Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-06-22
THE PHILIPPINES.
lx-Trade With United
States.
BY Frederic j. Haskin.

Although the Payne-Aldrch tariff bill
has been the target for many verbal on
slaughts, there is one part of that meas
ure about which there has been but one
opinion, whether democrat or republic
can. That is the clause which provided
for practical free trade between the
United States and the Philippines. In
four short years the total trade Of the
islands has nearly doubled because OF
this clause in the bill and the beneiiciar-
les have been and will continue to be
the American merchants and manufac-
turers.
1t is not generally known in this
country that the Philippines maintained
protective tariff against the United
States as well as all other countries from
1899 to August, 1909. This was because
of the treaty of Paris. which stipulated
that Spain should have the same COM
mercial rights in the islands that the
United States might reserve to herself
One of the first problems which the
Americans had to face was whether or
not the Philippines should be self-sup-
porting. 1t was finally decided that the
insular government should be conducted
without aid from the United States
In order to do this tariff for revenue
became a necessity. If American goods
should be admitted free the same privi-
lege would, under the treaty, be enjoy ed
by Spain. Inasmuch as a large volume
of Philippine imports came from Spain,
and because Of the reasonable suppose
ton that the American acquisition or
the islands would draw a large Ameri-
can trade, it was seen that free trade
for the United States and Spain by the
would prevent the islands from being
self-supporting.
The decision to make the civil admin
istration of the new dependency indie
pendent OF
Tariff for Revenue Uncle Sans
Hits American Trade. due to two
reasons First. in the belief that the Fill
pinos, since they were to be trained fol-
self-government. should learn to support
themselves as rapidly as possible. Second
politics. The republicans realized that an
attempt to care for the inSular govern
ment out of congressional appropriations
would give the democrats chance to as
sail the Philippine policy every time a
dollar was asked for. Whatever the cost
of the Philippines may be to the United
States to date. the maintenance of the
government there cannot be included
therein.
Therefore a tariff for revenue was de-
cided upon and retarding of American
C'h
paper the United States had a fair show
with it's European and Asiatic rivals
and might be considered by theorists tC
have had an advantage for the senti-
mental reason that the islands belong to
the United States In reality, however
the mother country was at disadvan-
tage for two reasons.
In the first place. Spain, Great Britain
Germany and Switzerland controlled the
foreign trade Of the Philippines long be-
fore the Americans ever heard of the
islands. All these nations had well estab-
lished branches there from 30 to 200 years
before Dewey's memorable victory a
Manila bay, May 1, 1898. The other de-
terrent was the long haul and higher
freight rates which the United States ha6
to meet. In other words, the European
traders could land goods at Manila via
SueZ at lower rates than those possible
by the American route from the Pacific
coast
Consequently, American trade did no,
flourish as it should even though the
islands hat
New Islands Tariff been won al
Shifts Trade Status. fec s' os ,if SAM an[
money and had then been bought out OF
pure philanthropy for $2O.OOO.0Co. Ever
though we had owned the islands fol
ten years. despite our dominating in
fiuence over every phase Of Philippine af.
fairs we held but 20 per cent of the i'm
port trade of the islands. Great Britain
enjoyed 80 per cent. Even Australia out
stripped the United States in certain ar
free trade bill. Australia sold $5OO,OOt
worth of flour per annum to the Philip
pines. while the United States, the great
est wheat producer in the world. was
m Of
every year to the Philippines.
The free trade bill ended all this. The
treaty of Paris expired as the Payne
Aldrich bill was in the making. and
the bill which created the natural and
greatly delayed bond of commercial in
terests between the mother country and
her possessions in the Pacific. At about
the same time Congress passed the Cotton
bill, which set up within the islands the
new tariff wall which all the rest of the
world would have to hurdle while Ameri-
can products slipped untaxed through the
back door. However, American goods,
the raw material of which is of foreign
origin. still pay duty.
1t might be thought as a matter of
course Philippine products would be
given free entry into the United States
But not so. 4 limit of 500 90 tons of
sugar and 3c0COn,OO0 cigarettes and 15O
Go,GO0 cigars per annum was imposed
These figures have never been reached,
however. so that it is practically recipro-
cal free trade at this time. The greatest
volume of tobacco shipped. duty free. into
the United States was 1885, 1S1 900 cigar
cites and 1o.000.O0O cigars Sugar ND ia
date has not come within one half of that
limit.
Last year American importation of
Philippine sugar amounted to 161 193
TONS valued at 50. 14", S33 compared with
12S,9a6 tons with a value of S7144. 100 in
1911.
:. <
The beneficial effect Oh local Philippine