Bank at P70 an ounce, leaving them free to sell the remaining 75% in the local market, at prices currently quoted at P108-P116 an ounce. At the end of January little or no gold had been acquired by the Central Bank under the provisions of this Circular, but the February statement should show some increase in the gold holdings. There was a demand for silver coins during the last week of January and the first weeks of February reminis cent of 1945-46, during which period it seemed that the saturation point would never be reached. The Central Bank has advertised that the value of the silver content in these coins is far below their value as money. The Gov ernment is taking steps to prevent hoarding and smuggling with the result that the past two weeks have seen a return to more normal conditions. Stock Market By Roy Ewing Swan, Culbertson & * Fritz, Inc. January 28 to February 28 FOR the past month prices on the Manila Stock Ex change have moved in a narrow range with volume of business done down substantially from the pre ceding months. The high as measured by the mining share average was on February 11 at 85.96 and the low on February 8 at 81.73. The biggest daily volume was also on the 11th, a favorable indication. With the exception of Surigao Consolidated, the shares of gold mines declined moderately, ignoring the fact that on the free market here gold sold during the period from P110 to P116 per fine ounce. Surigao responded to favor able news frorp the property, as did Lepanto, a copper pro ducer as well as gold. The chrome producers were stronger on news of improved demand and a better price for chrome in the United States. In the commercial and industrial section the sugar shares remained in demand, reflecting both satisfactory world news on the commodity and the favorable position of “dollar earners” here. In an attempt to clear up some of the confusion which exists in regard to the buying and selling of Philippine securities by non-residents, we list the following regulations contained in Notification to Security Dealer No. 1 which was issued by the Central Bank on January 18, 1950. 1. Authorized security dealers (all active members of the Manila Stock Exchange and all Manila Banks) may license the purchase of Philippine Securities by non-residents provided: a. immediate payment is received in U.S. dollars which must be sold to authorized agent of the Central Bank, b. payment in pesos is received from funds already in the non resident’s account with his bank or brokerage firm. The same license that is issued to cover the above may be used to mail the certificate to the non-resident if done within 30 days of date of purchase. 2. Authorized security dealers may license the sale of Philippine securities for a non-resident provided: a. the securities have been registered with the Exchange Control Office, b. the proceeds remain in the seller’s account with the broker or are paid to his peso bank account in the Philippines. All deliveries or receipts of securities or funds other than the above require a special license from the Central Bank. Credit By W. J. Nichols Treasurer, General Electric (P.I.) Inc. AS restrictions on exchange transactions extend into the third month, more changes in the credit situation are developing. In addition to continued tightening of credit-granting in general, delays in the issuance of licenses to buy exchange are resulting in higher investments in accounts receivable. This is particularly true in cases where indentors formerly selling for dollars have to wait until their cus tomers obtain the necessary exchange. In many instances 30-day accounts are for this reason not being liquidated within the current period and become delinquent through no fault of the customer. It is no longer a simple matter to determine the prob able turnover of receivables, nor to analyze their status. In addition to the usual factors, credit managers must now also consider a customer’s ability to obtain exchange within a reasonable length of time. Sales on the installment basis continue to decline. In view of the probability that import and exchange controls will be widened in scope in the future, it is not likely that for some time to come there will be any substantial change in credit facilities. Electric Power Production (Manila Electric Company System) J. F. Cotton Treasurer, Manila Electric Company 1941 Average—15,316,000 KWH KILOWATT 1950 January.......................................................... 37,661,000 * February........................................................ 33,810,000 ** March............................................................. April................................................................ May................................................................. June................................................................. July.................................................... ......... August............................................................ September..................................................... October........................................................... November...................................................... December...................................................... hours 1949 33,745,000 31,110,000 34,776,000 33,048,000 34,453,000 34,486,000 35,726,000 35,394,000 35,763,000 37,461,000 35,856,000 38,673,000 420,411,000 Total....................................... ** Partially estimated Output in February was 2,700,000 Kwh or 8.7C' C over the same month last year. The principal reason for de creased output in February was the shortness of the month, but there was also a slight decrease in the average daily output. Real Estate By C. M. Hoskins (Of C. M. Hoskins fif» Co., Inc., Realtors') REAL estate sales in Manila and suburbs continued at a high level during February, 1950, totalling P6.705,415, as compared with P8,041,306 for January, and slightly above the past 6-month average. Sales in Manila for February amounted to P3,002,289, and for the suburbs, P3,703,126. The suburbs taken into account are Quezon City, Rizal City, and the municipalities of Caloocan, Malabon, Navotas, San Juan, Mandaluyong, Makati, and Parafiaque. The monthly figures are as follows: 104 The new Pier No. 9, South Harbor, Manila, can berth four large ocean-going ships simultaneously: It cost over P10,000,000, provided by the United States Government under the Philippine port and harbor rehabilitation program. The Pier measures 331 by 987 feet; the deck is of beam and girder construction, supported on concrete pedestals built in open caissons. This pier should not be confused with the handsome and still larger, pre-war Pier No. 7, now called Pier 13. Severely damaged during the war, it is now undergoing reconstruction. REAL ESTATE SALES, MANILA AND SUBURBS Monthly Totals Months 1949 September, 1949 — February, 1950 Combined Manila Suburbs September. . . . P 3,668,662 7 3,786,671 P 7,455,333 October............ 3,032,543 2,872,327 5,904,870 November........ 1,861,723 1,883,727 3,745,450 December........ 6,037,740 2,047,602 8,085,342 1950 January............ . . 4,486,846 3,554,460 8,041,306 February.......... 3,002,289 3,703,126 6,705,415 Cumulative. . . 722,089,803 P17.847.913 739,937,716 Mortgages registered during the month for Manila and suburbs totalled P6,569,351, as compared with P5,891,606 for January and P7,358,814 for December. Pri vate banks maintained their lead in mortgage volume, first noted last month. No marked changes in price levels have been noted so far this year. Land values remain strong, and the ten dency to higher building costs has lessened buyer bickering on the value, of improved properties. Fear of rental va cancies caused by recent commodity and currency controls has • prevented a runaway market in real estate, although the desire to hedge against inflation by real estate invest ments has kept the market tone exceptionally strong. Port of Manila By E. W. Schedler Vice-President, Luzon Brokerage Company PIER 9 was turned over to the Philippine Government on February 1, 1950. Contractors Syndicate No. 1, the builders of Pier 9, Manila Harbor, officially turned over the pier to the Philippine Government, and then in a few hours, the Philippine Ports Terminal was moving tractors and cargo equipment into place on the new pier, and the following day a ship berthed alongside die new pier and its usefulness to the people of the Philippines began. As the picture shows, the pier has four warehouses for storing cargo out of the rain, each warehouse penetrated by amply large doors for working cargo direct from the ship and on to the loading dock for the trucks. In a few days after the inauguration, a normal routine developed and cargo was moving at a speed not seen since the war. Pier 13 was then closed off completely to the public.in order that the Atlantic^ Gulf and Pacific Company can proceed with the rebuilding of that pier, unhampered by cargo or ships. 105 Likewise, the berthings at battered and antiquated Pier 5 have been cut down, as Pier 9 can handle four large ocean-going ships simultaneously. Pier 7 is partly closed for temporary repairs but it is accepting cargo over the pier. Cranes and overhead cargo working gear are yet to be installed at Pier 9. The machinery has been placed on the pier and by April 1, it is hoped the pier will be operating at full efficiency. Pier 9 will provide suitable relief for the overtaxed facilities of the Port of Manila, and it should cut down considerably the handling cost of cargo through the Port. At present the rules of the Port provide that export cargo must be loaded directly from the truck to the ship. This is a laborious method of loading as it does not permit stock piling of cargo prior to the actual on-ship loading. To facilitate the export trade, which is one of the objectives of many governmental moves, the next step will be to give the exporter from the Philippines a break by per mitting him the privilege of placing his cargo on the dock, enabling the stevedores to then load expeditiously when the ship is ready for cargo. Ocean Shipping and Exports By F. M. Gispert Secretary, Associated Steamship Lines EXPORTS for the month of January, 1950, showed a slight falling off compared with January of last year, which can probably be accounted for by the drop in scrap-metal shipments. Total exports for the month were 160,578 tons, as compared to 182,654 tons for the corresponding month last year. The comparison, by commodities, runs as follows: 1950 1949 Beer................................................ 61 tons 29 tons Coconut, desiccated.................. 6,687 ” 6,120 Coconut, oil................................ 2,766 ” 1,633 Concentrates, copper................ 5,223 ” 2,060 ’’ gold..................... 429 ” — Copra............................................ 38,010 ” 23,466 ” Copra cake meal........................ 4,198 ” 3,770 ” Embroideries....................... 135 ” 110 Empty cylinders........................ 580 ’’ 480 ” Furniture rattan........................ 513 ’’ 776 Glycerine..................................... 110 ” 353 ’’ Gum, cop'al.................................. 16 ” 53 Hemp............................................ 58,416 bales 7,302 bales Household goods........................ 241 tons 214 tons Junk, metal................................. 1,111 ” 16,229 Logs............................................. 11,788,661 bft. 2,185,910 bft. Lumber......................................... 739,555 ” 1,639,457 ” Molasses....................................... 4,774 tons 17,891 tons Plywood....................................... 12 — Ores, chrome............................... 9,437 ” 31,178 ” iron..................................... 24,077 ” 20,212 ” ” manganese........................ — 2,081 ” Pineapples, canned.................... 4,126 ” 2,620 Rattan, palasan.......................... 74 ” 149 Rope.............................................. 243 ” 289 ” Rubber.......................................... 80 ” 78 ” Sugar.............................................. 38,228 ” 35,477 ’’ Tobacco........................................ 81 ” 37 Transit cargo.............................. 431 ” 191 General merchandise:............. 