text:
Manuel L. Quezon's Second State of the Nation Address

Mr. Speaker, Gentlemen of the National Assembly:

At no time in ancient or contemporary history has Almighty God showered His blessings upon our beloved country as generously as He has done during this year that is about to close. In a spirit of humility and thankfulness to Him, I come to report to you that the finances of the Government are sounder than they have ever been, that our foreign and internal trade has increased, that more school houses and roads have been built and opened to the people, that public health is in good condition, and that peace and order prevail in every province, city, municipality, and barrio of the Archipelago.

In this year too, as the highest representative of our people, I have taken a step that is of the greatest moment to the Fatherland. In my recent trip abroad I proposed to the President of the United States that he recommend to the Congress the granting of complete independence to the Philippines either on the 30th of December 1938, or the 4th of July, 1939.

I feel certain that in making this petition I have expressed the views of the immense majority of our people and that it is better for us to be independent now, that is to say, as soon as the necessary steps could be taken for the orderly process of erecting an independent Republic, rather than in 1946.

I can see no valid reason why, if the Philippines can be given independence in 1946, she may not have it in 1938 or 1939. In the short span of seven years the Filipino people can hardly do anything that would substantially change their present situation. Any obstacle which would vitally affect the chances of a successful and lasting independent nationhood in 1939 cannot be overcome by 1946.

So, if we want independence at any cost and are ready to take all the consequences –the dangers as well as the advantages of independent national existence- let us have it no later than 1939. If, however, we are fearful of the possible threats that complete independence may offer to our national security, and we would rather remain under the protecting wing of the United States, then let us leave the final determination of our future to come coming generations and not deceive ourselves with the groundless hope that by 1946 we shall have become politically and economically beyond any serious difficulty.

We cannot be hesitating indefinitely. The best interest, indeed the very life, of the nation is at stake. If it is our resolve to be an independent nation, this is the time, for every year lost is to our evident disadvantage.

Our duty –the duty of the Executive and Legislative branches of the government- is plain. Under the Independence Act and the Constitution, the Government of the Commonwealth has been established to prepare the country for complete independence. Our people alone, by their own choice and direction, can command us to take a different course.

Since the news of my proposal to have the transition period shortened was published, voices in opposition to it have been heard both in public and in private. Let me say in all earnestness to those Filipinos who believe in good faith that the security, liberty, prosperity, and peace of our common country lie in some kind of political partnership with the United States rather than in complete independence, that they should say so frankly and come out courageously in the open with an alternative plan, instead of merely adopting dilatory tactics in the belief that when the fourth of July, 1946, shall have arrived, some unforeseen event will prevent the establishment of the Philippine Republic. They have nothing to fear: there is here freedom of thought and of speech, and one may be as much a patriot advocating some other political status for the Philippines as favoring complete independence so long as in advocating he is inspired not by selfish motives but by what he honestly believes is for the commonweal. As long as the essentials of freedom are not sacrificed –and they must not be sacrified under any consideration- the formula for securing and enjoying it may well be debated upon.

It is true that from the point of view of a foreigner who does not intend to remain in the Philippines after independence shall have been granted and who is contemplating to liquidate his interests in this country, the remaining seven years may, perhaps, give him the opportunity to withdraw his investments. But, is this a sufficient reason to postpone the grant of independence if, on the other hand, it would be to the best permanent interests of the Filipino people to accelerate its grant? Is the future well-being of a whole nation to be sacrificed for the benefit of a few foreigners? Do these foreigners have any right to a special consideration?

From the very first day of America’s occupation of the Philippines, she disclaimed any intention to permanently hold these Islands. Neither did she, in thus announcing to the whole world her intentions, ever give any promise either directly or by implication that she would not withdraw her sovereignty from her newly-occupied territory at a moment’s notice. Therefore, foreigners who had investments in the Philippines when the United States took possession of the Islands, as well as those who came thereafter, knew full well that they were not placing themselves under the protection of the American flag except for as long a time only, and no longer, as the Government of the United States decided to retain the Philippines.

With more reason should these foreigners have known that the days of American sovereignty were numbered when, in 1916, the Jones Law was enacted, for it was solemnly and clearly declared in that law that the Philippines would be granted her independence as soon as a stable government could be established in this country. Since the question of the stability of a government is a matter of opinion, and in the case of the Government of the Philippines, the Congress alone has the right to determine the question, that pronouncement in the Jones Law was tantamount to a formal notice to all concerned that the United States might, at any time, leave the Islands to their own fate.

It is true that when the Independence Act was approved by the Congress in 1934, it was specifically provided therein that complete independence would be granted ten years following the inauguration of the Government of the Commonwealth; but the reports of the respective Committees and the speeches delivered upon the floor of both Houses of the Congress clearly show this was not a commitment addressed to foreigners having investments in the Philippines, but only to the Filipino people who, in the opinion of the Congress, might be seriously injured economically if their trade relations with the United States were abruptly terminated. If the Filipino people themselves are willing to have the date for the granting of independence advanced, there is nothing, expressed or implied, in the Independence Law that denies them the right to ask the Congress to shorten the transition period.

My main reason for asking that the independence of the Philippines be granted not later than the 4th of July, 1939, is that I am sincerely of the opinion that it will be to our best interests to secure independence during and under the administration of President Roosevelt. I know the President, his progressive and liberal ideas, his very deep sense of justice, and his friendship for and good will towards the Filipino people. I have no doubt that under his leadership we will receive from the Government of the United States the fairest treatment that we may ever expect to receive under the leadership of his successors. And if the Philippines were to become independent not later than the fourth of July, 1939, President Roosevelt would still have more than one full year to extend his helping hand to the new Philippine Republic in the early stages of its dealings as an independent nation both with the United States and the rest of the world. We could, indeed, find no better sponsor than President Roosevelt to usher the Philippines into the family of free nations.

Moreover, the experience of the last two years has shown that, although the avowed purpose of the ten-year transition period is to stabilize the trade relations between the United States and the Philippines, as provided in the Independence Act, so as to give the Filipino people a basis for making readjustments in their national economy preparatory to the change that complete independence would bring with it, there were tendencies in Congress to disregard the terms and conditions governing said trade relations even against the will of the Filipino people.

