Evening star., 1937-04-25

wv announced the noon editions
4 Of the Manila newspapers on
March 10.
The immediate effect Of this news
from Washington was a near panic
on the mining share stock exchanges.
There was agitation to close one Of
the three exchanges, but this was
prevented. During the wave of SELL
ing averages dropped 1927 points on
the Manila exchange. The next morn
ing the market steadied, but trading
remains dull, awaiting developments
in Washington.
American business men are par
ticularly alarmed because of the pos
sibly sudden change in their civil
status. Under the Philippine con-
stitution they have the same civil
rights as the Filipino for the dura-
ton of the Tydings-McDuffe act, and
have naturally based their commit
ments on the 10-year transition pc
Rod This prospect of independence
in one or two years has a disruptive
effect on American business.
There are diverse opinions among
the American residents as to the wis
dom of shortening the transition
period and the results Of independ-
ence. In board rooms and Offices
along the Escolta and over Scotch and
soda in the clubs every one is anxious
to talk, but none wishes to be quoted.
Invariably they warn me, This is
my opinion, but it is not for publica-
ton with my name while I'm living
in the Philippines" So, for the pres
ent, my informants must remain
anonymous. They are people who
have been prominent in business. gov
ernment, military or educational cir
cles in the Philippines for from S to
35 years.
Investments Held Penalized.
My first call was on man who
has been in Manila 35 years, repre-
senting a large organization protect
| ing and fostering American business
| interests.
The sooner We grant independence
the better for U.s." he said. There
has never been any gratitude from
the Filipinos and never any encour-
agement to American business. Every
| bit Of capital that has been invested
has been penalized and told it wasn't
wanted. That idea was introduced by
representatives of our own Govern
ment and first defined by Governor
General Taft: Philippines for the
Filipinos'
What do you think will happen to
the Philippines If the United States
steps out and leaves them within the
next year or two?"
THE same thing will happen no
matter when we leave. Japan will
move in. The trade. balance gives the
answer. The Philippines had an un-
favorable trade balance with Orien-
tai countries for 1886 of 28,689,5 ,578
pesos, OF which 9,742,258 pesos Of that
unfavorable balance was due to trade
with Japan. That spells the economic
ruin of the Philippines when the
American marekt is no longer open
| to them"
Don't you think the United States
has a moral obligation to make eco
nomic adjustments to save them from
that ruin?"
Decidedly no! We've been saw
ing Philippine industry for years and
penalizing our own. Another dan
ger is that Japan will dump her
cheap textiles and other manufac-
tured goods here and reship them
to the United States. That is hap
pening now and will be 100 per cent
worse after independence If tariff
walls are not built up to protect us. "
Plans Return to States.
'WIll you return to the States
II and when independence is
granted?"
"Yes, men like me are through here.
We're among the sacrifices the United
States made to the islands. At home
there's been a lot OF sympathy vast
ed on the Filipinos but none on the
Americans who have spent the best
years Of their life here trying to make
American altruism practical"
As I left the Office he followed me
to the door saying "Let me remind
you and the American public that
there have been no great American
fortunes made in the Philippines"
On the street hailed taxi II
pulled in to the curb between bright
red calesa drawn by small native
pony and a wooden wheeled hay cart
pulled by numbering carabao. The
taxi driver wore a dirty white uniform
and company cap perched at a
jaunty angle. A week earlier he would
have opened the door, but since all the
flag waving for early independence,
Americans are treated with scant
courtesy on the streets Of Manila.
At an incredible speed we negotiated
the conglomerate maze of traffic
miraculously missing calesas, CARO-
matas, carabaos. street cars, motor
buses and many new. shiny, high
priced American automobiles.
Slightly jittery, I climbed flight
of stairs to newspaper Office. A we'll
known American newspaper man who
has been in the islands for 20 years
was willing to give me his views, pro-
viding I wouldn't disclose his name
"The United States can't afford to
leave the Philippines" he announced
I'VE haven't even tapped the market
here yet. They have wealth Of raw
materials. We can take these raw
materials in exchange for our manu-
factured goods"
But with the trade balance in favor
Of the islands what advantage Il
there to the United States In encour-
aging that trader" I asked.
THAT won't always be true. Why
shouldn't we buy from the Philippines
instead Of from European countries?
For example, the Fflipinos make the
finest hand-woven materials and en-
broideries. We don't make them in
the United States. We import from
Europe. Why not from the Philip
pines? The same is true Of rubber
Properly developed, the Philippines
could produce enough rubber to sup
ply the American market. Let us buy
these things and sell them shoes, stoves
| s~