Evening star., 1923-09-02
FUTURE
BRIGHT, SAYS WOOD
U. S. Is Heavy Loser il
Islands Bank-Foreign
Capital Is Welcomed

An encouraging future for the
Philippine Islands was forecast b,
Gov. Gen. Wood in a report sub
mitted to Secretary Weeks on tn,
record of the Philippine Government
Tor the year ending December 81
l'22, and made public yesterday b.
the War Department. The repor
told OF defects which have existed II
the island administration. revealed
steps taken In the way OF reform. and
treated enthusiastically of govern
mental policies made and being made
by the legislature and people.
Gen. Wood confined his observa.
TOMS almost wholly to questions re.
lating to administration and omitte.
all but the most general reference.
to the political situation in tn,
islands.
Loses hank Investment.
Or all the government enterprise S
the governor general said, .he Philip
pine national bank presented the mos
serious problem. Audit reports" h,
said. showed that the government
NfSN ie't SIliIl Ill lIl'
capital stock of the bank. and tha
remaining assets Of the institution
were largely tied uu in frozen loans
and investments and must remain
so for a long time. some Of them in
definitely"
fortunately" the governor added
''the public Is aware that the gov
=.
through its ownership Of 90 per cen
OF the stock. The situation is thu:
relieved of any cause OF alarm Il
depositors or holders OF the bank
circulating notes.
AT the present time the efforts O
the bank are largely directed tC
working out the affairs of variou:
interests in which II has large in
vestments, such as sugar, oil, tobac
co, etc.
Need High sugar Price.
The success of the banks and III.
outcome of the sugar centralS is
dependent upon the continuation o,
the present high price Of sugar and
the retention OF the preferential
products. and upon obtaining from
government operation degree OF
efficiency and success which expert
ence has shown is not generally
forthcoming."
Experience with the bank. Gen
Wood continued. had been like that
of most other such undertakings ant
had proved that governments could
not successfully conduct business.
The policy of the insular govern
ment Is to get out of business as
rapidly as sound business methods
and proper protection of the inter
ests of the government will per-
mit," the report declared, adding that
commercial enterprises of the gov
ernment had been conducted at a
heavy loss, with that OF the bank as
the heaviest.
OF the work of the legislature Gen.
Wood said:
Praise for Legislature.
THE spirit of the Legislature has
been one Of cooperation. The great
outstanding work of the fifth legis-
lature was the enactment of meas
ures necessary to stabilize our cur
rency and place government finances
on sound basis. The effect
has been the establishment of conf
dence in the financial integrity Of the
government, with resulting stabiliza-
tion of exchange"
Reviewing business conditions in
the islands, the report said there had
been general Improvement In busi-
ness and growing appreciation OF.
d
bility and necessity for the invest
ment Of foreign capital in the normal
development Of the islands,
81 feel confident" Gen. Wood said.
that in the future more encourage
ment will be given than in the past
to capital which comes to the
islands for the purposes of develop
ment of natural resources and the
conduct Of legitimate business"
Japan More Friendly.
Relations between the islands and
Japan We're reported as having reach
ed a better basis during the year as
a result of the visit of Gen. Baron
Tanaka of the Japanese army.
In a summary of the budget for
1928 4 surplus Of 625.233 pesos was
estimated Expenditures were given
st 65,671.3e1 pesos against estimated
income OF 6G.302, $50.
A progressive and steady improve
ment' was noted in the .functioning
of the department OF justice. accom-
panied by the increased confidence in
the courts"
The department Of agriculture and
natural resources, the report contin-
ued, recognizes the worlds growing
necessity for providing laws and reg
ulations which will encourage capital
both foreign and domestic-to take
up tracts of land with a view to de-
veloping industries engaged in the
cultivation of tropical products, such
as rubber. gutta percha. hemp. copra,
sugar, cacao. camphor, etc"
"All of these flourish in the Phil
ippines." Gen. Wood said. land there
is ample land for tremendous devol-
VISITORS PRAISE SESSION