CHAPTER XXXIV

PEACE AND PROSPERITY

Unexampled material prosperity has come to the islands, partly as a

result of the establishment of peace, and the improvement in means

of communication; partly from a very different cause.

Among other dire calamities which he says have befallen the

Philippines Blount includes "tariff-wrought poverty," [184] and he

roundly scores the Congress of the United States for its attitude

toward the suffering Filipino.

As a simple matter of fact, tariff legislation enacted by Congress has

been the commercial salvation of the islands. The tariff law of 1909,

known as the Payne Bill, was passed August 5, 1909, and went into

effect sixty days thereafter. In order to make the effect of this

act more apparent, the figures from July 1, 1909, in the following

statistical tables are printed in bold-faced type. These tables speak

for themselves, very loudly.

Internal-Revenue Statistics

-----------+--------------+----------++-------------+------------+--------------

| Total | || | Total | Increase (+)

Fiscal Year| Collections | Increase || Fiscal Year |Collections | or

| | || | | Decrease (-)

-----------+--------------+----------++-------------+------------+--------------

| | Per Cent || | | Per Cent

1906 [185] | $4,434,364 | -- || 1910 |$7,160,810 | +22

1907 | 4,729,515 | 7 || 1911 | 7,922,787 | +11

1908 | 5,542,022 | 17 || 1912 | 8,389,929 | + 6

1909 | 5,871,267 | 6 || 1913 |9,035,922 | + 8

-----------+--------------+----------++-------------+------------+--------------

Trade with the United States

----------------------+------------------+----------------+----------------

| Imports from the | Exports to the |

Fiscal Year | United States | United States | Total

----------------------+------------------+----------------+----------------

1899 | $1,150,613 | $3,540,894 | $4,691,507

1900 | 1,656,469 | 3,635,160 | 5,291,629

1901 | 2,666,930 | 2,572,021 | 5,238,951

1902 | 4,035,243 | 7,871,743 | 11,906,986

1903 | 3,944,082 | 13,863,059 | 17,807,141

1904 | 4,843,207 | 11,102,860 | 15,946,067

1905 | 5,839,512 | 15,678,875 | 21,518,387

1906 | 4,333,917 | 11,580,569 | 15,914,486

1907 | 5,155,478 | 12,082,364 | 17,237,842

1908 | 5,079,670 | 10,332,116 | 15,411,786

1909 | 4,693,831 | 10,154,087 | 14,847,918

1910 | 10,775,301 | 18,703,083 | 29,478,384

1911 | 19,483,658 | 16,716,956 | 36,200,614

1912 | 20,970,536 | 21,619,686 | 42,390,222

1913 (at the rate of) | 26,264,218 | 23,573,865 | 49,838,083[186]