7,453 ” 4,100 Inter-Island Shipping By D. M. Cameron General Traffic Manager Everett Steamship Corporation THERE has been no important change in the pattern of inter-island shipping in the last few months. Since the advent of more stringent import controls, out ward cargoes from Manila to the provinces have shown a decrease, which of course must be expected as outward cargoes are, for the most part, composed of imported com modities. When present stocks of imported com modities are depleted, an additional downward trend in volume is expected. However, return cargoes from Davao and ports in Mindanao and nearby continue in appreciable volume. Apparently due to the decrease in south-bound car goes, a number of operators of the smaller FS-type vessels have joined in a petition to the President of the Philippines asking the termination of the remaining charters of the U. S. Maritime Commission vessels in the inter-island trade. There are 6 of these vessels remaining from a total of 10 which were chartered in 1946, and this petition is based on the premise that these 6 vessels are no longer needed in the trade due to the alleged availability of an adequate number of privately-owned vessels. The position taken by these operators is not supported by facts, as the movement of bulk commodities from the further ports to Manila by the smaller vessels, in the volume required to maintain even present production, is impossible.. The present freight rates under which lumber, hemp, com, and rice are carried, would not permit compensatory opera tion of the small vessels, and it would be immediately neces sary to raise these rates in order that the small vessel, with its comparatively high operating cost in relation to its carrying capacity, could show a profit. This situation is apparent to those in the Philippine Government who are concerned with the industrial and agricultural pro gress of the Islands, and it is understood that representa tions have been made to the United States Government to continue these charters after June 30, 1950, when the Philippine Rehabilitation Law (under which they are chartered) terminates. Some of the operators of these chartered vessels have indicated their desire to purchase if the American law is adjusted to permit this; the U. S. Ships Sales Act proviso terminating sales to foreign coun tries was enacted without due consideration to the Philip pine Rehabilitation Program. In addition to the carriage of cargo, the transporta tion of passengers and the volume in which they move dictates the use of larger vessels than the FS-type which are more suitable for the shorter voyages to the less distant ports. It is understood that shippers of lumber, hemp, and the like have expressed themselves to the President as requiring the larger vessels for the continuation of their businesses. Lumber By Luis J. Reyes Philippine Representative, Penrod, Jurden & Clark Company EXPORTS for the month of January totalled 5,192,302 board feet, comprising 2,537,723 board feet of sawn lumber and 2,654,579 board feet in round logs. This is slightly less than the export for the month of December. Japan led the United States in the quantity of imports, with 2,453,634 board feet, as compared with 2,286,004 feet to the United States, although the money-value of shipments to the latter is greater. Before the war, Japan led all others in log imports, which were used almost ex clusively for plywood. In the Manila market, the demand for lumber has somewhat slowed down because of the uncertainties of the Import Control. As a result, prices have gone down P5 to P10 per thousand. A similar drop in prices occurred last year, starting about the middle of February, although before the war, prices weakened only when the rainy period begins, about the middle of June. 106 The members of the Philippine Lumber Producers’ Association have petitioned the Associated Steamship Lines to defray a part of the cost of inter-island freight for trans-shipment through Manila. This was discussed in a meeting between the members of the two associations. Many lumber companies are not able to ship direct from their mills for the reason that the regulations of the Asso ciated Steamship Lines require a minimum of 200,000 board feet if direct shipment is to be effected. Only few buyers abroad purchase 200,000 board feet or more at one time. The bulk of orders are for from 25,000 to 100,000 board feet, and these have either to be trans-shipped to Manila or else held until more orders are received to make up the minimum quantity required. The high cost of inter island freight to Manila, however, discourages buyers, and for this reason the relief is being sought from ocean carriers of their defraying a part of the expense. The As sociated Steamship Lines promised to study the matter and to inform the lumbermen of its decision. Another petition was sent to the Associated Steamship Lines for a reduction of freight rates to Hongkong, Shanghai, and Japan, which are potential markets for Philippine woods. The matter could not be acted upon as no reply has as yet been received by Mr. Gispert, Secretary of the Associated Steamship Lines, from the owners of ocean-carriers. Congressman Macapagal .has introduced a bill which would require the registration of sawmills and woodworking plants with the Bureau of Forestry before operations can be started. The purpose of the bill is to prevent unlawful operators from engaging in the trade without the necessary permit which often enables them to evade the payment of forest-charges and other taxes due the Government. Provided this measure will not entail additional expense to lumbermen, the enactment of such a bill is welcome. According to the records of the Bureau of Forestry, there are now in operation some 454 sawmills, many of them army surplus, which have fallen into the hands of inexperienced persons. There is no doubt, however, that many of these mills have rendered material help in recon struction throughout the Philippines. During 1946 and 1947, when lumber was selling at P250 to P350 per thou sand board feet, these mills made money, but when prices tapered down to present levels, they could not possibly compete with the more experienced and better managed mills. As a result, many have closed down or are operated intermittently when lumber prices are up. Mines By Chas. A. Mitke Consulting Mining Engineer PRODUCTION: January, 1950. Short Value Tons in Pesos Benguet Consolidated.................. 55,046 P Atok Big Wedge 13,711 341,520 Lepanto Consolidated.................. 16,913 535,880 Mindanao Mother Lode.. 9,500 355,793 Surigao Consolidated.................... 9,055 230,168 Taysan Gold Corporation............ 1,362 27,878 Tambis............................... 23,064 cu. yds. 14,809 THE present limited number of producing gold mines in the Philippines are looking forward to a prosperous 1950. Certain improvements are in prospect at each of the mines which will tend to increase production and lower costs. This will naturally be reflected later in the year in profits and dividends. At the present time, Lepanto Consolidated is rushing completion of a second mill-unit, and expects to have it in operation by the middle of July, when the tonnage will be increased from 500 to 1000 tons a day. Preparatory work underground is also being prosecuted and enough stopes opened up to have sufficient ore broken, ready for drawing, as soon as the larger mill is in operation. Extra power units and compressors have already been installed with facilities provided for the moving of the increased tonnage without delay. The Benguet Consolidated is also planning an increase in tonnage of from 2,000 to 2,400 tons per day by August or September. Marsman & Company has announced the rehabilita tion of four mines—Itogon, United Paracale, San Mau ricio, and Coco Grove. Preliminary estimates of the necessary funds for resuming mining activities show that the Itogon Mining Company will need P749,650; United Paracale Mining Company, P379.450; San Mauricio Mining Company, P322.000; a total of Pl,451,100. Coco Grove, Inc. has already received from the War Damage Commission the sum of P505.120.48 out of Pl,081,401.60, which was approved out of its claim of P2,001,855.39. Salvage work will begin immediately. For the present, only one dredge will be put in operation, the other being too badly damaged. Payment in the amount of P690.233.82 has been received from the War Damage Commission by the United Paracale Mining Company, out of an approved sum of P2,298,446.06. The surface improvements of this com pany did not sustain much damage. General rehabilita tion of the mine-workings has been started, as well as repairs to surface buildings. A considerable loss in plant, equipment, and inventories was sustained by the San Mauricio Mining Company. A check for P719,329.20 has been paid the company by the War Damage Commission. As most of the shaft and mine workings are in hard rock, it is anticipated that the money and time involved in putting the underground workings in operable condition will not be too long. It is anticipated that the mill will be remodelled and a cyanida tion plant added. The smelter, where lead and zinc con centrates were treated before the war, was so badly damaged that it will not be rebuilt at this time. The first of the Marsman mines to start rehabilitation work is the Itogon, and it is anticipated that, according to the progress being made at present, it may be brought into production by the middle of this year. Cost of re opening is estimated at P749.650. In regard to treating the ore, the company has two alternatives; either to make some arrangement with the Benguet Consolidated, or to rebuild the former mill. These four former producers will swell the list of present operating mines once they get into production. Glancing at future prospects, there is Panaminas, Inc., which has opened up an interesting complex ore-body in the south-eastern part of Mindanao. The mine was reported on favorably by a prominent American geologist last Decem ber. This is a milling ore, and expectations were that the plant would be financed immediately by American capital. However, the import and exchange controls have tempo rarily put a damper on all foreign investments in the Philip pines. While the Central Bank has announced (and in the case of Atok-Big Wedge permitted) that dividends from dollars investments in the Islands may be paid in dollars, it has not as yet extended this privilege to American capital created in the Islands. Naturally, prospective investors weigh this fact in considering possible future investments. Dividends are now being paid by Lepanto Consoli dated, Atok-Big Wedge, Mindanao Mother Lode, Surigao Consolidated, and even the Consolidated Mines, which is presently operating on a greatly reduced scale. 107 Copra and Coconut Oil By Manuel Igual Executive Vice-President, El Dorado Oil Works and Kenneth B. Day President, Philippine Refining Co., Inc. January 16 to February 16 THIS was a period of comparative inaction in the copra market. Sellers, sensing a temporary shortage of supplies, were holding what copra they could com mand for higher prices. Buyers, with almost complete lack of consumer-interest for oil, could only see lower copra prices. Hence a comparative stalemate until near mid February, when the situation began to ease. The record shows a tight market through most of the month with buyers interested at $185 c.i.f. to $190 c.i.f. depending on position, and sellers asking $2.50 to $5 more. Occasionally trades went through at compromise prices, but there was no great volume; clearly there was no real money in the business for buyers, nor was there much copra for sale because arrivals were light and bade fair to continue so for some months, and sellers did not wish to go short under these circumstances. Toward the end of the period, how ever, buyers began to lose interest and reduced their ideas to $175 to $180 c.i.f. Sellers, sensing the possibility of heavier production next month, in turn revised their ideas downward to $182.50, possible $185 for spot, and some trading was done at the lower levels. Meanwhile, some little interest developed in Europe and business was done, thanks to reduced freight rates, at as high as $190 f.o.b., perhaps a shade more, Philippine copra at this stage being the world’s cheapest copra. But as the period wore on, European dollar demands were filled and at the close buyers were indicating $180, with sellers some $2.50 higher. Japanese and Central American interest faded out of the picture temporarily. All of this took place in the face of gradually increasing prices of competing fats and oils, notably cottonseed oil and tallow, but the spread was still so great that normal users of coconut oil turned more and more to substitutes, and coconut oil usage was at an all-time minimum. It is very interesting to note that coconut oil usage in soap declined 33% during 1949, partly due to the upward surge of deter gents, but more to the unreasonably high comparative price of coconut oil. But Philippine sellers cannot be blamed for this, for their entire copra crop was marketed without difficulty at top prices. '-pnE oil market was far frcm satisfactory. With demand at a minimum, sellers could trade only on a hand-tomouth basis and fcr immediate or near positions. Large soapers were generally uninterested, and what demand there was came from small buyers for edible usages who bought what they had to when they had to. Coast prices ranged from 14-1/4 cents f.o.b.P.C. down to 13-1, 213-3/4 cents at the end, with trading light and confined to small lots. While a few immediate bulk parcels were sold at 15 - 15-1/4 cents c.i.f. New York, large buyers were generally uninterested over 14 cents or a shade more. On any such basis, current copra prices were unjustified, and as the period closed Coast mills and some Philippine mills were generally inactive and thinking of shutting down. East Coast buyers were particularly reluctant to buy be cause of the opening of a new crushing mill near New York, which they thought might mean lower prices for oil. This may or may riot prove true. Philippine mills, as usual, were handicapped by indis criminate outport loadings, a state of affairs which bids fair eventually to result in a showdown as to whether the Philippine Government values industrial enterprise suffi ciently to make it possible for it to operate on competitive terms — a hard decision for the Government to take at this time, but one it must face sooner or later. tinder these conditions, Manila base prices for copra '■J held steady at P36 to P38 and higher for resecada, all for domestic usage, with Cebu consistently Pl - P2 lower. These high prices resulted from the shortage of copra, and seemed likely to be chronic for the first half year. Copra shipments for January, always a light month, totalled only 36,708 tons, as against 43,160 tons for Decem ber, but comparing favorably with 23,778 tons for January, 1949. These shipments were distributed as follows: United States Pacific Coast Ports 20,439 Atlantic Coast ” 2,339 Gulf Ports...................... 7,000 Europe. 3,000 Canada............................ 500 Central America................................... 3,450 TOTAL............................................................... 36,728 Oil exports also dropped to 2766 tons, as against 6279 tons in December, but were still above the 1633 tons shipped in January, 1949. These shipments were distributed as follows: Atlantic Coast.............................................. 2,528 Central America.......................................... 238 TOTAL......................................... 2,766 Meal markets on the Pacific Coast were good during the month, working up above $55 c.i.f. per short ton, equi valent to better than $47 f.o.b. At the close, the market showed some signs of softening, which it generally does as the spring advances. European buyers were still dollarless. In general there was a feeling of uncertainty as the period ended. Everyone knew that copra and coconut oil were too high, although supplies of copra were small and buyers still had minimum demands to meet. But the premium over other oils was ruinously large, and gradually Philippine copra was pricing itself out of the market. This kind of thing cannot go on forever, and the true impetus to Philippine trade will come only when, comparatively, coconut oil can be sold on a near equivalent to competing oils and fats — which may come either from an increase in the prices of competing oils and fats or a decrease in copra prices, and probably will finally work out as a com promise between the two. But how soon this will happen, is a question. from the Philippine viewpoint we would like once more to point out the increasing incidence of kadangkadang infestation in Southern Luzon. Unless prompt and effective remedial action is taken, a few more years of this will mean a tremendous loss to the national wealth by ruining the copra groves of this area, as well as increasing the sphere of its malignant influence. Already, in some districts production is reported down up to 75%. This is something the Government should think about if it wishes to maintain and increase its copra exports. It is a serious matter. As we swing into mid-February, copra and oil markets look softer, and buyers of oil and copra are holding back. Lower prices may easily come, but if they do it will be in spite of light production, for there should be no great copra surplus for some months to come, and it is not generally felt that dealers are holding back substantial stocks at this time. And so, as usual, one man’s guess as to what may happen this next month is about as good as another’s, although certainly the general tendency is against higher prices. 108 March, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 109 AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES ESTABLISHED 1920 PURPOSES. The promotion and development of American trade, commerce, and industry in the Philippines and the Far East; The provision of means for the convenient exchange of ideas in this promo tion and development; The cultivation of friendly relations between Americans and Filipinos and other peoples of the Far East; The enrolment of all American citizens residing in the Philippines with a view to bringing about closer association in the achievement of the purposes set forth. MEMBERSHIP. Active membership is limited to (1) commercial, industrial, and other organizations, partnerships, and corporations organized under the laws of the Philippines or of the United States of America which are controlled by Amer ican citizens, the responsibilities and privileges of this class of membership being exercised by individual representatives of the member-entities who must rank among their senior members but need not be American citizens; (2) individual Americans residing in the Philippines, other parts of the Far East, or the United States. Associate membership is limited to individual American citizens who may be either Residents (residing within 100 kilometers of Manila), or Non-resi dents (residing in the Philippines outside this radius or elsewhere in the Far East or in the United States). OFFICERS AND DIRECTORS, 1950 Paul H. Wood, President J- H. Carpenter, Member R. J. Newton, Vice-President C. H. Hirst, Member C. R. Leaber, Treasurer Paul T. Millikin, Member Marie Willimont, Executive Vice-President J- A. Parrish, Member I. T. Salmo, Secretary E. A. Perkins, Member American business houses and individual Amer icans, not already members, are cordially invited to join the Chamber and to assist in the promotion of its purposes. PAST PRESIDENTS •H. L. Heath •C. M. Cotterman E. E. Elser *R. E. Murphy G. H. Fairchild P. A. Meyer •H. M. Cavender •S. F. Gaches W. H. Rennolds F. H. Stevens • Deceased 110 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1950 Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation excess THIS report covers the period from January 15 to February 15, 1950. During this period the copra market remained steady with local prices in excess of the foreign equivalents; particularly was this true in the provinces, where dealers preferred to hold copra to cash because of monetary difficulties which are presently in force. The local and provincial market showed weakening tendencies toward the end of the period, mainly through buyer-resistance in the United States, and coconut prices closed weak in reacting to the copra news. Also at the close of this period the Philippine Constabulary “zoned” certain areas throughout the coconut regions as being possible locations for Huk and dissident troubles. There has been considerable military activity in these areas and this will tend to reduce the available supply of coconuts. It is not possible as yet to say how greatly this will inter fere with normal coconut harvests and prices. The labor front has been quite active with a threeweek strike at the Peter Paul Philippine Corporation factory at Candelaria, Quezon. The Union had presented many unreasonable demands which were rejected by the Company and within several hours the Union decided to strike. This was another example of labor pressing demands and not wishing to follow the legal and proper pattern,—that when management and labor meet an impasse, they should resort to the Court of Industrial Relations. A highlight in this labor issue was the securing of a court order permitting the Company to dispose of its perish able raw material (coconuts) so as to minimize losses. The Union forcibly restrained the management from carry ing out this order, but was finally served a court summons to return to work or be dismissed. The Union members chose to return to work while their demands were aired in court. The demands and management-labor problems are presently under discussion. The shipping statistics for the month of January are follows: as Shippers Franklin Baker Company.................. Blue Bar Coconut Company............. Peter Paul Philippine Corp............... Red V Coconut Products, Inc........... Sun-Ripe Coconut Products, Inc. Standard Coconut Products, Inc. . Cooperative Coconut Products, Inc. Tabacalera.............................................. Coconut Products Philippines, Inc.. Luzon Desiccated Coconut Corp.... Pounds 3,003,000 728,000 * 973,000 * 1,314,500 0 16,830 66,700 0 14,670 286,805 Total. 6,403,505 .129,500 lbs. 598,500 ” Total Peter Paul Shipment. 973,000 ” ★ ★ NOW ON ITS YEAR OF SERVICE :..ribut£" I ENGINEERS * CONTRACTORS MANUFACTURERS * DISTRIBUTORS SPECIALIZING IN THE FABRICATION ANI) ERECTION OF BRIDGES, TANKS AND BUILDINGS A C & P’s facilities extend to every industrial, agricultural and public utility fields. Mining, sugar manufacture, chemical plants, air conditioning and refrigeration, power and lighting plants, irrigation systems, drainage, steel fabrication, bridge and building constructions, etc., included. I In considering your 1950 projects we invite you to share our I experience and facilities. They can help you cut costs. ------------- - Operating: ——— MACHINE SHOPS FOR CONSTRUCTION AND REPAIRS FOUNDRY FOR CAST IRON, BRASS A BRONZE STEEL PLATE A STRUCTURAL STEEL SHOPS MARINE REPAIR SHOPS • WOOD PRESERVING PLANT THE GREATEST NAME IN ENGINEERING & CONSTRUCTION SINCE 1900 ATLANTIC, GULF & PACIFIC CO. EXECUTIVE OFFICES •ENGINEERING DIVISION /"kJO IATA NTT A _. ‘^Bld’^Mulli^dyi1 S« Fr.ncl.c. STRUCTURAL A MACHINE SHOPS VF IVlAll 1L.2A 4 23^ S^l. Po " Ar«. M.nll. Barrio Punta, Santa Ana, Manila 3.36-61 (Connertln« all Drpla.1 Tria.: 6-7S-31---- 6-75-32--- 6-75-33 March, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 111 Reynolds Lifetime Aluminum Corrugated Roofing and Siding does a better job . . . for more years... at lower costs. Here are the reasons: Lifetime Aluminum is an investment in long range economy. It cannot rust or decay, never needs protective painting. Properly applied, it will last a lifetime with little maintenance. Lifetime Aluminum insulates by reflecting radiant heat. This means interiors up to 15° cooler in summer, warmer in winter. Light and strong, this modern roofing and siding material is easy to handle, easy to apply, easy to cut and form. We suggest you tell us your problems. Our technicians will work with you closely and give you full details on the most ad vantageous way to use these sheets. NAILS .. . Aluminum nails are strongly recommended wherever Reynolds Aluminum Corrugated Sheets are used. REYNOLDS METALS COMPANY-----------------------EXPORT DIVISION . 19 EAST 47TH STREET, NEW YORK 17. N. V.. U.S.A. . CABLE FOILWAX N EW YO RI SORIANO TRADING COMPANY M. K. S. Building Manila Tel. 2-89-36 112 AMERICAN CHAMBER OF COMMERCE JOURNAL March. 1950 Sugar By G. G. Gordon Secretary-Treasurer Philippine Sugar Association THIS review covers the period from January 31 to February 28. New York Market: At the end of January, the market was easier and although the majority of sellers continued to hold for 5.80/ there was an offer of 30,000 bags Puerto Ricos for shipment about February 24 at 5.78^. However, buyers continued to be indifferent and gave no indication that they would be interested at 5.75/ On January 31, 103 Cuban mills were reported as grinding, as compared with 113 grinding on November 30, 1949. February opened with a sale of 50,000 bags Puerto Ricos, February shipment, at 5.78/ However, on the same day there were further offerings of Puerto Ricos, Philip pines, and Hawaiians at 5.75 without finding any buyer. All of this sugar, offered at 5.75/, was due about the middle of March, except the Philippine parcel which was offered for February. shipment. On February 2 there were transactions at 5.70/ for Cubas, February loading, and Puerto Ricos early March; 3500 tons Hawaiians due in February were also sold at the same price. The market was described as unsettled with a somewhat easy tone. Distribution of refined sugar continued to be below the level of 1949. On February 3 the market was hesitant and some refiners indicated that their ideas were not above 5.65/ There were some reductions in refined prices announced by both beet and cane refiners, and the other refiners were expected to follow suit within a few days. On February 6 the Supreme Court upheld the consti tutionality of congressional limitation on imports of refined sugar from Puerto Rico, Hawaii, and the Virgin Islands. It was announced that this decision wipes out any uneasiness regarding the legality of the 1948 Sugar Act. By February 6, 140 centrals were reported in operation in Cuba, which is exactly the same number grinding on the corresponding date in 1949. The Eastern refiners generally reduced their prices by 10 per cwt. On February 7 it was announced that the Philippine Conference rate on raw sugar had been reduced from $12 to $11.50 per ton, effective February 3. The market conti nued to drag with sales reported around the 5.70 / basis. On February 8 the raw market developed a distinctly easier trend with the news that a large Cuban producer had sold 45 50,000 tons of Cubas, believed to be for March shipment, on the basis of 5.65/ There were further sugars available at this price, but refiners indicated no better than 5.60/ The market continued on the 5.60 level to February 10. On February 15 there was a further decline and after a few lots had been sold at 5.60/ indicated no better than 5.55/ On this date 151 Cuban mills were reported grinding, compared with 156 on the same date in 1949. On February 16 the market weakened to the 5.501 level and there were also considerable sales at declining prices on the exchange. On February 17, the market stea died after the decline, offerings were at 5.55 / but buyers were not disposed to pay more than 5.50/ To the close of the month, the market remained about this level. On February 28, sales were reported of Puerto Ricos, Cubas, and Philippines for March arrival at 5.50/ As of February 23, 157 Cuban mills were reported to be grinding, the same number as last year. „„epiee.,rinS—......................................... , of quality • ••••* J „ HNCERHT KEVS . plastic material rvu. sue row-ao * kbyboakb ” typewriters. ■ • n A R . • positioned as CONVENTIONAL SPAC l-sa. tvnewriters . • • i- 20 Vi lbs. TRIJI Y PORTABLE. only. ™ /l k T NEW DELUXE carrying case in regular standard in standard office 5. INCLUDING the And THIRTY other exclusive features that make the REMING TON PERSONAL PORTABLE TYPEWRITER ideal for office, school, shop and home work. . . INQUIRE TODAY.......................... Exclusive Representatives TAYLOR PACIFIC [Phil.] LTD. ATKINS KROLL & CO., INC. — Gen. Mgrs. 124 MYERS BLDG., PORT ARFA — TEL. 3-34-41 March, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 113 We give below the quotations on the New York Sugar Exchange as of February 23 for Contracts Nos. 4, 5, and 6: Contract No. 4 Contract No. 5 Contract No. 6 March.......................... 4 36 5 05 — May.............................. 4.36 5.12 5.06 July.............................. 4.36 5.17 5.10 September.................. 4 36 .18 5.13 November................... . . . . — — 5.14 January..................... 4.29 March.......................... 4.09 Manila Hemp By Fred Guettinger Vice-P. esident and General Manager Macleod and Company of Philippines Local Market: (a) Domestic Sugar. -- During the month there was little change, quotations for centrifugal sugar, 97° polarization, being reported as P15 to Pl5.50. For washed sugar polarizing 99° quotations ranged from P18 to P18.50, same as in January. (b) Export Sugar. -- In accordance with the tendency in New York, the local export tnarket declined during the month, quotations dropping from P13.85 on February 1 to Pl3.25 at the close of the month. A considerable reduction has been made in the estimate of the current crop which is now placed at 736,808 short tons. This shows very little difference from the production of the previous year. OUR review covers the period January 16 to February 15, 1950. During this period there was a steady decline in prices in all consuming markets. The United States market opened on a weak tone, and remained pretty dull throughout the month. Little business was done. The United States Government is reported to have purchased small quantities for stockpiling. The market closed dull, with no demand and with declines ranging to 1 jf lower than at the opening. New York quotations: Per lb. c.i.f. Jan. 15, 1950 Feb. 15, 1950 Davao I............................... 27—5, 8c 26—5. 