The American Chamber of Commerce Journal

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Issue Date: Volume XXXI (Issue No. 8) August 1955
Year: 1955
Language: English
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extracted text: Published monthly by the American Chamber of Commerce of the Philippines Elks Club Building, Manila, Philippines — Telephone No. 3-23-24 Member, Philippine National Committee, International Chamber of Commerce Member, Chamber of Commerce of the United States A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines Paul R. Parretts, President; W. C. Palmer, III, Vice-President; A. H. Henderson, Treasurer; F. C. Bennett, C. A. Larsen, M. S. Robie, E. E. Selph, F. H. Spengler, and Paul H. Wood. Stanley N. Fisher, Executive Vice-President; I. T. Sa Imo, Secretary Vol. XXXI August, 1955 No. 8 Contents Editorials— The New Trade Agreement to go into Effect in 1956................................................................. The Geneva "Summit” Conference....................................................................................................... Philippine Government Statistics........................................................................................................... Philippine-American Trade........................................................................................................... Philippine Trade with Britain and Europe............................................................................. The Philippine-China Trade......................................................................................................... The Future of Abaca...................................................................................................................... Philippine Foreign Trade Statistics, 1954 and 1953.............................................................. I. Twenty Principal Imports.............................................................................................................. II. Twenty Principal Exports.............................................................................................................. III. Total Trade, by Countries............................................................................................................ IV. Foreign Trade by Nationality of Traders............................................................................... The Business View— The Government........................................................................................................................................... Banking and Finance.................................................................................................................................. Manila Stock Market.............................................................................................................. Credit................................................................................................................................................................ Electric Power Production........................................................................................................................ Real Estate..................................................................................................................................................... Building Construction............................................................................................................ Port of Manila.............................................................................................................................................. Ocehn Shipping and Exports (Half-year figures)...................................................................... Freight Car Loadings................................................................................................................................. Mining.......................................................................................................................................... Lumber............................................................................................................................................................. Copra and Coconut Oil............................................................................................................................. Desiccated Coconut...................................................................................................................................... Manila Hemp................................................................................................................................................. Sugar.................................................................................................................................................................. Tobacco............................................................................................................................................................ Imports.............................................................................................................................................................. Food Products................................................................................................................................................ Textiles......................................................................................................................................... Legislation, Executive Orders, Court Decisions.............................................................. Taxes................................................................................................................................................................. Advertising...................................................................................................................................................... Chamber Business................................................................................................................................................. Cost of Living Price Index (1953-1954)....................................................................................................... Philippine Safety Council.................................................................................................................................. The “Let Your Hair Down” Column........................................................................................................ W. C. Palmer, III.......................................... G. H. W. Churchill...................................... Sy En.................................................................... M. S. Robie....................................................... Bureau of the Census and Statistics From Official Sources....................................... M. D. Arnold................................................... L. L. Recio......................................................... D. Burn............................................................... J. F. Cotton..................................................... A. Varias............................................................. J. J. Carlos....................................................... F. Delgado......................................................... E. H. Bosch....................................................... J. B. Libunao.................................................... H. A. Bri.mo....................................................... P. de Ocampo..................................................... W. S. Rice, Jr................................................... H. R. Hick........................................................... W. Pendarvis.................................................. J. H. d’Authreau............................................ B. Fernandez and L. Pujalte.................. S. SCHMELKES........................................................... C. G. Herdman................................................. A. Margolles.................................................... E. E. Selph................................................ W. Sycip............................................................... G. Cohen............................................................. S. N. Fisher...................................................... Bureau of the Census and Statistics......... F. S. Tenny........................................................ 50 CENTAVOS THE COPY 327 328 330 330 332 334 336 341 342 344 344 344 347 347 348 349 349 350 350 350 351 351 352 353 353 354 354 357 357 358 358 360 361 363 364 366 367 368 Watch your gas needle move more slowly— new Mobilgas -the famous Economy Run Gasoline - gives you greater economy than ever! NEW Mobilgas wit h Mobil Power Compound and Top Octane gives you more miles per gallon .... with better performance than ever! New Mobilgas contains Mobil Power Compound— a combination of these gas-saving additives: 1. The first saves by controlling pre-ignition and spark plug mis-firing. 2. The second additive saves by checking engine-formed gum, keeping carburetor and entire fuel system clear. The combined result is remarkable performance and exceptional economy. Performance you can feel at the touch of the accelerator. 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More for your money at Mobil Stations Editorials “ ... to promote the general welfare” The bills authorizing the respective Presidents of the United States and the Philippines to enter into a revision The New Trade Agreement to go into Effect in 1956. of the 1946 Trade Agreement ac cording to the terms embodied in the Laurel-Langley Agreement signed in Washington on Decem ber 15, 1954, have been duly en acted,—the Philippine bill having been passed by both houses of the Congress of the Philippines on May 10, 1955, and signed by President Magsaysay on June 18, and the corresponding American bill having been passed by the House on July 7, by the Senate on July 21, and signed by President Eisenhower on August 1.* The Economist (London) in commenting on this development in its issue of July 30, stated: “At first sight a trade agreement imposing duties on Philippine ex ports to the United States seems a rather odd and anachronistic way of rewarding the Republic for its support of the American point of view at recent Far Eastern conferences and for putting its own economy into better order. But the agreement which Congress has just approved in fact eases the transition from the special arrangements made in 1946 to help the struggling young Republic to a normal economic relation ship between sovereign and equal nations... Furthermore, Filipi nos gain more than do Americans from an agreement which has arous ed practically no controversy. “From next January, tariffs will be levied on goods being traded between the two countries. Under the 1946 Act [the Bell Act], payment of duties was supposed to begin in July, 1954, and was to be exactly reciprocal, with charges starting on both sides at 5% of the rates levied on similar imports from other countries and gradually rising to the full rate after twenty years. Now the United States tariffs on imports from the Philippines will start at a lower level and rise less rapidly than will Philippine tariffs on imports from the United States. The Philippine Government feels that needed industrialization has been hampered by the free entry of American manufactured goods; it is anxious to .check this as quickly as it can...” “Rather odd and anachronistic” as the new Trade Agreement may appear at first sight, it is only the latest of a series of modifications of the provisions first contained in the Hare-Hawes-Cutting Act of 1933, which the Philip pines found unacceptable, but which, with some slight changes, were embodied in the Tydings-McDuffie Act of 1934 which established the Commonwealth of the Philip pines as a transitional state to independence. The Ty dings-McDuffie Act was, in turn, amended by the TydingsKocialkowski Act of 1939, this measure substituting grad•The actual Trade Agreement has still to be signed by the two Presidents. ually declining quotas for the gradually increasing export taxes on some Philippine products and providing for the calling of a trade conference two years before the date of independence to consider the situation as it would exist at that time. The war then intervened, and after the war a new Trade Agreement was entered into based on the provisions of the Philippine Trade (or Bell) Act of 1946 which extended the period of relatively free trade for eight more years. This free trade period was to have terminated on July 3, 1954, but action taken by the two Governments that year resulted in the extension of the free trade period for eighteen more months, from July 4, 1954, to December 31, 1955, which extension was agreed upon to permit con sultation with a view to securing further mutually satisfac tory modification or revision of the Trade Agreement. Such mutually satisfactory terms were hammered out during some three months of negotiation and were em bodied in the Laurel-Langley Agreement already referred to. All these successive modifications have been in the same direction,—toward giving the Philippines more time to adjust itself to even the gradual cessation of the special trade relationship which has long existed between the two countries. The Agreement, which goes into effect at the beginning of 1956 and “shall have no effect after July 3, 1974” and which “may be terminated by either the United States or the Philippines at any time, upon not less than five years’ written notice”, but may also be terminated upon not less than six months’ written notice, “if the President of the United States or the President of the Philippines deter mines and proclaims that the other country has adopted or applied measures or practices which would operate to nul lify or impair any right or obligation provided for in this Agreement” (Article XI), is still not final in the sense of not being open to further modification. Article X reads, in part: “Not later than July 1, 1971, the United States and the Philippines agree to consult with each other as to joint problems which may arise as a result or in anticipation of the termination of this Agreement.” The Agreement was concluded with the aims clearly stated in the Preamble: 327 "ThePresident of the United States of America and th? President of the Republic of the Philippines, mindful of the close economic ties between the people of the United States and the people of the Philip pines during many years of intimate political relation, and desiring to enter into an agreement in keeping with their long friendship, which will be mutually beneficial to the two peoples and will streng then the economy of the Philippines so as to enable the Republic to contribute more effectively to the peace and prosperity of the free world, have agreed to the following articles...” It is the hope of us all that the Agreement will be mu tually beneficial and will strengthen the economy of the Philippines and that no further modification of the provi sions will be necessary. Both the original terms and their repeated modifica tion, however, are proof, if proof were needed, of the con tinued American concern in the welfare of the Philippines. The Geneva “Summit” Conference Of perhaps greatest interest to us, in this part of the world, as to the conference of the heads of the Big Four Powers at Geneva last month, is the fact that Far Eastern issues were not raised and that the emphasis was laid on what are principally European issues,—German unification, European security, disarma ment, and “East-West” relations, i. e. relations between Russia and the Western powers. (M. R. Masani.-of India, in a recent issue of Foreign Affairs, pointed out that the use of the terms “East” and “West” in this connection is misleading and unfortunate.) Even on the four issues raised, there was no real negotiation and the parties to the Conference were content to state their general positions. There was no agree ment,—agreement was not to be expected, but in a final directive which was issued, the foreign ministers of the respective parties were instructed to consider, at a confer ence to be held in October, “European security and Ger many”, it being stressed that they are closely linked, and the ministers were also instructed to work for “a progressive elimination of barriers which interfere with free commu nications”. The issue of disarmament was referred to the United Nati<?ns Subcommittee with the recommendation that it meet in New York on August 29. Whether the foreign ministers and the United Nations Subcommittee will be able to do any better than the Big Four, is a question. Though the principal Far Eastern issues,—as to Korea, Formosa, Indo-China, and the recognition of Communist China, did not specifically come up at the Geneva Confer ence, the four major issues that were raised lie at the base of the “cold war” and this is world-wide. The most basic issue of all, however, was, in so far as the world knows, hardly even touched upon. That is the issue between democracy and totalitarianism. There can never be free communication, any real trust, any real dis armament, any real security and peace until Russia become a real democracy. Until such time, Russia’s basic aim will continue to be to prevent German unity, to keep the Iron Curtain down, to push the United States out of Europe, and to extend its conquests over ever-widening areas. Contrarily, the West ern Powers will continue, in self-defense, to maintain the Atlantic Alliance and other similar pacts. There might be some limitation of armament, but there can be no real disarmament of the separate nations, unless democracy is established in Russia, or unless disarmament can be forced by some overwhelming international power to which Russia, slave or free, would have to bow. President Eisenhower talked in Washington, some days before the Conference opened, of changing the spirit in which international problems were approached. Cer tainly, if there was no real change in spirit, there was a change in behavior, especially on the part of the Russians, and there was, consequently, a notable change in the at mosphere in which the meeting was conducted. The mood established and maintained throughout approached the friendly, even the cordial. As one observer wrote, the Russians still said “No”, but they were “so nice about it”. A friendly air shrewdly assumed by an inflexible enemy is a dangerous thing because it relaxes vigilance. But it is to be noted that the Russian press reported the conference proceedings correctly and printed the full texts of the state ments of the Western leaders, and that Izvestia went so far as to state editorially that “a new era in international relations has begun”. This, wrote a commentator in the New York Times, is— “a remarkable turnabout from the tradition of keeping the Soviet peo ple completely ignorant about Western positions or of presenting those positions in distorted and incomplete form. Certainly, the friendliness shown by the Soviet leaders at Geneva and the corresponding tone of the press is at the other extreme ftom the deep hostility and virulent hatred that have been propagated at other times”. Of course, the Russian leaders could not well have instructed their press to treat the conference news differ ently, for if the normal press hostility had continued, the friendliness at Geneva would immediately have been proved to be insincere. The shift in the tactics of the Russian rulers from crude hostility to friendliness, therefore, entails certain dangers also for them at home, for their control has always been partly based on the maintenance of virulent anti-westem propaganda and on exploiting the people’s fear of “cap italist war-mongers”. It would appear to be true that the Russian rulers are seriously intent on improving their international relations. It may be that they have at long last only become con vinced of a fact that older governments long have known,— that good manners are of value in diplomacy. It may be, too, that the matter goes deeper than that. It may be that Randolph S. Churchill was right when he wrote: “The pattern of this curious conference is now becoming apparent and reality is beginning to emerge. The supreme and heartening fact is that all those on the summit are gradually but unescapably adjusting their minds to the incomprehensible and hitherto unprecedented fact that war has now become impossible... The great emergent fact is that both East and West now acknowledge the fact, face to face, that as a result of both sides having achieved the saturation point with the stock piling of hydrogen bombs, war has now become impossible... “In the first two days of this conference, it is already clear that the fear of war has passed and that the tensions of the past ten years have already been greatly eased. Indeed, though this was not plain before hand, the very fact that it was possible to hold this conference, was due entirely to the diminishing of fear and the lessening of tension. The mere holding of the conference, whatever may be decided or left unde cided, was in itself the proof of the pudding. “I can state authoritatively that this wonderful new truth is al ready crystal clear, in all its majestic simplicity, to the most thought ful minds of those at the summit and that it is a good deal more than half grasped by the Soviet delegation. It was quite dear at Sir An thony’s dinner last night that the Soviet leaders absolutely accept the solemn declarations given them by President Eisenhower, both in pub lic and private, that the West will never start a war against Soviet Russia.” Perhaps this conviction that war has become impos sible was an important factor in leading President Eisen hower to offer to exchange military blue-prints and facilities for unrestricted aerial reconnaissance with Russia, although this was not a new idea; it was first made by the United States in 1946 and received special emphasis in a “working paper” submitted by the United States to the Disarmament Commission in April, 1952. It was also practically a repe tition of the American proposal made by Secretary of State Dean Atcheson in 1951 for an international arms census and “disclosure with verification” to guide the Disarma ment Committee in drawing up a program. Over against this view of war as impossible, we have the recent statement of Bertrand Russell: “The nations must be prepared to give up some sovereignty to es tablish a world government. We have to do that sooner or later, or some madman will forget that war is impossible.” 328 In MINING its IH POWER THAT PAYS! R-164 Series, International Dump Truck. Gross Vehicle Weight, 17,000 pounds; Body dimensions in inches: 108x78x15. Proved steel flex frame. Wide variety of trucks and dump bodies available. Hough Payloader. % to 3 cu. yd. bucket capacities. Digs, loads, levels, backfills, spreads, lifts, lowers, pulls and pushes. Drott Skid-Shovel on International Crawler. Lift Capacity from 3,000 to 9,000 pounds, 4 models. Digs, fills, rolls back, transports, raises, loads. RD24A12 Ready-Power Engine Generators—100 KW. Powered by International Diesel Engine. Complete with all controls neces sary for successful operation. Generators from 5 KW to 50 KW. 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Get in touch with your nearest 111 dealer or International Harvester Com pany of Philippines, 154 Marques ce Comillas, Manila. Other Mining Equipment. Available: • Bottom Dump Wagons • Scrapers • Power Units BRANCHES AND DEALERS THROUGHOUT THE PHILIPPINES The final escapes from a new world-war cataclysm appear to be either the democratization of Russia or world government. At most, Geneva was only a good beginning. The “acid test”, as President Eisenhower said, will come when the foreign ministers meet in October. We have recently received a number of publications of the Statistical Training Center, University of the PhilPhilippine Government Statistics ippines, established in 1953 by the Phil ippine Government with the coopera tion of the United Nations, of which Dr. Enrique T. Virata is the Acting Director and Dr. M. B. Givens the United Nations Principal Statistical Advisor. Among these publications is a mimeographed 50-page brochure of special interest to businessmen,—“Statistical Services of the Philippine Government”, which gives a description of the series of statistics collected, processed, and published by the various government entities; surpris ingly, there are over 40 bureaus and their divisions, com missions, administrations, and services which issue statis tics. The principal entities in this respect are, of course, the Bureau of the Census and Statistics, under the De partment of Commerce and Industry, and the Depart ment of Economic Research of the Central Bank of the Philippines, but other important statistical series are is sued by other bureaus under the Department of Com merce and Industry, and by the various bureaus and other entities under the Department of Agriculture and Natural Resources, the Department of Labor, the Department of Finance, the Department of Education, the Department of Public Works and Communications, the Department of Health, and the Department of Justice, and, also, by the General Auditing Office, the Budget Commission, the Rehabilitation Finance Corporation, the Philippine Na tional Bank, the Commission on Elections, and the Manila Railroad Company. In each case there is a description of the statis tics prepared, a statement as to how the data is collected and as to how the statistics are processed and published. In the Introduction it is stated: “The principle of centralization of government statistics which was reflected in the Bureau’s set-up [the Bureau of the Census and Statistics], has not been workable on a government-wide basis, and statistical activities soon reappeared in the other department of the government, as is reflected in the summaries contained in the follow ing pages. The present pattern of the statistical services is one of de centralization, with individual departments active, especially in the use of reporting and statistics in the measurement and analysis of the operations, while the Bureau of the Census and Statistics serves as the specialized multi-purpose statistical office. Meanwhile, statistical functions and positions now appear in the plantillas of virtually all de partments and agencies.” It is also stated: “The importance of statistics for government in the Philippines has received growing recognition during the post-war years. This is reflected in a widespread growth of statistical activity as an aid to ma nagement in the measurement of operations and results throughout the government, as well as in the provision of basic information on the population and socio-economic life of the country.” Philippine-American Trade By W. C. Palmer III Vice-President, American Chamber of Commerce of the Philippines FOR a long period of years before the war, the United States bought about 80% of our total exports, and we bought from the United States about 60% of our total imports. Skipping the war-years, when our foreign trade was totally suspended and skipping also the first post-war years when our trade was in an highly abnormal state due to the heavy importations needed and our inability to export in any large volume, we take here the years from 1949 to 1954. As the table shows, during the 6-year period under review, if we average the annual percentages, the United States bought only 68% of our total exports, as compared to 80% before the war, and we bought from the United States some 74% of our total imports, as compared to 60% before the war. In other words, the proportional relationship between our exports to, and our imports from the United States, has been reversed. Percentage-wise, we are selling less of our total exports to the United States and buying more of our imports from the United States than we did before the war. With that reversal, our favorable balance of trade with the United States has disappeared, and with it the favorable balance in our total trade. For before the war, the favorable balance with the United States always more than offset our unfavorable balances with some other countries. * This and the two following addresses were delivered before the Rotary Club of Manila on "International Commerce Day", July 14, 1955, at the Manila A s to the trend during these 6 years, the annual percentages show, as regards our exports to the United States, that the percentages have continued to decrease in proportion from 72% and 73% in 1949 and 1950, re spectively, to 61% in 1954—as compared, remember, to 80% before the war. On the other hand, the annual percentages show, as regards our imports from the United States, that the per centages have also decreased from 80% in 1949 to 72% in 1951, the percentages rising again in 1952 and 1953 to 73% and 77% respectively, and then dropping to 68% in 1954. The 60% of the pre-war years, however, has not yet been reached. These percentage figures show that while the United States is still our primary export and import market, it has, I. PHILIPPINE FOREIGN TRADE (F.O.B. value in thousands of pesos) (Pre-war average percentages 60% 80%) Total Total United States Year Imports Exports Imports from Exports to 1949 ............. Pl,172,750 P507.510 P938.580 (80%) P363.773 (72%) 1950 ............. 684,865 674,339 510,472 (74%) 491,166 (73%) 1951 ............. 980,025 871,014 700,800 (72%) 567,200 (65%) 1952 ............. 846,097 703,836 617,083 (73%) 473,604 (67%) 1953 ............. 914,046 807,573 702,401 (77%) 551,800 (68%) 1954 ............. 965,284 810,327 652,702 (68%) 490,491 (61%) 1949-1954.. Average Percentages (74%) (68%) Based on the Central Bank of the Philippines, Statistical Bulls tin, March 1955, p. 99. 330 August, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 331 FIRSTandBEST since the war, been slowly becoming less so. We are ob viously finding other markets for at least some of our ex ports, which is a good thing, but we have apparently so far not been able to find other countries where we could buy as advantageously as in the United States. tf we consider the absolute trade figures rather than the percentage and proportional figures, we have, first, the fact that during the pre-war Commonwealth period froYn T936 to 1941, the average annual total figures were: Total exports.................................. ? 312,200,000 Total imports.................................. 245,200,000 Ce 1954, P. 39. Total foreign trade........................ P 557,400,000 The favorable annual average trade balance was P67,000,000. They were the good old days,to be sure! And we were getting only such prices for our main export products as seem impossibly low today! (See table II.) Comparing those figures with the average figures for the 5-year period, 1950-1954 (I am omitting here the 1949 figures because the imports for that year were still abnor mally high). The average annual total figures were: Total exports................................... P 773,418,000 Total imports.................................. 