In proposing to President Roosevelt that he recommend to the Congress the shortening of the period for the grant of independence, I also asked that the present trade relations between the United States and the Philippines be continued for at least ten years after independence. If this were done and made a part of a treaty between the Government of the United States and the Philippine Republic the trade relations between the two countries would have been placed on a stable basis during the life of the treaty.

I know that there are people who believe that these trade relations only benefit the Philippines at the expense of the American people. As far as I am concerned, I would never ask from the United States anything that we could not reciprocate in kind. If U advocate the temporary continuance of the present trade relations between America and the Philippines it is because I am convinced that these trade relations are mutually beneficial to both countries.

There is another vital reason why the date for the granting of independence should be advanced. The present political set-up is untenable in that while America retains her sovereign authority over the Philippines, she, at the same time, has placed in the hands of the Filipino people the responsibility for laying down the foundations and erecting the structure of the Philippine Republic. The continuation of her sovereignty over the Philippines imposes upon America obligations she cannot shirk, and, correspondingly, it gives her rights that are incompatible with the free exercise of our judgment as to the best means that we should adopt to prepare ourselves for an independent national existence. Conflicts of views, and perhaps of interests, may arise during the coming next eight years that may create misunderstanding and ill-feelings between the American and Filipino peoples and mar the unprecedented record of perfect cooperation and goodwill between two dissimilar races which Fate has thrown together temporarily. As long as America was the sovereign authority and reserved for herself and exercised full power over, and assumed exclusive responsibility for, the Government of the Philippines, there was no occasion for conflict. Her word was then final in all matters of public policy, and our duty was merely to cooperate with her, as we did cooperate under her authority and direction.

Upon the establishment of the Government of the Commonwealth, however, the situation has changed materially. By an Act of Congress, we were given power to create our own government, controlled and managed by us, under a Constitution of our own making. It was the plain purpose of the Congressional enactment that the Filipino people, who were to become automatically independent in 1946, would, during the Commonwealth period, take such steps, as in their opinion would best ensure the stability and success of the Philippine Republic. Yet, the powers granted to the Government of the Commonwealth in the most important and essential functions of government, such as those affecting trarrif, currency, finance, immigration, or those which in any way might involve the international obligations of the United States, etc., were subject to the ultimate approval of, or revocation by, the President of the United States.

It must be recognized, on the one hand, that America cannot, in fairness to herself, concede more governmental powers to the Commonwealth than she has granted without endangering her own interest and peace, nor on the other hand, can the Filipino people assume responsibility for their due preparation for independence with only such limited powers as have been vested in the Commonwealth Government. In this predicament, it were better for America and the Philippines to be independent of each other so that each may be free to act in the furtherance of her own national objectives and interests.

We have been fortunate indeed that so far the representatives of the President of the United States in the Philippines have been men of the highest character and integrity, of broad statesmanship, and of a clear vision of the task entrusted to them. You all know former High Commissioner Frank Murphy. His relations with us, not only as High Commissioner but also as Governor-General, have been very close and most cordial. In both capacities he has rendered permanent service to our people. In my last trip to America he has proven to me that his interest in our liberty and well-being is abiding.

The present United States High Commissioner has been but a few months in our midst. Some of his early acts were misrepresented or misunderstood. For a time there were some misgivings on the part of our people as to his attitude towards them and this Government. But nothing can dispel misunderstandings quicker than personal contact.

It is my pleasure and my duty to report to you –and what I am going to say is no mere gesture of official courtesy, but an honest and straight talk- that I could wish for no better United States High Commissioner in the Philippines than His Excellency, Paul V. McNutt. He measures up to his exalted position, both as an official and as a man. Indeed, it is a very difficult choice to make between Mr. McNutt, the man, and His Excellency, the High Commissioner.

Since my return, we have had some difficult problems to settle and I had occasion to appraise the true measure of him who now represents the President of the United States in the Philippines. He deserves our respect and affection. The best spirit of mutual cooperation characterizes our official association, and we have also become good friends. I feel confident that in serving his government and his country, High Commissioner McNutt will be of invaluable help to the Filipino people.

Happy and fruitful as our association with the American High Commissioner has been, I must state in all candor that these two short years of the life of the Commonwealth have already revealed some signs of the possibility of a serious conflict between the High Commissioner and the President of the Philippines in the performance of their respective duties even if each were desirous of avoiding such conflict. Perhaps there will always be found a way to arrive at some reasonable compromise as long as President Roosevelt is at the head of the American Government, and if his representative in our country were of the caliber of the two High Commissioners we have had until now; especially if the President of the Philippines understood American psychology and realized America’s difficult situation during this twilight period of our nationhood. But who can foretell what will happen if another President should be in the White House, or a less sympathetic man should represent the President of the United States in the Philippines, or a Filipino President should be one entirely foreign to American ways or one-sided in his views of American-Filipino relations? The only sure remedy to this dangerous situation is to terminate it with the least possible delay.

No better evidence could have been given by President Roosevelt of his deep concern for the future welfare of our people than by the appointment of the Joint Preparatory Committee which is now sitting in conference in our country.

The following statement given out jointly by Mr. Sayre, Assistant Secretary of State, as Chairman of the Inter-Departmental Committee on Philippine Affairs, and myself on March 18, 1937, gives a complete idea of the reason for, and the object of, the creation of this Committee:

“Arrangements are being made for the appointment shortly of a joint preparatory committee of American and Philippine experts. The committee is to study trade relations between the United States and the Philippines and to recommend a program for the adjustment of Philippine national economy. This announcement followed conferences between President Quezon of the Philippine Commonwealth and the Inter-Departmental Committee on Philippine Affairs, which is acting on behalf of President Roosevelt in the preliminary discussions. Assistant Secretary of State Francis B. Sayre is Chairman of this Committee.

