Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-20

Bile large profits is not sufficient to
compensate them for definite, certain
risks. This uncertainty regarding the
future is a heavy blight on the islands
Permanent American protection for
capital is still requisite for the de-
velopment of the country. Fortunately
the Filipinos have grasped the situation
and now seem willing to come to an
agreement on the subject
Senator Quezon in a speech Of Sep
TENDER Is, 1928, defending Gov. Gen
Stimsons program for economic de-
velopment through the investment, of
foreign capital, said:
"Who will dare to say that we have
no need of foreign capital? Who will
dare to say that the Philippines gives
its population and its natural resources
an opportunity to produce what they
should produce? Who will affirm that
we have enough capital to give steady
work and wages to the workers."
If foreign capital is to be attracted
some definite agreement must be
reached to postpone agitations for in
dependence for Is or even so years by
the adoption of a form of government
which will satisfy the legitimate as
pirations of the Filipinos and still pre-
serve the safeguards deemed essential
foreign citizens and American sover-
eighty.
Receive Tariff Benefits.
American and foreign capitalists
consider that the safety of their money
depends upon the connection with
America for another reason. American
goods enter the Philippines free of duty,
and Philippine products pay no customs
In rs Nf Ea fnl 4ato
gives the planters of the Philippines the
full benefit of the American tariff. The
producers of sugar need protection for
the same reason as those of Hawaii
Louisiana and the beet farmers Of the
North. The American protective tariff
is the cause of the high prices in the
islands. which permit wages to be about
f1ve times those which are paid workers
In similar fields in neighboring lands,
though the Filipino is not as efficient a
worker as the Chinese. Hence costs of
production are much higher in the
islands than in competing areas. The
markets of the world are open, but the
Filipino cannot meet the prices made
possible by the cheaper labor in other
tropical possessions.
1t therefore is not surprising to learn
that in the first six months of 1928 the
United States furnished 62.44 per cent
VI tile imports, Wnlle Japan was next,
with only OCT per cent.
The United States took 77.04 per cent
OF the exports. while Great Britain fol-
lowed with 4.89 per cent and Japan with
4.44 per cent.
The duties on Philippine imports re-
mitted by the United States amounted
IN 1925 to $4,000, 900. including $l3,-
00O, 900 given to the Filipino sugar in
dustry In increased prices. On SIS, 047, =
GOO worth os cigars the duty waived was
$l4,SS7 900, with corresponding amounts
on coconut products. embroideries and
other articles. To this must be added
the $14,500,000 spent on the upkeep of
the Army. about 10 per cent of the
value of Philippine exports.
Free Duty Big Asset.
II Philippine products now admitted
free should have to pay the regular
tariff rates they could not be sold III
the markets of America and could not
compete in other lands with goods made
by cheaper tropical labor. The result
would be business depression, unem-
ployment, reduced wages, industrial I'M
rest. the loss of capital and a general
commercial crisis. The very prospect
Of this terrifies investors.
Then the paralysis of business would
decrease the revenues of the govern
ment. even now insufficient, and there
would not be money enough to main
Continued on Fifth Page.)