The American Chamber of Commerce Journal Vol. XXVII, No.10 October 1951

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal Vol. XXVII, No.10 October 1951
Issue Date: Vol. XXVII, No.10 October 1951
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extracted text: Published monthly ih 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 J. A. Parrish, President; C. R. Leaber, Vice-President; F. J. Moore, Treasurer; R. J. Baker, J. H. Carpenter, Earl Carroll, J. T. Hicks, H. C. Stevenson, and Paul H. Wood. Marie M. Willimont, Executive Vice-President; I. T. Salmo, Secretary Vol. XXVII October, 1951 No. 10 Contents Editorials— “Restrictive Practices in Foreign Trade”................................................................................................................................................................................ Production and Progress................................................................................ ............................................................................................................................. The Democratic Way............... ................................................................................................................................................................................................... National Economic Planning................................................. ,................................................................. Leonides S. Virata...................................... Foreign Trade of the Philippines................................................. ,........................................................ Bureau of the Census and Statistics.. .. First half year, 1951, compared with first half year, 1950 I. The Twenty Principal Imports..................................................................................................................................................................................... II. The Twenty Principal Exports..................................................................................................................................................................................... III. Foreign Trade by Countries........................................................................................................................................................................................... VI. Foreign Trade by Nationality of Traders............................................................................................................................................................... 327 329 329 330 334 336 339 340 The Business View— The Government.......................................................................................................................................... Banking and Finance................................................................................................................................. Manila Stock Market................................................................................................................................. Electric Power Production........................................................................................................................ Real Estate..................................................... Building Construction................................................................................................................................. Ocean Shipping and Exports................................................................................................................... Mining..................................................................................................................... ..................................... Lumber............................................................................................................................................................. Copra and Coconut Oil........................................................................................................................ Desiccated Coconut..................................................................................................................................... Sugar................................................................................................................................................................ Manila Hemp................................................................................................................................................ Tobacco................................................................................ ...................................................................... Imports............................................................................................................................................................. Food Products............................................................................................................................................ Textiles........................................................................................................................................................... Legislation, Executive Orders, and Court Decisions.................................................................... Philippine Safety Council........................................................................................................................ Cost, of Living Price Index of Wage Earners’ Family, Manila, by the month, 1948-1951........... Official Sources................................................. 340 G. R. Hutchison........................................... 341 A. C. Hall....................................................... 342 J. F. Cotton.................................................... 343 A. Varias.......................................................... 343 J. J. Carlos..................................................... 344 B. B. Tunold.................................................. 345 N. N. Lim......................................................... 345 L. J. Reyes...................................................... 346 K. B. Day and D. C. Keller................ 347 H. R. Hick....................................................... 349 F. Guettinger................................................ 351 L. A. Pujalte.................................................. 352 S. SCHMELKES................................................... 353 C. G. Herdman............................................... 354 W. V. Saussotte............................................ 355 R. Janda............................................................ 356 F. S. Tenny...................................................... 356 Bureau of the Census and Statistics.... 356 The “Let Your Hair Down” Column.............................................................................................................................................................................................. 358 50 CENTAVOS THE COPY BENEFITS OF OUR ENGINEERING SERVICE 7WE roois AT NO EXTRA COST (^)ur laboratory contains equipment as up to the moment as the minute hand on a watch. It gives our chemists the tools they need for their work — solving the many lubrication problems in your plant. 7WE MEAt y^^mong these is your STANDARD VACUUM representative who works with your engineers, a friendly, expert adviser ... on your staff but not on your payroll. ASK FOR WORLD FAMOUS GARGOYLE OILS AND STANDARD-VACUUM ENGINEERING SERVICE FOR ANY LUBRICATION PROBLEM IN YOUR PLANT. Lubricants WORLD’S GREATEST LUBRICATION KNOWLEDGE AND ENGINEERING SERVICE. Editorials . . . to promote the general welfare” Figures published in the Second Annual (1950) Report of the Central Bank of the Philippines show that total government revenues ' from taxation dropped by nearly P36,000,000, from P311,000,000 in 1949 to P275,OOO,OOO in 1950. “Restrictive Practices in Foreign Trade’’ Import duty revenues fell from P28,600,000 (round numbers) in 1949 to P25,700,000 in 1950, a decrease of approximately 7%; excise tax revenues fell from P133,900,000 to Pl 19,700,000, approximately 11%; license and business tax revenues from P133,700,000 to Pl 11,800,000, approximately 16%. The revenues from certain other taxes, such as the income tax, the immigration tax, the inheritance tax, the franchise tax, and the residence tax, increased, but the increase was not sufficient to make up for the other losses.* As to prices and the cost of living, the Report shows that prices for imported items increased as much as 16.1% and for locally produced commodities 8.3%. From Sep tember to December, the monthly indices were more than 15% above those of 1949. The cost of living for a wage earner’s family in Manila increased 6% from the level at the beginning of the year. From June to November the index moved steadily upward at an average monthly rate of more than 1%. In December the index was 6.8% higher than the previous year’s level. Foodstuffs increased by 4%, clothing by 60%, and miscellaneous items by 31%. In spite of efforts at price control, the prices of many es sential items ran higher than the ceiling prices by an average of 10%. As to employment and wages, there was an over-all decrease in employment in the reporting non-agricultural establishments of only 0.3%, but the decline in employment in the wholesale and retail trade and in real estate was 9% and 17.7%, respectively. There was even a decline of 2.1% in manufacturing employment, although there were con siderable increases in some manufacturing industries, such as tobacco, textiles, furniture and fixtures, paper and paper products, non-metallic mineral products, metal products, and transportation equipment. As to wages, the figures show a slight decline of 0.3% in the wages of skilled labor in Manila, but a 12.4% decline in the wages of unskilled labor. The gross national product increased slightly from P5,050,000,000 in 1949 to P5,130,000,000 in 1950, with a substantial increase in the volume and value contribution of the primary industries (agriculture, fishing, forestry), and some increase in the secondary (mining, manufactur ing, construction), but a large decline in that of the tertiary (personal, professional, and public services, transportation and communication, clerical, and trade). The per capita real income in 1950 was still only 85% of 1938 and ac tually lower than 1949 by 1%. Exports for 1950 reached a total of P674,300,000, an increase of 32.9% over 1949, the 1950 exports being the largest both in volume and in value since the war. Imports during 1950 declined to P684,900,000 from the 1949 peak of Pl,172,800,000, or a decrease of 41.6%. States the Report: “This large decrease appears to be due mainly to delays in the granting of licenses, and to difficulties in securing many merchandise items from abroad.” The chapter on International Trade in the Report opens with the following paragraph: "The Korean War and the rearmament race it touched off boosted the value of Philippine exports in 1950 beyond all previous expecta tions. On the import side, the domestic trade controls and the tighten ing supply situation in foreign markets reduced Philippine purchases very considerably. Both developments made possible the substantial recovery of the International Reserve. The trade deficit was reduced from P665.300.000 in 1949 to P10.600.000 in 1950. . . "The proportion of consumption goods in the total import value dropped from 64.4% in 1949 to 50.1% in 1950, while that of raw ma terials and capital goods, together rose to 49.9% from 35.6% in 1949.” As to the balance of pay men ts and the In terna tional Reserve, the Report states that the downward movement of the Reserve which started in 1946 and accelerated in 1949 was reversed during 1950, at the end of which year the Reserve stood at $356,800,000, or $96,700,000 more than at the end of 1949, the day before exchange controls were imposed. Primarily responsible for the increase in the Reserve were, according to the Report: (1) the improve - 327 ment in the balance of trade resulting from the big demand and high prices for Philippine export products during the last half of the year, coupled with the restriction of imports; (2) continued United States dollar disbursements in the country, amounting to $207,500,000 during the year; (3) the reduction in the disbursements for invisibles from $82,000,000 in 1949 to $71,700,000 in 1950. Finally, as to the money supply. This increased by P203,200,000 or 19.6% over the level at the end of 1949. From Pl,056,000,000 in January, it reached Pl,298,000,000 in November; in December it declined by P57,000,000. The expansion of P203,200,000 consisted of an increase in demand deposits of P91,100,000; in notes and coins in circulation of Pl 10,600,000; and in manager’s, cashier’s, and certified checks of Pl,500,000. The deposits which increased were those of private business and individuals which rose by Pl29,000,000, partly offset by a decrease in the deposits of United States Government and Philippine semi-government entities. The extraordinary expansion of the money supply during the last 5 months of 1950 was due mainly to external factors, particularly the increase in export proceeds and United States Government disbursements. The most important domestic factors were the deficit financing of the Philippine Government and the development spending of semi-government entities. The Government incurred total expenditures of P624,000,000 with a revenue of only P489,400,000, or a deficit of P 134,600,000 during the calendar year of 1950. The budgetary deficit increased the money supply by about Pl00,600,000; the amount of about P33,900,000 included among expenditures con sisted of accounts payable, which did not have any effect on the money supply during the year. Just after completing the foregoing summary of some of the very valuable statistics in the Second Annual (1950) Report of the Central Bank, we were so fortunate as to receive a copy of the Bank’s “Economic Survey, JanuaryJune, 1951,” which allows us to carry the figures of 1950 forward by another half year and up to but a few months ago. Government revenues from taxation during the first six months of 1951 amounted to P244,500,000 (round numbers), only some P31,000,000 less than for the whole of 1950, and largely a result, of course, of the increased tax'rates rather than a basic improvement in the economy. Total receipts were P462,700,000, as against total expen ditures of P373,700,000, or an excess of receipts over dis bursements of P88,900,000. A breakdown of the taxes for the entire half year is not given, but from January to May, 1951, the revenue from excise taxes amounted to P40,300,000, as against P28,200,000 during the same period of 1950; from the in come taxes, P49,000,000, as against P26,200,000; from license, business, and occupation taxes, P59,600,000, as against P39,500,000; and from the new exchange tax, P19,300,000. There was, however, a net increase in the public debt from January to June, 1951, of P42,000,000, chiefly as a result of government bond issues. As for the cost of living, the index of the latter, for a wage-earner’s family in Manila, rose from 394.8 in Decem ber, 1950, to 412.3 in June of 1951 (1937=100). In retail prices, the index figure for imported items rose from 306.9 in December, 1950, to 346.0 in June, 1951; for locally produced consumption goods from 326.9 to 345.0. These are the figures for the commodities included in the cost of living, as given in the foregoing paragraph. The index figures of the prices of selected commodities in Manila, for imported items rose from 270.1 in December, 1950, to 325.5 in June, 1951; and for locally produced con sumption goods from 314.3 to 321.2 (1941=100). The Survey states: “Domestic prices have moved upward rapidly over a considerable distance since June, 1950. The cost of living index for a wage-earner’s family in Manila rose during the 12-month period by 20.6% above the level at the end of May, 1950. The retail price index, which is probably of wider applicability to the lower middle class, increased during the same period by 21.7%. “To relieve the patent inflationary price increases, the Government started liberalizing the import controls in December, 1950.. .” As to employment and wages, the Survey states: "Employment in the non-agricultural sector improved considerably for mining, government, and the recreational services, and slightly in manufacturing. Agricultural underemployment must have been sub stantially reduced due to the increase in volume of production of agri cultural crops. On the other hand, wages improved only slightly. Be cause of the considerable price increases, real wage rates for both skilled and unskilled laborers in industrial establishments declined. There is no indication that agricultural laborers fared much better. “The operation of the Minimum Wage Law, however, is expected to bring about a reversal of this trend.” The six-month Survey gives no figures on the gross national product, but the estimated production in metric tons of the 1951 crop year as compared to the production of the 1950 crop-year, indicates a 28% increase in copra ' (an 11% increase in coconut oil and a 17% decrease in desiccated coconut), a 46% increase in centrifugal sugar, a 58% increase in abaca, a 21% increase in tobacco leaf, a 1% increase in root crops; the figures also show a 34% increase in fish and fish products, an 8% increase in meat and poultry, and an 8% increase in the livestock popula tion. However, a 3% decrease is estimated for rice, a 3% decrease for shelled corn, and a 4% decrease for beans and vegetables.* To give the figures for the exports and imports in the same order as for the year 1950, we include them here, taken, not from the Central Bank Survey, but from the tables just issued by the Bureau of the Census and Statistics. According to these tables, published in full elsewhere in this issue of the Journal, Philippine foreign trade showed increases both in exports and imports com pared to the corresponding period in 1950, with a favorable balance, during the first six months of 1951, of P77,322,000, as compared to an unfavorable balance of P97,935,000 for the first six months of 1950. The summary figures are: First half of First half of 1950 1951 Exports........................................................... P281.552.000 P487.210.000 Imports........................................................... 379,487,000 409,888,000 Totals............................................ P661.039.000 P897,098,000 Balance.......................................... (P97.935.000) P77.322.000 Returning to the Central Bank Survey for the figures as to the International Reserve, this rose from $356,000,000 at the end of 1950 to $391,000,000 in April of this year, then declined until in June it stood at $383,000,000. Ac cording to the Survey: "It is expected that the Reserve will go down further during the coming months with the heavy arrivals of imports and for as long as export prices do not improve significantly.” Finally, as to the money supply, the Survey states the following: "The rapid growth of the money supply in 1950, of which almost three-fourths took place during the last six months, continued unabated into 1951, reaching a peak in April higher than that of the previous December by ?59,700,000. Jvloney supply then dropped abruptly during May and June by P48,900,000. Buttons................................... Cigars... ............................. Coconut Oil........................... 328 This drop was largely due to the fact that, because of the increased tax collections, the Government was able to cover its overdraft with the Central Bank and increase its various deposit accounts. The foregoing statistics for 1950 and for the first half of 1951 are very revealing as to the state of the economy of the country,—good in some respects, bad in other re spects, and show especially how important it was for the Government to liberalize its import control policies. The Central Bank Survey defends this shift in the following soundly reasoned paragraphs: “The liberalization of import policy was prompted by the growth in strength of the country’s international reserve position, the desire to provide against shortages that might develop due to production cut backs in supply countries, and the need to relieve the inflationary rise of prices inside the economy. The relaxation of import control was suc cessful in terms of these objectives.. . “.. . the gains from decontrol have been very real. It is regrettable that the implementation of the policy has resulted in excessive im portation of some commodities and hence a waste of foreign exchange. Already there are those who point readily to this outcome as an argu ment against decontrol. These are primarily the beneficiaries of the price distortions that the controls have given rise to. They are the recipients of the extraordinary subsidies that cpnsumers have had to pay under the pressure of inflation. The depressing effect that decontrol has exerted on the domestic price level has reduced their profit margins or wiped out their prospects of speculative gain. The argument against decontrol which is also taken by those who favor absolute banning of certain imports is the familiar one about the obligation of the Govern; ment to protect infant industries. They advocate strenuously the use of quantitative import restrictions as an instrument to stimulate the growth of local industries. “This argument deserves careful examination. It underlies the potency of quantitative import restrictions as an instrument of develop ment policy. While one may readily subscribe to the legitimacy of using import control •for fostering local industries, yet, it should be handled with care. There is great need of coordinating development plans with import policy if the latter is to be used as an incentive to new industries. The lack of such a coordination has resulted since 1949 in the umbrella of controls fostering the growth of many industries producing non-essential items and hence in the diversion of admittedly scarce investment resources away from essential undertakings. The clamping of controls on non-essential items has made them highly profitable relative to other things and hence attractive to investment capital especially of the speculative type. If import controls can not be used as a development incentive without fostering the growth of undesirable industries, then there is need for neutralizing the subsidy conferred on these activities by the use of appropriate fiscal measures such as excise taxes. . .” It is to be questioned whether the Government has gone far enough in the liberalization of the import controls. Among the recommendations in a recent repprt of the United Nations Economic Commission for Asia and the Far East (ECAFE),—which draws the conclusion that the economy of the whole region is threatened by inflation,is one recommendation to the effect that a freer flow of imports be permitted. From a world point of view, also, as the Chamber of Commerce of the United States (Washington) recently pointed out: “In this period of grave international tension, it is imperative that all nations take all possible steps to relax and eliminate restrictive practices in foreign trade.” An official United States Government publication came across our desk recently which brought out that since the