“Inasmuch as the Independence Act provides that complete political independence of the Philippines shall become effective on July 4, 1946, and inasmuch as President Quezon has suggested that the date of independence might be advanced to 1938 or 1939, it was agreed that the joint committee of experts would be expected in making its recommendations to consider the bearing which an advancement in the date of independence would have on facilitating or retarding the execution of a program of economic adjustment in the Philippines. It was further agreed that the preferential trade relations between the United States and the Philippines are to be terminated at the earliest practicable date consistent with affording the Philippines a reasonable opportunity to adjust their national economy. Thereafter, it is contemplated that trade relations between the two countries will be regulated in accordance with a reciprocal trade agreement on a non-preferential basis.”

The members of the Joint Committee appointed by the Inter-Departmental Committee with the approval of President Roosevelt and by me are the following:

His Excellency, the United States Ambassador to Turkey, Hon. John Van A. MacMurray, Chairman of the Committee.

American Group	Philippine Group Joseph E. JacobsVice Chairman of the Committee and Chairman of the American Group. Mr. Jacobs is Chief of the Office of Philippine Affairs, Department of State.

Jose YuloVice Chairman of the Committee and Chairman of the Philippine Group. Mr. Yulo is Secretary of Justice of the Philippine Commonwealth.

Louis DomeratzkyChief, Division of Regional Information, Bureau of Foreign and Domestic Commerce, Department of Commerce. Conrado BenitezDean, College of Business Administration, University of the Philippines. Lynn R. EdminsterChief Economic Analyst, Division of Trade Agreements, Department of State. Joaquin M. ElizaldeMember of the National Economic Council. Col. Donald C. McDonaldAssistant to the Chief, Bureau of Insular Affairs, War Department. Quintin ParedesResident Commissioner for the Philippines. Carl RobbinsChief, Sugar Section, Agricultural Adjustment Administration, Department of Agriculture. Jose E. RomeroFloor Leader, Majority Party in the National Assembly. Frank A. WaringSenior Economist, United States Tariff Commission. Manuel Roxas Floor Leader, Minority Party in the National Assembly.

Ben Dorfman of the United States Tariff Commission and Benito Razon, Economic Adviser to the President, were later on appointed to the Committee as alternates.

This Committee held hearings in Washington, San Francisco, and Manila; and it also visited most of the provinces of the Philippines to secure first-hand information that would be valuable to the members of the Committee in making their report and final recommendation on the task entrusted to them.

After this Committee shall have submitted its report, it is my purpose to reiterate my petition that the granting of complete independence to the Philippines be advanced either to the 30th of December, 1938, or to the 4th of July, 1939, unless the National Assembly, during its present session, should express a contrary opinion.

Social Justice

Let me now turn your attention to our most immediate economic and social problems. The Philippines has undoubtedly made great strides both in the field of politics and of economics during the last three decades. Politically, we have reached the point where we are –having an almost entirely autonomous government and the assurance of complete independence. Economically, we have become an important factor in American commerce; our foreign and domestic trade has multiplied –in a word, the national wealth has greatly increased. We have accomplished, too, considerable progress in sanitation, in education, in the construction of roads and all kinds of communications, and we have acquired the modern conveniences of life. But the main beneficiaries of this most remarkable progress are the rich and the middle class. The rich can live in extravagant luxury. Some of their offspring grow up in an atmosphere of ease, with an outlook on life which gives paramount important to society affairs, vanities, trivialities and material possessions, devoid of discipline, love for work or human sympathy. The middle class have attained a higher standard of living as compared with that prevailing during the Spanish regime. The comforts of present-day civilization are within their reach and they are enjoying them. Their sons and daughters are better-fed, better clothed, better educated –thousands upon thousands of them are now receiving the benefits of higher instruction.

Sad to tell, but it is none the less true, the same cannot be said of our laboring population. The men and women who till the soil or work in the factories are hardly better off now than they were during the Spanish regime. Of course, wages are higher than in any other Oriental country, with the possible exception of Japan. But it should be remembered that money could buy more in those Spanish days than it can now; and furthermore in the relationship between employer and employee in the days of old there was a consideration of higher value to the employee than the monetary compensation itself. Of yore employers and employees lived in personal contact and association resembling that which exists amongst members of the same family so that ties of affection bound them together much more than material considerations. Now this no longer obtains for their relationship is almost as impersonal and detached as that existing between employers and employees in highly industrialized countries. Again, our ancestors, because of their greater ignorance, knew no better and were resigned to their hard life, believing that it was a part of the world order as decreed by Divine Will, so that the unfortunate sufferer may meet with a greater reward in Heaven.

Now the Filipino workingman, however illiterate, refuses to believe that the Creator of the Universe could have ordained that some of His creatures should live in luxury and plenty, while others, in destitution and misery. The Filipino laborer now knows that the Father of mankind loves him as much as every other human being, and, therefore, that the world has not been made for the benefit of a few, but for the happiness of all.

Still more: The Filipino workingman has heard, if he is not able to read, of the equality before the law of the poor and the rich. He has heard of democracy, liberty, and justice, since every candidate for an elective office discourses on these topics, painting to him in glowing terms the meaning of these words.

And yet, what does he actually see? How do these doctrines that he has heard propounded from the platforms affect his everyday life? His hopes have been raised, his vision has been broadened, and his outlook has been painted in bright colors. But thirty-five years of American regime has brought him only disappointments and, sometimes, despair.

Has the progress then made by the Philippines benefited our poorer population? Rhe poor still has to drink the same polluted water that his ancestors drank for ages. Malaria, dysentery, and tuberculosis still threaten him and his family at every turn. His children cannot all go to school, or if they do, they cannot even finish the whole primary instruction for one reason or another.

Roads from his barrio or his little farm to the town there are none. Only trails are within his reach –trails that have been formed by the daily pressure of his bare feet and not because they have been constructed. As he works from sunrise to sundown, his employer gets richer while he remains poor. He is the easy prey of the heartless usurer because usury is still rampant everywhere despite legislative enactments intended to suppress it.

That is, concisely speaking, the lot of the common man in our midst, after America’s long endeavor to give to all fair opportunity in the pursuit of happiness and the enjoyment of life.

It was, of course, impossible for American administrators to see and reach the lowest strata of our population. But now that the reins of government are in our hands in so far as our own domestic affairs are concerned, what excuse, what reasonable justification can there be in allowing such a social and economic order to continue?