878,061,000 Total foreign trade........................Pl,651,479,000 The unfavorable balance was an average P104,643,000. And we were getting very high prices for our export pro ducts compared to pre-war. You will see that in peso-terms, our average annual exports during those five years were almost 2-1/2 times our exports before the war, and that our average annual imports were about 3-1/2 times our imports before the war. But in making such a comparison we have to take into consideration not only the change in the vahie of the peso and the changes in the prices of our imports and ex ports, but the increase in our population. I have not had^ the time to make such a study, but when we consider thatT the population since 1936 has increased from around 16,000,000 to. nearly 22,000,000 (an increase of around 37%), the increase in our trade is not spectacular even if we dis regard the other factors. There has, of course, been a con siderable decrease in the prices of most of our exports since 1950. qr'HE export and import tonnage figures give us perhaps a better idea of the actual physical growth in our trade. Inward or import cargo tonnage in 1940 amounted to around 2,000,000 tons and outward or export cargo to around 3,400,000 tons. In 1953 the inward cargo tonnage was around 2,400,000 tons and the outward tonnage was 5,000,000. That shows, surprisingly enough, a rather small in crease (some 20%) in the bulk of the inward or import tonnage, but about a 48% increase in the bulk of our out ward or export tonnage. The figures are all rather bewildering, if not confusing. But the “lesson” we may perhaps draw from them is that our importations are no larger than they should be and we might well import more in view of the growing needs of our growing population and what should be a rising standard of living, but that our exports have not been large enough to enable us to import more to make a generally good standard of living possible. We must increase our production and our export trade if we are really to make progress instead of merely talking about it and wishing for it. Such an increase will require capital and much more new investment than we have suc ceeded in attracting so far. To get capital we must have a favorable investment atmosphere and stable labor rela tions. Philippine Trade with Britain and Europe By G. H. W. CHURCHiLL President, Manila Chamber of Commerce As President of the Manila Chamber of Commerce I was asked to speak to you today on Philippine trade with England. As the membership of the Manila Chamber of Commerce represents 13 nationalities, and of its 65 mem bers 17 are Filipinos, 16 are British, 13 are Americans, 7 are Swiss, and the rest Spaniards, Danes, Swedes, Ger mans, Dutch, Canadians, etc., I hope you will not object if my talk embraces trade with European countries in general. Trade with the United States and China is covered by other speakers. Up to -the turn of the century, most of the Philippines’ foreign trade was with European countries and there are still in the Philippines today some of the import and ex port houses which handled a large proportion of that trade. I refer particularly to Warner Barnes, started in 1822, Wise 8b Co. in 1826, Ker 8b Co. 1827, Smith Bell 8b Co. 1846, Elizalde 8b Co. 1855, Cia. General de Tabacos 1881,-Ed. A. Keller 1887, and Kuenzle 8b Streiff 1889. Incidentally, the Manila Chamber of Commerce itself was founded in 1899. With the 20th century came American influence and the various trading agreements between the Philippines and the United States which have channelled the bulk of the country’s import and export trade toward the United States. By 1954 only 8.8% of Philippine imports came from Europe and 20% of Philippine exports went to Europe. In that year and while total Philippine imports ex ceeded exports by P155,000,000, exports to Europe were nearly double imports from Europe, and exceeded them by P77,000,000. The main. exports to Europe are abaca, copra, and tobacco, while the main import from Europe is machinery. Britain is one of the oldest traders with the Philippines and has over the centuries established a fairly traditional pattern of trade with this country. Long-established Bri tish firms and banks have made their contribution to this trade which, over the years, has changed only slightly. This has led to a very stable relationship and to wellestablished markets as much for certain Philippine exports, mainly abaca to Britain, as for certain British exports to the Philippines. Because of the disadvantage at which British goods—and in fact goods from all European coun tries—are placed in the face of the preferential treatment 332 Good lighting makes learning easier! NOW that the children are back to school, it’s time to think about how your home lighting can help to safe guard their sight. Children depend more and more on artificial light for study, work and play. Don’t take chances with your child ren’s precious eyes. Be sure that there is a good study lamp with the right size bulb available for them. It costs so little to give them the kind of pro per lighting that will let them do their homework with real eye comfort and without strain. Good light will make their studies easier. 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Following the pattern of its traditional trade with the Philippines, and apart from supplying Scotch whisky, cotton thread, and other specialities, Britain has mainly supplied machinery and manufactures. Of great help have been the special facilities given for the establishment of new and necessary industries in the Philippines where im ports of machinery, machine parts, and raw materials under certain circumstances and within stipulated limits, are permitted to enter the country free of duty. Under this scheme British machinery, and that of other countries, has been placed on an equal footing with that of the United States, and Britain has thus succeeded in supplying worth while equipment to assist the industrial and economic progress of the country. As a result in the textile field as well as in the assembly of motor cars and radios, and to a lesser extent in other fields, British goods are now repre sented ill this market to a degree to which it would not have been possible previously. International trade should flow in as free and unfet tered a fashion as possible, and Britain is one of the world’s leading exponents of this policy both in theory and in prac tice. Thus British exporters, and in fact all European ex porters, welcome the revision of the Bell Trade Act which gradually, during the next 9 years, will close the margin of preference which so far and in many cases has priced them out of the market: this should result in a big increase in imports from Europe. But the Philippines in turn will rightly expect a corresponding increase in its exports to Europe. It is significant that since the war total Philippine exJports have lagged behind total imports. If this imbalance of trade is to be adjusted, the Philippines must increase its exportable production. This increased production can not be brought about without increased investment, and because there is insufficient Filipino capital ready and avail able to provide this additional investment there is a great need for legislation to encourage such investment from abroad. Opinions on the advantages and disadvantages of new foreign investment differ greatly. My own view is that every new industry in the Philippines irrespective of its ownership adds wealth to the nation merely because the industry is in the Philippines. It adds wealth because it produces more goods and because it finds employment and provides training for more Filipinos. More employment means more money, and more goods mean cheaper prices— together they produce a higher standard of living. But the foreign investor is still shy about coming to the Philippines because the climate for investment is not nearly as encouraging as he would wish. He wants to know before he invests his money that there will be no restric tions to prevent him from competing on level terms with the nationals of the country. He needs assurance that he can repatriate his capital investment over a reasonable period of years, and he needs assurance that he can remit his profits—a fair return on his investment. He does not ask, nor does he expect, a guarantee that he will make a profit here, and he considers the question of profits or losses a normal commercial risk on which he is prepared to take a chance. It is hoped that those in whose power it is to fashion the necessary legislation to encourage the entry of foreign capital will bear these thoughts in mind. The Philippine-China Trade By Sy En President, Philippine General Chamber of Commerce I GREATLY appreciate the honor of addressing this dis tinguished gathering. The theme of today’s meeting is Philippine foreign trade. I shall speak first on PhilippineChina ties, as I believe that while the present extent of Phil ippine-China trade may not be of major significance, its potentialities can be best understood and measured in terms of the general background of relations between the two countries. The relations between the Philippines and China consist not only of trade and commerce but also of culture and friendship and even ties of blood, and such relations antedate Philippine relations with other foreign countries by many hundreds of years. Philippine historians agree that Chinese first opened the Philippines to foreign trade. Chao Ju Kua, a Chinese chronicler, during the Sung Dynasty, that is in the 10th cen tury, described the lively and extensive commerce carried on by Chinese trading vessels visiting the Philippines. Such trade, entirely on a barter basis, was not confined to Luzon only, but extended to the other islands of the archipelago. And the Chinese did not confine themselves to sea-ports such as Manila, but penetrated into the long inland-water ways of the Philippines. The Chinese were, in the truest sense, the entrepreneurs in Philippine foreign trade. From pre-Spanish to Spanish times, the Chinese not only traded with the Philippines but actively contributed to the development of Philippine economic life in many other ways. In the same way that Chinese traders stimu lated commerce so did Chinese artisans and craftsmen sti mulate all types of industrial and productive activities, both as workers and as teachers. The Chinese introduced to the Philippines, among other things, mining methods, metal work in iron, bronze, copper, and gold, carpentry, the extraction of juice from sugar cane, and other useful activities. Morga, whose history o’f the Philippines was richly annotated by Dr. Jose Rizal, wrote in 1609 that “the colony cannot exist without the Chinese as they are workers in all trades and business and are very industrious and work for small wages.” It may be safely stated that the Chinese contribution to the economic life of the Philippines represents one of the most important factors in the progress of the country. This is not to disparage the considerable contributions of other foreign elements; but the fact remains that no other foreign people have been more closely identified with the daily eco nomic activities of the Filipinos than the Chinese. 334 x^oming to the 20th century, Philippine-China trade has not presented an encouraging picture. But while formal trade between the two countries did not progress in recent years, the actual participation of the Chinese in the economic life of the Philippines has proceeded apace and it can truly be said that the Chinese in the Philippines exerted their all-out efforts to help the progress of the Philippines during the last 50 years in trade and industry. Even the foreign trade of the Philippines, both Export and import, the Chinese did their best to carry on; and the Chinese, as wholesalers, retailers, and agents have stimulated activity in every conceivable branch of trade and commerce, both foreign and domestic. The Chinese, as merchants, have ventured to every remote cor ner of the country, and have indeed gone into places where others have not ventured, and they have, as modest ban kers and financiers, attended to the needs of the humblest Filipino farmers and producers. The Chinese not only risk their capital, their investment, but also labor all their lives to serve the people. The essentiality of their service to the livelihood of the people is a very important factor which should not be overlooked. 't'he end of World War II found the Chinese in the Philippines working hand in hand with the Filipinos in the tremendous task of economic reconstruction. Those of you who were here in the Philippines during Liberation will remember that the Chinese, with industry and courage, helped start the wheels of commerce and industry turning again. I believe that not sufficient credit has been given to the Chinese for the role they played in helping the Phil ippines recover from the devastations of war; what the Chinese did in their humble part was to meet the demands of the Philippine economic situation. Never was there in tention to do anything harmful to the economic growth of the Philippines, nor to dominate or control the Philippine economy. The lack of a fair appreciation of Chinese efforts has resulted in such measure as the Retail Trade National ization Law. Personally, I believe the law has, in effect, penalized the Chinese for their essential entrepreneur ser vice which the average Filipino buyer has sought. And I also believe the law is detrimental to the economic well being of the nation. The past year saw the adverse results of this law, with tax collections declining, unemployment increasing, commodity-distribution disturbed, foreign in vestment hesitant. I am sure our Filipino friends share the view that the law has many defects. While the aftermath of World War II dramatized the effective role the Chinese in the Philippines played in the economic rehabilitation of the country, formal trade relations between the Philippines and China failed to deve lop to any degree. This was due largely to the difficult prob lems, both within and without, which China has been facing. But we are confident that this is a temporary cala mity, only but a period in the expanse of recorded history. The people of China, as their history attests, have always overcome overhelming odds, and it is only to be expected that in due time we will have a united China; the future will tell that China, a vast world market, once free, will usher in the golden era of Philippine-China trade. For the present, I take the view that we should seriously develop commerce between Free China,—Taiwan, and the Philip pines. Recent events have underscored the importance of Free China in Formosa to the security of the Philippines. It seems natural that we should strengthen relations be tween the Philippines and Free China in all fields of activity, including trade. Although the volume of trade between the Philippines and Formosa has been small, statistics show the trade balance is heavily in favor of the Philippines. The principal items of export from the Philippines are logs, timber, Manila rope, and leaf tobacco, but possibility exists for iron ore, pyrite ore, manganese, abaca, copra, and co conut oil, among other products. Formosa can export to the Philippines many products, including rice, tea, coal, textiles, steel sheets, aluminum, caustic soda, chemicals, paper, asphalt, and other items. Although both areas have similar economies, it can be seen that there are products which they can supply to each other. The neglect of trade between Formosa and the Philippines has been recently pointed out by many business editors here in the Phil ippines. A good starting point can be made if a barter agree ment between Free China and the Philippines is concluded. Great things grow from small beginnings. Trade between the Philippines and Free China now can very well be the beginning of important future commerce between the two countries, when the China mainland is recovered, and when China finally emerges as a great world market in inter national trade. // AS for correcting the balance of trade . . .foreign trade, left to itself, will balance itself. It will balance itself for the simple reason that sellers insist on being paid for the goods they sell. What is unbalancing British trade now is exchange control. If the pound were set free it would seek the level that would balance imports and exports. A decline in the pound, for example, would raise the cost of imports, so discouraging and contracting them. It would increase the profit margin on British exports or reduce their foreign money cost, so encouraging and expanding them. Ironically, Chancellor Butler now gives as his reason for postponing free exchange rates the very unbalance of trade that is caused by the existing ban on free exchange rates.—HENRY HAZLITT in Newsweek, August 15. 335 The Future of Abaca* By Merle S. Robie Vice-President and General Manager, Columbia Rope Co. of Philippines, Inc. Abaca "tuxies" being brought in from the abaca fields to be loaded on trucks and taken to the shed where the fiber will be extracted rom them. It is from these tuxies that al! th ime. With today s production methods, thi 'eight. e useful fiber is obtained, with the remainder of the abaca stalk being unutilized at the present e average percentage of useful fiber taken from a stalk amounts to only about 2% of the total I HAVE listened with great interest to many of the remarks which have been made during this two-day convention, and have read with keen interest all of the literature that has been distributed to the delegates. Let me state that there is no question but what the fundamental problem facing abaca producers in the Philippines today is the low price which they are receiving for their fiber. During the past day-and-a-half you have listened to a variety of theo ries as to what could be done to correct the price. Many of the proposals advanced are certainly worthy of further study. I am in complete agreement with Secretary Araneta’s opening remarks that the only real problem remains the low price of abaca. The question thus evolves itself into why the price of abaca is so low and then, further, what can be done by the industry to correct that situation. It has been rather disappointing to learn that many of you feel that the only solution to this problem is through the establishment of a government corporation to trade in this material, which would conceivably operate on the basis of guaranteeing a minimum price to abaca producers. On •From a speech delivered before the First National Convention of Abaca Planters, March 16, 1955. this subject I have two principal thoughts. Firstly, it is my belief that we should exhaust all other possibilities for helping the industry before we give serious consideration to putting this Government or any government into busi ness. The fundamental approach of the Eisenhower Ad ministration in the United States and that of the Magsaysay Administration in the Philippines has been wherever possible to get the Government out of business. This has proved to be a wise economic policy in general. Therefore, I say again, let us, representing all the component parts of the abaca industry, make a thorough study as to what we can do to solve all of the problems facing us. We need the help of Existing government agencies and probably a more enlightened view on their part toward the problems of the industry. But to me, it is still to be proved that the salvation of the abaca industry in the Philippines involves the establishment of a government corporation. Secondly, and most important, we come to the question of how such a government abaca corporation would operate. In the day-to-day business of buying abaca in the Philippines and selling it abroad, I can tell you very truthfully that the cor poration would find it is by far the most competitive busi 336 ness in the Philippines. Theoretically, its main purpose of operation would be to stabilize prices, and further com petition at this time both in buying and selling would not help in this regard at all. We therefore come to the point which was the subject of considerable discussion yester day morning,—that of a price-support for abaca by the Philippine Government. This could eventually prove to be a necessary and desirable feature, but before the Gov ernment decides to go ahead with this proposal, I think a considerable amount of economic study and research should be made. The question arises as to whether or not the Philippine Government can afford to subsidize the abaca industry in the Philippines, and whether or not, with the present position of Philippine abaca in world markets and the problems of the industry here, it would be a good investment for the Philippine Government. This and other problems of the industry I propose to discuss briefly with you here today. ■piRSTLY, I would like to comment on a few of the remarks which have been made by some of the previous speakers. Although I agree in principle with almost every thing which has been said regarding the state of the indus try, there is one point particularly to which I must take exception. That is the statement made by several that there is a big demand for abaca throughout the world today. This is, to my way of thinking, not a correct state ment. If it were true, I can assure you that with the pre sent production in this country you would have no concern about the price of abaca. To prove this point, I would like to cite to you just a few figures for some of the principal markets for abaca abroad. Let us analyze what for many years was the principal market for abaca abroad, namely, the United States market. From 1935 to 1938 the average consumption by the United States of Manila hemp ran in excess of 300,000 bales annually. This figure was actually exceeded during the years 1949 through 1952 when the an nual consumption of Manila hemp was running in the vi cinity of 450,000 bales per annum. In contrast to that, let us analyse the United States demand for 1953 and 1954. For 1953 the United States took just under 300,000 bales of Philippine abaca and during 1954 the total take was under 200,000 bales. Now let us turn to Japan, traditionally our second largest customer for Philippine abaca and today our first and most important customer. In 1953, Japan took 235,000 bales from the Philippines, whereas in 1954 it took only 218,000 bales. This compares withan average during the 1935-through-1938 period of in excess of 400,000 bales annually. In the case of the United Kingdom and the Continent of Europe, although their consumption has actually been increasing, their take from the Philippines is still considerably less than in the pre-war years. Ana lyzing all of these factors, how can any of us honestly say that there is a big demand for abaca in the world today? Such is not the case. There does, however, still exist a sub stantial demand for Philippine abaca and it is sufficient to keep a flourishing industry existing in the Philippines if we can meet and solve some of our problems. It is prob ably true that the industry should not be of the same size that it was during pre-war days because the world economy and world circumstances have completely changed. Before going on to other points, I would also like to comment brief ly on a statement included in the report of the Abaca Com mittee appointed by the President last year which states that the world distribution of abaca is practically controlled by two firms, namely, Landauer fit Co. in London and R. L. Pritchard 8s Co. in New York. This in my considered judg ment is definitely not true. The two firms mentioned are probably two of the largest firms dealing in abaca today in the world and my firm has the privilege of dealing direct ly with both of these firms. At the same time, however, it cannot be stated that they control the distribution of abaca in the world. In the first place, R. L. Pritchard & Co. deals only in abaca in the United States and Canada and Landauer & Co. only in the United Kingdom and the Continent of Europe. Neither of them is involved in the distribution of abaca in Japan which is today our largest market. On the part of our Company, which is the largest exporter of abaca from the Philippines, there may be days on end where we do not sell any fiber to either of these two firms because other firms competing with them are able to pay us higher prices from time to time than either R. L. Pritchard & Co. or Landauer & Co. Therefore, on the face of it, I am sure that you will agree with me that the state ment that those two firms control the world distribution of abaca and consequently the price, must be considered some what erroneous. ivtext let us analyze what the reasons are for the present low price abroad and consequently to the producers here for Philippine abaca. In other words, why is there less demand for Philippine abaca today? Among the most important factors bringing this about I would list: (1) The production of competing fibers is definitely at a level higher than it was before the war,- most impor tant, the production of sisal in East Africa which produced The baling gang preparing two bales to be pressed while one bale is being pressed at the same time. Bodega in Davao City. This is the newest installation in the Sasa Workers piling up the bales of hemp after they have been pressed. Photographs by V. G. Miller 337 121,000 long tons on a pre-war average and which is today averaging 181,000 long tons a year.1 This makes East Africa the No. 1 producer of hard fiber instead of the Phil ippines. Countries involved in the production of sisal in East Africa were not disrupted by World War II to the ex tent that the Philippines was, and consequently, their cost of production has not advanced to the same extent. They are consequently able to effectively undersell us in world markets. It is true that for many users sisal is nowhere nearly as desirable a fiber as abaca, but practically there has been and there will always be a relation in price be tween the two. In other words, abaca cannot sell at a price too much higher than sisal, or it then becomes more ad vantageous for the consumers to use sisal.' /In addition, we have lost a great part of our market for abaca in Europe to sisal, not only because of price, but because of exchange difficulties since the United Kingdom and other European countries do not have a plentiful supply of dollars at all times with which to buy abaca, whereas they are in a better position as regards sterling which they can use to purchase British East African sisal. Japan has also had problems with the balance of payments and with a dislocated eco nomy which has cut its consumption of Manila hemp.-' Now in regard to the situation in the United States the reason for a much lower demand there is two-fold. Firstly, in the last two years there has been a cessation in the buying by the United States Government of the Philippine abaca for stockpiling purposes. In addition, at the same time that it discontinued stockpiling Philippine abaca it also took Central American production of abaca into the open mar ket in the United States in direct competition with the fiber from the Philippines. At this time I think it desirable and advisable to dis cuss honestly and objectively the government situation regarding Central American abaca and its marketing. This project was started by the United States Government prior to World War II on the grounds that the fiber was needed for strategic and logistical reasons in the event the United States should be cut off from the Philippines. This definitely proved to be the case and the plantings which were made in Central America proved to be a life-saver in the war-time economy of the United States during World War II. In the years immediately following the cessation of war activities in 1945, the Government decided, as the world situation continued tense, to stockpile various stra tegic materials including abaca. The objective volume wise toward which the Government is working is not known to any of us people in the trade, but we do know that a very substantial volume was involved. This program continued until 1953 and not only added considerably to the demand for Philippine abaca, but the greater part of the Central American production was also going entirely into the stockpile, directly or indirectly. We now come to the situa tion where buying for the stockpile was discontinued by the United States Government. At the same time the deci sion to this effect was reached, it was also decided to market the Central American production competitively in the United States market. This had a combined effect on the total world abaca market of making about 300,000 bales additional available for purchase by consumers, and, conse quently, the inevitable happened and prices in general since that time declined. In our discussions about the pro cedure being followed by the United States Government in marketing Central American abaca, one point should be made very clear and that is that all of this fiber is de corticated fiber. As such it is most directly in competition with Davao abaca and not with Bicol and Leyte, and when we freely make the statement that our abaca is better than Central American abaca, this is certainly not true when you consider that approximately 35% of our total non Davao production falls into the grades G and below. For NOTE: A long ton of sisal is approximately equal in weight to 8 bales of many years the price of Davao JI has been used as the cri terion for the market either locally or abroad. Therefore, the situation is today in New York that in order to market Central American abaca, they have decided that the price should be 1/2 of 1 cent per lb. below the last selling price of Davao JI. This indeed puts us as exporters in a most difficult position, inasmuch as even if we wish to reduce our price in New York in order to make selling progress, that Central American abaca is still selling 1/2 of 1 cent lower than our price. In addition, there is a large inventory pre sently in warehouses in New York of Central American abaca and therefore, the smaller manufacturers in the United States can get delivery in a much shorter period of time from the Government than they can if they place orders for shipment from the Philippines. This has resulted in another unfair feature of the marketing program which means in actuality that it is no longer necessary for any rope manufacturer in the United States to keep as large an inventory as he did previously, as the Government is doing this for him. I do feel that this system of marketing is unfair to the producers in the Philippines and that active intercession should be taken by your Government on your behalf. t et us now turn for a moment to the factors contri" buting to the high cost of production in the Philip pines. In this category I would list— 1. Implementation of the Minimum Wage Law. 2. Over-all cost,—increased cost of fuel, equipment, and transportation. 