----------------------+------------------+----------------+----------------

Total Trade, including that with the United States

Column headings: FY: Fiscal Year; ID: Increase (+) or Decrease (-); PC: Per Cent

-----+-------------------+--------------------+-------------+------------------

| | | | Foreign Tonnage

| Imports | Exports | Total | Cleared

FY +-------------+-----+-------------+------+ Customs +-----------+------

| Value | ID | Value | ID | Collections | Amount | ID

-----+-------------+-----+-------------+------+-------------+-----------+------

| | PC | | PC | | | PC

1899 | $13,116,567 | -- | $14,640,162 | -- | $3,106,380 | 336,550 | --

1900 | 20,601,436 | +57 | 19,821,347 | +35 | 5,542,289 | 636,034 | +89

1901 | 30,276,200 | +47 | 23,222,348 | +17 | 8,982,813 | 987,094 | +55

1902 | 32,029,357 | + 6 | 24,544,858 | + 6 | 8,528,938 | 1,104,968 | +12

1903 | 32,978,445 | + 3 | 33,150,120 | +35 | 9,540,706 | 1,542,200 | +40

1904 | 33,221,251 | + 1 | 30,226,127 | - 9 | 8,493,868 | 1,542,138 | --

1905 | 30,879,048 | - 7 | 32,355,865 | + 7 | 8,263,444 | 1,417,396 | - 8

1906 | 25,799,290 | -16 | 31,918,542 | - 1 | 7,553,206 | 1,455,055 | + 3

1907 | 28,786,063 | +12 | 33,721,767 | + 6 | 8,194,708 | 1,293,266 | -11

1908 | 30,918,745 | + 7 | 32,829,816 | - 3 | 8,318,020 | 1,464,448 | +13

1909 | 27,794,482 | -10 | 31,044,458 | - 5 | 8,539,098 | 1,392,333 | - 5

1910 | 37,067,630 | +33 | 39,717,960 | +28 | 8,286,073 | 1,715,268 | +23

1911 | 49,833,722 | +34 | 39,778,629 | +0.2 | 8,678,810 | 1,808,308 | +15

1912 | 54,549,980 | + 9 | 50,319,836 | +26 | 9,363,296 | 1,939,079 | + 7

1913 | 56,327,533 | +11 | 56,683,326 | +17 | 8,246,026 | 1,868,811 | - 4

-----+-------------+-----+-------------+------+-------------+-----------+------

------------+---------------+-------------------+-----------------

| Receipts from | Amounts of |

| Percentage | Business on which | Increase (+)

Fiscal Year | Tax on | Percentage Tax | or Decrease (-)

| Business | is Collected |

------------+---------------+-------------------+-----------------

| | | Per Cent

1906 | $666,996 | $200,098,983 | --

1907 | 677,847 | 203,354,298 | + 2

1908 | 643,707 | 193,112,160 | - 5

1909 | 631,877 | 189,563,361 | - 2

1910 | 759,718 | 227,915,673 | +20

1911 | 885,804 | 265,741,443 | +17

1912 | 951,775 | 285,532,500 | + 7

1913 | 1,110,000 | 333,000,000 | +17

------------+---------------+-------------------+-----------------

The Philippine government collects as internal revenue one-third of

one per cent of the gross business done by merchants and manufacturers

in the islands. The fiscal year ending June 30, 1909, was the last

before the opening of free trade with the United States. The figures

for the four subsequent years therefore show the resulting stimulus

to business.

The gross business on which the percentage tax was collected in

1909 was $190,000,000 (P380,000,000). The increases over that year

have been:--

------+---------------------------------+-------------

| Increases over 1909 |

+------------------+--------------+ Percentage

Year | United States | Philippine | of Increase

| Currency | Currency |

------+------------------+--------------+-------------

1910 | $38,000,000 | P76,000,000 | 20.0

1911 | 76,000,000 | 152,000,000 | 40.0

1912 | 96,000,000 | 192,000,000 | 50.5

1913 | 143,000,000[187]| 286,000,000 | 75.3

+------------------+--------------+-------------

| $353,000,000[187]| P706,000,000 |

------+------------------+--------------+-------------

The gross business increased by a fifth in one year; by two-fifths

in two years; by more than a half in three years; and by more than

three-quarters in four years.

In the year 1909 the total exports and imports of the Philippine

Islands amounted to $59,000,000 (P118,000,000). The increases over

that year have been:--

------+----------------------------------+-------------

| Increases over 1909 |

+-------------------+--------------+ Percentage

Year | United States | Philippine | of Increase

| Currency | Currency |

------+-------------------+--------------+-------------

1910 | $18,000,000 | P36,000,000 | 30.5

1911 | 31,000,000 | 62,000,000 | 52.5

1912 | 46,000,000 | 92,000,000 | 77.9

1913 | 61,000,000[188]| 122,000,000 | 103.4

+-------------------+--------------+-------------

| $156,000,000 | P312,000,000 |

------+-------------------+--------------+-------------

The total trade increased by nearly one-third in one year; by more

than a half in two years; by more than three-quarters in three years;

and more than doubled in four years.

