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 (Issue No. 12) December 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; J. A. Parrish, Vice-President; C. R. Leaber, Treasurer; J. H. Carpenter, Roy G. Davis, T. M. Knight, G. C. Miller, E.E. Sei ph, and L. G. Wagner. Marie M. Willimopt, Executive Vice-President; I. T. Sa Imo, Secretary Vol. XXVI December, 1950 No. 12 Editorials— Contents Korea and Atomic Weapons........................................................................................................................ Mr. Paul Wood’s Remarks at the Honolulu Chamber Luncheon................................................. The American Tax-Payers................................................. ...................................................................... The Gray Report and the Bell Report.................................................................................................... Responsibility and the American Regime in the Philippines........................................................... The New Tax Proposals............................................................................................................. Central American versus Philippine Abaca............................................................................................ Memorandum to the Philippine Congress on the Proposed 25% Tax on Foreign Exchange.......................................................................................................................................... The U. S. Foreign Economy Policy Report................................................................................ Recommendations with Reference to All Foreign Aid........................................................... The American System of Competitive Free Enterprise............................................................................ The Ouirino-Foster Joint Statement and Agreement............................................................ American Chamber of Commerce........... Gordon Gray................................................... Chamber of Commerce of the United States............................................................. Benjamin F. Fairless................................... Official Source.................................................... The Business View— Office of the President of the Philippines............................................................ Banking and Finance................................................................................. Credit..........................................................................................:................................... Manila Stock Exchange.................... Real Estate......................................................... ........................................................... Electric Power Production........................................................................................ Port of Manila.............................................................................................................. Ocean Shipping and Exports.................................................................................... Min^s............................................................................................................................... Lumber............................................................................................................................ Copra and Coconut Oil............................................................................... Desiccated Coconut..................................................................................................... Sugar................................................................................................................................ Manila Hemp................................................................................................ Tobacco............................................................................................................;.......... Imports........................................................................................................................... Food Products............................................................................................... Textiles........................................................................................................... Legislation, Executive Orders, Court Decisions................................... Philippine Safety Council... .. .................................................................... Historical Committee, American Association of the Philippines. ......................... Cost of Living Index, 1946-1950 (Table) Bureau of the Census and Statistics. The “Let Your Hair Down” Column............................................................................ Index for Volume XXVI, 1950........................................................................................ Official Source................................................... C. R. Hutchison.............................................. C. W. Muilenburg........................................ R. Ewing........................................................... A. Varias..................................................... • . . J. F. Cotton..................................................... R. L. Moore..................................................... F. M. Gispert.................................................. N. N. Lim........................................................... L. J. Reyes........................................................ H. D. Hellis.................................................... H. H. Curran.................................................. G. G. Gordon.................................................. F. GuETTINGER...................................................... L. A. PUJALTE........................................................ S. Schmelkes.................................................... C. G. Herdman................................................ L. W. Wirth..................................................... E. E. Selph.. . ............................................ F. S. Tenny....................................................... 50 CENTAVOS THE COPY 439 440 440 440 440 444 445 446 447 448 449 450 451 453 453 453 454 454 455 455 456 458 458 461 461 463 464 464 465 467 467 469 472 473 470 474 +.1 reefmgs l^l iMobilgasI STANDARD-VACUUM OIL COMPANY PHILIPPINES Editorials “ to promote the general welfare” One thing is certain, and that is that Soviet Russia would long ago have launched a war of universal conquest had it not feared the power of the Korea and the United States and a small number of Atomic Weapon its allies in the field of atomic warfare. The plotters in the Kremlin know, as we ourselves know, that the United States and its allies would have to use the terrible new weapons in the event of another general war. The Red leaders do not yet know, as we ourselves do not know, whether the United Nations would ultimately authorize the use of atomic weapons in the case of such a “police-action” as in Korea. A strong supposition is that the Kremlin is staking its present actions with reference to Korea on the belief that the United Nations will not dare to resort to atomic weapons, both because of fear of retaliation and because it will be desired to save the atomic bombs, the supply of which is limited, for what will be conceived of as being possible more desperate future eventualities. Yet if the police-action in Korea fails, then similar action would not again be even undertaken, and the world would lie bare to unmasked aggression. If the United Nations 'shows any sign of weakness of determination in enforcing its measures against localized aggression, then the democratic world is lost already, for the Communist conspirators would at once step up their aggressions in every part of the world. As, furthermore, it may be that the United Nations forces in Korea would not long be able to withstand, with ordinary weapons, the hordes now pouring across the borders from Manchuria, the conclusion must be that the United Nations should approve the unleashing of the ultimate force if necessary. That would be the one thing,—if there is anything at all, which might still halt the threatened march of the foes of civilization not only in Korea but everywhere else. If this recourse did not give the Kremlin conspirators pause, that would mean that they had, or have even now, overcome their fear of the atomic weapons of the democ ratic powers and that a world war, therefore, is inevitable regardless. In considering the dread possibilities, let us not weaken our wills by what Lord Vansittart, in a book written during the last war, “Lessons of My Life”, calls “the sin of Acci dentalism”. That sin is to view a war “as an accident or as the outcome of a series of incidents”. And the strength of Accidentalism draws reenforcement, he states, from an alliance with “the ancient dream of Appeasement”. “ If only Germany had been allowed to absorb Austria by a Customs Union in 1930! ... If only we had not addressed a legitimate and indis pensable questionaire to Germany I... If only we had been more polite to Ribbentrop and his family I ... If only there has been less suspicion on both sides!. . . If only Hitler had been capable of marriage he might not have been provoked by those brainstorms! ... If only, if only—the ■ Germans had not been German!” Vansittart warns also against the school opposite the Accidentalists,—those who oppose to the accidental, the inevitable, the fated, the destined. Nevertheless he believed that German militarism was “endemic and incurable”: "You can only destroy it—and no other result is worth dying for or living with—or it will destroy you. There has never been the slightest variation in the choice, because the German nation has always been animated by the Spirit of Assent to Evil. . . From the very foundation of the German Reich by Nationalism and Militarism there has therefore been no sincerity in any ostensible German advances to this country, nor any truth in the suggestion that any wielder of German power has been a ‘rejected lover’ rebuffed by accident or misunderstanding.” We may have to come to a similar conclusion with respect to Soviet Russia, and in that case let us not add to the terrors and miseries of war by imagining that if we had acted differently on such and such occasions, there would have been no war. Much may be achieved by reason and by diplomacy, but there are limits to what the ablest national leaders can do in the event of great upsurges of unreason and evil, especially as they must act under the handicap of the human unwillingness to accept bitter facts. If a third world war breaks out,—which God forbid, it will not have been caused by the United Nations’ action in Korea, not would it be caused by a final resort in the Korean action to atomic bombs. The origin would have to be traced back to the causes of the Russian Revolution and the development of Bolshevism into the most immoral statism in the history of the world. 439 Mr. Paul Wood’s Remarks at the Honolulu Chamber Luncheon We are sure that our fellow American Chamber of Com merce friends from Honolulu are finding their visit here most in teresting and, we hope, productive. Their visit finds us in the most difficult econ omic period of our post-war years. Several American firms have found it necessary to close up and liquidate. Others are contemplating such a move. The reason for this is to be found in the present administrative policies on controls. At this same time we, in the Philippines, are awaiting the assistance from you and other Americans tax-payers. We need that help. We also need a broader, more understanding, and more tolerant view toward established American business here. We believe and we hope that this will come about for the mutual benefit of both Filipinos and Americans. Do not misunderstand me. There is no major point of difference here between the two peoples. On the very contrary, there is a general attitude of mutual interest and help. I be lieve that current practices detrimental to old American firms and Filipinos alike will change. We are happy you were able to spend some of your visit with us and we congratulate you and your members on attaining 100 years of service to your common interests. That the assistance the Bell Mission has recommended for the Philippines must come from the American tax payers, was emphasized by Mr. Paul The American Wood, President of the American ChamTax-payers ber of Commerce of the Philippines, in his brief remarks made at the luncheon given in honor of the visiting delegation from the Honolulu Chamber of Commerce given at the Manila Hotel last month by the Philippine and American Chambers. It is well to remember that the Bell Report is no more than a report made to the President of the United States and that the President will submit the' recommendations, in so far as he endorses them, to the Congress of the United States for final approval. The grants and loans and other forms of assistance recommended will have to be either specifically appropriated for by Congress or be included as specific items among other appropriations. Another factor we must take into consideration is that Congress will not act favorably in the matter unless it is convinced that it will have the support of the American people, the tax-payers. We do not wish to imply that we believe that there is any serious doubt that, if the Philippines will do its part, the American people will favor this aid to the Philippines and that Congress will authorize it, but we should guard against smugly taking this as a foregone conclusion. We may take it for certain, however, that the American Congress will become more and more sensitive to the tax payers’ complaints as government expenditures at home and abroad pile up, and in this connection the results of the November elections can not be disregarded. The Amer ican people can not go on indefinitely carrying other people’s burdens; that everyone must understand. In view of the extensive gains registered in the November elections by the Republican Party throughout the United States,. Con gress is bound to be more economy-minded than it has been for a long time,—too long a time. This is not an argument for isolationism. America must continue to assist in the development of democratic strength instead of weakness in every part of the world, as a matter of self-preservation, but to burden itself to exhaustion, even in good works, would be self-destruction. Mr. Wood said a number of true things, very briefly, but emphatically. He pointed out that several American firms have been forced to liquidate in the Philippines be cause of the unwise government controls here, and that other firms are contemplating the same move. Yet many such firms may be found among the very entities which will share the burden, as tax-payers, of any aid given the Philippines. Let us not think that this does not matter to the American Congress. The American businessmen who have suffered severe loss in the Philippines will be heard and their associates and affiliates in the United States will be heard on the subject. If America is not to exhaust itself, American enter prise and activity must continue to prosper, at home and abroad. There is no other way of meeting the drain. And in the nature of the case, such prosperity does not come at the expense of others, but embraces them also. Con tinued American strength will mean growing strength everywhere. The converse would also be true, and would be fatal. The Gray Report and the Bell Report While we in the Philippines are studying the Bell Report on Philippine economy and finance, together with the recommendations made therein, we would do well to read in connection with it the United States Foreign Economy Policy Report just sub mitted to President Truman by a committee headed by former Secretary of the Army Gordon Gray. As an over-all report on foreign economic policy and as fully endorsed by the President, it is to be considered as superimposed on such reports as the Bell Report which deals with a regional detail of that policy. It is especially significant that while certain of Mr. Gray’s recommendations “call for a follow-through on present lines of action, notably in the development of an integrated program for the defense of the North Atlantic treaty area and in the promotion of sound commercial and financial relationships among free nations”, Mr. Gray • has in other respects recommended changes in existing policy “particularly with respect to underdeveloped areas and economic development programs”. This is not to say that the recommendations of the Bell Report, which was released for publication around a month before the Gray report, are thereby altered, but it may prove to be a fact that there will be a difference in emphasis. For example, the first recommendation of the Gray Report with respect to the underdeveloped areas is: “Private investment should be considered as the most desirable means of providing capital and its scope should be widened as far as . possible. The negotiation of investment treaties to encourage private investment should be expedited, and the Bill to authorize government guaranties of private investment against the risk of inconvertibility and expropriation should be enacted as a worthwhile experiment.” Another recommendation is also in point: “Administration of programs to stimulate development in under developed areas should be much more closely coordinated than is now the case.” On the more general subject of world trade, the Gray report— “urges continued efforts to establish an adequate system of interna tional payments and to eliminate trade restrictions." President Truman in his statement issued in connection with the release of the Gray Report said that it should be “of great value to the Congress and the executive branch in developing specific measures”. The recommendations, he said, are designed to “assure ourselves that our policies are those which will best serve to reinforce our economic strength and that of the other free nations of the world”. Manila Bulletin last month, which rather riled us. Speaking of what “local observers” have to say about the Bell Report, he said: There was a paragraph or two in Bernardo Ronquillo’s always good column, “Business News and Views”, in the Responsibility and the American Regime in the Philippines “Some of the more articulate local observers who have read the Bell Report point out that the Mission has emphasized in the final 440 December, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 441 With this Burroughs Statistical Accounting Machine, twenty ■distribution totals can be obtained as a by-product of posting ledger, statement and journal or other combinations of related records. For distribution purposes, up to -12 totals possible! Find out NOW how you can get the figure facts you need, when you need them and at the same time learn how you can save time, cut costs and increase job satisfaction— call your Burroughs representative today! WH EREV ER THERE'S BUSINESS THERE’S Burroughs BURROUGHS DEALERS Phil. Chamber of Commerce Bldtj., Manila Tel. 3-20-96 DAVAO CITY —(also for MINDANAO-SULU), Burroughs Sales Office; BAGUIO — Baguio General Trading; LIPA CITY — Ix>nInk’s; CEBU — Valcriano Alonzo; BACOLOD — Warner, Barnes & Co., Ltd.; ILOILO — Warner Barnes & Co., Ltd.; DAGUPAN CITY, Villatnil Bldg., Tel. 95. analysis the Philippines' basic problems as those which have persisted not only since the War but during the 40 years or more of American sovereignty. These problems are inefficient production and low income, lack of diversification, and an unbalanced overseas trade . . . The Bell economists’ criticism of the unfavorable features of the Philippine economy is not alone directed at the post-war economic planners. Ap parently the American as well as Filipino planners of the pre-war econ omy have to share the responsibility for a good many of the unpleasant aspects of the present economy. In the first place, it was largely on the foundations of the shattered pre-war economy that the post-war struc ture was rebuilt: a few basic export industries which could earn dollars quickly as before the war, with not much attention paid to diversifica tion. Secondly, even if a start was made toward turning away from the pre-war pattern of the economy, the job could hardly have been ac complished in 5 years or shown concrete results in this time. “Take the agrarian problem, for instance, observers point out. It is a century-old problem. Practically nothing was done in pre-war to solve it, although 40 years would have been long enough to achieve a lot in this direction. But certainly not in 5 years, even under the most favorable circumstances and under the most efficient and honest ad ministration, it is pointed out. Likewise, it is further argued, the task of diversifying the economy through the establishment of several other new industries could not have been accomplished in 5 years, during a period when all available funds were needed to restore only the old stand-bys in the economy. And not all of them are fully restored yet because of lack of ■adequate capital funds. . This view that past American administrations in the Philippines must share the burden of responsibility for the still largely undeveloped economy of the Philippines, springs to mind naturally enough in reading the Bell Report. As there are so many newcomers among the Americans and foreigners here as well as a whole new generation of Filipinos who know little about the pre-war Philippines, it is necessary, when this question of responsibility is brought up, to set forth several facts, sad and otherwise, which should not be forgotten. One fact is that the American Government in the Philippines never governed arbitrarily, but, at every step, sought the voluntary cooperation of the Filipinos. The Americans themselves made dictatorship and coercion impossible by establishing not merely a civil government, but a government on the American democratic pattern, with a separation of powers between the executive, the legislative, and the judicial, and with only the executive department headed by an American,—the Governor-General. On September 1, 1900, legislative power was transferred from the Military Governor to the Philippine Commission. On July 4, 1901, William H. Taft was inaugurated as the first Civil Governor. On September 1, 1901, three Filipinos were appointed members of the Philippine Commission. In February, 1902, the first elections of provincial governors were held. On November 15, 1906, the majority of the members of the provinciaF boards were made elective. On October 16, 1907, the Philippine Assembly was inaugurated as the lower house of the Legislature. On October 6, 1913, Francis Burton Harrison was inaugurated as Governor-General. On October 30, 1913, the Filipinos were provided a majqrity on the Philippine Commission. On August 29, 1916, the Jones Act was enacted. On October 16,1916, the elective Philippine Senate was inaugurated as the upper house of the Legislature, replacing the appointive Philip pine Commission. On November 15, 1935, the Commonwealth of the Philippines was inaugurated, with a Filipino President. The United States High Com missioner had no administrative duties and exercised no authority within the Commonwealth Government. A second fact is that among the scores of annual mes sages addressed by the successive American GovernorGenerals to the Philippine Assembly and later to the Philip pine Legislature, it would be difficult to find one which did not carry urgent recommendations for the enactment of legislation to further economic development through the attraction of outside capital. Numerous special mes sages were of the same tenor. As for agrarian evils, as early as 1903 Governor Taft purchased for the Government for $7,000,000 over 410,000 acres of the 420,000 acres of land held by the Do minican, Recollect, and Augustinian orders, upon which estates more than 60,000 tenants lived. Of course, the church-owned lands comprised only a part of the large landed estates in the country the titles of which were based on old Spanish grants which the American, authorities could not but recognize. The foregoing are happy facts, but the third fact is a sad one. The Philippine legislative bodies largely ignored the recommendations toward encouraging outside capital investment and activity opposed all other measures of that sort. The reason is not far to seek and the motivation was for the most part patriotic. The Filipino leaders feared that large American and foreign investments here would build up interests which would strongly oppose the po litical independence which had been promised the nation. This fear, too, led to various semi-socialistic govern ment enterprises, such as the National Development Com pany and its subsidiaries, to which the Filipino leaders took recourse in lieu of too greatly encouraging individual enterprise, especially American and foreign. The fourth fact, another sad one, was the policy of what was called the “Filipinization” of the government service, which was carried out with all possible, and even ruthless, dispatch from the time of the beginning of the Harrison Administration in 1913. It extended not only to American bureau heads but to American technical men in the various bureaus, even to scientists and professors and teachers in the Bureau of Science,* the University of the Philippines, and the Bureau of Education. This Filipinization also had a nationalistic and pa triotic aspect, understandable, even laudable, but it was carried out much too sweepingly and much too soon and virtually ham-strung the American-controlled executive department of the Government. Well, that, simply, is all there is to it, but it fully explains why not more was accomplished in the matter of economic development during the American regime in the Philippines. There was a fine cooperation in many respects between the Americans and the Filipinos. There was great accomplishment and achievement because of it, economically as well as politically, as anyone who knows anything about the Philippines in 1898 can not help but realize, but much more might have been done in the econ omic development of the country had the Filipinos shown more faith in America—and in themselves. There were many Americans in the Philippines, busi nessmen among them, who believed that with independence the Filipinos would discount the supposed dangers of foreign capital investment and show it a greater welcome, but it takes time to modify a historic attitude, and other elements have meanwhile entered in, such as the bitter hostility engendered by the Japanese during the occupa tion which extends to some degree to all other aliens. But this, too, time will cure, we may well believe. It may be that the Bell Report will serve as the longneeded catalyst to bring about a reaction toward a renewed and a fuller cooperation between Americans and Filipinos than ever before. •One of the men in the Bureau of Science was the world-famous chemist, Dr. Robert R. Williams, who discovered the value of rice-bran syrup (tiki-tiki') as a cure for beri-beri and who, after years of continued experimentation after he left the Philippines, was the first to isolate and synthesize the vitamin con cerned, Bi, thiamin. That discovery would have been made in the Philippines had Dr. Williams remained here. Incidentally, he would not be getting a royalty on all the thiamin now being manufactured, as he does today. Dr. Williams never lost interest in the Philippines. He returned after the liberation to take the leading part in the “fortified" rice project carried out in Bataan. 