8c Davao JI............................. 27-1. 4 26-3 8 Davao G............................... 25-1. 4 25 Non-Davao JI................... Non-Davao G.................... Non-Davao K.................... 25-1 2 20-1 2 16-1 4 24-1 2 19-1 2 15-3 4 N_ew York Year Ago Down It 30e Down 7 8 29-5 8 Down 1 4 26-7. 8 Down Down Down 27-1. 2 22-5 8 15-3 8 Demand from Europe was scattered and in total not large due to lack of dollars. Germany is reported to have received a dollar allocation for approximately 1,000 tons, mostly Non-Davao grades, but at the end of the period World market FOR SELLER For all information con cerning THE CANADIAN INTERNATIONAL TRADE FAIR — please consult FREDERICK PALMER Consul Ceneral of Canada 12 Escolta, Manila FOR BUYER IF YOU’VE not yet completed arrangements for your exhibit al the Canadian International Trade Fair, it would be advisable to do so now, without delay. You can show what you sell—and sell what you show—to world busi nessmen from Canada, the Uniteci Slates, and many other countries. It is a most economic al and effective way to establish new business connections. Business visitors from every country find that the Trade Fair offers a double opportunity— (a) to the businessmen or industrialist who is looking for new ideas and equipment for ' his office or plant—(b) to wholesalers, re tailers, importers and jobbers who wish to purchase goods for profitable re-sale. Canadian InternationalIhideJair MAY 29 —JUNE 9, 1950 * TORONTO, CANADA OROKATID TO TNT PROMOTION OF INTERNATIONAL TRADI RY TNI OOVERNMINT OF CANADA 114 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1950 under review only a small portion of its requirements had been bought. SCAP continued to buy quite heavily and sales from the latter part of December when buying was resumed - to mid-February are probably close to 40,000 bales. Prices in the Philippine provincial markets remained fairly steady until about the middle of the period, when they began to gradually decline without keeping pace with the decline in consuming markets. Philippine provincial quotations: Per Picul—Basin Loose Jan. 15, 1950 Feb. 15, 1950 Change Year Ago Davao I................ ............. P62 P60.50 Down Pl .50 P69 Davao JI............. ........... 61 59.50 Down 1 50 67 50 Davao G............... 54 53.50 Down .50 60 Non-Davao JI... 54 50 52.50 Down 2 60.50 Non-Davao G. . ............. 41 39.50 Down 1 50 47.50 Non-Davao K ............. 29 27.50 Down 1 .50 29 Pressings during January were 54,116 bales— the offered other than that the fields have at long last recovered from the effects of the December, 1947, typhoon. It is a regrettable fact that new areas planted to abaca in the Bicol region during the post-war period are almost nil. Unfortunately, no figures are available that would give an idea of the newly-planted areas in the Davao districts. Any attempt to name a figure would be pure guesswork, but it seems fairly safe to assume that the year 1950 will bring out considerably more Davao hemp than last year. Enlarging upon the brief remarks made in last month’s report regarding 1949 production, we give below some tables showing comparative figures of production and highest since May, 1948. The increase over December, 1949, is 3610 bales; and over the corresponding month last year, 7319 bales. The increase in Davao pressings amounted to 3544 bales; in Camarines, Albay, and Sorsogon, 5242 bales; while production in all other Non-Davao grades registered a decline of 1467 bales. Davao pressings in January were 22,822 bales; Camarines, Albay and Sorsogon, 14,966 bales; and all other Non-Davao, 16,328 bales. The month of February promises to show up with a production at least equal to January production—if not surpassing it by a few thousand bales. If the output of these two months means anything, production for 1950 may equal 1948 production, or even go beyond it. The increase in the Davao districts undoubtedly may be attri buted to new plantings coming into production; while for the increase in the Bicol provinces no explanation can be Grand Total exports in the post-war years: Production. 1949 1948 In Bales 1947 1946 Davao................................................... 224.737 206,768 352.822 256.962 Bicol (Camarines, N. and S.. Albi and Sorsogon) ............................. Leyte and Samar........... All other Non-Davao........................ Abaca decorticated (Davao)............ ,y 111,234 104,198 73,551 10,866 156,815 105,383 108,498 9,144 234.718 104,185 95,040 9,429 80,741 44,476 9,075 Total Abaca............................... 524,586 586,608 796,194 391,254 Maguey................................................ Ramie.............................. 12,847 27,301 424 60,254 644 942 729 537,595 614,333 857,092 392,925 Yearly average production, 1916 to 1940, in round figure*. . . Year of highest production, 1929................................................... 1,200,000 bale* 1.590,343 bale. Abaca Eiports — By Destinations United States and Canada . . Continental Europe............ Japan............................................ United Kingdom................ China................................... South Africa............................... India....................................... Australia and New Zealand South America....................... 1949 1948 In Balta 201,139 94,910 90,230 41,650 15,536 4,127 3,325 1,914 452,831 587,624 1947 750.854 ^National Qity T>ank Travelers Checks If you’re wise you’ll make reservations for hotels, train berths, ships, planes to avoid a spoiled trip. Why take chances with your travel money? Carry National City Bank Travelers Checks and protect yourself against theft or loss. Y our money refunded if lost or stolenNCB Travelers Checks faithfully guard your funds wherever you travel—at home or overseas, and save you needless worryBecause NCB Travelers Checks are backed by America's greatest World Wide Bank, they are known and accepted everywhere. In denom inations of S10, $20, $50 and $100—good until used. THE NATIONAL CITY BANK OF NEW YORK lirit in World Wide dlanling Branches in the Philippines MANILA Slain Branch: Juan l.una St. Port .Irea Branch: 13th Street PAMPANGA: Clark Field CEBl : Cebu City March, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 115 Tobacco By Luis A. Pujalte Secretary-Treasurer, Manila Tobacco Association ALTHOUGH it is still too early to be sure, all the indi cations are that the 1950 tobacco crop will be the largest since the outbreak of the war. An increase in acreage is noted throughout the tobacco regions, mainly the Valley (Isabela and Cagayan), Pangasinan, La Union, and Ilocos and in the Visayan Islands. Weather conditions have been very favorable and if this continues, a 40f f in crease over last year’s approximately 30,000,000 pound crop could easily be harvested. With the import control, most of this tobacco will be consumed locally; that is, if the exchange control does not restrict the importation of cigarette paper. This has been very difficult under the exchange control order allow ing only 6% monthly of the 1949 imports of uncon trolled items, and now, with the newly announced list of priorities, it will be almost impossible to bring ‘in cigarette paper for the ever-increasing demand for local cigarettes. The black market is not only flourishing on imported, but also on locally manufactured cigarettes. A 4000-meter bobbin of cigarette paper costs between $2.75 and $3. In the hands of bonafide manufacturers, this bobbin yields 48,000 to 50,000 cigarettes, which pay a minimum tax of P96. The Government cannot afford to lose P100 in taxes due to a “loss” of say $3 in foreign ex change. With the exchange control, it would be very easy to completely eradicate clandestine manufacture following the suggestion of the Board of Directors of the Manila Tobacco Association contained in a memorandum to the Tax Committee, Department of Finance, attention of Mr. Alfredo Jacinto, Chairman, which reads as follows: “(1) To have only duly licensed tobacco manufacturers as sole importers of cigarette paper, whether in rolls or in sheets. If the importation of cigarette paper be placed exclusively in the hands of authorized tobacco manufacturers, the rampant smuggling of this commodity and illegal disposal thereof will be minimized if not alto gether stopped. It will also avoid the channeling of this commodity into the hands of unscrupulous importers who are not engaged in the manufacture and sale of tobacco products. It cannot be doubted that the authorized manufacturers are in a better position to dispose of this commodity and will have more caution against eventual transfer to the hands of illicit manufacturers.” If this were done it would be very easy for the Bureau of Internal Revenue to keep a close supervision and watch over the output of each factory and thus be assured that all due taxes are collected. Imports By Louis S. Kraemer Vice-President, Mercantile, Inc. FEBRUARY 18 marked the day when the Import Control Office finally started to issue import alloca tions covering the first quarter of 1950. Until this date, it was impossible for importers to place their orders for any items subject to import control. Even to the date of this writing, the wheels of the Import Control Office are turning very slowly and the import business is still vir tually paralyzed on all controlled items. According to an authoritative source, the Import Control Office will, within a few days, begin to keep its records on modern accounting machines and it is hoped that the present delays will then be greatly minimized. INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS ------------- *------------SPECIALISTS IN KILN DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MAXI LA DISTRIBUTORS: Norton & Harrison Company 814 Echague Manila D. C. Chuan & Sons, Inc. H-30 Soler St. Manila Insular Saw Mill, Inc. 310 Canonigo, Paco Manila MAXILA OFFICE. 401 PILIPINAS BL1LDING 116 AMERICAN CHAMBER OF COMMERCE JOURNAL March. 1950 Many business men are saying that the obstacles to trade created through the import control regulations are far less disturbing than the uncertainties created through the often ambiguous “memoranda” of the Exchange Control Board with regard to priorities on foreign exchange for commodities not subject to import control. One exhausted trader pointed out that at least he and his customers knew where they stood on controlled items because either they had their allocation or they didr/t, whereas under the exchange control, they could not plan from one day to the next as the rulings are constantly subject to modification and amendment. While the necessity for dollar conservation is prac tically universally accepted, it is thought that the present system has certain flaws which are costing the nation more dollars than necessary. Due to the restrictions placed on monthly allocations of exchange (6' '< of the importers’ 1949 expenditures) the importer is unable to take advantage of seasonal or economic declines in the world markets on various commodities, and furthermore is unable to place orders sufficiently large to obtain the carload-prices which, oftentimes, are far lower than the less-than-carload prices, both from the viewpoint of the producers’ established price lists and the inland freight rates. Traders and importers are not the only ones directly affected by the controls. Many firms planning on entering into local manufacturing have ordered and received machinery for their operations, and now find extreme difficulty in obtaining foreign exchange for the raw materials needed, even though these imported raw materials consti tute only a minor portion of their requirements. The opinion has been expressed that the Philippine Government waited too long before beginning the control on dollars and that today the only remedy can come from the United States granting a sufficient loan to maintain the reserve necessary to carrying the country through this period of conversion to home production for domestic and export purposes, which some believe may require two or three years even under the most capable administration. Commodities January 1950 1949 Automotive (Total)............................... 1,367,319 2,186,856 Automobiles........... .............................. 492,490 379,324 Auto Accessories................................. 18,102 25,261 ” Parts.............................................. 198,330 638,045 Bicycles................................................... 57,533 25,994 Trucks..................................................... 25,843 63,147 Truck Chassis........................................ 183,927 554,494 Building Materials (Total)................... 5,506,300 21,490,781 Board, Fibre......... .............................. 169,524 922,447 Cement................................................... 458,868 15,635,899 Fixtures, Bathroom and Kitchen.. . 443,682 286,750 Glass, Misc.............................................. 1,416,671 134,157 Plumbing, Misc..................................... 629,026 741,150 Chemicals (Total)..................................... 13,536,941 13,401,301 Caustic Soda.......................................... 2,606,879 605,757 Explosives (Total). .'............................... 32,987 231,525 Firearms, NOS (Total)........................... 12,706 22,318 Ammunition............................................ 15,175 37,513 Hardware (Total)............... .................. 7,074,415 7,580,529 Household (Total).................................... 1,655,063 2,595,186 Machinery (Total)................................... 2,463,463 2,648,545 Metals (Total)............................................ 12,311,159 8,765,064 Petroleum Products (Total).................. 