---------------------------------------+---------------+----------------

| United States | Philippine

| Currency | Currency

---------------------------------------+---------------+----------------

Total increase of business as above | $353,000,000 | P706,000,000

Total increase of trade as above | 156,000,000 | 312,000,000

+---------------+----------------

Total increase of business and trade | $509,000,000 | P1,018,000,000

---------------------------------------+---------------+----------------

An attempt has been made to make political capital out of one of the

heavy drops in hemp values. [189]

It is astonishing how fully Providence sometimes squares accounts

with the falsifier. Whatever may be thought of the advisability or

inadvisability of the hemp duty rebate, there is no escape from the

conclusion that it does not determine the price of hemp. While it

is true that there has been a time during the past two years when

the hemp grower received half, or less than half, the price for

his product which he obtained ten years ago, it is also true that

during the latter part of this same period he has received very much

higher prices than either he or any of his ancestors ever before

obtained. This apart from the fact that the price ten years ago was

quite abnormal, due to crop shortage resulting from a bad state of

public order. It is a poor rule that does not work both ways. If the

hemp rebate is responsible for the recent slump in prices, it must

also be responsible for their having later "kicked the beam."

The facts set forth in the following tables are also significant of

improved conditions:--

Banking

-------------+--------------+-----------------

| Total |

Fiscal Year | Resources of | Increase (+)

| Commercial | or Decrease (-)

| Banks |

-------------+--------------+-----------------

| | Per Cent

1906 | $15,351,690 |

1907 | 17,054,358 | +11

1908 | 17,454,214 | + 2

1909 | 18,138,425 | + 4

1910 | 22,856,455 | +26

1911 | 24,557,697 | + 7

1912 | 35,885,728 | +46

1913 | 31,210,177 | -13

-------------+--------------+-----------------

Postal Savings Bank

-------------+---------------------+-----------------------------

| Depositors in the | Total Amount Due Depositors

Fiscal Year | Postal Savings Bank | at Close of Year

+--------+------------+--------------+--------------

| Number | Increase | Amount | Increase

-------------+--------+------------+--------------+--------------

| | Per Cent | | Per Cent

1907 [190] | 2,331 | | $254,731 |

1908 | 5,389 | 131 | 515,997 | 102

1909 | 8,782 | 63 | 724,479 | 40

1910 | 13,102 | 49 | 839,123 | 16

1911 | 28,804 | 120 | 1,049,737 | 25

1912 | 35,802 | 24 | 1,194,493 | 14

1913 [191] | 38,075 | | 1,252,189 |

-------------+--------+------------+--------------+--------------

Coastwise Tonnage Cleared

----------------------+---------------+-----------------

| | Increase (+)

Fiscal Year | Tonnage | or Decrease (-)

----------------------+---------------+-----------------

| | Per Cent

1899 | 237,852 | ----

1900 | 482,685 | +103

1901 | 676,307 | + 40

1902 | 773,243 | + 14

1903 | 832,438 | + 8

1904 | 905,821 | + 9

1905 | 840,504 | - 7

1906 | 774,032 | - 8

1907 | 899,915 | + 16

1908 | 978,968 | + 9

1909 | 1,045,075 | + 7

1910 | 1,053,426 | + 1

1911 | 1,303,606 | + 24

1912 | 1,362,620 | + 5

1913 (at the rate of) | 1,262,136[192]| - 7

----------------------+---------------+-----------------

Importations of Coal (Equal Consumption Very Nearly) [193]

----------------------+-----------------

| Metric Tons

Fiscal Year | (2205 Pounds)

----------------------+-----------------

1899 | 30,812

1900 | 87,238

1901 | 126,732

1902 | 236,332

1903 | 268,650

1904 | 295,716

1905 | 269,666

1906 | 268,577

1907 | 295,684

1908 | 322,928

1909 | 294,902

1910 | 375,518

1911 | 413,735

1912 | 436,687

1913 (at the rate of) | 408,118 [194]

----------------------+-----------------

If possible, let us have more of this same kind of tariff-wrought

poverty and commercial distress! The country needs it.