3. Applying particularly to the Davao area, the cost of mosaic-disease control. These are indeed hard factors to counteract, and although it is easy for us to state that we must reduce our cost of production, it is a most difficult thing to do under presently existing conditions in this country. t et us turn to the position which we as exporters of •k abaca abroad find ourselves. Our interest in this whole problem of abaca prices and marketing and produc tion is just as great as that which any of you have. Our pri mary object in being in the abaca business is to pay to producers in the Philippines just as high a price for fiber as is commensurate with the prevailing prices in world markets, allowing for ourselves a very nominal margin of profit, and I can advise you very honestly and definitely that this nominal margin of profit has not prevailed for the exporters in recent months. Ours is a tough competitive business and no one realizes better than the exporters as a group that if the overseas prices are not high enough to allow the payment of prices above the cost of production in the Philippines that we are faced with a considerable decline in the industry as a whole here in this country. The statement has been made that the margin between over seas selling prices and local buying prices has widened dur ing the past several years. If you will carefully analyze fi gures issued by your own Government, you will see that this is not true. Instead, the spread between overseas sel ling prices and local buying prices has narrowed during the last few years and the most interesting part of this is that it has narrowed during the period when our expenses as exporters have been steadily advancing. The implemen tation of the Minimum Wage Law has actually advanced our cost even more than it has your costs as producers since our laborers are classified as industrial, not agricultural. We have had increased government charges levied on us. The Fiber Inspection Service fee has been increased, export taxes have been levied in certain areas in which we all ope rate, and also warehousing taxes have been levied. We have to cope with what I consider unnecessary procedures in dealing with various government bureaus. For exam ple, we have to secure permission to export abaca to the United States, to Japan, or to England, from the Export Control Committee. Exporters here of abaca are not in 338 terested in selling to Russia or other Communist countries and it certainly seems to me that a policy could be laid down by your Government authorizing the export of abaca to a selected list of countries, such authorization to be granted without red tape and unnecessary expense. All of these things are not too large in themselves, but they combine to add greatly to our cost of doing business. The expenses of our Company alone in securing necessary permits to ex port abaca from the Export Control Committee amount to Pl2',000 yearly covering shipments of fiber to friendly coun tries. VV7E come to the question as to what can be done by pro™ ducers and exporters to help reduce our cost of pro ducing and processing abaca fiber for export to the world markets. Insofar as the producers are concerned, it would indeed be helpful if the cost of transportation could be cut for them. The road-building program which your Govern ment is undertaking should help in this regard. I know of many new producers in South Mindanao who have to pay ?6 to P8 per picul to get their fiber into exporters’ ware houses. Whether or not labor costs could be reduced is a subject on which I do not care to dwell because it is a very controversial issue at the moment. The fact does remain, however, that implementation of the Minimum Wage Law has certainly raised the cost of placing a bale of Philippine abaca abroad. One point at which producers can do some thing to help themselves is in improving the quality of their product. I know from personal experience in 1940 and 1941 in Davao that the average price received by the planter for his production in nearly all cases approximated the price of Davao JI. Today the average price which he receives is P2 to P3 lower than the price of JI. Now in the non Davao areas, we know that of the grades G and below pro duced, that they are in direct competition with sisal to a much greater extent than the better grades. And when we consider that of the total non-Davao production last year, nearly 40% fell under this category, you can see that all of our abaca is not really a quality product and could be improved considerably. Exporters themselves should tty to improve their baling methods. We are still baling hemp in the same way basically that we did 50 years ago. There is no doubt but what improvements can be made and in this we need the help of the Fiber Inspection Service. The Service should be flexible toward any plan brought before them by any exporter trying to change the packing or size of the bales so that the cost of processing can be reduced. *t«here are two other points which I should like to touch J- on briefly. One is the question of reducing the num ber of grades. In this regard please remember, and I think all of you producers will know exactly what I mean, that if I and JI were combined and you were to get the same price for your product that you would no longer produce I, but you would produce JI. This would result in the disap pearance of the higher of the two grades combined, and I am not sure that this would be to the best advantage of the industry. A committee has been appointed to review this matter and I think that it should consider the whole picture very carefully. It is my view that many of the lower grades can be combined. Secondly, I would like to touch very briefly on the question of synthetic substitutes or man made fiber in competition with vegetable fiber such as abaca. As yet you do not have too much to worry about in this connection. Of all the synthetic fiber produced in the United States in 1952 only an infinitesimal percentage found its way into the production of cordage and twine. Only 750 tons out of a total of 65,000 tons found its way into production of cordage and twine. Nylon rope has some features which make it better than Manila rope, but Manila still has some advantages which nylon has not yet reached. The price of nylon rope remains nearly 3 times that of rope made from abaca. Of course, the greatest concern which we must feel is that, as production increases and manufac turing methods are improved, the cost of nylon and other synthetic fiber may be reduced greatly. Actually, however, this may be a blessing in disguise and ease the pressure on abaca and/or sisal in the long run. I say this because, as further declines take place in the price of nylon, there would then be increased demand for it for other purposes as the use of this material in apparel and household fabrics would be much greater than it is today. tn closing my remarks I would like to leave with you a A suggested program which I think would bring some po sitive results to the industry and also help to correct over a period of time the presently existing low level of prices. The program which I would recommend for your consid eration involves 9 principal points which are as follows: 1. Organize yourselves into a powerful organization, capable of making itself heard on the matters affecting your industry. Various committees and individuals in the past have been aware of the competition from Central American abaca, but as yet I do not believe that any results have been secured. I am reliably informed that the Secre tary of Agriculture is now taking action on this matter and I wish him the best of luck, but in the meantime it is up to you as producers to band yourselves together in an efficient organization to follow up on these problems. 2. Mosaic disease should be brought under control with the help of your Government. Possibly too much pub licity has been given abroad to the problems of mo saic which certainly are serious enough, particularly in Davao, but on the other hand, you can be sure that the United States Government will not give up the Central American project as long as it continues to read headlines from the Philippines stating that the abaca industry here faces extinction as a result of present low prices and the spread of the mosaic disease. 3. An all-out effort should be made on the diplomatic front by your Department of Foreign Affairs to try to per suade the United States Government that its marketing policy in Central American abaca is unfair to Philippine abaca producers and to the Philippine economy. 4. With the assistance of the various departments and other entities of your Government, an all-out drive should be made on the part of producers to reduce their cost and improve the quality of their products. 5. An all-out campaign should be made to find why the strength of Philippine abaca, particularly from the Davao area, has been decreasing in recent years. We feel quite sure that a combination of factors has brought this about, but I can seriously tell you that it is true that the strength of fiber is not what it was before, and whereas in 1940 and 1941 when the first Central American sample ship ments came into the United States they were calculated at ldwer tensile strength than Philippine abaca, today exactly the reverse is true. I understand your Government in collaboration with the United States Government through the U.S. Foreign Operations Administration (FOA) is now proposing to carry out such tests here in the Philip pines, and we, as exporters and producers, should do every thing possible to help them. 6. We should attempt to create more demand for Phil ippine abaca. We should give wider publicity to our in dustry here. Our Company has recently completed a movie of the abaca industry showing the entire process from the cleaning of the fields until the fiber is eventually placed on the ocean freighter on its way to overseas destinations. This has already been shown to some of our consumers in various places in the world, and I hope that I shall soon be able to show it to all of you. It has been illuminating to overseas consumers to learn of the large amount of work which actually goes into the production of one bale of abaca. Under government sponsorship in cooperation with ex porters and producers, we should officially invite more of the leading consumers from all over the world to come here 339 340 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1955 and visit the Philippines at their own expense, but under the sponsorship of the abaca industry. Lastly, in this con nection, we should investigate thoroughly the possibility which I think affords an opportunity for us today, and that is of persuading the United States Government to in crease its stockpile of abaca in trade for part of the agri cultural surpluses. I believe this precedent has already been established with other countries. It is true that the United States Government is trying very hard to dispose of the immense quantities of agricultural surpluses which it has acquired under the subsidy program, but by and large, it is trying to do this without interfering with normal trade channels. There was talk at one time of sizable ship ments of surplus American rice coming to the Philippines. I understand that this project was dropped because of the objections raised by Far Eastern countries, namely, Burma, Pakistan, and Indo-China, all of whom normally export rice to the Philippines. Therefore, my suggestion would be that we attempt to work out a triangular transaction where by the United States Government sends grain, for example, in the amount of $5,000,000 to Pakistan; Pakistan in turn to send rice to the Philippines in the same value, and the Philippines in turn to send abaca to the United States Government in the same value to be stockpiled. This would be helpful to the economies of both the Philippines and Pakistan. It is a subject which warrants further study and investigation. 7. We as exporters of fiber should try to reduce our costly baling methods in which there has been basically no change during the past 50 years. We should be helped in this by the Philippine Government and particularly by the Fiber Inspection Service. 8. All efforts should be made to maintain the quality of abaca exported from the Philippines at a very high level. Frankly, the quality, grade for grade, of abaca in the Phil ippines is not as good as it was prior to World War II. 9. If some of the proposals which I have outlined earlier cannot be brought actively to the attention of the parties concerned in the Philippine and United States Govern ments, I think that the abaca industry in the Philippines should consider sending a delegation to Washington to ne gotiate with the Government authorities directly in behalf of the abaca industry and not to have the problems of the industry put in second or third place, after other seemingly more urgent problems at any particular moment. 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 organ izations, 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 membership being exercised by individual representatives of the mem ber-entities who must rank among their senior members but need not be American citizens; (2) individual Americans residing in the Philippines, other parts of the Far East, or the United States. Associate membership is limited to individual American citizens who may be either Residents (residing within 100 kilometers of Manila), or Non-residents (residing in the Philippines outside this radius or elsewhere in the Far East or in the United States.) OFFICERS AND DIRECTORS, 1955 Paul R. Parrette, President; W. C. Palmer, III, Vice-President; A. H. Henderson, Treasurer; F. C. Bennett, C. A. Larsen, M. S. Robie, E. E. Selph, F. H. Spengler, and Paul H. Wood. Stanley N. Fisher, Executive Vice-President; I. T. Salmo, Secretary 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 J. A. Parrish J. L. Manning J. H. Carpenter ’Deceased Philippine Foreign Trade Statistics, 1954, Compared with 1953 Bureau of the Census and Statistics (F. O. B. Value) 1954 1953 Item Value Percent Value Percent (Pesos) distribution (Pesos) distribution Total Trade.... 1,727,452,851 100.00 1,695,908,258 100.00 Imports........................ 903,271,326 52.29 894,678,748 52.76 Exports........................ 824,181,525 47.71 801,229,510 47.24 Balance of Trade: Unfavorable.... 79,089,801 93,229,510 I. TWENTY PRINCIPAL IMPORTS: 1954 COMPARED WITH 1953 1954 1953 Article and Country of Origin Value Value (Pesos) (Pesos) Total Imports............................................ . 903,271,326 894,’678,748 Cotton and manufactures................ 127,770,802 119,422,950 United States.......................................... . 106,966,098 104,678,246 Japan......................................................... 10,583,032 7,318,344 Hongkong................................................. 5,860,222 3,981,980 Great Britain.......................................... 1,341,090.' 1,017,138 France....................................................... 1,014,932 629,930 Switzerland.............................................. 758,716 319,646 China......................................................... 692,346 850,332 British Borneo........... ........................ 129,420 15,646 Belgium..................................................... 121,608 68,540 Other countries...................................... 303,338 543,148 2. Mineral Oils (petroleum products).. 84,865,554 75,133,500 Indonesia.................................................... Arabia......................................................... Bahrein Islands........................................ United States........................................... Malaya. ...................................................... Guam........................................................... Great Britain............................................ Hongkong................................................... Other countries......................................... 42,013,620 17,808,548 12,733,556 12,201,822 82,262 19,454 3,784 1,538 970 39,507,096 10,612,224 14,173,444 10,592,690 244,754 2,468 • 82 742 6. Grains and preparations...................... Canada........................................................ United States............................................ Pakistan...................................................... Thailand..................................................... Hongkong.................................................. Denmark.................................................... Australia..................................................... Germany..................................................... China........................................................... Other countries......................................... 7. Dairy products.......................................... United States............................................ Netherlands............................................... Australia..................................................... Switzerland................................................ New Zealand............................................. Denmark.................................................... Sweden........................................................ Canada........................................................ Great Britain............... ............................ Other countries......................................... 8. Paper and manufactures.................... United States............................................ Canada........................................................ Japan........................................................... Spain............................................................ Netherlands............................................... Great Britain............................................ Sweden........................................................ France......................................................... Germany................................................... Other countries......................................... 9. Chemicals, drugs, dyes and medi cines ....................................................... 54,299,882 46,164,462 23,951,638 21,738,374 19,469,020 22,361,682 5,354,366 — 2,954,114 46 864,236 536,516 622,460 397,652 527,814 161,616 156,474 486,876 216,926 237,444 182,834 244,256 46,028,134 45,736,126 30,249,862 37,724,782 12,024,966 4,696,506 1,725,002 1,679,346 999,064 839,942 785,682 463,658 113,140 122,372 88,174 40,852 16,690 91,826 9,468 24,784 16,086 52,058 38,328,762 36,875,962 33,401,374 32,770,496 2,046,016 1,164,514 496,986 453,942 392,432 229,772 291,288 206,586 245,676 157,698 242,980 276,300 183,090 139,408 176,124 226,850 852,796 1,250,396 38,230,522 36,866,702 3. Iron and Steel and manufactures.. . 72,965,666 70,248,936 United States............................................ Japan........................................................... Belgium....................................................... Germany..................................................... France......................................................... Great Britain............................................ Netherlands............................................... Luxemburg................................................ Australia..................................................... Other countries......................................... 31,592,672 18,342,342 8,824,496 5,647,582 3,173,896 2,691,226 885,320 526,876 373,212 908,044 33,754,500 24,163,472 3,963,266 2,129,390 1,424,928 1,810,932 989,532 497,578 234,582 1,280,756 4. Automobiles, parts of and tires. . . 62,268,387 63,130,162 United States............................................ Japan........................................................... Great Britain............................................ Germany.............................................. France......................................................... Italy............................................................. Hongkong................................................... Porto Rico................................................. Spain............................................................ Other countries......................................... 59,749,768 1,178,044 813,377 281,886 56,464 39,392 33,480 27,726 26,426 61,824 62,611,856 85,990 260,434 19,158 72,254 68 6,700 26,510 47,192 5. Machinery and parts, except agri cultural and electrical................. 60,740,434 59,221,632 United States............................................ 47,905,484 50,705,316 Great Britain............................................ 4,270,678 2,366,496 Germany..................................................... 2,703,636 1,718,188 Japan........................................................... 2,464,418 1,361,648 Netherlands............................................... 820,580 344,132 Sweden........................................................ 620,486 595,948 Hongkong.................................................. 391,922 724,886 Hawaii......................................................... 303,402 388,400 Canada........................................................ 284,230 133,624 Other countries........................................ 975,598 882,994 United States............................................ Great Britain............................................ Switzerland................................................ Germany..................................................... Japan........................................................... Netherlands............................................... Panama Canal Zone............................... Canada........................................................ France......................................................... Other countries......................................... 10. Rayon and other synthetic textiles. United States............................................ Japan........................................................... Great Britain............................................ Hongkong................................................... Switzerland................................................ France......................................................... Germany..................................................... Sweden........................................................ Belgium....................................................... Other countries.............. .......................... 11. Electrical machinery and appli ances .......................................................... United States............................................ Canada........................................................ Japan........................................................... Germany..................................................... Great Britain............................................ Netherlands............................................... Hongkong................................................... Norway....................................................... France......................................................... Other countries......................................... 31,479,898 1,531,474 837,564 810,750 523,764 502,800 462,362 431,304 375,580 1,275,026 38,185,072 31,106,480 6,538,310 165,328 153,450 64,646 48,920 39,816 23,698 10,018 34,406 32,661,252 1,117,500 885,614 493,854 246,440 218,720 137,590 328,678 777,054 52,212,102 50,315,588 1,675,106 28,446 71,892 58,282 25,354 4,460 11,824 900 20,250 37,349,402 30,343,788 30,949,360 28,764,822 1,568,976 33,988 1,538,680 351,822 1,327,054 282,670 454,880 164,126 363,190 321,338 339,444 120,652 297,774 — 130,180 9,774 379,864 294,596 341 19,159,220 27,655,248 12. Tobacco and manufactures................ United States............................................ 19,133,122 27,524,156 Belgium....................................................... 12,614 — Indonesia.................................................... 12,432 — Hongkong................................................... 474 128,916 Other countries......................................... 578 2,176 13. Vehicles, except automobiles............. 15,889,492 16,360,294 United States............................................ 12,904,658 13,831,786 Germany.................................................... 791,600 510,128 Great Britain............................................ 776,832 261,236 Japan........................................................... 532,836 515,140 Australia..................................................... 412,438 952 Belgium....................................................... 242,382 615,024 Hongkong................................................... 47,886 30,556 Sweden........................................................ 44,256 3,288 Canada........................................................ 37,498 — Other countries......................................... 99,106 592,184 14. Non-ferrous metals, except precious....................................................... 15,022,218 14,218,206 United States............................................ 10,787,702 10,700,226 Germany..................................................... 1,243,156 1,023,804 Japan........................................................... 850,014 734,078 Hongkong................................................... 480,180 299,934 Malaya........................................................ 405,094 339,986 Sweden........................................................ 282,066 50,770 Switzerland................................................ 266,032 198,252 Great Britain............................................ 216,184 128,746 Belgium.......................... ........................ 115,314 39,906 Other countries......................................... 376,476 702,504 15. Fish and fish products........................... 14,629,536 19,909,194 United States............................................ 8,364,402 16,243,286 British Africa............................................ 2,705,280 1,295,608 Japan........................................................... 1,994,232 231,774 Portugal...................................................... 410,724 319,266 Canada........................................................ 298,022 60,462 Hongkong................................................... 289,038 287,298 Denmark..................................................... 267,212 10 Mexico........................................................ 112,356 49,564 France......................................................... 44,592 5,530 Other countries......................................... 143,678 1,416,396 16. Meat and meat products.................... 13,317,310 6,749,934 19. Cocoa, Coffee and Tea........................... 9,778,650 8,773,000 Great Britain........................... ................ 2,370,774 1,387,160 United States.......................... ............... 2,113,236 2,934,570 Ceylon........................................ ................ 1,508,512 1,481,626 662,684 Ecuador..................................... ................ 1,235,916 Brazil.......................................... ................ 1,116,952 829,770 Colombia................................... ................ 487,312 261,086 Hongkong................................. ................ 294,112 419,250 El Salvador.............................. ................ 136,376 13,210 China.......................................... ................ 126,172 285,838 Other countries....................... ............... 389,288 497,806 9,565,650 19,224,974 20. Fertilizers and fertilizing materials. United States............................................ Netherlands............................................... Canada........................................................ Italy............................................................. Germany..................................................... Belgium....................................................... Japan........................................................... Other countries......................................... Other Imports........................................... 4,797,392 2,270,612 1,219,520 410,784 337,644 260,396 223,860 45,442 123,102,883 9,670,832 3,816,328 714,814 174,146 2,064,544 1,178,440 1,020,306 585,564 117,436,558 II. TWENTY PRINCIPAL EXPORTS: 1954 COMPARED WITH 1953 1954 Article and Country of Destination Unit Quantity Value (Pesos) 1953 Quantity Value (Pesos) Total Exports......................... 824,181,525 801,229,510 Domestic Exports............. 799,581,915 797,265,592 Re-Exports.......................... 24,599,610 3,963,918 1. Copra. kilo 765,065,495 257,283,984 599,686,187 232,440,418 11,675,526 United States.......................... ................ 6,589,656 2,674,886 Argentina.................................. ................ 3,584,976 2,688,874 Australia................................... ................ 1,671,944 432,766 488,350 Uruguay.................................... ................ 531,318 New Zealand........................... ................ 340,822 11,866 Hongkong................................. ................ 242,006 30,296 Netherlands............................. ............... 148,360 156,878 Great Britain........................... ................ 49,810 20,890 Brazil......................................... ................ 38,828 — Other countries....................... ................ 119,590 245,128 2. Sugar. United States. . . Netherlands. . . . Germany............. Denmark............. Colombia............. Venezuela............ Norway............... Belgium............... Italy..................... Switzerland........ Other countries.. 294,092,690 178,993,397 48,768,000 48,768,028 37,918,504 31,756,712 27,984,704 25,257,840 17,068,800 15,951,200 38,505,620 98,743,321 61,573,104 16,754,209 14,781,523 12,105,665 10,878,887 9,366,827 9,031,015 5,790,544 5,470,548 12,788,341 314,465,737 73,578,541 19,112,157 35,822,962 22,369,748 30,374,434 10,718,800 26,303,042 10,053,320 27,649,424 29,238,022 124,401,313 28,391,817 6,851,340 13,551,843 8,486,898 11,603,283 3,979,535 9,751,356 3,798,939 10,788,193 10,835,901 214,351,124 785,826,780 193,781,671 United States . .. 912,100,293 210,483,087 784,961,087 193,563,734 kilo 928,705,439 Japan................... 16,541,615 3,841,314 838,000 Guam.................... 62,120 25,689 21,224 Hawaii................. 1,325 1,000 6,377 Malaya................ 75 30 — Great Britain. .. 11 4 — Israel.................... — — 92 206,740 9,485 1,680 32 17. Miscellaneous metals and manu factures................................................. 18,693,374 United States............................................ Japan........................................................... Germany..................................................... Hongkong................................................... Sweden........................................................ Canada........................................................ Great Britain............................................ Italy............................................................. Netherlands............................................... Other tountries......................................... 