It is high time that all the branches of this Government cooperate with one another, and with them the whole community and every good-hearted man and woman, so that at last in this dear land of ours social justice –real justice- in the relations of man to man, may reign supreme.

Our people are patient and law-abiding. They love peace. They have not lost their faith either in the executive, the legislative, or the judicial branch of the Government. As the Government is now in the hands of their own countrymen, they have become hopeful and are placing the realization of their dream for a better day in our clearer understanding of their lot, our better knowledge of conditions prevailing in the country, and in what should be the natural craving of our hearts to serve them with all the power at our command –they who are flesh of our flesh and blood of our blood.

The promotion of social justice by the State is a clear and categorical mandate of our Constitution. Our platform, the platform upon which you and I have been elected, imposes upon us the high duty of enacting measures that will improve the living conditions of the laborer and of carrying these measures into effect. We must see that laws are enacted which will not permit the exploitation of the employee by his employer and which will leave no loopholes that may be used to defeat the ends of justice. We must rely for the security of this new nation, not so much upon the might of brute force, but upon the undivided loyalty of every citizen to the Government –a loyalty founded upon individual consciousness that this Government is his, and that it exists only for his protection, for his liberty, and for his happiness.

Both the Department of Justice and the Department of Labor are ready to help you in the preparation of the measures that are required to fill the gap that may be found in our existing legislation, for the purpose of correcting prevailing social evils and of carrying into effect the provisions of the Constitution as well as the commitments in our platform.

The Proceeds of the Excise Tax on Oil

Fortunately for us a new source of income has come to our hands that will facilitate the carrying out of our program of social justice and economic readjustment. From the proceeds of the excise tax on oil there has been accumulated up to the end of June, 1937, the sum of P96,507,227.30 in the Federal Treasury, the transfer of which amount to the Treasury of the Philippines I had secured before I left America on my last trip. This sum is now available for appropriation, the understanding with the Treasury Department of the United States being that out of that fund, P10,000,000 will be available upon thirty days’ notice and the balance upon ninety days’ notice.

The final decision as to how this fund shall be spent is, of course, yours. But in the exercise of my constitutional prerogative I shall take the liberty of making some suggestions regarding the purposes for which this money should be spent.

The first thing that we must bear in mind is that this fund does not constitute an ordinary income of the Government upon which we may depend for recurring obligations. When independence shall have been granted, this source of our income will cease. Were we to defray from this fund services that we cannot maintain once this income is terminated, we would have thrown away the money thus spent. We must, therefore, limit the use of this fund for national objectives, for purposes where the greater good may be derived by the Filipino people.

Concretely, I recommend that this fund be devoted to the following purposes:

1.  To improve sanitary conditions of centers of population by constructing water systems or artesian wells.

2.  For combating malaria where there is assurance that it can be done at a reasonable expense.

3.  For the prevention of tuberculosis and the establishment of more sanitoriums, as it is well known that the white plague is the worst scourge afflicting our race.

4.  For the building of new leprosariums which will permit lepers in the early stage of the disease to be treated where they may be easily reached by their families, thus making their isolation less tragic.

5.  For extending free dispensary service to the poor not only in centers of population but also in outlying barrios and communities.

6.  For building public schools in every barrio where there is a sufficient number of children justifying the opening of the school.

In this connection, I desire to state that it was with great reluctance that I vetoed the bill passed in your last sessions appropriating funds for school buildings. A subcommittee of the Committee on Public Instruction came to see me to secure my approval to a measure that would appropriate P5,000,000 for school buildings even before approving the regular budget of the Government. The Department of Public Instruction is now ready to furnish you with all the necessary information.

The Constitution imposes upon the Government of the Philippines the duty to give every boy and girl of school age the opportunity to receive primary instruction. As soon as there are sufficient school buildings to accommodate all the school-age population of the Philippines and permanent means for supporting the schools have been created, there should be implanted here, in my opinion, compulsory universal primary instruction. In the meantime we should make it compulsory for every boy and girl who is now in our public schools, and those who may be admitted next year and thereafter to remain in school during the period required for the entire primary instruction. Means should be immediately provided to carry this policy into effect.

One of the discoveries which we have made since the establishment of the Government of the Commonwealth is that, despite the large number of children that have gone through our public schools, as shown in the reports of the Bureau of Education, the literacy of the Islands has not increased proportionally, and the knowledge of those rudimentary subjects which the citizen of a democracy should have, has not been acquired by a population corresponding to the number of children that appear to have entered the public schools. The reason for this is simple. A large proprtion of the boys and girls who have been admitted to the schools have not remained long enough to acquire any kind of useful knowledge.

7.  For opening national highways and helping in the construction of provincial and even barrio roads whenever the respective provinces and municipalities pledge themselves to maintain the roads thus constructed, and in the case of barrio roads, where the volume of traffic on said roads also justifies their construction.

8.  For the construction of office buildings for the National Government so as to reduce, if not eliminate, the continuous expense in rents.

9.  For the purchase of large landed estates and their resale in small lots to the actual occupants thereof.

We are committed to the policy of acquiring the haciendas which, in the opinion of the Government, should be subdivided in small lots and resold to the tenants actually working on said lots. In a message to the National Assembly in its first regular session, I stated that we were not in a position to redeem this pledge, not only because we had no funds with which to purchase these estates, but also because I feared that we would only be transferring the trouble faced by the owners of these estates to the Government itself. Since then we have come into this fund accruing to the Commonwealth from the processing tax on oil, and I deem it proper and wise to use a part of it for the acquisition of these haciendas. In order that the Government may accomplish its objective more completely this time than when it brought the Friar lands, I have appointed a committee to study the whole question in its varied aspects with instructions to submit it recommendations not later than November 15, 1937. As soon as the committee submits its report, I shall refer the same to the National Assembly for such action as you may deem proper and expedient in the light of the recommendations therein contained.

10.               For the development of water power, the reforestation of denuded areas, the colonization and development of Mindanao; and

11.               For the financing of a long range program of economic adjustments necessary to prepare the country for the new situation attending the grant of our independence, including the establishment of new industries which at the same time will give work to the unemployed.

