The proportion shipped to the United States of total Philippine exports of copra and coconut oil combined to all destinations, expressed either in equivalent quantities of oil or copra, increased from 34.75 per cent (the highest preceding the World War), to an average of about 87 per cent during the five-year period 1924-1928, and to 90.1 per cent in 1929.

Table 23 indicates the quantities and proportions of Philippine copra and oil shipped to the United States from 1899 to 1929, converted to equivalent quantities of oil.

Shipments of Philippine Tobacco Products to the United States, 1909–1929.

In general, Philippine cigars compete with American "nickel" cigars. Their average retail price in the United States is considerably less than the amount of United States import duty nominally waived thereon. American wrapper tobacco and other American products used in the manufacture and packing of cigars are used to a large extent in the manufacture of Philippine cigars coming to the United States, the filler being of native tobacco.

During the calendar years 1910 to 1914, soon following the inauguration of duty-free trade in Philippine cigars shipped to the United States, between 47.4 per cent and 63.3 per cent of the value of all Philippine cigars exported came to the United States. This percentage increased during the period 1923-1928 to about 80 per cent. In every year from the inauguration of duty-free trade in 1909 until 1927, the average value per thousand of Philippine cigars shipped to the United States was greater than that of cigars shipped to all other countries together, but in 1928 for the first time it was somewhat less. During 1924-1927 the average unit price margin in favor of Philippine cigars shipped to the United States over that of shipments to all other destinations was reduced considerably as compared with earlier years, and in 1928 and 1929 the margin was slightly in favor of cigars shipped to countries other than the United States.

During the four fiscal years 1910 to 1913, 27.7 per cent by value of all cigars and cigarettes entering the United States from all sources came from the Philippines; this proportion increased to 55.9 per cent during the five calendar years 1924 to 1928, and in 1929 and 1930, respectively, was 51.3 and about 54 per cent. Imports of cigarettes into the United States from the Philippines have been of relatively small importance, the trade being in cigars almost exclusively.

Table 24 indicates the annual shipments of Philippine cigars to the United States and the average value per thousand, according to Philippine statistics, from 1899 to 1929.

In spite of the relatively high tariff preference given Philippine leaf and other unmanufactured tobacco products since the inauguration of duty-free trade in 1909, less than 1 per cent by value of total Philippine exports of this character have come to the United States annually, except during the World War years and the years 1919 to 1921 and 1923.

Philippine leaf tobacco has no large market in the United States because of the low cost at which it can be manufactured into cigars in the islands, the low price which these cigars command in the United States, and the unsuitability of the Philippine leaf for blending with domestic filler tobacco.

During the five calendar years 1919-1923, the average annual value of United States imports of filler, leaf, and other unmanufactured tobacco products from the Philippines was about $221,000, increasing to $265,000 during the five calendar years 1924-1928; in 1929 the value was $443,000, and in 1930 it was $528,000. Of the total imports of these tobacco products from all sources (including those from Cuba and the Philippines), less than 1 per cent came from the Philippines, either in 1919-1923 or 1924-1928; in 1929 and in 1930 the percentages were 1 and 1.3, respectively. For detailed figures showing United States imports of Philippine cigars and cigarettes, and of tobacco leaf, filler, and other tobacco products, respectively, see Tables 13 (E) and 13 (N). During the calendar year 1929 the value of United States imports of all Philippine tobacco products was about $3,812,000, as compared with domestic exports of tobacco products to the Philippines amounting to $3,049,000, the value of these exports being equal to about 80 per cent of the value of all tobacco products imported from the islands.

Shipments of Manila Fiber to the United States, 1890-1894, 1899-1929.

Table 25 is a statement of annual shipments of manila fiber (abacá) to the United States. This product was on the general free list of the United States tariffs during the periods covered in the tabulation and so remained under the tariff act of 1930.