442 December, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 443 Iverv model Hew-Mv Hxli/ltettd (•MwywiMfwy >\ Speeding, the nation to recovery '' z Dependable, Economical INTERNATIONAL TRUCKS Insure essential goods reaching essential industries on schedule Salvador M. Corpus of Zamboanga City, International Harvester Dealer for Zamboanga, Basilan and Sulu, says: “In my territory, experts say—whether you haul copra, coal, rice, corn or lumber Inter nationals are tops, because Internationals are tried and proven on the roughest roads to haul the biggest payloads for the lowest cost. Yes, International Motor Trucks are the finest be cause International Harvester has been building rugged quality trucks for generations.’’ Throughout the Philippines, tried-and-proven International Motor Trucks speed national reconstruction and development with low-cost, trouble-free transportation of essential goods. Every model Heavy-Duty Engineered to save you money! INTERNATIONAL INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES TRUCKS BRANCHES AND DEALERS THROUGHOUT T MAIN OFFICE: MANILA HE PHILIPPINES We had high praise for the Bell Report in the No vember issue of this Journal and we would not say any thing which might detract from its The New force and effect or . which might imply Tax Proposals that we believe that the general program outlined in the Report, the acceptance of which is conditional to the extension of further American aid, may be disregarded here. All elements are agreed that there are measures which obviously must and should be undertaken or further pur sued, measures the need for which was understood by many even before the Report was published and with respect to which the Philippine Government had in many cases already made a beginning. The value of the Bell Report lies, in large part, in the fact that it wifi stimulate a bolder adoption and a more earnest pursuit of such measures. This is not to say that everyone is, or should be, in full agreement with the points of emphasis given the various findings in the Report or the exact order of priority given the measures recommended. It certainly would not be intelligent to hold that every point of detail is technically unassailable. Nor would it be wise to expect or demand that every suggestion must be carried out immediately and to the last letter. Among all the recommendations made, the one which has aroused not only general protest but also anxiety, because of its recognizedly fundamental nature, confronting the Philippine Government, therefore, with a most serious dilemma, is the recommendation that the tax revenues be immediately increased by as much as 70% of the total It goes without saying that the Philippines would not be justified in asking for or accepting assistance from the already heavily-burdened American people, if the Filipinos themselves balk at bearing the burden of as heavy a taxa tion as they can stand. But a 70% increase, when, already, since the Liberation, many new taxes and much heavier rates of taxation have been successively imposed, is a dis maying thing for the people to face and the prospect is especially appalling to the business community which has always borne the heaviest direct tax burden and which is already on the verge of bankruptcy in many cases be cause of existing- conditions. What apparently did not sufficiently impress the Bell Mission is the fact that not only is the Philippine Government in serious financial straits, but that business, too, is failing, and that the people are in the main desperately poor. These are the results of many adverse factors which have been operating steadily for the worse during the past few years,—the absence of peace and order, which seriously interferes especially with agricultural production; a lack of sufficient capital to wholly rehabilitate the war-damaged industries; the reluctance of local capitalists to invest in anything except land and buildings; the extensive unemployment; and the unbelievably high prices. What appears to us to have not been sufficiently emphasized in the Bell Report is the bearing on the financial situation of the recent extravagance and wasteful expen ditures of the Government and the inefficient and inequit able collection of the existing taxes. We should remember that the government revenues are already very high compared to what they were in past years. Prior to the war, the Philippine Government was always self-supporting and government finances always showed, not a deficit, but a surplus, though the receipts during the first ten years after 1898, for example, averaged not over P25,000,000 a year. After the establishment of free trade with the United States, government receipts increased rapidly and by 1920 the total revenues amounted to around P80,000,000 a year. By 1925 the amount was over P100,000,000. During the Commonwealth period, the Government greatly expanded its functions and the proposed expenditures for the fiscal year 1942, which was interrupted by the war, amounted to something over Pl 13,000,000. With independence and because of post-war conditions, the expenses of the Government naturally increased; still it is a far cry from the 1942 figure to the estimated expenditures for 1950 of over P500,000,000, even if we take into consideration the decrease in the pur chasing power of the peso. And although the revenues have, in spite of the times, been even greater than in the last pre-war year (P127,400,000 in 1946, P263,800,000 in 1947, P361,000,000 in 1948, P384,800,000 in 1949, and P331,300,000 in 1950), the expenditures have greatly exceeded even these larger amounts, and the estimated accumulated post-war deficit now comes to over P460,000,000. On the basis of these facts and figures, it should be obvious that the remedy is not to be sought only through an effort to raise additional funds by new taxes and in creased tax rates, but rather in the enforcement of stringent measures of retrenchment and economy and the full collec tion of the taxes due the Government under existing laws. Indeed, such a heavy increase in taxation especially at this time, as is proposed, representing an additional load which we believe neither the people at large nor bus iness could bear, would almost certainly result in the failure of the whole development program envisaged by the Bell Mission. What is most needed is, first, honesty, economy, and efficiency in the administration of the present tax laws, and, second, increased production. It is evident that it would not be possible to rebuild prosperity on measures which still further increase the high cost of even the present low standard of living and on further discouragement of productive free enterprise. If despite all the foregoing considerations it is decided that the tax revenues must be increased, then let us remem ber that the people are already heavily taxed by indirect taxes as well as, in effect, by the abnormally high prices which have resulted from the import control policies of the Government, and that business, too, as we have stated, has always carried the heaviest direct tax burdens. If taxes must be raised, let the Government increase the land and property taxes as land and property so far has •always been taxed lightly or not at all. The Bell Report stresses in its very first recommenda tion that additional revenues should be “raised imme diately in as equitable a manner as possible”, and President Quirino echoed this statement in his message to the Philippine Congress which opened in special session on December 4. He also emphasized that “tax legislation of an equitable character" was necessary. Yet at least one of the tax measures proposed, that which would impose a 25% tax on exchange remittances for all purposes, would be most inequitable in its effects, would again be borne chiefly by business and by the people at large in the inevitable effect of another steep rise in prices. It would fall especially heavily on the relatively small element of the population which is obliged to send remittances abroad for personal reasons. All this is clearly brought out in a statement prepared by the American Chamber of Commerce for submission to the Philippine Congress and published elsewhere in this issue of the Journal. The advantage of this tax would be that it would bring immediate additional revenues, though these revenues would not be so high as many suppose if the present barring of imports continues and our foreign trade goes from bad to worse. If this legislation is nevertheless decided upon, then in justice and equity the amount of this tax paid by corporations and individuals for remittances of all kinds other than in payment for imports should be credited against other taxes paid by them. 444 Various alternative taxes have been proposed by congressional, business, and social leaders, as well as various business organizations, and these should be given full consideration by Congress and the Administration. It would be well if especially the able Dalupan report on taxation were given intensive study. Time is lacking for a further discussion in this issue of the Journal of the various new taxes proposed, but the Chamber’s tax committee and the Board of Directors is presently doing everything possible to aid the Government in arriving at a clear understanding of the various problems that are arising in connection with such measures. We believe, above all, that hasty action should be avoided by Congress. This would have been advisable in any case, but with the present unparalleled danger of an outbreak of another world war, which was not anticipated in the Bell Report, the country should not saddle itself with laws which might, in the case of war, be wholly inap plicable. Some months ago there was considerable discussion in the Philippines of the United States Government project to increase the production of abaca Central American in Central America. Some protest versus Philippine was voiced on behalf of the PhilipAbaca pine abaca industry which up to recent years has enjoyed what was believed to be a natural monopoly based on certain peculiar conditions of soil and climate. The successive editors of the monthly Manila Hemp column in this Journal have, over the past few years, repeatedly warned the industry and the Government of the situation which has been allowed to develop here, warnings which recently were given new point in the Bell Report, which states: “Abaca production was retarded by excessive stripping and the spread of mosaic disease, and in 1949 was less than one-half of pre war. . . “The abaca industry in the Province of Davao, the major abaca producing area in the Philippines, is seriously threatened by a mosaic disease. Immediate action must be taken to prevent the further plant ing of diseased seed, the older plantings showing disease cleaned up, and a major source of disease-free seed provided. This problem consti tutes an emergency and prompt action is necessary if a serious setback to this import export crop is to be avoided.” It must be admitted that this situation alone, aside from any military considerations, affords some justifica tion for the interest the American Government is showing in developing, if possible, another source of abaca supply. On the basis of information the Journal has just received from the United States, we believe that the Amer ican Government action need not create any excessive anxiety here, though it should serve as a strong stimulus to a prompt carrying out of the Bell Report recommenda tion. The information referred to is contained in a letter from an authoritative source, which runs in part a,s follows: "The essential facts are as understood by you, namely a $35,0.00,000 program aimed at the development of 50,000 acres. The original war time program developed 25,000 acres, of which a substantial portion has already gone out of production. “It is our understanding that an additional 3,000 to 4,000 acres of these original plantings will be withdrawn from abaca production during the next three years. “The successful conclusion of this program would perhaps bring a grand total of some 65,000 acres into production, with a possible output of perhaps 400,000 bales of the current Philippine size.” Compare this with the latest reported (1948) acreage in the Philippines of around 380,000 and an acreage of 725,000 in 1941. As to the output,—on the basis of the 400,000 bales expected to be produced yearly from the 65,000 acres, the Central American hemp fields will yield 12 piculs per acre, equivalent to 30 piculs per hectare, as compared to 7.6 piculs per hectare obtained in the Philippines in 1948. In 1939, the average yield in the Bicol provinces was 4.17 piculs per hectare and in Davao Province, 13.22 piculs per hectare. The higher yield of the Central American fields is to be partly accounted for by the fact that by the use of decor tication machines about twice as much fiber is obtained than by hand- or machine-stripping. Furthermore, many hemp fields in the Philippines are old and on the decline. In addition, there has been great war-damage. The letter continues: “A U.S. Department of Agriculture team is now in Central America attempting to select the proper land for this expansion project. An area of 500 acres has already been planted in Mexico by private enter prise, and if this is successful it is planned to expand this acreage to 2,500. The objective of the entire program is to produce nothing but decorticated fiber.” In the Philippines abaca is, for the most part, stripped, either by machine or hand. The difference will be explained further on. We will first continued with the letter, which next emphasizes the fact that the Central American project is a defense measure and not an economic program. “It appears that the objective of this program is not clearly under stood in certain quarters. It is purely a defensive measure and not an economic program. The idea is to provide the United States with a near-by source of supply in the event of war. In effect it is specifically aimed at assuring the United States of a supply of Manila hemp should the Philippines be cut ofT, or should serious transportation problems arise as a result of war. It is obvious that in order to protect the United States against such possibilities, that the development should not be in the Philippines. It would be foolish to attempt to protect the United States against a possible inaccessibility of the Philippines by developing an emergency source of supply in the Philippines.” As for the possible economic effect on the Philippine industry, the letter declares that— “. . . it does not seem logical to suppose that the very considerable increase in abaca production which will result from this program, will not have a considerable effect on the price level. This does not, how ever, mean that the Philippine economy will be injured thereby. It does perhaps mean that when the new production is in full swing, sub stantially lower prices will prevail. Our own opinion is that the Philip pines will be able to withstand this effect and that a healthy abaca industry in the Philippines will still be possible. There is a basic under supply of hard fibers, and at lower and more realistic prices, the world consumption of hard fibers could be expanded considerably. In other words, we should not assume that because a lower price level may result, this will bring ruin to other fiber producing countries.” As to the uses to which the Central American fiber will be put, the letter states: “A great deal of the production will undoubtedly go into the United States stockpile. The primary use to which this production will be put is, of course, cordage; but if prices were to decline to a level competitive with sisal, then very considerable quantities would undoubtedly be used in twines of various descriptions.” Returning to the manner of stripping, the principle of the decorticating machine, originally developed in Mexico for the decortication of sisal or henequen, is essentially the same as that of the Philippine hagutan or spindle machine, except that in the case of the decorticator the hemp stalk is fed to a moving knife whereas in the agutan, as in hand stripping, the knife remains stationary. Before the war there were two plantations in the Philippines which used machines of the decorticator type,— the Furukawa Plantation and the Odell Plantation. At present there is only one decorticator in use, but it is re ported that it is planned to install one for the 1,500-hectare hemp plantation of the Davao Penal Colony. One draw back to the further use of the decorticating machine in the Philippines is its rather high cost. As to the comparative tensile strength of the Philip pine and the Central American fiber, a local authority states: “Numerous tests of both Central American and Philippine decorti cated hemp have shown that the tensile strength of the former is frac tionally lower than that of the latter (as produced on the Odell Planta tion). “United States rope manufacturers claim that there is more sheen to the Central American fiber, but this in itself is of little significance 445 and may be attributed to the fact that in Central America squeeze rollers are used for the removal of the high water content of the fiber, whereas in the Philippines centrifugals are used which closely resemble those used in sugar centrals." The Philippine Government has now appropriated P500.000 to combat the mosaic and other diseases of hemp, although no part of this appropriation has as yet been made available. One hopeful sign for the Philippine industry is the fact that the production of hemp this year, up to the end of October, totals 630,594 bales, as against only 428,800 bales during the same period last year. It is estimated that the production for the whole of 1950 will come close to 775,000 bales, or some 50% more than the total pres sings last year. Experts estimate that the production in 1951 may come to 900,000 bales. There is no doubt that progress is being made, and it is said to be possible that by 1952 or 1953 at the latest, the average pre-war production of 1,200,000 bales will be reached. Memorandum to the Philippine Congress on the Proposed 25% Tax on Exchange By the American Chamber of Commerce of the Phijippines THE American Chamber of Commerce of the Philip pines realizes that the Philippine Government must promptly increase its revenues, and that equitable taxation and improved efficiency of collection are the only means to which it can resort. On behalf of American bus iness firms and individuals, the Chamber respectfully desires, however, to convey to the appropriate Committee of Congress that grave anxiety is felt over certain tax proposals which have been put forward in connection with plans to implement recommendations contained in the Bell Report. Of particular concern to the American community is the proposal that a tax, of 25% be levied on exchange remittances for all purposes, but that under certain conditions and regulations the tax paid upon the importation of rice, wheat flour, corn, canned fish, canned milk, fertilizer, antibiotics, and anesthetics, may be re funded. The features of this proposed tax which would be particularly oppressive to American business and nationals are listed hereunder: 1. 25% of the remittable proceeds of liquidations of American business firms in the Philippines would be payable as a tax before the balance could be repatriated to the owners. 2. American citizens retiring from long service in the Philip pines or who will have been put out of business or employment through the implementation of import control would have to surrender 25% of the remittable balance of their savings and salvaged assets before the remainder on which they could depend for future support can be transferred to their home country. 3. Earnings from investments by American and all other foreign individuals in Philippine industry would be subject to this 25% tax, in addition to the regular withholding tax, before such earnings could "be transferred to the account of the investors in their home country. 4. Profits from business conducted by American-owned companies in the Philippines would be subject to this additional 25% tax before being converted to dollars on behalf of the investors. This 25% exchange tax would be on top of the regular corporation tax, payable by both American and local corporations. 5. This 25% tax would be collected on remittances mqde by both American and Filipino nationals for the support of their depend ents in the United States; for the support of children in United States schools; for life insurance premiums payable in dollars, and on all other dollar payments of a personal nature. 6. This 25% tax would also be collected out of the remittable savings from salaries of Americans employed in the Philippines whether their salaries are paid in dollars in the United States or in pesos in the Philippines. No opportunity would exist to recapture the amounts paid as taxes under the cases mentioned above. The amount of revenue to be derived from the tax on remittances of a personal nature would be of no consider able consequence, but the tax would result in great hardship to the individual, and obviously most of it would fall on American citizens. The above enumerated circumstances under which a 25% exchange tax would be payable by foreignowned business do not obtain in the case of firms which do not remit their profits. It would be a serious handicap if an American business operation were obliged to pay 25% tax on its remittable net profits in addition to the regular corporation tax, and for an American national to contribute to the Government 25% of his savings and other remittable assets in the form of taxes, when locally owned firms and local nationals are not subject to this tax obligation. The inequity of this proposed tax would make further profitable employment of American capital in the Philip pines practically impossible. It would completely dis courage American technicians from taking employment in the country, would speed up the liquidation of existing American firms, and expedite the departure of American capital and nationals from the Islands. Surely the consequence to the economy of the country of such contraction in business, and discouragement to further investment, which comprise the principal sources of revenue to the Government, need not be emphasized. If, therefore, it is finally determined that an exchange tax is unavoidable, then the American community strongly urges that such tax be applied only to that exchange which is purchased specifically for pay ment of merchandise imported for resale. Obviously the addition of a 25% tax to the cost of machinery and equipment brought into the country by and for local industry would contribute a setback to the good start that has been made toward building up pro duction in the country. If such a tax is to be imposed on exchange purchased for payment of merchandise imported for resale, then it should not apply to exchange required in payment of mer chandise for which import licenses have already been issued. In the event that for technical reasons the exchange tax on remittance of business profits and on remittances by individuals to cover personal obligations can not be avoided, then it is strongly recommended that the amount of exchange tax paid by corporations and individuals for the purposes mentioned above be allowed as a credit respectively against any corporate and personal income tax and residence tax which may be due and payable to the Government. Should the above views be adopted it is believed that the relatively small revenue expected from these sources would be more than compensated in other collections as a result of the more favorable economic climate engendered. It is respectfully requested that the views expressed herein be given your serious and sympathetic considera tion. 446 The U. S. Foreign Economic Policy Report* Prepared by a Special Committee Gordon Gray, Chairman FOLLOWING is the full text of a statement by President Truman in connection with the release of the report by Gordon Gray on United States foreign economic policy: “'The foreign economic policy of the United States is of key im-■- portance in influencing the course of world events. It is one of the central instruments with which we can meet the present world crisis and through which we can promote the security of the United States as part of a free world. Since the ending of World War Two, we have come increasingly to realize that our foreign economic policy must be world-wide in concept, that its many parts must follow a single broad system of direction and purpose, and that it must be continuously adapted to changing circumstances both at home and abroad. “For these reasons, last March I asked Mr. Gordon Gray, upon his resignation as Secretary of the Army, to study the whole complex of our foreign economic relations and to develop appropriate recom mendations designed to' assure ourselves that our own policies are those which will serve best to reinforce our economic strength and that of the other free nations of the world.’ Mr. Gray’s work was in full swing when outright Communist aggression in Korea demonstrated to the free world the urgency of a more rapid increase in its military power. The expanding rearmament programs of the United States and other free nations, while not basically altering our long term objectives, created major changes in the immediate outlook for the world economy. Mr. Gray and his staff, therefore, have re-cast their work to take ac count of the changed outlook. “The report now submitted by Mr. Gray represents a comprehen sive analysis of the whole range of foreign economic problems facing the United States. Behind the report lie many months of intensive labor by Mr. Gray himself, his immediate staff assistants, and a large number of consultants in all walks of private life £nd in the many govern mental agencies concerned with these problems. The nation is indebted to Mr. Gray and his associates for their fine response to a most challeng ing and difficult assignment. The report deserves the attention and study of all citizens. "The guiding concept of Mr. Gray’s report is the unity of foreign policy in its economic, political, military, and informational aspects. Our national security can be assured only through effective action on all these fronts. I fully endorse Mr. Gray’s statement on the basic objectives of our foreign economic policy. In his words: “ ‘The objective of our foreign economic policy has been and is to encourage among the nations of the free world those economic conditions and relationships essential for the development of stable democratic societies willing and able to defend themselves and raise the living standards of their peoples. These objectives are to the benefit of all peoples; their national interests are bound up with our na tional interests; our security and welfbeing are clearly connected with their security and well-being. Neither we nor they can live alone or defend ourselves alone. This fundamental unity of interest underlies our efforts both to achieve long-term pro gress and also to meet the immediate necessities presented by Soviet aggressive designs.’ “Mr. Gray’s report should be of great value to the Congress and the executive branch in developing specific measures to further these objectives. Certain of Mr. Gray’s recommendations call for a followthrough on present lines of action, notably in the development of an integrated program for the defense of the North Atlantic treaty area, and in the promotion of sound commercial and financial relationships among free nations. "In other respects, Mr. Gray has recommended changes in existing policy to meet emerging problems of our foreign econ omic relationships. This is particularly the case with respect to underdeveloped areas and economic development programs. “I recently announced my intention to appoint Mr. Nelson Rocke feller as Chairman of the Advisory Board created under the new act for international development to advise and consult ‘ with respect to general or basic policy matters arising in connection with operation of the program.’ I am asking Mr. Rockefeller to have this Board, as its first task, consider Mr. Gray’s proposals concerning our policy toward the underdeveloped areas in the content of the full report, in order that this Board will be able to give us its views early in the coming year on the types and size of programs which it considers desirable for the United States to undertake in this field. “Meanwhile, the various executive agencies concerned will draw fully on Mr. Gray’s report, and on the background studies underlying it, in developing appropriate administrative action and legislative recommendations in the whole area of foreign economic policy which is so crucial to our national security.” Summary of the Gordon Gray Report /continued aid to Western Europe for another three or four years, apart from military equipment, and consideration of further appropriations for Japanese aid are among the recommendations contained in a report on United States foreign economic policy prepared by a special committee headed by Gordon Gray, President of the University of North Carolina and former United States Secretary of the Army. The report was made public today [Monday, Novem ber 12] by President Truman with an accompanying state ment which gave it high praise as a “comprehensive analysis of the whole range of foreign economic problems facing the United States.” The Gray Committee, frequently referred to in the press as the “dollar gap” committee, was appointed by the President in March to study the whole complex of America’s foreign economic relations and to make recom mendations for strengthening United States economic strength and that of the other free nations of the world. One of its primary tasks was to determine ways and means of closing the dollar gap in international trade. However, the outbreak of Communist aggression in Korea and the resulting expansion of rearmament programs by the United States and other free nations compelled the Committee to take account of the changed outlook and recast its im mediate objectives. In discussing this phase of its studies, the committee pointed out that— “The diversion of American productive effort to military defense will reduce the supply of goods for civilian consumption in this country. It will also reduce the quantity of civilian goods which we can ship abroad. This means that our demand for civilian imports from other countries will increase. . . “In the future, it is desirable and should be possible to carry out our objectives and at the same time approach a balance in our exports, imports, and long-term investment; but it is the effective carrying out of our objectives, and not the balance itself, that is important.” Building on the fundamental principle that the over riding objective of United States foreign policy is “to .establish a just and lasting peace among nations,” the report describes the basic objectives of American foreign economic policy as directed at encouraging among nations of the free world “those economic conditions and relation ships essential to the development of stable democratic societies willing and able to defend themselves and raise the living standards of their peoples.” It continues: “These objectives are to the benefit of all peoples; their national interests are bound up with our national interests; our security and well-being are clearly connected with their security and well being. Neither we nor they can live alone or defend ourselves alone. This fundamental unity of interest underlies our efforts both to achieve long-term progress and also to meet the immediate necessities presented by Soviet aggressive designs.” In his statement regarding the report, President Tru man quoted this outline of United States foreign economic policy and said “I fully endorse” it. As major goals in the long-range pursuit of United States objectives, the report stresses the need for promoting a rapid build-up in the defense capabilities of Western Europe; development of additional sources of supply for needed materials; strengthening of the free world against Communist subversion; and fostering world trade rela tionships which will stimulate progress on a self-supporting basis. The committee makes a number of recommendations designed to assist in the task of achieving these goals, some of them calling for legislative action, others involving administrative action or reaffirming present policies. ♦United States Information Service, November 13, 1950. 447 With regard to aid to Western Europe and Japan, it recommends that: 1. To facilitate the required expansion of Western European defenses, the United States should be prepared to continue supplying aid, apart from military equipment, for another three or four years beyond the present time. 2. Aid to Western Europe should be planned on the basis of an over-all assessment of requirements rather than on a specific project basis. 3. The United States should continue to support the development of an effective intra-European payments mechanism. At least for the time being, it should continue to allot to the European Payments Union a portion of the dollar aid it extends to Europe. 4. In the joint planning of security programs, adequate considera tion should be given to the importance of a high volume of European exports. 5. The needed rate of increase in British military expenditures should be achieved by means that avoid worsening the external position of the United Kingdom. 6. Further appropriations for Japanese aid should be carefully considered. Should Japan for any reason prove unable to increase production for export, it might need external aid. With regard to underdeveloped areas, it is recom mended that: 1. Private investment should be considered as the most desirable means of providing capital and its scope should be widened as far as possible. The negotiation of investment treaties to encourage private investment should be expedited, and the Bill to authorize government guaranties of private in vestment against risks of inconvertibility and expropriation should be enacted as /> worthwile experiment. 2. The lending authority of the Export-Import Bank should be increased from the present $3,500,000,000 to a total of $5,000,000,000, in order to make advance planning effective. A general policy of per mitting Uniced States loans to be spent outside as well as within the United States should be adopted, and in selected cases loans should be permitted to finance some of the local coats of development projects. 3. In some cases, grants may be appropriately used for develop ment and technical assistance where development programs, urgently needed from the standpoint of United States objectives, cannot be soundly financed by loans. 4. Administration of programs to stimulate development in underdeveloped areas should be much more closely coordinat ed than is now the case. Other recommendations have to do with the procure ment and export of goods in short supply, the administra tion of United States foreign economic programs, and the promotion of America’s international trade and financial objectives. On the subject of world trade, the committee urges continued efforts to establish an adequate system of international payments and to eliminate trade restrictions. The report says: “We are working toward the ultimate goal of a peace which rests upon the firm foundation of an expanding world economy. It is, there fore, important that we continue our efforts to encourage world trade and capital investment throughout the world. Only in this way can the nations of the world achieve rising standards of living through sound and self-supporting economies.” Recommendations of the Chamber of Commerce of the United States with Reference to all Foreign Aid* THE ECA program, now entering its crucial phase, should bring about such international economic devel opment as will foster the normal, expanding flow of goods and services rather than permit and encourage all those disruptive restrictions inherent in nationalism. ECA funds should not be used to build up uneconomic produc tion nor to permit or encourage discrimination against United States suppliers of goods and services contrary to the intent of the ECA program. A change in course from restrictive nationalism toward true -international economic cooperation will strengthen Europe and the rest of the free world and become the largest contributing factor to continued world peace. Private enterprise and . private investment capital * should form the cornerstone of any program under taken by the United States for economic advancement in underdeveloped areas in foreign countries. Congress and the administration should make clear, in all undertakings to assist the economic development of underdeveloped areas, whether undertaken by our Govern ment directly or in cooperation with other governments through the United Nations or other international agencies, that our primary concern is for improvement of world economic conditions, and not primarily investment oppor tunities as there are ample opportunities for investment at home; and that our Government has no intention of pro viding funds for purposes for which private investment is suited or of encouraging investments in a foreign country which fosters or maintains conditions unfavorable to pri vate enterprise. American private capital is not likely to flow in substantial amounts to those areas where unpre dictable political decrees or policies of discrimination or excessive taxation retard private enterprise. The technical assistance program should be carried forward by our Government on a modest and carefully considered basis, so conducted as to avoid any reasonable charge of either paternalism or imperialism, and with due regard to our budgetary situation. Technical aid projects should be restricted to countries where there is a genuine willingness to cooperate to the full extent of their own abilities. Where capital investments are involved, aid should be contingent upon the completion with our Government of treaties and agreements to provide assurance of fair treatment for American private capital. The Government should pursue proper and important functions in the program, including: first, supervision and integration of appropriate activities by its own agencies and their coordination with those of United States private agencies; second, a provision of technical assistance, which experts available to the Government are especially qualified to provide, in fields such as public health, sanitation, educa tion, fiscal affairs, and government administration; and third, where conditions are favorable the encouragement of the investment of private capital. American private capital is available for undertakings in foreign countries which offer a favorable investment climate. To attempt to promote the investment of such capital by extending guaranties by our Government against risks involved in foreign investments is undesirable. Such guaranties would remove incentive of foreign governments to create conditions favorable to private capital investment. These conditions should be sought by treaties. Inasmuch as active participation and full cooperation by American private enterprise is so essential to the suc*From an October, 1950, publication “Policy Declaration*’’, of the Chamber of Commerce of the United State*, Washington, D.C. 448 cess of a program of aid to the economic development of underdeveloped areas, there should be mandatory require ment that an advisory board be appointed to deal with all aspects of technical and financial aid. Its personnel should be drawn from citizens of competence and experience in foreign trade, investment, and other pertinent domestic and foreign fields of private enterprise, and its recommenda tions should be published. The advisory board should provide for consultation with organizations representing American business interests in the foreign country con cerned. npHE National Chamber, while recognizing that the Nearly industrialization of the less developed countries of the world may engender greater purchasing power, better markets, and higher levels of living, warns against “in dustrialization at any cost.” In any given case the following factors should be taken into account: 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, and the requisite technical personnel; the prospect of adequate markets for industrial products either at home or abroad; the ability of industries thus fostered to survive without uneconomic trade barriers; and private rather than government opera tion. '-through treaties and agreements with other countries, the status of United States citizens and business interests abroad should be clearly defined. Any such treaty should specify that United States nationals receive, on a reciprocal basis from the consignatory nation, treatment no less favorable than that accorded its own nationals. Full protection should be afforded by special provisions if necessary to United States interests and investments in regard to such matters as the expropriation of property and the protection of patents, trademarks, and other proprietary rights owned by United States citizens. Our Government should pursue a vigorous policy against any measures of foreign countries which are pre judicial to or discriminate against our investors or invest ments abroad. tt is recommended that the Department of State be 1 urged to continue to pursue aggressively the nego tiation of treaties of friendship, commerce, and naviga tion with countries with which we have substantial com mercial relationships but not treaties; and that negotia tions to modernize existing treaties of friendship, com merce, and navigation be initiated as soon as practicable. We believe that our negotiators can benefit substan tially from the sound counsel and experienced observations of United States business interests operating in the nations with which negotiation is proposed. Such treaties should have, as a primary purpose, the establishment of protective codes which will actively en courage foreign investment. Provisions should be made for the non-discriminatory employment of management and technical personnel with correlated provisions per mitting the entry of such personnel under employment contract. '-the promotion of the foreign commerce of the United A States is dependent to a great extent on the capacity and activities of the representatives of American business abroad. These representatives have established and sup port in many foreign countries American Chambers of Commerce which promote the interest of American business, establish standards of business policy, and create interna tional good will. The Chamber of Commerce of the United States recognizes the value of American Chambers of Commerce abroad in the development of our foreign commerce. We urge that all American firms interested in foreign com merce lend their support to these Chambers by membership and by participation in their work. “TVTOW, gentlemen, I am not an alarmist. I don’t run around crying ‘wolf’. I never see bogeys under the bed—and seldom see them on the golf course, these days. But I am gravely and sincerely disturbed by what I have seen in Washington. “In my opinion, our American economic system is in deadlier peril today than it has ever been in my lifetime. I say that knowing that it has always defended itself suc cessfully against its enemies abroad; but I honestly do not know how it can be protected against its self-styled ‘friends’ in Washington who would literally hack it to death on the pretext of saving its immortal soul. I am convinced that if these misguided planners and politically ambitious office-holders have their way, three of our most precious liberties,—freedom of opportunity, freedom of initiative, and freedom of enterprise, will vanish from this earth. “I have always had great faith in the plain, cracker barrel common sense of the American people, and so long as they are permitted to know the facts, I have no fear that they will ever allow their economic system to be en gulfed by foreign ‘isms’ and ideologies. “I do not fear Communism because every passing day proves its utter failure. The American people know that if Communism were really working successfully, there would be no need for police state oppression, phony trials, and slave labor camps behind the iron curtain. “I do not fear Fascism because it has killed the three great nations which adopted it. The American people want no part of any economic system that feeds only upon war and conquest. “I do not fear outright Socialism because, in Europe today, Socialism itself is living on the dole, and America is the only country on earth that is able to foot the bill for it. No American tax-payer is likely to fall for that kind of an economic system... “But when somebody in Washington starts telling me how much he loves the Free Enterprise system and how he proposes to save it from itself, I shake in my very shoes. I wonder why it is that these self-appointed saviours of our national welfare always seem to miss the point,— the one magnificent lesson that should be apparent to anyone who looks about him at the world today. “The point is, gentlemen, that our American system of Free Competitive Enterprise is the only one left in the world that is NOT controlled by power-hungry politicians; and whether you call it the Square Deal, the Fair Deal, or the New Deal, or just plain Federal Regulation, the fact remains that once the dead hand of politics gets its convul sive grip on American business and industry, free competi tion will be strangled, and our economic system will be no different—and no more successful—than those noble ex periments which are crumbling into dust in Europe.” Benjamin F. Fairless President, United States Steel Corporation 449 The Quirino-Foster Joint Statement and the Quirino-Foster Agreement Guest House, Baguio, November 14.—The following is the joint statement issued by President Elpidio Quirino and the Hon. William C. Foster: “tvRESIDENT Quirino and the Honorable William C. Foster, as personal representative of President Tru man, concluded their conversations today in Baguio by signing, with mutual gratification, an agreement which will constitute an instrument of immense usefulness for both the Philippines and the United States. The agreement is based largely on the general recommendations of the Bell Report. It indicates the plans of the Philippine Govern ment to take immediate steps to improve its economy and the intention of the President of the United States to request substantial assistance for the Philippines as quickly as possible so as to enable the Filipino people to realize their aspirations for an improved way of life. It provides for the- usual Marshall Plan type of operations for the benefit of the Philippine and American peoples. The agreement may well herald the beginning of a new and even closer partnership between the two nations in working towards a better common future in a more stable and prosperous world.” Guest House, Baguio City, November 14.—Follow ing is the full text of the agreement signed 3 o’clock this afternoon by President Quirino in behalf of the Philippine Government and ECA Administrator William C. Foster, representing Harry S. Truman, President of the United States: PRESIDENT Elpidio Quirino and Honorable William C. Foster, as Representative of President Harry S. Truman, have agreed to recommend to their respective Governments a program covering the nature and form of the assistance and cooperation which the Govern ment of the United States would have to extend to the Government of the Philippines to assist the latter in the solution of age-old social and economic problems gravely aggravated by the last war, and to bring about a new Philippine era of progress and plenty. 1. It is realized that the Philippines must have greater production, a more diversified economy, and a higher family income for its industrial and agricultural laborers, all of which will greatly contribute to the enhancement of free institutions in the Philippines. 2. The President of the Philippines, highly appre ciative of the proffered help on the part of the President of the United States, to bring about social and economic well-being in the Philippines, announces his determination to lead his country in the attainment of this great goal, through total economic mobilization and the bold imple mentation of measures that will bring about a higher degree of social justice in the Philippines. 3. The main recommendation of the report to the President of the United States by the Economic Survey Mission to the Philippines will be the basis for serious and immediate consideration by the Philippine Government in order to attain the objectives mentioned above, and may be considered a practical and sound point of departure in working out a program of social, economic, and technical assistance and cooperation. 