The Connecticut labor news., 1921-08-12
Warehouses Filled, Mer- chants $ h e W e S Crowded and Busi- ness Brisk, T h e y Claim, ill Refuting: Charges That They Cannot Manage Al fairs.
By JOSE r. MELENCIO.

other country. Ordinarily, no atten- ton would be paid to the Philippine situation but would instead be taken as an inevitable outcome of the worldwide depression. The fact, however, that the Filipinos are clam bring for independence has made their case totally different from that Of the other nations. They are assall- ed, now, as financial incompetents, not deserving of their independence.
 Now, there is absolutely nothing unusual in the request to have the limit of Philippine indebtedness in creased from $I 5000, 900 to $3o,ooo,- 900. The need for that increase Is not a sudden need. It has long been felt that the limit of $I5,ooo,ooo set too inadequate for the needs of the archipelago General Mcintyre, chief of the bureau of insular affairs, testl- fled that the increase now sought "has been requested by every gOver- nor America has ever sent out there"
 "The extension which is asked for i'll this bill," declared Hor~ brace M. Towner of Iowa, on th& DOT of the House, "Would be perfectly justi- fled merely in the ordinary course be- cause the business of the Philippine Islands, the progress and develop ment of their commercial interests, the increase of the wealth of the ls- lands, would make $I5,ooo, ,ooo as a limitation altogether too small an amount"
 That the government of the Phil ippine Islands can afford this increase of indebtedness cannot be disputed. In 1919, the revenues of the govern ment were $36,843,46I.59. The esti- mated revenues for this year will be about $42, ,ooo, ,ooo The assessed value of the taxable property in the islands was, for the last year, P8O2, ,o52, ,684- in American money, o1,478,342. The present condition of the Philippine revenues, therefore, as well as the present value of the taxable property sion of the limit of indebtedness than Is now requested. Ii will be remcn1- bered that at the close of the Civil war the United States had a total in debtedness of $3,ooo, 100000, while Canada, with a population less than that Of the Philippines, has a present indebtedness of $2,ooo,ooo, ,ooo and is now increasing it in order to take care of her soldiers.
 In fact the present indebtedness Of the Philippines is much less than the indebtedness of almost all of the small independent countries of the world. It is less than that of Argen- tina, that of Belgium Bulgaria, Bo- livia, Chile and Denmark Ecuador, Norway, Peru and Sweden also have greater indebtedness than the Phil ippine Islands.
 The trouble is not with the Fili- pinos. Their warehouses are filled with grain Merchants shelves are crowded with clothing, shoes and other manufactured goods. They have all the mechanical power they need and all the labor they want. Tran sportation and communication facil- ities are functioning normally. As regards the national bank, it has a superhuity of assets, but these are date collaterals. Encouraged by the tremendous prosperity experienced soon after the signing of the armis- tice this semi-g governmental institu- ton carried on an extensive banking business, extending credits freely to private commercial enterprises and lending money to coCoanut oil con cerns, copra producers, sugar plant ters, and many others. The depres- sion ensuing found its funds tied up. If only the war boom could be re- vived the difficulties now felt would dwindle or even disappear. Wordl industries, however, seem to have come to a stop. International trans > shipments of goods have ceased. The machinery of exchange and credit is "clogged and does not function as usual Consumption even of goods called necessities has decreased.
 Nevertheless the general business outlook in the Philippines is bright at least, by comparison with other ports of the world. This is clear from the exchange rates On June IS last sight drafts were quoted at 89d, that is, the peso was worth 46c, parity being soc.
 The Philippines possess things that the world must have. If, there fore, unsettled conditions of the world markets have killed prices, those same markets will come back to the islands as the process of read justment proceeds. Even now, were it not that the government needs additional revenues to keep public works going and currency stabilized, it is believed it could have fared along on current income until the na- tional bank was able to release con- siderable portion of the ''frozen'' funds.
 The situation Tn the islands IS one that is common among all the Coun- tries and which the usual economic remedies have failed to alleviate. This explains to a great degree the economic gloom that it is reported now pervades many countries of Europe and South America. England has failed to convert her war losses into irredeemable stock and her cur rency and note circulation has de creased I7,75o,ooo pounds. Her in dustry is practically stagnant, while products from the continent are pour ing in in increasing quantities.
 In France two great banking lnst1- tutions are in a critical condition. The Ranque de Province is reported to be failing, while the Banque Industrielle de Chine, one of the largest French banks in the Far East, has suspended payments.
 In Cuba six large banking houses have failed and a moratorium was ln force for several weeks.
 In Argentina, during the first four months of this year, bankruptcy has reached higher figure than at any time since IoI4. The failures totaled A8,48o, Boo pesos. The peso is about 34c United States currency.
 Brazil is in the throes also of hnan- cial hardship. Just recently a dele