PHILIPPINE IMPORTS FROM THE UNITED STATES Development of Philippine Import Trade from the United States, 1899-1909. Following American occupation of the islands in 1898 there were no important gains in Philippine commercial imports from the United States (that is, excluding shipments for use of the United States Government itself) until the period following suppression of active revolt in the islands against the United States. This period coincided with that of the Philippine import tariff of 1901. Further gains under the Philippine import tariff of 1905 (1905-1909) were not conspicuous.

Considered in the light of earlier expectations, the growth of Philippine commercial imports from the United States must have been disappointing during the transition period 1899-1909, preceding dutyfree trade. The average annual value of such imports during the eight fiscal years 1902-1909, following relative pacification of the islands and preceding mutual duty-free trade, was $4,704,320, the greatest annual amount being $5,761,498, in 1905, and the lowest $3,994,098, in 1903. In the fiscal year 1909, just preceding the establishment of duty-free trade, Philippine commercial imports from the United States were $4,691,770.

It should be recalled in this connection that during this whole 10year period from 1899 to 1909 Philippine importations of supplies for the Government, both United States and insular, entered the islands free of duty from all sources, regardless of their tariff classification. Only fragmentary information is available as to the value of these Government supplies. In the fiscal year 1908 they amounted to $9,910,000 12 (including duty-free railway supplies) imported from the

11 Reenacted by Congress in the act of Mar. 8, 1902.

12 Hearings on the Philippine tariff bill before the Committee on Ways and Means, 61st Cong., 1st sess., Apr. 20, 1909, p. 20; statement of Col. George R. Colton, insular collector of customs.

United States alone, but probably they were much greater in the first years following the American occupation in 1898. These supplies are not included in Philippine commercial import statistics of the time, but it is reasonable to estimate that the value of these shipments from the United States during the 10-year period 1899-1909 was more than double the value of commercial imports of American goods.

During the seven years from July 1, 1902, to June 30, 1909 (which included about 95 per cent of the period when all dutiable Philippine products enjoyed a 25 per cent tariff reduction in the United States), the annual average value of the principal dutiable products shipped to the United States was about $1,155,000,13 while an annual average value of about $4,560,000 1 of dutiable commercial imports from the United States entered the islands without tariff preferences.

14

In the last five years preceding the inauguration of United StatesPhilippine duty-free trade, American commercial shipments (as distinguished from duty-free Government supplies) gained in value and entered the islands in substantially increased proportions as compared with the Spanish colonial period. All the European countries which had held leading positions in the Philippine import trade, except Spain itself, made some gains during this period, but the United Kingdom did not maintain its earlier proportion of the trade.

The following table shows the relative positions of the United States and of the European countries which led in the Philippine import trade during 1890-1894, under Spanish sovereignty in the islands, as compared with the 5-year period 1905-1909 immediately preceding the inauguration of mutual duty-free trade.

Value of Philippine import trade from various countries, 1890-1894 and 1905-1909

1 Some imports originating in the United States, notably wheat flour, were reported to be of Chinese origin, owing to transshipment at Hong Kong.

2 Not including United States and Philippine Government supplies, admitted free of duty.

The progress of Philippine imports from the United States of a selected group of commodities competitive with those from other countries, under three different Philippine tariffs during the earlier period of American occupation, preceding duty-free trade relations, is shown in the following tabulation:

13 About $1,103,000 in raw sugar, $26,000 in hats, and $26,000 in tobacco and tobacco products, annual average.

14 The total annual average value was about $4,800,000, but $240,000 (or 5 per cent) has been deducted as the estimated amount duty free under the general free lists of the Philippine import tariffs of the time.

Value, percentage, and increase of selected Philippine imports from the United States, during stated periods, 1899-1909

1 Excluding coin and bullion of gold or silver, and Government and railway duty-free supplies; also the following articles in the commercial trade of which the United States did not or could not compete: Rice, cattle, coal, fresh and frozen meats, and opium.