year 1850, real wages of American Production workers (wages in relation to prices) and Progress have increased 3-1/2 times; hours have been reduced from an average of around 70 a week to 40; the share of the national income paid out in wages and salaries has increased from 38% to 70%; the number of jobs in proportion to the population has in creased from 320 to 420 out of 1000; and the national in come has increased from about $7,000,000,000 to about $215,000,000,000 (1944), figured in dollars of the 1944 purchasing power. How was this done? Because today the average worker can produce about 5 times as much per hour as in 1850 without expending any more energy than he did then. That is why the net output of goods and services increased 29 times, though working hours have been cut almost in half and the population is only 6 times greater. It is largely the invention and use of machinery which has made this possible. In 1944 the United States used nearly 29 times as much machine-power as in 1850. In 1944 animals supplied only 2% of the work energy and men only 4%; power-driven machines had taken over more than 90% of the burden. Thanks largely to agricultural machinery, the pro duction of food, especially, has increased to an extent that makes it possible for 1 man on the farm to provide the food for 5 or 6 men in industry or in the professions, while in 1840 it took 7 men on the farm to support 1 industrial or professional man. Some years ago, the late great liberal United States Supreme Court Justice, Louis D. Brandeis, addressing a labor convention in Boston, voiced some very sound advice by which labor leaders and workers in the Philippines may also profit. He said: “The employees should strive to make the earnings of any business as large as possible. There can be no greater mistake for the working man than to restrict the output of the individual. You must make the total earnings of the business in which you are engaged the largest possible. By earnings in this connection I mean the aggregate fund available for paying working men, investors, and managers. Make this aggregate large, and there will be plenty for all among whom it is to be divided. “The most potent factor in securing large profits is the avoidance of waste, and the greatest source of waste in the industrial world is unused, undeveloped, or misdirected human effort. To the correction of that evil, trade unions should direct their attention. “Any restriction upon the output of the individual reduces the fund of profits available for distribution, besides demoralizing the man who is so restricted. “It follows also that differences in efficiency between different individuals must be recognized and rewarded, and that those who can work faster and better than the others must not be retarded by the less efficient. The industrial superiority of America is largely due to the absence of restriction upon individual effort—to the encourage ment of the individual by giving him the fruits of his efforts. “A limitation of the production of the individual is pure waste. The business is merely rendered less profitable, and the man whose production is restricted is injured also. Nor does the restriction of output make more work for others. The amount of work to be done is, in a country like ours, in no sense fixed—for the amount of goods or services men buy is not fixed. The amount bought is, as a rule, limited only by the ability to buy. “If you waste human effort you make the product cost more. If you raise prices without increasing incomes you have simply limited the amount that will be bought. You have not made more work for more people. You have merely given people less for their money.” The pre-election terrorism, the shootings and kidnap pings in certain areas, on top of the general widespread law lessness and criminality and the conThe Democratic tinuing outrages of the insurrectory Way Huk element, are enough to create a doubt in many minds that the forces of law and order will be able to cope with the situation. Certainly an earnest appeal is in order, addressed to the responsible leaders of both of the principal political parties, that they exercise a wise restraint and moderation in their campaigning so as not to stir partisan passions too deeply. Undoubtedly, the chief reason for the obstinacy and desperation with which public office, once gained, is clung to, and the bitterness of the opposition and its mortification when unsuccessful, is the fact that on both sides public office is not sufficiently regarded as a public trust, accepted for the sake of devoted and disinterested public service, but rather as an opportunity to exercise and to exploit political power and patronage,—with the hangers-on tur bulent and clamorous to share in the triumph, the glory, and the spoils. 329 That is not democracy; it is debased oligarchy making use of and prostituting the processes of democracy. A good test of fitness for public office would be that the candidate, if up for re-election, should not be too des perately determined to retain the position, and, if the op position candidate, not too desperately eager to obtain it. It is not that elections are not of importance; they are of the greatest importance, but to the people rather than any candidate or party. A candidate may well make an earnest and vigorous fight for election, but he should not feel that the nation will perish if a rival instead of himself is elected. No man is that important. And even if he thinks that the people have ignorantly elected a scoundrel, there are always legal checks on such a man while he remains in office which, if vigilantly applied, will prevent him from doing too much harm. The people’s power does not end with the elections. Even though they may not be able easily to remove an unworthy man from office, he can always be restrained and, if necessary, exposed and brought to justice. Election to public office is a high honor, often a great opportunity for outstanding service. But if a man fails of election, what of it? He need not hide his face. He remains a citizen and as such may continue to play an active part in public affairs if he so desires. He may run for office again on a future occasion. He may go into honor able retirement. That is the democratic way. Under democracy there is faith, faith in the people, faith in their chosen leaders. The people may sometimes err, officials may sometimes be faithless, but confidence in both the workability and the rightness of the democratic system remains unimpaired. A statement by President Lincoln in his First Inaugural Address is to the point: “By the frame of the Government under which we live, this same people [the American people] have wisely given their public servants but little power for mischief and have, with equal wisdom, provided for the return of that little to their own hands at very short intervals. While the people retain their virtue and vigilance, no administration, by any extreme of wickedness or folly, can very seriously injure the Government in the short space of time of four years.” National Economic Planning By Leonides S. Virata Acting Governor, Central Bank of the Philippines I AM glad that I have been given this opportunity to fraternize with the members of a profession to which I have had the privilege of belonging in the past and whose potential importance to our progress toward a higher plane of production and welfare is becoming better appreciated in all sectors. All underdeveloped countries launching an economic development program usually experience a critical need for men trained in the systematic compilation, presentation, analysis, and interpretation of statistical information to supply the requirements of national eco nomic planning, project budgeting, scheduling, and review work. In the Philippines, the existence of a large body of men trained in accounting should materially lessen our difficulties in this regard. Accounting is the nearest relative discipline to statistics, and as we carry on our development program we may expect ever increasing demands on the resources of the profession to serve both government and private enterprises. It is well, therefore, that you who would play an increasingly important part in our economic growth should be made aware and be stimulated to think about economic development in all its aspects. The purely monetary and financial as well as the technological facets of the subject have been treated extensively in many papers and public pronouncements in the past. Its social, cultural, and welfare dimensions, however, have not received as thorough a treatment. I do not propose to give an exhaustive dissertation on these matters today. My purpose is merely to emphasize that, inasmuch as the economic development-process has to be carried out in a milieu of human values, we must be fully aware of its impact on these values, and that we should move immediately to make thorough studies of the nature and extent of the change that economic development may bring about in the moral and social fabric that knits our society together. These studies should cover not only the economies of the urban centers of population but also and ipore especially so, the economy of the village. tt is well to remember that the end object of economic ■^development is to foster the growth and strengthening of basic human values by creating the material climate ♦An address before the Philippine Institute of Certified Public Accountants at the Manila Hotel, September 22. in which they may flourish to the full. It is for this reason that in a democratic society national economic planning is obliged to conform not only to the objective of increasing the level of production but also to that of increasing the participation of all sectors of society in the bigger volume of goods and services that may be produced. The attain ment of a higher production level does not necessarily ensure an equitable improvement in the income-shares of all those who participate in the production process. The level of production may be increased without being ac companied by an equitable distribution of the larger na tional dividend accruing therefrom. The machinery and systems of incentives chosen to bring about higher produc tion are the determinants in many cases of the human values damaged and sacrificed, or strengthened, in the process of development. We must accommodate ourselves to the fact that a loss of some human values is an inevitable consequence of the economic development process. The important point, however, is for the society undertaking development to guard against any unnecessary sacrifice of these values, to keep the sacrifice at a minimum, and to distribute its burden equitably among all groups in the population. A sacrifice of human values is inherent at least in three **■ types of development effort. The first of these is the effort to increase investment and to reduce consumption. The only way a society can increase the level of its real income is by increasing the proportion that is channelled into investment for the production of the goods and ser vices it currently produces. Whatever increase in invest ment takes place is taken ultimately from the goods and services allocated to consumption. It must be realized that, no matter how good the credit-standing of a country might be, it cannot hope to finance the full investment requirements of its economic development via foreign grants or borrowings, and that, for an investment program to be permanently beneficial for the people concerned, it has to be placed on a self-generating basis. Where the level of current production is low and its distribution highly unequal, it is logical to place the main burden of develop ment-financing at the door of those who receive the bigger share of the national income. Among all elements in the 330 October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 331 AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES ESTABLISHED 1920 PURPOSES. The promotion and development of American trade, commerce, and industry in the Philippines and the Far East; The provision of means for the convenient exchange of ideas in this promotion and develop ment; The cultivation of friendly relations between Americans and Filipinos and other peoples of the Far East; The enrolment of all American citizens residing in the Philippines with a view to bringing about closer association in the achievement of the purposes set forth. MEMBERSHIP. Active membership is limited to (1) commercial, industrial, and other organizations, partnerships, and corporations organized under the laws of the Philippines or of the United States of America which are controlled by American citizens, the responsibilities and privileges of this class of mem bership being exercised by individual representatives of the member-entities who must rank among their senior members but need not be American citizens; (2) individual Americans residing in the Philippines, other parts of the Far East, or the United States. Associate membership is limited to individual American citizens who may be either Residents (residing within 100 kilo meters of Manila), or Non-residents (residing in the Philippines outside this radius or elsewhere in the Far East or in the United States). OFFICERS AND DIRECTORS, 1951 J. A. Parrish, President J. H. Carpenter, Member C. R. Leaber, Vice-President R. J. Baker, Member F. J. Moore, Treasurer Earl Carroll, Member -------------- J. T. Hicks, Member Marie Willimont, Executive Vice-President H. C. Stevenson, Member I. T. Salmo, Secretary _____________ Paul H. Wood, Member American business houses and individual Americans, not already members, are cordially invited to join the Chamber and to assist in the promotion of its purposes. PAST PRESIDENTS *H. L. Heath ♦C. M. Cotterman E. E. Elser ♦R. E. Murphy G. H. Fairchild ♦P. A. Meyer *H. M. Cavender ♦S. F. Gaches W. H. Rennolds F. H. Stevens P. H. Wood *Deceased population, they are the ones who can sustain substantial cuts in consumption without suffering any prejudicial deterioration in productivity. Under the assumptions just stated, the greater mass of the population is presumed to subsist at low levels of consumption, further cuts in which might only result in a reduction of productivity, a deteriora tion in the quality of the labor force, a contraction of the market, and the creation of a fertile ground for the seeds of social discontent. It would be sanguine to expect that, in an underdeveloped environment, investment would increase and the burden of development-financing be dis tributed as logically as mentioned above; if the effort is left solely to voluntary action without the government interposing the necessary controls, the result is either no increase in investment or an increase that is accompanied by such an inflation in the level of prices that the net effect is a transfer of real income from the poorer groups to the richer ones, and therefore, a shifting of the burden of financ ing investment to the very people who can hardly sustain it. 't'he second type of development effort that necesA sarily involves a sacrifice of human values is the control • of the direction and the pattern of investment itself. It is not enough that the level of investment be increased. Planned economic development requires that the flow of investment funds made available to the economy be oriented to the outlets that the society concerned determines to be deserving of priority in the use of these funds. It becomes necessary, therefore, to restrict the freedom of choice of the investor. Again, if this is not done within limits, the result of complete reliance on voluntary action, especially in an underdeveloped environment, might well be the fostering of the growth of purely speculative financial investments that result in doing more harm than good to the economy and contribute nothing to bringing about a permanent increase in its basic productive capacity. Un less the proper controls are interposed, voluntary action in this field can also lead to a further concentration of economic power in the hands of those who already pre dominate in the existing society. Where credit is extended primarily on the strength of high security requirements, only those who have adequate security to put up become eligible for accommodation. It must be stated, however, that this pattern of financing is forced upon private finan cial institutions by their over-riding obligation to protect the interest of depositors and investors, and that it is a pattern that exists in practically all underdeveloped areas as a resultant of the relatively much higher risks that exist in these environments. *t*he third type of development effort' which entails a A sacrifice of human values is the reduction of consump tion. In this field the society undertaking development effort becomes compelled to impose not only quantitative but also qualitative controls in order that the reduced re sources which remain available for consumption may be dis tributed equitably and used to best advantage by the population. The severest test of whether this objective is being attained is the level of the physiological well-being of the people. Here, the impact on human values is prob ably more obvious than in the first two types of effort. The freedom of choice of the consumer is restricted not only with respect to the quantity of goods and services that he can buy, but also the kind and types of goods and ser vices that become available to him in the market. In this field, as in the first two I referred to above, the necessary controls have to be imposed if it is desired to do the least violence to the public sense of fairness and justice. tn all these three types of development-effort, the kind of Apolitical and administrative machinery employed to bring about the desired results determines to a very great degree the human values sacrificed and the incidence of the sacri fice. In totalitarian countries one often finds that the meas ures employed ride roughshod over the basic freedoms of the individual. Investment funds are taken away from those receiving the bigger share of the national income, either via confiscatory fiscal measures or by direct nullifica tion of rights of ownership. The desired direction and pattern of investment is attained at times via the issuance of government edicts prescribing stringent control meas ures in favor of preferred productive activities; and where the totalitarian country concerned is ruled by authorities that give the highest priority to the requirements of mili tary production, one often finds that the direction of invest ment is so controlled as to discriminate against consumer industries. The degree of comfort sacrificed in those areas by the existing generation is justified oftentimes by the promise of higher levels of comfort after the political objec tive of the state has been achieved. In this regard, we may also mention the fact that when the target-date set by the authorities for the attainment of their political objective is relatively near, one finds that the rate of investment is also raised to a level far higher than the economy can sustain. This results in such a tremendous cut in current consumption as to require the most stringent forms of con trols on both the quantity and the quality as well as the distribution of goods consumed. Whenever the ruling authorities are unscrupulous, consumption-controls can be so designed as to maintain the ruling oligarchy at a fairly comfortable level of living, to the great detriment of the general mass of the people. In democratic societies such as ours, the choice of measures by which economic development objectives may be attained is limited by the ethical framework in which we live. The measures selected have to conform to the requirement that equality of opportunity be maintained and that the basic individual freedoms be preserved. It has now been well proved by the experience of many countries in the world that it is perfectly possible to undertake a program of economic development at a reasonably acce lerated rate in an atmosphere of freedom. What appears essential to the attainment of economic stability without unnecessary loss of freedom, is full awareness on the part of the body politic, especially the intelligentsia, of the impact of control measures on human values. It is now universally recognized that the state has the legitimate obligation to provide the necessary stimuli and incentives to foster the growth of production along desired lines, that government intervention and guidance is in no way in consistent with the concept of leaving mainly in the hands of private enterprise the task of developing the economy’s resources. It behooves the body politic, however, to realize that government control and regimentation could become unnecessarily burdensome if the constituency should give up initiative at all times to government. It would, there fore, be to the enlightened self-interest of private groups, business and professional, if they would move rapidly to study and consider seriously by themselves how best they may attain through voluntary action the declared develop ment-objectives of the society to which they belong and thereby render unnecessary the interposition by the govern ment of rules and regulations that in the end only serve to transfer freedom from the hands of the people. I suggest that private groups should themselves initiate studies of the difficulties and the obstacles that prevent their effec tive entry into desirable investment fields and thereby provide government with enlightened and socially desirable suggestions on how best these difficulties could be removed. This, I submit, is an effort of national dimensions, deserving of the highest priority in the available resources and energy of every citizen. It is only thus that we can be assured of being able to achieve our objective of economic stability and to redeem our promise of prosperity to future genera tions and at the same time ensure in the process the preser vation of the democratic foundations on which our society stands. 332 October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 333 Write us for full information, or see your local Gardner-Denver distributor. Atlantic, Gulf & Pacific Co. OF MANILA (Philippine Contractors Since 1905) I 5-cylinder radial air motors function together on the powerful I scooping action. And Gardner-Denver design provides extra force J for digging — extra speed for dumping ore into the car and I hurrying the dipper back to digging position. I Even your inexperienced men soon learn to load mine cars at I a fast and steady pace with Gardner-Denver Loaders. Controls are J simple and conveniently located. Numerous safety features pro| tect the operator. I MERCHANDISE SALES DIVISION I SINCE 1859 GARDNER-DENVER Gardner-Denver Company, Export Division: 2J3 Broadway. New York 7. N. YU. S. A. Gardner-Denver Company. Quincy. Illinois. U. S. A. THE QUALITY LEADER IN PUMPS, COMPRESSORS AND ROCK DRILLS Foreign Trade of the Philippines: First Half Year, 1951, Compared with First Half Year, 1950 Bureau of the Census and Statistics TOTAL TRADE. 1951 Value (Pesos) Percent 897,098,164 100.00 1950 Value (Pesos) Percent 661,039,460 100.00 IMPORTS............. EXPORTS............. 409,888,038 45.69 487,210,126 54.31 379,487,074 57.40 281,552,386 42.60 I. TWENTY PRINCIPAL IMPORTS: FIRST HALF YEAR, 1951, COMPARED WITH FIRST HALF YEAR, 1950 Country of Origin \1951 (Jan.-June)\1950 (Jan.-June) I Value-Pesos I Value-Pesos [1. Cotton and manufactures, Total................................................... 40,340,906 36,149,93i6 United States......................... 33,540,028 Japan......................................... 3,756,068 Hongkong................................. 1,358,640 Great Britain......................... 803,130 . India.......................................... 3.54,528 Switzerland............................. 211,970 France....................................... 176,628 China......................................... 54,448 Belgium.................................... 46,012 Italy........................................... 20,586 Other countries..................... 18,868 2. Grains and preparations, Total................................................... 39,665,240 30,477,242 3,216,642 521,638 537,760 198,656 280,706 186,314 618,360 46,426 30,262 35,930 30,873,828 United States......................... 14,068,524 Canada...'............................... 13,841,192 Thailand (Siam).................... 10,881,524 Argentina................................. 165,924 Germany.................................. 164,640 Denmark.................................. 159,670 China......................................... 149,182 Great Britain......................... 70,624 Belgium.................................... 47,596 Hongkong................................. 40,890 Other countries..................... 75,474 3. Mineral oils (Petroleum pro ducts), Total................................. 35,513,362 13,044,902 15,620,164 1,238,200 84,326 146,630 173,308 10,000 44,624 511,674 29,688^446 Indonesia.................................. 17,559,190 Arabia....................................... 8,732,096 United States.................. 5,650,476 British East Indies.............. 3,215,544 Iran............................................ 304,998 Hongkong................................. 49,474 Great Britain......................... 1,584 China......................................... Canada...................................... Switzerland............................. 12,243,812 4,162,634 4,338,234 7,171,672 1,685,408 8,002 46,936 31,796 52 4. Iron and steel & manufac tures, Total................................... Japan......................................... United States......................... Belgium.................................... Germany.................................. Great Britain......................... Sweden..................................... Luxemburg.............................. France....................................... Netherlands............................. Hongkong................................. Other countries..................... 29,141,450 34,812,718 19,355,802 8,881,146 11,468,218 15,112,364 1,705,426 1,954,448 851,856 928,368 677,702 1,424,464 129,144 73,698 126,600 3,776 107,132 22,466 99,316 11,136 91,024 252,754 200,498 476,830 29,092,628 5. Dairy products, Total............... United States......................... Netherlands............................. Great Britain......................... Switzerland............................. Australia................................... Denmark.................................. Canada..................................... Japan........................................ Hongkong................................. Spain......................................... Other countries..................... 21,908,616 23,901,936 20,541,632 2,845,418 294,772 1,449,702 — 378,212 440,558 353,270 497,196 88,176 28,106 38,626 50,108 18,382 — 8,462 — 4,648 — 5,796 56,244 6. Automobiles, parts of,& tires, Total................................................... 23,017,258 19,766,932 United States......................... 22,728,334 19,675,244 Japan........................................ 128,758 — Great Britain......................... 71,426 73,540 Hongkong................................ 37,816 2,826 France....................................... 30,048 10,784 Canada..................................... 11,242 3,384 Spain......................................... 7,000 — Guam........................................ 1,814 — Germany.................................. 820 — China........................................ — 1,000 Other countries...................... — 154 7. Machinery and parts of (Ex cept agricultural & electrical), Total................................................... 20,475,800 18,233,674 United States......................... 16,612,700 14,702,148 Japan........................................ 2,119,834 1,049,466 Great Britain......................... 679,518 1,228,792 Germany.................................. 425,110 333,626 Switzerland............................. 195,668 13,238 Hongkong................................. 161,762 176,640 Sweden...................................... 122,258 114,200 Australia................................... 54,740 44,220 Italy........................................... 31,506 6,244 France........................................ 22,078 1,420 Other countries..................... . 50,626 563,680 8. Paper and manufactures, Total................................................... 19,261,830 22,485,540 United States......................... 17,405,344 20,631,984 Canada...................................... 535,822 357,588 Japan......................................... 445,532 168,516 Sweden..................................... 118,672 100,220 Hongkong................................. 105,836 125,378 Great Britain......................... 100,524 72,612 Hawaii...................................... 93,642 154,194 Austria...................................... 90,834 88,768 Germany.................................. 90,638 34,956 Spain......................................... 77,418 182,772 Other countries..................... 197,568 568,552 9. Chemicals, drugs, dyes, and medicines, Total.......................... 18,010,026 18,961,520 United States......................... 16,345,690 17,964,136 Japan........................................ 465,682 7,110 Switzerland............................. 377,310 429,580 Great Britain......................... 228,450 107,566 France....................................... 154,028 110,658 Germany.................................. 84,958 52,616 Netherlands............................. 67,344 23,200 Australia................................... 66,236 1,848 Canada..................................... 52,516 1,090 Hongkong................................. 42,828 30,460 Other countries..................... 124,984 233,256 10. Fish and fish products, Total 15,350,966 6,545,550 United States......................... 13,948,796 6,137,748 Canada..................................... 1,028,022 82,998 Japan......................................... 108,000 127,488 China........................................ 106,690 41,934 Portugal................................... 89,854 69,834 Mexico...................................... 49,182 6,714 France....................................... 8,864 3,488 Hongkong................................. 8,240 6,102 Great Britain......................... 3,262 4,834 Spain......................................... 46 44,104 Other countries..................... 10 20,306 11. Rayon and all other synthe tic textiles, Total........................ 15,083,046 14,411,550 United States......................... 14,938,982 14,272,044 Hongkong................................. 73,966 7,012 Switzerland............................. 28,654 37,610 Japan........................................ 19,730 28,556 Sweden..................................... 9,688 4,042 Italy.......................................... 3,860 6,252 France....................................... 2,874 22,850 Canada..................................... 2,592 — Hawaii...................................... 1,690 368 16 China........................................ 4,926 Other countries..................... 642 28,242 334 October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 335 READY-POWER ELECTRIC GENERATORS CUT COSTS_______ REDUCE WORK INCREASE OUTPUT RAISE PROFITS Wherever there's need for self-generated, regular or standby electric power ... in busy cities or far away barrios... rely on Ready-Power Engine Generators. 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Electrical Machinery & Appa- ' ratus, Total...................................... 8,840,568 14,994,576 United States......................... 8,194,056 14,592,672 Japan........................................ 350,318 53,760 Netherlands............................. 107,906 53,540 Switzerland............................. 70,172 94 Germany.................................. 42,828 20,244 Hongkong................................ 29,874 75,874 Great Britain......................... 22,642 41,268 Italy.......................................... 9,620 8,282 478 Belgium. . 5,070 Denmark.................................. 2,890 5,192 Other countries..................... 148,364 13. Cocoa, Coffee, Tea, Total. . . . 8,708,026 2,738,868 Brazil........................................ 5,256,884 973,824 United States......................... 1,429,694 1,113,324 Ceylon....................................... 1,044,486 254,890 Great Britain......................... 535,158 84,724 Indonesia................................. 101,086 154,280 Costa Rica.............................. 93,706 128,208 Mexico...................................... 82,036 9,660 Hongkong................................ 76,968 100 China........................................ 45,940 7,166 Japan........................................ 23,086 — Other countries..................... 18,982 12,692 14. Jute and Other Fibers, Total 8,231,958 4,756,196 United States......................... 2,508,158 1,436,642 2,136,374 1,977,618 Italy.......................................... 1,272,672 498,398 Spain......................................... 858,920 — Japan........................................ 542,170 689,258 Belgium.................................... 414,520 86,600 France....................................... 206,628 — Poland... ............................. 106,844 — Switzerland............................. 99,000 — Germany.................................. 65,936 — Other countries..................... 20,736 67,680 15. Non-ferrous metals & manu factures, Total ............................ 7,189,854 8,601,352 United States......................... 5,157,776 7,171,600 Malaya...................................... 772,456 70,466 Japan........................................ 714,838 663,320 Germany.................................. 143,704 222,440 Hongkong................................. 119,190 46,046 Great Britain......................... 68,760 82,934 Switzerland.............................. 67,070 107,112 Sweden...................................... 49,944 41,106 Belgium............................. .. 39,522 1,704 Australia................................... 26,724 30,898 Other countries..................... 29,870 ' 163,726 16. Tobacco and manufactures, Total................................................... 7,163,946 13,423,454 United States......................... 7,135,650 13,423,136 Turkey...................................... 16,948 — Greece....................................... 5,374 — Hawaii...................................... 3,682 — Hongkong................................. 2,006 264 Great Britain......................... 272 24 Malaya..................................... 14 — China........................................ — 16 Canada..................................... — 12 Malaya..................................... — 2 17. Fertilizers and fertilizing materials, Total........................... 5,422,904 7,762,232 United States......................... 4,944,266 6,754,798 Netherlands............................. 147,250 — Japan......................................... 141,950 — Canada...................................... 116,248 906,334 China........................................ 47,454 3,262 France....................................... 25,736 — Germany.................................. — 91,856 Hongkong................................. — 3,972 Belgium.................................... — 2,010 18. Gums, resins, oils and war, Total................................................. 5,305,520 1,811,596 United States......................... 4,800,534 1,587,518 India.......................................... 151,994 91,130 Netherlands............................. 92,240 40 Great Britain......................... 64,254 71,162 Switzerland............................. 37,328 China......................................... 34,344 8,226 Indonesia................................. 26,492 27,952 Malaya..................................... 25,558 — Japan........................................ 20,834 4,852 Spain......................................... 14,980 7,192 Other countries..................... 36,962 13,524 19. Leather and manufactures, Total................................................. 5,071,470 6,144,970 United States......................... 4,368,066 5,185,276 Australia................................... 278,528 870,878 India.......................................... 271,902 18,324 Hongkong................................. 61,816 18,616 China........................................ 52,604 14,998 Argentina................................. 17,548 — Great Britain......................... 12,688 12,270 Japan........................................ 7,860 11,212 Spain......................................... 156 114 Hawaii...................................... 74 364 Other countries..................... 228 12,918 20. Vegetable and preparations, Total.................... .. ......................... 4,987,286 3,517,598 United States......................... China......................................... Japan......................................... Mexico...................................... 3,998,026 628,598 150,150 13,970 66,718 19,680 2,520,644 297,810 253,832 26,746 39,630 349,322 Egypt........................................ Switzerland............................. 5,608 — Indonesia.................................. 4,502 — Spain......................................... 30 — Great Britain......................... 4 1,092 Other countries...................... 28,522 Other Imports............... 58,342,726 67,569,190 409,888,038 379,487,074 II. TWENTY PRINCIPAL EXPORTS: FIRST HALF YEAR, 1951, COMPARED WITH FIRST HALF YEAR, 1950 Article and Country of Destination 1 1951 (Jan.-June) | 1950 (Jan.-June) Quantity | Value I (Pesos) | Quantity | Value (Pesos) Copra Total............ Kilo 373,336,423 175,218,029 244,715,643 90,797,105 United States. . 189,543,259 88,314,119 162,190,924 60,321,505 Netherlands.. . . 33,288,100 15,319,431 8,126,400 2,949,767 Belgium.............. 32,061,869 14,627,145 13,847,600 5,174,875 Guam.................. 19,824,000 10,170,942 — — Italy..................... 15,442,400 7,106,409 8,087,360 2,928,997 Venezuela........... 13,817,600 6,301,700 9,643,874 3,622,926 Canada................ 12,746,824 6,254,671 10,820,429 3,949,341 Sweden............... 10,464,800 4,708,362 — — Colombia............ 7,846,402 3,723,766 4,013,200 1,503,150 Japan................... 6,622,000 3,470,606 4,294,000 1,566,310 Other countries. 31,679,169 15,220,878 23,691,856 8,780,234 Sugar, centri fugal Total............ Kilo 495,612,970 108,103,956 303,736,668 66,650,149 United States. . 495,612,907 108,103,943 303,736,533 66,650,081 Japan................... 63 13 135 68 Abac A, unma nufactured Total............Bale 547,204 76,879,294 345,235 36,471,222 United States. . 276,141 45,162,272 151,980 18,046,105 Great Britain... 83,120 11,009,209 39,831 3,795,229 Japan................... 67,069 8,980,928 64,701 6,667,569 France................. 28,329 3,330,237 15,111 1,229,161 Germany............ 14,575 1,943,191 7,671 712,903 Norway............... 12,018 1,752,639 9,140 995,451 Belgium.............. 11,902 1,508,497 4,042 382,750 British Africa. . 10,840 1,322,381 2,890 237,913 Canada................ 8,693 1,227,375 3,043 313,160 Denmark............ 9,195 1,116,058 7,800 . 694,769 Other countries. 25,322 3,126,507 39,026 3,396,212 Cocon ut oil Total............Kilo 34,690,780 26,243,270 26,283,917 14,792,524 United States. . 24,326,884 17,821,757 25,107,056 14,045,371 Netherlands.. .. 3,388,202 2,711,114 — — 336 October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 337 U.S. Royal Lug Traction U.S. Royal Fleelmaster insist on Sdenfiticatty Buitt I quality at ’ under the most sever performance, even conditions. 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L.gu>pi Manila Dralm: REYES AUTO SUPPLY, 687-689 Evangelism SQUARE AUTO SUPPLY, 723-25-27-29 Rtlni Rcgcntr Switzerland.... 2,102,639 1,682,189 — — British Africa. . 1,534,553 1,284,064 514,125 305,450 Belgium.............. 1,115,475 950,667 — — China.................. 587,381 488,767 5,102 4,618 Venezuela........... 503,200 425,407 644,415 426,436 Germany............ 435,837 388,944 — — India.................... 427,824 287,543 — — Hongkong........... 162,780 105,300 7,620 6,075 Other countries 106,005 97,518 5,599 4,580 Logs, lumber and timber Total.. ..Bd. ft. 147,326,721 19,069,351 37,769,933 4,644,239 Japan.................. 95,875,663 10,571,683 8,321,911 587,657 ■ United States. . 41,183,530 7,140,101 19,565,408 3,132,809 China ................ 5,138,609 348,288 5,611,345 378,521 Hawaii................ 1,212,284 308,710 122,182 39,775 British Africa. . 1,304,795 222,649 880,558 128,427 Canada............... 1,099,721 217,225 541,568 71,443 Guam.................. 735,750 108,081 12,851 10,467 Ireland................ 275,495 64,621 140,858 34,527 Belgium.............. 128,244 43,918 51,084 15,860 Hongkong........... 364,166 41,922 2,162,024 212,669 Other countries 8,464 2,153 360,144 32,084 Desiccated coTotal............Kilo 20,410,584 14,638,085 32,827,705 22,123,605 United States. . 19,991,543 14,339,594 31,817,659 21,389,441 Canada............... 311,608 225,879 845,627 621,983 Belgium.............. 79,700 52,814 116,303 77,676 Hawaii................ 15,806 10,471 6,696 4,703 Germany............ 11,927 9,327 — — Hongkong........... 41,420 29,802 Pineapple, canned Total............ Kilo 38,192,455 10,625,945 34,469,713 11,415,302 United States. . 38,173,255 10,621,155 34,469,688 11,415,287 Spain................... — — 25 15 Hongkong........... 19,200 4,790 Base metals and concen tre tes Total.. . r. .Kilo 506,608,998 10,499,267 340,844,244 9,660,056 Japan................... 358,247,824 6,186,179 204,262,970 3,187,698 United States. . 147,853,174 4,283,088 126,497,274 6,219,358 Spain................... 508,000 30,000 — — Canada................ 9,982,400 252,000 Italy.................... - - 101,600 1,000 Embroideries, cotton &• silk Total.................... 7,074,558 4,298,984 United States. . 7,071,930 4,267,035 Guam.................. 2,328 1,503 Hawaii................ 300 193 Japan................... — 30,253 Rope Total............ Kilo 3,185,737 3,592,828 1,445,478 1,429,913 United States. . 1,791,964 2,128,787 461,608 492,773 Indonesia........... 255,359 319,208 58,870 70,708 Chile.................... 228,156 232,690 27,897 24,284 Hongkong........... 193,397 197,008 244,786 199,522 Siam.................... 185,824 184,344 95,162 84,492 Malaya................ 132,077 111,753 2,019 2,953 French East In dies .................. 74,835 79,199 134,136 129,909 Panama, Canal Zone................ 44,373 62,093 12,648 13,551 Hawaii................ 49,690 59,718 7,042 9,039 Puerto Rico.... 62,201 56,131 88,800 66,374 Other countries. 167,861 161,997 312,510 336,308 Molasses Total............Kilo 76,383,640 3,183,383 28,981,465 342,758 Japan.................. 26,295,680 1,433,141 18,447,252 217,677 Great Britain... 30,441,352 1,123,576 Hongkong........... 11,256,992 416,926 3,490,736 40,793 Siam.................... 8,389,616 209,740 7,043,397 84,238 France................. — — 80 50 {Continued at bottom of the next page) Copra meal or Total............ Kilo 32,737,036 3,143,072 28,687,765 2,758,309 United States. . 28,450,592 2,700,712 26,042,081 2,474,705 Denmark............ 3,600,050 375,695 1,618,800 178,502 Hawaii................ 686,394 66,665 671,284 70,902 Belgium.............. — — 355,600 34,200 Scrap metals Total............ Kilo 19,919,698 2,983,914 8,172,846 1,211,802 United States. . 19,919,698 2,983,914 5,386,217 719,909 India.................... — — 585,249 420,263 Hongkong........... — — 1,923,880 61,630 China.................. — — 37,500 7,000 Israel................... — — 240,000 3,000 Tobacco and manufactures Total.................... 2,529,012 1,227,478 Spain................... 1,623,821 734,830 French Africa. . 286,538 French East In dies .................. 220,633 72,136 Pelgium.............. 143,803 74,550 Hongkong........... 126,075 86,543 United States. . 40,102 183,655 Hawaii................ 36,434 24,571 Australia. •......... 23,400 36,058 Guam.................. 8,025 2,572 Japan.................. 6,716 345 Other countries. 13,465 12,218 Gold and con centrates Total 2,231,513 2,238,313 United States. . 2,231,513 2,238,313 Chemicals Total.................... 1,833,283 563,199 United States. . 1,728,456 526,745 Malaya............... 116,693 — Thailand............. 35,575 36,454 Hongkong........... 2,559 — Maguey, un manufactur ed Total............Bale 14,906 1,354,719 3,666 207,743 United States. . 8,166 739,468 25 691 Japan.................. 1,818 173,254 — — Belgium.............. 1,627 143,143 1,040 59,957 France................. 750 72,192 100 6,750 Netherlands. . .. 700 64,220 — — Germany............ 600 56,182 375 19,771 Italy.................... 295 28,493 126 7,178 Great Britain... 300 25,094 — — Sweden............... 300 24,706 — — Hongkong........... 250 18,703 300 16,645 Other countries. 100 9,264 1,700 96,751 Lumber ma nufactures Total.................... 941,021 360,496 United States. . 941,021 358,079 Hongkong........... — 2,417 Abac A, other than rope and manu factures Total.................... 926,927 481,959 United States. . 895,961 451,295 Hawaii................ 28,634 16,490 Switzerland. . . . 1,500 2,682 Japan.................. 400 4,777 Australia............. 288 Guam.................. 144 British Africa. . — 3,147 Peru..................... — 1,615 Hongkong........... — 1,518 Canada............... — 252 Other countries. — 183 338 JTI. FOREIGN TRADE OF THE PHILIPPINES, BY COUNTRIES: FIRST HALF YEAR, 1951 Country | Total 1 Trade | I bution 1 Imports | Per cent 1 distri bution 1 Exports ] ^distri-^ 1 bution Domestic | Exports | Re-Exports Total.......................................... P897.098.164 100.00 P409.888.038 100.00 P487.210.126 100.00 P483.438.666 P 3,771,460 United States.................................. 604,127,036 67.34 279,342,126 68 15 324,784,910 66.66 323,682,685 1,102,225 Japan.................................................. 64,538,513 7.19 32,327,398 7.89 32,211,115 6.61 32,133,323 77,792 Canada............................................... 23,660,260 2 64 15,707,614 3.83 7,952,646 1.63 7,952,646 — Netherlands...................................... 22,673,824 2 53 3,532,234 .86 19,141,590 3.93 19,141,590 — Belgium.............................................. 20,342,296 2.27 2,831,646 .69 17,510,650 3.60 17,510,230 420 Indonesia........................................... 