4. To this end, and considering that time is of the essence, the Council of State shall forthwith formulate a legislative program of the following measures for prompt consideration by the Congress of the Philippines: ♦ From a Malacanan press release. a. Tax legislation of an equitable measure designed to balance the budget and build up a surplus to gradually eliminate previous deficits and at the same time to help in counteracting the inflationary trend. It is estimated that, in order to be able to take advantage fully of United States aid, it will be necessary to fix as an immediate goal a total of not less than P565,000,000 in tax revenues. It is proposed that new and increased taxes go into effect January 1, 1951. b. A minimum wage law for all agricultural workers as the first step toward labor and rural legislation designed to raise the level of wages, especially in agricultural areas, and to improve the living condi tions of agricultural and industrial workers. c. A bold resolution expressing the general policy of Congress to accelerate the carrying out by congressional enactment of the social reform and economic development measures recommended by the Economic Survey Mission to the Philippines. 5. The United States Government agrees, at the request of the Philippine Government expressed herewith, to furnish with the least possible delay technical assistance particularly in the field of taxation and revenue collection, social legislation, and economic development, to act in an advisory capacity to the appropriate departments or agen cies of the Philippine Government. 6. Both Governments will appoint their respective committees to resume the negotiations for a Treaty of Friendship, Commerce, and Navigation. It is assumed that these negotiations will re-examine at the same time the provisions of the present Trade Agreement. It is real ized that the Philippines needs special United States assistance in trade and privileges for several years. 7. Each government will be represented in matters of social and economic assistance and cooperation by its own commission, as follows: a. A Philippine Council for United States Aid will represent the Philippine Government in its relationship with the agency selected by the United States Government (the ECA) to represent the assistance and cooperation program. b. The ECA will be the agency of the United States Government to collaborate with the Philippine Council for United States Aid. Its func tions will be to advise with the Philippine Government, through the said Philippine Council, in planning the use of American social, econ omic, and technical assistance and cooperation, and in advising and assisting the Philippine Government in carrying out the general aims and recommendations of the Economic Survey Mission to the Philippines. 8. In consideration of the determination of the Philip pine Government to act boldly and promptly on the major program designed to fulfill the aspirations of the Filipino people, the President of the United States intends to recom mend to the United States Congress the appropriation , of the necessary funds that will be required for a social, economic, and technical assistance program which will require several consecutive years of substantial aid, envi sioned in the report of the Economic Survey Mission at $250,000,000. 9. It is understood that, subject to such modifica tion as may be agreed upon by the two countries, the opera tion of the ECA in the program of the Philippines will be along general lines already established by the ECA in its relationship with other sovereign states. 10. A bilateral agreement will be negotiated between the two governments to give force and effect to the pertinent paragraphs above. Done in the City of Baguio, November 14, 1950. (Sgd.) William C. Foster (Sgd.) Elpidio Quirino Representative of President President of the PhilHarry S. Truman ippines 450 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines From an Official Source OCTOBER 31—President Elpidio Quirino informs the Cabinet that he has accepted the resignation of Dr. Jorge Bocobo as Chair man of the Integrity Board and that he has appointed former Justice Luis Torres to succeed him. Dr. Bocobo resigned because of poor health and because he wishes to devote his full time to his work on the new Code of Crime and the Code of Commerce. The President also announces that he has relieved Federico Mangahas as private secretary,—an “aftermath of the ‘Philippine commentator’s’ blast against the United States for which he admitted full responsibility". Secretary of Commerce Comelio Balmaceda, as Chairman of PRISCO, the new price-control organizetion, states he will enlist the cooperation of local1 business firms in the training of personnel. “We are embarking on a program of closer collaboration between the Govern ment and members of the businesa community. This will herald a new era in govern ment-business relationship." November 2—The President sets up seven sub-committees of members of the Council of State, the Monetary Board, and the National Economic Council to study the Bell Report and to make their recom mendations, these to be coordinated by the Philippine Economic Survey Mission headed by former Speaker Jose Yulo, in preparation for the conversations to be held with the United States representatives headed by Economic Cooperation Administrator William C. Foster who are expected to arrive in Manila on November 6. (The party was delayed at Wake by stormy weather and did not arrive until the following day.) Nov. 3—The President signs three executive orders fixing the ceiling prices of sugar, canned fish, and certain drugs and household remedies. 4 Announced that the Foster party includes besides Mr. Foster and his wife, Mr. and Mrs. Allen Griffin (Director, Far East Program Division, ECA), Robert R. Mullen (Director of Information, ECA), Vincent V. Checchi (Chief, Far Eastern Trade Policy Branch, ECA), and Robert Oliver (Executive Assistant, Office of the Labor Adviser, ECA). The party will stay in Manila for two days and leave by plane for Tokyo on November 9; it will return to Manila on November 14 and will leave again on November 17 for Bangkok with the exception of Mr. Checchi who will remain in Manila indefinitely. Nov. 4—The President makes public the Treaties of Friendship concluded by the Philippines with Turkey and Thailand signed in Washington on June 13 and 14 respectively. Nov. 5—Reported that the Department of Public Works has asked the President that representations be made to the United States Government to extend the deadline for the completion of roads and bridges from June 30 of this year to June 30 of next year, Secretary Sotero Baluyot stating that contractors have been handicapped by dissident activities, labor troubles, and delays in the shipment of steel and other materials from the United States. Nov. 7—The President confers for an hour and a half with ECA Administrator Foster and his group which was accompanied by Charge d’Affaires Vinton Chapin of the United States Embassy; also present were Vice-President Fernando Lopez, Acting Foreign Secretary Felino Neri, and State Councilor Jose Yulo. Mr. Foster presents a letter from President Truman reading: "It was kind of you to invite Mr. William C. Foster, ECA Administrator, for personal conversations with you in connection with the initiation of a program of economic cooperation between our two Governments. I am confident that your conversations will be most helpful in the development of such a program. I was also pleased to read your statement in connection with the report of the Economic Survey Mission, and believe with you that ‘we now have a working basis for serious discussion of our problems on a government-to-government level. I send my warmest personal regards and my continued admiration for the people of the Philippines.” In the evening the President gives a state dinner in honor of the visitors. Secretary of Foreign Affairs Carlos P. Romulo and Central Bank Governor Miguel Cuaderno inform the President that a P 70,000,000 budgetary loan agreement was signed in Washington today, Secretary of the Treasury John Snyder signing for the United States and Secre tary Romulo for the Philippines. The agreement permits the Philip pine Government to use the unexpended funds which the United States Government has in the Philippines amounting to $35,000,000, to be repaid in 10 years but without prejudice to any pending claims which the Philippine Government may have against the fund. The President declines to accept the resignation tendered by Judge Mariano H. de Joya as a member of the Integrity Board. De Joya gave as the reason for his resignation the fact that there are other govern ment boards investigating “alleged irregularities in the government service’’, but the President states that their duties and jurisdictions are distinct and the judge must continue to contribute his “valuable efforts in the proper cleansing of the Government of undesirable ele ments”. The Cabinet rejects a SCAP proposal to increase the amount of trade between the Philippines and Occupied Japan from $30,750,000 to $40,250,000. It approves a recommendation from the Department of Public Works for the inclusion of a dredging project for Manila Bay as a supplementary item in the program of work for the rehabilitation of Philippine ports financed by United States aid. It also authorizes the Government Service Insurance Board to purchase P500.000 worth 4% government rehabilitation development bonds and P500.000 worth of 15-year, 6-1/2% Manila Electric Company bonds. Nov. 8—The President issues the following statement after further conversations with the Foster group: “We followed up our conversation with ECA Administrator William C. Foster today. We are closing in and we have reached a common ground where we have practically come to a common understanding regarding the complete form in which the program of execution of the Bell recommendations could be carried out. I am calling a meeting Thursday morning of the Council of State, the National Economic Council, the Monetary Board, and other members of the sub-committees so that I may submit to them the outline of action which is in accordance with our meeting this morning and which we consider workable. It is my hope that the formulae we evolved this morning will be acceptable to the three top advisory bodies... It is a nice formulae.” Nov. 9—A Malacanan press release states that the three top Philip pine advisory bodies which met today “found acceptable the idea of ’ equal partnership and joint responsibility’ in carrying out the program of assistance”. The President submitted two proposals, one his own and the other Mr. Foster’s. The President’s: “We will organize a body to be composed of Filipinos and Americana. The majority of this body will be Filipinos and the rest Americans, either as experts or representatives of the United States. This will correspond to the OEEC of the United States. It will study and distribute the allocation of funds in accordance with a program of assistance similar to that extended to countries of Europe. This “ AT the very moment that the Soviet Union was staging its claims at the expense of the Chinese people and was stripping Manchuria of its exten sive industrial apparatus, the United States was giving generously of its substance to relieve the sufferings of the war-devastated countries, including China and the Phil ippines, and was getting ready to set the Philippines free and to implement a program for its economic rehabilita tion. . . “It will not be lost to the people of Asia who have seen the United States lend the support of its influence and power to achieve the independence of Indonesia, while the Soviet Union stood on the sidelines unwilling to lift a finger to help because she could not make political capital out of a peaceful settlement of the problem. . . “The resources of the United States have been poured out by the billions of dollars since the war to succor the needy of all nations, to provide assistance to underdeveloped countries, to strengthen the economy of the post-war world. Against this record of so-called ‘imperialist’ Amer ica, we are obliged to set in contrast the non-participation of the Soviet Union in similar activities and its total abstention from all forms of international cooperation in promoting the economic, social, and cultural progress of the world.”—CARLOS P. ROMULO, before the United Nations General Assembly's Political Committee, December 7, 1950. 451 Ad • • tr ti Offi d th D art t into the C^°P"ativcs The President takes part in the official inauguration of the new Rockwell Station of the Manila Electric Company. He states, in part: “Here is proof that foreign capital has faith in the country. . . Why should we Filipinos, in our own country, not show more faith?" The Cabinet decides it will act on individual cases of lumber com panies which apply for authority to employ foreign technicians to handle specialized work. “Permission will be granted only if it can be shown that no Filipinos are at present available to handle the specialized work. The lumber firms will also be required to employ Filipinos as under studies of the foreign technicians.” The Cabinet also decides to give American Jesuits who entered the Philippines as non-quota immigrants the privilege to stay longer than 5 years provided they apply for ex tension of their stay. Nov. 11—The President issues Executive Order No. 367 integrating the National Urban Planning Commission, the Capital City Planning Commission, and the Real Property Board into one organization to be called .the National Planning Commission. Nov. 13—The President issues Executive Order No. 13 fixing new ceiling prices with respect to certain milks, cocoas, and canned sardines. Nov. 14—Announced that the President has increased the mem berships of the sub-committees studying the different recommenda tions of the Bell Report by including members of the opposition. Following another meeting in Baguio between the President and his advisors and the Foster group, a joint statement is issued concerning an agreement arrived at “based largely on the general recommenda tions of the Bell Report”. The Agreement was subsequently released. (Both the joint statement and the Agreement are published elsewhere in this issue of the Journal.) Nov. 15—The President and his party emplane for Vigan, where he will celebrate his 60th birthday anniversary tomorrow. Nov. 18—The President returns to Manila and receives a courtesy call from United States Secretary of the Navy, Francis P. Matthews who is on an inspection tour of United States naval bases in the Far East and who arrived in the Philippines yesterday. At a meeting of the Council of State, presided over by the Pres ident, it is decided to call a special session of Congress on December 4 to act on various proposed tax measures. The Council creates a com mittee of 9 members—3 members of the House, 3 of the Senate, and 3 of the Cabinet, to prepare the legislation. -The President entertains at luncheon the members of the Honolulu Chamber of Commerce now in the country on a goodwill mission, headed by Urban E. Wild, President of the Chamber. Other members in the party are Miss Mary Mae Wild, Mrs. Ann Grubb, Mrs. Elizabeth Corne lison, A. B. Henderson, B. E. Ayson, and L. Withington. an Executive Order changing the Service to Philippine Information of the Councjl of State meets for the first M. J. Cuenco and ed over reports of large-scale smugganization of a committee to recomwith this as well as violations there le due to the smuggling are >esos. The Cabinet also bans s; copper and brass will be only. The Cabinet approves th of 400,000 vials of strepto the public “in order to stabition declaring Thursday, Day. This is the first ice the establishment of he declined to accept the lrosa, who tendered it on per report from Washingtive Secretary Marciano Roque, on behalf of the Photographers Associa■'uenavcntura, that he control licenses for . Order providing for liquidation of the National Abaca and Other Fibers National Coconut Corporation, the National Tobacco Corporation, and the former associations transferred of the abolished corpora tions will be assumed by in and two members to dispose of all the prep arations, however, will for the purpose of any suits with the liquidation. Officials will be entitled to a gratuity equiry year of continuous service. The big corporations have ned authorized capital of P52.500,000, of which P17.591.847 was paid up. The net proceeds of the liqui dation will accrue to a special fund for the rehabilitation and develop ment of the abaca, copra, and tobacco industries. The trading func tions of the abolished corporations will be assumed by PRISCO. The Bureau of Plant Industry will undertake the improvement in the proces sing of abaca, copra, and tobacco. The President accepts the credentials of the new Argentine Minister, Jose Bautista Salles, at ceremonies in Malacanan. Nov. 25—The President creates the Philippine Council for United . States Aid to start immediate negotiations with United States represen tatives to plan the projected development program. He is reportedly drafting an executive order to create the Office of Economic Adminis trator to take the place of the Department of Economic Coordination, which will be abolished. The new office will correspond to the Philip pine Development Authority mentioned in the Bell Report. The Council is composed of the following: former Speaker Jose Yulo, Chairman, Finance Secretary Pio Pedrosa, Central Bank Governor Miguel Cuaderno, University of the Philippines President Bienvenido Gonzalez, Economic Coordinator Salvador Araneta, Philippine National Bank President Vicente Carmona, Reconstruction Finance Corporation Chairman Placido Mapa, Budget Commissioner Pio Joven, and Na tional Power Corporation Manager Filemon Rodriguez, members, with • Dr. Amando Dalisay, Secretary. The President receives Senator William F. Knowland (Republican, California) who arrived earlier in the day on his return trip to the United States from a fact-finding tour of Japan, Korea, and Formosa. Nov. 26—The President entertains Senator and Mrs. Knowland at luncheon at Malacanan. Nov. 27—The President, on recommendation of the Integrity Board, suspends Director Felipe E. Jose of the Bureau of Labor, pending the investigation of administrative charges brought against him. The President issues another executive order setting up new ceiling prices for prime commodities. Nov. 28—The President issues Executive Order No. 376 abolishing the Rural Progress Administration and transferring its functions and assets to the Division of Landed Estates created in the Bureau of Lands. Nov. 29—The President instructs Secretary Balmaceda, as Chair man of PRISCO, to give away as Christmas gifts to the needy stocks of articles, including clothing, canned goods, and plows and other agri cultural equipment which was accumulated by PRATRA and remains unsold “because the cost price was high”. Nov. 30—Executive Secretary Teodoro Evangelista issues an order that officials and employees of the Executive Office are not permitted to intervene or to make recommendations to the Import Control Adminis tration in connection with applications for import licenses. 452 Banking and Finance By C. R. Hutchison Manager, Port Area Branch, National City Bank of New York COMPARATIVE statement of condition of the Central Bank: Assets Dec. °31 (In As of Aug. 31 thousand As of Sept. 30 s of Pesos} As of Oct. 31 I International Reserve. . . P460.689 P446.758 P491.176 P596.409 Contribution to Interna tional Monetary Fund. 30,000 30,000 30,000 30,000 Account to Secure Coin age .................................... 113,306 113,306 113,306 113,306 Loans and Advances........ 77,047 53,168 66,253 36,208 Domestic Securities.......... 92,197 137,250 148,851 155,880 Trust Account — Secur ities Stabilization Fund — 6,848 6,848 6,848 Other Assets...................... 20,390 29,885 31,395 36,123 P793.629 P817.215 P887.829 P974.774 Liabilities Currency—Notes.............. P555.576 P556.911 P569.764 P584.871 Coins............... 74,384 82,557 83,221 84,239 Demand Deposits—Pesos 117,682 125,234 180,141 261,342 Securities Stabilization Fund................................. 2,000 6,848 6,848 6,848 Due to International Monetary Fund........... 22,498 22,498 22;493 498 Due to International Bank for Reconstruc tion and Development. 2,389 2,388 2,388 2,388 Other Liabilities................ 2,636 3,590 5,111 16,040 Capital................................. 10,000 10,000 10,000 10,000 Undivided Profits............. 6,464 5,573 6,242 6,932 Surplus................................. — 1,616 1,616 1,616 P793.629 P817.215 P887.829 P974.774 The International Reserve increased P105.233M during October, resulting in the largest month-end balance recorded since June, 1949. From August 1, 1950, to Oc tober 31, the reserves increased P157MM. Comparative International Reserve figures and net foreign exchange holdings of other banks since June, 1949, follow in U. S. Dollars: Net FX Holdings Other Banks Total Int’l Reserve Central Bank June 30, 1949................... $ 320MM $ 20MM $ 340MM December 31, 1949......... 231 29 260 June 30, 1950................... 221 43 264 September 30, 1950........ 246 46 292 October 31, 1950............. 298 52 350 November 4, 1950.......... 289 53 342 November 11, 1950......... 284 61 345 “Loans and Advances” dropped to P36MM because of a repayment of P30MM by the Philippine National Bank. “Domestic Securities”'increased P7MM, represent ing further advances to government entities against their paper. Currency notes in circulation increased a further P16MM during October and reached the highest figure since February, 1949. “Demand Deposits” of local banks continued to increase another P81MM and reflect the larger bank deposits resulting from War Damage payments. The “International Monetary Fund” account dropped P22MM during the month due to an IMF loan to the Philippine Government. On November 7, 1950, the completion of a 10-year loan of $35MM from the United States to the Philippines was announced. These funds represent the balance of approximately P70MM remaining from funds provided by the United States in 1948 to cover claims against that Government by Philippine guerrilla forces. Money remains easy and most commodities reportedly are being sold on a cash to 15-days basis. The scarcity of supplies caused by import controls is acute in many lines. An increased number of import licenses were released during the month, but this merchandise will not arrive for some time; meanwhile prices of commodities continue to rise. The issue of P8,000,000 Manila Electric Company 15-year 6-1/2% debentures, offered for sale at par to the public on October 2 through members of the Manila Stock Exchange, was sold out by November 10. The bulk of the issue was reported to have been purchased with War Dam age funds by local companies (some inactive) which had to invest locally in order to qualify for the awards. Credit By C. W. Muilenburg Manager, Credit and Collection Department International Harvester Company of Philippines SEVERAL credit managers have stated that the current lack of inventory eliminates or at least greatly mini mizes the problem of credit. Similarly, firms dealing in wanted items in short supply are demanding and receiv ing cash. It is found, however, that during recent weeks there has been no noticeable change in credit terms but a continuing practice of strictly enforcing standard estab lished terms, keeping credit within assigned limits, and rigidly limiting the period to the time set. This can, in effect, be considered a partial reduction in credit amount limits and a shortening of time. Thirty-day terms are still in effect in a majority of firms, but an increasing minor ity reports 15-day and 7-day standard terms. In general, collections have continued satisfactory, with the exception of various government corporations whose assets are' at the moment inactive pending reorganization. Several credit executives have recently spent consider able time and effort, both individually and collectively, drawing up plans and outlines for a comprehensive credit manual for use in the Philippines. It is hoped that this credit manual when completed will prove of considerable . assistance to all credit managers. The Association of Credit Men, Inc. (P.I.) reports that some members have found it necessary to withdraw their membership at the end of the last quarter, but it is encouraging to note that new members are being conti nuously added to the Association so that the total mem bership remains at about the same level. The services of the Association remain the same, but a survey is cur rently being undertaken to evaluate these services and to re-examine them to see if some changes might be advanta geous in the way of additions or deletions in view of the changed conditions prevailing at this time. Manila Stock Exchange By Roy Ewing Swan, Culbertson & Fritz, Inc. November 1 to 30, 1950. THE market high for November was on the 3rd with the Mining Share Average at 120.33. A sharp break followed on General MacArthur’s strong statement about the presence of Chinese Communist troops in Korea and sent the average to 104.77 on November 7. Between the 7th and 25th, the market fluctuated widely on mixed international and local political developments, the average recovering to 111.97 on the 22nd. The final three market sessions saw extreme weakness in all sections as the worsen453 ing news from Korea caused liquidation. The average closed the month at 100.12, the lowest since late September. An additional bearish factor was the diminishing fear of devaluation following further study of the Bell Mission Report. This also caused a drop in the price of gold on the free market to around Pl 16 as compared to over P130 in October. The proposed new taxes also caused concern and tended to offset the satisfactory report’s of productions and earnings from the operating companies. As a group, the gold shares suffered more than the base metals or sugars because producers of “necessities” will be in a more favored position as regards supplies in the event of the spread of war. During the two periods of weakness the selling at no time reached panicky proportions and the volume of bus iness done was small on the sell-off. At present writing it appears likely the market will remain a quiet affair pend ing international developments, which will remain the principal influence. Real Estate 1949-50 Range High Low 126.83 60.32 0.375 0.09 0.024 0.011 0.68 0.26 0.0725 0.04 3.75 2.00 0.0052 0.0025 5.30 2.50 0.05 0.012 0.014 0.0078 0.235 0.14 0.115 0.038 0.08 0.025 0.90 0.17 0.035 0.016 0.71 0.31 0.22 0.025 0.08 0.03 0.22 0.105 0.345 0.12 0.043 0.01 0.11 0.04 COMMERCIAL SHARES MINING SHARES Close Change Total Sales High Low i M.S.E. Mining Share Ave............................ 120.33 100.12 100.12 Off 9.05 10,892,155 Acoje Mining Co........ 0.23 0.18 0.17b 511,000 Antamok Goldfields Mining Co............... 0.032 0.03 0.026b 795,000 Atok-Big Wedge Min0.425 0.36 0.34b 550,000 Baguio Gold Mining 0.09 0.065 0.06b 165,000 Balatoc Mining Co.... 2.40 2.15 2.00b 9,400 Batong Buhay Gold Mines........................ 