10,820,884 346,618 178,248 162,076 44,334 27,954 27,944 23,204 18,210 26,054 17,771,396 171,380 184,328 67,270 51,826 87,816 11,920 24,114 12,536 310,788 3. Logs, lumber, and timber. . ..bd.ft. 611,872,883 62,581,005 18. Leather and manufactures.................. 10,098,224 10,301,644 68,859,024 589,583,366 Japan................... 470,819,512 47,171,640 452,522,801 United States... 69,302,859 13,018,151 104,329,688 Korea................... 28,045,747 2,774,829 4,602,408 Taiwan................ 28,699,515 2,587,348 12,029,488 British Africa... 6,392,187 1,857,062 4,959,463 Hawaii................. 2,181,022 557,798 1,568,393 Hongkong........... 4,637,377 352,614 7,562,756 Canada................ 766,138 192,160 437,682 Belgium............... 520,738 176,248 295,412 Ireland................. 201,612 50,516 496,566 Other countries. 306,176 120,658 778,709 766,358 52,097,649 42,207,067 15,801,110 415,483 1,162,248 1,375,028 399,539 627,376 87,461 100,004 113,046 292,643 United States............................................ India............................................................ Australia..................................................... Great Britain............................................ Japan........................................................... Hongkong.................................................. Germany..................................................... Netherlands............................................... Luxemburg................................................ Other countries......................................... 9,473,030 276,644 221,538 39,848 16,650 13,226 11,548 10,572 9,638 25,530 9,352,646 635,368 245,626 12,642 17,070 9,324 10,518 6 18,444 4. Abaca, unmanu factured. . . bale 848,449 75,304,242 United States.. . Japan.................... Great Britain... Germany............. Netherlands. . . . Belgium............... France.................. 191,827 15,191,747 228,743 14,145,606 107,642 7,313,022 32,949 2,222,223 34,185 2,000,163 28,514 1,776,394 30,203 1,654,889 283,412 29,440,956 240,313 19,279,888 106,679 8,937,097 35,414 2,982,255 31,274 2,384,550 25,626 2,054,993 37,608 2,612,319 342 Norway............... Korea................... 16,594 15,090 11,045 69,566 1,358,126 1,187,673 684,840 4,562,966 16,265 1,328 14,699 55,831 1,598,808 111,998 1,203,835 4,697,543 Denmark............. Other countries . 5. Base metals and concentrates. . . .kilo 1,775,722,410 39,963,036 :1,831,368,908 45,501,784 Japan............... 1 326,307,945 23,999,630 1,242,859,315 23,661,902 United States... 441,184,865 15,712,206 483,113,153 5,080,000 21,666,455 Canada................ 8,128,000 240,000 150,000 Spain.................... 101,600 11,200 218,440 16,057 Taiwan................ — — 98,000 7,370 6. Coconut oil................... kilo 65,926,493 33,696,824 61,034,297 35,287,323 United States... 64,285,288 32,720,175 59,538,421 34,472,350 British Africa. . 649,005 340,608 513,577 262,553 Netherlands. . . . 508,024 239,970 — — 304,800 6,882 165,141 6,810 1,300 184,740 103,255 __ 99,999 __ __ 6,744 9,653 .8,496 British Oceania. 1,133 243 200 Other countries. 972,646 543,924 7. Desiccated co conut.......... kilo 46,840,837 27,212,900 49,543,285 31,461,831 United States... 46,694,486 27,123,398 49,318,657 31,315,955 Canada................ 99,135 60,420 170,723 108,660 Hawaii................. 40,613 24,682 38,011 26,240 Colombia............. 4,535 2,900 — — Hongkong........... 2,068 1,500 9,545 5,586 Japan.................... — 6,349 5,390 8. Embroideries (cotton, silk, linen).................. __ 23,213,079 __ 18,496,123 United States... 23,209,044 18,495,428 Japan................... 1,578 689 Guam................... 1,315 — Canada................ 831 — Hawaii................. 311 6 9. Concentrates (containing gold, copper, and sil ver)................kilo 60,832,347 22,122,620 63,010,603 24,490,532 United States... 60,832,347 22,122,620 63,010,603 24,490,532 10. Pineapple, canned................kilo 35,023,735 9,387,747 81,271,868 24,386,731 United States... 35,023,735 9,387,747 81,268,118 24,385,531 Hongkong........... 3,750 1,200 11. Tobacco and ma nufactures........ — 8,726,544 — 9,539,199 Spain.................... 5,961,589 5,273,411 1,528,273 United States.. . 872,762 Indo-China......... 453,276 662,677 Belgium............... 448,831 717,025 Netherlands. . . . 212,587 647,840 Morocco.............. 183,479 95,050 Hongkong........... 172,624 174,521 Hawaii................. 161,705 140,287 French Africa... 132,089 147,008 Japan.................... 57,005 67,798 Other countries. 70,597 85,309 12. Copra meal or cake.............. kilo 71,098,742 7,485,051 69,023,229 8,457,183 United States... 54,134,396 5,498,523 60,119,043 7,426,595 Denmark............. 12,210,100 1,503,041 1,526,256 156,850 Hawaii................. 2,812,661 292,972 2,869,225 378,514 Netherlands. . . . 914,400 89,200 — — Belgium............... 711,200 70,000 3,356,559 366,839 Germany............. 200,000 17,600 1,117,600 124,600 Guam................... Panama Canal 56,625 7,244 Zone................. 45,358 4,750 — — Hongkong........... 14,002 1,721 34,546 3,785 13. Molasses , .kilo 207,527,964 6,315,242 175,386,368 4,774,359 Japan.................... 147,856,844 4,843,578 103,982,520 2,890,677 United States... 30,907,752 681,357 7,151,014 149,787 Hongkong........... 10,430,000 332,380 4,420,000 133,800 Great Britain... 12,469,368 276,143 18,269,736 347,125 Thailand.............. 5,364,000 166,284 — Korea................... 500,000 15,500 41,563,098 1,252,970 14. Abaca manu factures.............. — 4,244,995 — 5,074,550 United States.. . 1,798,862 2,586,886 Malaya................ 885,356 890,575 Indonesia............. 309,136 581,422 Indo-China......... 268,777 — Peru...................... 154,509 58,561 Porto Rico......... 132,071 118,431 Hawaii................. 122,031 114,692 Thailand.............. 100,704 148,485 Korea................... 83,273 — Kongkong........... 72,613 71,890 Other countries. 317,663 503,608 15. Gold.........F. oz. 148,421 3,204,278 116,020 4,832,715 United States... 23,871 1,624,178 38,841 2,583,179 Great Britain. .. 24,550 1,580,100 77,179 2,289,536 16. Chemicals......... - 2,945,128 - 3,202.855 United States. .. 2,662,427 3,167,038 Belgium............... 130,368 — Netherlands. . . . 130,368 — Thailand.............. 21.603 35,117 Guam.................... 212 700 Indo-China......... 150 — 17. Shells and ma nufactures........ — 2,703,941 — 2,431,024 United States... 2,400,362 2,338,194 Japan................... 224,167 44,168 Germany............. 63,932 46,747 Hongkong........... 9,400 — Netherlands. . . . 5,400 — Hawaii................. 660 190 Switzerland........ 20 — Sweden................. — 866 Mexico................. — 851 Guam.................... — 8 18. Rattan and ma nufactures........ — 1,610,613 — 1,799,960 United States... 1,258,176 1,402,420 Guam................... 133,764 57,711 Hawaii................. Panama Canal 53,931 114,128 Zone................. 39,290 35,458 Venezuela............ Panama, Repub 36,495 47,267 lic of.............. 30,799 24,469 Arabia.................. Dominican Re 10,222 public......... . 7,511 8,979 Porto Rico......... 7,300 27,430 Canada................ 6,984 13,450 Other countries. 26,141 68,648 19. Beer............. liter 2,912,181 1,667,313 3,440,208 1,725,477 Guam.................... 1,102,412 651,588 958,939 475,687 Japan.................... 729,372 413,909 358,200 180,000 Korea.................... 600,200 324,250 1,775,547 880,449 United States... 136,363 104,400 108,809 81,000 Hawaii................. 189,589 85,800 204,582 90,900 Malaya................ 64,470 31,968 — — Thailand.............. 36,244 21,777 908 529 Taiwan................ 37,420 20,870 13,257 7,165 Spain.................... 7,264 7,600 7,000 3,800 Burma.................. 4,761 2,885 Other countries. 4,086 2,266 12,966 5,947 20. Scrap metals..........kilo 8,314,480 1,291,337 8,934,456 1,695,600 Japan.................... 7,122,000 679,520 7,060,000 749,934 United States... 1,192,480 611,817 1,874,456 945,666 Other Exports ineluding Re-Exports 35,799,096 13,964,928 343 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen The Government From Official Sources tULY 1 — President Ramon Magsaysay holds a conference with I Democratic Party leaders, including Senator Fernando Lopez, J acting DP President, Secretary of Commerce Oscar Ledesma, Economic Administrator Alfredo Montelibano, Senator Lorenzo Sumulong, and Representatives Jose Roy, Jose Aldeguer, and Lucas Pa redes. Later he presides over a conference of Nacionalista leaders in Congress, including Senate President Eulogio B. Rodriguez, Sr., Speaker Jose B. Laurel, Jr., Speaker protempore Daniel Romualdez, Senate Majority Floor Leader Cipriano Primicias, House Majority Floor Leader Arturo M. Tolentino, Governor Decoroso Rosales of Sa mar (President of the Governors and City Mayors League), Press Secre tary J. V. Cruz, and Legislative Secretary Jose Nable. The President issues Proclamation No. 170 calling the Congress of the Philippines into a Special Session to open July 7 and to continue for “such a number of days as may be necessary, not to exceed 30days” to consider the enactment of the following measures and such others as he may submit: (1) the Land Tenure Bill, (2) the Public Works Bill, (3), the bill to amend the Home Financing Act; (4) the Foreign Investment Bill; (5) the bill amending the provisions in the Adminis trative Code regarding rural (barrio) councils; (6) the bill to amend the Act creating the Court of Agrarian Relations; (7) the bill to amend the Election Law; (8) the bill to increase the capital of the National Power Corporation; and (9) the Bill to prohibit so-called “no-dollar” imports under certain conditions. The President signs Executive Order No. 119 abolishing the Na tional Economic Council, the Philippine Council for United States.Aid, the Economic Planning Board, and the Tariff Commission, and estab lishing a new National Economic Council (under Government Reorgan ization Plan No. 10 on Economic Planning) which will consist of the Council proper, the Office of the Chairman, and three Staff Offices,— the Office of National Planning, the Office of Foreign Aid Coordina tion, and the Office of Statistical Coordination and Standards. The National Economic Council will be composed of 11 members: a fulltime Chairman with Cabinet rank, salary P25.000; as Vice-Chairman, the Chairman of the National Development Authority, if and when created; 2 ex-officio members to be designated by the Speaker from the membership of the House; 2 ex-officio members to be designated by the President of the Senate from its membership; the Governor of the Central Bank; the Chairman of the Rehabilitation Finance Corpora tion; 3 other members to be appointed by the President with the con sent of the Commission on Appointments. July 2 — Announced at Malacanang that President Magsaysay, after a conference with Vice-President and Secretary of Foreign Affairs Carlos P. Garcia, asked Ambassador Felino Neri to confer with Am bassador Homer Ferguson regarding the accuracy of reports published in the press that “some Filipinos are being mistreated on the American naval base at Olongapo”; the announcement states the President took this action despite the fact that no such complaints had been lodged either with Malacanang or the President’s Complaints and Actions Commission. The President pays tribute to former President Elpidio Quirino on the occasion of the awarding of a Presidential Medal of Merit and Certificate bestowed on him under the auspices of the Civic Assembly of Women of the Philippines (Mrs. Trinidad F. Legarda, President; Miss Helen Z. Benitez, Chairman of the Committee on Awards). The President states that through the Award he was “expressing for all our people the gratitude and appreciation that I know they feel for the many years of service that President Quirino dedicated to their happiness and well-being.” Mr. Quirino being unable to be present, he sent his daughter and son-in-law, Mr. and Mrs. Luis Gonzalez, and his son To mas to represent him. Others who received similar awards were General Emilio Aguinaldo (for service to the nation); Prof. Francisco III. TOTAL TRADE, BY COUNTRIES, 1954 Morocco.......... 198,672 Percent Percent Percent Country Total Trade distri- Imports distri- Total distri bution bution Exports bution French Africa. Cuba............... Peru................. 194,162 192,801 191,495 161,477 Finland........... 157,986 150,088 01 14,948 — 01 6,762 — 01 25,492 — 01 1,130 — 01 — 01 157,986 .02 01 128,088 .01 183,724 .02 187,400 .02 167,309 .02 190,365 .02 161,477 .02 22,000 United States. 1,105,659,674 Japan.............. .-r ... Netherlands... Indonesia........ Germany........ Great Britain. Denmark........ Hongkong.. .. Bahrein Islands Colombia....... Venezuela.... Switzerland... Italy................ Australia........ British Africa. Argentina....... Thailand......... MaTaya.7. Ecuador.......... Guam.............. Brazil.............. New Zealand.* Lebanon......... Indo-China... Israel............... British Borneo Portugal......... Panama Canal Luxemburg. .. Uruguay........ Panama, Re public of. .. Porto Rico. .. Dutch New 379,374 341,432 312,212 305,781 278,770 200,000 67 6 2 60 12 7 IV. FOREIGN TRADE BY NATIONALITY OF TRADERS, 1954 Total Domestic ReNationality of Total Trade Imports Exports Exports Exports Total. 03 03 03 03 .01 8,768 13 66 32 24 .05 .06 :06 .05 .02 .03 16 .181,060 1,213,605 82,478 .02 .15 .01 .01 .02 American... . Chinese................ British............ Spanish........... Indian (Hindu) Germen.......... Czechoslovak Dutch............ Austrian......... Belgian........... French............. Italian............. Irish (Free)... Ecuadorian... Canadian....... Greek.............. Portuguese .... Japanese......... Hungarian.,.. Panaman........ Argentinian... Norwegian.... Albanian......... Bulgarian....... Finnish........... Malayan, Dutch Rumanian.. . . Thai (Siamese) Indo-Chinese., Mexican.......... Australian.... Malayan, Bri tish.............. Persian............. Egyptian........ All other na tionalities... 541,750,058 S73,264,553 363,312,824 110,629,037 87,391,989 24,333,081 10,289,963 2,987,947 1,182,891 713,907 309,194,038 193,038,479 147,449,786 54,096,673 84,406,425 23,157,233 620,653 7,951 1,171,219 5,515 162,167 153,647 8,520 10,800,000 6,412 10,800,000 6,412 1,695 60.639 60,639 1,522 1,030 240 1,522 1,030 240 68,406 65,766 2,640 1,450 1,190 2 2 2 1 1 2 1 2 1 344 Buencamino, Sr., posthumous (for music); Dr. Marcos A. Tubangue, posthumous (for science); Juan F. Nakpil (for architecture);Mrs. Remedios Ozamis-Fortich and Eugenio Margate (for agriculture); Dr. Luther B. Bewley and Dr. Gilbert S. Perez (for education); the family of Justice and Mrs. Alex Reyes (for being a meritorious family). July 4 — Former President Sergio Osmena delivers the Fourth of July address from the National Grandstand on the Luneta and in the evening President Magsaysay delivers a shorter address before the Phil ippine Columbian Association; both stress the importance of the Phil ippine relationship with the United States. In the morning, the Pres ident and Mrs. Magsaysay received the chiefs of the diplomatic mis sions and their ladies in the Malacanang ceremonial hall. The President extends executive clemency to a total of 32 prisoners. Messages of con gratulation on the 9th anniversary of Philippine independence are re ceived from President Eisenhower and from the heads of state of many other countries. July 5 — President Magsaysay receives former President and Mrs. Osmena, who pay him a courtesy call. He also receives representatives of the Moral Rearmament Group which calls to say goodbye on behalf of its 180 members before leaving for Saigon. He also receives members of the Philippine delegation to the forthcoming 8th World Boy Scouts Jamboree at Niagara Falls, Canada. Pursuant to the President’s instructions, Ambassador Neri confers with Ambassador Ferguson on the Subic Bay Reservation case in the former’s office in Malacanang; Mr. Ferguson welcomes an “on-thespot” inquiry. July 6 — At a meeting of the Cabinet, presided over by President Magsaysay, Secretary of Education Gregorio Hernandez, Jr., states that some 3000 extension classes will be opened as approved by Congress in this year’s Budget and that he hopes this will meet the need. The President, in view of reports of a rice shortage in some of the islands of the Visayas, instructs Economic Coordination Administrator Al fredo Montelibano to have the NARIC import the remaining 50,000 tons of rice which remains unpurchased out of the 100,000 authorized to be purchased. The President directs Budget Commissioner Dominador Aytona to release P200.000 out of his contingent funds for con tinuing the anti-fat measures in Cotabato. The Cabinet approves turn ing over to the Peace and Amelioration Fund all prizes of the Philippine Charity Sweepstakes Office beginning with the latter part of 1953. The Cabinet also orders public bidding for the salvage of sunken scrap in Philippine waters from Lingayen Gulf to San Vicente, Cagayan, not covered by the Japanese salvage operations under the reparations plans; the Oceanic Salvage Corporation, Ltd. has offered to undertake the salvaging with 30% of the recovered scrap to go to the Government aside from all articles of value found, but the Cabinet reaffirms the policy of submitting all such operations to public bidding. July 7 — President Magsaysay receives two three-man committees from the Senate and the House respectively which inform him that the Special Session of Congress has opened. The President receives Mr. and Mrs. William Hamme who have spent 31 years in the Philippines and call to pay their respects before returning to the United States to retire on their farmin California;Mr. Hamme first served as a superintendent of schools in the Bureau of Edu cation and was later connected withSilliman University in Dumaguete. The President visits the offices of the National Intelligence Coordi nating Agency on the occasion of the 6th anniversary of the organiza tion and praises its work. July 8 — President Magsaysay confers with Filemon C. Rodriguez, the newly nominated Chairman of the National Economic Council; the President tells him that pending the confirmation of his appoint ment he should start on the job in an unofficial capacity. July 9 — President Magsaysay directs the Monetary Board of the Central Bank to make drastic cuts immediately in the dollar allocations for non-essential consumer goods and to effect dollar economies in other categories of consumer goods, including invisible items like travel abroad, donations and gifts, etc. In 1953, the country’s dollar receipts amounted to $570,920,000 as against disbursements of $580,180,000, showing a reduction of $9,260,000; in 1954, the dollar receipts amounted to $572,610,000 a? against disbursements of $595,850,000, showing a drain of $23,240,000. The Central Bank states that the increase in dollar disbursements for merchandise imports in the second semester of 1954 was due to increased importations of capital goods, machinery, equipment, and raw materials for new and necessary industries. In the first semester of 1955, the country’s dollar receipts anounted to $281,780,000 as against disbursements of $334,880,000, showing a drain of $53,100,000. Malacanang announces that Ambassador Neri is scheduled to em plane for Olongapo on Monday, July 11, to look into the “reported mistreatment of some Filipinos on the American naval base”; he will be accompanied by Representative Enrique Corpus of Zambales and they will be met at the base by Ambassador Ferguson and Admiral Hugh Goodwin. Malacanang issues a press release on the subject of the passage in the U. S. House of Representatives of the Laurel-Langley Agreement on July 7; during the proceedings President Magsaysay was called a “stalwart leader of democract who is the first man in Asia to defeat communism” by House Majority Leader John McCormack. July 13 — At a meeting of the Cabinet, with President Magsaysay presiding, Vice-President and Foreign Secretary Garcia strongly rei terates his recommendation for immediate Philippine recognition of Viet Nam which, he states, is "steadily progressing toward strong de mocratic government under the leadership of Premier Ngo Dinh Diem.” The Cabinet approves Secretary Garcia’s suggestion that the Philip pines send an observer to the " Conference at the Summit” to be held in Geneva opening July 18, if the attendance of observers from other countries will be allowed; Mr. Garcia states he has already queried the U. S. State Department on the matter; if it is allowed, the Cabinet agrees to send Ambassador Salvador P. Lopez, now Philippine Am bassador in Paris. The Cabinet approves the proposal of Secretary of Agriculture Salvador Araneta to purchase 5,000 tons of fertilizer from Japan to supplement the production of the Maria Cristina plant and also ap proves the purchase of 1,000 tons locally. The President and Mrs. Magsaysay entertain Mrs. Perle Mesta, former United States Minister to Luxembourg, at a breakfast, also at tended by Ambassador and Mrs. Ferguson and Social Welfare Adminis trator Pacita Madrigal Warns. July 14 — President Magsaysay informs Vice-President Garcia of his decision to extend recognition to the Government of South Viet Nam and directs him to implement the decision immediately; it is stated that the President’s decision was prompted by the considerations that South Viet Nam possesses all the attributes of a sovereign independent state and has been recognized by no less than 47 countries; that recog nition would be a fulfillment of Philippine commitments under the Southeast Asia Collective Defense Treaty; that recognition would bolster the efforts of the free countries in Southeast Asia to put up a common front in the fight against the Communist menace in the area; and that the government of Premier Ngo Dinh Diem is deserving of support because of its success, despite great odds, in resisting both colonialism and communism. The President receives a report from Collector of Internal Revenue Silverio Blaquera that the gross internal revenue collection for the fiscal year 1954-55 was P492,563,843.99 as compared to P462,579,522.94 for the preceding fiscal year. Announced that Ambassadors Neri and Ferguson met again today and announced that the groundwork had been laid for a permanent solution to the Olongapo situation and that United States naval au thorities had already instituted some reforms. The President receives the newly-elected officers of the Manila Jaycees, headed by Carlos Palanca, who present him with a Pl,500 check for the Liberty Wells Fund. He also receives a delegation from the Manila Lions, headed by Otilio Arellano, who inform him of a new Lions project to fight the “apparent moral decadence of the nation’s youth”. He receives, also, a group of University of the Philippines students who protest against the allegedly unfair dismissal of Andres Abejo as Dean of Men and of Miss Josefina Constantino as Secretary to the President of the University, as recommended by a presidential investigating com mittee, and request a re-investigation. Representatives of the Knights of Columbus call on the President to express their support of Secretary of Education Hernandez’ order relating to religious instruction in the public schools; the delegation also endorses the proposed recognition of Viet Nam and request the establishment of a Philippine Legation in the Vatican. July 15 — With President Magsaysay presiding the Cabinet, on recommendation of Economic Coordinator Montelibano, agrees to accord priority in the allocation of fertilizer first to the Fertilizer Administra tion and next to the Agricultural Credit and Cooperative Financing Administration. The President receives Brig. Gen. William Lee, commanding officer, Clark Field Airforce Base, who, on behalf of Governor Alan Shivers, hands him a certificate of honorary citizenship in the State of Texas. Malacanang issues a press release correcting press reports that the President had made “ last-minute but fruitless efforts through Ambas sador Neri to win over Senator Claro M. Recto to his stand on Viet Nam” and stating that the President had sent Mr. Neri upon receiv ing a letter from the Senator stating that he was ready to express his views to anyone whom the President might designate. July 16 — President Magsaysay visits the offices of the Bureau of Lands in the Department of Agriculture and Natural Resources Building and is shown the modern machines, installed with the assist ance of consultants of the U. S. Foreign Operations Administration, which have made it possible for the Bureau to issue some 51,000 public land patents during the fiscal year 1954-55 instead of only from 3,000 to 6,000 as previously, according to Director Zoilo Castrillo. The President receives a report from Secretary of Public Works Vicente Orosa stating that the public artesian wells drilled in barrios all over the country in 1954 numbered 1,216 and during the first half of 1955, another 691 wells. July 17 — President Magsaysay orders Acting Governor Andres V. Castillo and the Monetary Board of the Central Bank to study pos sible disciplinary action against the banks which “violated the order to suspend opening letters of credit for the importation of textiles,” after hearing Dr. Castillo’s explanation that there had been no previous Central Bank “ leakage” as to the Monetary Board’s decision to freeze all unused dollar' allocations for textiles; the decision was arrived at after 5 p.m. on the 14th and was immediately communicated to the banks. The President nominates Secretary of Public Works and Dean Santiago F. de la Cruz as members of the Board of the new National Waterworks and Sewerage Authority which, under the provisions of Republic Act No. 1383, will replace the Metropolitan’Water District. 345 July 18 — President Magsaysay and leaders of Congress hold a breakfast conference at which it is agreed that 18 more bills will be added to the original 9 bills submitted during the present special •ession, including a bill to amend the Central Bank Act to augment its re-discounting powers, a bill increasing the paid-up capital of the Re construction Finance Corporation by ?50,000,000 out of the bond issue for agricultural loans, a bill encouraging the establishment of a Philip pine overseas merchant fleet, and a bill authorizing the fixing of floor prices for agricultural products and appropriating P50,000,000 for this purpose. The President directs the Monetary Board of the Central Bank to take appropriate action against the parties responsible for the vio lation of the resolution cancelling all unutilized balances of dollar allo cations for the importation of textiles; reported that some banks re mained open beyond closing hours on July 14 to receive and process applications for letters of credit on textiles. Under-Secretary of Foreign Affairs Raul S. Manglapus delivers an address at a University of the Philippines convocation explaining his Department’s stand on the recognition of South Vietnam. July 19 — President Magsaysay instructs General Manager Jose Panganiban of the National Development Company to start as soon as possible on the erection of a ramie de-gumming plant, authorizing him to borrow P300.000 from the RFC for the purpose; Dr. Ariston J. Hermano, chief of the technical department, informs the President that General Douglas MacArthur permitted him to study the process in the textile factories in Japan in 1948, and he states that with the establishment of a de-gumming plant and the acquisition of spinning mills, the NDC could manufacture, aside from ordinary ramie textiles, strong twine for fishing nets, strong thread for mosquito nets, etc. Announced at Malacanang that work on the ?3,000,000 building of the Government Service Insurance System will be started soon, the contract having been awarded to M. A. Santander; the building will house the GSIS, the General Auditing Office, and the DZFM studios. The President receives a number of fish-pond owners from Bulacan, Bulacan, who protest against the recent order revoking all permits for fish-ponds, stating that they had been issued government permits for them and have invested considerable sums of money, much of it bor rowed from banks and private individuals; the President states that he will take up their plea for justice with the Cabinet. July 20 — President Magsaysay presides over a meeting of the Cabinet which approves a number of projects sponsored by the Central Cooperative Exchange, Inc., (Candido Soriente, Manager), under the administration of the Agricultural Credit and Cooperative Administra tion; included are plans for the establishment of warehouses near Ma nila for the storage of fertilizer, and the establishment also of feed-mills, tobacco re-drying plants, refrigerating and allied processing plants (for salted fish, bagoong, salted eggs, vegetables, etc.); when the President asked whether there was money for these projects, ACCFA Adminis trator Osmundo Mondonedo stated that ACCFA has enough funds' as it has a P64,00.0,000 credit-line with the Central Bank. The Cabinet also approves the recommendation of Social Welfare Administrator Pacita Madrigal-Warns to set aside 74 hectares owned by the Metro politan Water District in Novaliches, 277 hectares of public lands in Alabang and Muntinlupa, Rizal, and 22 hectares of public lands in Tanay and Montalban, Rizal, for the settlement of some 15,000 Ma nila slum dwellers. Economic Coordinator Montelibano informs the Cabinet.that the price of Apo cement, manufactured by the Cebu Port land Cement Company, has been reduced from P3.45 to P3.30 a bag. The Cabinet also approves a supplementary list of 22 scholarships under the U. S. International Cooperation Administration and the Philip pine Council for United States Aid. The President receives some 400 police chiefs who call on him fol lowing their arrival in Manila to attend a convention. Ambassador Neri confers with Toshio Urabe, Chief of the Japa nese Mission in the Philippines, on the matter of obtaining ramie tex tile mill machinery from Japan, to be charged against the war-damage reparations. July 21 — President Magsaysay receives a report from his personal envoy, Ambassador Carlos P. Romulo, advising him of the passage by the United States Senate of the bill approving the Laurel-Langley Agreement. The President instructs the National Rice and Corn Corporation to see to it that the bumper rice crop in Cotabato, reportedly between 4,000,000 and 6,000,000 cavans, is fully harvested and moved to areas short of rice; he authorizes the NARIC to negotiate a loan of P5.000,000 from the RFC to purchase grain dryers, corn mills, and other facil ities needed to speed up the distribution of rice and corn. The President approves the NARIC’s buying prices,—P8.50 a cavan for palay ordinario in Manila and not less than P7.00 elsewhere, and corn at P.12 a kilo for the white and P.10 for the yellow varieties. The President receives members of the National Executive Board of the Philippine Government Employees Association who seek his assistance in the passage of a bill appropriating P20,000,000 for gra tuities to government employees laid off under the Reorganization and the Appropriation Acts. The President approves the findings of a 3-man Malacanang in vestigating committee exonerating Ruben A. Villaluz, suspended Chief of the Motor Vehicle Office, of various administrative charges brought against him. July 22 — President Magsaysay receives Internal Revenue Col lector Blaquera and several other Internal Revenue officials who in form him that two regional offices will be opened next week, one in Cebu City headed by Miguel J. de los Reyes as regional director for the Visayas and the other in Davao City headed by Bernardo Carpio, regional director for Mindanao, the purpose of this decentralization being to improve the functioning of the Bureau; Blaquera points out that although the population of the Visayas and Mindanao is respectively 34% and 15% of the total population, internal revenue collections for the fiscal year 1953-54 was only 8.91% and 2.27% respectively of the total collections; income tax returns filed in the two areas for 1953 numbered only 28% of the total number of returns. The President receives a number of members of the Phlippine Textile Importers Association, headed by George Litton, who inform him that with respect to the cancellation of import licenses for the third quarter they had already made commitments with suppliers in the United States, Europe, and Japan and state that it would be better to restore the allocations and to cancel those for the fourth quarter; the President states he will discuss the matter with Central Bank ofcials. The President receives Dean Porfirio V. Sison, President of the Pangasinan Bar Association, who informs him that more than 5,300 cases are pending in the five branches of the Court of First In stance in the province, and that one civil case has been pending for 17 years and a criminal case for 8 years; the President instructs Secretary of Justice Pedro Tuason to assign a judge to preside over the court at Lingayen in view of the illness of the incumbent judge since last April and to otherwise speed up the administration of justice. The President receives a number of engineers connected with the Guy F. Atkinson Company,—E. B. Skeels, one of the vice-presidents, W. J. Richmond, Manila manager, and George Archibald, pro ject manager, who inform him that the work on the Ambuklao hydro electric project is nearing completion. The President receives Col. Antonio Chanco, Chief of the Engi neer Corps, who reports that the Corps is now turning out an average of 120 pre-fabricated schoolhouses a month. The President appoints Cesar Lanuza, counselor on economic affairs in the Department of Foreign Affairs, as planning director of the National Economic Council; he also sends letters to the heads of the Senate and the House asking them to designate the two members from each House who will be ex-officio members of the 11-man Council. The President directs Customs Commissioner Manuel P. Mana han to hold up delivery of 60 tons of garlic seedlings scheduled to ar rive at Jolo today aboard the ship Inchulva and consigned to Rep. Ombra Amilbangsa; he also directs Under-Secretary of Agriculture Jaime Ferrer to fly to Jolo to determine whether there is any need for such a quantity of seedlings the special permit for the importation of which was issued by the Bureau of Plant Industry. The President creates the special Tagaytay Development Com mittee, to be headed by Ramon V. del Rosario, to study ways and means of developing the city. The President receives Dr. Romeo Y. Atienza, President of the Philippine Public Health Association, who presents him with a plaque in appreciation for his “outstanding contribution to public health through the artesian well project for the rural areas.” Senator Recto delivers a 2-hour privilege speech on the floor of the Senate attacking the President’s Vietnam policy. July 23 — President Magsaysay congratulates the members of the Laurel-Langley Mission on the occasion of the final approval by the United States Congress of the Laurel-Langley Agreement (passed by the U. S. Senate on the 21st); he sends a similar telegram to Ambas sador Romulo in Washington. The President creates a 7-man Commission of Inquiry, headed by former Justice Luis P. Torres as Chairman and Rafael Corpus as Vice-Chairman, to appraise the implementation of the Central Bank Act (Rep. Act No. 265) and to study the possible need for changes in the law; he also instructs the Commission to study the effects of con trols on the national economy; other members of the body are NEC Chairman Filemon C. Rodriguez, Dean Vicente Sinco, Francisco Ortigas, Jr., Demetrio Santos, and Dean Vicente Fabella; Prof. Enrique M. Fernando will act as counsel; a staff of economists, re searchers, and other aides is also provided for. July 24 — President Magsaysay, on recommendation of the AFP Chief of Staff and the Secretary of National Defense, directs the as signment of Brig. Gen. Manuel Cabal as Chief of Constabulary, re placing Brig. Gen. Florencio Selga. The President confers with Executive Secretary Fred Ruiz Cas tro, recently returned from the United States; he appoints him as ad ditional member of the Commission of Inquiry which will study the implementation of the Central Bank Law. The President receives Acting Central Bank Governor Castillo who submits a progress report on the investigation being conducted in connection with agent banks which violated the order cancelling the unused quota allocations for textiles. The President directs Under-Secretary Ferrer to inquire into the action of Acting Agricultural Extension Bureau Director Juan Cabanos in having approved the importation not only of 60 tons of garlic but of 749 tons of potatoes, the latter shipment having not yet arrived; Ferrer has reported that Amilbangsa imported a total of 400 tons of garlic and had chartered the Inchulva for the purpose. July 26 — President Magsaysay at a press conference states that he will not support Senator Recto’s inclusion on the Nacionalista Party senatorial ticket for the November elections. 346 The President receives the members of the Monetary Board who report on the progress of the investigation relative to the Central Bank order cancelling textile imports; the President reiterates his expres sions of confidence in them. The President receives officers and members of the League of Wo men Voters, the League President, Mrs. Fernanda Balboa, present ing him with the “Jewel of Honor”, a golden decoration for “having given the women of the country greater participation in the high offi ces of the Government.” July 27 — President Magsaysay presides over a meeting of the Cabinet at which it is decided, on recommendation of Vice-President and concurrently Foreign Secretary Garcia, to send a delegation to the next Consultative Committee conference of the Colombo Plan to be held in Singapore, September 29 to October 15 (meetings of officials) and October 17 to 22 (ministerial meetings); the delegation will be headed by Minister Narciso Ramos of the Philippine Legation in New Delhi. The Cabinet also approves a resolution by the Presiden tial Committee on Trade Agreements and Related Matters regarding the documents signed by the Philippine trade delegation to Europe, headed by Ambassador Leon Ma. Guerrero, and the representatives of the Federal Republic of West Germany, Switzerland, and the Ne therlands. The Cabinet is informed by Economic Coordination Ad ministrator Montelibano that the P132,000,000 Ambuklao project is due for inauguration early next year; the dam, which is 100 meters high, is said to be the second highest rock-filled dam in the world. Sec retary of Health Paulino Garcia informs the Cabinet that there has been great progress in the health services to the people during the past year-and-a-half. The President receives many expressions of support with respect to the conflict with Recto both from members of Congress and from provincial governors. July 28 — President Magsaysay receives Pham Tat Ton, Direc tor of International Conferences of the South Vietnam Foreign Office, who delivers to him a personal letter from Premier Ngo Dinh Diem expressing his gratitude for Philippine recognition. The President holds a breakfast conference with Rep. Florencio Moreno, Chairman of the House Committee on Public Works, and Susano R. Negado, General Manager of the National Waterworks and Sewerage Authority, on the organization of the new corporation. Press Secretary J. V. Cruz releases an “open letter” to Senator Recto stating that the Senator’s opposition to the Mutual Defense Treaty with the United States, his opposition to the Southeast Asia Collective Defense Treaty, his opposition to the Resolution for the Defense of Formosa, his opposition to the activation of additional American military bases here, his opposition to the recognition of South Vietnam, and his charge that President Magsaysay is an American “puppet” are all in line with Communist policy. Senator Recto delivers another speech opposing the President’s foreign policy before a large audience of students in the theater of the University of the Philippines. Press reports state that he was given an “ovation”. July 29 — President Magsaysay visits the Government’s Alabang Stock Farm where an epidemic of rinderpest has broken out; more than 70 animals imported from India have died, although it is stated they had been inoculated against the disease before they were sent to this country; officials advance the hypothesis that the long sea-voyage weakened the animals. Some 5,000 doses of anti-rinderpest vaccine arrived from Thailand yesterday, the President is told. The President visits the School for the Deaf and the Blind and tells the members of the Parent-Teacher Association he is releasing P40.000 for the school. The President continues to receive messages of support of his policies, and during the morning he receives a delegation of officers of the Philippine Junior Chamber of Commerce who present him with a resolution approved at a special Executive Committee meeting on July 23, expressing the desire of the 54 local Jaycee chapters to go on record “as being in full support and accord with President Ramon Magsaysay in his official recognition of South Vietnam.” July 30 — President Magsaysay confers with the Chairman and a number of prospective members of the National Economic Council. The President and Mrs. Magsaysay are hosts at breakfast to Mr. and Mrs. Robert Guggenheim who are on a pleasure trip in Southeast Asia; Mr. Guggenheim is a prominent financier and a former United States Ambassador to Portugal. Malacanang releases the text of a speech by Under-Secretary of Foreign Affairs Manglapus delivered today before the Cagayan de Oro Lions Club on the subject of the recognition of Vietnam. July 31 — President Magsaysay holds another conference with the Chairman and prospective members of the National Economic Council at which it is agreed that additional work of road-planning is to be assigned to private contractors because the Bureau of Public Highways is not completing the necessary plans fast enough. It is also agreed that a new policy is to be adopted favoring more liberal issuing of loans by the banks, Central Bank Governor Cuademo hav ing pointed out that much money is lying idle. Banking and Finance By M. D. Arnold Sub-Manager The National City Bank of New York Contingent Account Forward Exchange Sale. P 6,460 The International Reserves as of June 30, 1955 were as follows: COMPARATIVE Central Bank: ASSETS International Reserves... Contribution to the Inter national Monetary Fund Account to Secure Coin age..................................... Loans and Advances........ Trust Account—Securities Stabilization Fund. . . . Domestic Securities......... Other Assets...................... statement of condition of the Central Bank International Reserves........................... $178,278,011.50 Japan Open Account (due from)................................... 13,703,580.81 Net FX Holdings other Banks....................................... 52,475,681.01 As of Apr. 30 1955 As of May 31 1955 $244,457,273.32 (In thousands of pesos) As of Dec. 31 1949 P460.689 30,000 113,306 77,047 92,197 20,390 P358.986 30,000 106,941 21,789 293,782 48,189 1*358,708 30,000 106,941 28,343 301,929 55,995 As of June 30 1955 P356.556 30,000 106,940 80,663 295,217 61,433 This is an increase of approximately $4,500,000 com pared to May 31, 1955. This apparent reversal of the downward trend in International Reserves reflects a with drawal of $10,000,000 from the International Monetary Fund. Had this withdrawal not been effected, the Re serves would have been depleted by a further $5,500,000. Currency and coins issued totalled P658,306,009.09. Money is still tight. P793.629 LIABILITIES Currency—Notes.............. P555.576 Coins............... 74,384 Demand Deposits-Pesos.. 117,682 Securities ' Stabilization Fund................................. 2,000 Due to International Mo netary Fund.................. 22,498 Due to International Bank for Reconstruction and Development.................. 2,389 Other Liabilities............... 2,636 Deferred Credits..................... — Capital................................. 10,000 Undivided Profits............ 6,464 Surplus........................................ — P859.687 P881.916 P930.809 P606.855 P597.1U P571.362 86,018 86,548 86,944 120,145 151,701 205,254 9,517 9,689 10,841 496 496 20,496 2,376 2,376 2,376 5,646 4,751 3,975 2,259 2,727 502 10,000 10,000 10,000 939 1,081 3,623 15,436 15,436 15,436 P793.629 1*859,687 P881.916 1*930,809 Manila Stock Market By Leonardo L. Rbcio L. Redo & Company INCREASING demand for base-metal stock issues due to the rising trend in metal prices, principally copper, in the world market, continues to maintain the activity in the Manila Stock Market with prices of practically all issues recording substantial gains. The Manila Stock Exchange Average recorded a new post-war high of 169.35. The present activity in the stock market would go a long way in speeding the development of the mineral resources of our country especially if proper government assistance 347 could be had. In view of the present high unemployment and the tight business conditions now prevailing, we can not over-emphasize the importance of any one factor that might provide impetus toward the creation of more indus tries financed by local capital and might help solve our two major problems, namely: unemployment and the need for dollar income. The Government should extend a helping hand to those Philippine stockholders who contrib ute their resources to the development of our country. To begin with there are two things which the Government can do to encourage local capital: 1. The elimination of capital-gain taxes on profits from purchase and sale of securities. 2. Freedom from examination by Internal Revenue Examiners of the amounts invested in shares of development industries. It is a safe guess that the amount of taxes that has been collected from capital gains on profits arising from the purchase and sale of securities has been very small, so that to give this up would entail no great sacrifice on the part of the Government. On the other hand, its elimination would encourage the financing of various enterprises^ which when they started operations would be paying huge taxes to the Government; taxes on dividends from stockholders would also be considerable. Philippine Oil Development continued to be heavily ■^traded, closing at 23, on sale of 14,776,000 shares. Acoje made substantial gains on the news of its acquisition of oil concessions in the island of Cebu and the prospects of a better chrome market in the United States. The stock closed at 18-1/2, up 05-3/4 from its previous close, on volume of 3,949,000. Atlas was strong, closing at 32, up 7 on sales of 6,750,000. Marinduque Iron Mines, on news of finding rich copper and extensive high-grade iron depo sits on its new property, made a spectacular gain of 46 points by selling as high as 82. Profit-takers, however, drove the stock down and it closed at 69, still up 33 points from the previous close, on total sales of 1,896,000 shares. The rest of the shares were active with all major issues recording substantial gains. Commercial and industrial shares continue to be quiet, with San Miguel Brewery, com mon, accounting for most of the volume. The Manila Stock Exchange averages closed at 166.39 after establishing a new high of 169.35 on July 28. Total volume was 90,855,000 shares, with a value of P12,517,000. A bill is now before Congress which would exempt from examination by Internal Revenue officers deposits in the banks, the theory being that this would encourage cash hoarders to deposit their cash in the banks and there by make it available for loan to those engaged in productive enterprises. Would it not be logical, therefore to exempt from similar examination all investments in productive enterprises such as mining, manufacturing, etc? 1954-55 Range MINING SHARES High Low 169.35 84.82 Manila Stock Ave rage ........................... Price Range from July 1 to 31, 1955 Opening High Low Close Change 169.35 145.24 166.39 21.07 + .241 .0875 Acoje Mining Co........ 1.20 .70 Atok-Big Wedge......... .14) .06 Baguio Gold................ .36) .0575 Atla< Con..................... .90 .60 Balatoc Mining.......... .0076 .0011 Batong Buhay............ 3.75 2.60 Benguet Cons.............. .032 .008 Coco Grove, Inc....... .034 .0195 Cons. Mines, Tnc........ .15 .038 General Base Metals. . .19 .09 Hixbar Gold................. .08) .02) Itogon Mining Co.. . . .91 .355 Lepanto Cons.............. .82 .12) Marinduque Iron....... .29 .05) Mindanao Mother 13 80 0775 27) 20) 80 14) 32) 13 80 07 26) .0575 + 3,954.00 — 8.00 .05 + 4,227.00 .07+ 6,749.00 2 0051 05 2 035 032 09 21 08) 91 82 .0028 + .05 + .01 + .0)— + .09 + .33 .45 .34 Palawan Quicksilver.. .25 .08) Paracale-Gumaus........ 4.05 1.40 Philippine Iron Mines .16 .10 San Mauricio.............. .25) .17) Surigao Cons................ .05) .008 Suvoc Cons.................. .31 .017 Philippine Oil Dev. Co. .02) .01) United Paracale.......... 2 3 2 29,840.00 11.00 215.00 16.238.00 150.00 911.00 1,569.00 756.00 1,896.00 1,272.00 702.00 63.00 284.00 31.00 1,260.00 614.00 14,776.00 1 30.00 230.00 173.00 170.00 153 00 14.00 13 00 4 72 50 1 3 38 40 00 10 18 06 00 50 06 00 50 00 00 100 50 27 00 102 00 92 00 12 80 00 50 00 50 00 70 15-. 45 00 10.50 00 53 11 Bank of the Philip pine Islands............. Filipinas........................ Insular Life................. Metropolitan Ins........ Philippine Guaranty.. Universal Ins............... Cia Celulosa................ Industrial Textiles.... Manila Broadcasting.. Manila Wine............... Marsman ft; Co. (pref.) Mayong Metal (pref.) Philippine Air Lines.. Philippine Long Diet. Tel.............................. Philippine Racing. . . . Tabaralcra, 6%.......... San Miguel, “C"....... San Miguel, 8%........ Sen Miguel, 7%........ Williams Equipment.. Bogo Medellin............ Central Bais................ Central Cariota.......... Central Tarlac............ Central Pilar............... Pampanga Sugar........ COMMERCIAL SHARES 8.50 8.50 8.50 18.25 18.50 18.25 .80 .80 .80 27.50 28.00 27.50 103.00 103.00 103.00 92.50 93.00 92.50 52.00 52.00 52.00 8.50 — .50 .100 1,425 13.00 10,500 14.000 631.76 18 3.350 1,000 55,083 180 106 21 — 31 00a — 800 000 iTo" 750 ood 160 / 700 000 650 000 140 "60o 000 5f>0 000 500 000 A 0 s ■455 000 400 000 1 2 350 000 x to 300 000 0 000 >0 1 7-1 to 7-2 1 17-5 17-11 to to |7-9 |7-16 . 17—16 to • I 7-2’ lh-25 ip-30 Credit By Duncan Burn Manager, Eastern Inspection Bureau and Manager, Association of Credit Men, Inc. (P.I.) THE Association of Credit Men, Inc. (P.I.) roster dated July 15, 1955, carries the names of 101 active members with respective representatives. The in crease in membership in the past few months has been encouraging and the active participation and cooperation of members in Association services is proving increasingly beneficial. A larger number of member firms is taking part in reciprocal reports completed by the Ledger Inter348 change Bureau operated by the Association. The number of account-names being processed continues high. The average response per name has been steadily increasing in recent months. With tight credit and collection condi tions, the Association is able to provide a variety of help for and piotective services to members. Forty members provided data for a resume on the collection situation as at the end of June. Twenty-four members reported the collection situation unchanged in the second calendar quarter while 11 members found the collection situation tighter at the end of the second quarter than at the end of the first. Five members reported the collection situation somewhat easier at the end of June than at the end of March. Of the 29 firms reporting the collection situation easier or unchanged, 26 considered their own efforts exerted were responsible. Thus only 3 mem bers found the collection situation easier or unchanged without benefit of their own efforts. Credit executives in general reported the money situation tight and found cus tomers taking advantage of the tight situation to delay payments. Constant pressure on collections and special efforts and intensified collection procedures have been found necessary. Seven member firms reported conditions were tighter as a result of normal conditions at this season including the weather condition, seasonal school expenses, and other conditions considered normal. Some members considered unusual or unseasonal conditions as contribut ing materially to the tight conditions. These unusual conditions included reports of overstocking in some trades and poor conditions in some lines both in Manila and in the provinces. The Association is presently completing a survey and resume with reference to collections by mail and related collection procedures. The Association has made a num ber of studies on various collection procedures and systems in use in the Philippines and continues to work toward improvements and simplifications. Warning notices sent to members of the Association during July were at about the same number as during June, more notices having been sent in each of these two months than in any other month this year. Electric Power Production (Manila Electric Company System) By J. F. Cotton Vice-President, Manila Electric Company 1941 Average—16,316,000 KWH 1955 1954 Kilowatt Hours January.................................................. 61,315,000 57,301,000 February............................................... 56,626,000 52,447,000 March................................................... 64,029,000 57,779,000 April....................................................... 60,839,000 54,408,000 May........................................................ 66,035,000 57,773,000 June........................................................ 65,130,000 58,525,000 July....................................................... 66,720,000 60,205,000 August.................................................... 60,385,000 September............................................. 59,680,000 October.................................................. 62,184,000 November............................................. 58,739,000 December.............................................. 62,328,000 Total..................................... 701,755,000 July output was 6,515,000 kwh or 10.8% above July, 1954. For the first 7 months of 1955 output increased 10.6% above the same period last year. For the entire year of 1954 there was an increase of 11.6% over 1953. This indicates a slight drop in the rate of increase this year. The July output sets a new monthly record of 66,720,000 kwh, which is 685,000 kwh above the previous record set in May, 1955. Daily output records were also set on July 21 and 22 of 2,420,300 kwh. Real Estate By Antonio Varias Vice-President, C. M. Hoskins &• Co., Inc., Realtors REAL ESTATE SALES registered in the Greater Manila area during the month of July, 1955, num bered 593, with a total value of P6,525,545, as com pared with 634, with a total value of P5,334,036, registered during the preceding month of June. Of the July deals, 129, with a total value of P2.121,345, represented deals within Manila proper, while 464, with a total value of P4,404,200, were transactions regis tered in Quezon City, Pasay City, and in the suburban towns of Caloocan, Makati, Malabon-Navotas, Mandaluyong, Paranaque, and San Juan. A few of the bigger sales registered during the month were: Quiapo inc. K r0W Se*Ot °f S57'5 Sq' S°ld Santi8KO SVJUC°Sfa. Cruz cisco^TcLudtncio Palomo'for PSMOO* °f 627-7 S<1- m- S°’d EsCOlaSticO Fran”• by c““°’ •* ”• bv Te°d“° Custod Makati PasiA M Estate, A of sold by Paranaque A property with a lot of 7,744 square meters sold by Alice W. Day to Jalecor, Inc. for P300.000. ■deal estate mortgages registered in the Greater Manila area during the month numbered 494, with a total value of P7,839,444, as compared with 618, with a total value of P9,283,444, registered during the previous month of June. Of the July mortgages, 164, with a total value of ?3,602,539 represented deals within Manila proper, while 330, with a total value of P4,236,905, were deals within the cities and suburban towns mentioned above. REAL ESTATE SALES, 1955 Queson Pasay Suburban Manila City City Towns Total January.........P 2,248,421 P2,152,738 P175.472 P2,082,216 P6,658,847 February.... 2,659,845 1,494,750 227,674 1,415,481 5,797,750 March............. 3,698,757 1,380,002 520,341 2,034,848 7,633,948 April................ 3,017,054 1,165,215 217,211 2,026,449 6,426,429 May................ 1,819,794 1,499,356 653,003 1,521,412 5,493,565 June................ 2,057,966 1,245,396 367,749 1,662,925 5,334,036 July.................. 2,121,345 1,592,103 372,860 2,439,237 6,525,545 REAL ESTATE MORTGAGES, 1955 January......... P 2,639,978 Pl,626,001 P358.600 P2,882,024 P7,506,603 February........ 4,518,717 988,642 346,000 1,244,589 7,097,948 March............ 4,371,652 2,054,042 413,700 4,627,048 11,466,442 April............ . 4,638,698 1,397,006 326,650 3,430,191 9,792,545 May................ 2,626,424 7,481,249 964,048 1,810,284 12,882,005 June................ 4,207,704 2,691,135 279,900 2,104,705 9,283,444 July................. 3,602,539 1,392,439 314,600 2,529,866 7,839,444 349 Building Construction By Juan J. Carlos President, United Construction Co., Inc. DURING the month of July, the Office of the City Engineer of Manila approved building permits for construction work amounting to P3,153,640. For the same period in 1954, the volume of work authorized amounted to P2,314,355, in comparison with P7,091,450 in 1953 and P3,478,360 in 1952. Some of the big projects that were started during the month under review were: A 4-story apartment building for American International Under writers on Dewey Boulevard and M. H. del Pilar, costing P500.000; For Macondray & Co. on 17th Street, Port Area, a 1-story shop building, estimated at P150.000; On J. Luna, comer P. Herrera streets, a 2-story commercial build ing owned by Consolacion Uy, costing P70.000; A 2-story concrete building for Tanduay Distillery, Inc., at 348 Tanduay Street, estimated at P70.000; At 1875 (int.) J. Luna, a 1-story addition to the Lim Ku Chin Building, costing ?55,000; On Buencamino Street, a 2-story residence for Ruperto Sanches, costing P50.000. During the period under review, the prices of essential building materials registered slight increases, which dealers claim is an indirect effect of the cancellation of the textile licenses by the Central Bank. Importers of construction items think that their quotas will also be reduced if the proposal of some importers that a reduction of foreign ex change for imports be applied to all quotas instead of only to textiles alone is adopted by the Central Bank. The selling price of galvanized-iron sheets increased from P.20 to P.30 per sheet of gauge 26, 8 feet long, to P5.50; gauge 24 became scarce in the market. The special assistant to the Governor of the Central Bank, Mr. G. S. Licaros, has invited importers of glazed tiles, and other interested parties to express their views on the request of the only local manufacturer of this item to ban completely the importation of glazed tiles. During the conference, stiff opposition was voiced by those present who stated that the manufacture of this material is still in its infancy here. While it is true that the Bureau of Science had certified to the quality of the local product, yet it remains a fact that only time and constant use can prove the durability of any product. Furthermore, the local plant until now does not produce fittings for the tiles. The Central Bank also held a hearing on the request of local manufacturers to ban the importation of reinforcing steel bars. Port of Manila By Francisco Delgado General Manager, Delgado Brothers, Inc. THE lowest tonnage handled over the piers for the current year was registered during the month of July,—only 98,009.99, carried by 136 vessels. This is about 35,000 tons less than the tonnage handled in this Port the previous month. Joint cooperative effort by the Bureau of Customs, on the one hapd, and the Delgado Brothers, Inc., on the other, for the proper reception of incoming and outgoing pas sengers at the Port of Manila, has resulted in the provision of additional facilities and greater convenience and com fort for tourist-passengers. At Pier 9, comfort rooms, benches, electric fans, and a water-cooler have been installed to make travelers as comfortable as possible while awaiting release of their bag gage. Refreshment stands have also been placed in strate gic places. To improve the procedure in the handling of baggage, the new Commissioner of Customs, Manuel P. Manahan, has issued a circular embodying various suggestions to facilitate the matter. The examination of baggage has also been greatly expedited through the assignment of more examiners and the use of an alphabetical arrangement of examinations. January, 1955 February ” March ” April ’’ May ” June ” July Dockside 115,469.230 109,176.273 125,063.040 131,307.661 146,157.354 133,082.212 98,009.995 Shipside and Bulk 32,651.714 23,855.125 15,585.867 21,891.203 30,691.812 31,310.448 18,945,464 Ocean Shipping and Exports By E. H. Bosch Secretary-Manager Associated Steamship Lines TOTAL exports during the first half of this year showed an increase of 651,274 tons over exports during the first half of last year; 861 vessels lifted 3,056,801 tons of exports during the first half of 1955, as compared to 2,405,527 tons lifted by .837 vessels during the first half of 1954. Total exports during the first 6 months of 1954 as com pared with the first 6 months of 1953, were as follows: Commodity 1955 1954 Alcohol.......................................... 53 tons 80 tons Beer................................................ 2,984 ” 3,768 ” Fiber, buntal............................... 113 ” 127 ” Cigars and cigarettes............... 180 ” 106 ” Coconut, desiccated.................. 