It is expected that the Joint Preparatory Committee on Philippine Affairs will include in its report a well considered program of economic adjustments to supplement its recommendation on future American-Philippine trade relations. As soon as this report has been received by me it will be immediately submitted to you for your consideration.

Gentlemen of the National Assembly, before closing, allow me to emphasize the need to of giving the common man in the Philippines the benefits that the citizenry of every progressive democracy is entitled to receive. I am sure that every one of you will give to this noble task the best that is in him. An opportunity has been offered us that no past or coming generation has had or will ever have –that of creating a nation where there will be no privileged class, where poverty will be unknown, where every citizen will be duly equipped with the knowledge that will enable him to perform his duties and to exercise his rights properly and conscientiously, and where every man, woman, and child his fireside will be thankful to God for living in this beautiful and blessed land.

Manuel Luis Quezon


text:
The New International Encyclopædia/Hajji Baba of Ispahan

HAJJI BABA OF ISPAHAN, hä'jḗ bä'bȧ ŭv ĭs'pȧ-hän',. A romance by J. J. Morier (1824). It is an Oriental Gil Blas, revealing a world of humorous insight into life in Persia. The Persian Minister to England is said to have remonstrated in behalf of his Government against its satire and plain speaking.

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


text:
Manuel L. Quezon's First State of the Nation Address

Mr. Speaker, Gentlemen of the National Assembly:

Seven months ago this Commonwealth was inaugurated amidst the general rejoicing of our people, and with misgivings on the part of some timorous individuals. Today the Government of the Commonwealth counts with the confidence and respect of all. True, there are still a few prophets of disaster, but these need not seriously disturb us, for it is evident that it is only their wish that is father to their forebodings.

Our Relations with America

Under the provisions of the Independence Act incorporated into our Constitution, the Government of the United States retains direct control and supervision over our foreign affairs, as well as certain specific powers in a few cases of domestic character. These powers are vested in the President of the United States whose representative in the Islands is the United States High Commissioner. My personal and official relations with High Commissioner Frank Murphy have been most cordial, and the highest spirit of cooperation has characterized the transactions of our Government with the Washington Administration.

It was with a deep sense of loss that our people saw High Commissioner Murphy depart for the United States and it is their hope that he will soon return to the Philippines.

The Gold Reserve Funds and the Excise Tax on Oil

It is with regret that I have to inform you that the Senate of the United States has passed a bill repealing the Act recognizing the equity of the Philippine Government on the sum of P47,000,000 arising from the devaluation of the dollar as a reimbursement for the depreciation of our reserves deposited in the United States. Were this bill to pass Congress, our Government would be made to incur a loss or that American officials have done contrary to the recommendation of Filipino representatives. I have not, however, given up the hope that the House of Representatives will not follow the action of the Senate, for I cannot conceive that America, which in this case acted as the guardian of Filipino interests, should want to profit from the losses of her ward. I know that High Commissioner Murphy has done and is doing everything he can to secure this fund for the Philippines.

Again there are attempts to enact legislation reverting to the Treasury of the United States the proceeds of the excise tax on coconut oil imported from the Philippines. The amount of collections is now around P56,000,000 and is deposited in the United States Treasury. Payment to the Government of the Philippines in accordance with the law has been suspended in view of cases pending in the courts contesting the validity of the law. It is my earnest belief that Congress will not approve the proposed legislation above referred to. Heretofore, whenever the Congress of the United States has taxed goods or products imported into the United States from the Philippines, invariably it has provided the payment of all collections to our Government. It is, therefore, beyond my comprehension that at this stage of our relations with America that record of fair dealing and justice should be reversed. We are also counting upon the help of Commissioner Murphy and other friends in Congress to prevent the enactment of the said law.

Our Foreign Population

I am happy to be able to inform the Assembly that the foreign population of the Islands has, since the inauguration of the Commonwealth, shown a genuine desire to cooperate with our people to make this government a signal success.

Much has been printed in the local and foreign papers regarding the ownership of large tracts of land by Japanese subjects in Davao. There is an impression that Davao is actually owned by the Japanese. Such is not the case.

The total area owned, leased and/or cultivated by the Japanese in Davao is about 60,000 hectares out of almost two million hectares that constitute the total area of the public domain in that province. It is true that Japanese investments in Davao are considerable, and that there are doubts expressed as to the legality of some of the transactions entered into between Filipinos and Japanese regarding the public domain leased to Filipinos by the Government. In these cases the Government will act in accordance with law and equity. Before any course of action is finally decided upon by the Administration, I shall advise with the Assembly and take no step without your previous knowledge. There is nothing in the so-called Davao problem that should cause serious concern.

Peace and Order

The country has never been entirely free from armed bandits or outlaws as it has been during the last four months. At the beginning of the present administration there were two armed bands which had been marauding in the Provinces of Laguna and Tayabas for some time, and there was at large one notorious bandit in the Province of Lanao who for many years had been terrorizing that district with murders and robberies. Two hours after my inauguration as Chief Executive I had a conference with the governors of Laguna and Tayabas and the Chief of Constabulary, and I instructed them to spare no effort in the capture or extermination of these outlaws. Soon thereafter the Lanao bandit having resisted arrest was killed by the Constabulary and within two months every members of the armed bands in Laguna and Tayabas had been either captured or killed. However, there is still the danger of possible sporadic public disturbances like the uprising of the Sakdalistas which took place a year ago last May. Professional demagogues who make their living by exploiting the patriotism of the uninformed or the real or fancied grievances of the discontented, are exciting the masses with incendiary speeches and literature. Communism has also been active during the last few years and while its propaganda has not been particularly effective the forces of law and order have to be constantly on guard. There is not, of course, the slightest danger of any general uprising, but we cannot allow any serious disturbance of the public order to take place. One of the few cases which may give occasion for American intervention is the failure of the Government to preserve order and to protect life, property, and individual liberty. The world is watching this experiment in Filipino self-government, and the confidence and respect which in the future the nations may have in the Philippine Republic will depend in large measure upon our ability to maintain peace and order and to extend effective protection to all the residents of the Islands during the transition period. Knowing as I do the great superiority of the forces of the Government over any misguided group that may be induced to armed revolt, it causes me anguish to think that under my administration the armed forces of the government may be compelled to take such drastic measure as would exact a greater toll of life than during the Sakdalista uprising. From every point of view, therefore, it is better that preventive measures be taken, and it is my earnest hope that the National Assembly will not delay the enactment of appropriate legislation to this end.