0.0051 0.0035 0.0028b — 1,500,000 Benguet Cons. Mining Co.............................. 4.25 3.80 4.00 Off 0.25 13,077 Coco Grove, Inc.... . . 0.035 0.03 0.03 285,000 Consolidated Mines, Inc.............................. 0.011 0.0105 0.0105 3,145,000 HIXBAR..................... 0.235 0.14 0 16b 824,200 Itogon Mining ComMining Com pany .......................... 0.105 0.075 0.08 Off 0.015 340,000 0.06 0.05 0.055a 57,000 Lepanto Cons. Mining 0.84 0.65 0.65 Off 0 .19 883,200 Maabate Cons. Mining Co.............................. 0.05 0.034 0.027b 440,000 Mindanao Mother Lode.......................... 0.66 0.55 0.S7 Off 0.08 628,000 Misamis Chromite, Inc.............................. 0.04 0.035 0.03a 50,000 Paracale ■ Gumaus Cons.......................... 0.09a San Mauricio Mining Co............................... 0.20 0.19 0.21a 10,000 Surigao Cons. Mining Co............................... 0.33 0.27 0.26b 424,000 Suyoc Cons. Mining Co............................... 0.015 0.015 0.013b 50,000 United^Paracale Min0.075 0.065 0.05b - 60.000 By Antonio Varias Vice-President, C. M. Hoskins Co., Inc., Realtors REAL estate sales in the Greater Manila Area registered during the month of November numbered 567, with a total value of P8,638,156, of which 164, with a total value of P5,092,409, represented sales within Manila proper, and 403, with a total value of P3,545,747, sales in the suburbs. Among the larger properties which changed hands during the month were: A property with a tract of 201,054 square meters in Balintawak, Caloocan, sold by Ateneo de Manila to the Monja Estate, Inc., for 900,000; A 3-story concrete building with a lot of 1,067.2 square meters at Dasmarinas Street, Binondo, the former “Gibbs Building”, sold by Ernesto Oppen, Jr. to Florencio and Angel Reyes for P835.000; A property with a lot of 621.6 square meters in Nueva Street, Binondo, sold by Pablo Alcazar Tan to Madrid Import & Export Corp, for Pl72,000; A property with a lot of 14,217.8 square meters in Santa Ana sold by Antonio Ferrer y Gutierrez to Joaquin Cuatico for P150.000; A 3-story semi-concrete building with a lot of 86.1 square meters at Dasmarinas Street, Binondo, sold by C. G. Nazario to Exequiel Floro for P150.000; and The transfer of several properties in San Nicolas, Paco, Santa Cruz, and Quiapo, by Primitivo and Leonarda Garcia to the corporate name Zosima, Incorporated, for P2,408,000. Real estate mortgages placed in the Greater Manila Area during the month numbered 363, with a total value of P5,825,294, of which 132, with a total value of P2.738,934, are in Manila proper, and 231, with a total value of P3,086,360, are in the suburbs. Monthly figures of sales and mortgages, as compiled from reports of the offices of the Register of Deeds of Manila and suburbs, are: Month. 1950 February. March. . . April. May July. _ . . . September. October. .. November. CUMULATIVE___ AVERAGE................ REAL ESTATE SALES (January to November, 1950) Manila Suburbs No. 267 240 239 146 225 196 180 169 184 238 164 2248 204 Value P3,554,460 3,703,126 3,564,944 3,176,939 2,567,044 2,180,895 3,063,272 2,912,418 3,174,828 2,237,727 3,545,747 33,681,400 3,061,945 Combined 93.00 82.00 200.00 38.00 200.00 27.00 1.30 4.00 0.82 0.165 1.30 38.00 100.00 104.00 59.00 51.00 111.00 20.00 185.00 23.50 0.55 2.00 0.30 0.04 1.00 24.50 95.00 100.00 *Ez-Di vidend. Bank of the Philippine Central Azucarera de Central Azucarera de Cariota..................... 91.00 17S.00 91.00 174.00 87.00b 82.00a 174.00a - Central Azucarera de Tarlac....................... 35.00 35.00 38.00a China Banking Corpo ration ........................ 220.00b Filipinas Cia. de Seguros......................... 26.50b 0.55 0.55 0.56a Manila Wine Mer chants ....................... 2.80b Pampanga Bus Com pany .......................... 0.40 0.40 Philippine Oil Deve lopment .................... 0.065 0.06 0.045b Philippine Racing Club.......................... 1.45a ' San, Miguel Brewery— 34.00 32.00 32.00 Off 3.00 San Miguel Brewery— 97.00 97.00 95.00b San Miguel Brewery— 8% Pfd..................... 102.00 101.00 101.00b - OVER-THE- COUNTER REAL ESTATE MORTGAGES 4,870 . Electric Power Production (Manila Electric Company System) J. F. Cotton Treasurer, Manila Electric Company 1941 Average—15,316,000 KWH Jai-Alai Corp.................................................... Manila Jockey Club....................................... Phil. Amer. Drug Co.—Common.............. Santa Roaa Mining........................................ Victoria* Milling............................................. High 4.00 2.00 135.00 0.001 230.00 Low 4.00 2.00 135.00 0.001 200.00 Close Total Sales 350 7,827 20 11S.OOO 1,337 January.......................................................... February........................................................ March............................................................. April................................................................ KILOWATT HOURS 1950 37,661,000 33,828,000 38,107,000 35,378,000 1949 33,745,000 31,110,000 34,776,000 33,048,000 454 December, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 455 May................................................................. 37,611,000 34,453,000 June................................................................. 37,529,000 34,486,000 July.................................................................. 38,774,000 35,726,000 August............................................................ 39,872,000 35,394,000 September..................................................... 38,791,000 35,763,000 October.......................................................... 40,657,000* 37,461,000 November...................................................... 39,270,000** 35,856,000 December...................................................... 38,673,000 Total.............................................. 420,491,000 ♦ Partially Estimated z-vutfut in November was 3,414,000 kwh or 9.5% '^'over last year. The output per day was nearly iden tical with October. The system is now capable of carrying full load without danger of interruptions under normal conditions. Port of Manila By R. L. Moore Treasurer, Luzon Brokerage Company THE anticipated increase in business for the month of November was never forthcoming, the exact reason, not known to ourselves. Suffice to state that the continued lack of business of incoming cargo poses a serious threat to the continued survival of many business houses. The customs brokers do not escape the same threat, for, after all, the imports are the principal means of our bread and butter, and we on the waterfront receive the first impact. The Customs Brokers Association representing vir-’ tually all brokers in Manila saw fit to request a substantial increase in the present rates for brokerage and trucking from the piers. In the case of the brokerage rates, a public hearing was held in the Office of the Collector of Customs, Mr. Melecio Fabros, at which the opinions of business representatives in connection with the request for increase were invited. Insofar as the brokers are concerned, there is an absolute necessity for increased rates as they have long been performing brokerage work at a loss due to the much decreased volume of imports and the much increased paper work. There is room for question perhaps as to the exact amount of increase to be agreed upon, but there can be none as to the need for an upward revision. In the case of the trucking rates, where losses also have been long sustained by the brokers, the matter will be settled by the Public Service Commission in the same manner that utilities such as light, water, etc., are decided upon by this Commission. The Commissioner of Customs, Mr. Alfredo V. Ja cinto, has announced a revolutionary change in the case of the handling of air cargo; henceforth all such cargo will be cleared at the airport. The previous arrangement was irregular and was only brought about because of the im mediate need, post-war, for the airlines to deal with the problem of cartage and transportation to and from the airport in the absence of any such services by the com mercial houses at that time. Ocean Shipping and Exports By F. M. Gispert Secretary, Associated Steamship Lines TOTAL exports for the month of October of this year showed a considerable increase over exports during October of last year. 102 vessels lifted 290,487 tons of exports during the ‘Buy lS[ational Qity Bank Travelers (fecks If you’re wise you’ll make reservations for | hotels, train berths, ships, planes to avoid a spoil ed trip. Why take chances with your travel money? Carry National City Bank Travelers Checks and protect yourself against theft or loss. Your money refunded if lost or stolen. NCB Travelers Checks faithfully guard your funds wherever you travel—at home or overseas, and save you needless worry. Because NCB Travelers Checks are backed by America’s greatest World Wide Bank, they are known and accepted everywhere. In denom inations of $10, $20, $50 and $100—good until used. THE NATIONAL CITY BANK OF NEW YORK JirAt in World-Wide Ranking Branches in the Philippines MANILA Main Branch: Juan Luna St. Port Area Branch: 13th Street PAMPANGA; Clark Field CEBU« Cebu City 456 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1950 month, as compared to 151,071 tons lifted by 85 vessels during the same month last year. Commodities which have registered a sharp increase over last year’s figures for the same month, are: concen trated copper from 2,845 to 8,956 tons; hemp from 39,140 to 82,113 bales; junk metal from 771 to 7,439 tons; logs from 1,878,024 to 10,165,002 board feet; lumber from 2,764,095 to 20,560,518 board feet; chrome ore from 4,000 to 23,451 tons. Exports for October, 1950, as compared with exports during October, 1949, were as follows: 1950 1949 Alcohol............................. 35 tons 54 tons Buntal fiber................... 13 ” 19 ” Cigars and cigarettes... 10 ” 1 ” Coconut, desiccated. . . 12,678 ” 11,125 ” Coconut oil..................... 6,858 ” 7,065 ” Concentrates, copper. . 8,956 ” 2,845 ” Concentrates, gold.... 459 ” 452 ” Copra............................... 75,400 ” 55,445 ” Copra cake/meal........... 6,000 ” 7,135 ” Embroideries...........,. . 255 ” 191 ” Empty cylinders........... 362 ” 600 ” Fish, salted..................... 10 ” 19 ” Foods, canned............... 11 ” 25 ” Furniture, rattan.......... 1,526 ” 541 ” Glycerine........................ 226 ” 136 ” Gums, copal:................. 77 ” 77 ” Hemp............................... 82,113 bales 39,140 bales Household goods........... 468 tons 141 tons Junk metal..................... 7,439 ” 771 ” Logs.................................. 10,165,002 bft. 1,878,024 bft. Lumber............................ 20,560,518 ” 2,764,095 ” Molasses.......................... 4,203 tons 3,333 tons Plywood.......................... 59 ” — Ores, chrome................. 23,451 ” 4,000 ” ” iron........................ 41,531 ” 33,401 ” ” manganese........... 8,437 ” ’ 1,795 ” Pineapple, canned........ 723 ” 3,641 ” Rattan, palasan............. 504 ” 181 ” Rope................................. 648 ” 177 Rubber............................ 139 ” 137 Shells, shell waste......... 146 ” 19 Skins, hides.................... 80 ” 66 Sugar................................. 13,662 ” — Tobacco........................... 412 ” 13 Vegetable oil products. 26 ” 41 Transit cargo................. 10 ” 194 General merchandise... 1,381 ” 2,654 Mines By Nestorio N. Lim Secretary, Chamber of Mines of the Philippines THE gold production for September and October was bigger than the production for July and August. The increase was due to the bigger tonnage of gold ore milled during the two-month period. The average recovered gold value per ton of ore milled remained about the same for the past four months; it ran as follows: July, P17.70; August, P18.70; September, P17.90, and October, Pl8.50. The recovered gold value per cubic yard of gravel in placer gold was P0.46. The recovered gold content of Lepanto Consolidated copper ore per ton was P6.80 for September and P7.30 for October. Among the gold lode mines Mindanao Mother Lode has the highest gold recovered value per ton, P30 for September and P40.60 for October. The promised measures in the Import Control Office to give top priority to the mining industry, which is a dollar producing industry, have not been realized. Licenses for much needed machine parts, explosives, and chemicals and supplies continue to pile up in the files of the Import Control Office. The changes in the Import Control Ad ministration have not facilitated the approval of mining applications, and the delay remains the same. 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 174 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 December, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 457 The mining industry is again facing the problem of increased taxation even though it is not yet on its feet. Only 27% of the pre-war producers are rehabilitated. Re habilitation is slow due to lack of capital, high cost of production, scarcity of machinery and supplies, the un certain market, and the peace and order situation, in addi tion to problems met in the Import Control Office. Mine taxes have been already a heavy burden, and though there was a move to ask for a reduction of taxes in the early part of 1949, this was not carried through when 75% of the gold bullion of each producer was allowed to be sold in the free market within the Philippines. Any increase in the present taxes will be highly detrimental to the industry. The marginal profit is already too small for the risk involved. Capital for the development of new mines should be encouraged. The producers should be allowed to buy ma chinery, supplies, chemicals, and other necessities for ex ploration, development, and exploitation without further delay. And new mining enterprises should be allowed to explore, develop, and come into production before taxes are levied. PHILIPPINE GOLD MINE PRODUCTION September and October, 1950 Mining Companies Tonnage Short Tons Oz. Gold Value of Gold Oz. Silver Value of Silver Total Value Atok-Big Wedge Mining Co., Inc........ . . Sept. 13,500 4,311 P 301,737 2,746 P 3,900 P305.637 Oct. 14,291 4,304 300,817 2,708 3,845 304,662 Balatoc Mining Company...................... . . . Sept. 39,575 6,704 469,070 4,000 5,840 474,910 Oct. 40,651 7,405 518,350 4,242 6,007 524,357 Benguet Consolidated Mining Co........ . . Sept. 27,749 5,530 387,100 3,300 4,818 391,918 Oct. 29,273 7,389 517,230 4,233 6,048 523,278 Lepanto Consolidated Mining Co........ . . . Sept. 27,827 2,690 188,328 — — 188,328 Oct. 29,090 3,022 211,526 — — 211,526 Mindanao Mother Lode Mines, Inc.. . . . . Sept. 9,900 5,693 394,523 5,114 6,875 401,398 Oct. 10,900 4,648 321,641 5,658 7,578 329,219 Surigao Consolidated Mining Co......... .. Sept. 9,040 3,081 215,670 2,069 3,103 218,773 Oct. 9,000 3,100 217,000 2,489 1,045 218,045 Surigao Placer Syndicate........................ . . Sept. 43,000 Cu. 43,000 yds. 277 ’ 263 19,386 — — 19,3’86 Oct. 18,410 — — 18,410 Tambis Gold Dredging Co., Inc........... . .. Sept. , 27,472 ’ . 154 9,100 — 9,100 Oct. 26,462 1 172 10,500 — — 10,500 (X) Lead, Copper, or Zinc values are not included. INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS -------+------SPECIALISTS IN KILN DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Norton & Harrison Company D. C. Chuan & Sons, Inc. 814 Echague 14-30 Soler St. Manila Manila MANILA OFFICE-. 401 FILIPINAS BUILDING Insular Saw Mill, Inc. 340 Canonigo, Paco Manila 458 AMERICAN CHAMBER OF COMMERCE JOURNAL Lumber By Luis J. Reyes Philippine Representative, Penrod, Jurden &• Clark Company ANEW record was made by lumber producers during the month of October. Whereas in the previous month there was shipped a total of 18,459,867 board feet, the highest since liberation up to that time, a still greater total was exported during the month of October,— 30,125,215 board feet, mostly to Japan and the United States. This high record is even greater than the average monthly shipment for 1937, when the lumber export total led 251,695,000 board feet for the year, the bulk of which also went to Japan. The record shows that exports to Far Eastern coun tries went principally to Korea (through Japan), and to the United States, which took almost 8,500,000 board feet. The rest went to South Africa, Canada, Hawaii, Guam, Hongkong, and Formosa. According to the Bureau of Forestry, shipments for the month of October were as follows: Shipments to the United States also showed a million board-feet increase over that of the previous month and would have been greater had it not been for the urgent requirements of the United Nations in Korea, which had been given a high priority. Members of the Philippine Destination Lumber Logs Total (Bd. ft.) (Bd. ft.) (Bd. ft.) United States...................... 4,047,618 4,419,378 8,466,996 Canada................................. 53,057 96,960 150,017 Japan and Other Far Eastern Countries........ 12,876,631 7,443,824 20,320,455 Hawaii and Guam............ 138,866 138,866 South Africa...................... 187,548 861,333 1,048,881 Total..................................... 17,303,720 12,821,495 30,125,215 Lumbef Producers’ Association have done their best with their mills, which are not as yet fully rehabilitated. Be sides SCAP requirements, the pre-war Japanese importers are buying large quantities of logs to feed the veneer mills. Prices paid by Japan for peeler logs are now similar to those paid in America. While the bulk of the plywood made from our woods is used in Japan, some, it is said, finds its way to America and Australia. The prices obtained by Philippine producers for export shipments to Japan are about the same as those realized by them in the Philippine markets, but the big volume of shipments had a moralizing effect on the Philippine pro ducers for the reason that prices have remained almost at the same level during September and October as in January to March, when the building season starts. August, Sep tember, and October, as a general rule, are lean months when producers break only about even in their operations. In the Manila market, wholesale prices are as follows: Tangile.................................................. P200 to P210 per M bd. ft. Apitong.................................................. 190 per M bd. ft. White Lauan ..................................... 185 per M bd. ft. It is likely that these prices will be maintained during the next three months as we are heading into the dry season, when building construction will start in earnest. Copra and Coconut Oil By H. Dean Hellis Manager, Philippine Refining Company, Inc. October 16 to November 15 THE copra and coconut oil markets during the period under review have been more quiet and perhaps less spectacular as far as demand has been concerned than in recent periods since the outbreak of the Korean hostilities. The trend in prices, however, has been generally slowly £NGIN££RS—CONTRACTORS MANUFACTUR£RS—DISTRIBUTORS SPECIALIZING IN THE FABRICATION AND ERECTION OF BRIDGES, BUILDINGS AND TANKS Operalinf: MACHINE SHOPS FOR CONSTRUCTION AND REPAIR FOUNDRY FOR CASTIRON DRASS & BRONZE 'STEEL PLATE & STRUCTURAL STEEL SHOPS MARINE REPAIR SHOPS • WOOD PRESERVING PLANT ATLANTIC, GULF & PACIFIC CO. OF MANILA (PHILIPPINE CONTRACTORS SINCE 1905) December, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 459 and steadily upward, due more than anything else to a rather strong situation in the United States fats and oils picture. Prices there have continued surprisingly high for this time of the year, particularly with regard to tallow and cottonseed oil. Some traders have felt them to be unduly and dangerously high, and subject therefore to a sharp break downward at almost any time. This downward reaction, of course, has not yet occurred, and consequently coconut oil has been a little more in demand by way of partial substitution for other oils than otherwise might have been the case, particularly in the field of edible require ments. Europe, on the other hand, has shown relatively little interest in Philippine supplies, the disparity in price with copra available from the sterling areas being insufficient to make purchases here attractive. Due to the shortage of dollars, European countries naturally prefer to buy from the sterling areas, even though the price may appear to be high in comparison with dollar values converted to sterling at the official rate of exchange. It is generally only when this .disparity becomes sufficiently pronounced to make business really attractive, or perhaps on those occasions when the immediate overall demand exceeds available supplies, that we find Europe actually has much of an incentive for purchasing Philippine copra or coconut oil. The supply situation here in the Philippines has con tinued seasonably very good, though it will not be long now before we come to the end of the heavier copra production months. We definitely should see a falling off in production and corresponding exports during the early part of next year, which incidentally will come at a time when probably a shortage of cottonseed oil may begin to be felt in the market, as a result of the smaller cotton crop this year in' the United States. As far as Philippine copra is concerned, however, we have been very fortunate this year in that we have had little or no heavy typhoon damage in any of the heavy coconut producing regions. Weather and climatic conditions have been exceptionally good, and, therefore, barring the unforeseen, we should reasonably be able to expect an excellent crop of coconuts in 1951. The chances are, how ever, that this will not become apparent until the second half of next year when production is generally at its heaviest. '-t'here are no new developments to report this month regarding ocean-going freight space. There presently appears to be sufficient space available to all potential destinations. Future probabilities, however, will depend largely upon the turn of events in the international situa tion. As reported in an earlier issue, freight rates on copra, coconut oil, and copra meal from the Philippines to the United States will be increased $4 per ton effective Decem ber 2. It may very well be that Philippine sellers will have to absorb most or all of this* increase in lower net prices. Prices of export copra opened for the period under ••■review with buyers at around $200 c.i.f. Pacific Coast, while sellers had ideas of from $205 to $210 c.i.f. These prices advanced slowly and gradually to where at close business was done at $225 c.i.f., with sellers asking $227.50 to $230 c.i.f. Also at close, Philippine sellers were asking around $266 per long ton c.i.f. European ports, landed weight basis, which at the official rate of exchange is the equivalent of £95-0-0. As Straits copra was available at £102-0-0, and as a £7-0-0 per ton difference in price provides insufficient incentive to European buyers, there was no apparent buying interest for supplies from here. Locally in Manila, prices ranged from about P38 at opening to around P41 or P42 at close, with arrivals being generally satisfactory throughout the entire period. In Cebu, prices on the average ran one to two pesos higher than in Manila. PACIFIC meiuiiawisim; CORPORATION 449 Dasmarinas Manila EXCLUSIVELY REPRESENTING.... CORBIN LOCK COMPANY AMERICAN RADIATOR & STANDARD SANITARY CORPORATION UNION CARBIDE & CARBON CORP. National Carbon Division “Eveready” flashlights & batteries LINDE AIR PRODUCTS CO., INC. “Union” Carbide THE PARAFFINE COMPANIES, INC. “Pabco” Products AMES BALDWIN WYOMING COMPANY BALL BROS. MASON JARS EKCO PRODUCTS CO. MALLEABLE IRON FITTINGS CO. FAIRBURY WINDMILL CO. CAPEWELL MANUFACTURING CO. SLOAN VALVE COMPANY BOMMER SPRING HINGE COMPANY COLUMBUS COATED PRODUCTS CO. KEENEY MANUFACTURING COMPANY BADGER METER MANUFACTURING CO. DICK BROTHERS MANUFACTURING CO. CARBORUNDUM COMPANY BADGER FIRE EXTINGUISHER CO. STEEL PRODUCTS HOUSE FURNISHINGS GENERAL HARDWARE PLUMBING 460 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1950 TOPS SERVICE “REDDY KILOWATT POWER!” That’s where you get Reddy Kilo watt. The Mighty Atom in Person! REDDY KILOWATT POWER can’t be beat for dependability, service, price. Just think how quickly Reddy Kilowatt does all the work in your home and you’ll know what that means — especially when you figure that he works for only about eight centavos an hour. That’s REDDY KILOWATT POWER for you! MANILA ELECTRIC COMPANY 134 San Marcelino Manila Similar to the gradual advance in copra prices during the period, coconut oil values in the United States increased about 1H cents per pound. Bulk oil business at close was done at 18 cents c.i.f. Atlantic Coast, while buyers on the Pacific Coast were expressing ideas of 17 cents f.o.b. tank cars for December deliveries. P'opra exports during the month of October, 1950, ^continued fairly heavy, amounting to 75,400 tons, as compared to 76,774 tons during September, 1950, and only 55,445 tons during October, 1949. The total for the January through October period in 1950 amounted to 530,359 tons, against 462,462 tons for the same period last year. October, 1950, exports are broken down as to destination as follows: United States Pacific Coast............................................ Atlantic Coast......................................... Gulf Ports................................................. Canada............................................................... Japan.................................................................. Trieste................................................................. Italy.................................................................... Sweden................................................................ Holland............................................................... Hamburg........................................................... Belgium.............................................................. France................................................................. Norway............................................................... Columbia........................................................... Venezuela........................................................... Europe Optional.............................................. 32,150 long tons 4,622 ” 2,952 ” 4,050 ” 2,790 ” 1,600 ” 5,350 ” 2,000 ” 7,500 ” 500 ” 3,800 ” 1,200 ” 500 ” 4,586 ” 1,300 ” 500 ” 75,400 long tons Coconut oil exports for October, 1950, amounted to 6,858 tons, as compared to 10,666 tons during September, 1950, and 7,065 tons during October, 1949. The total exports for the January through October period in 1950 amounted to 53,483 tons, against 53,225 tons for the same period last year. October, 1950, exports of coconut oil are broken down as to destination, as follows: United States Atlantic Coast......................................... South Africa...................................................... Italy.................................................................... Holland............................................................... 5,454 long tons 379 ” 525 ” 500 ” 6,858 long tons In connection with exports, the following information quoted from a special report prepared by the United States Department of Commerce is of general interest: “Although shipments of copra and coconut oil from the Philip pine Republic in the first half of 1950 lagged 5% behind those of the comparable period of 1949, the substantial volume that has moved out in July-October has resulted in total shipments in the first 10 months of this year of 615,000 long tons, copra equivalent, or 12% more than exported a year earlier. Of this total, the United States has received 426,000 tons, copra equivalent, 69% of the total, as against 373,000 tons, 68%, in January-October, 1949. The additional 52,000 long tons consigned to the United States thus far this year is equivalent to 73,000,000 pounds of coconut oil.” The market for Philippine copra cake and meal on the Pacific Coast has improved slightly during the period under review to a point where $57 c. and f. per short ton is presently available, particularly in the northwest around Seattle and Portland. Europe still has no further interest in Philippine supplies due to the lack of dollars. summarizing the overall situation as to copra and ^coconut oil, it would appear that market probabilities are at present somewhat obscure and uncertain. Prices in general are higher than were anticipated for the period under review, caused primarily by the strength in United States domestic oils and fats. This latter situation, how ever, may not last for long, as at this particular time of the year these markets should show a relatively easier tendency. Conditions, though, are far from being normal anywhere, and consequently we feel that the unexpected can well December, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 461 continue to happen. Undoubtedly, for the time being anyway, prices for Philippine copra and coconut oil will be geared to and influenced largely by the market for domestic oils and fats in the United States, as also by any unforeseen turn of events one way or another in the inter national situation. Desiccated Coconut By Howard H. Curran Assistant Genera/ Manager Peter Paul Philippine Corporation THIS report covers the period from October 15 to No vember 15, 1950. During this period nut prices con tinued to rise. The labor front is quiet. Shipping statistics follow: Shippers Pounds Franklin Baker Co................................................... 4,974,400 Blue Bar Coconut Co.............................................. 1,688,860 Peter Paul Philippine Corp................................... 2,650,000 Red V Coconut Products....................................... 2,777,500 Sun-Ripe Coconut Products................................. 951,000 Standard Coconut Products................................. 345,500 Cooperative Coconut Products............................ 594,400 Tabacalera.................................................................. 518,000 Coconut Products of the Philippines Inc.......... 626,500 Luzon Desiccated Coconut Corp......................... 0 15,126,160 Note: Zamboanga Factory Production.......................... 721,740 lbs Luzon Factory Production.................................... 967,120 ” Total Blue Bar shipment....................................... 1,688,860 Peter Paul Production............................................ < 2,400,200 Standard Coconut Production............................. 240,800 Total Peter Paul Shipment................................... 2,650,000 ” HAVE YOU A NUT TO CRACK? Whatever your lubrica tion problem be, the SHELL LUBRICATION ENGINEER can solve it. Sugar By G. G. Gordon Secretary-Treasurer Philippine Sugar Association THIS review covers the period November 1 to November 30 inclusive. The month opened with a dull market, sellers for delivery November/December being unable to interest any buyers at the offering prices of 6.25/ and 6.20/. On -November 4 unfavorable developments in the Korean war situation were stated to be responsible for an advance of 12 to 14 points in future quotations. This however had no influence on the market for nearby sugar, buyers remain ing indifferent to offers of November/December arrival at 6.20/. Futures advanced a further 5 to 11 points on the 7th, but started to ease off on the 9th. On the 10th Cubas for late November shipment were taken at 6.20/ and the market was reported steady. On the 11th there were sellers of Cuban, Hawaiian, and Philippine sugar for Novefnber/ December arrival at 6.20/, also of Cubas for January ship ment at 6.10/ and for February shipment at 5.90/, but there were no buyers. It was reported on the 14th that refiners showed no interest in old crop offerings, but that new crop sugars guaranteed to arrive in January could probably be sold at 6/. On November 15 a sale of 2,000 tons Philippines for December/January shipment was sold to an operator at 5.81 y2. Futures continued to decline. New crop Cubas were not being offered. 22,000 tons Hawaiian sugar for November/December arrival was sold on the 18th at 6.18/, and small sales of Cubas for December shipment were made at the same price level. On the 21st there were sellers but no buyers for Hawaiian sugar December arrival at 6.18/. Philippine Please call for his serv ices by contacting your local Shell representa tive, or by writing to one of our offices in Manila, Cebu, Iloilo and Davao. SHELL INDUSTRIAL LUBRICANTS THE SHELL CO. OF P.l. LTD. 462 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1950 sugar afloat was offered at the same price, also 4,000 tons Philippines for December shipment were offered at 5.80/ but buyers were not interested. It was announced that the U. S. Department of Agri culture would hold hearings on the United States quota for 1951 on November 28, and the opinion was held that there would not be much market activity until the hearings had terminated. The market continued dull and there were sales of Philippines for December/January shipment at 5.70/. However on November 28, the futures quotations advanced substantially under the influence of the adverse war news, though the nearby situation was not affected at first. November closed on a much firmer note, there being sales of Philippines for early January arrival at 6.15/, while Cubas for late January shipment were taken at 6.05/. The futures market closed strong, and spot was quoted at 6.13/. The uncertainty caused by the darkening war situation is undoubtedly responsible for the sudden change in the market tendency. We give below the quotations on the New York Sugar Exchange as of November 30 for contract No. 6: January................................................................. 5.66 March.................................................................... 5.35 May........................................................................ 5.37 July........................................................................ 5.40 The world market contract No. 4 quotations closed as follows on November 30: January................................................................. 5.20 March.................................................................. 5.04 May........................................................................ 5.01 July........................................................................ 5.00 September............................................................ 5.01 WITH THIS AMAZING MARGIN “WONDER “WINDOW!” ... With beauty and. best features of other good typewriters rolled into one. See the R. C. Allen with the new Margin Window! The world market spot price on November 30 was 5.30/ f.o.b. Cuba as compared with 5.85/ on October 31. However it will be noted that the futures market has ad vanced substantially over last month’s closing quotations. •pvuRiNG the month negotiations were concluded with the -^Associated Steamship Lines which resulted in the conference freight rate on Philippine sugar for 1950/51 crop year being fixed at a total cost to shipper of $15.50. The actual freight rate is $15.10. but shippers are required to absorb that portion of the stevedoring charges at Atlantic ports which is in excess of the rate charged on Cuban sugar. This difference at present amounts to 40 cents U. S. per long ton. 'the actual outturn of the 1949/50 Philippine crop as A- per the mill records compiled by the Philippine Sugar Association was 684,603 short tons, as compared with the original estimate of 823,135 tons. The records show that during the year 467,040 short tons were exported to the United States which is less than 50% of the allotted quota. Local Market, (a) Domestic Sugar: The Govern ment promulgated an order fixing ceiling prices on domestic sugar sales as follows: AIR-CONDITIONED FOR COMFORT H'gMoa&* The Store of Quality 600 DASMABINAS TEL. 2-79-78 4 2-79-79 f ft “Music to Remember” over DZMB \ Ml 9:00 to 10:00 p.m. Mondays and 1M Thursdays. | “Phllco Fiesta" over DZBC 11:30 to 12:00 every Sunday noon. MEMBER The month opened with quotations on centrifugal sugar of 97° polarization at P15.50 and on washed sugar 99° polarization P 18.50. The month closed with a weaker tone evident with quotations from 50 cents to Pl.00 lower. The quota allocated for domestic consumption of 225,000 Producer’s Wholesale Retail Unit Price Price C'■eiling Price Refined Sugar........................ 100# P15.40 P16.50 P17.30 Washed Sugar 99°................. 63.25K 17.68 19.45 0.38/K 20.87 Washed Sugar 98°................. 63.25K 16.08 17.70 0.33/K 18.98 Golden Brown 97°................ 63.25K 15.00 16.50 0.30/K 17.70 below 98°............................. Golden Brown below 97° . . 63.25K 13.40 14.73 0.28/K 15.80 Refined Sugar packed in cellophane or cotton bags...................................... P0.05 additional 0.25,/K per kilo. December, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 463 short tons is considered more than ample for requirements and at present it would appear that prices may run below the ceilings established. (b) Export Sugar: Business has been confined to sugar for early shipment, and for prompt P14 has been paid. The quotations forward, being based on the New York future market, have been at lower levels, and little or no business has been done. Under present circumstances it would seem improbable that any commitments are likely for other than early shipment. Manila Hemp By Fred Guettinger Vice-President and General Manager Macleod and Company of Philippines THIS report covers the period from October 16 to November 15, 1950. During the greater part of the period the New York market was very quiet, with prices remaining at approximately the same level as at the opening. About ten days before the closing the market assumed a firmer tone, and in that short period, prices went up as much as one cent per pound. London was buy ing steadily throughout the period paying good prices, but not in large quantities. Business with Japan was small since the bulk of the quotas was sold by most exporters before mid-October. Prices in the Philippine provincial markets advanced from Pl to P2 for Davao grades and from P3 to P3.50 for non-Davao grades. New York Quotations: Per lb. c.i.f. New York October 15 November 15 Change Davao I........... 26-1 2 27-1/2 + 1 Davao JI........ 26-1 4 27-1/4 + 1 Davao G.................................. 25-1 4 26-1/4 + 1 Non-Davao I.......................... 26-1,8 26-7 8 +3/4 Non-Davao JI....................... 25-1/2 26-1 4 +3/4 Non-Davao G........................ 21—1/4 22 +3/4 Philippine Provincial Quotations: Per Picul Basis Loose Davao I..................................... Davao JI................................... Davao G..................................... October 15 November 15 P60.00 58.00 56.00 P62.00 60.00 57.00 Change + P2.00 + 2.00 + 1.00 Non-Davao I............................ Non-Davao JI......................... Non-Davao G.......................... 56.00 55.00 44.00 59.50 + 3.50 58.00 + 3.00 47.00 + 3.00 Production in October was 76,253 bales, and was only 341 bales less than the pressings of September, 1947, which so far is the month with the highest output in the post-war period. October Davao pressings were 38,986 bales—the highest since the end of the war—or 51% of the total. For the first 10 months of this year pressings totalled 630,594 bales, as compared with 428,800 bales for the same period last year,—an increase of 201,794 bales or 47%. The following are the comparative figures for balings for the first 10 months of 1947 through 1950: Balings — January-October inclusive Total Bales......................... 630,594 428,800 510,441 678,760 1950 1949 1948 1947 Davao................................... 313,883 179,925 170,693 308,015 Albay, Camariqes and Sorsogon.......................... 147,638 98,243 147,881 210,501 Leyte and Samar.............. 104,459 88,029 93,835 82,808 All Other Non-Davao... . 64,614 62,603 98,032 77,436 Not to build the most Exports during October were heavy—75,347 bales, with 42,906 bales or 57% going to the United States, 23,790 bales to the United Kingdom and Continent of Europe, 2,315 bales to Japan, and the rest to various other countries. Total exports for the first 10 months of this year were 590,482 bales, as compared with 383,749 for the same period last year,—an increase of 206,733 bales or 53%. pavao-KER & CO., 464 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1950 JAVA PACIFIC LINE Amsterdam/Rotterdam SILVER & JAVA PACIFIC LINES SILVER LINE, LTD. London, E. C. 2 KERR STEAMSHIP CO., INC 17 Battery Place, Nev York KERR STEAMSHIP CO.. IHC 350 California, S. !■'. FAST DEPENDABLE SERVICE PACIFIC NORTHWEST I CALIFORNIA PORTS DIRECT TO DIRECT TO MANILA ILOILO CEBU I MANILA ILOILO CEBU To CALCUTTA BOMBAY PERSIAN GULF PORTS CALCUTTA, COLOMBO, BOMBAY, PERSIAN GULF PORTS To MANILA P II I LIPP INES Direct to Los Angeles, San Francisco, Portland, Seattle, Vancouver ♦ * < PRINCE LINE, LTD. FROM U. S. ATLANTIC AND PACIFIC COAST PORTS TO MANILA FROM PHILIPPINES TO HALIFAX and U. S. ATLANTIC COAST PORTS For Particulars See: JAVA PACIFIC LINE, INC. 25 Broadway, New York TRANSPACIFIC TRANSPORTATION CO. 351 California Street, S. F. ROOSEVELT STEAMSHIP AGENCY, INC. AGENTS Tel. 2-96-41 3rd Floor, Trade & Commerce Bldg., Juan Luna Tel. 2-82-01 The following are the comparative figures for exports for the first 10 months of 1947 through 1950: Exports — January-October inclusive 1950 1949 1948 1947 United States and Ca nada .................................. 323,319 164,510 230,381 456,180 Japan.................................... 58,245 87,993 115,301 9,244 Continental Europe......... 109,074 79,624 91,782 98,791 United Kingdom............... 70,124 31,485 54,870 54,110 China.................................... 11,767 11,809 10,085 4,231 India..................................... 6,730 3,100 1,823 5,150 Korea................................... 3,100 — — — South Africa....................... 5,550 3,627 3,157 6,800 Australia and New Zea land................................... 1,826 1,601 42 4,148 All Other Countries......... 747 — 2,853 2,075 Total Bales......................... 590,482 383,749 510,294 640,729 Tobacco By Luis A. Pujalte Secre tary-Treas urer Manila Tobacco Association, Inc. THE market for tobacco throughout the world shows remarkable improvement compared to previous years. Various European countries, through huge E.C.A. grants and loans, have purchased tobacco very heavily, thus draining the stocks and forcing prices up for the new crops. The Western Tobacco Journal, issue of September 26, reported: “ECA Allocates Leaf Funds.—Washington, D.C. Allocations of $34,500,000 in Marshall Plan funds for the purchase of leaf tobacco in the United States by Western European nations, brought total allotments for this purpose to $349,500,000 since the foreign aid pro gram was established, the Economic Co-operation Administ:ation has announced.” With the rise in prices throughout the world, Philip pine tobacco is in a better position to compete with other tobaccos. Spain will purchase its usual share and perhaps more, while Indo-China has purchased heavier of the 1950 than of the 1949 crop. France, North Africa, Belgium, and Holland are also purchasing and will get a share of this crop. If more of the 1950 crop is sold abroad than has already been contracted for, many important factories which keep only small stocks and depend on wholesale dealers will find that prices will again (same as this year) be up by February or March, 1951. Imports By S. SCHMELKES Mercantile, Inc. LL figures are in kilos with the exception of those . for foodstuffs which are given in package units. Commodities October, 1950 October, 1949 Automotive (Total)...................... ........... 804,210 2,172,293 Automobiles................................ ........... 153,352 195,797 Auto Accessories..................................... 318 24,772 Auto Parts..................................... ......... 217,293 314,429 Bicycles...............•......................... ........... 14,689 54,435 Trucks........................................................ 9,970 5,357 Truck Chassis......................................... 147,071 654,069 Truck Parts.............................................. 27,301 69,267 Building Materials (Total)........... ......... 3,836,010 6,626,353 Board, Fibre................................. ......... 43,171 562,031 Cement........................................... ......... 30,746 85,671 Glass, Window............................. ......... 275,634 853,150 Gypsum.......................................... ......... 1,124,920 501,817 Chemicals (Total)........................... ......... 6,744,421 3,404,596 Caustic Soda............................................ 296,404 583,327 Explosives (Total)........................... ......... — 55,304 Firearms (Total).............................. ......... 2,972 17,441 Ammunition.................................. ......... 2,180 13,693 Hardware (Total)............................ ......... 4,468,063 4,213,779 December, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 465 Household (Total)...................................... Machinery (Total)..................................... Metals (Total).............................................. Petroleum Products (Total).................... Radios (Total).............................................. Rubber Goods (Total)............................... Beverages, Misc. Alcoholic...................... Foodstuffs, (Total Kilos)......................... Foodstuffs, Fresh (Total)......................... Apples........................................................ Oranges...................................................... Onions........................................................ Potatoes.................................................... Foodstuffs, Dry Packaged (Total)........ Foodstuffs, Canned (Total)..................... Sardines..................................................... Milk, Evaporated................................... Milk, Condensed.................................... Foodstuffs, Bulk (Total).......................... Rice............................................................ Wheat Flour............................................ Foodstuffs, Preserved (Total)................. Bottling, Misc. (Total)............................. Cleansing and Laundry (Total)............. Entertainment Equipment (Total). . . . Livestock-bulbs-seeds (Total)................. Medical (Total)........................................... Musical (Total)........................................... Office Equipment (Total)........................ Office Supplies (Total).............................. Paper (Total)............................................... Photographic (Total)................................. Raw Materials (Total).............................. Sporting Goods (Total)............................ Stationery (Total)...................................... Tobacco (Total).......................................... Chucheria (Total......................................... Clothing and Apparel (Total)................. Cosmetics (Total)....................................... Fabrics (Total)............................................ Jewelry (Total)............................................ Leather (Total)............................................ Textiles (Total)........................................... Twine (Total).............................................. Toys (Total)................................................. General Merchandise (Total).................. Non-Commercial Shipments (Total). . . Advertising Materials, etc. (Total). . . . 