19,996,592 2.23 17,752,416 4.33 2,244,176 .46 319,294 1,924,882 Great Britain.................................. 17,931,110 2.00 5,759,084 1.40 12,172,026 2.50 12,168,868 3,158 Thailand............................................ 11,382,538 10,455,288 1.27 10,892,982 2.66 489,556 .10 464,103 25,453 Guam................................................. 1.16 2,464 — 10,452,824 2.14 10,445,008 7,816 Italy................................................... 8,990,718 1.00 1,590,044 .39 7,400,674 1.52 7,400,674 — Arabia................................................ 8,740,456 .97 8,740,456 2 13 — — — — Venezuela.......................................... 6,765,922 .75 1,750 — 6,764,172 1.39 6,761,364 2,808 France................................................ 6,547,580 .73 939,250 .23 5,608,330 1.15 5,604,330 4,000 Germany............................................ 6,515,009 .73 2,694,464 .66 3,820,545 .78 3,820,545 — Sweden............................................... 5,796,442 .65 606,932 .15 5,189,510 1.07 5,189,510 — Switzerland....................................... 5,781,817 .64 1,638,750 .40 4,143,067 .85 4,138,067 5,000 Hongkong......................................... 5,294,355 .59 3,363,452 .82 1,930,903 .40 1,722,121 208,782 Brazil.................................................. 5,284,286 .59 5,284,286 1.29 — — — — Denmark........................................... 4,557,369 .51 294,812 .07 4,262,557 .87 4,260,403 2,154 Norway............................................. 4,503,726 .50 173,698 .04 4,330,028 .89 4,330,028 — India................................................... 3,794,864 .42 3,032,938 .74 761,926 .16 757,041 4,885 Colombia.......................................... 3,758,872 .42 1,760 — 3,757,112 .77 3,757,112 — Israel.................................................. 3,315,889 .37 — 3,315,889 .68 3,315,869 20 British East Indies....................... 3,309,152 .37 3,263,812 .80 45,340 .01 — 45,340 Spain.................................................. 2,992,909 .33 1,232,526 ■ .30 1,760,383 .36 1,750,743 9,640 China.................................................. 2,958,678 .33 2,051,616 .50 907,062 .19 840,461 66,601 British Africa.................................. 2,732,061 .30 17,652 — 2,714,409 .56 2,710,409 4,000 Argentina.......................................... 1,947,470 .22 1,918,520 .47 28,950 — 22,000 6,950 Malaya.............................................. 1,226,759 .14 993,440 .24 233,319 .05 230,222 3,097 Australia........................................... 1,140,314 .13 949,066 .23 191,248 .04 116,872 74,376 Ceylon................................................ 1,045,314 .12 1,045,314 .26 — — — — Hawaii................................................ 810,010 522,738 .09 128,818 .03 681,192 .14 669,636 11,556 French Africa. . . :........................ .06 — — 522,738 .11 522,738 — Uruguay............................................ 473,462 .05 473,462 .12 — — — — French East Indies....................... 308,540 .03 156 308,384 .06 299,832 8,552 Iran..................................................... 304,998 .03 304,998 .08 — — — — Mexico............................................... 300,300 .03 291,926 .07 8,374 — 8,374 — Morrocco........................................... 275,491 .03 — — 275,491 .06 275,491 — Ireland............................................... 272,565 .03 218 — 272,347 .06 272,347 — Chile................................................... 232,752 .02 62 — 232,690 .05 232,690 — New Zealand................................... 167,276 .02 3,230 — 164,046 .03 164,046 — Portuguese Africa.......................... 165,400 .02 — — 165,400 .03 — 165,400 Poland................................................ 139,832 .02 139,832 .03 — — — — Luxemburg....................................... 126,600 .01 126,600 .03 — — — — Portugal............................................ 125,478 .01 109,654 .03 15,824 — 15,824 — Korea................................................. 102,050 .01 — — 102,050 .02 102,050 — Austria............................................... 95,108 .01 95,108 .02 — — — — Costa Rica...................................... , 93,706 .01 93,706 .02 — — — — Porto Rico....................................... 75,454 .01 — — 75,454 .02 75,454 — Panama, Canal Zone................... 62,093 .01 — — 62,093 .01 62,093 — Panama, Republic of................... 58,194 .01 — — 58,194 .01 58,194 — Czechoslovakia................................ 55,078 .01 55,078 .01 — — — — Turkey............................................... 45,616 .01 34,436 .01 11,180 — 11,180 — Peru.................................................... 27,225 — — — 27,225 — 27,225 — Syria................................................... 25,360 — 240 — 25,120 — 25,120 — Cuba................................................... 24,943 — 19,774 — 5,169 — 5,169 — Egypt................................................. 19,860 — 19,860 — — — — — Lebanon............................................ 18,953 — — — 18,953 — 12,400 6,553 Dutch West Indies....................... 17,697 — — — 17,697 — 17,697 — Ecuador............................................. 14,501 — — — 14,501 — 14,501 — Dominican Republic..................... 12,197 — — — 12,197 — 12,197 — Greece................................................ 5,374 — 5,374 — — — Other U.S. Insular Possessions. . 2,739 — — — 2,739 — 2,739 — El Salvador..................................... 2,234 — 552 — 1,682 — 1,682 — British Oceania............................... 2,166 — 276 — 1,890 — 1,890 — Jugoslavia......................................... 1,334 — 11,334 — — — — — Dutch Guiana................................. 1,129 — — — 1,129 — 1,129 — Honduras.......................................... 825 — — — 825 — 825 — Burma................................................ 625 — — — 625 — 625 — Italian Africa................................. 402 — 402 — — — — — British West Indies...................... 208 — 208 — — — — — Malta, Gozo & Cyprus Islands.. 200 — 200 — — — — — Portuguese China.......................... 32 — 32 — — — — — Shells &• manu factures Total.................... 921,899 United States. . 854,285 Japan................... 54,650 Spain................... 12,964 Italy.................... Canada............... — 3,241 Hawaii................ — 60 759,908 Their exports (including 750,982 re-exports) 15,166,800 9,117,322 5,625 Total exports... 487,210,126 281,552,386 339 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen The Government From Official Sources SEPTEMBER 1—Ptesident Elpidio Quirino enters Johns Hopkins Hospital in Baltimore for a physical check-up. He states to the press that the signing tomorrow of the defense agreement among the United States, Australia, and New Zealand, following the signing yesterday of the Philippine-American defense agreement, "will generate similar defense arrangements among other countries on the Pacific... and that he has no objection to Japan joining a Pacific defense agree ment because he believes this would be one way of assuring that Japan would not again militarily menace the Far Eastern ccfuntries”. The Philippine-American pact, he said, “will go a long way in establishing confidence in the external and internal security of the Philippines.” Sept. 3—Johns Hopkins physicians state that President Quirino is not suffering from any serious illness but should have at least two weeks’ rest. Sept. 4—The President is closely following the San Francisco peace conference, which opens today, by means of a television set in his room. The President creates a committee composed of Administrator Salvador Araneta of the Office of Economic Coordination, Secretary of Finance Pio Pedrosa, and Auditor General Manuel Agregado, to study an offer of the Philippine Sugar Institute to purchase the govern ment-owned Insular Refining Company. He also releases Pl,984,400 to the Manila Railroad Company for the purchase of 10 locomotives from Japan, the release representing the balance of the railroad rehabili tation fund of P20,000,000 authorized by Commonwealth Act No. 707. Sept. 7—Chairman Jose Yulo, of the Philippine Committee on United States Aid (Philcjusa), starts conversations with Washington Economic Cooperation Administration officials concerning ECA ap propriations now pending in the U. S. Congress. Yulo is taking up also questions of procedure in purchasing, processing, and speeding of deli very of ECA goods to the Philippines. Sept. 8—The Philippines is one of the 49 nations out of 52 represented at the San Francisco conference which sign the peace treaty, only Russia, Poland, and Czechoslovakia abstaining. The Philippine signatories who received their final instructions from the President today, are Secretary of Foreign Affairs Carlos P. Romulo, Ambassador J. M. Elizalde, Sen. Vicente Francisco, Chairman of the Senate foreign relations committee, Sen. E. T. Tirona, Rep. D. Macapagal, Chairman of the House foreign relations committee, and Prof. Vicente Sinco. President Quirino states he will comment on the peace treaty in his next monthly "radio chat” to be delivered in the United States for beaming to the Philippines. He expresses a desire to leave Baltimore for home by September 17. Sept. 11—The President confers with Philippine officials who are attending the International Monetary Conference in Washington, in cluding Central Bank Governor Miguel Cuaderno, Minister Emilio Abello, and Dr. Andres Castillo of the Central Bank. Sept. 13—The President returns to Washington and confers with President Truman on priority procurement of materials needed for the Maria Cristina power and fertilizer plants, further military assistance, ECA appropriations, and the unpaid balance of war damage pay ments amounting to $100,000,000. In the afternoon he presents former Senator Millard Tydings with an enlarged copy of the Republic Act which adopted him and the late Senator John McDuffie as sons of the Philippines and conferred Philippine citizenship upon them. The two were the principal authors of the Philippine Independence Law, also known as the Tydings-McDuffie Act. IV. FOREIGN TRADE OF THE PHILIPPINES, BY NATIONALITY OF TRADERS: January — June 1951 (Value in Pesos) Nationality | Total Trade | Imports 1 Exports I 1 (Dom. Sr Re-exp.) 1 Domestic | Exports 1 Re-exports Total................................................. ......... 897,098,164 409,888,038 487,210,126 483,438,666 3,771,460 American................................................. ......... 332,655,019 128,137,828 204,517,191 203,508,285 1,008,906 Filipino..................................................... ......... 258,297,970 156,753,072 101,544,898 100,801,847 743,051 97,638,578 79,375,853 77,443,271 1,932,582 British...................................................... 57,755,927 17,170,622 40,585,305 40,550,663 ’ 34,642 Spanish..................................................... ......... 46,503,703 ■ 2,691,228 43,812,475 43,801,835 10,640 Danish...................................................... ......... 17,314,384 935,994 16,378,390 16,376,236 2,154 Swiss........... .......................................... ......... 4,581,441 4,473,828 107,613 102,456 5,157 Hindu (Indian)..................................... ......... 1,826,948 1,556,574 270,374 270,374 — Syrian....................................................... ......... 330,282 43,760 286,522 286,522 — German.................................................... ......... 302,665 6,472’ 296,193 296,193 — Swedish................... ................................ ......... 203,746 203,746 — — — Argentinian.............................................. ......... 41,390 41,390 — — — Dutch....................................................... ......... 31,842 31,842 — — — Turkish..................................................... ......... 24,436 24,436 — — — Thai........................................................... ......... 21,908 — 21,908 — 21,908 French....................................................... 15,936 15,936 — — — Austrian................................................... 15,250 15,250 — — — Jewish....................................................... ......... 14,306 13,302 1,004 984 20 Belgian................................................................ 14,082 14,082 — — — Polish................................................................... 11,044 11,044 — — — Indonesian.............................................. 10,984 384 10,600 — 10,600 Finnish................................................................ 7,454 7,454 — — — Czech.......................................................... ......... 7,448 7,448 — — — Ecuadorian ........................................................ 2,274 2,274 — — — Cuban......................................................... 2,000 2,000 — — — Italian.................................................................. 1,764 1,764 — — — Irish........................................................... ......... 1,556 1,556 — — — Hungarian.......................................................... 1,462 1,462 — — — Greek........................................................ ......... 1,258 1,258 — — — Australian........................................................... 1,022 1,022 — — — Burmese.............................................................. 402 402 — — — Egyptian.................................................... ......... 390 390 — — — Indochinese........................................................ 384 384 — — — Norwegian................................................. 210 210 — — — Portuguese................................................ .... 88 88 — — — Colombian................................................. 68 68 — — — Korean....................................................... 60 60 — — — Peruvian..................................................... 28 28 — — — Uruguayan................................................ 26 26 — — — Other........................................................... 82,576 80,776 1,800 — 1,800 340 Sept. 14—The President goes to New York City, taking a suite in the Waldorf Astoria Hotel. Sept. 15—Manila radio stations broadcast the President’s regular 15th-of-the-month “radio chat”, recorded on electric tape while in his room at the Johns Hopkins hospital. Speaking of the "four significant events” of the past 10 days, the signing of the four treaties in Washing ton and San Francisco, he states they were “ unprecedented in that they were entirely in the interest of peace”, and that the Philippines has now “gone quite far” both in achieving greater security and a stronger reports to the President. Chairman P. L. Mapa of the Reconstruction Finance Corporation reports to the President on the sack-making in dustry in Cuba where kenaf fiber is being used; the fiber could be produced extensively in the Philippines. Sept. 17—Announced at Malacanan that the Philippine Port Com mission has recommended against the establishment of a free trade zone in Manila on the grounds that Manila would not be able to compete with Hongkong and the project would not be profitable and that it would also be conducive to rampant smuggling. Malacanan announces that the 1952 National Interscholastic Meet scheduled for February will definitely be held in Legaspi City, Albay; Pl00,000 has been appropriated from provincial funds for the construction of the fields, grandstands, swimming popl, and gymnasium, and aid of an additional P 1,500,000 has been assured by the Charity Sweepstakes Office. Sept. 17—Reported that American Embassy officials have con ferred with Secretary of National Defense Ramon Magsaysay regarding the kidnapping of Henry W. Corp, of the Pampanga Sugar Mills, by a band of Huks on the 13th of this month. An old-timer and an engineer by profession, Corp came to the Philippines in 1908, and was connected with the old Bureau *of Lands, the Manila Railroad Company, and various sugar centrals. Sept. 18—President Quirino in his suite at the Waldorf Astoria receives a call from General Douglas MacArthur, which event is later televised. At a press conference the President reveals that he has ac cepted an invitation from Generalissino Francisco Franco to visit Spain as the country’s official guest. He plans to leave New York on the S.S. Constitution on the 25th, having been advised by his physi cians to take an ocean trip. He will be in Spain for 6 days after which he may take a ship to the Philippines, or if a ship is unavailable, fly back to New York and from there return to the Philippines by air. The Department of Foreign Affairs announces that Philippine diplomatic and consular establishments abroad have been requested to submit regularly to the home office market and foreign trade reports, together with market surveys, lists of trade opportunities, price lists, etc. Sept. 19—The President confers with Chairman Yulo on a pro jected survey of the Manila Railroad Company by American engineers with a view to rehabilitating the company, possibly with ECA aid. Central Bank Governor Cuaderno, addressing a group of 70 leading bankers and industrialists in New York, at a luncheon in his honor, declares that the Philippine peso will not be devaluated, and that mea sures have been taken to arrest inflation and to maintain the stability of the Philippine international financial position. He states the policy of the Philippine Government is for free enterprise and invites American capital to invest in the Philippines. Sept. 20—President Quirino confers by radio-telephone with Secretary Magsaysay concerning the kidnapping of Governor Gregorio Santayana of Quezon Province yesterday; the Secretary assured him that every effort is being made to rescue him. Sept. 21—The Cabinet, in a session presided over by Vice-President Fernando Lopez, approves a recommendation of Under-Secretary of Education Cecilio Putong, to return to the whole-day session plan in the public schools and to reduce the teaching-load of the teachers. The Cabinet also approves certain appraisal rates for the former Japanese abaca and coconut lands in Davao Province for sale to army veterans,—7105 to 7140 a hectare for coconut lands, plus from Pl.40 to P5.60 a tree, and from P30 to P90 a hectare for abaca land plus P0.20 to P0.40 per abac& “hill”. These rates were recommended by Budget Commissioner Pio Joven, Chairman of the Board of Liquida tors, and though lower than the prevailing values are considerable higher than those formerly set by the National Abaca and Other Fiber Corporation. Three Manila policemen are killed and one is wounded in a clash with two Huk “liquidation squad” men in Tondo, Manila; one Huk was killed and the other wounded. Sept. 22—The President, in New York, expresses his joy when in formed of the release of Governor Santayana by his kidnappers; reported that the Governor’s family paid a P12.000 ransom. Nic Pamintuan, Huk gun-man wanted for a dozen murders, in cluding the killing of Col. V. Salgado, senior aide to Maj. Gen. M. N. Castaneda, when the two were ambushed in Quezon City last year, kills two Manila policemen and one army intelligence officer before he himself is killed in an encounter in barrio Otis, Manila. Sept. 24—Following a number of political murders and kidnap pings in several provinces, Secretary Magsaysay, in a conference with Sen. Eulogio Rodriguez, President of the Nacionalista Party, cautions him against holding political meetings at night. In a directive to mili tary area commanders, the Secretary has ordered the disbandment of civilian guards and temporary policemen found electioneering and the immediate arrest and prosecution of all who engage in “political ter rorism”. He has also ordered an investigation of the so-called political "flying squads” and “commandoes” in Cebu province. Sept. 25—President Quirino, in New York, boards the S.S. Consti tution for Spain, accompanied by his daughter and her husband, Chito Gonzalez, and a personal staff, and also by PHILCUSA Chairman Jose Yulo and J. Amado Araneta. Foreign Secretary Romulo and Ambas sador J. M. Elizalde, who will enplane for Manila on the 29th, were among those who saw the President and his party off. The Cabinet directs the Rice Emergency Board to look into the reported soaring price of rice. The price of imported rice is pegged at Pl.05 to Pl.10 a ganta, but these ceiling prices do not apply to native rice, which is considered of better quality. Native rice has recently been selling at from Pl.40 to Pl.60 a ganta. Sept. 27—The President, en route to Spain, is reported to have approved Secretary Magsaysay’s plan to increase the number of batta lion combat teams in the Army. The Cabinet, at the request of the Director of Posts, approves exempting the Philippine Embassy in Washington from Executive Order No. 107, prohibiting advance payment on government contracts, in the matter of a contract for the printing of Philippine postage stamps, the printers requiring a 25% down payment. The Cabinet, on recommendation of the PHILCUSA and the LASEDECO, approves sending Dean J. A. Valmonte, of the College of Business Administration, University of the Philippines, Luis Lichauco, Chairman of the board of directors of LASEDECO, and Fernando A. Santiago, of the Department of Justice, to the Interna tional Conference on Land Tenure, in Madison, Wisconsin, opening October 7, and sponsored jointly by the U. S. State Department and the ECA. Sept. 29—The President is reported to have ordered the release of Pl,984,400 for the purchase of 10 locomotives for the Manila Railroad Company, the money to be taken from the unallocated balance of 715,000,000 out of the 7200,000,000 advanced to the Government by the Central Bank. Announced that the President has summoned Minister Proceso Sebastian in Paris and Minister Jose Romero in London to confer with him in Madrid. The President will disembark at Cadiz on October 1 and proceed from there to Seville; on the 2nd he will fly to Madrid where he will be received by Generalissimo Franco. Sept. 30—Announced that the President, on recommendation of former Secretary of Education Evangelista, has approved a relaxation of the restrictions on teaching by government officials and employees; they will be permitted to teach from 10 to 12 hours a week. Banking and Finance By G. R. Hutchison Manager, Port Area Branch National City Bank of New York COMPARATIVE statement of condition of the Cen tral Bank: 7793,629 Pl,008,667 Pl,011,460 Pl,034,599 As of As of As of As of Dec. 31 June 29 July 31 Aug. 31 ASSETS 1949 1951 1951 1951 (In Thousands of Pesos') International Reserve. .. 7460,689 7544,207 7534,213 7542,313 Contribution to Interna tional Monetary Fund 30,000 30,000 30,000 30,000 Account to Secure Coinage..................................... 113,306 107,570 107,570 107,570 Loans and Advances.... 77,047 19,608 29,608 39,608 Domestic Securities......... 92,197 234,536 231,760 231,206 Trust Account — Securi ties Stabilization Fund — 6,848 6,848 6,848 Other Assets...................... 20,390 65,898 71,461 77,054 LIABILITIES Currency —Notes............. 7555,576 7634,443 7611,406 7588,994 Coins.............. 74,384 93,682 93,616 93,515 Demand Deposits—Pesos 117,682 202,970 210,170 254,564 Securities Stabilization Fund................................. 2,000 6,848 6,848 6,848 341 Due to International Monetary Fund............ 22,498 496 496 496 Due to International Bank for Reconstruc tion and Development 2,389 2,383 2,383 2,383 Other Liabilities............... 