Evening star., 1946-03-27
By Vincente VilIomin

Soisl Cos ueSu Go w lltlp Tile FHlllp-
pines rebuild herself and make her
independence scheduled for July 4,
1916, successful.
Four bills have been considered by
Congress- and two of them are al
ready laWs-an act placing the
Philippines within the operation of
the Export Bank of WASH
ington and an act turning over to
the Philippine government the ac-
cumulated internal taxes on certain
Philippine products amounting to
S73,000,000.
= The trade bill will be discussed
In the House tomorrow. The re-
habilitation bill, which passed the
Senate on December last, is still
in a House committee. Congress
authorized In 1884, but never ap-
propriated, the payment of about
s24, 900, 900 as the profit" of the
Philippines based on the dollar-peso
ratio from the deyaluation of the
American dollar, from which opera
tion the American Government
made profit" which was utilized
as expendable funds, of around
S2,s00, ,00o,o 900.
B.. To appreciate the effects of the
trade bill and the rehabilitation
bill an exposition of Philippine
conditions is essential.
s..- Estimate of Damage.
- The War Damage Corp, an RFC
subsidiary, sent three investigators
to the Philippines and reported that
the approximate total war losses
amount to $4,000 100000. The in
dustrial losses may be roughly esti-
mated as follows: J., Sugar, IS per
cent; coconut oil, 95 per cent; to-
bacco products. 95 per cent; mining,
10 per cent; shipping, 10 per cent,
and land transportation. go per
cent The estimate of losses by the
Philippine government is over
200,0o0,000, which in point of
completeness and present-day re-
placement values is logically the
more nearly correct figure.
The Philippine government today
Is spending on the basis of 150,-
100000 per annum on an uncertain
income of less than 100000 In
normal times the annual budget
was balanced at approximately $780,
600, 900. On the day the Philippines
become a republic it will be in
debt and funds will have to be
found to operate 1t.
However, there are two financial
items that tighten up the somber
picture-itemS which if wisely used
could bring about the country'S re-
vival from war and which could be
the functional base for its future
stability, prosperity and progress.
These are: (aD The $500 900 900
which Congress will appropriate to
meet partially the war damages and
tb) a national nest egg Of some $780,
100000 which the Americans spent
in the Philippines during and since
the war. This grand total of 81 1,020,-
100000 is four times the value of the
country's annual production, nine
times its yearly exports and seven
times the monetary circulation.
Under the trade bill, if not pre-
vented by administrative regula-
tions, the Philippines will exhaust
those two financial assets in five
to eight years, precipitating severe
economic depression. Not that the
law is not helpful, but rather it is
not helpful enough, and in the
evaluation of advantages. the United
States comes out at the long end
and the Philippines the short, pre-
senting the spectacle that it is the
United States that is being helped
primarily.
Over 80 per cent of Philippine
production, outside of the peoples
two main articles of diet-rice and
fsh-is exportable surplus. An
estimate of the Philippine American
trade in the five years following
independence should convince Con-
gress that the trade bill should be
more liberal to the Philippines.
Asks Full War Damage.
Two fundamental suggestions are
offered:
Cd Let Congress appropriate now
the full amount of Philippine war
damages. 1t is now clear, from
news coming from Tokyo, that at
least $4,000, 900 900 worth of repara-
tion assets will be obtainable from
Japan. Eventually, therefore, the
uncovered portion of the Philippine
war damages in the rehabilitation
bill of about $500,000,00O will be
paid. So since the bill provides for
the eventual settlement of 100 per
cent of the losses out of Japanese
reparation assets, it is suggested
that Congress advance now by in
creaSing the appropriation the full
amount of the losses. 1t will be in
the nature of aid-advance and not
Q loan-gift.