47,766,404 50,395,713 Radios (Total)............................................ 92,214 66,355 Rubber Goods (Total)............................. 856,013 956,313 ENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ________ENGINEERS • CONTRACTORS________ AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ENGINEERING - DESIGN - APPLICATION - ESTIMATES INSTALLATION MAINTENANCE SERVICE REPAIRS General & Sales Office 1 74 M. de Comillas Manila Tel. 3-29-21 ★ ★ ★ 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 ★ ★ ★ March, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 17 —Robot Statistics Beverages, Misc. Alcoholic.................... 40,829 54,387 Foodstuffs (Total kilos).......................... 22,491,674 49,555,739 Foodstuffs, NOS (Total)...................... 9,503 18,249 Foodstuffs, Fresh (Total)....................... 104,243 295,383 Apples...................................................... 32,572 56,006 Oranges..................................................... 5,723 10,328 Onions...................................................... 18,978 85,030 Potatoes................................................... 7,983 37,522 Foodstuffs, Dry Packaged (Total).. . . 36,601 112,500 Foodstuffs, Canned (Total)............. 335,076 720,284 Sardines............................................ 42,592 148,700 Milk, Evaporated................................. 156,651 152,704 Milk, Condensed................................... 27,349 25,800 Foodstuffs, Bulk (Total)........................ 422,265 848,138 Rice........................................... ........... Wheat Flour........................................... 358,343 752,403 Foodstuffs, Preserved (Total)............... 296 6,829 Bottling, Misc. (Total)........................... 1,865,224 4,658,266 Unit — 404,508 (1949) Unit — 166,589 (1950) Cleansing and Laundry (Total)........... 620,074 476,788 Entertainment Equipment (Total) . . . 12,755 9,181 Livestock — Bulbs — Seeds (Total).. 744 103,558 Medical (Total).......................................... 842,247 649,907 Musical (Total)......................................... 116,867 154,254 Office Equipment (Total)....................... 209,974 230,570 Office Supplies (Total)............................. 46,160 109,949 Paper (Total).............................................. 6,657,171 5,854,433 Photographic (Total)............................... 36,746 25,740 Sporting Goods (Total)........................... 143,763 74,348 Stationery (Total)..................................... 407,280 475,332 Tobacco (Total)........................................ 1,072,271 1,701,412 Chucheria (Total)..................................... 176,090 202,715 Clothing Apparel (Total) 417,712 882,403 (Including men’s, women’s and children’s)............................................. Cosmetics (Total)...................................... 207,704 460,765 Fabrics (Total).......................................... 1,048,897 987,291 Jewelry (Total).......................................... 37 33 Leather (Total).......................................... 224,099 230,384 Textiles (Total)......................................... 3,754,019 6,560,053 Twine (Total)............................................ 94,240 88,397 Toys (Total)............................................... 122,381 117,526 General Merchandise (Total)............... 713,057 523,054 Non-Commercial Shipments (Total). . 45,469 60,133 Advertising Materials; Etc. (Total).. . 804,873 25,795 Automobiles and Trucks By Karl E. Gay Sales Representative, Ford Motor Company BECAUSE of conflicting interpretations of the regula tions concerning the presentation of applications for import quotas on passenger automobiles and of additional information required by the Control Office sub sequent to presentation, no import quotas for passenger cars have yet been issued, and, because of the latest action on the part of the Cabinet directing the budgeting of dollar expenditures for exports, it is extremely doubtful when or even if such quotas will be forthcoming. As can be seen from the attached charts showing the accumulated sales for the year 1949, more trucks were sold than passenger cars, although the passenger-car per centage was very high in view of the import restrictions, but this is explained by a large inventory carryover from 1948. Sales possibilities for the future are uncertain, at least until the present situation clarifies itself and pro duction schedules can be scaled down to the level of the new regulations. As unit-volume drops, however, all dealers will be forced to turn to the service-side of their business in order to stay in business. As unit-sales volume decreases, collections on out standing notes receivable will increase without .the corre sponding re-utilization of funds thus obtained, and thus a trend will be seen toward a large cash position. Fairbanks -Morse for dependable electric power at low cost! Where dependability and economy are of prime importance, small users choose Fair banks-Morse Model 42 Diesel Generating Sets. One reliable and established company stands behind both generator and Diesel engine. The engine is heavy-duty, 2-cycle, continuous service type- Its slow speed means long life . . . and it can be operated successfully on lower grades of fuel- Can be supplied in either A.C. or D.C. See us today for full details. Exclusive Distributors ATLANTIC, GULF & PACIFIC CO. OF MANILA — Merchandise Sales Division — Robert Dollur Bldg., Muelle del San Francisco & 23th Street Port Area, Munila Tel. 3-36-61 (Connecting all Depts.) 118 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1950 GOODYEAR Philippine Islands, Grand Total Accumulated Sales, 1949 MAKE Ford.................... CARS TRUCKS TOTAL Number 774 % 17.54 Number 2,058 % 36 47 Number 2,832 28 16 Mercury............. 315 7.14 315 3 13 Lincoln............... 79 1.79 79 .78 Prefect................ 2 .04 4 07 6 .06 Chevrolet........... 1,275 28.89 1,823 32.30 3,098 30.81 Buick................... 174 3.94 174 1.73 Cadillac.............. 26 .59 26 .26 Pontiac............... 261 5.91 261 2.59 Oldsmobile......... 253 5.73 253 2.51 G.M.C................. 77 1.36 77 .76 Chrysler............. 32 .72 32 .32 DeSoto................ 189 4.28 63 1.11 252 2.51 Plymouth........... 142 3.22 142 1.41 Dodge.................. 253 5.73 121 2.14 374 3.72 Fargo................... 94 1 66 94 .94 I.H.C................... 1,231 21.81 1,231 12.24 Packard.............. 80 1.81 80 .79 Reo...................... 41 .72 41 .40 Nash.................... 111 2.51 111 1.10 22 .50 22 .22 Willys’................ 275 6.23 68 1.20 343 3.41 Hudson............... 46 1.04 46 .46 Studebaker........ 93 2.11 33 .58 126 1.25 Vauxhall............. 7 .16 7 .07 Fiat...................... 9 .16 9 .09 White.................. 6 .10 6 .06 Crosley............... 3 .07 3 .03 Bedford............... 5 .09 5 .05 Diamond T. . . . 7 .12 7 .07 Federal............... 2 .03 2 .02 Renault............... 1 .02 1 .01 Grand Total.. 4,413 5,642 10,055 Philippine Islands, Provincial Sales, 1949 make cars trucks total Ford.................... Number 286 29.12 Number 959 • % 37.00 Number 1,245 % 34.83 Mercury............. 93 9.57 93 2.60 Lincoln................ 12 1.22 12 .33 Chevrolet........... 354 36.05 985 38.00 1,339 37.46 Buick................... 57 5.80 57 1.59 Cadillac............... 7 .71 7 .19 Pontiac................ 60 6.11 60 1.68 Oldsmobile......... 6 .61 6 .17 G.M.C................. 24 93 24 .66 Chrysler.............. 4 .41 4 .11 DeSoto................ 6 .61 4 .15 10 .28 Plymouth........... 8 .81 8 .22 Dodge.................. 17 1.73 25 .96 42 1.17 Fargo................... 21 .81 21 .58 International. .. 556 21.45 556 15.56 Packard.............. 3 .30 3 .08 Reo...................... Nash.................... 7 .71 7 .19 Willys.................. 54 5.50 8 .31 62 1.73 Hudson............... 2 .20 2 .05 Studebaker........ 6 .61 7 .27 13 .36 Bedford............... 3 .11 3 .08 Grand Total.. 982 2,592 3,574 Total Sales 1949, Manila, Metropolitan Area ROAD LUG TRUCK TIRES THE GOODYEAR TIRE & RUBBER CO. OF THE PHILIPPINES, LTD. lltli & Atlanta Sts. Telephones: Port Area. Manila 3-32-16, 3-38-07, 3-38-08 Hranches & Warehouses: Cebu, Bacolod, Iloilo MAKE CARS Number % Ford.................... 488 14.23 Mercury............. 222 6.47 Lincoln............... 67 1.95 Prefect................ 2 .06 Chevrolet........... 921 26.84 Buick................... 117 3.42 Cadillac.............. 19 .55 Pontiac............... 201 5.86 Oldsmobile......... 247 7.20 G.M.C................. Chrysler............. 28 .81 DeSoto................ 183 5.33 Plymouth........... 134 3.91 Dodge.................. 236 6.88 Fargo................... International. . . Packard.............. 77 2.24 Reo...................... Nash................... 104 3.03 Austin................. 22 .64 Willys............... 221 6.44 iTRUCKS TOTAL Number % Number % 1,099 36 05 1,587 24.49 222 3.43 67 1.03 4 .13 6 .09 838 27.48 1,759 27.15 117 1.80 19 .29 201 3.10 247 3.82 53 1.74 53 .82 28 .43 59 1 93 242 3.74 134 2.07 96 3.15 332 5.12 73 2 39 73 1.12 675 22.15 675 10.42 77 1 19 41 1 34 41 .63 104 1.61 22 .34 60 1.97 281 4.33 March, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 119 Hudson........... 44 1.28 44 .68 Studebaker... 87 2.53 26 .85 113 1.74 Vauxhall........ 7 .21 7 .11 Fiat.................. 9 .29 9 .14 White.............. 6 .19 6 .09 Crosley........... 3 .09 .06 3 .04 Bedford........... 2 2 .03 Diamont T... 7 .22 7 .11 Federal........... 2 .06 2 .03 Renault.......... 1 .03 1 .01 Total........... 3,431 3,050 _ 6,481 Food Products By C. G. Herdman Director, Trading Division, Marsman Co., Inc. THE major item of interest concerning food products during February was the ratification of the Inter national Wheat Agreement by the Senate of the Philippines, the signing of that agreement by the President, and the advices received from the United States that the agreement had been made effective in Washington as of February 27. Up to the present time, the necessary ex ecutive order has not been issued to implement the I.W.A. and to assign the control of the flour imports which will be necessary under the agreement. No definite informa tion is available as to how or to whom flour import quotas will be allotted. The most equitable form would seem to be to have the flour imports handled in a manner similar to that of items included under the Import Control; it is strongly recommended that quotas be allotted to importers of historical record during the calendar year 1949, in direct ratio to the quantities imported during that year by each individual indentor, reserving say 20c( of the total quantity for assignment to new dealers or importers, as is done under the general Import Control. It is to be noted that the quantity of imports under the I.W.A. during any one crop-year, August 1 up to the following July 31, is limited to 196,000 metric tons of wheat, which is equivalent to an average monthly importation of approximately 518,000 bags of wheat flour of 50 pounds each. It is evident that this quantity is far from sufficient to satisfy the present requirements of the Philippines. Importations during the year 1949 averaged over 700,000 bags monthly, all of which may be said to have entered into consumption as there was no material surplus in local stocks during the first two months of this year. In fact, flour stocks during February have been on the short side, and it is probable that a definite shortage will soon be felt unless arrangements are immediately made to permit prompt imports under I.W.A. The consumption require ments of the country during the present year should actually be greater than last year for the reason that imports of all bakery products, including soda crackers, biscuits, cookies, cakes, etc., have been restricted by 80% under the Import Control, and to fill the demand for these products, partic ularly soda crackers, very considerable quantities of flour will be used in local factories for their manufacture. It is evident that the minimum consumption of flour will be well over 600,000 bags monthly, although the average import permits under I.W.A. will be only about 518,000 bags. Fortunately this limit under I.W.A. will not apply during the present crop-year. Under the terms of the agreement, the Philippines is at liberty to import between now and the end of July, 1950, the full amount of flour corresponding to the annual quota of 196,000 metric tons of wheat, which is well over 6,000,000 bags, 50 pounds each. As there are only five months remaining in the cropyear, this means that the Philippines will be permitted to import monthly between now and July any quantity up to about 1,200,000 bags monthly, should such imports be desired. The country is under no compulsion to take the full amount of the wheat or wheat flour provided for under A CONFERENCE IN COMFORT ... 