2,636 46,726 64,190 64,322 Capital................................. 10,000 10,000 10,000 10,000 Undivided Profits............. 6,464 7,430 8,662 9,788 Surplus................................. — 3,689 3,689 3,689 P793.629 P1,008,667 P1,011,460 Pl ,034,599 *t*he downward trend of the international reserve figure for three consecutive months was halted as the Central Bank’s Statement of Condition as of August 31, 1951, reported an increase of about ?8,000,000 as compared with the reserve figure reported on July 31, 1951. However, the reserve figures including foreign exchange holdings of other banks, are not available as of August 31, 1951, but it is believed that cash balances abroad were depleted to cover negotiations under outstanding letters of credit. The downward trend in currency circulation continued during August with P682,508,000 outstanding at the end of the month, as compared to P705,022,000 on July 31, 1951. Collections continue satisfactory, and there is a much healthier feeling about general credit conditions than two months ago. Interest rates remain unchanged. On September 4, 1951, it was announced that the Central Bank approved remittances of the fourth 10% installment of 1949 profits to investors abroad. The total 1949 profits due non-resident stockholders and investors is estimated to be $17,200,000. The new authorization will bring the total authorized to $6,800,000, leaving $10,400,000 for future remittances on the installment plan. Collections of taxes on sales of foreign exchange are reported to be averaging about ?13,000,000 monthly. The tax went into effect on March 29, 1951, and the Govern ment is hopeful of collecting about P120,000,000 during 1951 from this source. Reports from Washington indicate that Central Bank Governor Miguel Cuaderno is optimistic of obtaining a loan of $25,000,000 from the Export-Import Bank for financing equipment required for the Ambuklao hydro-electric pro ject on Luzon. 1951 Range High Low 113.97 88.11 0.305 0.16 0.06 0.028 0.39 0.21 0.13 0.08 2.80 2.00 0.003S0.002 5.30 4.10 0.09 0.026 0.017 0.011 0.275 0.16 0.16 0.075 0.045 0.031 0.80 0.59 0.038 0.024 0.43 0.295 0.017 0.011 0.09 0.06 0.27 0.17 0.355 0.22 0.035 0.02 0.105 0.05 MINING SHARES M. S. E. Mining Share Acoje Mining ComHigh Low Close 104.77 98.38 104.77 Antamok Goldfields. . Atok Big Wedge MinBaguio Gold Mining Balatoc Mining ComBatong Buhay Gold Benguet Consolidated* Coco Grove, Inc......... Consolidated Mines, Inc.*.......................... Hixbar Gold Mining Co.............................. Itogon Mining Com pany .......................... I.X.L. Mining CornLepanto Consolidated. Masbate Consolidated. Mindanao Mother Lode.......................... MisamisChromite.Inc. Paracale Gumaus San Mauricio Mining Surigao Consolidated. Suyoc Consolidated .. United Paracale Min - *—Ex-Dividend 1951 Range High Low ■’.00 105.00 143 100 00 75.00 171 00 152.00 105 00 30.00 0 36 4 35 0 18 0 315 0 0 12 12 105 0 .305 .055 255 042 225 .11 t .50 2 .0165 .275 .16 .32 .22 .355 .022 1025 20 003 75 07 0155 235 04 63 03 .295 .20 .33 .022 .095 COMMERCIAL SHARES 285 0525 23 50 0033 75 09 016 26 15 04 71 037 31 012b 085b 22 355 022 .1025 Change Total Sales Up 6.39 11,041,418 Up .03 746,400 Up .0115 184,000 Off .005 564,250 Up .005 244,500 Up .45 13,000 Up] .0001 590,000 Off .05 13,565 Up .015 460,000 Up .0015 3,460,00 Up .02 444,000 Up .0225 431.00 Off .005 33,000 Up .08 529,000 Up .006 949,760 Off .01 534,500 — 62,000 Up .025 334,430 Off .005 20.000 Up .0075 251,000 Manila Stock Market By A. C. Hall Hall, Picornell, Ortigas & Co. August 25 to September 21 BULLISH factors have assumed ascendency during the past month’s trading. The strength in world metal markets has imparted a firm tone to local base-metal shares, particularly Lepanto Consolidated. Press reports that the International Monetary Fund might be disposed to sanction sales by producing countries of semi-processed gold at premium prices has helped sentiment toward gold mining shares in other markets, and the improvement has been reflected here to some extent. The tendency toward less stringent conditions in the local money market has also contributed to better investment sentiment. The technical action confirms the opinion expressed in this column last month, and the primary trend is now classified as bullish. The price of gold in the local free market has remained steady during the month around Pl20 per fine ounce. In the commercial and industrial section of the market, the steady demand for investment issues has continued at improved prices. Fixed interest securities have developed a slightly easier trend since our last review. High Low Close Change Total Sales 27 3 80 0 16 25 0 0 50 100 0 7 27 143.00 140.00 100.00 98.00 105.00 105.00 .16 .16 00 Up .00 148 100 00 Up 1.00 350 170 105 00 42 00b 315 00b 27b 20b 16 Off .02 25 11,500 .30 .12 30 12 .30 .12 Up .02 Bank of the Philippine Central Azucarera de Cent. Azucarera de la Cariota...................... Cent. Azucarera del Pilar.......................... Cent. Azucarera de Tarlac....................... China Banking Cor poration .................... Manila Broadcasting Co............................... Manila Wine Mer chants, Inc............... Marsman & Co., Inc. Marsman 8c Co., Inc. pref............................ 085 Mayon Metal.............. 085 Mayon Metal 7% pref............................ Meralco 6-1 /2 %........ Metropolitan Insur ance Co.................... Pampanga Bus Co.... Philippine Air Lines... Philippine Guaranty Co., Inc.................... 012 Philippine Oil Dev elopment Co., Inc.. San Miguel Brewery— San Miguel Brewery— 7% pref.*................. San Miguel Brewery— 8% pref.*................. Universal Insurance & Indemnity................ Williams Equipment Co. com.................... 00 .12 104.00 104 12 00 100,000 T1.340 75 0 50 7 50 27 7.50 '.50 0 0525 0 37 00 26 50 150 7 00b 50b 50 Up .50 350 100 00 94 105 16 00 7 00 00 IS 00 00 6 50 27.50 27.50 .0525 .02 37.00 35.00 100.00 105.50 15.00 15.00 7.00 50 035 Up .02 961,250 36 00 100 00 102 50b 15 00 7.00 7 00 Up 2.00 42,815 2,060 Up .50 210 Off 1.00 400 *—Ex-Dividend T—Bond sales reported in units of Pl00 OVER-THE-COUNTER Benguet Explorations........................ Cia. Tabacalera Bonds..................... Cia. Maritime..................................... Manila Jockey Club........................... Ortigas, Madrigal y Cia................... Victorias Milling Co., Inc................ Low Close Total Sales P0.02 r 0.02 24,000 1000.00 1000.00 50 70.00 70.00 51 2.35 2.35 3,805 16.00 16.00 5,000 175.00 175.00 443 “ %WTHAT are we Americans up to in Asia? What are our ▼ ▼ purposes as we work out our relations with the great peo ples of that vast area? “THE things we Americans want for the people of Asia are the same things we want for the people of the rest of the world and indeed, for ourselves. . .”—Assistant Secretary of State Dean Rusk 342 October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 343 Electric Power Production (Manila Electric Company System) By J. F. Cotton Treasurer, Manila Electric Company 1941 Average—16,316,000 KWH KILOWATT HOURS 1951 1950 January........................................................... 40,713,000 37,661,000 February........................................................ 37,066,000 33,828,000 March.............................................................. 40,117,000 38,107,000 April................................................................ 39,197,000 35,378,000 May................................................................. 40,405,000 37,611,000 June................................................................. 40,712,000 37,529,000 July.................................................................. 42,041,000 38,774,000 August............................................................ 42,817,000* 39,872,000 September...................................................... 41,808,000** 38,791,000 October................................................................................ 40,657,000 November........................................................................... 39,268,000 December............................................................................ 41,099,000 Total.............................................. 458,576,000 ••Partially Estimated 'p'HE average daily output in September set a new record, although the monthly total was down from August because of the shorter month. There was an increase of 3,017,000 kwhs or 7.8% over September, 1950. A new daily output record of 1,513,200 kwhs was set on Sep tember 14. Output in October is expected to approach 44,000,000 kwhs. Real Estate By Antonio Varias Vice-President, C. M. Hoskins & Co., Inc., Realtors REAL ESTATE sales in the Greater Manila area registered during the month of September numbered 519, with a total value of P5,818,368, as compared with 639, with a total value of P5,321,401, registered during the preceding month of August. Of the September total, 180, with a total value-of ?3,879,750, represented deals within Manila proper, while 339 sales, with a total value of Pl,938,618, were sales within the cities of Quezon, Pasay, and in the suburban towns of Caloocan, Makati, Malabon-Navotas, Mandaluyong, Paranaque, and San Juan. Among the bigger sales registered during the month were: A whole block with a total area of 17,996.7 square meters in Intramuros, bounded by Muralla, San Francisco, Solano, and Novales streets, sold by La Corporacion Franciscana to Mapua Institute of Technology for Pl,050,000, or about P50 per sq. m. A 4-story reinforced concrete building with a lot of 739.3 square meters dn Dasmarinas, corner Plaza Sta. Cruz, sold by Ayala and Company to the Philippine Bank of Commerce for Pl,000,000; A tract of 4,854.9 square meters on Inverness Street, Sta. Ana, sold by Stewart Tait to Vicente G. Sinco for P87.388, or about P17 per sq. m; A property with a lot of 4,236.8 square meters in Paco, sold by See Pian to Jose Soriano for P225,000; A property with a lot of 1,625 square meters at Gov. Forbes and Dos Castillas streets, Sampaloc, the former Instituto de Mujeres and presently “Roseville College”, sold by Instituto de Mujeres, Inc., to Francisco Villaroman Foundation for P200.000; and when your car needs a friend... APPLIED BY CHART, NEVER BY CHANCE CALTEX (PHILIPPINES) INC. In rain or sunshiny weather MARFAK provides a tough lubricant that absorbs shock and friction—seals out dirt and moisture. MARFAK won't squeeze out, stays longer and gives all-weather protection. 344 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1951 A property with a lot of 1,517.2 square meters on Carolina Street, Malate, sold by Jose Araneta to Lourdes de la Rama Osmena for P66,000, or about P44 per sq.m. Real estate mortgages registered in the Greater Manila area during the month of September numbered 469, with a total value of Pll,914,165, as compared with 495, with a total value of P15,268,147, registered during the month of August. Of the September total, 201, with a total value of P6,110,125, represented deals within Manila proper, and 268, with a total value of P5,804,040, were deals within the cities of Quezon and Pasay, and in the suburban towns mentioned above. REAL ESTATE SALES (From January to September, 1951) Manila Quezon City Pasay City Suburbs Total January.. P4,466,475 Pl,267,690 P743,346 Pl,453,264 P7,939,775 February 3,549,050 3,775,341 709,598 1,411,773 8,445,762 March... 4,562,104 1,698,970 645,878 1,814,525 4,738,654 8,721,477 April.... 5,272,052 1,178,036 487,954 8,676,696 May........ 2,586,055 1,394,514 819,779 1,505,885 6,306,233 6,601,585 June........ 2,793,341 1,435,895 578,954 1,793,395 July......... 2,839,423 1,066,942 497,387 1,697,312 6,101,064 August... 1,890,113 1,986,826 149,318 1,295,144 5,321,401 Sept........ 3,879,750 946,647 119,942 872,029 5,818,368 REAL ESTATE MORTGAGES (From January to September, 1951) January.. P2,105,600 P 490,457 P272.300 Pl,051,546 P3,919,903 February 5,636,640 1,106,948 869,100 1,722,790 8,334,848 7,408,114 March... 3,817,877 1,373,880 245,760 1,970,627 April.... 3,140,154 902,932 188,750 1,057,926 5,289,762 May........ 3,753,891 1,150,614 372,032 1,231,810 6,508,347 June........ 4,215,944 5,184,350 869,144 1,531,450 11,800,888 July......... 3,233,375 1,188,026 351,750 1,925,497 6,696,648 August... 9,413,329 1,926,098 757,300 3,171,420 15,268,147 Sept........ 6,110,125 2,860,320 289,760 2,653,960 11,914,165 Building Construction By Juan J. Carlos President, United Construction Co., Inc. DURING the month of August, the Office of the City Engineer approved building permits for construction work amounting to P3,109,275. For the same period last year, the volume of work authorized amounted to P2,412,235, in comparison with P4,150,280 in 1949 and P7,568,950 in 1948. Among the big projects that were started during the month under review were: A 4-story college building for the University of the East on Gastambide, Sampaloc, costing P470.000. Two bodegas at Paz Street, corner Cristobal, Paco, for Tan Heng, estimated at P100.000. Knox Memorial school building at 910 Rizal Avenue, Sta. Cruz, costing P100.000. A commercial building on Teodora Alonzo for Gotamco Hermanos estimated at P110.000. Gonzalo Gon Hok,—3-story apartment building on Callejon Reina costing P400.000. The selling wave in essential items brought in by new importers who had neither sufficient storing facilities nor enough financial backing to hold on to their stock, ended this month, and price increases were registered immediately. Galvanized-iron sheets, which hardware men consider as an infallible barometer of the market situation, are now being quoted at P9.30-P9.60 a sheet, which is still below the ceiling price of P10.56. Five weeks before, there were transactions in this item at P8.00 a sheet. Following the upward trend, all steel products including reinforcing Steel bars, galvanized-iron wire, and other items also regis tered increases in price. From all indications, it can be expected that prices will be steady during the next 60 days. 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 ★ ★ ★ Operating: General & Sales Office MACHINE SHOPS • STEEL PLATE SHOPS 174M. deComillas STRUCTURAL STEEL SHOPS • WELDING Manila . SHOPS • BLACKSMITH SHOPS • SHEET Tel. 3-29-21 METAL SHOPS • MARINE RAILWAY Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 345 Ocean Shipping and Exports By B. B. Tunold Secretary-Manager Associated Steamship Lines TOTAL exports for the month of August this year showed an increase of approximately 54,000 tons over exports.during August of last year. One hundred fourteen vessels lifted 303,612 tons of exports during the month, as compared to 249,118 lifted by 99 vessels, during the same month last year. Commodities which have registered sharp increases over last year’s figures for the same month are: copper concentrates from 2,566 to 8,803 tons; empty cylinders from 369 to 1,753 tons; logs from 3,667,222 to 14,088,927 bd.ft., and iron ore from 45,628 to 93,838 tons. Exports for August, 1951, as compared with exports for August, 1950, were as follows: Commodity 1951 1950 Alcohol...................................... 27 tons ' 29 tons Beer............................................ 240 ” 50 ” Coconut, desiccated............. . 5,677 ’’ 14,561 ” Coconut oil.............................. 8,803 ” 7,535 ” Concentrates, copper........... 9,503 ” 2,566 ” Concentrates, gold................ 542 ’’ 487 ” Copra........................................ 78,435 ” 81,084 ” Copra cake, meal................... 4,313 ” 6,722 ” Embroideries.......................... 352 ” 213 ” Empty cylinders.................... 1,753 ” 369 ” Fish, salted.............................. 18 ” 29 ” Furniture, rattan. . .......... 1,230 ” 936 ” Glycerine................................. 136 ” — Gums, copal............................ 119 ” 84 ” Gums, elemi............................ 27 ” — Hemp........................................ 96,568 bales 67,276 bales Household goods..................... 314 tons 776 tons Logs............................ 14,088,927 bft. 3,667,222 bft. Lumber..................................... 4,102,360 ” 3,714,730 ” Molasses................................... 4,185 tons 5,949 tons Plywood................................... 5 ” 154 ” Ores, chrome........................... 24,800 ” 22,352 ” Ores, iron................................. 93,838 ” 45,628 " Ores, manganese.................... 450 ” — Pineapples, canned............... 5,344 ” 8,375 ” Rattan, palasan...................... 206 ” 268 ” Rope.......................................... 551 ” 191 ” Rubber................................... 139 ” 108 ” Shell, shell waste................... 11 ” 26 ” Shell buttons.......................... 21 ” — Sugar, cent./raw.................... 9,000 ” 17,847 ” Sugar, muscovado................. 498 ” — Tobacco.................................... 1,588 ” 514 ” Vegetable oil........................... 69 ” 120 ” Transit cargp.......................... 887 ’’ 537 ” Merchandise, general........... 550 ” 5,964 ” Mining By Nestorio N. Lim Secretary, Chamber of Mines of the Philippines PHILIPPINE MINERAL PRODUCTION JULY, 1951 GOLD AND SILVER Gold.................... 4,082 Oz. Atok-Big Wedge Mining Co............. Silver.................. 1,947 Oz. Milled Ore. . . . 14,495 S.T. Gold.......... 7,744 Oz. Balatoc Mining Co................................ Silver.................. 5,750 Oz. Milled Ore. . 37,267 S.T. Gold.......... 8,794 Oz. Benguet Consolidated Mining Co... Silver........ 6,530 Oz. Milled Ore ... . 37,450 S.T. Gold.......... 3,539 Oz. Lepanto Consolidated Mining Co... Silver.................. None Milled Ore. . . . 30,314 S.T. Gold.................... 4,259 Oz. Mindanao Mother Lode Mines, Inc Silver................. 4,368 Oz. Milled Ore. . . . 9,700 S.T. Gold................... 3,990 Oz. 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. Insular Saw Mill, Inc. 814 Echague 14-30 Soler St. 340 Canonigo, Paco Manila Manila Manila MANILA OFFICE: 401 FILIPINAS BUILDING 346 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1951 Surigao Consolidated Mining Co.. . . Tambis Gold Dredging Co., Inc.... Surigao Placer......................................... Nor-Min. Venture................................. Silver............... 3,888 Oz. Milled Ore. . . 11,665 S.T. Gold................. 110 Oz. Cu. Yd............ 12,000 Gold................. 175 Oz. Cu. Yd............ 45,000 Gold................. 202 Oz. Silver............... 41 " Cu. Yd............ 26,400 To the United States, we shipped 3,163,300 bd. ft. of sawn lumber and 4,562,977 ft. of logs, consigned mostly to West Coast concerns. As released by the Bureau of Forestry, the export of lumber and logs for the month of August was as follows: BASE METALS Consolidated Mines, Inc........ Acoje Mining Co...................... Lepanto Consolidated............. Mindanao Mother Lode Mines Surigao Consolidated............... Philippine Iron Mines, Inc... Samar Mining Co., Inc.......... Marinduque Iron Mines........ Amalgamated Minerals........... Ref. Chromite Ore.. Met. Chromite Ore. Metalic Copper .... ” Lead............ Iron Ore .................. Manganese Ore. . . 25,255 M.T. 1,200 M.T. 1,074 M.T. 21 ” 36 ” 62,171 ” 28,982 ” 4,982 ” 1,800 ” Lumber By Luis J. Reyes > Philippine Representative, Penrod, Jurden & Clark Co. DURING the month of August, shipments abroad were about the same as those during July, namely 22,856,292 bd. ft., as compared to 22,290,533. The demand for peeler logs in Japan is heavy and exporters say that prices are satisfactory. As usual, shipments to Japan consisted entirely of round logs which in that country are employed for veneer purposes. It is not improbable that some of the logs are also sawn into lumber and used for furniture and in con struction. It is for this reason that even before the war the Japanese imports consist mainly of logs. Shipper Agusan Timber Corporation.................... Anakan Lumber Company, Inc............... Basilan Lumber Company, Inc.. . . Bislig Bay Lumber Company, Inc............... Cipriano Luna....................... Dee Cho Lumber Company Getz Bros. & Company. . . Gulf Lumber Company. . . Insular Lumber Company, Inc.......................................... J. S. Alvarez.......................... Johnston Lumber Com pany...................................... Marsman Development Co., Inc.......................................... Mar th Lumber Mill.......................... Mindoro Planing Mill........ Misamis Lumber Company, Inc.......................................... Nasipit Lumber Company, Inc.......................................... Paniran Sawmill.................... Philippine Lumber Com pany...................................... Sta. Clara Lumber Company,' Inc. Valda Lumber Manufac turer’s Co............................ Destination Lumber U.S.A. Japan U.S.A. Japan Canada U.S.A. Japan Hongkong U.S.A. Japan Japan Guam M. T. South Africa Japan 1,602,103 105,785 333,405 27,863 South Africa U.S.A. 454,803 8,405 Japan Japan Japan U.S.A. South Africa U.S.A. 45,065 Japan U.S.A. U.S.A. 986,663 6,530 Japan U.S.A. Japan 15,012 U.S.A. 166,177 Logs 648,970 152,325 799,984 999,991 99,998 996,085 1,121,996 1,152,681 1,217,316 220,027 549,962 251,248 399,855 1,199,796 778,017 650,500 1,601,601 764,938 695,669 750,000 if Your Savings elp Production You play an important role in pro duction when you deposit a part of your income regularly every month, because your bank makes your savings available as loans to business and in dustry while earning interest for you. Your Savings Work For Progress And For You THE NATIONAL CITY BANK OF NEW YORK &ivit in W&rfd Wide tfian/ciny Branches In The Philippines MA NILA Main Branch: Juan Luna St. PAMPANGA: Clark Field Port Area 13th Street CEBU: Cebu City October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 347 West Basilan Lumber Com pany...................................... U.S.A. 500,159 Western Mindanao Japan 2,800,669 Lumber Co., Inc.......... U.S.A. 616,033 Woodcraft South Africa 51,721 Works, Ltd.................... Hongkong 85,000 Totals..................................................... 3,888,472 18,967,820 Resum6 of Exports to: Lumber Logs Japan.............................................................. — 12,583,215 United States and Canada..................... 3,163,300 4,562,977 Other countries............................................ 