Social Justice

While the Government cannot compromise with public disorder, it is equally its duty to right social injustices. That our laborers in the farm as well as in the factories still suffer from long-standing unfair practices, no one can successfully deny. These injustices, however, cannot be remedied by merely applying here legislation in force in other countries. For such legislation would not take into account local conditions, nor the incipient stage of our industrial life and the almost primitive state of our agriculture. Government administration is a practical question and statesmanship consists in the wise application of sound doctrines bearing in mind the actual conditions that have to be met with in each case. Even the most up-to-date progressive labor legislation, if not in keeping with the prevailing conditions here, may easily upset our existing industries, preventing the establishment of new ones, and retard the advance of our agriculture. I, therefore, advocate a policy of progressive conservatism based upon the recognition of the essential and fundamental rights of labor.

The Philippine Legislature has in the past enacted several measures for the protection of labor, but while they have improved somewhat the lot of the workingman to the extent that the Filipino laborer enjoys more rights and privileges than his brother in other Oriental countries, it is necessary that we should go further and give better and more effective protection to the rights and interests of our wage-earners. I would, therefore, urge the enactment of a law authorizing the creation of boards of arbitration to settle questions of labor, minimum wages, working conditions, and other matters affecting their relations.

With the passage of the Tenancy Law, it was believed that the relationship between the landowner and tenant could be maintained on a fair and satisfactory basis. Although the legislation has been in the statute book for several years, I do not know of a single locality which has put it into effect, as its enforcement in any province was made dependent on an affirmative resolution of the majority of the municipal councils of that province. There is now more discontent and social unrest among the farm laborers than among the industrial workers. I believe this situation will be materially improved by the enactment of the Arbitration Board Law to which I have referred.

The large landed estates or “haciendas” offer a different problem. This administration, by the Coalition platform, is committed to the policy favoring the acquisition of these estates at a fair and just price, so they may be sold in small lots to the tenants. I regret to state that after a careful study of this question, I have reached the conclusion that such a step would not remedy the situation nor could it be carried out without exposing the country to great financial losses.

Immediately after assuming office, I instructed the Department of Labor and the Department of Agriculture and Commerce to give me the necessary information so that I might recommend to the National Assembly at this regular session the purchase of these landed estates or “haciendas” and their subsequent sale to the tenants. Both Secretaries of said Departments have personally investigated some of the outstanding controversies between some of the “haciendas” and their tenants, and I have also taken part in one of those investigations. I have likewise studied the effects of the purchase of the so-called friar lands.

It is now my earnest conviction that the purchase of these “haciendas” by the Government will not solve the agrarian and social problems existing therein, but will only transfer to the Government the difficulties which the tenants now have with the present landowners.

The friar lands were acquired by the Government for the purpose of reselling them in small parcels to the men who were working on these lands; but, for several causes, the result has been that a large area of these “haciendas” is now in the hands of other people. The lot of the former tillers of these lands has not in the least improved. The investment, therefore, of several millions of pesos by the Government in the purchase of the friar lands has only been, with few exceptions, for the benefit of people not contemplated by the Government. The latest report I have is that in this transaction the Government lost heavily. If the Philippine Government lost then when the price paid for the friar lands was relatively low, it is evident that now, that the price asked for these “haciendas” is very much higher, the Government is bound to suffer a greater loss. There might be some justification in exposing the country to this financial loss if, through such purchase, the majority of the people working on them were to become the owners of the land which they are now cultivating. I am positive, however, that such will not be the case, any more than it was in the case of the friar lands, and I, for one, despite the commitment in the Coalition platform, do not wish to impose upon our people the burden of a national debt which our children will have to bear merely to give a few individuals the opportunity to acquire these particular areas at the expense of the people when there is so much available fertile and untouched public land in many regions of our country, particularly in Mindanao.

I realize the difficulty of convincing the men and their families who are now living in these “haciendas” to move out from their places of birth in order to settle in other provinces or islands, knowing as I do the attachment of the Filipino to his hometown. We must encourage our people to have a national outlook so that they may feel at home in whatever corner of the Philippines they may find themselves. We thus have an opportunity to induce the settlement of our sparsely populated areas by the tenants of these “haciendas,” and the money that the Government would surely lose with their purchase could be invested to better advantage in the construction of roads and improvement of health conditions in said uninhabited but rich sections of the Philippines.

In the meantime, I recommend the adoption of measures similar to those which were adopted in Ireland to solve agrarian problems there which have been existing from time immemorial. I also recommend the immediate passage of a law authorizing the expropriation of those portions of the large “haciendas” which are urban in character and are occupied by the houses of the tenants. With the opportunity to own their own homes thus assured, the settlement of the present difficulties of the tenants relative to their farm lands might no longer be of urgent necessity.

Previous Legislative Enactments

In your inaugural session, which lasted barely thirty days, you enacted the most important legislation pledged in the Coalition platform and urgently required by the nature of the new responsibilities of the present government. The record you have made has earned for you just commendation and constitutes the main reason for the prevailing confidence in our future. I now beg leave to report what has been done by Executive in compliance with your legislative enactments.

National Defense –Conscious of the fact that the prime duty of every government is to provide for national defense, the first measure you have enacted is the “National Defense Act” (Commonwealth Act No. 1).

This Act provides for the reorganization of a defensive system composed of the Regular Force and a trained citizen army, and contemplates a yearly appropriation of P16,000,000 for ten years, at the end of which the nation will be placed in a position of serene dignity amongst the powers of the world.

