Increases in Philippine Imports from the United States, by Leading Commodity Groups, 1923-1929.

In 1929 goods from the United States entering the Philippines were valued at $92,593,000, which was 63 per cent of the total Philippine importations from all sources, amounting to $147,160,000. In some of the major commodity groups the United States supplied well over 80 per cent and even over 90 per cent, and in automobiles, parts, and tires supplied practically the entire Philippine import trade during 1929. It should be noted, however, that although the amounts supplied by the United States were in practically all groups much larger during 1929 than in 1923, the proportion of total Philippine imports supplied by the United States during 1929 was not as great as in 1923 in the case of several of the groups, namely, paper and manufactures; electrical machinery, goods, appliances, and apparatus; edible fish products; chemicals, drugs, dyes, and medicine; fertilizers; railway cars and parts; and perfumery and toilet preparations. There was an actual decrease in 1929, as compared with 1923, only in the imports of woolen manufactures supplied by the United States.

The following tabulation shows the principal Philippine imports from continental United States in 1923 and 1929, by 22 groups arranged in the order of magnitude for 1929, with notations of increases or decreases.

Leading Philippine imports from continental United States, 1923, 1929, and increase over 1923

The value of total Philippine imports from the United States during the years ended May 31, was $89,096,000 for 1929, $90,050,000 for 1930, and $59,987,000 for 1931; during the corresponding periods total imports from other sources were $53,082,000, $54,428,000, and $37,294,000, respectively. Thus, compared with the corresponding period of 1928-29, the value of Philippine imports from the United States increased 1.1 per cent for 1929-30, but decreased 32.7 per cent for the year ended May, 1931; while imports from other sources increased 2.5 per cent for the 1930 period, and decreased 29.7 per cent for the year ended May, 1931. (For a similar comparison of Philippine exports during the same periods, see footnote a, p. 27.)

63839-31--4

Philippine Imports of Cotton Cloth from the United States.

Cotton cloth was the largest single commodity in point of average annual value imported into the Philippines during 1911-1914, 19241928, and 1929, considering either the total imports of such cloth from all sources or from the United States. During 1911-1914 cotton cloths imported into the Philippines from the United States averaged $4,506,282 annually, and increased to an average of $11,433,677 in 1924-1928, and to $12,145,472 in 1929, or more than two and one-half times. However, the relative increase in total cottoncloth importations from countries other than the United States, comparing 1924-1928 with 1911-1914, was somewhat greater than from the United States.

Annual averages of different classes of the principal cotton-cloth importations into the Philippines, by yardage and value during 1911-1914, 1924-1928, and for 1929 are indicated in Table 27. Philippine Imports of Wheat Flour and Rice Increased Production of Rice in the Philippines.

The Philippines do not produce wheat flour in appreciable quantities, and American competition in this product in the Philippine market has been principally with Australia and Canada. The Philippine tariff preference to American wheat flour, even under its dutyfree entry into the islands, was not as great as the measure of its tariff protection in the American home market, except during the operation of the United States tariff act of 1913, when wheat flour was duty free in the United States under certain conditions. Of wheat flour, which during 1924-1928 had become the largest single foodstuff in point of annual average value imported into the Philippines, the United States supplied about 85 per cent of the total imports as compared with 65 per cent in 1911-1914. Annual average Philippine per capita imports of American wheat flour also increased from 6.88 pounds during the 42-year period July 1, 1910-December 31, 1914, to 10.33 pounds during the 5-year period 1924-1928 (calendar years) and about 11.3 pounds in 1929. This item was an example of increased Philippine importations from the United States notwithstanding the somewhat diminishing tariff preference resulting from the effect of constant Philippine specific duties on a commodity imported at generally higher unit prices during the period 1924-1928 as compared with 1911-1914.

During 1911-1914 17 the average annual value of Philippine rice importations was $6,671,518, the largest item of imported foodstuffs in point of value, the United States supplying none. During 19241928, total rice importations averaged $4,745,028, and in 1929 were $5,810,013, the United States still not participating in this trade to an important extent. Wheat flour took an almost comparable place in foodstuff imports during this period, with an annual average value of $4,936,202 in 1924-1928, and $5,060,078 in 1929. The lack of American participation in Philippine rice imports is an example of the ineffectiveness of Philippine tariff preference to a United States exports product.

Rice is the principal staple cereal of the Philippine population and is currently the most important single agricultural product of the islands. The value of rough rice (paddy) production for the five

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

years ending June 30, 1928, averaged $95,345,000,18 which was the equivalent of nearly 90 per cent of the value of Philippine exports of all commodities to the United States during that period. The average annual production of paddy rose from about 212 pounds per capita during the five years ending June 30, 1914,19 to about 368 pounds during the corresponding period 1924-1928.20 In spite of this greatly increased production the islands have not been on a net rice exporting basis since the American occupation.21

The import rates on rice in the Philippine tariff of 1909 were devised on a revenue-producing basis, with some regard to tariff protection of Philippine growers, and collateral provision for executive suspension of these duties if such action were required by local conditions.22 The Philippine Legislature, under the congressional act of August 29, 1916, was given authority to enact or change Philippine import rates on non-American products, subject to approval or final veto by the President of the United States. Under this authority the Philippine Legislature in 1922 increased the import rates on husked rice to 68 cents per hundred pounds and also increased the rates on unhusked rice and rice flour, the intention being to give further tariff protection to Philippine rice growers.