725,172 1,821,628 At the request of the Philippine Lumber Producers’ Association, the Government, is sending Director Florencio Tamesis to Tokyo to look into the log trade between the Philippines and Japan. Other matters, such as the method of scaling and grading of logs and lumber will no doubt be looked into also by Mr. Tamesis. Forester Luis Aguilar, in charge of the wood technology section of the Bureau, is accompanying him and will assist in the observation of the wood-using industries in Japan. Prices in the local markets have taken another drop of from P10 to P15 per thousand bd. ft., thus tangile now is wholesaling at Pl70 and apitong ahd white lauan at Pl60. This drop was due to the failure of Philippine lum bermen to win the tender of the U.S. Army during the month, and it seems likely that prices will stay at this level until the building season which generally begins in October. As as result of the low prices, many small saw mills have again suspended operation until such time as they will once more be able to make a profit. This is partic ularly true of the mills in Bataan which find logging diffi cult and costly during the rainy season. Copra and Coconut Oil By K. B. Day and D. C. Keller Philippine Refining Company, Inc. August 16—September 15 DURING the period under review, we have seen both the copra and coconut oil markets fall from the open ing prices to slightly lower levels but recover toward the end to finish on a fairly firm line. The copra market opened with offers of $180 per short ton c.i.f. Pacific Coast, but soon weakened to, $175, at which level it remained until the last week of the period when the market suddenly strengthened and business was done at $182.50. In Europe, however, while copra was traded at $217.50 per long ton c.i.f. on August 16, the market dropped steadily to $210 and only partly recovered at the end of the period when a little buying interest forced the price back to $213.50. German purchases, under Ausschreibung, of sub stantial quantities of Indonesian copra, during this period did not have such an apparent effect on the Philippine market as was previously noted. In Manila the local copra market fell from a high of P33 per 100 kilos at mid-August, to a low of P31.50 at mid-September. Lack of buying interest resulted in coconut oil falling from 13-3/4 cents per lb. f.o.b. tank cars Pacific Coast, to a low of 12-3/4 cents at the end of August, when a spas modic and desultory interest brought the market back to 13-3/4 cents at the end of the period. The European market, however, was a little brighter and prices rose fairly steadily from $310 per ton c.i.f. to $315, although further rumors of another devaluation of European currencies have re sulted in a general wariness and a reluctance to trade on anything but a small scale. The Pacific Coast market for copra meal continued very strong and from the opening price of $67 per short ton c. and f., continued demand, based on inadequate sup plies, forced the price up to $71.50 at the end of the period. REMEMBER THE FOLKS AT HOME! A box of put up in attractive holiday packing is a much appreciated CHRISTMAS PRESENT. The cigars can be mailed direct from the factory or delivered from our New York stock, to any place within the United States. Your personal card can be enclosed. PRICES for shipment from Manila by ordinary parcel post, (including postage, the U.S. Internal Revenue Tax to be paid by recipient): Shape Packing Per box CORONAS 25’s Standard P 8.75 id 25’s Boite Nature 9.50 id 50’s Boite Nature 16.00 id 25’s Tesorito 14.50 id 50’s Tesorito 22.50 ESPECIALES 25’s Standard 7.75 id 25’s Boite Nature 8.25 ALCALDES 25’s Standard 7.25 id 50’s Standard 11.50 BELLEZAS 50’s Standard 7.50 Place your order now. Parcel post shipments from Manila should be forwarded NOT LATER THAN THE EARLY PART OF NOVEMBER, to assure arrival at destination before the holidays. PRICES for deliveries ex New York, (all expenses, including U.S. Internal Revenue Tax, prepaid; Reci pients pay no charges whatsoever): Shape Packing Per box CORONAS 25’s Standard P10.50 id 25’s Boite Nature 11.00 id 50’s Boite Nature 20.50 ESPECIALES 25’s Standard 9.50 Ask for Illustrated Folder ALHAMBRA CIGAR & CIGARETTE MFG. CO. P. O. Box 209—Tel. 2-64-94 31 Tayuman, Tondo—Manila 348 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1951 Substantial quantities were purchased by Copenhagen with “Free” dollars, and we expect our Danish customers to re-enter the market on a larger scale in the near future with an E.C.A. allocation. We are confident, therefore, that meal prices will continue strong, and, providing the demand from the Pacific coast is sustained, we look for further increases for September/October shipment, at least. Copra and oil exports in August hit a new high for the year, totalling in terms of copra just over 92,400 tons. Of these exports, however, less than a third was shipped to the United States, and curiously enough, the same per centage applied to oil as to copra. The export statistics follow: Copra United States. Canada........... Europe........... Others............. 24,984 long tons 2,750 ” 41,701 ” 9,000 ” Total................................. 78,435 long tons Fairbanks-Morse DIESEL GENERATING SETS Coconut Oil United States Atlantic Coast..................................... Europe...................................... India..................................... 2,848 long tons 5,150 ” 805 ” Here's dependable electric power at low cost . . . Fairbanks-Morse Model 32 Diesel Gen erating Sets! They arc designed and built in their entirety by one reliable and establish ed company. This Model 32 Diesel Engine commands world-wide preference! Today, even after thirty years, Diesels of this type are still in active service. A 2-cycIe, slow-speed, heavy-duty Diesel, this engine ranges in size from 120 to 450 h.p.—featuring efficient fuel injection, highly automatic exhaust scaveng ing and open-type cylinder head. Sets can be supplied in either A.C. or D.C. For full de tails on this dependable, low-cost electric power, call on us todny. -------------------- Other F-M Lines--------------------DIESEL ENGINES ¥ MOTORS * MAGNETOS PUMPS ¥ SCALES ¥ FARM EQUIPMENT Exclusive Distributors ATLANTIC, GULF & PACIFIC CO. OF MANILA Merchandise Sales Division Robert Dollar Bldg., Muclle del S. Francisco & 23rd Street Port Area, Manila Tel. 3-36-61 (Connecting all Depts.) Total................................. Copra Cake or Meal Pacific....................................... Honolulu.................................. India.......................................... Europe...................................... 8,803 long tons 3,583 long tons 180 ” 500 ” 3,700 ” Total................................. 7,963 Indonesian copra exports are 84% over 1950 and may come close to 500,000 tons for the year. This increase is surprisingly large, and is doing much to service European demand. The Spanish and Italian olive crops are also far ahead of 1950. These, coupled with the bumper cotton and oil crops in the United States plus a heavy hog-run, add up to an easier fats and oils picture for future months. But of course this does not necessarily mean lower prices for specific oils in individual countries. One fact does stand out: American buying of copra and coconut oil has been very limited. For the first 7 months of 1951, shipments of oil and copra, though differently distributed, just about balanced with last year, but August was over 30,000 tons short. Consumer demand was notably absent. It is entirely possible that the American pipelines, so well filled in January, may be reaching a point where they will require larger and more regular supplies in the near future. This is worth watching. The height of the copra season has passed and there are signs of gradually slackening production. This may make for occasional squeezes, so favored by middlemen^ for the Philippine market appears quite fully committed for September at least. This could cause a temporary hardening of prices. Europe has been the biggest customer for Philippine copra and oil in 1951. Some surmises have been made that a part of these supplies have drifted through Europe back of the Iron Curtain. While a certain amount of two-way trade in various commodities is allowed, and in fact is bene ficial to the West as well as the East, our informants report they have seen no signs of any copra or coconut oil being involved in this trade. tn Washington, the House Ways and Means Committee -*-has been conducting hearings on H. R. 1535, known as the “Customs Simplification Bill.” The Philippines is interested in Section 23 of this Bill which would convert the processing or excise tax of 3/ per pound into a duty. The Philippine Government together with both American and Philippine crushers and copra traders has made strong representations looking toward the complete elimination October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 349 of the excise tax, now anachronistic, and severely prejudicial to Philippine producers and the dollar-value of Philippine exports. There is considerable sympathy for the Philip pine point of view, but the general opinion in Washington is that H. R. 1535 is not the vehicle for accomplishing the desired change. And so it seems unlikely that this change, which would add the better part of $15,000,000 annually to our export balance, can be expected. shipping space for copra and oil is at present easily ^obtainable, but the sugar season begins in November, and a tighter situation is inevitable. Also everything points to higher freight rates based on greater operating costs and overall tonnage-scarcity, particularly for charter. Japanese tonnage is just beginning to become a factor. qr'HE periods of spectacular advances and falls in copra prices appear to be at an end, which is only reasonable to expect with so many large crops, all over the world. But markets are bound to fluctuate from time to time, and are particularly vulnerable to political and military develop ments. That is why it is so difficult to predict definite trends and why most traders these days prefer to try to maintain a reasonably balanced position'rather than taking a pronounced view of the market one way or the other. If anything, dealers are inclined at this particular time to be a shade long. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from August 15 to Sep tember 15, during which most desiccated coconut factories continued on reduced production or were shut down. Sales in the United States continued to be slow due to high consumer inventories. The following are the shipping statistics for the month of August: Shippers Pounds Franklin Baker Company.................................... 1,331,900 Blue Bar Coconut Company.............................. 1,268,350* Peter Paul Philippine Corporation.................. 2,587,700 Red V Coconut Products.................................... — Sun-Ripe Coconut Products................................ 962,500Standard Coconut Products....................................... 100,000 Cooperative Coconut.................................................... 190,900 Tabacalera.................................................................. Coconut Products (Phil.) Inc............................. Total.............................................. 6,411,350 *Zamboanga Factory production.................. 452,000 lb«. Lusacan ” ” ................... 816,350 ” Total Blue Bar shipment......................... 1,268,350 lbs. Sugar By S. Jamieson Secretary-Treasurer Philippine Sugar Association THIS review covers the period from September 1 to September 30, inclusive. New York Market. Throughout September the market was dull and depressed. As the month wore on with no signs of improvement, Cuban holders became more anxious to sell, but buyers were indifferent, and there was a steady decline in prices. Based on figures to date, it would appear that the total sugar distribution in the United States for 1951 will be far below the quota of 8,250,000 short tons. Domestic producers, concerned over the pre vailing low price of raws, were requesting the U. S. De partment of Agriculture to take constructive action with PACIFIC merchiwisim; 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 Division “Union” Carbide PABCO PRODUCTS, INC. “Pabco” Products AMES BALDWIN WYOMING COMPANY BALL BROS. MASON JARS 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 350 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1951 last Christmas? REMEMBER those lines of appreciation from across the seas, those expressions of sheer satisfaction over gifts so intricately made, so typically Philippine, so unequalled in appropriateness? You’ll find in our GIFT SHOP note a wonderful display of those lovely, appropriate gifts for your friends overseas— WOOD CARVING ★ BLACK CORAL & SHELL ART WARE ■k BURI, BUNTAL & ABACA HANDI CRAFT NOVEL TIES ★ PHILIPPINE TABLE LAMPS & SHADES ★ IGOROT CURIOS —Bizarre objels d’art from the highlands. ★ PINA & JUSl CLOTHS —Unique, sheer, esquisite. Delicately ★ SILVER FILI GREES -So skilfully hand crafted. ★ WEAPONS OF MOROLAND —In Miniature. ★ PHILIPPINE PAINTINGS —Expertly framed with modern Philippine moulding. a view to bolstering the market. Cables received from New York on September 29 indicated that in some quar ters it was felt that action might be taken over the week end, as there was strong speculative buying of exchange futures, which advanced twelve points in all positions, while trading in actuals came to a standstill, both sellers and buyers withdrawing from the market to await develop ments. The market opened dull, with spot quoted at 6.20/. On September 4. 2,400 tons Cubas for prompt shipment were sold at 6.20/. On the 6th, spot declined to 6.15/ and 4,500 tons Cubas for prompt shipment were sold at 6.13/. There were sales of 5,500 tons Cubas and Porto Ricos for September shipment at 6.10/ on the 11th and 12,800 tons Cubas for October shipment at 6.05/ the following day, while spot was quoted at 6.05/. On the 13th and 14th, a small lot of prompt Porto Ricos and 3,000 tons prompt Cubas were sold at 6/. Spot was quoted at the same price. On the 17th, spot had fallen to 5.95/, at which price 25,000 tons Cubas for October shipment were sold. On the 20th, spot was quoted at 5.90/ and 9,000 tons Cubas for October ' shipment were sold at the same price. On the 25th, 4,000 tons Hawaiians for middle October arrival were sold at 5.87/. The following day, 10,900 tons Cubas for No vember shipment were sold at 5.85/ and spot was at the same level. On September 29, the last trading day of the month, there was, as above stated, an active market in exchange futures from speculative buying, but no trading October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 351 in actual sugar, both sellers and buyers having withdrawn to await developments over the week-end. We give below quotations on the New York Sugar Exchange for Contract No. 6 as of September 28, and, for comparison, the peak quotations during the month: November............... March...................... May..................... July.......................... Closing quotations .................. 5.49f* .................... 5.45 .................... 5.49 ................. 5.56 Peak quotations 5.68**—September 4 5 57 —September 4 5.59 —September 4 5.65 —September 4 World market Contract No. 4 quotations closed on September 28 as follows: January, 1952. . . . .................. 5.31*5 March...................... .................. 5.17 May.......................... .................. 5.17 July.......................... .................. 5 18 September.............. .................. 5.18 The world market spot price on September 28 was 5.33/ compared with 5.60/ on August 31. Cuban sales in the world market during the month included the following: To Japan, 30,000 tons at about 5.70f! f.a.s. Cuba and two cargoes at about 5.40^ f.a.s. Cuba Belgium, 10,000 tons at 5.75f! f.a.s. Continent, 5,000 tons new crop at 5.20d f.a.s., February /March shipment British Ministry, 12,000 tons new crop at 5.15^ f.a.s. for March/ April shipment Local Market (a) Domestic Sugar. The market was quiet but steady. Bureau of Commerce quotations as of September 26 were as follows: Centrifugal 97°— P16.00 per picul ” 98°— unquoted Washed 99°— P18.50 per picul It is reported that dealers are offering P 14.20 per picul, ex mill warehouse, for new crop domestic sugar, basis 97°. (b) Export Sugar. The month opened with buyers at Pl3.75 per picul for old crop and Pl3.50 per picul for new crop sugar for delivery up to January 31, 1952, both prices Victorias basis. These prices were reduced later, and at the close of the month buyers were quoting only P13.00 for export to the United States. Sellers were not interested, their idea of price being much higher. Limited quantities to cover special transactions were bought for prompt delivery at higher prices. Toward the end of the month a local buyer entered'the market, offering to buy large quantities under contract for November/December delivery at P14.00 per picul, reportedly for shipment to Japan. As of this date, we are unable to confirm that sales of Philippine sugar that have been made to Japan. General. Extension of^Sugar Act. The Bill referred to in our previous review was signed by President Truman on September 1. Freight Rates. The 1951-52 freight rate on sugar to the United States Atlantic Coast has not yet been fixed. Manila Hemp By Fred Guettinger Vice-President and General Manager Macleod and Company of Philippines THIS review covers the period from August 16 to Sep tember 15, throughout which all terminal markets ruled very weak and the business done was small. There were some sales to the United States stockpile at prices about 1/ per pound above the September 15 closing quotations, which on the average were 2/ lower than the prices ruling a month ago. London displayed very little buying interest as buyers were unable to operate due to scarcity of dollars. New dollar allocations for the United Kingdom are expected to be made end of this month for the October/December quarter. A moderate business was done with Japan during the period under review. FOR BETTER SERVICE— Call 3-29-05 ALLIED BROKERAGE CORPORATION Marsman Building Port Area Documents may be delivered lo our represen tative in the branch offices of MACKAY RADIO $ TELEGRAPH COMPANY, Plaza Moraga and Trade $ Commerce Building. Individual attention and competent supervision given lo your customs brokerage requirements. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING Cargoliner9 have heavy lift gear for extra heavy cargo. . . Cargocaire dehumidifying systems to protect cargoes subject to damage by moisture. . . radar. . . fire alarm systems throughout all compartments. . . deep tank heating systems to maintain bulk liquid cargoes at correct temperatures. . . pilfer-proof specie chambers and precious cargo lockers. Finest equipment is just one of many reasons why. . . It Pays You Well To Ship A.P.L. MARY BACHRACH BLDG. AMERICAN PRESIDENT LINES Your American Hotel Abroad 25th Street, Port Area Tel. 3-32-81 352 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1951 COLUMBIAN ROPE COMPANY OF PHILIPPINES, INC. HEMP AND COPRA EXPORTERS STEAMSHIP AGENTS ¥ 206 Myers Building - Port Area, Manila, P. I. * The following nominal values on September 15 illus trate the trend of prices in the Philippines over the period: Per Picul Basis Loose August 15 September 15 Change Davao I........................... P70.00 P63.00 — P7.00 Davao JI........................ 69.00 62.00 — 7.00 Davao G......................... 65.00 58.00 — 7.00 Non-Davao I................. P77.00 P68.00 — P9.00 Non-Davao JI.............. 69.50 60.00 — 9.50 Non-Davao G............... 62.00 54.00 — 8.00 Non-Davao J2.............. 51.00 46.00 — 5.00 Pressings in August declined to 76,708 bales, the lowest this year but still higher than the balings of any one month in the post-war years preceding 1951. Davao pressings accounted for 40,529 bales, or 53% of the total. Pressings for the period January through August were 715,043 bales, as compared with 481,939 bales in the same period last year, or an increase of 48%. The following are the comparative figures for balings for the first 8 months of 1947 through 1951: Balings—January-August Inclusive 1951 1950 1949 1948 1947 Davao................................... 339,211 238,643 143,853 141,783 250,551 Albay, Camarines and Sorsogon.......................... 184,960 115,300 79,717 130,931 163,847 Leyte and Samar............. 120,176 77,022 72,253 78,867 58,284 All other Non-Davao. . . 70,696 50,974 53,109 84,382 57,203 Total bales......................... 715,043 481,939 348,932 435,963 529,885 BRANCHES: Davao • Tacloban • Cebu • Tabaco Exports during August were 77,178 bales, with 34,792 bales, or 45%, going to United States and Canada, 24,054 bales, or 31%, to the United Kingdom and continent of Europe, 14,775 bales, or 19%, to Japan, and the rest to various other countries. Total exports for the period January through August were 778,792 bales, exceeding the pressings by 63,749 bales. The following are the comparative figures for export for the first 8 months of 1947 through 1951: Exports — January-August Inclusive SMITH-CORONA PORTABLE The Associated Steamship Lines announced a 10% increase in the freight rates to United States ports, effec tive December 15, 1951. 1951 1950 1949 1948 1947 United States and Canada 429,963 240,564 129,854 195,608 366,502 Continental Europe......... 112,653 80,390 67,028 72,354 77,536 United Kingdom.............. 126,091 54,009 24,959 52,045 36,870 Japan.................................... 87,108 55,630 81,977 114,901 1,600 South Africa...................... 13,115 4,125 3,034 2,257 4,300 China.................................... 3,930 9,258 9,531 7,916 2,296 India..................................... 4,632 4,030 3,100 818 4,850 Korea.................................... 3,110 Australia and New Zealand 1,300 1,631 1,187 42 750 All other countries........... — — 80 2,853 1,900 Total bales......................... 778,792 452,737 320,750 448,794 496,604 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! Not just a “new model”. . . it’s a revolutionary all new typewriter. . . with a total of nineteen new features plus fifteen SMITH-CORONA “exclu sives”! Its smart, new Color-speed Keyboard is full standard office machine size. . . has rimless keys colored a restful non-glare green and “comfort shape” to cup your finger tips. ERLANGER & GALINGER, INC. 123 T. Pinpin, Manila • Magallanes St., Cebu City Tobacco By Luis A. Pujalte Secretary-Treasurer Manila Tobacco Association, Inc. EXPORTS of the 1951-crop leaf tobacco will doubtless exceed the exports of the last three crops mainly because the crop is larger and the prices have been considerably lower. The quality in general is also better, but a great drawback is that at least 25% of the crop was badly damaged by caterpillars when the plants were in middle growth. This means that there are many half leaves and leaves with large holes in them, and naturally there is a larger proportion of stem. One of the chief reasons why buyers are reluctant to purchase heavily, despite the low prices, is this broken leaf which the growers have mixed with the good leaf instead of keeping it separate: if they October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 353 had, they would have received better prices for their good leaf. Though, therefore, the crop is large, a consider able percentage of it will not be suitable for export. Had it not been for the enactment of the Minimum Wage Law, a solution would have been fairly easy as a good part of the leaf could have been hand-stripped and exported to the United States where the Philippines has a duty-free quota of 6,500,000 pounds, of which, due to the previously high price, only a small fraction has been filled each year. But now that the price has come down to a competitive level, the cost of labor has gone up, leaving the situation much the same as before. Fortunately, a big part of the broken leaf comes from certain definite areas and this makes it easier for the ex porter to know where to buy the tobacco he intends for export. Imports By S. SCHMELKES Mercantile, Inc. ALL figures are in kilos with the exception of those for foodstuffs which are given in package units: Commodities August, 1951 August, 1950 Automotive (Total)...................... .... 1,569,706 1,453,169 Automobiles................................ .... 339,061 235,010 Auto Accessories........................ .... 7,295 1,888 Auto Parts................................... .... 313,982 210,236 Bicycles......................................... 1,956 14,156 Trucks......................•................... 18,969 — Truck Chassis............................ 203,214 479,490 Truck Parts................................. 119,162 67,180 Building Materials (Total)........ 9,899,460 13,555,108 Board, Fibre............................... 116,440 57,370 Cement.......................................... 3,345,759 10,214,909 Glass, Window........................... 543,756 344,480 Gypsum........................................ .... — 113,398 Chemicals (Total)......................... .... 10,532,787 2,910,681 Caustic Soda............................... .... 769,070 715,454 Explosives (Total)........................ 35,391 Firearms (Total)............................ 4,893 6,725 Ammunition................................ 4,856 4,853 Hardware (Total).......................... 6,809,713 5,819,092 Household (Total)........................ 1,319,605 1,007,503 Machinery (Total)........................ 2,761,913 2,006,114 Metals (Total)............................... 7,534,074 5,908,812 Petroleum Products (Total)... . . . . . 90,836,612 74,758,215 Radios (Total)............................... . . . . 18,212 21,690 Rubber Goods (Total)................ . . . . 1,285,230 365,717 Beverages, Misc. Alcoholic................. Foodstuffs (Total Kilos)...................... Foodstuffs, Fresh (Total)................... Apples.................................................... Oranges.................................................. Onions.................................................... Potatoes................................................ Foodstuffs, Dry Packages (Total). . Foodstuffs, Canned (Total)............... Sardines................................................. Milk, Evaporated.............................. Milk, Condensed................................ Foodstuffs, Bulk (Total)................ Rice........................................................ Wheat Flour....................................... Foodstuffs, Preserved (Total)........... — 9,114 41,263,146 31,111,266 115,982 116,331 4,933 19,132 16,106 9,435 30,914 42,402 25,563 11,102 36,161 21,242 507,675 237,647 34,687 90,620 181,759 38,611 70,250 2,636 395,500 852,484 186,807 — 147,888 814,921 3,947 2,296 Bottling, Misc. (Total)....................... 2,023,350 367,691 Cleansing and Laundry (Total). . . . 123,667 291,926 Entertainment Equipment (Total).. 3,529 4,787 Livestock-bulbs-seeds (Total)............ 3,333 2,055 Medical (Total)...................................... 788,890 352,397 Musical (Total)...................................... 78,356 73,672 Office Equipment (Total)................... 60,175 20,602 Office Supplies (Total)........................ 89,957 37,231 Paper (Total).......................................... 7,080,974 3,828,763 Photographic (Total)............................ 85,340 15,147 Raw Materials (Total)........................ 1,595,459 107,048 Sporting Gocds (Total)....................... 21,950 19,789 Stationery (Total)................................. 425,988 183,646 Tobacco (Total)..................................... 824,281 103,732 ★ LUZON STEVEDORING COMPANY, lit. Manila ★ 354 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1951 This Journal is one of the best media for advertising addressed to business and plant Managers BUILD WITH JACKBILT BLOCKS Your Answer to low cost housing Gives you: Fire Safety Lifelong Durability Low Upkeep Low Insurance Rates Weather Tightness Vermin Proofness * Sole Distributors NORTON & HARRISON COMPANY 814 ECHAGUE, MANILA Tel: 3-34-11 Tel: 3-34-12 Chucheria (Total).................................. 89,252 Clothing and Apparel (Total)........... 257,259 Cosmetics (Total).................................. 63,633 Fabrics (Total)........................................ 1,158,657 Jewelry (Total)....................................... 24 Leather (Total)....................................... 166,978 Textiles (Total)...................................... 3,348,766 Twine (Total).......................................... 130,762 Toys (Total)............................................ 7,076 General Merchandise (Total)............ 590,526 Non-Commercial Shipments (Total). 106,447 Advertising Materials, Etc. (Total). 9,892 72,093 240,490 46,792 879,853 244 185,644 1,800,987 44,284 8,631 289,292 53,925 6,164 Food Products By C. G. Herdman Director, Trading Division Marsman & Company, Inc. THERE has been very little change in conditions in the Philippines from the preceding month as far as sup plies of food products are concerned. The market remains heavily overstocked on evaporated milk and milk. powder, canned meats in general, and canned fish. There is a shortage of certain packs of the latter item but, in the over-all picture there is more than ample stock in the hands of importers and dealers for some little time to come. The pack of sardines in the Monterey District in California has been very disappointing, only very small quantities of fish being packed. The season in Southern California opens in October. It is anticipated that the pack there will be much more satisfactory than in the north. Imported fresh fruits and vegetables continue to be in very short supply and can only be secured at extremely high prices. txuring September the Import Control Commission has ■^released import licenses permitting the importation by private importers of approximately 1,000,000 bags of flour, corresponding to the August and September allot ments under the International Wheat Agreement. There is still a fair quantity of flour in stock in the Philippines, remaining from old purchases of PRISCO, as well as limited quantities which have arrived for private importers pur chased outside of I.W.A. Most of the old stocks of flour imported by PRISCO are deteriorated in quality, and dis posal is difficult except at greatly reduced prices. Ship ments of new flour under licenses issued in September will begin arriving in quantity about the middle of October and from that time on there will be ample supplies available of good quality flour. It is evident that flour shipments provided for under the I.W.A. are far from sufficient to satisfy the require ments of the Philippines of this commodity. This matter is under study by the I.C.C. and it is probable that some method will be arrived at providing for purchases of an additional quantity of flour outside of I.W.A. so as to satisfy local needs. Licenses granted for flour imports during September were limited to regular flour dealers with historical records of imports. Bakeries, even though they had been regularly importing during previous periods, were not granted licenses. A recent ruling in the I.C.C., however, now classifies bakeries as producers or manufacturers, and states that they will be granted import licenses in the future under that category. It is anticipated that further import licenses in con siderable quantity will be granted by the I.C.C. during the second half of October to insure ample stocks of flour being available during November and December. The period of heaviest flour consumption in the Philippines is for the months of October to March inclusive, and it is understood the I.C.C. is making plans to see that stocks in ample quantity are available for those months. October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 355 't'here has been very great delay in issuing import J- licenses since the Import Control Commission was established as of July 1, 1951. In all fairness, it must be stated that the Import Control Commission is working under very serious handicap. Its authorized appropriation is so small as to make it impossible to employ sufficient qualified personnel to handle the necessary work. This situation is extremely difficult to understand. A fee of 2% is charged on all applications approved for import license, which is supposed to be a fee to cover operation costs, etc., but is not intended as a tax. The fees so collected run into very considerable sums of money. The budget authorizing the expense of the I.C.C. is only a small fraction of the fees collected. Either more funds should be made available to the I.C.C., enabling it to employ sufficient personnel to permit prompt examination and action on applications as presented, or the fee charged should be reduced. Textiles By W. V. Saussotte General Manager Neuss, Hesslein Co., Inc. THE increase in local market prices which took place during the latter part of August reached its peak during the first week of September. Since that time prices have weakened considerably so that they are now at the approximate level that they were during early August, before the increase took place. The decline has been slow and it is believed in the market that present prices will probably remain as they are for the next 60 days or so. The weakening in local prices has been caused pri marily by the relatively heavy arrivals during August and September against the old PRISCO licenses for decontrolled cottons. It is expected that arrivals will continue to be fairly heavy during October and November. However, since cotton goods have been classified by the I.C.C. as in the controlled non-essential category, shortages in local stocks are bound to become evident shortly after the first of the year. The decline in prices has been felt primarily in cotton staples, and while fancy cottons as well as rayons also declined in sympathy, the decreases have not been as great. However, since the I.C.C. has classified rayons as in the controlled essential category, which will result in rela tively more licenses for rayons than for cottons, it is ex pected that local prices for rayon goods will decline further. Prices in the United States remained firm during September as regards cotton goods. However, rayon prices declined considerably, a factor which will also probably influence the expected weakening of rayon prices in the local market. During September, arrivals from the United States totaled 16,750 packages, a decline of about 3,000 packages compared with August arrivals. September’s arrivals included 8,873 packages of cotton piece goods and 746 packages of rayon piece goods. Included also were 1,108 packages of sewing thread and 292 packages of cotton seine twine and wrapping twine. Cotton pound goods totaled 3,529 packages, while rayon pound goods amounted to 194 packages. Arrivals of all textile items, including made-up goods, from countries other than the United States, totaled 3,924 packages, and included 831 packages from China, 666 packages from Japan, and 2,419 packages from Europe and India; included in the latter figure were 1,033 packages of sewing thread from England and 1,196 packages of hessian cloth from India. Total arrivals from all sources during the month of September amounted to 20,674 packages as compared with 23,067 packages for August. BO I EZS QUIBROLAX ANTI-COLD • ANTI DENGUE TABLETS Quinine Bromide 0.04; Phenolphthalein 0.04; Quinine Sulfate 0.006; 01. Res. Caps. 0.001; Caffeine 0.006; Senna Lvs. Pdw. 0.03; Excip. q.s. 1. —Destroys the cold infection in the system in a few hours. 2. —Relieves headache and fever and tones up the system generally. 3. —Acts as a mild laxative, opens the bowels and clean ses the intestinal tract of the cold mucus. AT FLYING TIDE WATER ASSOCIATED OIL COMPANY DEALERS MANILA • CEBU • DAVAO • ILOILO • LEGASPI 356 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1951 COST OF LIVING PRICE INDEX OF WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1948 TO 1951* (1941 = 100) Bureau of the Census and Statistics Manila 1948 All 1 (100) Food (63.43) (1L96) Cloth ing (2.04) Fuel, Light and Water (7.73) Miscel laneous (14.84) Purchas ing f^wer January........ 390.7 427.6 453.9 224. 5 304.6 249.91 .2560 February.... 369.8 394.0 453.9 223.8 301.1 254.4 .2708 March........... 349.4 361.0 453.5) 214.'6 308.1 255.91 .2862 April............. 354.6 374.1 453.5) 209.4 289.7 254.8 .2820 May.............. 349.8 360.2 453.5) 214. 2 289.7 271.6- .2859 June.............. 354.3 370.4 453.51 205. 2 283.2 262.9i .2823 July............... 356.4 374.2 453.51 201.3 281.6 262.4 .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. S• 204.1B 283.2 257.9 .2668 November... 368.7 394.4 453.91 202.1D 281.6 258.7 .2712 December... 365.9 389.9 453.9I 202.10 282.4 258.9 .2732 1949 January........ . 363.8 386.8 453.9I 202.10 -279.0 258.9i .2750 February.... . 343.8 355.5 453.9• 203.13 277.5 258.9' .2909 March........... . 345.3 358.2 453.9» 202.10 276.3 258.5 .2896 April............. . 348.7 362.6 453.9' 197.6 287.5 257.1 .2868 May.............. . 348.8 362.8 453.9i 197.:2 287.5 257.1 .2867 June.............. . 349.0 362.9 453.91 203.!3 287.5 257.2 .2865 July............... . 351.7 374.0 453.9i 194.!2 265.8 240.5 .2844 August.......... . 337.5 351.2 453.9' 196.3 266.6 241.2 .2963 September. . , 333.6 345.1 453.9i 190.:J 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.! 259.5 256.2 .3035 1950 January ......... 332.3 336.8 453.9 238.0 253.1 269.3 .3010 February.. .. 336.9 340.2 453.9> 233.3 257.8 284.1 .2969 March........... 339.0 341.4 453.9i 236.7 257.8 292.6 .2950 April.............. 331.8 328.6 453.9i 237.:r 252.9 301.2 .3015 May................ . 320.2 308.6 453.9I 244.:i 249.7 309.1 .3123 June............... . 323.1 310.9 453.9I 243.5 249.7 319.1 .3095 July................ . 332.0 322.4 453.9I 252.6 249.7 328.7 .3012 August.......... 334.4 325.9 453.9I 258.:r 251.1 328.4 .2990 September . . . 341.3 335.0 453.9I 317.-1I 252.5 327.5 .2930 October......... 352.8 351.1 453.9I 337.3 249.7 334.5 .2835 November ... . 354.1 353.2 453.91 322.t> 249.7 335.9 .2825 December.. . . 352.2 350.5 453.9• 325.1 249.7 334.8 .2839 1951 January........., 355.2 355.0 453.9 331.5 249.7 334.6 .2816 February.... 358.4 359.8 453.9 342.8 249.7 334.4 .2790 March............ 352.4 349.3 453.9 379.4 248.8 334.3 .2838 April............. . 361.2 362.6 453.9 398.6 247.5 334.7 .2769 May................ 365.0 367.0 453.9 410.4 247.5 339.5 .2740 June............. . 367.8 372.0 453.9 399.5 247.5 337.7 .2719 July............. . 366.3 370.1 453.9 382.0 247.5 339.0 .2730 August............ 365.1 371.4 453.9 354.0 247.5 329.1 .2739 September.. . 363.0 369.0 453.9 356.4 247.5 325.4 .2755 1 Average number of persona in a family = 4.9 members. *For explanatory note, see the August Journal. MOTOR SERVICE CO, INC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES Legislation, Executive Orders, and Court Decisions By Robert J and a Ross, Selph, Carrascoso & Janda THE Import Control Law (Section 13) requires any im porter not a producer to reserve not less than 50% of his imports for sale to bona fide Filipino merchants. Supplementing its regulations, which provide that an Amer ican citizen or American-owned entity may qualify as a new importer, the Import Control Board has ruled that on the same basis an American citizen or American-controlled firm may qualify as a bona fide Filipino merchant under Section 13. the Supreme Court, in the case of Santamaria vs. -1 Hongkong & Shanghai Banking Corporation (G. R. No. L-2608), held that a client of a brokerage firm who endorsed a stock certificate in blank and delivered it to the broker was estopped from asserting title to the shares as against a bank to whom the shares were illegally pledged by the broker. At the time of the action the shares them selves had become worthless, but plaintiff contended that the bank had converted the shares at the time of their pledge and was liable to her for their value as of that time. The Supreme Court refused to allow plaintiff any recovery. In the case of Josefa Penaflorida vs. RFC (G. R. No. L-4602), the Court held that a provision in a mortgage in favor of the Rehabilitation Finance Corporation providing that mortgaged property could not be sold, disposed of, or encumbered without the consent of the mortgagee pre vented an inter vivos gift by the owner of the property without the bank’s consent even though the gift specifically provided that it should be subject to the mortgage. The action was brought by the owner of the property against the RFC to compel it to lend the owner the duplicate copy of the Torrens title in order to have the gift recorded there on. The Court held that the bank could not be compelled to give its consent to the donation and, consequently, could not be compelled to surrender the titles. In the case of Chua Liong vs. Everett Steamship Cor poration (G. R. No. L-2933, promulgated Sept. 26, 1951), the Supreme Court upheld an order by the Public Service Commission requiring the inter-island carrier to refund to plaintiff overchanges made on inter-island carriage of freight. The Court held that the action was properly brought before the Commission which had power to order the refund, and that since the rates were in excess of those legally authorized the Commission’s order of refund was proper. Philippine Safety Council By Frank S. Tenny Executive Director PROGRESS has been made in the establishment of a payroll-delivery plan as a new Council service. Con ferences have been held with representatives of Wood craft Works, Inc., Philippine Iron Mines, the Lamit lumber AGENTS BROKERS CHARTERERS TELEPHONES 3-34-20 3-34-29 American Steamship Agencies, Inc. Manila, Shanghai, Tokyo, Yokohama 230 13th St., Port Area Tel. 3-36-21 Cable Address: “AMERSHIP” 203 Myers Bldg. Port Area Manila October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 357 concession, Wise & Co., Pacific Airways Corp., and other interested parties. It is the hope of the Council to fill a long-felt need of remotely located business firms in this connection. The Fire Prevention Board continues to be active, with a committee busy preparing a revised arson law and another group defining standing room areas in local thea ters. The Advisory Safety Council to the Secretary of Labor and the Provincial Bus Terminals Board appear to be tem porarily inactive. The Manila Mayor’s Traffic Committee is meeting regularly. The Council directorate has written a formal request to the Secretary of Justice asking that “right-of-way” rules for both pedestrians and vehicles be clearly defined and enforced. Numerous discrepancies were pointed out in the letter. Applicants for positions as driver for members of the Manila Taxicab and Garages Association are to be care fully screened by the Council. Companies represented are Golden, Yellow, Malate, BMC, Redi, Liberty, Black and White, and Aero. An intensive 2-month’s publicity campaign is under way to bring safety education to larger numbers of people. In addition to the regular newspaper, radio, and direct contacts, a weekly radio program is now being heard over Station DZFM and safety films are being shown at the USIS quonset on Dewey Boulevard at regular intervals. Also, a campaign is being readied whereby leaflets will be distributed to jeepney drivers at gasoline stations. Various industrial-safety, accident-prevention, fire, and security programs continue in 20 local firms under Council supervision. During the past month, interest has again veered toward traffic and security factors. STEEL FABRICATORS CONTRACTORS ENGINEERS MANUFACTURERS MERCHANDISERS RIVER & HARBOR WORK SHIPS' REPAIRS Operating: MACHINE SHOPS FOR CONSTRUCTION AND REPAIR FOUNDRY FOR CAST IRON. BRASS & BRONZE STRUCTURAL STEEL FABRICATING SHOP MARINE REPAIR SHOPS WELDING SHOP WOOD PRESERVING PLANT ATLANTIC, GULF & PACIFIC CO. OF MANILA (PHILIPPINE CONTRACTORS SINCE 1905) EXECUTIVE OFFICES • ENGINEERING DIV. STRUCTURAL & MACHINE SHOPS Barrio Punta, Sta. Ana, Manila Tda: 6-75-31 • 6-75-32 • 6-75-33 MERCHANDISE SALES DIVISION Robert Dollar Bldg., Muello de San Francisco & 23rd St., Port Area, Manila Tel. 3-36-61 (Connecting all Depts.) 358 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1951 The"------ -------------------- ------“LET YOUR HAIR DOWN’’ ■ ~ s Column JUST before gqing to press we received the following brief letter, addressed to the editor, from a leading insurance company executive in Manila: “The article on insurance which you wrote in the last issue of the Journal was for warded to my Head Office in New York, CUSTOM MADE VENETIANS From all-wood . . . metal-and-wood ... to the best of them all — the supreme all-metal Venetian blinds. In color and size — perfectly installed for a lifetime of service. Colored tapes and cords to match or contrast. Cornice to give that added elegance. LIFE TIME Venetian blinds offer you all these added advantages at no extra cost. Equipped with LEVOLOR self-adjusting tilter. Call 5-42-74, free estimates cheerfully given. CADWALLADER PACIFIC COMPANY 337 PEREZ ST., MANILA BORROMEO ST., CEBU CITY and I believe that you will be interested to know that it was read by all our executives with ‘greatest possible interest’. Comment was also made that the article was very well written. “I should like to take this opportunity in the name of a group of American insurance companies to thank you for the interest you have shown in this matter and to congra tulate you on that very well written article.’’ “VV7-HO owns all the money?” a young ▼▼ thing asked us the other day. “The Government?” We were badly shaken, but after a moment took a ten-peso bill out of our pocket-book, showed it to her, and asked, “Who owns this?” “Well,” she said, “I guess that is your money, but it has ‘The Government of the Philippines’* printed on it, and I suppose the Government is only letting you use it for a while.” “Ha, ha!” laughed another member of the family. “She’s got you there! Certainly you don’t keep your money ve ry long in this house.” “True,” we said, with some bitterness. “This note will have been spent by this time tomorrow, but we will have had something in exchange for it,—food, for instance, which certainly becomes ours permanently as soon as we have eaten it; it becomes a part of our bodies.” There was a pause while this remark was being digested, then we asked, somewhat hopelessly, “Don’t you know what money really is?” “Money is a medium of exchange,” recited one. “Yes,” we said, “that is true; but it is more than that. Let us try to understand what money really is and where it comes from...” “From the people you work for.” “From the banks.” “From the Central Bank.” “From the government mint or engraving plant.” We held up our hand. “No,” we said, “at the very beginning.” “Let’s make it as simple as we can,” we went on. "Imagine a family like ours, living all by itself, long ago, in some remote place, say a forest clearing near the sea. We hunt and fish and raise a few vegetables, make our own clothes, and so on. We are in touch with no one else, need no one else. Would we have any money or need any?” “No.” “Now suppose a few more families come to that part of the country and settle down near us. They live very much like we do, but we find out that one man among them is very skilfull in making certain weapons or implements. So we and some of the other people want him to make some of these things for us and we give him in exchange some meat or grain or some other things we can spare. “All right. There we have an example of what economists call a division of labor and also an example of certain surplusses that have come in existence,—the smith built up a surplus of weapons and tools and the rest of us who obtained them from him had surplusses of other things to give him in exchange. And how was it possible for there to be such surplusses?” “By labor, by work.” "Correct,” said we, “but not exactly by just labor alone, but labor and thought and ♦ We let this pass, though it is not really true. The ten-peso bills still in circulation for convenience arc the old preindependence Treasury Certificates bearing a “Central Bank of the Philippines” over print. The new bills are all notes of the Central Bank of the Philippines, “Fully guaranteed by the Government of the Republic of the Philippines”. POSITION WANTED. American, age 33, permanent resident since 1946, until recently branch manager of an American business firm; desires posi tion in import, export, or shipping.