Evening star., 1933-01-13
Continued From First Page)

of intermediate government, the powers
of limited control over legislation Thy
| the Presidentl, of judicial review in cer-
| tain cases (by the United States Su-
preme Court, of supervision of foreign
affairs and of military occupation. I'M
migration is regulated and during the
same period certain duty-free imports
into the United States are curtailed to
specified quotas. The intermediate gov
ernment is to levy export taxes. to in
crease flom an initial charge of 5 per
cent in the sixth year OF that govern
ment TO 25 per cent in the tenth year.
| Complete independence is automatically
established In the eleventh year after
the inauguration of the intermediate
government and all free trade between
| the Philippine Islands and the United
States is then terminated, unless some
other understanding is arrived at by a
trade conference. The United States re-
tains. after the establishment of inde-
pendence, the right to maintain military
and naval stations in the Philippine
Islands, and the bill calls for an effort
on the part of the United States to
safeguard the future of the Islands by
securing international naturalization.
IT am returning this bill because /
consider that it Is subject to the most
serious objections. In the statement
which follows, ! do not enter upon
manv secondary criticisms, but confine
myself to the broader aspects OF the
subject, which, in any event, must domi-
nate conclusions as to .rightful action.
Economic and Social Consequences.
During the period of intermediate
government prior to complete independ-
enoe. not alone the internal and ex-
ternal political relations of the Philip
pine people must be adjusted. but they
must adjust their economic LIE 10 the
complete abrogation of the present free
trade association with the United
States. The period for sueh ADJUST
ment in this act is too short. too yio-
lent. These adjustments Will not be
confined to the period after indepeno-
ence. On the contrary, these reae-
tions will begin much before that, Tor
people do not wait to adjust their al
fairs until after a known. certainty.
They discount and prepare IN advance.
To grasp these implications, we must
consider what is proposed at the end OF
the 1O-year period. The free entry OF
Philippine products into the United
States. that is 80 per cent of their for
eign market, Is to cease at that time,
or at best be subject to an indefinite
negotiation. Unfortunately for these
people their economic life today, and
for many. years TO come, Is absolutely
dependent upon their favored trade
with the United States. Many OF their
industries cannot compete with the
lower standards of living and costs IN
other tropical and subtropical coun-
tries, except by virtue OF their favored
l. rtrafc
employed in these products must be
abandoned or alternatively all real
wages and standards of living and all
HAND values must be reduced to the
level of other competing countries.
Consequently, capital invested in large
industries, the security for mortgages
held by their banks, their insurance
companies. their other institutions must
! be greatly reduced, the financial system
of the Islands endangered, flight OF
capital must ensue, the ability of the
people to pay taxes undermined, the
government revenues diminished, and
| its ability to maintain its obligations
and to maintain public order Will be
weakened. The government already
has dificulty balancing its budget, and
| this difficulty will be thus intensified.
Sees Inevitable Difficulties.
| Under these circumstances they
| must inevitably and soon greatly di-
minish a large part of their generous
support to schools, health and roads.
The American Government will be
faced after projection of these events
| with years of military occupation
among a degenerating economic and
social life, with all Its governmental
difficulties.
A large part of the motivation for
| the passage of this bill Is presumed re-
| lief to certain American agricultural
| industries from competition by Philip
| pine products. We are trustees Tor
| these people and we must not let our
| selfish interest dominate that trust.
However, from our agricultural point
| of view, during the first period OF pre-
| sumably two years 1t gives no protec-
| ton. of any kind. During the follow
| ing five years 1t gives no effective pro-
| lection because the amount OF compeu-
| tive commodities admitted into the
| United States duty free is in sugar, so
per cent larger than that OF 1928; veg
etable oils IS per cent larger. In any
| event the sugar benefits inure more
| largely to foreign producers than to our
| the fate Of $4,000, 600 people upon this
| motive we should at least not mislead
our farmers about 1t. II We are to
base our action upon economic consid-
| eration-and I do not neglect its i'm
| portance-then also we should give re-
| gard to our farmers, workers, and bus
/, mess men whose livelihood, particularly
upon the Pacific Coast, will be largely
| destroyed by lack of positive provisions
| for reciprocal trade after independence
| upon which they can predicate their
I future.
Responsibility Without Authority.
The bill weakens our civil authority
! during the period of intermediate gov
ernment to a point of practical impo-
tenee. The powers which the high
commissioner can exercise on his own
| initiative are unimportant, and those
which can be delegated to him by the
| President over legislation are doubtful
and indirect. During this period, how
| ever, the American flag will be flying
and our Army will be in occupation.
Our Government with inadequate civil
means for exercising its sovereign au-
! thority to control the situation, bat
with continued moral responsibility to
maintain stable government, will daily,
during those years be faced with the
likelihood of having TO employ military
measures to maintain order in de-
generating social and economic stu
alton, or alternately to expend large
sums from our taxpayers In supporting
a constantly enfeebled government
Not alone do these difficulties arise
from the intermediate situation we ere
ate, but the Christian population
who are as yet bitterly opposed to the
controlling group. constituted at tne
last Philippine census O majority Of the
combined population Of nine provinces
occupying about 40 per cent of the
total land area OF the Philippine Is
lands. The maintenance of order in
this considerable element has present
ed many difficulties to us in the past
and it is not reasonable to assume that
the intermediate government will be as
well qualified to handle the situation
as the present regime for long time
1 rx,ttE1o,tt raal civil nfhOrttI