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Under the agreement, importing countries are not required to take the full amount of flour specified unless the exporting countries are deli vering wheat or flour on the basis of the floor-price on the agreement which at present is $1.50 per bushel. There seems to be no immediate prospect of flour being offered at anywhere near the floor-price. I.W.A. further provides^that importing countries desiring to change their annual quota may make applica tion to the Council prior to the end of the crop-year, July 31, each year under the agreement. Thus, the Philippines You can stop over in beautiful Hawaii., swim st famed Waikiki Beach ... enjoy Hawaii’s balmy climate, exotic flowers. Or if you prefer, you can fly straight through to the U.S. in your comfortable Pan American Clipper * . You enjoy the finest in air travel. You can fly from Manila to the U. S. A. in Pan American’s new double-decked Clippers. Largest and fastest airliners in the world, the “double-deckers” offer you more speed, more power, more comfort that yo-i’ve ever enjoyed aloft before ! You can choose your gatev/ay city... Los Angeles ... San Francisco ... Portland... Seattle. Only Pan American flies direct to all four gateway cities. Only Pan American gives you all these extras ... and AT NO EXTRA COST For fares and schedules, call your Travel Agent or... Pan American—Manila Hotel or Downtown Offices (270 Plaza Cervantes) Phone: 2-79-91 Airport Office—Phones: 5-10-75, 5-12-65 • Trade Mar * . Pan American World A.rwayr, Inc. flV/Vo c Pan American World Airways \ ,/ is at liberty, if it is ascertained that the quantity presently indicated will be insufficient to cover consumption-needs, to apply to the Council before July 31 this year for an increased allotment for the coming crop-year. Such appli cation would be referred by the Council to the wheat exporting countries whose approval would be necessary before such increase could be made effective. World condi tions existing at present with regard to wheat, indicate that there should be no difficulty in securing such approval if an increase is requested. It is the opinion in some quarters that increased pro duction of rice in the Philippines will be sufficient to sup plant flour-consumption to a considerable degree in the near future. A study of the facts in this case, however, indicates that rice production for the coming year may show a slight increase over previous production, and subse quent years may show still further increases, but there is absolutely no indication that during the life of I.W.A., which has three years to run after July, 1950, there will be anywhere near sufficient rice to cover the present demand in the Philippines and that very considerable quantities will have to be imported annually even though rice con sumption is supplemented as it has in the past year by over 700,000 bags monthly of wheat flour. Wheat flour is at present being sold, delivered in the Philippines, at a price approximately 50% only of the same weight of rice. There can be no doubt that pound for pound flour repre sents greater food value than does rice, and in the effort to conserve dollar exchange, which is at present necessary, it would certainly seem desirable for the welfare of the country that if any curtailment is to be made in imports of these badly needed basic foods, that the restriction in imports should be applied against rice rather than against flour. Ratification of the International Wheat Agreement by the Philippines represents a very material saving in dollars to this country. Quotations of wheat flour under I.W.A. show present saving in cost on imports from the United States will be approximately Pl.20 per 50-pound bag and the reduction on imports from Canada and Aus tralia apparently will be in the neighborhood of P.50 per bag. This saving in price, of course, represents a subsidy which is directly or indirectly paid by the government of the exporting country to the millers exporting the flour to the Philippines. Effects of the import controls are now being felt in the local market. A serious shortage has developed in many items of canned fruits, canned vegetables, canned meats, etc., which is reflected in higher prices to consumers. Canned fish stocks as yet are ample, but it is believed a serious shortage will develop in the Philippines during the coming months. The fishing season on the Pacific Coast is over. Fishing will not be resumed until the second half of July or later. Stocks there available for purchase and import are very small. Extreme delay on the part of the Import Control Board in granting import quotas is accentuating the shortage of supplies locally on controlled commodities. The present Import Control went into effect as of December 1 last. Up to the end of February, only a score or so of importing entities have been able to secure import-quota allotments for the current year. Several hundred other importers have had their applications for quota allotments filed for a considerable period of time, but have been unable to secure action on the applications. There is a marked shortage in local stocks of imported fresh fruits. Apples and oranges, even though controlled, are supposed to be permitted to enter in quantities up to those imported during 1948. Delay in granting import quota allotments has practically stopped the importation of fresh fruits, and retail prices in the local market have more than doubled. March, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 121 Evaporated milk, an uncontrolled item, is still plentiful in this market, although prices have advanced somewhat apparently in sympathy with the general advance in prices of other foodstuffs. Difficulty in securing exchange permits to cover further importations, indicates a possible shortage in this essential commodity within a few weeks’ time. Particularly noticeable are the extremely small stocks to be found in Manila of frozen goods such as fresh meats, etc. Judging from reports appearing in Manila newspapers, it seems probable that restrictions on imports of foodstuffs may be relaxed in the near future, and such action would be highly desirable as otherwise there is going to be a tre mendous shortage of essential foodstuffs, and living costs will be still further increased. The advance in prices of locally produced foodstuffs during recent weeks has been particularly noticeable. Textiles Ey L. W. Wirth General Manager, Neuss, Hesslein Co., Inc. IN the February issue of the Journal we pointed out that the Philippines is not over-supplied with cotton and rayon textile fabrics, as post-war imports only averaged about 134,000,000 square yards yearly, as against pre-war imports of 160,000,000 square yards. Based on the percentage cuts in Executive Order No. 295, importations during 1950 of cotton and rayon fabrics will be reduced to approximately 36,000,000 square yards, or roughly 22% of the yearly pre-war average. In Circular No. 19 of December 10, the Import Control Board announced that for articles previously uncontrolled, quotas would be issued for the period from December 1, 1949, to December 31, 1950. Many importers had sub stantial quantities (of previously uncontrolled fabrics) on order prior to December 1 and were hopeful of obtaining their quotas in December on the basis of Circular No. 19 to enable shipments to come forward. However, there has been much delay in the issuance of these quotas; only late in February the Import Control Office started to give out new quotas for the January/April portion of importers’ quotas, and up to March 3 very few licenses have been granted. This means that for the period of January to April approximately 12,000,000 yards will be licensed, or less than one yard per person and that means that before very long our population of 19,000,000 will be short of textile fabrics. This will result in a growing inflation at the ex pense of the laboring classes particularly, and for that reason alone it is essential to bring in this type of consumer goods in more substantial quantities in keeping with the needs of the people. Due to the delay in issuing the licenses for 1950, arrivals during February were much less than normal replace ment requirements, and it is expected there will be fewer goods arriving during March and April with the result that prices will further advance. As a matter of fact, local selling prices as of November 30 (when new import controls were put into effect) have since advanced an average of approximately 25%. Reports from the Textile Industry of New York indicate that more than 90% of the mills’ production of the most important staple items for the second quarter, i^e. April, May, and June, have been contracted for and that there has been a hardening price-tendency for July to December delivery, particularly in certain fabrics used for making low-priced shirts and dresses. This hardening of prices in the United States due to the mills’ production being sold up so far in advance, furPractical... Econo micall STORAGE CABINETS All-steel. . . Rounded front corners. . .Double doors, with 3-point lock ing device... Four shelves, udjustuble every 2 inches without need of tools. . . Polished c h r o in c handles. . . Finish green. . . 78” high x 36” wide x 21” deep. . . No bolt heads on front or sides. . . Ideal for storage pur poses. STEEL SHELVING All-steel. . . For storage or display of merchan dise. . . Eight adjust able shelves, can be moved up or flown every 1 * /•> inches. . . Sections 84” high x 36” wide x 18” deep, can assemble continuously and join together to form u rack, of shelving. ★ On Display For Your Inspection At F. H. STEVENS & CO., INC. El Hogar Filipino Bldg. Juna Luna St. Manila TELS. 2-86-13 & 2-88-61 SUPERIOR GAS & EQUIPMENT CO. tn MANUFACTURERS OF: tn cn A £ w a cs c: • Highest Quality OXYGEN & ACE TYLENE GASES For All Welding Purposes • SUPERFLAME Bottled & Tank Gas for all Cooking Purposes — Complete Installation & Service facilities • CARBON DIOXIDE In liquid form for bottled drinks CARBON DIOXIDE “Superfrie” Solid form for Frozen Food preserva tion • HYDROGEN GAS For Balloons & Underwater cutting of Steel • CARBON DIOXIDE In liquid form for Fire Extinguishers Distributors of NATIONAL CAR BIDE, WELDING EQUIPMENT & SUPPLIES — “STOODY” Welding Rods For hard surfacing of imple: ments — Machinery parts — TAPPAN AUTOMATIC GAS RANGES TELS: 6-61-02 & 6-75-29 P. O. BOX 2507 MANILA 122^ AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1950 "full PROTECTION..." ther emphasizes the desirability, of re-studying and re appraising the percentage-cuts imposed on textiles in Ex ecutive Order No. 295, and further emphasizes the need to release quotas as quickly as possible while importers still have the opportunity to purchase available supplies of textiles in the United States before further advances in prices are effected. FIRE, MARINE, MOTOR CAR, WORKMEN’S COMPENSATION, MISCELLANEOUS INSURANCE, FIDELITY, SURETY BONDS, MORTGAGE LOANS The PHILIPPINE GUARANTY CO., INC. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso 8“ Janda ON January 31, 1950, in Case No. L-2216, the Supreme Court affirmed a decision of the Court of Industrial Relations requiring that “a majority of the laborers to be employed should be native.” The Supreme Court said: “Wc are of the opinion that the order under consideration meets the test of reasonableness and public interest. The passage of Common wealth Act No. 103 was ‘in conformity with the constitutional objective and * * ♦ the historical fact that industrial and agricultural disputes have given rise to disquietude, bloodshed and revolution in our coun try.’ (Antamok Goldfields Mining Co. vs. Court, 40 O. G., 8th Supp.. 173.) ‘Commonwealth Act No. 103 has precisely vested the Court of Industrial Relations with authority to intervene in all disputes between employers and employees or strikes arising from differences as regards wages, compensation, and other labor condition which it may take cognizance of.’ (Central Azucarera de Tarlac vs. Court, 40 O. G., 3rd Supp., 319, 324.) Thus it ha s jurisdiction to determine the number of men to be laid off during off-season. By the same token, the court may specify that a certain proportion of the additional laborers to be em ployed should be Filipinos, if such condition, in the court’s opinion, ‘is necessary or expedient for the purpose of settling disputes, preventing further disputes or doing justice to the parties.’ 3rd FLOOR • INSULAR LIFE BLDG. • PLAZA CERVANTES MANILA • PHONE 2-81-12 “We can not agree with the petitioner that the order constitutes an unlawful intrusion into the sphere of legislation, by attempting to lay down a public policy of the state or to settle a political question. In the first place, we believe, as we have already explained, that the court’s action falls within the legitimate scope of its jurisdiction. In the second place, the order does not formulate a policy and is not political in char acter. It is not a permanent, all-embracing regulation. It is a com promise and emergency measure applicable only in this case and cal culated to bridge a temporary gap and to adjust conflicting interests in an existing and menacing controversy. The hiring of Chinese laborers by the petitioner was rightly considered by the court likely to lead the parties away from the reconciliation which it was the function of the court to effectuate. “As far as the petitioner is concerned, the requirement that ma jority of the laborers to be employed should be Filipinos is certainly not arbitrary, unreasonable or unjust. The petitioner’s right to employ labor or to make contract with respect thereto is not unreasonably curtailed and its interest is not jeopardized.” In another case decided on the same date, the Supreme Court affirmed a decision of the Court of Appeals holding that an insured was entitled to recover from the insurance company for a loss occasioned during the Japanese occupa tion despite a clause in the policy absolving the insurer in event the loss was occasioned by war, etc., or if the loss oc curred during the existence of “abnormal” conditions arising out of war, etc. The insurer also set up as a defense that the policy provided that if the circumstances affecting the building were changed without the consent of the insurer so as to increase the risk of fire, the insurance ceased. It also urged another violation of the policy because the insured had failed to disclose a previous fire. The Supreme Court, in passing upon the argument that occupation of the city and sealing of the building by the Japanese, in creased the risk, that the fire occurred during “abnormal conditions”, and that the claim was false and fraudulent because of denial of previous fire, said: March, 1950______________ AMERICAN CHAMBER OF COMMERCE JOURNAL 123 “The findings of the Court of Appeals (1) that the sealing of, and the placing of posters on, the building by the Japanese Forces did not increase the hazard or risk to which the building was exposed and, therefore, the insurance did not cease to attach under Article 8 of the policies; and (2) that the fire which destroyed the building ‘was purely an ordinary and accidental one, unrelated to war, invasion, civil com motion, or to the abnormal conditions arising therefrom,’ are binding and conclusive upon this Court. It has not been shown that