— Inquire of the American Chamber of Commerce, P. O. Box 1836, Manila. October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 359 foresight and enterprise; and, also, more must have been produced than we imme diately consumed; we accumulated enough of a surplus of some kind to exchange for the iron tools or weapons by saving. Now everything our community produces is wealth, but what we were able to save and store up in some way is capital, assets more or less permanent which we can use in further production. And these surplusses are in the hands of those of us who produced and saved them or acquired them by honest exchange. They are property in our own rightful pos session. "Now as time went on, and more of a division of labor developed among us, some of us hunting, others fishing, others farming, the women, maybe, making cloth, it became somewhat awkward always to exchange goods of various kinds with other goods of various kinds, and in most communities some generally acceptable medium of ex change was hit upon, like the skins or hides of animals, or pieces of iron, which came to have more or less fixed values. But, remem ber, these various media were always owned by the people who possessed them through producing them or acquiring them by giving something of value in exchange. They passed from hand to hand, but they did not just float around or ‘circulate’; these hides or pieces of iron or what-not were owned by people like you and me. Then, in various places, instead of different media of exchange, which were all a kind of money, gold came to be the common medium because it was easily kept or stored, taking up but small space, did not spoil, etc. “Gold was probably first used in the form of natural nuggets, valued according to weight, but was later melted down and cast into slugs of various shapes, and any one who possessed such gold could do so, miners and merchants and what we would now call brokers and bankers, and they could put their own stamp on these pieces of gold, indicating their identity, the weight and value of the slugs, and so on. But this money, passing from hand to hand, was always owned by some one, generally the one who at the moment held it, unless he was taking care of it for someone else. And this gold was all a part of, though not all of the surplus wealth being created by human enterprise and industry and saving. “Governments came into the picture only in this way,—that as trade and commerce expanded, and it became more and more necessary to have a dependable medium of exchange, coins of definite weight and degree of fineness and of generally accepted value, governments took over the business of coining and, in fact, made a government monopoly of this work. “But this did not mean that the govern ments owned the gold they minted into coins; the governments coined the gold for the people who owned it and gave it back to them, perhaps taking a small percentage of the value for doing this work. The gold stood for what the people had produced and saved, and the people owned it. It was al ways a part,—only a part of the total sur plus wealth of the nation, produced as all wealth must be, by the industry and enter prise and saving of the people. “Governments have no money of their own except for what they raise through taxation or through borrowing, like other people or groups of people. Of course, when a government does not confine itself to the political sphere and enters, as an organiza' tion, such fields as economic production or distribution, it may make certain earnings of its own, but whenever it does so, it enters into direct competition with the people, which is something strongly disapproved of in our system of individual enterprise, and for many good reasons we need not go into now. “As to paper money, such as that ten-peso note, that is a money-certificate and represents or should represent real gold, or, sometimes, silver, which in some countries also became a basic medium of exchange. “It is not necessary that such notes should have a 100% backing in gold or silver, but it should be possible for anyone easily and promptly to exchange such notes for gold or silver if he so desired, in much the same way as banks maintain a sufficient reserve Jto meet all the demands likely to be made upon them by their depositors. “Notes are printed or engraved by, or by order of, a government, and are not generally simply ‘ issued”,—as the* Micky Mouse’ notes largely were during the enemy occupation here, but are turned over usually to the banks in exchange for gold and silver they deposit with the government for safe-keeping. Again, that does not mean that the govern MISTAKEN NOTIONS MISTAKEN NOTION No. 1 SOME FOLKS think Chop Suey originated in China. THE FACT IS Chop Suey originated in the United States. MISTAKEN NOTION No. 2 SOME FOLKS think that just because the cost of living is about 3-1/2 times higher than before World War II, the cost of residential elec tricity is much higher now than before the war. THE FACT IS that the average price of electricity we supply for home use is practically the same as it was before the war. ELECTRICITY IS TODAY’S BIGGEST BARGAIN MANILA ELECTRIC COMPAH 134 San Marcelino Manila ment owns the gold and silver. It is owned by the people who have accepted the govern ment’s notes. And, again, of course, it is not the banks which own the gold or the silver, but the customers who have deposited their money with the banks, also chiefly for safe-keeping. "It is the people who over a period of often many centuries have created and saved the wealth which money represents, who own that money among themselves. Don’t forget. It is your money and my money and the money of all the other people, and not the government’s. A government has no money of its own, and under a true capita listic system, has no way of producing any. All the money a government has from year to year comes from the taxes the people pay to it. Generally they pay such taxes willingly to support the many services which the government renders them. All the money the government spends must first be turned 360. AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1951 over to it by ourselves. If the government ‘hands out’ any money to certain people, its officials and employees, or such groups as the army veterans, that money comes from all of the people,—a part of it even, for example, from the veterans themselves. “Money, therefore, is or represents a part, what we may call the more ‘liquid’ part, of the surplusses of many kinds which we and our fathers before us have produced, saved, and accumulated. That is why the maintenance of the value of the nation’s money is so great an obligation on us and especially on the government. “Now I will tell you about one bad thing. Sometimes a government will spend more than it takes in in the form of taxes, and to cover the shortage, or the deficit, as it is called, it makes what is called a ‘loan’ from the central bank or some other bank of a kind called ‘banks of issue’, which are au It looks simple enough but expert care must be observed when cementing the rasped or buffed tread of a tire to be recapped. Here is pictured Rufino de los Reyes with a stiff bristled brush daubing on vulcanising cerhent, working it into every part of the surface. The cement is then allowed to'dry in a heated dust and draft free place—which is step number three in B. F. Goodrich re capping. The men at the B. F. Goodrich Recap Plant have the equipment, the training, the knowledge and the materials to do treading jobs of superior quality that will produce new highs in performance and new lows in cost per mile of tire operation. .F.Goodrieh FIRST IN RUBBER RECAP 205 Rizal Ave. Ext. PLANT Grace Park, Caloocan Tel.: 2-72-23 Goodrich International Rubber Co. 13th and Atlanta Sts. Port Area MANILA TEL.: 3-37-21 thorized by the government to issue notes. This may become necessary and is quite right if it is done within limits, but I call it bad because what happens in such a case is that while no additional gold or silver is put into the bank, yet additional notes are issued and handed to the government which then goes ahead and spends them and adds them to the money in circulation. You can see that thus, while more notes are placed ’ in circulation, there has been no increase in the amount of real money, money with gold or silver behind it. In other words, the real money is what we may call ‘diluted’,—there is apparently more money, but it is a “thin ner’ money, of which each unit, peso or dollar or what, is worth proportionately so much less. It will take more of such diluted or cheapened money to buy the different things we need to buy. In other words, prices will go up and the cost of living will increase, and the money we receive in wages or other earnings won’t buy as much as before. It is exactly as if someone had cut down our wages or other earnings, only we generally don’t notice this right away.” ‘‘It is different when a government borrows money it needs by selling bonds, as the people buy such bonds with good money. The government debt and, therefore, the national debt, is of course increased, but the money-supply is not increased and cheapened. The people just turn over, for a time, some of the existing money-supply to the govern ment. That is not the same as just printing more money that has no real value. Govern ment officials might say that kind of money has 'all the assets’ of the nation behind it, but that is just a phrase. A holder of such notes would find it very hard to draw on such general assets. The end of the process of printing notes that only look like real money certificates, but are not, is catastrophe, as in Germany after the first World War...” We stopped for rest, and the young one broke in pertly: "Well, when times get hard that way, why does not the government just send everyone a check? Let the government just print some more money and send out checks not only to the veterans, but to everybody. I am sure that many people deserve pensions who don’t get them. Everyone should be treated equally. Why not give everybody pensions? If everybody could count on a check like that coming in every month, that would solve everything. No more poverty...” “Well, dear, I think you can not have been listening or perhaps I have not made the thing clear enough for you yet. Still, there are even some supposedly learned economists who talk just like you do. But try to get this through your skull, won’t you? That neither you nor I nor anybody, not even a government, can put out more than comes in, can consume more than is produced, except by drawing on some past accumula tion, and that that can’t go on for long. Whatever surplus there may be, must finally be eaten away...” "What,” asked one of the older ones, "determines the money supply at any given time in any given country? Why is there not more, or why not less?” “Good boy”, said we. "That is a sensible question. Money is just like all other eco nomic goods and services; the amount of money in a country at any given time is ultimately determined by demand and sup ply. Of course, again as in the case of all economic goods and services, there is an over-all scarcity, and if more money is needed to service the general economy, it must be drawn away from other forms of capital wealth. Relatively less money is needed in these times because of the money substitutes now in general use, like checks drawn against demand deposits in the banks. “A government can in a number of ways legitimately increase and decrease the money supply, within limits, when this becomes advisable, but it is always best to keep it at a minimum because too large a supply leads to over-consumption and mal-investment. Too large a supply of even perfectly sound money in proportion to the supply of goods in the market will cause an inflation and a rise in costs and prices, and thereby a general dislocation, producing in some ways the same effects as too large a supply of socalled money created by the issue of notes not backed by real money.” “Well, all the same,” said the young thing, “I wish we had more money.” “A very natural wish, my dear,” said we. “I would like that myself. But suppose I gave you a peso and you found it was worth only ten cents?” “Gimme,” she said. October, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 361 't’he editor received a much apA preciated letter from Mr. Walter Robb, pre-war editor of this Journal for many years, but so that his letter may be better understood, we print the present editor’s letter to Mr. Robb, first, then the latter’s response: “Dear Mr. Robb. “Carlos Quirino, just returned from his travels, told me over the telephone yesterday that, during a very pleasant visit he had with you in San Francisco, you mentioned that we were not sending you the Journal. “I checked on this immediately and found that it was indeed true, though I remember giving instructions when I first took over the Journal from Mr. Hendry with the July, 1947 issue, to put your name on the compli mentary list if Hendry had not already done so. The fact that these instructions were not carried out resulted in a seeming dis courtesy and slight on my part which may well account for the fact that you have never written me. Believe me, it was uninten tional, and all I can do now is to rectify the oversight and to offer you a sincere expres sion of regret. “Though I miss the activity in the wider political and cultural fields which I sought to cover in the pre-war Philippine Magazine, I have found the editing of the Journal very interesting within its scope, which is now rigorously restricted to business and economics, and my free-wandering spirit has been somewhat solaced by the fact that the economic development of the Philip pines is now of more immediate importance than the cultural and political development which used chiefly to interest me. “On the whole, the successive boards of directors of the Chamber and myself have C. F. SHARP & COMPANY, INC. STEAMSHIP AGENTS—OPERATORS —SHIP BROKERS GENERAL ORIENTAL AGENTS for WATERMAN STEAMSHIP CORPORATION Mobile, Alabama IVARAN LINES (Far East Service) Oslo PACIFIC ORIENT EXPRESS LINE Oslo - Gothenburg General Agents for GENERAL STEAMSHIP CORPORATION, LTD. San Francisco SIMPSON, SPENCE & YOUNG New York - London Head Office: 5TH FL., INSULAR LIFE BLDG. MANILA, PHILIPPINES TELEPHONES: 2-69-50 2-69-56 2-69-59 Branch Offices: SAN FRANCISCO—SHANGHAI SINGAPORE—PENANG YOKOHAMA—KOBE TOKYO—NAGOYA OSAKA—FUSAN (KOREA) Cable Address: "SUGARCRAFT" all offices looked at conditions and trends here quite eye to eye, so that I have had to do no vio lence to my personal opinions in editing the Journal and in writing the editorials, al though at times I should have liked to be more outspoken than the Board thought advisable. As the Journal is definitely the organ of the Chamber, it was at my own suggestion that everything published therein should have the approval of the Board. In practice, the Board generally sees only the editorials before publication. And while my gusto is somewhat restrained thereby at times, criticism and consultation have, I admit, often strengthened, though it has sometimes diluted and weakened, editorial expression and has even prevented comment on certain matters entirely. I fully realize, however, that what I am sure I could say personally without offense, in view of my known attitudes and local connections, could not always be said by an organization like the Chamber, so that I never demur when checked, though privately I may think back fondly to those times when I could write and publish exactly what I thought and felt, , with no one to say me Nay. “Our little circle of Americans here which you and I were a part of, has sadly contracted. Many of those who used to constitute it are dead or gone, even Hester is gone now, and about the only surviving members are Beyer, Gilbert Perez, and myself. Tom’s Dixie Kitchen and the Plaza Lunch where we fre quently foregathered, are institutions of the past, and I mostly stay at home, where, however, I am most happily suited by chil dren and grandchildren, not to mention the lawns and flowers and a fountain and quiet late afternoons in the patio, though I fre quently wish I had some old friends to share the delight with me. “With regards to yourself and Mrs. Robb, Yours, etc.” Now Mr. Robb’s reply, which came very promptly: “Dear H. “Your letter of September 19 quite stirs my heart. I shall indeed be gratified to be remembered with the Journal, surely now a venerable review among its peers: first my work, and now yours; and I’m assured by Chamber members that yours surpasses mine. Yet'I assume that at best the Journal speaks in the quavering accents of the aging and senile American influence in the Philip pines. The community there whistles in the dark, keeping up a furtive courage, but the gloom creeps over it inevitably. “It is a Monday morning, I may be depres sed. But I send all my friends best wishes, especially yourself. You say nothing of your interest in music, but I assume it does not flag and that you find expression for it. Does any child or grandchild of yours inherit the**talent; or in writing, where you excel in exposition? “And now you are philosophic, content to elude the storms that attack inevitably,— without even opposing them. You are Con tinental. You are Grandpere; you have your petits-fils and petites-filles, your garden and herbs, and, given no cataracts, the companionship of your books. You may have women. For wine you never cared. You will bury Beyer, and Ed will bury you. Voila I We are born, we live, we die. Waves of the sea do the same, and dissolve into oblivion. You see them perishing along Burnham Green. I see them from my win dow,—waves of the Pacific. Yet it matters that these waves have lived: they have borne argosies. And once it mattered that Hartendorp lived, he challenged evil and stood true to Goethe—Mehr Licht!— whom he read in the original. True, he challenged in vain; he was no less a knight for that his lance was parried; and again and again he appeared in the lists, opposing overwhelming odds. “The trouble is, Van, we grow old like subsiding waves nearing the shore. And the joy of it is that we both survive as yet, with some degree of health in limb and mind; and I’m assured, as you read this, we laugh together, as we would have done a decade agone,—our sense of the ludicrous is with us still. While we can’t make over this scheme of things entire, as Omar could not, yet it deceives neither of us; I take it we both know what it is. “I thought the job north from Luzon was properly a Navy job. Had you ever reflected on that? Please write me soon again. Suyo siempre, Walter Robb.” That letter, the editor said, ap preciated as it is, takes some digest ing, especially the Grandpere part, and the herbs. Grandfather, yes, but a French Grandpere is different, damn it, he said. And for an editor! That’s what comes of letting myself be toned down too much by the Board! I’m not so dead yet as Robb seems to think. But surely he goes too far in saying that the Journal “speaks at best in the quavering accents of the aging and senile American influence in the Philippines”. Note you, he did not say the aging and senile influence of the Americans in the Philippines. He said, “the American influence”. And what is “aging and senile” in the American influence anywhere? 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-VILLE LINES Service to U.S. Atlantic Via Straits, Suez, Mediterranean FERN-VILLE FAR EAST LINES 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) 362 AMERICAN CHAMBER OF COMMERCE JOURNAL It seems to me that the American influence is a powerful one every where, and surely it is, from the world point of view, comparatively recent and rapidly growing,—not old and dying. As for the Americans in the Philippines, it would be a contradic tion in terms if we said American old-timers in the country are not old, and growing older, but there are more Americans here today, and young Americans, than before’ the war, although of course few of them are in the now independent Govern ment. The American Embassy per sonnel, however, is very much For High Efficiency and Low Operating Costs Type S double suction, single stage pump driven by Allis-Chalmers motor. MOTOR Allis-Chalmers Type S pumps are ruggedly built for high efficiency performance and low operating costs. They are versatile pumps used for almost any general pumping service. Sizes from 30 gpm and 10 feet of head to 7000 gpm and 475 feet of head. Suitable for motor, engine or turbine drive. A-C supplies you with complete unit made by same manufacturer—one purchase, one responsibility, one guarantee of satisfaction. TEXROPE* V-BELT ♦Texrope is an ALLIS-CHALMEBS Trademark Exclusive Distributors: THE EARNSHAWS DOCKS & HONOLULU IRON WORKS & Telephone: 3-35-41 I’. O. Box 282 more numerous, not to mention the Americans in the E.C.A. and other such American organizations. Amer ican business is not doing so well, a number of the more important younger American business execu tives who came here after the war have taken their departure during the past year or so, but that was because of unfavorable conditions which we need not conceive of as permanent. Still it is perhaps not without serious significance, to the Filipinos as well as the Americans here, that a man like Robb, who knows the Branch Office at Bacolod. Occ. Negros Philippines as few Americans do, has come to the conclusions he has and, although from a distance, and after a long absence, envisages the American community here as living under a creeping gloom and as trying to keep its courage up by whistling in the dark. Certainly not an inspiring picture for anyone. Certainly, it is not the picture that anyone of sound mind here, in or out of the Govern ment, and the Filipino people as a whole, would desire to paint or a state that they would want to bring about in reality. We can not pretend surprise, how ever, that Mr. Robb should have formed such an opinion, for there is cause for it as we all know only too well, especially in government inter ference of the last few years with business here, therefore American business, and American interest in the country. Much of the American interest here today is associated with the present world situation and will unquestionably decline as that situation resolves itself. But, personally; I still can not agree with Mr. Robb that the diffi culties of the last few years are likely to continue indefinitely or even to worsen. I am convinced that a better statesmanship, American and Filipino, will in time assert itself. 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