854,845 1,106,453 8,727,174 78,532,485 30,364 655,810 7,261 17,099,957 187,564 32,935 25,084 54,663 17,298 21,268 361,637 77,289 198,493 5,562 58,656 29,344 160 1,815,719 2,496,483 8,957,980 70,608,360 68,447 574,794 18,438 50,489,645 282,618 40,745 21,732 77,066 21,530 92,542 401,605 104,230 91,639 27,000 1,030,740 264,958 713,859 4,641 705,481 710,900 7,395 4,083 391,825 62,270 57,509 27,699 2,933,009 29,430 596,268 36,946 187,406 578,577 2,959,488 466,184 18,382 2,211 449,202 106,938 156,395 51,837 4,782,732 94,555 3,110,169 45,015 469,958 837,610 55,537 338,243 1'55,659 577,639 146 213,874 2,327,769 28,885 43,933 265,847 45,073 27,766 109,984 510,316 113,484 1,230,541 874 199,761 4,018,942 42,733 233,556 618,892 56,971 78,454 Food Products By C. G. Herdman Director, Trading Division, Marsman 0r> Co., Inc. THERE is very little new to report with regard to food products in this market. Conditions remain in trinsically the same as described in reports in previous months. Import licenses, if issued, are only issued after very considerable delay. In many cases the delays are so great that importers, after finally securing licenses, are only able to secure the necessary merchandise with considerable difficulty and' at increased prices and for delayed shipment. Many essential goods are npw in very short supply in the United States due to government buying there. At the same time there is difficulty in securing steamer space for prompt shipment. Many vessels have been withdrawn from the trans-Pacific service and those running are carrying large quantities of government ship ments for Japan and Korea, the space available for ordinary commercial shipments being very limited. nr<HE flour shortage in the Philippines has become acute. There are very few bakeries even in Manila which are able to supply the demand of their regular customers because of their inability to secure anywhere near their normal needs of flour. The situation is much worse in the outlying areas. This in spite of the purchases which have been made by PRISCO. Late in October the Manila Court of First Instance ordered that PRISCO allot flour imports to the so-called “old importers” and it was at first stated that PRISCO IMPORTERS EXPORTERS Keep Your Costs Down — Use Pasig River Bodegas GENERAL BONDED WATERFRONT WAREHOUSES Accessible by WATER or LAND Low Storage and Insurance Rates Lighterage Service 145 M. de Binondo Tel. 2-63-10 VOw? take... BOIE-WATSON AL MULTIPLE VITAMINS AND MINERAL CAPSULES Manufactured in the United States and Repacked by BOIE-WATSONAL LABORATORIES Multiple Vitamins • Supply daily vitamin requirements to the average diet. Cod Liver Oil • Specific against rickets and the resulting bone malformation. Liver, Iron, and Vitamin B-Complex • Specific against simple anemia and corresponding blood deficiencies. At all Leading Drug Stores throughout the Islands Philippine American Drug Co. (BOTICA BOIE) On the Escolta, Manila CEBU • ILOILO • LEGASPI • DAVAO 466 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1950 FERTILIZERS SULPHATE OF AMMONIA SUPERPHOSPHATES SULPHATE OF POTASH MENZI & CO., INC. Iloilo MANILA Cebu J. M. MENZI Bldg. Corner Reina Regente & Soler Streets Tel. 2-79-29 LOWER WITH Cyale!) would conform to this decision of the Court. Later, PRISCO decided to appeal the case to a higher court, which has been done. It is sincerely to be hoped that decision on the appeal will be rendered promptly so that a definite policy can be adopted and constructive plans made to arrange for the necessary imports of this essential food. In the meantime, PRISCO placed orders late October and early November for approximately 700,000 bags of flour. Issuance of the necessary letters of credit to cover these purchases was greatly delayed and they did not reach the mills concerned until November 15 and later, with the result that flour ordered at that time could not be shipped before late November and the first half of De cember due to lack of available steamer space, which means that the flour will only be arriving in the Philippines in the second half of December and during January. The present situation, therefore, cannot be alleviated now until late January. Flour arriving against these purchases will enter into consumption just as fast as received. PRISCO now contemplates ordering some 2,000,000 bags of flour for shipment at the earliest possible date, and this should greatly improve the situation. However, only a small portion of that flour could possibly be shipped during December. The major portion could not be shipped before January,—again due to lack of available steamer space. It is apparent that it will be the end of January at least before sufficient supplies of flour will be on hand in the Philippines to take care of anywhere near normal consumption. '-pHE canned milk situation has improved somewhat in that fair quantities have recently arrived and larger quantities are afloat. PRISCO has arranged with the Import Control Administration to release ex-quota licenses to various importers for considerable quantities to be shipped promptly, which quantities will be in addition to the regular monthly allotments, and it would seem that no serious shortage of canned milk is now to be anticipated. In the meantime, however, information from the Pacific Coast is that the United States Government has been buying canned milk in very considerable quantities for the use of the Armed Forces, that there is a decided shortage of that product, and that suppliers are going to have great difficulty in making prompt shipments. Costs and selling prices of evaporated milk have advanced in the United States and will undoubtedly be reflected shortly in the importations here. /^anned meats continue to be in very short supply and '^'import licenses are being granted for extremely small quantities. The Armed Forces of the Philippines recently requested bids for the purchase of 6,000 cases of corned beef, but was able to secure only 1,000 cases. all other varieties of imported foodstuffs, stocks are '^'extremely short, and can only be purchased at blackSPUR-GEARED HOISTS If your lifting methods are costing you ’'muscle money”—those needless costs that go with time stealing, effort-consuming hoisting operations, inves tigate the Yale Spur Geared Hoist. This star performer of all hand hoists is a modern lifting tool that saves you money. Ask for complete information.' fo) Hook and trolley types. SWO, CULBERTSON & FRITZ, INC. MEMBER—MANILA STOCK EXCHANGE THE EDWARD J. NELL COMPANY 1450 Arlegui Street Tel. 3-21-21 701 S. J. WILSON BLDG. 143 JUAN LUNA TELS. | 2-74-55 I 2-80-53 December, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 467 market prices. There is every indication that this will become worse month by month. Unfortunately, locally produced substitutes are far from sufficient to satisfy the requirements. The prices of such substitutes are steadily increasing and in many cases are as high or higher than those of the imported products formerly. Textiles By L. W. Wirth General Manager, Neuss, Hesslein Co., Inc. DURING October, arrivals from the United States included about 4,300 packages of cotton piece goods and about 2,500 packages of rayon piece goods, or approximately double the arrivals during September. Arrivals of textiles, including made-up goods, from Japan amounted to 700 packages, from China about 3,400 packages, and from Europe 560 packages, including jute and sugar-bags. There still continues to be a shortage of the most impor tant staple items of cotton textiles, as the Import Control Office released only a very small number of licenses to old importers against their September/October quotas. Many of the old established importers have complained with respect to the undue delay in the issuance of licenses covering orders which they placed in anticipation of their expected licenses for the third and fourth quarters of 1950, conservatively calculated on the basis of the various per centage cuts applied to the different categories as provided in the Import Control Law. All of these pending orders cover controlled items and old established importers cannot understand why licen-. ses have not as yet been granted to them. They are very much concerned over recent statements in the press that the ICA is short of dollars, which dollars should be available to cover these importations in accordance with the pro visions of the Import Control Act. It is common knowledge that during the past few months numerous licenses have been granted to new importers, and this may have been done at the expense of the old established importers. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso &1 Janda ON November 10, 1950, an interesting decision (Wise . vs. Prisco, Civil case No. 12262) was rendered by Judge Castelo of the Court of First Instance. This is one of the cases involving allocation of flour quotas which PRATRA attempted to allocate so as to eliminate the old. FOR BETTER SERVICE—Call 3-29-05 ALLIED BROKERAGE (IIRI'IIRATUIN Marsman Building Port Area Documents may be delivered to our represen tative in the branch offices of MACKAY RADIO $ TELEGRAPH COMPANY, Plaza Moraga and Trade <J Commerce Building. Individual attention and competent supervision given Io your customs brokerage requirements. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING Your Office Forms for 1951 —See Us Now! WE MAKE THEM UP IN SIZES AND STYLES TO MEET ALL REQUIREMENTS MOTOR SERVICE CO, If. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area — Tel. 3-36-21 Desk Calendar Fillers Especially Ruled Books & Pads Columnar Ruled Pads Order Books Loose-Leaf ledgers Memo Sheets Business Cards Price Books Letterheads Binders Also the Famous GOES STOCK CERTIFICATES NO JOB TOO LARGE—NO ORDER TOO SMALL Printing • Social Engraving • Bookbinding a Rubber Stamps McCullough printing co. —Printing Headquarters Since 1899— (A Division of Philippine Education Co., Inc.) 1104 CASTILLEJOS, QUIAPQ, MANILA TEL. 3-24-70 468 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1950 ★ IJZII1 STEVEDORI Nfi COMPANY. IW. Manila ★ .......... DEPENDABLE IN WAR OR PEACE CATERPILLAR “Caterpillar” diesel engines, tractors, motor graders, and earthmoving equipment played a great role during th‘e last war. Their out standing records stem from a rugged simpli city of design that leaves little chance of things going wrong. During peace-time, they are equally dependable because back of them stands a factory of high reputation for highquality products. ■—KOPPEL—(PHILIPPINES) BOSTON A T3RD STREETS NC PORT AREA • TEL. 3-37-531 Branch*!: l tUcolod * Hollo * Cebu * Divio • Colibilo * Zimboinji k importers which were not Filipino firms. Section 15 of the Import Control Law (R. A. 426) gives to PRATRA (now PRISCO) “exclusive power and authority to determine and regulate the allocation of wheat flour, among importers.” Judge Castelo held that PRISCO was subject to the other provisions of the law and that Section 12 relating to allocation to old importers, and Section 14 relating to requirements for new importers, were binding on PRATRA. The Court held that if PRATRA was given absolute power and discretion in the matter, then this was an illegal delega tion of legislative power and, therefore, null and void; that a construction giving PRATRA the power and authority to determine and grant wheat flour allocations subject to the requirements of Sections 12 and 14 of the Act would render it valid and that the courts should adopt the con struction which would make it valid. The Judge then said: “WHEREFORE, the Court is of the opinion and so holds: “1. That the provisions of Sections 12 and 14, of Republic Act 426 are applicable to the defendant Price Stabilization Corporation, otherwise known as PRISCO; “2. That under the provisions of Sections 12 and 14 of Republic Act 426, plaintiff is entitled to a yearly quota allocation of 96,016 bags of wheat flour, or 7,918 bags per month, and the defendant PRISCO is hereby ordered to give plaintiff such monthly quota allocation, com mencing the month of August, 1950; “3. That ‘new importers’, as defined in Section 1 of Republic Act 426, are not entitled to wheat flour quota allocation unless they come and qualify under the requirements of Section 14 of the Act; and “4. The defendant PRISCO is hereby ordered to stop or dis continue the wheat flour quota allocations given by its predecessor, PRATRA, to new importers who did not come or qualify under the provisions of Section 14 of Republic Act 426, and that the wheat flour allocated to the said unqualified importers be allocated to the ‘old importers’, as defined in Section 1 of the Act, and as provided in Section 14 of the Act.” In the Chinese Flour Importers case (Civil Case No. 12017, Nov. 9, 1950) the same judge held that PRATRA and its successor, PRISCO, were bound by the provisions of Act 426, which prescribes the amount that shall be allocated to old and new importers. The Court further said that excluding alien importers and reducing to nil their allocations was “a confiscatory action amounting to de privation of property without due process.” The Court also stated that— “This Court cannot escape notice of the public criticisms against the arbitrary and dictatorial methods of the PRATRA in the allocation of the wheat flour quota, totally disregarding the law and ignoring the generally accepted business precepts. In a memorandum submitted to His Excellency, the President of the Philippines, the Philippine Association, a liaison body between the Government and the business community, made a frank exposition of the inequitable policies of the PRATRA which not only result in confusion and prejudice to the public at large but also in undue discrimination which bring discourage ment to established and enterprising business establishments, both Philippine and alien.” The Court also referred to the Bell Report and quoted therefrom the following: “The experience of PRATRA in connection with the import of flour shows how easily such powers can be used in an arbitrary manner and contrary to the interests of the consuming public.” Attempts are being made by PRISCO and the Philip pine Flour Institute to set aside and make ineffective these decisions. PRISCO has appealed, and the Philip pine Flour Institute and the New Flour Importers Asso ciation have filed petitions for certiorari. AGENTS BROKERS CHARTERERS TELEPHONES 3-34-20 3-34-29 American Steamship Agencies, Inc. Manila, Shanghai. Tokyo, Yokohama Cable Address: “AMERSHIP” 203 Myers Bldg. Port Area Manila December, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 469 Philippine Safety Council By Frank S. Tenny Executive Director SAFETY activities, both public and industrial, have moved at a good pace in recent weeks. The efforts of the Safety Council to create a so-called “National Safety Movement” through coordinated and intensified safety activity of all kinds met with approval of almost all of the groups which were invited to join. A meeting is scheduled for this month to which representatives of about 20 organizations will be invited. The purpose is to formulate a program for 1951 which will result in improved safety conditions throughout the country, and to create a basis for annual national safety awards. Several industrial and commercial firms have joined the Council as members in the past few days. Some of them are: Otis Elevator Co., Manila Underwriters, Inc., Motor Service Co., Malayan Insurance Co., Philippine Refining Co., American Foreign Insurance Assn., and Domestic Insurance Co. The number of insurance firms joining has been notable, with a present total of one dozen members now on the rolls. New individual members are Mr. Frederic H. Stevens and Peter C. Richards. The Taxicab Inspection Service, an activity working in close coordination with the Council, has been successful in reducing various violations committed by taxi drivers. This includes instances of reckless driving and other serious traffic violations, as well as “flag-up” and other practices which victimize the public. Companies pioneering this important service are Golden, Malate, Yellow, B.M.C., Redi, and Aero taxicab firms. The Bureau of Industrial Safety has informed the Council of the results of its testing 1,500 vehicles (other than private types) for mechanical safety factors. The surprising total of 53% was found to possess defects of sufficient degree to fail the examination. The Council will conduct liaison with the Motor Vehicles Office and the Public Service Commission on this matter. In spite of certain delays and obstacles, the Provincial Bus Terminals Board, the Mayor’s Traffic Committee, the Fire Prevention Board, the Advisory Safety Council to the Secretary of Labor, and the PNRC National Com mittee on Safety Services are all meeting and functioning this month. These groups are expected to actively parti cipate in the national safety movement plan. Annual “Awards of Merit” were recently presented to outstanding safety winners by the Council. They were: National Bureau of Investigation (for police training); Philippine National Red Cross (for first aid and water safety); Ayala y Cia. (for private guard system); Manila Fire Department (for general excellence); the Glass and Polo Plants of San Miguel Brewery (for industrial safety); The Pangasinan Transportation Co. (for transportation safety); and the Manila Fire Insurance Assn.* (for civic safety activity). Four drivers of the Philippine Match Co. Ltd. were also presented with driver safety badges. The January report in the Journal will carry a sum mary of the current campaign in connection with testing of both vehicles and drivers for 1951. The Motor Vehicles Office is cooperating with the Council in this important matter. CHRYSLER CORPORATION AIRTE.MP packaged Air Conditioning and Refrigeration Exclusive Distributors: W. A. CHITTICK & CO., INC. • Salts and Ser rice 31 Romero Salas, Manila SMITH-CORONA PORTABLE One glance at the new SMITH-CORONA. . . and you're convinced that it’s the most beautiful and sturdy portable typewriter you've ever laid eyes on! 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Box 928 Telephones 2-81-72 & 2-81-76 Private Exchange connecting all departments 470 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1950 LBC WAREHOUSING IS CHEAPER ¥ Why maintain a ware house, pay rent, person nel and all the attendant operating expenses, when Luzon Brokerage Co. offers General, Bonded and Field Warehousing at reasonable cost? ¥ Consult LBC. We may solve your warehousing problem. Telephone 3-34-31 ¥ The “LET YOUR HAIR DOWN” WE are obliged to the writer of the following letter, as it called attention to an editorial error we must correct. He asked us to withhold his name: “Dear Mr. Editor: “J have been giving your very excellent income tax editorial (October Journal) a good deal of study. “In the third paragraph from the last, you speak of the new Act (Rep. Act 590) and state that (with reference to the lower ranges) “the total tax per person whose in come lie within this range has been increased but slightly.” “As my conclusions differ from yours, I am wondering who is right. For instance: Men and wife with four children Income F7.000 Old law New law Income............... P7.000 Income.......... P7.000 Exemption........ 3.S00 Exemption... 5,400 Taxable income 3,500 Taxable 1,600 5% 3% of P2.000 P 60 6% of 1,500 90 P80.00 Tax........ P 150 “Is it not a fact that under the above typical illustration, the tax under the new law is little more than'half of the tax under the old law?—Sincerely yours, etc.” The editor’s reply follows: “Dear Mr. . . . "Thank you very much for your letter of November 18. Of course, you are right, and I am guilty of carelessness in saying in that editorial that the total individual income tax of persons whose income lies within the range of P2.000 to P10.000 a year has been increased but slightly because of the new income tax rates. The fact is, as you point out, that it has been lowered for such persons. “As a matter of fact, I did not stop to figure the thing out for the lower incomes and was fooled by the increase in the rates and did not give enough weight to the increases in the exemptions. There is a personal psycho logy behind that inasmuch as a family man I have always thought the exemptions for wife and children were too low. "On reading your letter and noting your example, I thought, well, he cites the case of a man with a pretty large family,—4 chil dren, but then I did some figuring and found that a man with the same income of P 7,000, and with a wife will pay only P260.00 under the new rates ps against P315.00 under the former rates; such a man with a wife and one child will pay P212.00 as against P270.00 before; with a wife and two children, P164.00 as against P205.00 before. "If we take a man of lower income, say P4.000, with a wife and child, he paid P60.00 under the old rates and will pay only P20.00 under the new. “All this does not affect the main point of the editorial which was that most Amer icans and Europeans, who have already been carrying a heavy and very dispropor tionate share of the income tax burden, have incomes within the ranges which are espe cially hard hit by the new rates. "The fact which you brought out gives even greater point to the editorial conclu sion: ‘It is impossible to avoid the conclu■ - - ------------ Column sion that the lawmakers sought to save the group which included the majority of govern ment personnel from any further burden, while the alien business and professional men are dealt another blow.” “You have marked your letter ‘confiden tial’, but I should like to publish the sub stance of it, without your name, and together with this reply. Would you have any objec tion to that? "Very sincerely yours, etc. “P.S.—If the Bell Mission’s recommenda tions as to income tax rates are put into effect, the whole picture will change again.” note from Miss Helen Burke, Di rector of the Manila office of the U.S. Bureau of Employees’ Compen sation : “You will be interested to know that three different people have been in my office this morning asking for information and forms for disability benefits, each one saying that he knew nothing about his rights under Section 5 (f) of the War Claims Act of 1948 until reading the November American Cham ber of Commerce Journal. . . .” The following is an expression in French on the subject of the Journal in a letter from the Director of Econ omic Studies of the National InsPHOTOSTAT COPIES o i< Legal documents Accounting papers Tax Receipts Immigration Certificates Plans—Blueprints Personal Papers and Anything Written... COPYCAT EL HOGAR BUILDING Phone 2-67-50 & 2-70-79 For Messengers Open from 7:00 A.M. to 7:00 P.M. December, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 471 titute of Statistics and Economic Studies, Paris: "Cette documentation m’intSresse beaucoup, et je vous remercie tris sincdrement de vos envois qui nous sont trds precieux. et qui, je i’espire, pourront dtre poursuivis A l’avenir Igalement.. An American old-timer in one of the provinces wrote us: “I regret the delay in my remittance. However, to make up for lost time, you will please find inclosed a money order for P10, just so I won’t forget next October. “World conditions look very bad. . . and the longer we wait, the worse it will look. ‘Teddy’ Roosevelt would long ago have said, ‘ I give you 48 hours to take all your Chinese communist troops out of Korea, or take the consequences.’ But what can you expect these days? This generation does not know ‘Teddy’. "I am only 76 years of age, with 60 years’ business experience, and if I can be of any service to our Country, please advise me. "With best wishes and the Season’s greet ings to the officers and members of the Amer ican Chamber of Commerce, I am, Yours faithfully, "Henry Strauss." Double Checking Answers .V. Hfafes Money What does It cost... to doable check needlessly the an swers to your figure work problems? Any dupll< atlon of work wastes time and operator effort. Due to the ultramatio perfoimance of this new calcula tor . . . you make worthwhile savings ..no double check ing, no reflgnrlng for proof. Learn... that when you FRIDENIZE you ECONOMIZE, FRIDEH sMimBEurOroi TRADE AND COMMERCE BLDG MANILA Tel. 2-69-71 Several officers of the Chamber received letters from members of the Honolulu Chamber of Commerce delegation which visited the Philip pines last month. One of these read: “Those of us who were fortunate enough to have visited Manila recently as a part of this Chamber’s 100th anniversary good will tour, will not soon forget the marvelous hospitality which you and the American Chamber of Commerce of the Philippines extended to us. Your courtesy in meeting us at the airport and being with us through out our brief stay was most appreciated. We hope that you will express to all of your members our thanks for these courtesies. “We were indeed honored by the luncheon with your directors and the directors of the other Manila Chambers on Monday, Nov ember 20, and by the gifts presented to our members. It was indeed a pleasure also to have the opportunity to get to know Mrs. Marie Willimont, your extremely capable Executive Vice-President. “In spite of the fact that our time in Manila was limited and our itinerary full, we want you to know that we did not leave Manila without a clear picture of the many serious problems now facing American business in the Philippines. We hope that this awareness, limited as it may be, can be of assistance to you and your members. We wish that you would give us an oppor tunity to be helpful to your program by advising us from time to time of actions which we might take to strengthen your position in relation to some of these problems. "Sincerely, "Urban E. Wild, President "Leonard Withington, Trade Secretary.” From a former resident of the Philippines who now lives in a town in the United States South, we received the following interesting letter of comparison between condi tions there and here: "I don’t want to write any article which might compare life in the Philippines un favorably with life here because it might hurt my Filipino friends who have plenty of amor propio. But for your information I am glad to state that rent, light and water, groceries, meat and vegetables, and gasoline are much cheaper here. We do miss our faithful and competent Filipino servants, as it is next to impossible to obtain a compe tent servant in the United States where servant’s wages are high and house work is looked down upon. The modern American woman does her own work and the modern American kitchen is a marvel of convenience with its multitude of appliances. Even laundry is much cheaper here than in the Philippines. “Everywhere in the United States the roads are very good, so that motor cars and tires last longer than in the Philippines and motoring is a pleasure; nor are you subject to being shot at, as is the case going to Tagaytay or Cavite. In this state, even the unimportant towns and villages are con nected by excellent, paved roads. "We decided to settle in . . . because the climate is good, the scenery is fine, and we have friends in this little town. It is an old town, originally settled by Huguenots. The people living here are mostly of British, or rather Scotch, Irish, and English stock, with some French, and as there has been very little immigration, the purity of the stock has been preserved. The town is small, 5,500 people, with 35% negro population. There are large cotton mills and rayon mills C. F. SHARP & COMPANY, INC. STEAMSHIP OPERATORS—AGENTS SHIP BROKERS GENERAL ORIENTAL AGENTS: WATERMAN STEAMSHIP CORPORATION Mobile, Alabama THE IVARAN LINES—FAR EAST SERVICE (Holter-Sorensen—Oslo, Norway) PACIFIC ORIENT EXPRESS LINE (DITLEV-SIMONSEN LINES) Norway (TRANSATLANTIC STEAMSHIP CO., LTD.) GENERAL STEAMSHIP CORPORATION San Francisco SIMPSON, SPENCE & YOUNG New York V. MULLER Kobenhavn, Denmark Head Office: 5TH FL., INSULAR LIFE BLDG. MANILA, PHILIPPINES TEL. 2-87-29 2-96-17 Branch Offices: SAN FRANCISCO—SHANGHAI SINGAPORE—PENANG TOKYO-YOKOHAMA NAGOYA—OSAKA SHIMIZU-FUSAN (KOREA) Cable Address: “SUGARCRAFT" all offices EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines BARBER-FERN LINE Service to U.S. Atlantic Via Straits, Suez, Mediterranean FERN LINE To and From North Atlantic Ports Gulf Ports—Philippines EVERETT ORIENT LINE Serving the Orient Philippines to China, Japan, Korea, Straits and India Ports PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarifias St., Manila Tel. 2-98-46 (Priv. Exch. All Lines) 472 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1950 in the town and in the neighborhood. The farming community in the countryside raises cotton, corn, tobacco, and cattle, in the order named, and the people arc prosperous. The town has all the modern facilities such as electricity, water, telephone, a sewer system, etc. There is an airfield within some miles where mail and passenger planes call many times daily. Scenically, this town is built on rolling hills, and all the creeks are lined with beautiful shade-trees. ‘‘What struck us first in this state was the cleanliness of the cities and villages, the excellence of the roads, and the courtesy and kindness of the people. The people seem to have more leisure than people have in the North, but it is a fact that they are sincerely cordial and helpful. It is a great pleasure to live among them. The Negros are very well treated, indeed, and while We join with everyone in the festive spirit which is the essence of the Yuletide season—a spirit of goodwill consecrated to the universal ideal of peace, harmony and .understanding in the hearts of all men everywhere. GOODYEAR many of them arc shiftless, they look to the ‘white folks’ to help them and they do receive such assistance. “Politically, this state is always voting the democratic ticket, but it does not admire the present Administration and showed this plainly in the election. The Governor. . . is a good man, but will be succeeded by an even better one. . . “We are deeply concerned about condi tions in the Philippines; they seem to go from bad to worse, and it seems there is not much hope unless the Filipinos will give themselves a good government. . .” 