the findings of fact made by the Court of Appeals are arbitrary, whimsical, mani festly mistaken, illogical, or absurd, so as to warrant this Court to step in in the exercise of its supervisory power. And as to the defense based on article 13, the same is not set up in the special defenses, unlike the one under article 8 which is set up in the 4th and 5th special defenses and the other under article 6 set up in the 2d special defense. This Court cannot determine whether the defense under article 13 is included in that of article 11 pleaded in the 6th special defense because the policies are not before it.” Consequently, the derision of the Court of Appeals on the point of false declaration of no previous fire, was not passed on by the Supreme Court. However, it would be well for all insurance companies to note what the Court said about raising defenses and possible waiver of such by not pointing them out in any denial of liability, and also the advisability of making specific all defenses upon which it proposes to rely. The Court of Appeals said: “As to the third assignment of error, the record discloses that the plaintiff-appellee had a previous building on the land on which the insured building was built, which had also been destroyed by fire from neighboring buildings. On the basis of this fact, it is claimed on defend ant-appellant’s behalf that the plaintiff-appellee should be considered as having forfeited all benefits under the policies, in accordance with Article 13 thereof. Three objections are raised against this claim, namely, that it had not been raised in defendant-appellant’s answer; that it has been waived and appellant is estopped from asserting it now, especially for the first time on this appeal; and that the misstatement is immaterial and not fraudulent. “The first objection is procedural, but it is a valid one because plaintiff-appellee was not aware of this defense and had no opportunity to introduce evidence to counteract it. The second objection is also well founded, as the defendant-appellant by its letter rejecting the claim disclaimed liability only under Article 6, thus making plaintiff appellee believe that the defense was on Article 6 alone (32 C. J. p. 1354). We also sustain the third objection, as the previous fire that appellee failed to mention in answering the questions appearing in the claims application is certainly immaterial and irrelevant, in so far as the fire in question is concerned (32 C. J. p. 1271).” 1 MOREG00DS Jijj FAS!ER .FASTER ~ FOR E ESS MONEy ? VAI tWORKSAVEJi] IflLKi ELECTRIC PALLET TRUCK > PALLET LOADS move "on the double” when this Worksaver is on the job. Material handling is easier, more effi cient because lift and travel are electric. Workers like the muscle-saving "stroll and steer” operation. You’ll like the Yale Worksavu- Electric Trucks be cause they cut your handling costs. THE EDWARD J. 1150 Arlegui Street Choose from these seven models: Lowl.ift Platform ... Low-Lift Pallet... Tin Plate . . . High-Lift Platform . . . HighLift Tilting and Non-Tilting Fork . . . Tractor. Capacities up to 6,000 lbs., de pending on type. A phone call or letter will bring you complete information. Get the details from us today. NELL COMPANY Tel. 3-21-21 TOOLS THAT KEEP INDUSTRY /yAi P ON THE MOVE . . . MADE BY \ —« The most vital subject today! Philippine Safety Council By Frank S. Tenny Executive Director INDICATING the trend of local industrial and insur ance companies to affiliate with the national safety movement, five new members have enrolled in the Phil ippine Safety Council during the past few days. They are: Subscribe to the American Chamber of Commerce Journal REALISTIC, EXCITING, LIVING HISTORY PEACE on EARTH “contains the stories of people who have dared to believe that peace is accomplish * able and who, along with many others, have actually set about the task. Along the way there have been many complications and disagreements; but on one point they are unanimously agreed: there must 'be no war—PEACE on EARTH must come to be.” 124 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1950 When confronted with refractory problems in your plant, consult us and we will give you the benefit of 30 years of experience by the Most Advanced Lire Brick Plant in the world, the A. P. Green Fire Brick Company of Mexico, Missouri. Their products arc not the cheapest but by far the most economical in use. PRICES ON APPLICATION 1) Standard Vacuum Oil Company, represented by Mr. J. A. Parrish. 2) International Harvester Company of Philippines, represented by L. Davis. 3) Manila Fire Insurance Association, L. P. Ralph, President. 4) Filipinas Compania de Seguros, represented by Miguel Ortigas. 5) Tyres Punctureprufe Service Company, represented by Mr. Matthew S. Tee. These five new members bring the 1950 enrollment in the Safety Council to 25 company members and 23 individual members. During the month of February, safety programs are being conducted in the following listed firms under Safety Council supervision: San Miguel Brewery, Manila Electric Company, Ayala y Compafiia, Pepsi-Cola Bottling Com pany, PRATRA, Pangasinan Transportation Company, Atlantic, Gulf and Pacific Company, Santa Clara Lumber Company, and Manila Trading and Supply Company. A safety survey is also being conducted this month on the premises of the International Harvester Company. FIRES. AND FIRE LOSSES, MANILA, 1949 The figures have been obtained through the cooperation and courtesy of Cipriano Cruz, Chief, Fire Department, City of Manila, and his assistants Number of fire Alarms: 1947—739 1946—759 1948—647 1949—820 1946—694 Cause Cases: 1948—607 1949—795 ★ Sole Distributors: Manila Machinery & Supply Co., Inc. 233 David Manila 675 Dasmarinas CAUSE 1946 Sl>94,7fiC 1949 TOTAL JOB PRINTING BUSINESS PRINTING PERSONAL PRINTING ) * —Noted for typographic ex cellence and clarity of press work. ★ NO JOB TOO LARGENO ORDER TOO SMALL— Trained, experienced men to help you solve your printing problems. ★ For Complete Estimates Phone 3-24-70 Cigarette butts................ Bonfires............................. Electricity......................... Spontaneous combustion Gasoline............................ Lighted candle................. Suspected arson............... Match................................. Unknown ......................... Flying sparks.................. Rekindling........................ Oil lamp............................ Native stove..................... Kerosene lamp................. Kerosene stove................. Friction............................. Electric stove................... Acetylene.......................... Overheating...................... Chimney.......................... Asphalt............................... Alcohol ........................... Firecrackers...................... Calcium carbide............... Floor wax.......................... Rubbish........................... Welding torch ................ Film................................... Miscellaneous................. Stove................................ 200 18 190 129 10 126 16 274 35 67 10 4 38 3 16 6 7 3 15 6 6 6 12 28 3 8 3 4 36 3 19 8 McCullough PrintingCo. (A Division of Philippine Education Co., Inc.) 1104 Castillejos St. Quiapo, Manila 162 23 175 50 39 7 9 12 17 12 202 173 148 87 23 22 18 12 12 11 5 10 6 5 12 3 3 37 8 7 6 5 4 3 27 13 23 16 7 13 26 7 6 7 3 36 3 12 111 8 2,780 The above figures are no doubt slightly inconsistent due to change of fire-cause classifications from year to year. On the whole, they are highly informative. Fixe losses increased from P4.000.000 in 1946 to P7,000,000 in 1949. The total of 53 lives were lost in these fires, and 402 persons injured. Ironically, the month of March (fire-prevention month) has seen the worst losses. MOTOR SHItlll'E CO., MC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area — Tel. 3-36-21 March, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 125 Other Chambers of Commerce Philippine Chinese General Chamber of Commerce Statement of Mr. Alfonso Z. Sycip AFTER having served the Philippine Chinese General Chamber of Commerce for more than forty years in various capacities, I have decided this year to decline my re-election to the directorship and the Presidency of the Chamber. I should like to go into a brief explanation of my association with the Philippine Chinese General Cham ber of Commerce, and of my decision to retire from active association with this body. I have come to this decision because I believe it is time for us to give way to capable leaders of a younger genera tion so they may prepare themselves and the Chinese Chamber may always remain a well-organized and well-led organization. I also believe that, after having devoted more than half of my lifetime to the furtherance of the purposes of the Philippine Chinese General Chamber of Commerce, I should now be allowed a rest and be excused from taking an active part in the management of its affairs. I have always taken and followed the view that the immediate objectives of the Chinese Chamber in promoting the well-being of Chinese businessmen, must and should be subordinated to the overall importance of making the Chamber a vigorous institution for the promotion and im plementation of constructive cooperation between local Chinese businessmen and the Philippine authorities as well as with other elements of our business and civic community. It is chiefly for this reason that I consented to be closely associated with the Chamber’s activities for so many years. I think that my many friends in the Philippine community can attest to the fact that I have achieved moderate suc cess in my endeavors to properly integrate the Chinese business community into the framework of Philippine economic life with benefits to the public interest. As a result of the election this year, my successor as President is Mr. Sy En, a person of unquestioned integrity, of outstanding ability, and with an intimate appreciation of the primary objectives of the Philippine Chinese General Chamber of Commerce. With the support of the directors and other officers of the Chamber, I am confident that Mr. Sy En will be able to continue and further enlarge the primary objectives of the Chamber with due regard to the legitimate interests of the Chinese business community and with full recognition that such interests cannot be protected and furthered outside of the basic framework of Philippine-Chinese cooperation. The ONE BRIGHT SPOT when you figure the family BUDGET! Substantially the same rates for electric serv ice are in effect now as before the war. Compare this fact with the increase in price of other commodities. MANILA ELECTRIC COMPANY 134 San Marcelino Manila 126 AMERICAN CHAMBER OF COMMERCE JOURNAL_______________March, 1950 ------------WHEN you THINK OF POWER THINK OF “Caterpillar ** “Caterpillar” has earned a reputation for dependability, economy, and durability. You get more power at less cost when you choose “Caterpillar”, whether it be die sel engines, tractors, motor graders, or earthmoving equipment. More power to you with “Caterpillar”! • Iloilo • Ctbu • Davao • Cotabalo KOPPEL=J (PHILIPPINES) p S3RD STREETS | N C. PORT AREA * TEL- 3 * 37-53] ^Zamboans^^^ Although I am now retiring to my private business, I wish to say that, with the welfare of the Philippines at heart, I will always stand ready to render any service or possible help which the Chamber may be in need of in furthering its purposes. Officers of the Philippine Chinese General Chamber of Commerce Advisory Council: Messrs: Yu Khe Thai Albino Z. Sycip W. J. Wen K. Huang Tan Samto Eduardo Co Seteng Honorary President: Mr. Alfonso Z. Sycip Board of Directors: Executive Board: Five members of the Standing Committee: Messrs: Sy En — President George Dee Se Kiat — Vice-President Go Kim Pah — Vice-President Yu Eng Poh — Treasurer Dy Huanchay — Member Other Members of the Executive Board: Messrs: Go Puan Seng Ang Tuan Kai Uy Pit Lok Peter Lim Chua Lian Huat Chua Limco Members of the Control Board: Messrs: Chua Cho Ching Yu Tiao Kun Chiong Phai Hun Cham Say Yao Shiong Shio Secretary........................Mr. Ty Kong Tin Executive Secretary. Mr. Yang Sepeng Your Valuable papers photographed IN ANY SIZE Facilitate your transac tions by having dupli cates of valuable papers made. KODAK PHIL IPPINES. offers com plete duplicating servvenicnce. Duplicated photograph ically in exact size and reproduced in every de tail for as low as Pl for the first copy up to and including 8,/'->” x II". 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SAVE TIME AND MONEY WI TH “KODACOPIES” 7’ivo Convenient Locations To Serve You THE KODAK STORE 138 Escolta, Manila KODAK PHILIPPINES, LTD. 104-13th Street, Port Area, Manila Executive Order No. 302 AMENDING EXECUTIVE ORDER NO. 297, DATED DECEMBER 24, 1949 BY virtue of the powers vested in me by Republic Act No. 330, entitled “AN ACT AUTHORIZING THE PRESIDENT OF THE PHILIPPINES TO ESTABLISH A SYSTEM OF IM PORT CONTROL BY REGULATING IMPORTS OF NON-ES SENTIAL AND LUXURY ARTICLES, CREATING AN IMPORT CONTROL BOARD, AUTHORIZING THE ISSUANCE OF RULES AND REGULATIONS TO CARRY INTO EFFECT SUCH CON TROL AND PENALIZING VIOLATIONS OF THIS ACT,” I, ELPIDIO QUIRINO, President of the Philippines, do hereby order: Section 1. Section 2 of Executive Order No. 297 is hereby amended to read as follows; • Articles or materials included in Appendix ‘A which are necessary for the operation of locally established industries and THOSE NEEDED IN CONSTRUCTION PROJECTS COVERED BY REHABILITATION CON TRACTS. FINANCED PARTLY OR WHOLLY BY WAR DAMAGE FUNDS, as determined IN EACH CASE by the Import Control Board, shall not be subject to the percentage reduction fixed in Appendix ‘B’, but the manu facturer OR CONTRACTOR shall apply for import permit therefor. Sec. 2. This Order shall take effect upon its promulgation. Done in the City of Manila, this 14th day of February, in the year of Our Lord, nineteen hundred and fifty, and of the independence of the Philippines, the fourth. (SGD.) ELPIDIO QUIRINO President of the Philippines By the President: (SGD.) MARCIANO ROQUE Acting Executive Secretary CLAVECILLA RADIO SYSTEM Telegrams Between MANILA, CEBU and ILOILO Fast Accurate Dependable Tel. 2-83-12 March, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 127 COST OF LIVING INDEX OF WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1946 TO 1949 (1941 = 100) Bureau of the Census and Statistics Manila 1946 | f All | Food ,59.15) (8.43) Cloth- iFuel, Light|Mi«cel-|pui ing and Water laneous ing Power i Peso (0.62) | (13.94) | (17J6)|of i 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) 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 KA * »rrh . 