A comprehensive report of the steps taken in pursuance of the provisions of the National Defense Act has been submitted to be by the Military Adviser and it will be my pleasure to transmit it to you in a separate message. Suffice it for me to say now that the response of the country to the call of the Assembly has exceeded our fondest expectations. The number of Filipinos who enrolled on the date fixed for registration in accordance with the provisions of the National Defense Act was greatly in excess of what had been anticipated; in fact it was almost double our estimates. The school teachers who were given instructions in training camps to equip them with the knowledge necessary to carry out the work assigned to them in the schools under the provisions of the National Defense Act, conducted themselves so well and their training was so successful that they deserve from me a well-merited public recognition. It has been plainly demonstrated that our people are ready for the supreme sacrifice in defense of their motherland and their liberty.

I order to expedite the organization of the new Army, I made ad interim appointments to the positions of Chief and Deputy Chief of Staff, the Provost Marshal, and other high ranking officers. These appointments were made after a careful and impartial study of the record of every man and were made upon the recommendation of the Military Adviser of this Government.

No one better than I knows how essential it is to entirely disassociate the Army from politics and, as scrupulously in the rank and file as in the high command, to make merit as the one and only basis of promotion. The Army is a double-edged sword. It is the arm of the Government which is the last resort for the enforcement of the laws and so compel obedience to constituted authority, for the maintenance of peace and order, and for the defense of the national integrity and liberty. But as contemporary history proves to us, the army can also be a disturber of peace and the enemy of law and established government, and in many instances it has been the instrument for the overthrow of constitutional regime. In building up our national defense, and in organizing the regular armed forces of the Islands, these tragic lessons of history must be constantly borne in mind, and it behooves us, who are for the time being entrusted with the responsibility of leadership over our nation, to be forever watchful and vigilant lest we sow the seeds of a possible future misuse of our armed forces. A just and fair treatment for the Army and its rank and file, the upholding of civil authority over the military, insistence upon strict discipline within the organization, non-interference by outsiders, political or otherwise, and a rigid prohibition against the use of the organization or its members for political purposes –these are the basic principles that must be faithfully adhered to in order to make the Philippine Army the safeguard of our liberties and constitutional government, as well as the bulwark of our national integrity and independence.

During the brief period that I have been at the head of the Government, I have inspected most of the garrisons of the Philippine Army and Constabulary. I know and have known for years many of the officers of the organization and have had intimate relations with the high command. The discipline, the gentlemanly conduct, the devotion to duty, the patriotism and courage of the officers and men make me feel proud as a Filipino and as the Commander-in-Chief of these armed forces of the Commonwealth.

The National Economic Council –Another important legislation which you passed in your inaugural session is that which creates the National Economic Council to advise the Government on economic and financial questions, including the improvement and promotion of industries, diversification of crops and production, tariffs, taxation, and such other matters as may from time to time be submitted so its consideration by the President, and to formulate an economic program based on national independence.

In accordance with the provisions of said Act, I have appointed the Secretary of Finance, the Secretary of Agriculture and Commerce, the Chairman of the Board of Directors of the Philippine National Bank, the President of the National Development Company, the President of the Manila Railroad Company, Mr. Joaquin M. Elizalde, Hon. R.J. Fernandez, Mr. Wenceslao Trinidad, Mr. Vicente Madrigal, Hon. Francisco Varona, Mr. Ramon Soriano, Hon. Vicente Singson Encarnacion, Hon. Rafael R. Alunan and Dr. Manuel L. Roxas, as members of the National Economic Council and designated as Chairman thereof the Secretary of Finance. The Council was organized on February 14, 1936, and it commenced to function immediately thereafter.

As may be expected, considering the complex and highly technical character of the task entrusted to it, the National Economic Council has not so far submitted to the Government any economic program, nor has the Government sought the advice of the Council except on one question: namely, the advisability of creating the National Rice and Corn Corporation for the purpose of bringing about the stabilization of the price of rice, the most important staple food of our people, by protecting equally the producer and the consumer, and also to serve as an agency of the Government to meet local or national emergencies in cases of shortage of rice. It should be stated in all candor that it was only after a long debate inspired by honest differences of opinion that the National Economic Council gave its approval to this venture. Despite certain doubts expressed by some members of the Council, however, I am confident that the National Rice and Corn Corporation will ultimately solve the rice problem, one of the most serious national problems which for years has been confronting our country and which demanded immediate attention on account of its very serious implications.

The situation may be summarized as follows: The main food supply of the Filipinos, like that of most Orientals, is rice. For many years the country did not produce a sufficient quantity of rice for its consumption and the Government deemed it necessary even to borrow money for the purpose of establishing irrigation systems in order that the country may be self-sufficient in rice supply. Our yearly importation of this article amounted to many millions of pesos, reaching over P25,000,000 in one year. During the last two years we were able to produce practically all the rice needed for our consumption. But no sooner did we reach this stage than the price of rice went down, in fact so low that the rice farmer not only made no profit, but actually suffered considerable losses. As a consequence, there has been a growing discontent on the part of the rice growers, especially the tenants or kasamas, who are earning less than is required for the bare necessities of life. On the other hand, whenever, due to typhoons, drought, or floods there was a shortage of rice and prices reached high levels, either through the manipulations of a few conscienceless rice merchants or merely because of scarcity of supply, the consumer, especially the poor, became a victim of speculatory activities. To save them the Government had to intervene and take drastic measures at times in order to alleviate the crisis.

In spite of such a situation nothing has been attempted so far to remedy it, and this Administration felt that it was its duty, especially in view of the shortage of the last crop due to repeated typhoons and floods, to face the issue immediately and strive to solve the problem once and for all.

It is only natural that there should be some doubt or fear, and even resentment from some quarters, over the action of the Government; hence criticisms are being made in public and in private, and those who expected to make unreasonable profits from the rice crisis and were foiled in their anticipations, went so far as to see dishonest purposes in the creation of the Rice and Corn Corporation. All such doubts and criticisms, whether honest or malicious, did not deter the Administration from carrying out the plan that has been adopted, especially because no alternative had been suggested.