18,284 ” 20,148 ” Coconut oil.................................. 32,675 ” 27,783 ” Concentrates containing cop per, gold, silver, lead, and zinc............................................ 3,398 ” 2,978 ” Concentrates, copper............... 35,100 ” 45,924 ” Concentrates, lead.................... 94 ” — Copra............................................ 344,032 ” 324,633 ” Copra cake and meal............... 35,617 ” 32,819 ” Embroideries............................... 1,812 ’’ 1,572 ” Empty cylinders........................ 1,393 ” 929 " Fish, salted.................................. 82 ” 52 ” Fruits, fresh................................ 849 " 1,275 ” Furniture, rattan....................... 4,103 ” 3,796 ” Glycerine...................................... 1,957 ” 1,508 ” Gums, copal................................ 906 ” 623 ” Gums, elemi................................ 109 " 34 ” Hemp............................................ 447,215 bls. 377,530 bls. Hemp rugs................................... 1,235 tons 808 tons Household goods and personal effects........................................ 2,074 ” 2,162 ” Junk metal................................. 6,663 ” 6,027 ” Kapok........................................... 194 ” 59 ” Logs............................................... 323,726,140 bd.ft. 250,900,164 bd.ft. Lumber, sawn............................. 29,301,993 ” 29,499,989 ” Molasses....................................... 156,029 tons 93,760 tons Nuts, peanuts............................. 3,095 ” — Ores copper.............................. 99 ” 1,229 ” Ores, chrome............................... 217,597 ” 220,023 ” Ores, iron..................................... 753,151 ” 307,715 ” Ores, manganese........................ 5,866 ” 4,956 ” Pineapples, canned................... 29,086 ” 21,981 ” Plywood and plywood pro ducts......................................... 4,329 ” 53 ** Rattan, round (palasan)......... 1,800 ” 1,493 ” Rice.. ............................................. — — Rope.............................................. 2,252 ” 2,094 ” Rubber......................................... 213 ” 75 ” Shell, shell waste....................... 452 ” 488 ” Shell buttons.............................. 76 ” 55 ” Skins, hides................................. 118 ” 313 ” Sugar, ccnt.'raw......................... 580,502 ” 617,306 ” Sugar, refined............................. 2,886 ” 2,311 ” Sugar, muscovado..................... 2,513 ” 2,869 ” Tobacco........................................ 1,579 ” 6,340 ” Vegetable oil............................... 71 ” 369 ” 349 ” 154 ” Transit cargo.............................. 2,212 ” 1,348 ” Merchandise, general............... 7,224 ” 5,377 ” 350 Freight Car Loadings By Josb B. Li bun ao Traffic Manager, Manila Railroad Company LOADINGS of revenue freight during the month of June, 1955, totaled 3,181 cars. This was an increase of 414 cars, or 15%, over the loadings of June, 1954, of 2,767 cars. Revenue freight carloadings by group commodities for the month of June were as follows: June—Tonnage Group Commodities 1955 1954 Products of agriculture............................................... 5,793 20,183 Animal products........................................................... 339 1,252 Products of mines......................................................... 1,205 864 Products of forests..................................................... 11,814 10,637 Products of manufactures.......................................... 45,747 19,538 Mei chandise less than by carload........................... 6,051 4,374 Total........................................................................ 70,949 56,848 The above group commodities represented 44 items, with 27 items registering a total increase of 35,118 tons and 17 items a total decrease of 21,017 tons, or a net in crease of 14,101 tons. Of the items registering increases, the more important were: centrifugal sugar, 10,977 tons; cement, 7,698 tons; refined sugar, 3,142 tons;- fuel oil, 2,538 tons; sugar cane, 1,858 tons; merchandise less than by carload, 1,677 tons; lumber, 1,165 tons; logs, 1,065 tons; “other manufactures” and miscellaneous 1,049 tons; soft drinks, 933 tons; molasses, 558 tons; and coal and coke, 497 tons, or an aggregate total of 33,167 tons. On the the other hand, the more important items which showed decreases were: copra, 10,222 tons; “other products of agriculture”, 5,171 tons; gasoline, 1,517 tons; rice, 1,050 tons; logs, 838 tons; wood fuel, 631 tons; salt, 449 tons; and “other products of forests,” 421 tons, or an ag gregate total decrease of 20,299 tons. It is worth noting that for the first time in many months, the products of agriculture showed a decrease of 14,390 tons, which indicated the end of the seasonal fac tor affecting the items included in this classification. This decline was registered in the carloadings of rice, “other mill products,” copra, and “other products of agriculture.” Al though there was an actual increase in the production of copra, yet export declined due to a weak price-bottom of $157.50 and a peak $165 during the month. With the exception of bagoong, the shipment of animal products suffered decline due not .only to lack of supply but also the ban on movement between provinces. Produces of mines registered slight increases due to ship ments of silica ore from Tagkauayan. Forest products showed improvement in carloadings due to a greater de mand for lumber for local construction. Prices for both items have increased recently. Aside from gasoline, which is being transported by trucks for reason of a change in source, products of manu factures registered the greatest increase by an aggregate total of 26,209 tons. In spite of low prices prevailing, cen trifugal sugar continued to move to make up for delayed deliveries of exports caused by lack of bottoms in the past months. Refined sugar also continued to contribute to increased loadings because of the operation of the Insular Sugar Refining Co. The same is true for cement, indicat ing greater construction and public-work activities. Other manufactures and merchandise less than by car load improved due to greater importation through the Port of Manila with an increase of 75.47% over the same month last year. Mining By Henry A. Brimo Presiden t Philippine Gold Producers Association, Inc. First Semester—1954...................... First Semester—1953...................... 169,726 ounces 215,217 ounces P17,974,284.00 P22,411,905.00 FIRST SEMESTER—1955 PRODUCTION REPORTS DEVELOPMENTS during the past month in the gold mining industry follow: 1. Local bullion prices remained steady around the recent lows (P96.50 per ounce bullion) during most of July but firmed in the final week and closed quietly, with final sales at P99.50. 2. Despite prolonged negotiations between the Tech nical Committee of the Gold Subsidy Board and the mem bers of the Philippine Gold Producers Association on the subject of a Government offer to buy all gold produced at special prices (the best Government offer was a dis appointing P101.00 for over-marginal mines and P103.00 for marginal mines), no agreement was reached because the member-mines of the Association preferred to con tinue on the present basis of selling one-third of their pro duction at the official subsidy prices of P 105.40 and Pill.72 and the remainder at prevailing prices on the local market. The negotiations, in other words, were sty mied by two factors, namely: the fact that Government finances and the limitations imposed by the Gold Subsidy Law may necessarily limit the aid that can be granted to gold producers and the fact that the gold producers do not wish to eliminate themselves from the local premium mar ket on a permanent basis. The latter is a condition which the aforementioned Technical Committee wishes to impose along with its offer to buy all locally-produced gold by mines that qualify for the subsidy. 3. First-semester 1955 production reports, compared with the same period in past years follow (member-mines of the Philippine Gold Producers Association only): Year No. of Ounces Market Value Produced in Pesos First Semester—1955...................... 181,379 ounces P18,749,597.00 Name of Mining Company Atok-Big Wedge Mining Co., Inc. Baguio Gold Mining Company... Balatoc Mining Company............. Benguct Consolidated Mining Company........................................ Coco Grove, Inc................................ Itogon Mining Company............... Mindanao Mother Lode Mines, Inc..................................................... San Mauricio Mining Company.. Surigao Consolidated Mining Company........................................ Totals (January to June, 1955).. No. of Ounces Market Value Produced in Pesos — out of production — 12,633 ounces 50,295 P 1,308,960.00 5,187,122.00 57,218 5,869,298.00 4,001 411,499.00 16,348 1,766,494.00 — out of production — 12,216 ounces 1,218,951.00 28,668 2,987,263.00 181,379 ounces P18,749,597.00 FIRST SEMESTER—1954 PRODUCTION REPORTS Name of Mining Company Atok-Big Wedge Mining Co., Inc. Baguio Gold Mining Company... Balatoc Mining Company............. Benguet Consolidated Mining Company........................................ Coco Grove, Inc.............................. Itogon Mining Company............. Mindanao Mother Lode Mines, Inc..................................................... San Mauricio Mining Company.. Surigao Consolidated Mining Company*..................................... No. of Ounces Market Value Produced In Pesos — out of production — 14,096 ounces 43,738 P 1,492,944.00 4,631,906.00 52,369 5,544,454.00 1,854 196,797.00 17,802 1,869,972.00 — out of production — 21,271 ounces 2,289,392.00 18,596 1,948,819.00 TOTALS (January to June, 1954).. 169,726 ounces P17,974,284.00 ‘Production affected by underground fire. FIRST SEMESTER—1953 PRODUCTION REPORTS Name of Mining Company No. of Ounces Produced Atok-Big Wedge Mining Com pany................................................. 12,724 ounces Baguio Gold Mining Company. .. 14,799 Market Value in Pesos (approx.) P 1,350,000.00 1,544,196.00 351 Balatoc Mining Company............. Benguet Consolidated Mining 45,539 4,726,507.00 Company........................................ 50,659 5,252,083.00 Coco Grove, Inc................................ 3,362 450,057.00 Itogon Mining Company............... Mindanao Mother Lode Mines, 18,975 1,985,339.00 Inc..................................................... 19,644 2,023,104.00 San Mauricio Mining Company.. Surigao Consolidated Mining 26,709 2,755,234.00 Company........................................ 22,806 2,432,964.00 Totals (January to June, 1953).. 215,217 ounces P22,419,484.00 The second-semester operations outlook for 1955 gives promise that Baguio Gold Mining Company and Itogon Mining Company will reach their previous years’ total production. If this should occur, all member-mines of the Philippine Gold Producers Association, with the exception of San Mauricio Mining Company, will end 1955 with production records equal to, or better than the pre vious year. Lumber By Pacifico de Ocampo Secretary- Treasurer Philippine Lumber Producers’ Association, Inc. DURING the month under review, June, 1955, the Philippines exported 40,852,281 bd. ft. of logs and lumber, 51,204,529 bd. ft. less than the preceding month’s 92,056,810 bd. ft. The decrease was mainly due to the fall in the shipments of logs to Japan, from 78,730,856 bd. ft. in May to 32,447,390 bd. ft. in June, or a de crease of 46,293,466 bd. ft. The exports to the United States and Canada decreased by 485,845 bd. ft., from 7,300,856 bd. ft. in May to 6,815,011 bd. ft. in June. Exports to all other countries also decreased by 5,150,829 bd. ft., from 6,740,709 bd. ft. in May to 1,589,880 bd. ft. in June, 1955. The following are the figures for the logs and lumber in bd. ft. inspected for export during June, 1955, as released by the Bureau of Forestry: Volume in Board Feet Shipper Destination Lumber Logs Agusan Export & Import Co Japan 699,588 American Rubber Co............ Japan 263,001 Anakan Lumber U. S. A. 358,602 1,243,649 Company........................ Japan 1,750,000 Associated Lumber Mfg. Co., Inc................................ U. S. A. 64,855 Basilan Lumber Co............. U. S. A. 515,221 401,429 Bislig Bay Lumber U. S. A. 600,000 Co., Inc........................... Japan 5,851,630 Continental Merchandizing Corp...................................... Formosa 211,118 C. Alcantara & Sons........... Japan 797,047 Calapan Lumber Co............ U. S. A. 73,216 30,421 Dee Cho Lumber Co.......... U. S. A. 50,000 E. A. Luna Lumber Trading.......................................... Japan 743,088 Extensive Enterprises Corp. Japan 450,000 Findlay Millar Timber Co.. Japan 1,100,000 General Enterprises, Inc... U. S. A. 19,619 Golden Ribbon Lumber Co., Inc.......................................... Japan 1,162,785 G. S Manalac U. S. A. 300,000 Enterprises..................... Japan 950,639 Insular U. S. A. 1,038,637 Lum South Affica 1,202,726 ber Canada 36,166 Company. .. . Eire 97,995 Jebenaur & Co., Inc........... Japan 115,337 Lanao Lumber Mills........... Japan 58,977 La Villa de Manila............. Japan 904,328 Luzon Manufacturing Ent., Inc.......................................... Japan 971,552 Misamis Lumber Co., Inc... Japan 300,000 Nasipit Lumber Co., U. S. A. 395,256 1,003,797 Inc................... ...................... Japan 4,700,000 Ralph W. U. S. A. 253,816 Dempsey......................... Japan 225 Redwood Co........................... Japan 3,921,925 Sanchez Logging................... Japan 931,948 Sta. Clara Lumber Co., Inc.......................................... Japan 600,000 Standard Sawmill................. Japan 1,000,000 Surigao Timber Co., Inc.... Japan 617,001 Taggat Sawmill Co., Inc... Japan 949,911 T. H. Valderrama U. S. A. 74,287 & Sons, Inc.................... Japan 2,137,202 Uno—Import-Export Co.... Japan 648,691 Valderrama Lumber Co., Inc.......................................... U. S. A. 304,742 Valeriano C. Bueno............... Japan 499,962 Vicente M. Cuevas.............. Japan 322,553 Western Mindanao Lumber Co., Inc................................ U. S. A. 51,298 Woodworks, Inc.................... Africa 78,041 Total................................. 5,214,477 35,637,804 SUMMARY OF EXPORTS DURING JUNE, 1955, ARRANGED BY COUNTRIES OF DESTINATION IN THE ORDER OF VOLUME OF SHIPMENTS TO EACH COUNTRY Countries of Destination Japan............................................. United States............................. Southern Africa......................... Formosa........................................ Eire................................................ Canada.......................................... 5,214,477 35,637,804 40,852,281 Lumber Logs Total (Bd. Ft.) (Bd. Ft.) (Bd. Ft.) 32,447,390 32,447,390 3,798,549 2,979,296 6,777,845 1,280,767 — 1,280,767 — 211,118 211,118 97,995 — 97,995 36,166 — 36,166 Total................................. RESUME of Exports to: Japan............................................. Lumber (Bd. Ft.) Logs (Bd. Ft.) 32,447,390 Total (Bd. Ft.) 32,447,390 United States and Canada... . 3,835,715 2,979,296 6,815,011 Other countries.......................... 1,378,762 211,118 1,589,880 Total..................................... 5,214,477 35,637,804 40,852,281 Trend of Exports to: This Month Month Ago This Month Lumber Logs Lumber Logs Lumber Logs (Bd. Ft.) (Bd. Ft.) (Bd. Ft.) (Bd. Ft.) (Bd. Ft.) (Bd. Ft.) feV State, “ 32’447,39° 350333 77’664,812 “ 29,413,167 Other countrie's W 3«f Total........... 5,214,477 35,637,804 7,733,944 84,322,866 3,832,374 34,228,065 Tor Anakarf Lumber Co., Na’sipit Lumber Co., Inc., Bislig Bay Lumber Co., Inc. and Insular Lumber Co. Arrivals of logs and lumber in Manila during the month under review, June, 1955, aggregating 8,352,619 bd. ft., decreased by 509,906 bd. ft., as compared to arrivals during the previous month of 8,862,525 bd. ft. Prices in the local wholesale lumber market increased during the month under review, June, 1955, compared with those of the previous month: P150-P155 to P160-P175 for white lauan; P150-P155 to P160-P170 for apitong; and from P180-P185 to P195-P210 for red lauan per 1000 bd. ft. COMPARATIVE STATEMENT OF EXPORTS MADE TO DIFFERENT REGIONS OF THE UNITED STATES DURING THE MONTHS OF MAY AND JUNE, 1955 Period Lumber in Board Feet Logs in Board Feet Total States** Gulf States O AH Total Western States Eastern States Gulf States All Others Total May, 1955............................... 3,635,114 624,805 225,999 598,423 5,084,341 1,413,262 30,399 772,852 2,216,515 7,300,856 June, 1955............................... 3,075,385 685,527 — 38,637 3,798,549 2,648,875 30,421 300,000 — 2,979,296 6,778,845 DIFFERENCE (Increase+; (Decrease—) 559,729— 60,722 + 225,999— 559,786— 1,285,792— 1,235,613 + 22 + 300,000 + 772,852— 762,781 + 522,011— 352 Copra and Coconut Oil By William S. Rice, Jr. Copra Buyer, Philippine Manufacturing Company IN July the market was steady until shortly past mid month when prices turned downward to produce a substantial decline by month’s end. As in June, the tone of the world copra market was large ly set by the activities of Philippine sellers. The steady to firm tone of the first half of July was mainly due to lack of Philippine selling-interest rather than to short supplies or broad buying-interest. This lack of selling-interest prob ably reflected excessive caution arising from experiences in June when many sellers had difficulty covering sales com mitments in an oversold market and prices steadily ad vanced as the anticipated seasonal increase of production failed to develop as early as expected. In July, production began to increase, but sellers failed to heed the increase and held themselves out of the market while their stocks steadily grew and outstanding sales commitments declined. Meanwhile, Indonesian and Strait sellers supplied the active European demand at good prices which were usually slightly below the ideas of Philippine sellers. Shortly after mid-month, Philippine sellers were at the point where they had to sell to move stock and replenish capital. A broad volume of selling-interest gradually appeared, and prices declined. Two other significant factors contributed to the de cline: (1) the American market is basically overstocked with coconut oil, as is evidenced by official United States Government reports of American coconut-oil inventories which are more than 50% above inventories at the same period last year; (2) during the last half of July the Dutch Government announced plans to sell 24,000 tons of coconut oil plus other oils and oilseeds from its stocks. Philippine copra production improved generally during July and is expected to reach peak levels for the year in August and September. During the first 6 months of 1955, production of the Visayas and Mindanao was well ahead of the same period last year and accounted for the over-all increase in Philippine copra exports. Production in Luzon has been disappointing and far below last year’s high levels. Copra Cake: American buyers finally reentered the market, advancing their prices to levels competitive with Europe, but they moved cautiously and actual trading was sporadic. European buyers did some trading early in the month and then became inactive. There is a shortage of shipping space for cake and meal to Europe in September which situation cuts off existing buying-interest from the Philippine market. Prices In July Copra Pacific Coast, c.i.f. per short ton nearby shipment or afloat.... Europe, c.i.f. per long ton, ship ment in 45-60 days................... Manila, fresh, resecada basis, per 100 kilos at bodegas, 30 days................................................ Coconut Oil: Pacific Coast, per pound, f.o.b. tank cars in 45-60 days......... Atlantic Coast, c.i.f. per pound, in bulk, afloat or nearby ship ment ............................................... Copra Cake: Pacific Coast, c. & f. per short ton, shipment in 30-60 days. . Europe, c.i.f. per gross long ton, shipment 60-90 days............... High Low Close S164.00 3151.00 8153.00 187.50 176.00 178.00 P29.50 P26.50 P27.00 ll-3/4p 10-3/40 110 12-1/2 11-1/2 11-1/2 372.00 366.00 372.00 81.00 79.00 no price Copra Statistics PHILIPPINE COPRA AND COCONUT OIL EXPORTS (In Long Tons) Copra Exports May June July United States.................................. 23,499 26,652 25,799 Europe............................................... 25,900 23,980 26,865 Other countries.............................. 5,110 9,562 15,843 Totals........................................ 54,509 60,194 68,507 Coconut Oil Exports United States.................................. 4,249 7,319 4,883 Other countries............................ — — 531 Totals........................................ 4,249 7,319 5,414 Copra Cake and Meal Exports United States.................................. 3,090 2,218 1,501 Europe............................................... 3,000 3,100 4,600 Other countries.............................. — — — Totals........................................ 6,090 5,318 6,101 MANILA AND CEBU COPRA-ARRIVALS (In Metric Tons) Cebu January.. April........ M’ay........ July......... 1955 1954 15,458 15,490 19,926 14,218 16.027 14,170 16,455 13,926 16,212 19,307 16,465 19,964 20,454 23,889 TOTAL 1955 19. 25,314 28,5 31,377 25,8 26,745 24,5 26,792 24,2 26,063 33,8 29,061 33,5 36,779 41,4 Percentage 1 1955/54 8 89% 2 121% 5 109% 5 111% 9 77% i 87% 7 89% Totals.............. . 81,134 91,139 120,997 120,964 202,131 212,103 95% PHILIPPINE AND INDONESIAN COPRA EXPORTS 1955 January... 69,527 February... 74,448 March........ 56,080 (In Metric Tons) 1954 %1955/54 55,818 125% 58,879 126% 61,894 91% 1955 14,526 20,064 16,077 1954 %1955/54 20,653 70% 25,368 79% 23,209 69% Totals. 200,055 176,591 113% 50,667 69,230 73% Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from June 15 to July 15. During this period copra went from weak to strong, regaining the level that had been maintained for such a long time prior to May. Raw nut prices followed closely, and at the time of this report it is necessary to meet the copra equivalent because of a slight shortage of nuts. During this period the desiccated coconut factories resumed full capacity and may continue this for the next few months because of the increased demand in the United States market which is due to the seasonal demand and planning for September deliveries, as well as to the low nut prices the last two months. Indications are that inventories are low in the United States and that buyers may be more active than usual during September and October; if this proves true, the pro duction for the calendar year will increase and come closer to the normal capacity. At present production, the in dustry is about at 70% capacity. The following statistics cover the shipments of desic cated coconut during the month of June, 1955: Shippers Pounds Franklin Baker Company................................................... 5,531,700 Blue Bar Coconut Company............................................. 1,143,625 Peter Paul Philippine Corp................................................ 219,300 Red V Coconut Products, Ltd.......................................... 2,830,500 Sun Ripe Coconut Products, Inc...................................... 152,500 Cooperative Coconut Products, Inc................................. 30,000 Total................................................................................. 9,907,625 453 354 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1955 Manila Hemp By William Pendarvis Assistant Manager Columbian Rope Company of Philippines, Inc. ACCORDING to the statistics, the production of abaca for the first 6 months of 1955 exceeds that of the corresponding period of 1954 by 33,061 bales. The major part of this increase can be attributed to the full recovery of hemp production in the Bicol region since the devasting typhoon of 1952. Trade with Japan continued to highlight the hemp market during July. The spinners in Europe and America closed their plants for their annual vacation-period, result ing in very little interest being shown for purchases from these two major consuming areas. At the end of the month, sales to Japan were still being reported at the machinecleaned JI level of $49 c.i.f., and $45.50 c.i.f. for machinecleaned G. As of July 2, 1955, the inventory of Central Amer ican abaca totalled 42,331 bales, which is a decrease of ap proximately 3,000 bales from the reported June 1 inven tory. Production during the month of June totalled 4,363 bales, with sales for the same period totalling 7,447. It will still be some time before the Central American inven tory reaches the low level which will then make it neces sary for the Ameiican spinners to show greater interest in Philippine abaca. However, with news of further cut-backs in production, there is no doubt that in the next 18 months the Central American inventory will have been reduced to a very low level. Local markets throughout the Philippines remained steady during the month in anticipation of larger interest developing in London and New York shortly and of con tinued buying-interest from Japan. Albay/Camarines and Sorsogon..................... Leyte/Samar.......................... All others................................ Total............................... United States and Canada. . Continental Europe............... United Kingdom................... Japan....................................... South Africa........................... Australia and New Zea land ..................................... All others............................... Total............................... Balings—January/June Inclusive 1955 1954 1953 1953 1951 246,973 241,829 251,839 264,451 254,895 94,539 59,718 114,065 88,426 151,245 52,836 63,582 59,248 74,098 97,887 47,552 43,710 51,736 41,084 55,813 1950 166,038 89,343 58,436 40,277 441,900 408,839 476,888 468,779 559,840 354,094 Exports—January/June Inclusive 1954 1953 1952 1951 1 92,912 166,861 170,017 330,913 7 92,295 100,399 86,621 92,687 4 64,051 60,499 50,394 93,729 2 87,241 122,406 59,043 69,913 5 4,620 0 3,692 4 14,573 4.947 4,550 4,152 3,502 5,460 3,850 1,200 570 850 160 1950 157,669 55,296 37,204 50,724 2,885 3,830 3,100 625 429,046 369,010 462,390 380,363 603,719 319,293 Sugar By J. H. d’Authrbau Philippine Sugar Association THIS report covers the period July 1 to July 31, 1955. New York Market. Due to seasonable wea ther and increased distribution of refined sugars there has been more tone in the market throughout the month. Sales of the unsold July arrival Philippines were the prominent feature of the first half of the month at 5.90/, 5.95/, and 6.00/. Refiner interest next developed on July 12 in several August arrival parcels which were done for the most part at 6.05/. On July 20 spot rose to 6.08/ and selected parcels of Philippines were sold to re finers for both August and September arrival at 6.08/. Sellers thereupon raised their sights to 6.10/, but on July 25, after the close of business, the U. S. Department of Agriculture increased the Domestic quota by 100,000 tons to 8,300,000 tons for 1955. This increase is distributed among the participating countries as follows: Distributors: Mvnio: To power coN^im —-—SSSR Why pay f ®iroinatei site- '"erey paraCAPACITORS, p SHUNT of this r°Per appIication and sub«ant,ally°r“C' ra'Ses Wltag. ses ■» yoUr wiri ces P°«r los. Pamirs added revenue frorn^ capita! investnJ~rpre. °n low power factorC°nSU,t « Jactor problems. ATLANTIC, GULF & PACIFIC Robert Dollar Bldg. CO. OF MANILA — Port Area Telephone 3-36-61 August, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 355 Cuba........................................................... 96,000 tons Dominican Republic............................. 993 ” El Salvador.............................................. 149 ” Haiti........................................................... 96 ” Mexico....................................................... 412 Nicaragua.................................................. 282 ” Peru............................................................ 1,868 ” Other countries....................................... 200 ” 100,000 tons Buyers withdrew and the market turned inactive. On July 29, last trading day of the month, 4,000 tons Phil ippines for July 31 arrival were sold at 6.05/ and the mar ket was reported firm, sellers 6.08//6.10/, buyers 6.05/. Reported sales of actuals totalled approximately 225,814 long tons, of which 135,000 long tons were Philippines. Exchange operations for the period approximated 116,900 short tons. Deliveries of refined for the period June 26 to July 23 were 791,999 short tons as compared with 729,970 for June and with 687,881 for July, 1954. Total deliveries for the year to July 23 were 4,611,000 short tons, as com pared with 4,477,000 short tons on the same date in 1954. On July 23, refiners stocks were 243,832 long tons, as against 280,002 tons on the same date last year. Opening and closing quotations on the No. 6 Contract were as follows: July 1............... 29............... September November March 5.484 5.50ff 5.35d 5.56 5.56 5.36 May 5.394 5.39 Average spot price for July was 5.5140/. Average spot price January 1 to July 29 was 5.432945/. Bell Trade Act Revision. During July the Bell Trade Act Revision proposals were approved by both Houses of Congress in Washington. The Bill now only requires the signature of President Eisenhower to be come law, ratification having already been accorded in Manila, where the Philippine Act also merely awaits Pres ident Magsaysay’s signature.