AMERICA’S MONOPOLY IN PHILIPPINE TRADE.—The old saying that “trade follows the flag” has held true in the Islands. At the time of the American occupation a very small portion of the Islands’ commerce was with the United States; now it is about two-thirds, seven times that of any other country.

In the beginning, the growth was slow, and what growth there was, was due to the increasing American civil population. The few American houses were young and struggling with inexperience and lack of capital. The older foreign houses, with their branches in the provincial centers and established clientele, had a very strong hold on import trade.

Effect of Free Trade In 1909 a tariff law providing for reciprocal free trade between the United States and the Islands was passed, with a few limitations which were removed in 1913. Immediately following the passage of this law American goods sprang to the fore and trade increased threefold from 1909 to 1912, $24,000,000 worth having been imported in that year.

MEDIUMS OF TRADE.—Generally speaking, there are three methods by which goods coming from foreign countries are brought to consumers in the Archipelago.

Some manufacturers establish branches throughout the Islands and sell only their particular line. For others having a smaller volume of trade various commission and indent houses stand ready to handle their goods together with other lines. Still other manufacturers having a large volume of business in the Islands transact business thru a branch or agent direct without any intermediary.

TRADE WITH OTHER COUNTRIES.—The following table shows the volume of trade between the Philippines and the other countries of the world for the years 1917 to 1922:

Total trade (imports and exports) by countries for the years ended December 31, 1917–1922

Countries 1922 1921 1920 1919 1918 1917
Pesos Pesos Pesos Pesos Pesos Pesos
United States 223,699,852 248,973,616 395,012,081 264,288,213 295,932,059 201,710,012
Hawaii 1,199,666 2,404,761 4,310,625 4,584,195 958,872 968,859
Porto Rico 159
Guam 279,929 344,211 223,304 198,134 522,822 208,494
United Kingdom 16,788,965 17,892,548 34,559,572 37,111,249 44,492,810 26,532,640
Austria-Hungary 298,425 353,670 23,305 391 1,633 2,063
Belgium 1,187,310 719,089 812,910 915,390 474 43,606
Denmark 49,800 86,745 103,098 36,667 40,810 87,417
France 4,519,468 7,812,258 5,828,482 11,423,798 4,097,446 4,506,617
Germany 7,934,643 7,429,125 2,787,824 733,882 65,215 321,879
Italy 984,018 469,804 663,707 337,104 378,305 427,312
Netherlands 5,670,345 10,859,875 7,292,425 17,213,031 90,927 176,910
Spain 7,467,255 9,548,425 12,878,951 9,728,135 7,860,335 4,881,013
Norway 124,795 39,105 10,539 37,610 15,475 29,858
Switzerland 1,510,333 1,875,403 1,890,888 1,347,920 1,215,741 1,120,127
Canada 2,320,070 1,236,079 2,007,190 481,439 1,400,341 1,119,188
China 17,786,205 24,054,116 25,915,481 21,884,855 19,652,486 12,839,167
Japanese-China 748,000 317,378 90,597 435,731 221,431 339,971
British East Indies 4,558,247 5,373,683 9,645,447 7,592,592 7,031,771 4,339,107
Dutch East Indies 5,569,494 5,813,437 5,524,312 8,242,028 2,662,846 2,490,819
French East Indies 6,191,832 6,516,898 10,226,884 10,456,432 16,560,839 11,309,048
Hongkong 5,664,825 10,146,269 14,960,216 14,882,990 10,129,983 11,154,093
Japan 28,964,902 35,094,966 47,064,272 37,285,086 42,144,920 31,088,379
Siam 466,336 4,196,598 8,733,450 2,637,467 2,439,348 753,449
Australasia 7,105,550 5,835,955 10,199,782 10,668,854 8,873,767 5,977,807
British Africa 50,936 72,990 145,457 402,018 161,063
French-Africa 35,975
All other countries 348,663 249,812 845,106 384,283 213,776
Totals 351,561,885 407,907,793 601,124,276 463,513,756 467,587,387 322,802,674

The values of imports and exports and the trade balance for each year, from 1913 to 1922, follow: