Beautiful Philippines: A Handbook of General Information

by Philippine Islands. Commission of Independence

XI. The Trade of the Philippine Islands

Background The Philippines are practically alone among tropical countries in having, through a fortunate chain of historical circumstances, a population advanced in civilization and able to become a part of the complicated organization which modern commerce demands. The business machinery of collecting the products from the plantations and getting them to Manila has long been in the hands of Filipinos and in this they are rarely assisted financially by Americans or foreigners. In connection with man power, however, there is a problem very difficult to solve—the scarcity of manual labor—the population of the Islands being insufficient to till their fertile acres and get their products ready for commerce. Probably only time can remedy this.

The stability of the Government of the Islands during a time of growing Filipino participation is a proof to the world that when the time comes for the government to be entirely in the hands of the Island’s inhabitants, both as to internal and external affairs, foreign commerce need not fear for loss of credit or trade, due to any of the great political upheavals which have been so common in other countries which were once colonies but are now independent.

Trade Routes ECONOMIC POSITION.—Lying within thirty-six hours’ sailing from the port of Hongkong, the Philippine Archipelago bears promise of being an important distributing center for goods destined for the markets of the Far East. The ports and harbors have exceptional advantages of anchorage, and port facilities are easily obtained. The islands are close to the main trade route between America and Europe, via the Pacific. They are also close to the route from the extreme Orient to Europe and to the route from the ports of southern Asia to the two Americas. Furthermore, they lie on one of the most promising trade routes between Australia and Asia. Manila, however, is in competition with such ports as Hongkong, Singapore, Saigon, and Batavia, which are in most respects better situated especially for European trade. As regards American bound traffic, however, Manila has the advantage. Feeder lines are actually operated from Singapore to Manila and Zamboanga, and from Batavia to the ports of Mindanao. For goods coming from the United States for the east, direct sailings are conveniently made from the Pacific coast of Canada to the ports of the Philippine Islands, where transhipments can be made for any of the ports of Asia, Japan, India, Singapore, the Dutch East Indies, and even Australasia.

Filipino capital The port of Manila has now a marine terminal that can compare favorably with any in the Orient. There are three piers provided with modern conveniences, and there is a good-sized basin inclosed with strong breakwater. If the development of the Philippine resources, however, should in the future proceed as rapidly as the development during the last decade, and if shipping opportunities generally in the East are taken advantage of, there will be need for a still larger marine terminal and for efficient ship-repairing and dry-docking facilities. But there will always be available sites on Manila Bay.

To emphasize the importance of Manila as a trade center, attention is drawn to the chart of page 146 where a circle, drawn with Manila as a center and having a radius of 1,700 miles, will comprise within its circumference no less than 20 cities of equal importance and would reach a population of no less than 125,740,711, while a radius of 3,500 miles would make the circumference of the circle reach into the interior of Siberia and China to the north, all of India and Colombo to the west, and about two-thirds of Australia to the South.

Filipino capital THE PERSONNEL OF PHILIPPINE COMMERCE.—Before the coming of the Spaniards, the Filipino people were known traders, their interisland life leading naturally to a use of the sea as a means of communication. During the eighteenth and nineteenth centuries trade was controlled by the Spanish residents. The result of limited Filipino participation was a disinclination, through lack of knowledge and practice, to engage in trade, and it is only within the last few years that Filipino business men have been an appreciable factor. Dozens of enterprising and well-educated young men are now venturing into business. Filipino capital has hitherto been invested in great estates; the millionaires of the Islands with few exceptions have obtained their incomes from rentals and produce. All that is rapidly changing; oil companies, shipping firms, and importing houses are now financed by Filipino capital and managed by Filipino brains; but Filipino participation in the trade of their country has not yet assumed commanding proportions.

Foreigners The people of all the great trading nations have established houses in Manila and have a vital part of the Islands’ commerce, transacting a considerably greater proportion of the foreign trade. Of these, Americans are, of course, the most numerous, having as a basis the political bond between the two countries. A large part of these are ex-Government employees, who saw the opportunities for business development during their terms of service in the Insular Government.

The British probably occupy second place, though the Spaniards and their descendants in the Islands are important factors, their houses handling every branch of import and export trade. The British firms are for the most part long established, and their trade has the strong aspect characteristic of British trade the world over. They specialize in the export of the staples hemp, sugar, and tobacco. The French and Swiss have houses, which were here prior to American occupation. The Japanese are a new element; they have of late been invading every branch of commerce, with increasing momentum. Millions of Japanese capital are being invested in the basic industries of the Islands, and each month sees the incorporation of new companies. The post-war depression, however, has reduced their number and commercial activities very materially.