* United States Sugar Legislation. The hearings before the House Agriculture Committee were duly ter minated on July 14, following the testimony of Secretary of Agriculture Benson who advocated passage this year of the legislation suggested by the Administration. He was opposed, he said, to rigid price-support loans which could lead to the elimination of quotas on domestic pro duction and marketing. On July 21 the House Agriculture Committee ap proved a draft bill by 24 votes to 7, the salient points of which were as follows: (a) Effective January 1, 1956, to December 31, 1960. (b) In 1956 quotas to be assigned as provided in present Act up to 8,350,000 tons. Above this figure quotas to be assigned 50% to domestic areas and 50% to foreign suppliers (excluding Philippines), of which 96% to Cuba. Beginning 1957, the 55% of excess over 8,350,000 to foreign countries to be shared 50% to Cuba and 50% to other foreign suppliers, excluding the Philippines, except that the other foreign full-duty countries are first to receive 175,000 tons before Cuba participates in any increase over 8,350,000. Second, beginning 1958 the same countries must receive 45,000 tons over and above the 175,000 tons before Cuban participation in quota increases over 8,350,000. (c) Any foreign country with a quota of more than 10,000 tons that fails to fill its quota by more than 10% during a year when world sugar price exceeds the United States price may have its quota for subsequent years reduced accordingly unless failure was due to crop disaster. (d) No country shall have its quota increased above the 1956 quota unless a party to the International Sugar Agreement (aimed at Peru). (e) Suspension of quota of any country discriminating against United States agricultural commodities (aimed at the Philippines). (f) Commodity Credit Corporation to purchase in 1955 100,000 tons continental United States production from 1955 or previous crop to be disposed of outside continental United States without undue dis turbance to normal marketing. Provision to be made for supporting prices of mainland sugar at 90% of parity. •President Eisenhower signed the Bill on August 1; President Magsaysay had signed the corresponding bill on June 18. ENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS General & Sales Office 174 M. de Comillas ib Manila |i| Tel. 3-29-21 |P Operating: MACHINE SHOPS • STEEL PLATE SHOPS STRUCTURAL STEEL SHOPS • WELDING SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • MARINE RAILWAY Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 ★ ★ ★ ★ ★ ★ 356 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1955 (g) Refund of import compensating tax on sugars imported into the United States for use in manufacture of livestock feed. (h) Secretary of Agriculture after public hearings empowered to change certain definitions if necessary of raw sugar and direct con sumption sugar. This bill was well received by none, and least of all, by the Philippines, threatened with suspension of quota unless it reverted to historical importation of Virginia to bacco under partial banning since 1954 by virtue of Re public of the Philippines Act No. 698 as amended by Re public Act No. 1194, enacted under the influence of American economic advisers to reduce dollar-consuming imports. The bill was, however, rejected by the House Rules Committee which refused to send it to the House unless subject to amendment from the floor. This was thought to have killed the measure, but the Agriculture Committee must have quickly acquiesced to the Rules Committee’s views and on July 27 the bill was reported out subject to restricted debate of one hour and subject to floor amendment. There can hardly be time for its pas sage through both Houses if Congress still wishes to ad journ on August 1. Failure of passage, it is hoped, will af ford time for the Philippines to repair the harm done by the unwelcome manoeuvers of the United States tobacco interests which appear to dominate the House Agriculture Committee. Local Market, (a) Expor Sugar. The improved New York market brought local quotations back to P14.25 per picul ex Hawaiian-Philippine warehouse, but little activity was seen as the market is for all practical purposes sold out as can readily be seen from the shipping figures. Total exports shipments for the month were 92,628 long tons, making a total of 768,170 long tons against the 1954-55 crop, as compared with 763,884 to the same date in 1954. Total Philippine arrivals in United States for the period January 1 to July 23, 1955, are recorded at 579,382 long tons, as against 612,240 long tons for the same period in 1954. (b) Domestic Sugar. The market shows more tone. The final Domestic marketing allotments were released without bringing about the temporary decline thought likely by many in the trade. This is a welcome feature and further improvement can safely be expected until the new crop comes in. World Market. July 1............... 29............... Opening and closing quotations were: Spot Sept. Oct. March May July 3.20(5 3.22(5 3.20(5 3.25(5 3.27(5 3.22 3.23 3.22 3.22 3.24 3.24(5 At its meeting in early July the International Sugar Coun cil Executive Committee cut all sugar quotas 5% in view of the spot price having ruled below 3.25/ for more than the requisite 15 days. Spot thereupon recovered to 3.23/ and has remained steady thereat throughout the month. Sales for forward shipment have been made at slightly below this price. Demand is slow as is normal at this time of the year. Cuban sales to the world market to June 30, accord ing to Willett & Gray, were 1,588,817 English long tons, compared with 1,099,160 English long tons to the same date last year. According to latest press reports, the International Sugar Council has authorized the Philippines to barter 20,000 tons sugar against rice with other Oriental coun tries in addition to its basic quota of 24,088 metric tons for sale under normal conditions. 1954-55 Milling. Twenty-two of the 25 Centrals have finished milling for the 1954-55 crop with a total pro duction of 1,206,676 short tons. Total production of all centrals to date is estimated at 1,346,498 short tons. The centrals still milling are estimated to produce an additional 38,733 short tons, or a total of 1,385,231 short tons for the whole crop. The average of juice purities to date is 84.01. Obituary. It is with deep regret that we record receipt of word of the sudden death in the United States of Mr. New Ford Consuls promptly^delivered in~the United States, England or Europe! Have more fun, freedom and economic miles when you travel in your new Ford Consul! Only Ford Consuls offer these features: 1. Greater maneuverability! 2. Spacious luggage compartment! 3. Pendant-type foot controls! 4. Up to 31 miles per U.S. gallon of gasoline! 5. Foam rubber inlayed seats! 6. Roomy comfort for 4 adult passengers! Write or telephone for complete details: LUNETA MOTOR COMPANY 17th & Atlanta Stj., Port Area, Manila Telephone 3-98-91 August, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 357 O. H. Dersheimer, former Vice-President and General Manager of Pampanga Sugar Mills. He was a member of the Executive Committee of the Philippine Sugar Association and resided in the Philippines from 1949 to 1953. P. S— UNITED STATES SUGAR LEGISLATION. Since we prepared the above report further reports have reached us. The U. S. House of Representatives passed the Sugar Bill after removing the pe nalty provisions affecting the Philippine quota. Later we have news that the amended bill failed of passage in the Senate, largely due to the objections of Senator Fulbright. Imports By S. Schmelkes The Robot Statistics (Mercantile, Inc.) ALL figures are in kilos with the exception of those for foodstuffs which are given in package units: Tobacco By Baldomero Fernandez Tabacalera and Luis A. Pujalte Wholesale Dealer & Exporter of Leaf Tobacco THERE has been a marked improvement in the situa tion in Pangasinan. Prices fell to a low enough level to encourage stripping there for shipping to the United States. In the last two weeks heavy competition has devel oped and prices have risen. This will greatly encourage farmers to plant extensively for the next crop. In Isabela, prices paid are higher than expected and this will limit the exportation, especially to the United States, because of the high proportion of broken leaf (cater pillar-eaten) which naturally brings the proportion of stems and waste higher and makes the cost of stemmed-leaf higher. Due to the last two crops having been short, buying prices in general have been quite high and it is expected that the whole crop will be purchased from the farmers. Commodities Automotive (Total)............................................. Automobiles....................................................... Auto Parts....................................................... Bicycles............................................................... Trucks................................................................. Truck chassis.................................................... Truck parts....................................................... Building Materials (Total)............................... Board Fibre....................................................... Cement............................................................... Glass Window.............................................. Gypsum.............................................................. Chemicals (Total)................................................ Caustic Soda.......................................... Explosives (Total)............................................... Firearms (Total).................................................. Ammunition....................................................... Hardware (Total)................................................ Household (Total)............................................... Machinery (Total).............................................. Metals (Total)...................................................... Petroleum Products (Total). ...................... Radios (Total)....................................................... Rubber Goods (Total)........................................ June, 1955 4,064,713 786,671 226,975 5,624 267,050 460,475 1,841,527 8,054,530 June, 1954 2,098,231 196,727 242,088 10,443 143,680 468,169 4,732,196 Beverages, Misc. (Alcoholic).......................... Foodstuffs, Total kilos....................................... Foodstuffs, Fresh (Total)................................. Apples................................................................. Oranges.............................................................. Onions................................................................. Potatoes............................................................. Foodstuffs, Dry Packaged (Total)................. Foodstuffs, Canned (Total).............................. Sardines.............................................................. 118,931 487,847 12,880 6,652,708 618,510 45,332 17,030 5,285 9,415,463 2,555,124 3,966,007 14,485,933 79,093,949 126,645 1,494,957 262,245 630,072 9,072 5,611,383 553,895 53,906 9,821 7,157 6,039,059 790,867 2,620,368 8,440,967 63,097,381 44,144 1,066,747 12,599 31,668,770 31,814 2,772 10,013 10 46 36,783 416,183 62,918 8,690 28,723,517 42,284 800 15,808 3,000 1 24,639 386,658 20,666 INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS MEMBER — PHILIPPINE LUMBER PRODUCERS’ ASSOCIATION, INC. -------------*-------------SPECIALISTS IN KILN-DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Philippine Lumber Manufacturing Norton & Harrison Company Company Insular Saw Mill, Inc. 814 Echague 14-30 Soler St. 340 Canonigo, Paco Manila Manila Manila MANILA OFFICE: 603 FILIPINAS BUILDING 358 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1955 Milk, Evaporated............................................ Milk, Condensed.............................................. Foodstuffs, Bulk (Total)................................... Rice...................................................................... Wheat Flour..................................................... Foodstuffs, Preserved (Total).......................... Bottling, Misc. (Total)...................................... Cleansing & Laundry (Total).......................... Entertainment Equipt. (Total)....................... Livestock-bulbs-seeds (Total).......................... Medical (Total).................................................... Musical (Total).................................................... Office Equipment (Total)................................. Office Supplies (Total)....................................... Paper (Total)........................................................ Photographic (Total)......................................... Raw Materials (Total)....................................... Sporting Goods (Total)..................................... Stationery (Total)............................................... Tobacco (Total)................................................. Chucheria (Total)................................................ Clothing Apparel (Total).................................. Cosmetics (Total)................................................ Fabrics (Total)..................................................... Jewelry (Total).................................................... Leather (Total).................................................... Textiles (Total).................................................... Twine (Total)....................................................... Toys (Total)......................................................... General Merchandise (Total).......................... Non-Commercial Shipments (Total)............. Advertising Materials, etc. (Total)................ 140,948 26,899 701,290 19,999 617,502 923 175,155 3,361 723,492 659,931 886 603,445 49,388 5,774 94,539 483,033 115,820 304,195 33,924 8,084,889 82,536 1,188,058 14,985 268,041 522,544 120,233 411,268 34,530 1,066,296 209 435,750 3,705,782 85,300 3,062 1,921,097 128,780 25,025 674,716 96,840 4,620 90,260 1,033,148 54,459 155,258 31,968 4,912,661 48,053 1,327,413 17,677 274,436 1,492,289 91,019 223,744 40,779 848,281 1,213 175,024 3,384,410 44,452 12,369 1,937,084 183,143 2,160,277 Food Products By C. G. Herdman Vice-President, Marsman &» Company, Inc. CONDITIONS in the local market as regards food stuffs remain unchanged from the past two or three months. Wheat flour arrivals for July were well above 800,000 (50 lb.) bags as against the estimated consumption of 700,000; hence the very considerable overstock of flour which existed at the end of June has been increased. August arrivals will be very light but it is evident flour overstock will not be cleared up before the middle of October. There continue to be quite heavy importations of all varieties of canned foods and there are ample stocks on hand of all kinds of canned milk, canned meats, canned fish, as well as canned fruits and vegetables. Canned com which was previously banned, has now been re-classified by the Central Bank as a “Non-Essential Consumer” item and its importation in restricted quantities will now be possible. Supplies of fresh fruits and vegetables have been quite large. The Philippines has been particularly free of ty phoons so far this year with the accompanying heavy rains, and if this condition continues we will undoubtedly have continued ample supplies of fresh vegetables. Textiles By A. Margollbs General Manager Neuss, Hesslein Co., Inc. THE Central Bank directive cancelling the unutilized import licenses for textiles as of July 14, only a few days after officially releasing the third-quarter allo cations, has created confusion throughout the trade and is seen as a most unfortunate move, placing a consider able number of license holders in a position of being unable to honor, with overseas suppliers, the commitments made upon the release of their quotas. This is bound to create misgivings in the minds of overseas suppliers as well as local traders in future dealings. Ours is an established reputation of 143 years standing ... for complete banking facilities, unparalleled resources and world-wide service furnished by 59 fully-staffed branches and correspondents in every commercially important city. The FIRST NATIONAL city bank of New York BRANCHES IN THE PHILIPPINES MANILA Main Branch: JUAN LUNA STREET Port Area Branch: 13TH STREET PAMPANGA: Clark Field CEBU: Cebu Qty August, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 359 The reports and statements made about the exist ence of ample supplies to last for a period of years cannot be substantiated when taking as a basis the consumption in past years and the intrinsic nature of the textile trade. It is true that arrivals during the last few months have been above the average; it is also tiue that in some arti cles there is oversupply, but it is equally true that in many lines, particularly in standard materials of every day use and wear for the lower-income sections of the po pulation, there are only normal average stocks; shortages will occur as time goes by unless regular imports are re sumed, and what is feared more is that, in common with any commodity for which supply is less than demand, a rise in consumer prices will be unavoidable. This bare, hard rule of supply and demand is the most logical yardstick with which to measure the impli cations of the ban on textile imports, and the general view in the trade is that if this import vacuum is prolonged, the result will be a general shortage of standard matei ials of everyday use, and also increased prices, which .may reach serious proportions in those materials in very short supply. By virtue of being the largest import commodity and, consequently, the one alloted a major part of foreign exchange, textiles have always been regarded in many circles as a favored trade, and the impression has been allowed to be created among the general public that there is always an over-supply of textiles and that import quo tas could stand a severe curtailment. This is an unwise and dangerous state of mind because it must be remembered and appreciated that aftei food, clothing is life’s most essential need and cannot be considered a luxury, a non-essential, or allowed to be in short supply. In times of sacrifice textiles should not be discriminated against while other commodities which are not as essential to the life and well-being of the population, are left un touched. Statistics for the last five years show that the average yearly import permits only a supply of about 10 square yards per capita per year, or roughly two changes of clothing. The world’s average consumption last year was 41 square yards. The United States average per capita per year is 150 square yards. Let it be said that the textile trade is not unconscious of the acute foreign exchange situation and would be happy to cooperate with the authorities in every way, as befits the largest segment of the import trade of this country. It is to be regretted that no previous consulta tions with the textile trade associations took place before this latest move to ban imports; nevertheless, it is since rely hoped that as a result of this development a closer understanding and cooperation between the authorities and the trade will be established and that a re-examination will be allowed of important matters like re-classifi cation of items in the essential and non-essential catego ries (now only denims are considered essential articles of import and all other materials representing the bulk of textile imports are classified as non-essentials), allocation of exchange to the various groups, etc., all of which would redound to the benefit of the consuming public and to the benefit of the country, without involving additional for eign exchange expenditure. 't'he local market in July was dominated by the anA nouncement of the ban on textile imports and con siderable activity took place with prices firming all along the line and cash being demanded for sales. The New York market has experienced a firmer tendency during the last few weeks, particularly on cotton goods. Arrivals in July have been the lowest for months, with a total of 19,735 packages. From the United States there arrived 14,369, of which 5,887 were cotton piece goods, 1,281 rayon piece goods, 1,743 cotton pound goods, 587 rayon pound goods, 2,356 yarns, and 1,022 sewing threads. From other countries there arrived a total of PACIFIC HERIIinillSIM; CORPORATION 449 Dasmarifias Manila AMERICAN RADIATOR & STANDARD SANITARY CORPORATION AMERICAN VALVE COMPANY AMES BALDWIN WYOMING COMPANY BADGER METER MANUFACTURING CO. BADGER FIRE EXTINGUISHER CO. BALL BROS. MASON JARS BOMMER SPRING HINGE COMPANY CAPEWELL MANUFACTURING CO. CARBORUNDUM COMPANY COLUMBUS COATED FABRICS CORP. COLUMBIAN VISE & MFG. CO. CORBIN LOCK COMPANY DICK BROTHERS MANUFACTURING CO. EKCO PRODUCTS CO. GREAT NECK SAW CO. JACOBS MANUFACTURING CO. KEENEY MANUFACTURING COMPANY MALLEABLE IRON FITTINGS CO. NORTH WAYNE TOOL COMPANY PABCO PRODUCTS, INC. “Pabco” Products R. E. DIETZ COMPANY RADIUS AKTIEBOLAGET SLOAN VALVE COMPANY SOLARINE COMPANY TEMPLETON KENLY JACK CO. UNION CARBIDE & CARBON CORP. National Carbon Division “Eveready” flashlights & batteries Linde Air Products Division “Union” Carbide “Oxweld” Welding Rods, Supplies and Generators “Prest-o-Weld” Welding and_Cutting Apparatus UNITED STATES STEEL EXPORT CORP. ♦ STEEL PRODUCTS HOUSE FURNISHINGS GENERAL HARDWARE PLUMBING 360 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1955 A Gift of Distinction to he L ong - Remembered r i i i i j i i i L Handsome Dao box with your choice of the finest Tabacalera cigars makes an attractive remembrance from the Philippines. FREE! IIan<lcarvc<l initials on Dao boxes, an<l personalized cello phane cigar wrappers! I I I I J Tobacco growers and makers of the finest cigars since 1881 Exclusive Distributors MULLER & PHIPPS (Manila) LTD. Office: Port Area P. O. Box 950, Manila Tel. 3-34-01 5,366 packages, of which 3,454 came from Japan consist ing mostly of cotton and rayon piece goods; 1,040 from Hongkong, consisting mostly of cotton piece goods and cotton yarns; and 872 from Europe, consisting mostly of yarns and threads. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Roaa, Selph, Carraacoao & Janda THERE are pending at this writing before the current special session of Congress (July 7 to August 10) the following bills: H. B. 2468, “An Act defining a land tenure policy, providing for an instrumentality to carry out the policy, appropriating funds for its implementation, and for other purposes”. H. B. 2381, “An Act appropriating funds for public works”. H. B. 2703, “An Act to amend, repeal, and add new sections to Republic Act No. 580, otherwise known as the Home Financing Act, to enable the Home Financing Commission to carry out its functions effectively and to correct the deficiencies of the Act in order to make it more responsive to peculiar local needs and requirements”. H. B. 2144 (H.B. 2900) (H.B. 2977) (H.B. 3370), “An Act to pro vide a sound basis for foreign capital investment in the Philippines, providing for the administration of this Act by the National Econo mic Council, appropriating additional funds in connection therewith, and for other purposes”. H. B. 4506, "An Act to amend Republic Act No. 1267, entitled ‘An Act creating the Court of Agrarian Relations, prescribing its ju risdiction, and establishing its rules of procedure’.” H. B. 2676, “An Act to amend Republic Act No. 180, as amended, otherwise known as the Revised Election Code”. H. B. 4501, “An Act to amend Section 2(K) of Commonwealth Act No. 120, entitled, ‘An Act creating the National Power Corpora tion,’ prescribing its powers and activities, appropriating the necessary funds therefor, and reserving the unappropriated public waters for its use, as amended by Section 1 of Republic Act No. 358.” H. B. 3220, “An Act to prohibit the so-called No-Dollar Imports except under certain conditions”. H. B. 4413, “An Act authorizing the creation of positions of in ternal revenue field collectors to take over the function of Municipal and City Treasurers relative to collection, accounting and remittance of national revenues, and appropriating funds therefor”. H. B. 4163, “An Act amending Section 11 of the Philippine Tariff Act of 1909 and exempting textiles made of 100% Philippine ramie fiber from the payment of duty to provide incentives for the develop ment of the ramie industry.” H. B. 3268, “An Act amending certain provisions of Republic Act No. 1082, entitled 'An Act strengthening health and dental ser vices in the rural areas, and providing funds therefor’ ”, H. B. 4196, “An Act to amend certain items in Republic Acts Nos. 670, 920, 1156, and 1200.” (re Public Works Acts.) H. B. 4279, “An Act authorizing the President of the Philippines to issue bonds in the amount of P10,000,000 to finance cadastral sur veys throughout the Philippines, and authorizing the Director of Lands to take measures to insure collection of the survey costs and other charges”. H. B. 2650, “An Act creating a Juvenile and Domestic Relations Court in the City of Manila, amending for this purpose Republic Act No. 409, otherwise known as the Charter of the City of Manila”. H. B. 4504, “An Act to amend the Charter of the Central Bank enlarging its powers, and for other purposes”. H. B. 4513, “An Act to be known as ‘The Philippine Overseas Shipping Act of 1955.” H. B. 4515, “An Act to impose a special import tax on all goods, articles or products imported or brought into the Philippines, and to repeal Republic Acts Nos. 601, 814, 871, 1175, 1197, and 1375.” S. B. 386, “An Act increasing the paid-up capital of the Rehabilation Finance Corporation by ?50,000,000 for agricultural loans, creating a deposit and guarantee fund, appropriating funds therefor, and for other purposes”. S. B. 387, (H.B. 2744) “An Act establishing an Apprenticeship Training System and a National Apprenticeship Council, defining the powers and duties of the said Council and providing funds therefor”. S. B. 389, “An Act to encourage and assist in the establishment of Mortgage Banks and Investment Banks, create a deposit and guar antee fund for the economic development of the country through pi ivate initiative, appropriate funds therefor, and for other purposes”. S. B. 207, (H.B. 2574) “An Act to amend Sections 50, 51, and 52 of Republic Act No. 296, otherwise known as the ‘Judiciary Act of 1948’, as amended”. S. B. 390, (H.B. 4507) “An Act to authorize the fixing of floor prices for agricultural products, appropriating funds therefdr, and for other purposes”. August, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 361 S. B. 383, “An Act to amend Republic Act No. 1245 entitled 'An Act amending Section 2219J^ of the Revised Administrative Code and for other purposes”. (Rural Councils) S. B. 358, “An Act to facilitate the entry into the Philippines as international traders of nationals of the United States”. S. B. 391, “An Act to create the Home Financing Administra tion, to provide liberal home financing through an insured mortgage system, thereby stimulate home ownership and develop thrift through the accumulation of savings in insured institutions, repealing Republic Act No. 580.” ________ »t'hb following bills were passed by both Houses: A H. No. 2557—An Act defining a land tenure policy, providing for an instrumentality to carry out the policy, and appropriating funds for its implementation. H. No. 2650—An Act creating a Juvenile and Domestic Relations Court in the City of Manila, amending for this purpose Republic Act No. 409, otherwise known as the Charter of the City of Manila. H. No. 3187—An Act to amend in certain particulars Common wealth Act No. 338, known as the Charter of the City of Tagaytay. H. No. 4279—An Act authorizing the President of the Philippines to issue bonds in the amount of PIO,000,000, under the provisions of Re public Act No. 1000, to finance cadastral surveys throughout the Phil ippines, and authorizing the Director of Lands to take measures to in sure sollection of the survey costs and other charges. H. No. 4306—An Act appropriating funds for public works." H. No. 4366—An Act to amend section 13 of Republic Act No. 720 entitled “An Act providing for the creation, organization, and opera tion of rural banks and for other purposes.” H. No. 4412—An Act appropriating the sum of P50,000,000, out of the proceeds of the bond issue authorized by Republic Act No. 100, to finance the establishment of one or more pig iron smelting plants by the National Shipyards and Steel Corporation, and to provide said cor poration with operating capital. H. No. 4501—An Act to amend section 2(k) of Commonwealth Act No. 120, entitled “An Act creating the National Power Corpora tion, prescribing its powers and activities, appropriating the necessary funds therefor, and reserving the unappropriated public waters for its use”, as amended by section 1 of Republic Act No. 358. H. No. 4505—An Act to amend the first paragraph of section 1 of Act No. 3500, as amended, (re toll bridges.) H. No. 4506 (S. No. 382)—An Act to amend certain sections of Re public Act No. 1267. (re Court of Agrarian Relations.) H. No. 4508—An Act appropriating the sum of P20,000,000 to im plement Republic Act No. 899 which creates a revolving fund for the construction, reconstruction, or improvement of irrigation systems. H. No. 4512—An Act to amend section 11 of the Philippine Tariff Act of 1909 and exempting textiles made of 100% Philippine ramie fiber from the payment of duty to provide incentives for the development of the ramie industry. H. No. 4513—An Act to be known as the Philippine Overseas Ship ping Act of 1955. H. No. 4516—An Act to impose a special import tax on all goods, articles, or products imported or brought into the Philippines, and to re peal Republic Acts Nos. 601, 814, 871, 1175, 1197, and 1375. S. No. 207 (H. No. 2574)—An Act to amend sections 50, 51, and 52 of Republic Act No. 296, otherwise known as the Judiciary Act of 1948, as amended, (re judicial districts: detail of judges, etc.) S. No. 324—An Act to amend section 271 of the Revised Adminis trative Code, as amended, relative to vacation leave of judge of first instance. S. No. 351 (H. No. 3977)—An Act exempting investments in gov ernment bonds and deposits in banks from inquiry or investigation for the purpose of taxation. S. No 358 (H. No. 2602)—An Act to facilitate the entry into the Philippines as international traders of nationals of the United States. S. No. 383—An Act to amend Republic Act No. 1245 entitled," An Act amending section 2219-1/2 of the Revised Administrative Code and for other purposes.” (re barrio* councils.) S. No. 384—An Act to prohibit the so-called “no-dollar” imports except under certain conditions. Taxes By Washington Sycip Sycip, Gorres, Velayo & Company SUMMARIZED below are some of the ruling issued by the Bureau of Internal Revenue in June and July, 1955. 1. Income Tax If the dependents of a resident alien continuously make their home elsewhere, he is not considered the head of a family, irrespective of the question of support, and, therefore, is not entitled to the per sonal exemption of P3,000.00 and additional exemption of P600.00 for each child. However, this Office has, on various occasions, ruled that a resident alien, who is married but whose wife is residing abroad, is entitled to a personal exemption of P3.000.00las a married per son within the purview of section 23(b) of the National Internal.ReEnjoy KENT with the exclusive "MICRONITE” Filter! KING-SIZE — 80^ REGULARS — 80/ P. Lorillnrd Co., Established 1760 SERVICE with ATISFACTION CUSTOMS BROKERS WAREHOUSEMEN TRUCKING PACKING & CRATING FREIGHT FORWARDING SHIP HUSBANDING CARGO SUPERINTENDENCE AIR CARGO AGENTS TRAVEL AGENTS FIELD WAREHOUSING LUZON BROKERAGE COMPANY Derham Bldg. Cables: Telephone: Port Area LUBROCOIN 3-34-31 362 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1955 JSeautilul ------ TO SEE -------TO TOUCH ____ TO OPERATE Modern in design, the MARCHANT is the only Amer ican calculator with dials for checking keyboard entries. Its low-luster finish eliminates reflections causing eye fatigue. With key action twice as light as before, its keys and controls respond to the slightest touch. The MARCHANT is unmatched in accuracy control, sim plicity, speed, and silence. MARCHANT CALCULATOR ERLANGER & GALINGER,INC. 123 T. Pinpin off Escolta Tel. 3-21-61 PARCA LUNA iuciarnuu>A tissue This roll is made from the finest imported tissue 1000 Sheets 4-1'2” x 4-1/2” to a roll SAFE ★ SANITARY ★ SOFT Put up in convenient packages of 30 rolls each, wrapped and unwrapped rolls Special prices to dealers J. P. HEILBRONN CO. (Established 1909) Pioneer PAPER Dealers in the Philippines 575 Atlanta, Port Area, Tel: 3-54-06 Manila (Priv. exch. conn, all Depts.) venue Code, provided proof of marriage is established to the satisfac tion of this Office. A resident alien with child abroad is not entitled to credit as the head of a family. (BIR Ruling, June 28, 1955) 2. Percentage Tax (a) This Office has consistently ruled that a contract calling for the sale and installation of air-conditioning units, refrigeration units, and elevators is essentially a contract of purchase and sale of such articles and not a sale of services, the installation being meiely inci dental to the main contract of sale. Such being the case, the importer or manufacturer of the air-conditioning units, refrigeration units, and elevators are subject to the sales tax imposed under section 185 or 186 of the National Internal Revenue Code and not under section 191 of the same Code. (BIR Ruling, June 22, 1955) (b) It appearing that the National Marketing Corporation is a tax-exempt corporation under the provisions of section 16(c), Repu blic Act No. 1345 which provides as follows: "The NAMARCO shall be exempt from all taxes incidental to its operation except as herein provided for. All notes, bonds and debentures and other obliga tion issued by the NAMARCO shall be exempt from all taxes both as to principal and interests, except inheritance and gift taxes." all importation of commodities made by the said corporation for distri bution at reasonable prices to Filipino retailers and businessmen are exempt from the specific taxes imposed under Title IV of the National Internal Revenue Code or from the advance sales tax prescribed in sec tion 183(B), also of the Tax Code. (BIR Ruling, July 5, 1955). (c) A company is not subject to the 3% contractor’s tax on the re capping and, or vulcanizing of worn-out or defective automobile and truck tires, the business not being one of those mentioned in section 191 of the Tax Code as subject thereto. (BIR Ruling, June 27, 1955). 3. Specific Tax (a) If you are to use a wax wrapping machine in covering the car tons, where you pack your products, with wax paper, the cigarettes so packed shall be considered as mechanically packed in accordance with section 137 of the Tax Code and, therefore, the tax on the cigaret tes so packed shall be increased by one hundred and twenty per cen tum per thousand cigarettes in accordance with the same section of the same Code. (BIR Ruling, June 3, 1955) (b) For purposes of the provisions of section 127 of the National Internal Revenue Code, alcohol is considered the chief ingredient of medicinal and toilet preparations, flavoring extracts, and all other pre parations, if, after excluding water, alcohol constitutes more than 50% of the preparation by volume. The aforesaid preparations, of which, excluding water, alcohol constitutes more than 50% of the preparation by volume is subject to the specific tax imposed by sec tion 133 of the same Code on distilled spirits. (General Circular No. 468) (BIR Ruling, June 24, 1955) 4. Documentary Stamp Tax To impose a documentary stamp tax on a passage fare to be shouldered by the World Health Organization would be indirectly taxing the funds of this organization. Since this Organization is ex pressly exempt from such taxes under the Agreement between the Philippines and the Organization, passage tickets paid for by this Or ganization are exempt from the documentary stamp tax on passage tickets imposed under section 228 of the National Internal Revenue Code. (BIR Ruling, June 29, 1955) TAX CALENDAR- SEPTEMBER, 1955 September 8, 1955 1. Last day for taxpayers with fiscal years ending June 30, 1955, exempt under Act 35 or 901, to submit the following to the Depart ment of Finance: MOTOR SERVICE CO., If. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area — Tel. 3-36-21 August, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 363 a. Balance Sheet, June 30, 1955 b. Statement of Income for the year ended June 30, 1955 c. Manufacturing Statement for the year ended June 30, 1955 d. Schedules showing values of all real and personal properties of the indus trial plant or factory (Department Order No. 185, Revised). September 10. 1955 1. Last day for payment of amusement taxes for August, 1955 (Sec. 260 National Internal Revenue Code). 2. Last day for submission of monthly report by radio dealers (Sec. 296 National Internal Revenue Code). 3. Last day for employers who withheld taxes of P200 or more from salaries and wages of employees during the month of August to deposit such funds with the provincial, municipal, or city treasurer or Collector of Internal Revenue (Sec. 22 Revenue Regulations No. V-8-A). September 15, 1955 1. Last day for corporations having fiscal years ending April 30, 1955, to pay first installment of income tax (50%) (Sec. 51-c National Internal Revenue Code). 2. Last day for corporations having fiscal years ending January 31, 1955, to pay second installment of income tax (50%) (Sec. 51-c National Internal Revenue Code). September 29, 1955 1. Last day for corporations and partnerships having fiscal years ending July 31, 1955, to file their income tax returns (Sec. 46-c Na tional Internal Revenue Code). September 30, 1955 1. Last day for taxpayers having fiscal years ending.August 31, 1955, to submit their year-end inventories to the Bureau of Internal Revenue (Sec. 13 Revenue Regulations No. V-l). Advertising By George Cohen General Manager, The Robot Statistics (Mercantile, Inc.) Print Advertising: Five Top Brands 1. Cortal...................................... P 16,835.22 2. PepsiCola.............................. 16,033.94 . 3. Chelsea Cigarettes................ 15,801.95 4. Purico...................................... 15,082.52 5. Camay Soap........................... 13,643.28 Five Top classifications 1. Cigarettes............................... P 89,568.04 2. Schools..................................... 74,249.44 3. Department Stores................ 46,198,87 4. Soft-drinks.............................. 37,895.54 5. Headache and Colds Drugs.. 36,302,99 Five Top Advertisers 1. Philippine Manufacturing Co. P55,256.93 2. Sterling Products Interna tional ................................... 31,772.80 3. Colgate-Palmolive, Phils....... 31,341.07 4. Aguinaldo, L. R..................... 31,301.76 28,360.26 5. La Perla Cigarette Factory. . Total advertising volume: Pl,625,855.73 NOTE: Rates computed based on not taken into account. of publication. Volume discount SHIPPERS’ When booking cargo with American Steamship Agencies, Inc. please mention this ad. Thanks Cable Address: “AMERSHIP” Tel. 3-34-20 3-34-29 212 Myers Bldg. Port Area, Manila COLUMBIAN ROPE COMPANY OF PHILIPPINES, INC. ★ MANILA HEMP ★COPRA ★SHIPPING ★INSURANCE An Organization with over THIRTY YEARS EXPERIENCE In The Philippines READY TO SERVE YOU In Any of The Above Fields ★ Singer Building Port Area, Manila * BRANCHES: DAVAO • CEBU • TACLOBAN Now you can standardize on Falk Steelflex Couplings with the Type F which fits almost all industrial appli cations for either vertical or horizontal operation. New wide seal ring holds cover firmly in position, increases protection from lubricant loss and from entrance of dirt. EXCLUSIVE DISTRIBUTORS: THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Main Office: COR. TACOMA 4 2ND STS., PORT AREA • MANILA- TEL 3-35-41 Branch Offices at: BACOLOD CITY • CEBU CITY - P.O. BOX 282 364 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1955 Chamber Business By Stanley N. Fisher Executive Vice-President American Chamber of Commerce of the Philippines '[~)ELL Trade Revision Committee. Chairman Vicfj tor Smith and member Allan O’Gorman attended two public hearings of the House Ways and Means Committee in recent weeks to discuss passage of a bill to implement the Langley-Laurel Agreement by abolishing the 17% exchange tax and replacing it with a special (17% to start) import levy. Following the first public hearing, the Chamber issued Special Bulletin No. 41, July 28, 1955, calling to members’ attention that if either of the two bills before the House were passed into law without amend ment, the exemption pattern of CB Circular No. 62 of July 1, 1955, would not be continued, as one bill made no provisions for exemptions and the other bill exempted only canned milk, and machinery and/or raw materials to be used by new and necessary industries. Word that a second public hearing was to be held at 2:30 P.M., Thursday, August 4, 1955, came to the Cham ber only at 9:00 o’clock that same morning. Notice was immediately sent to Messrs. Smith and O’Gorman and to various members known to be also members of the va rious importers associations concerned (food, machinery, drugs and pharmaceuticals, etc.), with the result that the public hearing was well attended by a large number of in formed businessmen who spoke out emphatically for the amendment of the bills so that the CB Circular 62 exemp tions from the exchange tax would be carried over to the special import levy. On Tuesday, August 9, 1955, the House passed H. No. 4516, An Act to Impose a Special Import Tax, Etc., by a vote of 57 to 1, which not only transferred all the CB 62 exemptions from exchange tax to import levy, but in cluded a revised list of exempted drugs and pharmaceu ticals which had been prepared by the Drug Importers Association. On August 10, in the morning, the Senate Com mittee on Finance reported favorably on H. No. 4516, with a few minor amendments, and at 11:30 P. M. on the same day the Senate passed the bill with a few more, but still minor, amendments. Civic Affairs Committee. Acting on behalf of the American Chamber of Commerce, Vice-President W. O. Palmer, III, braved the elements (rain) on Sunday after noon, July 24, and, in cooperation with President Carlos Palanca, Jr., of the Manila Jaycees, planted a Memorial Tree at the Luneta during the ceremonies which ushered in the celebration of Arbor Week. Foreign and Domestic Trade Controls Commit tee. Upon receipt of the following cable from the Philippine-American Chamber of Commerce in New York on July 21, THE UNEXPECTED AND SUDDEN CANCELLATION BY THE CENTRAL BANK OF UNUTILIZED TEXTILE QUOTAS HAS RESULTED IN PROTESTS FROM OUR TEXTILE EXPORTER MEMBERS ON THE CROUND THAT THE MILLS HAVE STARTED PROCESSING GOODS TO MEET PHILIPPINE TASTE AND SPECIFI CATIONS AGAINST ORDERS PLACED BY MANILA IMPORTERS. THESE GOODS Protect Yourself! WAREHOUSING Modern fire-proof warehousing facilities Located on Waterfront at South Harbor Easily accessible to both land and water transportation, and excellently suited for shipside deliveries. * LUZON STEVEBORING COHPANY, IJIE. Tacoma and 2nd Streets Tel. 3-37-11 Port Area Manila Place Your Magazine Subscription Orders with an old, reliable firm Look, also, how convenient it is. All your sub scriptions can be entered at one place. All your pay ments can be made at one time—at one store. (We take care of your dollar remittances for you.) All the money-saving, short-term special offers will be secured for you. ORDER NOW! Subscription rates are the same as when you order directly from the publishers. August, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 365 MADE FOR THE PHILIPPINE MARKET ARE NOT READILY SALEABLE ELSE WHERE. PLEASE PRESENT TO THE APPROPRIATE AUTHORITIES ON OUR BEHALF AN APPEAL FOR THE SOFTENING OF THIS DIRECTIVE. UNLESS MO DIFIED CANCELLATION OF QUOTAS WILL CAUSE HEAVY FINANCIAL LOSSES, and at the request of our own textile-importing mem bers, the committee took this matter under consideration and presented its views to the Board of Directors at its last regular meeting on Monday, August 8. In line with the views of the committee, concurred in by the Board, copy of the above cable was transmitted to the Mo netary Board of the Central Bank and a letter written to the Philippine-American Chamber of Commerce in New York, an excerpt from which is quoted as follows: “Although the Chamber is, of course, in sympathy with its textile importing members, and takes a very dim view of the Monetary Board’s action. . . this whole matter has already elicited so much unfavorable comment that it was deemed inadvisable for the Chamber to take any other action than to forward a copy of your cable to the Mone tary Board.” Membership Committee. Since last report, an ap plication for associate membership from Mr. J. C. Click, associated with the member-firm of Williams Equipment Company, has been accepted. United States Investments in the Philippines Committee. This committee held a luncheon meeting on Thursday, August 11, at which finishing touches were put on an extensive report, prepared by the various sub committees, on the present investment climate (including laws, rules, regulations, as well as recommendations). This report will be submitted to the Board of Directors of the Chamber within the next few days. Subscribe to the JOURNAL to make your Files complete PASIG RIVER BODEGAS GENERAL BONDED WAREHOUSES ¥ SOUTHWESTERN SUGAR & MOLASSES CO. (FAR EAST), INC. MOLASSES BUYER 145 Muelle de Binondo Tel. 2-63-10 THE ROUTE OF THE BEARS Serving THE PHILIPPINES JAPAN HONGKONG U S. WEST COAST PORTS FAST - REGULAR - DEPENDABLE UNITED STATES LINES, INC. 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P30.00 COMMERCIAL DIRECTORY OF THE PHILIPPINES. 56 ....................... 195 DIRECTORY OF IN DUSTRIAL ESTAB LISHMENTS IN THE PHILIPPINES, 1953-1954 ................... 25.00 .00 366 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1955 SECURITY DELIVERY SERVICE ------------ INC.-----------ONLY JOINT AIR-GROUND CASH, BULLION, ajul SECURITY CARGO DELIVERY SERVICE IN THE PHILIPPINES Member of: The Philippine Safety Council The American Chamber of Commerce of the Philippines — WE SELL RELIABILITY — 613 M. II. Del Pilar Telephone 5-63-90 Delicious Best Exclusive Distributors: UNIVERSAL TRADING Tels. 3-80-44 • 3-84-98 COST OF LIVING PRICE INDEX FOR WAGE EARNERS. FAMILIES IN MANILA, BY YEAR AND MONTH, 1935-1954 (1941 = 100) Bureau of the Census and Statistics Year and Month ClothAll (100) Miscel laneous (14.84) ing Power Fuel, Light and Water (7.73) Food (63.43) 1935........ .. 89.7 89.7 96.4 89.7 85.1 90.2 1.1148 1936........ .. 87.4 88.3 96.6 88.4 77.5 87.7 1.1442 1937........ .. 88.8 88.3 96.4 88.2 85.2 89.5 1.1261 1938........ .. 92.1 92.1 96.8 92.2 88.8 92.5 1.0858 1939........ .. 93.2 94.8 97.7 94.8 84.3 92.9 1.0730 1940........ .. 97.3 98.9 98.9 99.0 89.9 96.7 1.0277 1941........ .. 100.0 100.0 100.0 100.0 100.0 100.0 1.0000 1945........ .. 691.5 834.3 236.4 1448.4 379.1 650.9 0.1446 1946........ .. 521.7 649.4 236.4 649.7 348.2 383.3 0.1917 1947........ .. 387.2 415.4 453.9 256.8 310.0 272.2 0.2583 1948........ .. 364.2 386.1 453.9 208.4 288.9 259.1 0.2746 1949......... .. 343.7 357.9 453.9 198.4 272.9 251.1 0.2910 1950........ .. 332.9 333.7 453.9 270.7 252.0 282.8 0.3004 1951........ .. 352.6 361.5 453.9 365.3 248.0 285.7 0.2836 1952........ .. 339.4 347.4 453.9 295.9 244.1 268.4 0.2946 January......... .. 342.8 350.9 453.9 330.8 247.5 269.7 0.2917 February . . . . . . 341.2 349.8 453.9 311.2 243.4 268.5 0.2931 March............. .. 337.9 345.1 453.9 301.1 243.4 268.1 0.2959 April............. .. 335.9 342.7 453.9 300.7 243.4 264.6 0.2977 May................ .. 335.1 341.8 453.9 293.2 243.4 264.4 0.2984 June................ .. 338.1 346.3 453.9 290.2 243.4 265.5 0.2952 July................. .. 340.4 349.5 453.9 286.6 243.4 268.1 0.2938 August........... .. 340.7 349.4 453.9 289.1 243.4 269.9 0.2938 September. . . .. 341.1 350.0 453.9 287.7 243.4 270.7 0.2935 October.......... .. 337.6 344.6 453.9 289.3 243.4 269.4 0.2962 November.. . . . 340.5 349.3 453.9 286.2 243.4 269.8 0.2937 December.... .. 340.9 348.9 453.9 284.4 247.5 272.3 0.2933 1953........ .. 318.2 314.3 453.9 280.1 243.7 269.5 0.3143 January......... .. 337.3 343.2 453.9 283.7 247.4 272.4 0.2965 February.... . . 323.0 321.1 453.9 281.5 243.4 273.0 0.3096 March........... .. 318 6 314.3 453.9 281.5 243.4 272.4 0.3139 April............... .. 317.6 312.8 453.9 281.1 243.4 272.2 0.3149 May................ .. 314.3 307.8 453.9 280.9 243.4 271.1 0.3182 June................ .. 313.1 306.0 453.9 277.8 243.4 271.1 0.3194 July................. .. 316.0 311.0 453.0 277.8 243.4 269.5 0.3165 August........... .. 316.1 311.9 453.9 277.8 243.4 266.4 0.3164 September. .. . . 315.8 311.6 453.9 277.8 243.4 265.6 0.3167 October.......... .. 315.3 310.6 453.9 279.0 243.4 266.4 0.3172 November. .. . . 315.2 310.1 453.9 280.9 243.4 267.0 0.3173 December.... .. 315.5 310.7 453.9 280.9 243.4 267.0 0.3170 1954.... .. 312.9 307.3 453.9 274.1 236.2 268.7 0.3196 January ... .,... 311.7 304.7 453.9 279.3 243.4 267.0 0.3208 February .... .. 301.5 290.0 453.9 278.3 232.1 267.0 0.3317 March........... .. 301.1 289.5 453.9 274.9 232.1 267.0 0.3321 April.............. .. 302.9 292 5 453.9 272.2 232.1 266.8 0.3301 May................ .. 309.7 302.8 453.9 272.2 235.7 266.5 0.3229 June................ .. 312.6 306.9 453.9 271.8 238.4 267.3 0.3199 July............... ... 318.6 316.2 453.9 278.5 236.7 267.9 0.3139 August........... .. 321.6 320.7 453.9 274.7 236.7 269.3 0.3109 September... .. 321.3 320 0 453.9 271.7 236.7 271 0 0.3112 October......... . . 317.8 314.4 453.9 271.8 236.7 271.2 0.3147 November... .. 318.2 314.9 453.9 271.8 236.7 271.5 0.3143 December 318.5 315.4 453.9 272.2 236.7 271.5 0.3140 1955......... January........... . 311.4 304.2 453.9 272.0 236.7 271.5 0.3211 February ....... 305 3 294.9 453.9 267.6 236.7 271.2 0.3275 March.......... . .. 303.9 292.9 453 9 267.6 236.7 270.1 0.3291 April............... .. 303.9 293.6 453.9 267.6 236.7 266.8 0.3291 May............... .. 307.0 299.2 453.9 266.8 236.7 264.4 0.3257 June............... .. 309.1 302.4 453.9 266.0 236.7 264.4 0.3235 July............... . . 312.0 307.3 453.9 267.9 236.7 263.0 0.3205 Wide coverage and accuracy is the Journal’s aim. August, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 367 Philippine Safety Council By Frank S. Tenny Founder and Executive Director THE Philippines now possesses a Police Chiefs’ Association, known as the APCOP, after six years of planning. About 600 local chiefs of police attended the first annual convention last month and various organizational tasks were undertaken. It is hoped that this activity will increase efficiency, cooperation, and uniformity be tween police departments. Col. C. V. Alba, Malacanan Police Adviser and former Quezon City chief, was elected as President. The Council will assist in an advisory capacity. Atty. Ruben A. Villaluz has been reinstated as Chief of the Motor Ve hicles Office and it was reported that he has instigated charges against a large number of employees there. Friction based upon disagreements in internal administration has dev eloped in the Safety Engineering Division of the Labor Department. It is hoped that these factors will not interfere with the functioning of either office, they both being important public safety agencies. A most harmonious and effective relationship has been developed be tween the Philippine National Red Cross and the Safety Council inso far as safety matters are concerned. For the year 1955-56 a program has been arranged whereby both groups will supplement the safety-educa tional efforts of the other, with joint classes and meetings being held in many instances. The PNRC spe cializes in water-safety and first aid, while the PSC handles fire prevention, driver-training and security matters. The “Award of Merit” for excel lence in safety matters for 1954 was presented recently to the Mobile Patrol Bureau of the Manila Police Department, under Capt. Isaias Alma Jose. The citation stated that the presence of these radio-patrol cars on the streets had created a new confidence in the minds of the public and tended to reduce crime and ac cidents. After much planning, the Civil Defense and Disaster Organization for the City of Manila is ready to get underway as soon as the budget ary items are settled. This is of great importance to businessmen, as their establishments and person nel will be affected. A special com mittee, of which the American Chamber of Commerce is a member, has been formed to represent com mercial interests. Your author is the Technical Advisor. The Taxicab Inspection Service observed its 6th anniversary this month, and pointed to a reduction in violations and accidents since 1949 which in some cases amounted to 93%. During that period, almost 2,000 drivers were eliminated as un fit. Inspection patrol cars continue to roam the streets day and night for the protection of the public. Al though further improvement is an ticipated, much has already been accomplished. The Council is beginning a spe cialized guard-training program for member companies which includes PRESTIGE PERSONNEL ..'.'Packaged” * Air Conditioning These Important Business Factors 1 IMPROVE! EXCLUSIVE DISTRIBUTOR: W. A. CHITTICK & CO., IXC. 31 Romero Salas, Erinita, Manila Telephone 5-30-33 unarmed defense (judo), first-aidi marksmanship, swimming, driving, and fire-fighting instruction. This is practical field work, classroom theory having been in most cases completed. A survey has disclosed that many security guards are not properly trained in these factois. The Public Health Association, headed by Dr. Romeo Y. Atienza (famed for his Blood Bank), has be gun a safety-educational program of some magnitude. Ways of edu cating both the present and the com ing generations in accident-preven tion are being explored. The Coun cil is closely cooperating. 368 AMERICAN CHAMBERTOF COMMERCE JOURNAL August, 1955 “LET YOUR HAIR DOWN” JTEEW z^ur Executive Vice-President Fisher was somewhat distracted for a few days during the month and was not his usually snappy and efficient self; that was for a day or so before and several days after July 30 when there appeared in the world 7 pounds 8 ounces of little girl now bearing the name of Mary Elizabeth Fisher, third child of the Mr. and Mrs. Fisher. FORD TRUCK TRIPLE ECONOMY/ MANILA B-750 CARGO KING V-8 Bus Chassis—233" Wheelbase—61 Passenger Bus Body Loads—G.V.W.—20,000 lbs.—900 x 20-10 ply tires Painted to your specifications. To make money and save money, choose FORD Triple Economy Trucks! For greater stamina and long run economy, for driver and passenger convenience, FORD Trucks are un beatable. Make every run an economy run! Get a FORD! 20TH & RAILROAD STS., PORT AREA BATANGAS THE BATANGAS TRADING CO. Batangas, Batangas TRADING & SUPPLY CO. ; ffi YSMAEL STEEL MFC. CO. Display Room: Quisumbing Bldg. Dasmarinas St., Manila, Philippines Main Office: 222 Espana Ext. Tel. 7-26-42; 43; 44 CAGAYAN _ Mr. EDUARDO MUNOZ Iguig, Cagayan ILOILO CITY Warner, Barnes & Company, Ltd. LAGUNA Mr. SIXTO B. REYES San Pablo City MANILA FORTUNE ENTERPRISES, INC. Corner Ecbague and Ayala TEL. 3-34-51 ASSOCIATE DEALERS MT. PROVINCE BAGUIO TRADING & SUPPLY CO. 33 Abanao St., Baguio City NUEVA ECIJA Mr. BRIGIDO LOBRIN Paco Roman St., Cabanatuan City PAMPANGA Mr. FELIX B. PUNZALAN Sau Fernando, Pampanga PANGASINAN DAGUI’AN TRADING CO. Dagupan City QUEZON Mr. ALFREDO LIM Lucena, Quezon TARLAC TARLAC TRADING & SUPPLY Tarlac, Tarlao Listen to “Ford News of the Day” over Station DZRII, Monday thru Saturday, at 8:00 a.m., with Ray Oliver, newscaster. “Ford Variety Musicale” over DZBB every Wednesday, at 7:30 to 8:00 p. m. August, 1955 AMERICAN CHAMBER OF COMMERCE JOURNAL 369 Mr. Fisher safely passed the crisis and is again in full stride. Congratu lations all around. We recently received from Dover Publications, Inc., 920 Broad way, New York 10, New York, a small paper-bound, pocket-book size, 128-page publication, “Say it in French”, especially designed to aid traveling businessmen. The pronun ciation of the words is clearly indicated and there is an index which makes rapid use of the book easy. The book is one of a series which covers also Spanish, Italian, German, and Rus sian. The price is 60/ (U.S.) per book. The copy sent us went to a son of the editor’s who is now in Vietnam, one of the young doctors sent there by the “Operation Brotherhood” of the Junior Chamber International; according to his letters he has been having trouble with French. after the Journal’s 35th anniversary issue had been mailed out, the editor received a letter from Mrs. Portrait and Commercial Photography * ELENA APT. Bldg. Romero Salat Tel: 0.58.76 Na oonneetloa with any other etudlo. NEUSS, HESSLEIN CO., INC. 304 Nueva, Manila Phone 3-99-71 Cable Address: “NEIIESCO” ★ Foremost Suppliers of Tex tiles in the Philippines for 54 Years ★ MILLON AR 10 SHARKSKIN WALDORF PERCALES FAUST STRIPED DENIM COMMANDER BROADCLOTHS ★ MILLONARIO GABARDINE AGUILA DENIMS CARABELA CHAMBRAY SEINE TWINE & YARNS Robert S. Hendry stating, in part: "I would be telling a white lie if I didn't admit that I like Robert’s ‘letter’ in the issue the best, but I want you to know that I enjoyed reading your ‘Future of the Philippines’. I agree with you wholeheartedly that our future is NOW.” The editor said that Mrs. Hendry was only acting the natural part of a good wife in liking her husband’s contribution to that special issue the best, although he admitted that Mr. Hendry’s letter, published as an arti . . . you get greater efficiency in less floor 9pace. It’s as simple as that, in the F-M Opposed-Piston diesel. With two pistons reacting to the force of combustion in a common cylinder, you get increased efficiency . . . reduced wear. Yes, that’s the story of the now-famous Opposed-Piston engine. Its performance superiority is proved by more than five million horsepower installed around the world. Only from Fairbanks-Morse can you get originality of engineering and design that assures you such outstanding performance. Look for the diesel designed for greater efficiency —it carries the famous Fairbanks-Morse Seal of Quality. Fairbanks, Morse & Co., Inc., Export Division Fair Lawn, New Jersey, U.S.A. Fairbanks -Morse a nome worth remombering when you want the bort cle, was a good one. ^the editor was quite peeved when A his eye fell,—too late, on a typo graphical error in his own long poem, “The Future of the Philippines”. In the third stanza, second verse, the words “the Revolution of 1898” should, of course, be “the Revolution of 1896”. He was in Baguio on a week’s vacation at the time the July issue of the Journal went to press or he might still have caught the error in the press-proof. Suppliers of all Articles for Clothing, Shirt and Umbrella Factories . ENGINES . OIISEl lOCOMOnviS • FUMES . SCAUS • EUCTRIC MOTORS ANO GENERATORS • RAILROAD EQUIPMENT • FARM EQUIPMENT • MAONETOS ATLANTIC, GULF & PACIFIC CO. OF MANILA MERCHANDISE SALES DIVISION Robert Dollar Building Port Area, Manila Tel. 3-36-61 (Connecting all Depts.) 370 ___ ___________________ AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1955 VV/e lacked the space to report it in these columns last month, but we had two interesting visitors in the Office,—Mr. Reginald Owen, the wellknown actor, and Mr. Cecil Broad hurst, the first one of the leading characters in, and the second the au thor of, the musical play, “The Van ishing Island”, of which a number of performances were given in Manila by a large group which toured this part of the world under the name of the “Moral Rearmament Mission”. They came to the Chamber Office to inquire into mining investment in the Philippines and were given such in formation as was available. Mr. Owen was also interested in the prison er-of-war and the internment camps here during the war and copies were obtained for him of Mr. Frederic H. Stevens’ book, “Santo Tomas”, and Dr. W. H. Waterous’ book on the prisoner-of-war camps. The girls in the office were quite a-twitter when they recognized Mr. Owen. A number of readers of the Journal wrote in to express their ap preciation of Mr. Paul R. Parrette’s speech on foreign investment be fore the Summer Training Institute of the Central Bank, published in the June issue of the Journal. Mr. W. A. Chittick wrote: “I have read with a great deal of interest your ‘Foreign Investments in the Philip pines’ as published in the June ACC Jour nal. You certainly should be [congratu lated for the thoughts contained therein. “Since I started my own business here in the Philippines in May, 1948, I have steadily brought U.S. dollars from sales of my United States property, etc., here for investment in my little company. So, like yourselves, I am actually carrying out my belief in this country with my own cold cash and returning my profits back into business. Also we have financed the send ing of one of our Filipino staff members to the United States twice for education there in some of our lines and we will send one more in September this year. Small, but we are actually doing it. I thought that you would be interested in knowing what we, a member of the Chamber, are actually doing. “Meantime, have fun and a good rest on your United States trip. Sincerely, etc.” EVERETT STEAMSHIP CORPORATION Owners-Brokers-Agents Manila 155 Juan Luna St., Tel. 2-79-31 General Agencies AMERICAN MAIL LINE From Seattle Tacoma Philippines Indonesia To Portland Vancouver Japan Straits PACIFIC TRANSPORT LINES To and From Colilornia-Japan-Philippinea BARBER-FERN-VILLE LINES To U.S. Atlantic Via Straits, Suez, Mediterranean FERN-VILLE FAR EAST LINES To and From North Atlantic Porta Gulf Porta-Philippines Via Panama MESSAGEftlES MARITIMES To and From Europe and Mediterranean Porta EVERETT ORIENT LINE Between Philippines, China, Japan Korea, Straits, and India Ports EVERETT STAR LINE Between Japan, China, Straits, India, and Persian Cull Torts PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Islands UNITED STATES SALVAGE ASSOCIATION UNITAS OSLO THAI AIRWAYS To and From Bangkok. Singora, Singapore Hongkong. 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Distance is no longer a problem as the products of the nation cross barriers speedily towards centers of population, in search of better markets and places of greater demand. Inquiries of Securities Market Department, Central Bank of the Philippines, Manila I=*V\/andI=D Move your own capital to more solid ground by investing in P.W. & E.D. BONDS, and tie the bonds of progress of our nation to the safest possible security for yourself—guaranteed by the Philippine Government, tax-exempt and free from attachment, execution or seizure. P.W. & E.D. BONDS earn 4 7. interest annually, payable every six months—are fully negotiable —can be used as collateral—and can be converted into cash any time you need money. Build a bridge to security with Govern ment Bonds. Promote the "Save-In* Bonds" habit through the PAYROLL SAVINGS PLAN. It's the easiest and surest way to save and earn. Every organization should install it for the welfare of the employees. ■H PUBLIC WORKS & ECONOMIC DEVELOPMENT BONDS The Philippine Manufacturing Company sponsors this campaign in the interest of improved living conditions throughout the Republic. "HIVVIN HUN6tH" AtaJivinq you and ijou/t c/tildwt ? YOU MAY STILL SUFFER FROM "HIDDEN HUNGER" EVEN IF YOU FEEL SATISFIED AT THE END OF A MEAL. "HIDDEN HUNGER "IS HUNGER YOU 00 NOT FEEL AT THE TIME FOR ITS RESULTS ARE DELAYED. IT IS CAUSED BY THE LACK OF CERTAIN FOODS IN YOUR DAILY MEALS. WITHOUT ENOUGH OF THESE FOODS,YOU BECOME ILL.THIS PICTURE STORY TELLS YOU WHAT THESE FOODS ARE,HOW TO GET THEM, ANO WHY YOU NEED THEM EVERYDAY Copyright PMC 1955