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 1948 January.......... 391.2 428.3 453.9 224.5 304.6 249.9 .2556 February....... 368.5 392.0 453.9 223.8 301.1 254.4 .2714 March............ 349.4 361 0 453.9 214.6 308.1 255.9 .2862 April............... . 356.1 374.1 453.9 209.4 289.7 254.8 .2808 May................. 349.S 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 i Average number of persons in a family = 4.9 members. - 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. 1949 January........ . 363.8 386.8 453.9 202.0 279.0 258.9 .2750 February.... . -343.8 355.5 453.9 203.0 277.5 258.9 .2909 March........... . 346.3 358.2 453.9 202.0 276 3 258.5 .2896 April............. . 348.7 362.6 453.9 197.6 287.5 257.1 .2868 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 October .... 332 9 343 3 453.9 199 9 264 8 245.0 .3004 November... . 339 6 356 1 453 9 191.1 258.4 239 8 .2945 December . . . 329 6 335 9 453 9 202.9 259 5 256 2 .3035 1950 January .... 332 3 336 8 453 9 238 0 253. 1 269 3 .3010 February . . . . 336.9 340.2 453.9 233.3 257.8 284.1 .2969 agents telephones BROKERS 3-34-20 CIIAI<TEI<EI<S 3-31-29 American Steamship Agencies, Inc. Manila, Shanghai, Tokyo, Yokohama Cable Address: 203 Myers Bldg. “AMEKSIIIP” Area SILVER & JAVA PACIFIC SILVER LINE, LTD. London. E. C. 2 KERR STEAMSHIP CO., INC. 17 Battery Place New York MANILA VANCOUVER LOS ANGEL LINES JAVA PACIFIC LINE N. V. S. M. "Nederland" Amsterdam Koninklijke Rotterdanuche Lloyd, N. V. Rotterdam JAVA PACIFIC LINE, INC. General Agents 25 Broadway New York ILOILO CEBU ' "sEATTLE PORTL AND ES and SAN FRANCISCO To and From CALCUTTA, BOMBAY and PERSIAN (.ULF PORTS PRINCE LINE, LTD. FROM II. S. ATLANTIC AND PACIFIC COAST PORTS MANILA FROM PHILIPPINES TO HALIFAX and U. S AT LANT IC COAST PORTS For Particulars See: ROOSEVELT STEAMSHIP AGENCY, INC. zl G E N r S 3rd Floor. Trade A Commerce Bldg., Juan Luna Tel. 2-82-01 Insist on Cj-F Lamps GENERAL 1^) ELECTRIC PORT AREA IP.I.) INC. MANILA A Product of General Electric Co., U.S.A. 128 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1950 inventory FIMNtW ¥ A Field Warehouse of Luzon Brokerage Company can be of great service in your 1950 financing. ¥ Enquire of your Banker or consult L B C. All enquiries in confidence. Telephone 3-34-31 The= “LET YOUR HAIR DOWN” ----- ~ —- Column IN asking for some missing issues of the Journal, so that he could com plete the volumes for 1947, 1948, and 1949 for binding, the Rev. James J. McGinley, S.J., Director of the Ateneo de Manila, wrote us (in part): “Through your courtesy we are now regu larly receiving the American Chamber of Commerce Journal and find it very valuable for our students and teachers in this depart ment. It is being mailed to the Director, Department of Social Sciences, Ateneo de Manila. “We have combined issues formerly sent to the general library here and are now trying to complete our set. Kindly advise us what it is possible for us to do in order to accom plish this. We are willing to purchase, even though currently receiving the Journal on a complimentary basis. . We received the following letter from Mr. Charles A. Bauer (235 W. 71st Street, New York 23, N.Y.), an old-timer who was formerly con nected with the old Executive Bureau and who left the Philippines some years before the war. At the time he resigned he was Chief Clerk in the Manila City Engineer’s Office. His letters deals chiefly with his pre-war deposits in a Manila bank, and runs as follows: “I wish to acknowledge receipt of six or seven copies of the American Chamber of Commerce Journal and to thank you for them. I was on the point of writing ere this, but between ‘one thing and another’ have had to postpone writing. “I wish to congratulate you also on the first-class appearance and get-up of the Journal, and to compliment you on the valuable series of articles that appear in the Journal. “Of course, I was especially interested in the two articles in the October issue about the Manila bankers and the seizure of Amer ican deposits, etc. “It may interest you to know that after practically a lifetime of government service in the Philippines (mostly with the Manila City Government), I had [my savingsl in a currency account at the Philippine Trust Company, on which I was getting no interest. I had a fairly good amount of Benguet and Balatok stock, and these shares were on safety deposit at the Philippine Trust Com pany. “In December, 1941, I tried to have most of my cash transferred by telegraph to this country, but found that regulations prohi bited the transfer of more than Pl,000 in any one month, — in spite of the bombing by the Japanese, which had already started. But Pl,000 was sent here, leaving the balance to the tender mercies of the Japanese. “When General MacArthur came out early in 1942, I read in the New York papers that he had brought out all the gold from the banks, and also the securities. Quite a while later, I learned from Mr. Ely, in Was hington, that my mining shares were among the securities brought out. About three years ago, these were turned over to me. I also read that all the silver from the banks had been buried in the Bay, and that the paper currency had been destroyed after the serial numbers has been recorded. This was some comfort to me during the war, as all income from the mines stopped from 1941 on, and I thought the cash would later on help me to live until dividends started again. “The footnote to your article, ‘Story of the Manila Bankers’, on page 430 of the October number of the Journal, confirms this information about the gold, silver, cur rency, etc. “Presumably all the gold, silver, paper currency, etc. was returned to the various banks after the war, just as my stock certifi cates were returned to me. Therefore, it seems to me, that the banks have no more claim on these deposits than they had before the Japanese ordered the banks to transfer their ‘enemy’ assets to the Bank of Taiwan, and it does look as if that ‘transfer’ was only a paper transaction. “It seems to me that the Manila depositors ought to demand their deposits, and fight the matter out along this line, if necessary. I would have been in Manila long ago, but have been tied down for lack of funds. “I do not like to bore you further with this ‘tale of woe’, and so will sign off, with my best wishes for your health and success and the success of the Journal." E. E. ELSER, INC. GENERAL AGENTS for ATLAS ASSURANCE CO., LTD.—THE EMPLOYERS’ LIABILITY ASSURANCE CORP. LTD. CONTINENTAL INSURANCE CO. OF NEW YORK-ORIENT INSURANCE CO. THE INSURANCE CO. OF NORTH AMERICA 404 Ayala Bldg., Manila Phone 2-77-58 Cable Address: “ELSINC March, 1950 AMERICAN CHAMBER OF. COMMERCE JOURNAL 129 “Dear Mr. Editor, jfT'Xo you ever accept suggestions for edito•Lz rials? I have one in connection with that proposed bill to require ‘ good conduct affida vits’ from aliens, at a price of P25 each, and ‘aimed at providing a check-up on alien inhabitants and additional revenue for the Government’; this on top of all the other registration papers aliens are already required to obtain at exorbitant fees. I read about this in this morning’s Manila Daily Bulletin (February 28). The expression ‘good con duct’ set me to thinking and with that in mind I looked through that whole issue of the Bulletin and noted the following head lines: “ ‘Senate votes to probe Buenavista, Tambobong deals’ (a big government land trans action). “ ‘Admit anomalies in U.S. aid to P.I.’ “ ‘San Ildefonso Mayor arrested for illegal firearms possession.’ “ ‘Threaten to raze illegal buildings’. “ ‘President to right wrong committed on Congress aspirant’ (man allegedly cheated out of winning an election through setting fire to the ballot boxes and burning down the provincial capital building). “ ‘Relief asked for Batangas victims’ (many killed and wounded and P5,000,000 destruction done because of improper storage The NEW ISPMIil fully automatic calculator A. Simple to Learn...in less than 15 minutes anyone in your office can be taught to multiply, divide, add and subtract. B. 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TR.'.S'E AND COMMERCE BLDG MAtJILA Tel. 2-69-71 of 500-pound bombs close to public and private buildings). “ ‘Health inspector slain at Palomar’ (man shot down in cold blood while playing a game of checkers). “ ‘Body of guerrilla mayor reported mis sing found in Quezon City’ (another murder). “ ‘Senate-House rift widening’ (at a time like this). “ ‘Jeepney accident’ (girl killed, driver arrested). “ . * 6 die, 8 hurt in Batangas ambush’ (more killings of innocent people on public highway by ‘dissidents’). “‘Indictees flee, trial postponed’ (two murder suspects escape). “Editorial on unspeakable conditions in National Psychopathic Hospital. “A column editor comments on audience misbehavior at a concert. “All that in one day’s issue of a Manila paper, and it was by no means an out-of-theordinary day as things go in the country these times. Certainly, the general behavior is none too good. As for the aliens in the country, under existing law they are already ‘on their good behavior’, for they can always be deported for cause. . .” “No editorial comment needed,” said the editor. A/Tr. Stevens’ “I was mistaken!” ad1 vertisement in the February Jour nal, offering an office air-conditioning unit for sale because he found out, after buying it, that he did not need it, brought results, according to Mr. Stevens, somewhat to the chagrin, oddly enough, of the editor who had not entirely approved of the copy for the ad, the work of Mr. Stevens, himself. The editor thought that it was a little too personal and might give the reader the idea that Mr. Stevens was hard up! Now Mr. Stevens is crowing because he sold not only the air conditioner he adver tised, but still another one he also happened to have, all on the strength of that one masterfully written ad vertisement. So it was the editor who was mistaken that time, and we said so. Then the editor said that there was such a thing as an ad being too successful. “Now that Mr. Stevens has sold both his cooling apparatuses, we lose the ad, don’t we? Now Mr. Stevens is so much the richer, but we are the ones who are the harder up. However, if Mr. Stevens fancies himself so as an adwriter, perhaps he will try his hand at it again.” Subscribe to the JOURNAL IT S A WONDER! the new TYPEWRITER see it! try it! MANILA DEALERS: AMERICAN OFFICE EQUIPMENT AMERICAN HARDWARE CAMERA EXCHANGE, INC. FEDERAL OFFICE EQUIPMENT GUARANTEED OFFICE EQUIPMENT H. E. HEACOCK & CO. J. P. JUAN COMPANY PHILIPPINE EDUCATION COMPANY Marsman & Co., Inc. Trading Division Sta. Lucia at Anda Tel. 3-20-41 Intramuros, Manila Cebu - Iloilo - Davao - Bacolod 130 AMERICAN CHAMBER OF COMMERCE JOURNAL________________ March, 1950 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 \ ia 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. 2-98-16 (Priv. Excli. All Lines) RADIOTYPE YOUR MESSAGES -' /t cffnd //(< For GLOBE MESSENGER Tels. 2-95-17 — 2-97-91 Globe Wireless Ltd. Main Office: Sixth Floor China Bank Bldg. Branch Office: Lobby, Filipinas Bldg. Plaza Moraga T<he editor was regretting the fact that he was unable to attend the double affair of the Neuss, Hesslein Co.-, Inc., —its 50th anni versary in the Philippines and the inauguration of its new offices at 209 Rosario Street, on the 6th of this month. Mr. L. W. Wirth, the General Manager, who has recently been doing such a good job in handling the Journal's Textile column, had personally invited him, and, said the editor, I was sure he would have some of my favorite bourbon whisky for me. The editor called the next day to present his apologies and learned that there has been around 150 guests and that there had been a lot to eat and drink, including, he added, his favorite Scotch. “Didn’t you say just a moment ago that your favorite whisky is bour bon?” we asked. “Sure!” he sa d. “Can’t a man have two favorite whiskies? Another fa vorite of mine is a blended whisky. Whiskies are all made from various grains, all good. The ancient Scots and Irish knew what they were about when they first started making it and when they named it usquebaugh,—‘water of life’. The only thing I object to in whisky is its present local price. It’s really a shameful reflection on civilization and on the way we manage things that such a liquor, certainly not made of any rare or costly ingre dients, should cost so much. It’s just because it gives delight and people want it, that wicked govern ments tax it so exorbitantly. It’s the same with tobacco, which is just a weed. Why should a good cigar cost 30 cents? And cigarettes even more in proportion to the amount of tobacco they contain? Because the people stand for this kind of taxing, even though it takes a lot of the joy out of their lives.” “But liquor and tobacco are luxu ries, old man,” said we. “They are luxuries, because they give delight, but they could be abundant and cheap,” maintained the editor. “In the good old days, when men were men and governments were kept in their place, people got their cigars by the thousand, and their whisky by the barrel or at least the gallon-jug. I firmly believe in human progress, but, dog-gone it, that’s not progress. We’re letting our governments get away with too much of the good things in our lives. What people ate and drank in the old days as a matter of course, and thought nothing of, are now all but unattainable ‘luxuries’. We had bet ter begin to do a little protesting.” C. F. SHARP & COMPANY. INC. 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