The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-08-19
CONDITIONS IN
PHILIPPINES
People Want Limit of lndebt-
edness Increased From Sl5,-
100000 to S30,00O,00O.

v
tention would be paid to the Phil
ippine situation but would instead
be taken as an inevitable outcome
of the worldwide depression. The
fact, however, that the Filipinos
are clamoring for independence has
made their case totally different
from that of the other nations.
They are assailed, now, as finan-
cial 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 $15,000,000, to $780,
00O,0 900 The need for that increase
is not a sudden need. 1t has
long been felt that the limit Of
100000 set by an act of Con-
gress years ago was too inadequate
General Mcintyre, Chief of the Blu
reau of Insular Affairs, testified
that the increase now sought "has
been requested by every Governor
America has ever sent out there
"The extension which is asked
for in this bill" declared Honorable
Horace NJ. Towner, Of Iowa, on
the Floor Of the House, "would be
perfectly justified merely in the
ordinary course because the bust
ness of the Philippine Islands, the
progress and development of their
commercial interests. the increase
of the wealth of the Islands, would
make $l5,000,000 as limitation
altogether too small an amount"
That the government of the Phil
ippine Islands can afford this in
crease of Indebtedness cannot be
disputed. In 1919, the revenues Of
the government were $685.
461.59 The estimated revenues for
this year will be about $1,000, 900.
The assessed value of the taxable
property in the Islands was for
can money, $401 ,478,342. The pres
ent condition Of the Philippine rev.
cnues, therefore, as well as the
present value of the taxable prop
erty would warrant a far greater
extension of the limit of indebted
ness than is now requested. 1t
will be remembered that at the
close Of the civil war the United
States had total Indebtedness of
$4,000, 100000 while Canada, with
population less than that of the
Philippines, has a present indebted
ness Of $2,000,000,000 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. 1t is less than that
of Argentina, that of Belgium, Bull
garia, Bolivia, Chile and Denmark.
Ecuador, Norway, Peru and Swe-
den also have greater Indebtedness
than the Philippine Islands.
The trouble is not with the Fill
ipinos. Their warehouses are fill
ed with grain. Merchants shelves
are crowded with clothing, shoes
and other manufactured goods.
They have all the mechanical pow
or they need and all the labor they
want. Transportation and com
muncation facilities are function
ing normally. AS regards the Ma
tional Bank, it has a superfluity
Of assets, but these are "frozen"-
there is no way to liquidate col
laterals. Encouraged by the ire
mendous prosperity experienced
soon after the signing of the ar
mistice this mi-governmental in
stltution carried on an extensive
banking business, extending credits
freely to private commercial enter
prises and lending money to cocoa
nut oil concerns, copra producers,
sugar planters, and many others.
The depression ensuing found its
funds tied up. If only the war
boom could be revived the diff
culties now felt would dwindle or
even disappear. World industries,
however, seem to have come to a
stop. International transshipments
of goods have ceased. The ma
chinery of exchange and credit is
clogged and does not function as
usual. Consumption even of goods
called necessities has decreased.
Nevertheless the general businss
outlook in the Philippines is bright
at least, by comparison with 9TH
er parts of the world. This is
clear from the exchange rates. On
June 18th last sight drafts on Ma
Mia were quoted at per cent, that
is, the peso was worth 46 cents,
parity being so cents.
The Philippines possess things
that the world must have If,
therefore, unsettled conditions of
the world markets have killed
prices. those same markets will
come back to the Islands as the
process of readiustment proceeds.
Even now, were it not that the
government needs additional rev.
enues to keep public works going
and currency stabilized, it is be-
lieved it could have Jared along on
current income until the national
bank was able to release a consider
able portion of the "frozen" funds.
The situation in the Islands is
one that is common among all the
countries and which the usual eco
nomic remedies have failed to al
leviate. This explains to 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 loans into ire
deemable stock and her currency
and note circulation has decreased
f17,750,000 Her industry is prac-
tically stagnant, while products
from the continent are pouring in
in increasing quantities.
III France two great banking in
stitutions are in a critical condi-
ton. The Banque 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 pay
ments.