This extraordinary story of rapid increase in commercial prosperity,

as well as in the volume of commerce between the Philippines and the

United States, is but a faint indication of what would come about

under a fixed policy which assured future adequate protection to life

and property in these islands.

Specific assurance that the United States would not surrender

sovereignty over the archipelago until its inhabitants had demonstrated

both ability and inclination to maintain a stable, just and effective

government would be followed by a steady, healthful commercial

development which would bring in its wake a degree of prosperity

hitherto unknown and undreamed of. The Philippines have the best

tropical climate in the world; soil of unsurpassed richness;

great forest wealth; promising mines; and a constantly growing

population willing to work for a reasonable wage. Give assurance

of a stable government, and prosperity will increase by leaps and

bounds. Turn the country over now, or ten years from now, to the

Filipinos to govern, and the reputable business men, mindful of

Aguinaldo's demand for his share of the war booty when Manila was

taken; of the attempted confiscation of the lands of the religious

orders and of Spanish citizens generally, [195] of the proposal to

tax foreigners [196] as such, and of the torturing of friars, other

Spaniards and Filipinos as well, in order to extort money from them;

of the widespread brigandage, the raping, the officially authorized

and directed murdering and burying alive which prevailed during the

period of undisturbed Filipino rule, will fold their tents like the

Arabs and quietly steal away. There will remain that peculiar class

of business men who, as the Filipinos put it, love to fish in troubled

waters. They will not lack good fishing grounds.

Should we not stimulate the commercial development of the islands

by adopting liberal provisions as to the sale of public lands,

safeguarding the public interest by imposing at the same time severe

conditions as to cultivation? And should not our anti-imperialist

friends cease to rail at those of their countrymen who are willing to

spend the money without which commercial development is impossible? Can

they not grasp the fact that the influx of Americans and American

capital sounds the death knell of slavery and peonage? It was Americans

whose testimony enabled me to prove to the world the existence in

the Philippines of these twin evils, and to bring pressure to bear

which resulted in prohibitive legislation. It is Americans who are

helping the poor Filipinos to become owners of land. It is Americans

who are encouraging them to take contracts for cultivating cane,

so that they have a direct interest in the crop.

Increasing prosperity means more money for the maintenance of

order, for schools, for hospitals, for sanitary work and for public

improvements. The diminution of exports which would promptly follow

any serious disturbance of the peace of the country would result in

the loss of much of the ground already gained.

The average business man is not a sentimentalist. So long as he

can safely carry on his work, and can be sure of just treatment, he

does not worry much over the nationality of the government officials

who maintain such conditions, but he will not invest his money in a

country where it is not reasonably certain that such conditions will

continue to prevail.

The business men of the Philippines know by experience what American

government of the archipelago means. Some of them know, also by

experience, what Filipino rule means. The slump in real estate

values and customs receipts which so promptly followed Mr. Wilson's

expression of hope that the frontiers of the United States might soon

be contracted, conclusively demonstrated their opinion as to the effect

of Philippine independence on the peace and prosperity of the country.

The number of Filipinos who thus far have demonstrated ability

successfully to manage large commercial enterprises is exceedingly

limited. Must not commercial prosperity coexist with political

independence, if the latter is to be stable?

During the visit of the congressional delegation which accompanied

Mr. Taft on his return to the Philippines in 1907, public sessions

were held at which the Filipinos were given opportunity to make

complaints. One fervid orator denounced the collection of customs dues,

internal revenue taxes, the land tax and the cedula tax. A congressman

asked him how he expected to get money to run the government after

all taxes were abolished. He replied, "That is a detail which can be

settled later."

Would it not be well to consider, at this time, one very important

detail, namely, what would be the effect on the insular government

of a marked falling off in the business from the taxes on which

practically all of the insular revenues are at present derived?

The Philippines: Past and Present (Volume 2 of 2) · 第 16 / 20 章