? Excluding from basis of computation rice, cattle, coal, fresh and frozen meats, and opium.

3 Somewhat understated, as some American merchandise imported from Hong Kong warehouses, or transshipped at that point to the Philippines, was not reported in Philippine statistics as being of American origin.

The net increase in the annual average of all Philippine importations of this group of commodities from all sources during the four fiscal years 1906-1909 (when the last Philippine import tariff preceding duty-free trade with the United States was in force), as compared with the earlier period of American occupation (January 1, 1899-October 31, 1901, when the provisional Philippine import tariff 15 was in effect), amounted to $4,166,945, of which $2,244,245 (or 54 per cent) was from the United States. Summarized by groups of commodities the increases in commercial importations from the United States were as follows: (1) Cotton and cotton manufactures, $627,031; (2) iron and steel and manufactures thereof, $600,140; (3) mineral oils (chiefly illuminating kerosene), $487,540; (4) leather and leather manufactures, $313,557; (5) wood and wood manufactures, $172,428; (6) meat and dairy products, $130,624; (7) vegetables, $65,698; (8) wheat flour, $43,545; (9) paper and paper manufactures, $6,240; (10) miscellaneous, $524,458. On the other hand, there was a decrease of $727,190 in annual average imports of spirits, malt liquors, and wines from the United States, owing to decreased numbers of American troops in the islands and the smaller consumption of American beer.

Philippine Imports from the United States by Leading Commodities, 19101914, 1924-1928, and 1929.

During the 5-year period 1924-1928 the average annual value of Philippine imports from continental United States was $71,321,634, an increase of more than $45,000,000 over the average for the 42year period July 1, 1910, to December 31, 1914.16 The imports from the United States further increased in 1929 to $92,593,000, but fell off to $78,183,000 in 1930. An examination of the detailed statistics shows that these increases over the pre-war period were widely distributed among commodities and groups.

During the period 1924-1928, as shown by annual average values, and during 1929, there were very substantial increases in Philippine imports of nearly all commodity groups from the United States,

15 Tariff and regulations accompanying Executive order of July 12, 1898, Washington, D. C.

16 The period July 1, 1910, to Dec. 31, 1914, was selected for this comparison rather than July 1, 1909, because Philippine import statistics for the earlier year do not include considerable amounts of supplies imported by or for the United States Government services. In the period following July 1, 1910, such supplies are included in Philippine import statistics, and comparisons with later periods must necessarily be based upon values which include these items. Under sec. 5 of the United States tariff act of Aug. 5, 1909, and sec. 12 of the Philippine tariff act of the same date, both passed by the United States Congress, all American products (except rice) were made duty free in the islands, conditioned upon direct shipment.

as compared with 1911-1914, although decreases took place or relatively small increases were made, in the following groups: Meat products, wood and manufactures of wood, cereals and cereal products other than wheat flour, raw and prepared coffee, wax, coal, fibers and fiber manufactures, spirits, wines, and liquors, and cement. Table 26 presents a comparison for 52 groups and items of leading commodities imported into the Philippines from all sources and from continental United States in 1911-1914 and 1924-1928, showing increases or decreases in average annual values for each group of imports, and the proportion of each group of items coming from the United States during each of the periods compared. The items are arranged in the order of values imported from the United States During 1924-1928. Table 26 also presents a statement of values for the same 52 groups and items during 1929, but does not show comparison with other periods.

The following tabulation summarizes briefly the annual values of 30 leading groups of Philippine imports from continental United States during 1924-1928 and 1929 and shows the amount and percentage of increase for each group or item tabulated, comparing 1924-1928 with 1911-1914.

Leading Philippine imports from continental United States, 1924-1928, 1929, and increase 1924-1928 over 1911-1914

2 July 1, 1910-Dec. 31, 1914.

3 These percentages indicate to what extent each of the items listed was responsible for the total increase in imports from the United States.