't'he Historical Committee of the American Association of the Philippines, which committee was created during the year on the ini tiative of U. S. Ambassador Myron M. Cowen, with a membership ap pointed in part by him and in part by the American Association, has made a good beginning in the build ing up of a museum and library devoted to Philippine relations with the Occident, with special emphasis on relations with America. The historical collection of books, documents, manuscripts, photo graphs, paintings, moving-picture films, coins, medals, seals, flags, weapons, etc. is to be housed in the American Embassy and will be opened to public view as soon as the present new construction work on the Em bassy is completed. Series of lectures on historical subjects will also be given by various authorities. Ambassador Cowen is Honorary Chairman; J. A. Thomas, Chairman; Chester Leaber, Treasurer; and James L. Meader, Executive Secretary; the other members are Messrs. H. Otley Beyer, Allan O’Gorman, A.V.H. Hartendorp, H. P. L. Jollye, Charles Par sons, Gilbert Perez, Carson Taylor, Robert Trent, Paul Verzosa, and Ford Wilkins. Mr. W. G. Solheim, formerly connected with the Museum of Anthropology of the University of California, Berkeley, was appointed librarian and curator some months ago. Donations of funds and material are being received, among the donors being various departments and offices of the United States Government, companies and corporations including the American Express Co., Amer ican Foreign Insurance Assoc., American International Underwriters, Atlantic, Gulf and Pacific Co., Ault & Wiborg, Bank of America, Breed, Abbot & Morgan, Caltex (Phil.) Inc., Coca Cola Export Co., Connell Brothers Co. (Phil.), El Dorado Trading Co., Everett Steamship Corp., Firestone Tire & Rubber Co., Getz Bros. 8s Co., Insular Lumber Co., International Harvester Co., Liddell & Co., Inc., Liggett & Myers To bacco Corp., Luzon Stevedoring Co., Inc., Manila Cordage Co., Manila Electric Co., National City Bank of New York, Peter Paul Philippines, Philippine American Life Insurance Co., Philippine Education Co., Inc., Philippine Manufacturing Co., Philip pine Packing Corp., Philippine Refining Co., Inc., C. F. Sharp & Co., William J. Shaw Estate, A. Soriano y Cia., Standard Vacuum Oil Co., W. Sy Cip 6s Co., the Tabacalera, United States Lines, and White Page 6s Co., also a number of individuals like Lawrence Wilson, E. D. Hester, Frederic H. Stevens, Gilbert S. Perez, Mrs. Carmen Gil, Juan R. Tanada, James P. Watson, and others. Those who have material of his torical value in their possession and who would like to see it safeguarded and possibly put to good use, are invited to contact Mr. Solheim at the American Embassy. December, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 473 Index, Vol. XXVI (Continued from page 474) The Business View Office of the President of the Philippines, Official Source, pp. 18, 64, 102, 146, 221, 263, 297, 333, 367, 412, 451. Banking and Finance, R. E. Russell, pp. 19, 66, 103, 147, 182, 222, 264, 298; I. G. Spering, pp. 334, 374; C. R. Hutchison, pp. 415, 453. Stock and Commodity Markets, A. C. Hall, pp.*19, 67. Stock Market, R. Ewing, pp. 104, 147; A. C. Hall, pp. 183, 222, 265; R. Ewing, pp. 298, 334, 375, 415, 453. Credit, W. J. Nichols, pp. 20, 67, 104, 148, 223; C. W. Muilenburg, pp. 265, 299, 335, 375, 416, 453. Real Estate, C. M. Hoskins, pp. 21, 69, 104, 148, 184; A. Varias, pp. 223, 266, 299, 335, 376, 416, 454. Construction, H. H. Keys, p. 224. Electric Power Production, J. F. Cotton, pp. 21, 68, 104, 149, 184, 223, 266, 299, 336, 376, 417, 454. Port of Manila, E. W. Schedler, pp. 105, 184, 263; R. L. Moore, pp. 417, 455. Ocean Shipping (Exports), F. M. Gispert, pp. 21, 68, 106, 149, 184, 224, 266, 300, 336, 376, 417, 455. Inter-Island Shipping, D. M. Cameron, p. 106. Air Transportation, H. E. Umber, pp. 22, 68. Land Transportation (Bus Lines), L. G. James, p. 225 Mines, C. A. Mitke, pp. 22, 69, 107, 149, 185, 225, 266, 301; N. N. Lim, pp. 376, 418, 456. Lumber, L. J. Reyes, pp. 23, 69,106,150, 184, 226,267,300,336,419,458. Copra and Coconut Oil, M. Igual and K. B. Day, pp. 23, 71, 108, 150; H. D. Hellis, pp. 187, 227, 268, 303, 337, 378, 419, 458. Desiccated Coconut, H. R. Hick, pp. 24, 71, 110, 151, 189, 228, 268, 305; H. H. Curran, pp. 339, 380, 421, 461. Manila Hemp, F. Guettinger, pp. 24, 72, 113, 152, 190, 230, 270, 307; H. Robertson, pp. 341, 380, 422; F. Guettinger, p.r463. Sugar, G. G. Gordon, pp. 25, 72, 112, 153, 191, 229, 269, 305, 340, 381, 423, 461. Tobacco, L. A. Pujalte, pp. 26, 73, 115, 154, 192, 232, 271, 308, 342, 382, 424, 464. Imports, L. S. Kraemer, pp. 27, 73, 115, 154, 193; S. Schmelkes, pp. 232, 272, 308, 343, 383, 424, 464. Food Products, C. G. Herdman, p. 28; Af. Hearn, p. 75; C. G. Herdman, pp. 119, 158, 194, 236, 274, 310, 346, 385, 425, 465. Automobiles and Trucks, K. E. Gay, pp. 30, 76, 117, 156, 196 234, 273, 309, 345, 384. Textiles, J. Traynor, p. 31; L. W. Wirth, pp. 77, 121, 159, 197, 237, 275, 312, 387, 427, 467. Legislation, Executive Orders, Court Decisions, E. E. Selph, pp 31, 80, 122, 160, 198, 238, 276, 313, 347, 388, 428, 467. Philippine Safety Council, F. S. Tenny, pp. 82, 123, 161, 239, 278, 315, 348, 390, 469. Other Chambers of Commerce, Philippine Chinese General Chamber of Commerce, p'. 125. Historical Committee, American Association of the Philippines, p. 472. U. S. War Claims Commission, p. 429. U. S. Bureau of Employees’ Compensation, p. 430. Cost of Living Index, 1946-1950, Bureau of the Census and Statistics, pp. 40, 83, 127, 163, 199, 240, 279, 316, 351, 391, 432, 473. The “Let Your Hair Down” Column, pp. 41, 84, 128, 164, 200, 241, 280, 317, 352, 392, 433, 470. COST OF LIVING INDEX OF WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1946 TO 1949 (1941 = 100) Bureau of the Census and Statistics Manila 1946 All Food (59.15) House Rent (8.43) Cloth ing (0.62) Fuel, Light and Water (13.94) Miscel laneous (17.86) January.......... 603.4 759.2 236.4 984. C1 363.8 434.8 .1657 February........ 547.2 656.3 236.4 940.31 369.5 460.5 .1827 March............. 525.9 631.0 236.4 940.1 340.4 445.2 .1902 April................ 556.2 684.1 236.4 910.3i 345.5 435.9 .1798 May................. 545.1 675.6 236.4 762.5i 342.3 409.6 .1835 June................. 538.7 666.4 236.4 737.9I 343.3 404.2 .1856 July................. 552.7 704.3 236.4 598.91 341.3 364.6 .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... 461.9 570.8 236.4 371.9i 344.7 302.1 .2165 19472 (100.00) (63.43) (11.96) (2.04) (7.73) (14.84) January........ . 426.2 368.2 453.9 381.9 326.2 282.5 .2346 February.... . 418.5 454.9 453.9 356.2 344.8 281.4 .2389 March........... . 406.8 440.1 453.9 295.2 334.7 279.4 .2458 April............. . 387.7 413.3 543.9 269.2 328.9 271.6 .2579 May.............. . 381.0 404.4 453.9 250.9 325.4 269.4 .2625 June.............. . 386.3 414.4 453.9 236.8 316.6 268.6 .2589 July............... . 393.4 426.8 453.9 217.7 309.3 269.9 .2542 August......... . 387.4 419.8 453.9 210.2 292.0 269.1 .2581 September. . . 368.9 392.1 453.9 216.4 283.3 266.8 .2711 October........ . 358.7 376.3 453.9 212.7 280.5 267.7 .2788 November... . 358.4 376.3 453.9 215.1 280.5 265.3 .2790 December... . 371.9 395.8 453.9 219.1 298.2 262.9 .2689 1948 January........ . 391.2 428.3 453.9 224.5 304.6 249.9 .2556 February.... . 368.5 392.0 453.9 223.8 301.1 254.4 .2714 March........... . 349.4 361.0 453.9 214.6 308.1 255.9 .2862 April............. . 356.1 374.1 453.9 209.4 289.7 254.8 .2808 May.............. . 349.8 360.2 453.9 214.2 289.7 271.6 .2859 June.............. . 354.3 370.4 453.9 205.2 283.2 262.9 .2823 July............... . 356.4 374.2 453.9 201.3 281.6 262.4 .2806 August......... . 363.6 385.7 453.9 199.8 281.6 261.7 .2751 September. . . 370.6 397.2 453.9 199.2 279.6 260.6 .2698 October........ . 374.9 404.0 453.9 204.8 283.2 257.9 .2668 November... . 368.7 394.4 453.9 202.0 281.6 258.7 .2712 December... . 365.9 389.9 453.9 202.0 282.4 258.9 .2732 1949 January........ . 363.8 386.8 453.9 202.0 279.0 258.9 .2750 February.... . 343.8 355.5 453.9 203.0 277.5 258.9 .2909 March........... . 346.3 358.2 453.9 202.0 276.3 258.5 .2896 April............. . 348.7 362.6 453.9 197.6 287.5 257.1 .2868 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 1 Average number of persons in a family = 4.9 members. .... f Revised in accordance with the new survey on the “Levels of Living, in Manila’’ by Department of Labor and the Bureau of the Census and Statistics conducted in December, 1946. January .... . 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 March........... . 339.0 341.4 453.9 236.7 257.8 292.6 .2950 April............... 331.8 328.6 453.9 237.7 252.9 301.2 .3015 May............... . 320.2 308.6 453.9 244.7 249.7 309.1 .3123 June.............. . 323.1 310.9 453.9 243.5 249.7 319.1 .3095 July................ . 332.0 322.4 453.9 252.6 249.7 328.7 .3012 August.......... . 334.4 325.9 453.9 258.7 251.1 328.4 .2990 September . . 341.3 335.0 453.9 317.4 252.5 327.5 .2930 October......... . 352.8 351.1 453.9 337.3 249.7 334.5 .2835 November ... . 354.1 353.2 453.9 322.8 249.7 335.9 .2825 ACOUSTICON HEARING AIDS Sales $ Service W. A. CHITTICK & CO., INC. 31 ROMERO SALAS, MANILA Index For 1950 Volume XXVI Editorials Abaca, Central American versus Philippine......................................... Alien Registration and Immigration Fees 10 Times as High as in the United States.................................................................................... Alien Registration Fees and Broken Reciprocity............................... Aliens, Re-reregistration of........................................................................ American Government Protests, The..................................................... American Help and the Philippine Future........................................... American Regime in the Philippines, Responsibility and................ American Tax-Payers................................................................................... Baguio Conference of 1950, The.............................................................. Bank Deposits, Reimbursing Enemy-Confiscated American........... Bell Report, The........................................................................................... Business is International, Philippine National.................................... Cabinet Changes........................................................................................... California Alien Land Law Decision, The............................................ Capitalism as a Cause of War.................................................................. Chamber Board, the New.......................................................................... Chamber Board, Chinese (Messrs. Sy En and Sycip)...................... Credit, Destruction of................................................................................. Credit Information....................................................................................... Coin Shortage, Meaning of........................................................................ Cuademo, Some Elemental Truths from Governor........................... Cuademo, Reply to Governor.................................................................. Democracy, Moving Away from.............................................................. Dollar-Gap at a Low Level of Productivity, Closing the................ Dollars Wanted............................................................................................. Economic Commission, the Proposed Joint........................ ............. Economic Commission, The...................................................................... Economic Survey Mission, The............................................................... Economic Controls in Wartime................................................................ Energy and Effort of All, The.................................................................. Formosa........................................................................................................... Gray Report and the Bell Report, The................................................ Hester, Letter to Mr.................................................................................... Honolulu Chamber of Commerce............................................................. Huks, The Army Goes After the............................................................. Import Control and Good Intentions..................................................... Import Control Act, The New.................................................................. Import Control, Chamber Action re....................................................... Import Control, Abolish............................................................................. Imports, “Shifting” the Source of Philippine...................................... Imports? Who Exports? Who................................................................. Income Tax, The Individual...................................................................... India and Nationalism................................................................................ Indonesia, The United States of............................................................... Investment, The Shaping of Foreign Opinion re................................ Jaycee World Congress in Manila, The................................................. Korea and After............................................................................................ Korea as a United Nations Demonstration Area............................... Korea and Atomic Weapons...................................................................... “Labor” Governments................................................................................ Marsman Agreement with the Government, The............................... Nationalization of the Retail Trade, Secretary Balmaceda on... . Philippine-American Chamber of Commerce (New York)........... Philippine Association, The....................................................................... Philippine Chamber of Commerce, New Board of............................. Planners, Note for Our Economic........................................................... Point Four: What it is and What it isn’t........................................... Price Control Act, The.................... ..................................................... Price of Lanzones, Why as High as Price of Oranges........................ Prices, Unemployment, Black-marketing, Rising....................:. Production and Progress.................................................... .................... Quirino and Vice-President Lopez, Congratulations to President. . Quirino’s Inaugural Address, President................................................. Quirino’s State of the Nation Address, President............................... Quirino’s Vigilance Committee Proposal, President.......................... Re-armament, Cost of................................................................................. Rice Production............................................................................................ Romulo’s Economic Policy Speech, Secretary..................................... Romulo’s Tribute to American Business Pioneers, Secretary......... Russia’s Strength, The Whence of.......................................................... Seattle Chamber of Commerce, The....................................................... Socialism, the British Elections and....................................................... Syphoning Off I............................................................................................... Tanada Bill Again, The.............................................................................. Tax Proposals, The New............................................................................ Taxes, The Proposed New......................................................................... Tax-exempt Industries................................................................................ Technical Men, Foreign (Senate Bill No. 91)..................................... Vicious Circle Full Turn, The.................................................................. World Issue, The.............................................. ....................................... Articles 445 287 328 252 171 92 440 440 210 332 399 324 359 253 327 52 97 8 365 94 287 50 288 135 136 91 136 248 362 49 248 440 365 440 174 8 207 400 402 404 250 360 47 4 254 97 247 365 439 12 50 173 96 212 290 326 92 250 400 10 261 3 3 47 323 326 10 287 287 138 5 136 324 94 444 208 324 172 5 288 Air Traffic, Philippine................................. American Chamber of Commerce An nual Report............................................... Capital, Need of Foreign — A Filipino View.............................................................. Coscolluela, Letter from the Hon. Ild., and Reply.................................................... Bell Mission Membership........................... Bell Report, The............................................ Bell Statement to the Press.................... Economic Policy, Philippine.................... Economic Policy, Philippine. . ................ Economic Survey of Asia and the Far East, 1949.................................................. Employment Loss, Results of a Chamber Questionaire............................................... Ethics, Code of Commercial.................... Exchange Control, The.............................. Export-Import Imbalance, The United States............................................................ Fisheries, Prospect for the Philippine. ■.. Foreign Aid, Recommendations................ Government Corporations, Report on Reorganization of.................................... Gray Report on U. S. Foreign Economic Policy........................................................... Import Control, Recommendations re. . Import Control, Statement on................. Import Control, Correspondence with Senate President re................................... Import Control, “New Importer” Reservations, Statement on................. P. C. Morante........... 330 F. H. Stevens. ... 54, 56 D. R. Aguinaldo.... 256 D. W. Bell.................. C. P. Romulo........... M. L. Quezon........... ECAFE.......................... Association of Credit Men.......................... M. Cuademo............. C. G Ross.................. H. W. Warfel............. U. S. Chamber of Commerce............. Department of Eco nomic Coordina tion ............................ Gordon Gray............. R. J. Araneta............. Myron M. Cowen. . . American Chamber of Commerce........ Import Control, Philippine Association Proposals re.............................................................................................. Integrity Board, Letter to Chairman of.................................................................... Paul H. Wood........... International Bank Makes a Loan, How.............................................................. E. R. Black................ International Harvester Company of Philippines.................................................. Paul H. Wood........... Japanese Military Notes, Redemption of.................................................................... A. V. H. Hartendorp Korea to be Rebuilt..................................... Dean Acheson........... Labor Management Conference, On the Coming National..................................... J. A. Parrish............. Meralco’s New Rockwell Station........... J. A. Thomas............ Nationalization of the Retail Trade, Statement on............................................. C. Balmaceda........... New Year Statement, 1950........................ Myron M. Cowen. . . New Year Statement, 1950........................ F. H. Stevens............. Palestine, Economic Policy in................... From Fortune............. Philippine Association, The....................... G. Wilkinson............. Philippine Manufacturing Company Expansion.................................................. P. T. Milliken.......... Ports, Rehabilitation of Philippine Lt. Col. J. Shapland Production, Controls versus...................... Paul H. Wood............ Quezon, When the Santo Tomas Camp Learned of the Death of President. . . A. V. H. Hartendorp. Quirino-Foster Statement and Agreement............................................. Seattle Chamber of Commerce World Trade Group, Address to........................ Paul H. Wood............ State of the Nation Address...................... President Quirino.. . Tax on Foreign Exchange, Proposed 25%............................................................... Telephone Company, Story of, as Told in Santo Tomas....................................... Telephone Service, Rehabilitation of the................................................................. Trade Statistics for 1949 compared with 1948, Philippine Foreign. .-................. Trade Statistics for the first half of 1950 compared with the first half of 1949, Philippine Foreign................................... American Chamber Commerce............... 288 290 405 328 292 176 329 218 411 60 144 179 448 331 447 61 177 181 296 404 212 182 140 410 366 255 408 178 12 14 294 258 100 15 98 295 450 52 58 446 A. V. H. Hartendorp. 16 H. P. Mahoney........ 260 Bureau of the Cen sus and Statistics 214 (Continued on page 473) Bureau of the Cen sus and Statis tics........................ 368, 414 474 B. F. Goodrich Tires GIVE LONG MILEAGE • Inside and out, B. F. Goodrich tires are built to give long mileage. Note the broad, flat tread that grips the ground and spreads the weight of your car over a wider road surface. A tough extra layer under the tread protects against road shocks. For longer, safer mileage, buy B.F. Goodrich tires. AVAILABLE AT YOUR GOODRICH DEALERS GOODRICH imonillNH RIIII RE II COMPANY | ...and JASPERT. CARTER, PROMINENT TOBACCO FARMER says "Chesterfield pays the top price to get the very best mild, ripe tobacco. Chesterfield has been my cigarette f\ ^jWfor over 35 years." zr ~fnr\ i Starring in Darryl F. Zanucks' Production "TWELVE O'CLOCK HIGH" A 20™ Century-Fox Picture ^PESItKHI the Best cigarette for YOU to smoke Listen Io the Bing Crosby CHESTERFIELD Show on Thursday and to the Arthur Godfrey CHES TERFIELD Program Saturday through Wednesday, both from 8:30 to 9:00 P. M. over Station DZPI.