Nevertheless the Philippine tariff rates (enacted by Congress) on non-American rice in 1913, when duty-free trade in this cereal from the United States to the islands first became effective, 23 and the increased rates subsequently enacted by the Philippine Legislature, were not sufficiently high to encourage imports from the United States; nor have rates since been fixed at such a point. Since 1913, moreover, the Philippine rates on milled rice, the principal Philippine import of this kind, have not been as high as those of the United States tariff, and consequently the possible tariff preference to American rice in the islands has not been as great as the measure of its protection in the home market.

It is not assured that Filipino consumers would have accustomed themselves to American rice, even if stimulated by a larger Philippine tariff preference to this commodity. Moreover, the average price of American rice exports was usually higher than that of Philippine rice imports. In substance, however, both the Philippine import rates on non-American rice originally enacted by Congress and those subsequently enacted by the Philippine Legislature were fixed at

18 Statistical Bulletin of the Philippine Islands, No. 11, Table 38.

19 Computed on the basis of estimated Philippine population for this period, and the total cleaned rice production as reported in Statistical Bulletin of the Philippine Islands, No. 2, Table 16.

20 Computed on the basis of estimated Philippine population for this period, and the total paddy produc tion as reported in Statistical Bulletin of the Philippine Islands, No. 11, Table 38.

21 There was in fact an export prohibition respecting rice, which became effective on Aug. 6, 1919, and was removed by the Governor General on Sept. 24, 1930.

22 Philippine import tariff of 1909, par. 215.

23 Tariff act of Oct. 3, 1913, Sec. IV, C.

24 Average United States export and Philippine import prices of rice per pound, 1920-1929.

points that encouraged Philippine production and permitted the entry of the necessary import supply into the islands from near-by oriental sources, but did not give the United States sufficient tariff advantage to overcome the combined natural and transport advantages of oriental rice.

Relative Position of the United States and Other Countries in Philippine Import and Export Trade, 1928 and 1929.

During 1929 continental United States supplied 62.92 per cent of Philippine imports and received 75.69 per cent of Philippine exports; far eastern regions relatively near the Philippines supplied 22.27 per cent and received 7.95 per cent, respectively, while European countries supplied 11.89 per cent of the imports and received 14.83 per cent of Philippine exports. These percentages varied but slightly from the year 1928 and indicate broadly that, considering large geographical divisions other than the United States, the largest proportion of Philippine import trade came from relatively near-by oriental points rather than from Europe, but as Philippine export markets these oriental regions were relatively less important than Europe. In 1929 Japan was second to the United States both in supplying Philippine imports and as a market for Philippine exports.

The following tabulation shows percentages of Philippine imports from and exports to the countries and regions leading in Philippine trade during 1928 and 1929.

Proportions of Philippine import and export trade with all countries 1

United States Exports to the Philippines, by Commodity Groups, 1928, 1929.25

During 1930 United States exports to the Philippines increased 0.5 per cent in value over the average of 1923-1928, but decreased 24.1 per cent as compared with 1929. Concurrently United States world exports decreased 17.4 in value, as compared with the average of 1923-1928 and 26.7 per cent as compared with 1929.

In Table 28 a segregation has been made of the value of 109 United States export items and commodity groups shipped to the Philippines during 1928 and 1929, including each item or group amounting to more than $100,000 in 1928, and arranged for convenience of reference in the order of magnitude in that year, with indication of the percentage that each tabulated item and group constitutes of total United States exports to all destinations.

Cotton manufactures comprised the largest group of United States shipments to the Philippines during 1929, with a value of $12,350,754, or 11.10 per cent of total United States exports of this character. Among the items in this group, showing the largest values exported to the Philippines or of which the exports to the Philippines represented the largest percentages of total exports, were the following: Colored and yarn-dyed cotton cloths, $5,773,981, or 11.92 per cent; bleached cotton cloths, $3,574,520, or 33.75 per cent; 26 unbleached cotton cloths, $775,141, or 6.23 per cent; cotton sewing thread, $638,228, or 55.52 per cent. 25

Iron and steel manufactures, except machinery and vehicles, were the second largest group of exports to the Philippines in 1929, valued at $9,965,316, which was 3.47 per cent of total United States exports of this class. Outstanding individual items in this group were: Iron and steel sheets, galvanized, $2,638,728, or 17.88 per cent; tin plate, terneplate, and taggers tin, $916,509, or 3.21 per cent; welded galvanized pipe, $395,885, or 9.92 per cent; metal furniture and fixtures, $366,524, or 4.17 per cent; barbed wire, $366,524, or 4.17 per cent. Industrial machinery comprised the third largest group in 1929, valued at $5,458,752, which was 1.97 per cent of total United States exports of this class. Among the larger values or greater percentages of total United States exports represented by individual items in this group were: Sewing machines for domestic use, $906,884, or 16.67 per cent; locomotives, $244,352, or 5.13 per cent; sugarcane mill machinery, $321,595, or 44.63 per cent; other sugar-mill machinery, $860,924, or 23.17 per cent.

Automobiles, motor trucks, busses, and chassis, except electric, comprised the fourth largest group of shipments to the Philippines in 1929, valued at $4,655,392, which was 1.35 per cent of total United States domestic exports of these classes.

Wheat-flour exports to the Philippines in 1929 were valued at $4,523,191 and represented 5.60 per cent of the total exports of flour to all countries, This single item ranked in 1929 above all other items or groups shown in the table except four, and if instead of comparing it with groups it is compared with single items within the groups it ranks second among all, being exceeded only by colored and yarn-dyed cotton cloths.

26 The trade figures discussed under this heading represent exports of products of the United States excluding reexports of foreign products.

26 Presumably a considerable proportion of American bleached cotton cloth and cotton sewing thread shipped to the Phillippines is reshipped to the United States made up into cotton embroideries.