To meet the national emergency caused by the shortage of rice, I have designated the National Rice and Corn Corpation to act as the relief agency for the Government in place of the Bureau of Commerce which was in charge of this activity in the past. When the corporation started importing rice, the Collector of Customs, believing that the rice so imported must pay duties in view of the fact that it was being sold at some profit, informed the Secretary of Finance of his intention to collect such duties, and in fact did demand payment thereof by the Rice and Corn Corporation. After securing the legal opinion of the Secretary of Justice, I advised the Collector of Customs to desist from collecting any duties from the Rice and Corn Corporation on the rice imported so long as it was acting as the agent of the Government in meeting the emergency resulting from the rice shortage.

Heretofore, Government agencies disagreeing on the interpretation of the laws affecting their powers and rights, have been allowed to bring the case before the courts for adjudication. Such a policy, I think, is wrong, and in fact in one instance it has merited the criticism of our own Supreme Court. It makes both government agencies incur in unjustified expense and unnecessarily take up the time of the courts. Considered in its practical aspect, it only means taking money from one agency of the Government and giving it to another. If it had been a question of the Government on the one hand as against a purely private enterprise on the other, then it would have been not only proper but also necessary for the courts to have intervened.

The Court of Appeals –Commonwealth Act No. 3, enacted also during the inaugural session of the Assembly, created the Court of Appeals in order to expedite and improve the administration of justice.

In accordance with the provisions of said Act, I appointed the members of the Court who forthwith proceeded with its organization. These appointments were made after full information and careful consideration, with an eye single to the best interests of the administration of justice.

As soon as funds are available for the purpose, I shall recommend to the Assembly that the necessary appropriation be made for the creation of another division of the Court of Appeals to sit in one of the southern provinces and to authorize the various divisions of the Court of Appeals to sit in any of the provinces within their jurisdiction, to hear cases pending before the Court for decision. Such procedure would not only expedite but would also greatly reduce the cost of appeals to litigants, thus making this appellate Court more accessible to the poor.

Manila Railroad Company –A very important measure approved by the National Assembly is Commonwealth Act No. 4 providing funds to be loaned to the Manila Railroad Company for the purchase, before maturity, of certain outstanding bonds of the said Company. In accordance with the provisions of this Act, I directed the Insular Treasurer to loan to the Manila Railroad Company P9,900,000, and authorized the Philippine National Bank to use P3,360,000 of its funds in the purchase of said bonds.

On January 29, 1936, upon payment to the Manila Railway Company (1906) Ltd., through the Chase National Bank, New York City, of the sum of $6,698,631.41 covering the principal, interest and exchange premium, all of the Souther Lines 4 per cent gold bonds maturing May 1, 1939, held by the English Company, with par value of P16,340,000, were delivered to the order of the Bureau of Insular Affairs, Washington, D.C., acting as representative of the Commonwealth Government and the Manila Railroad Company.

The successful culmination of this exceedingly important transaction resulted in great financial advantages to the direct benefit of the Manila Railroad Company and indirectly of the Commonwealth Government, which is the sole owner of the property. The following estimates indicate in round figures the savings that will be effected between now and the maturity of the bonds:

Total face value of the bonds held by the Manila Railway Company (1906), Ltd. ……………..	P16,340,000.00 Cost at 80 per cent of face value	…………….. 13,072,000.00 Savings in principal	…………….. 3,268,000.00 Less –premium	…………….. 165,500.00 Net saving in principal	…………….. 3,102,500.00 Normal 4 per cent annual interest on English Company holdings	P653,600.00 Normal interest for 1936, 1937, 1938 and half of 1939	2,287,600.00 Premium for 3-1/2 years at P441,180 each year	1,544,130.00——————	3,831,730.00—————————– Total	…………….. P6,934,230.00 Less- 2% on P13,350,000 for 3-1/2 years		934,500.00—————————– Total savings in principal and interest	…………….. P5,999,730.00================ The above savings on the English Company holdings are based on the principal of the bonds being redeemed at maturity at their face value. However, both the principal and interest are subject, at the holders’ option, to payment in certain European currencies at the former gold equivalent, and if this option should be exercised covering the principal at the time of maturity, the amount necessary to redeem the bonds being held by the English Company would, on the present basis of exchange, represent a total sum of approximately P27,287,800. The purchase of these new bonds at this time for the sum of P13,072,000, therefore, means a saving in interest and principal of about P14,200,000 besides a savings in interest and premium amounting to about P2,900,000 after allowing for the two per cent interest on the loan from the Government, or a total saving of about P17,100,000.

The investment of the Government in the Manila Railroad Company including bonded indebtedness of the Company all told amounts to approximately P28,000,000. This is a respectable sum for any Government and doubly so for a Government whose yearly revenue at present is around P78,000,000 and at its highest peak only reached the total of P92,783,173.70.

Bus and truck transportation due to improved roads in the northern and central provinces of Luzon have caused a large decline in the income of the Manila Railroad Company. We cannot afford to allow this situation to continue and permit the Government to suffer tremendous losses in railroad operation, for the time might come when the Government would either be compelled to suspend the operation of the Railway or carry a yearly financial burden that sooner or later would bankrupt the National Treasury.

The Manila Railroad was acquired by the Insular Government in 1917 in order partly to withdraw from foreign hands the control of our most important means of transportation at that time. Soon after the Government assumed the administration of this property, the railroad began paying interest on the bonds from its revenue, and even extended some of its lines with its own resources. Only during the last two or three years has the income of the railroad begun to decline due, as already stated, to bus and truck competition. If it should be found advisable, I am prepared to authorize the Manila Railroad Company to purchase some of these competing bus transportation companies or else to have the Government establish and operate its own bus and truck services. The Constitution expressly authorizes the Government to establish and operate means of transportation and communication, and, upon payment of just compensation, transfer to public ownership utilities held by private individuals to be operated by the Government.

Another step that must be taken at once is the completion of the railroad line to the Bicol provinces. This, I am informed, will make the southern lines a paying enterprise. In pursuance of the authority vested in me by law, I have directed the Secretary of Finance to purchase P3,000,000 worth of stocks of the Manila Railroad to finance the completion of the Aloneros-Ragay line. It is my understanding that to complete the road the Government will have to invest only P700,000 more in addition to the P3,000,000 referred to above.

But this amount will have to be greatly increased if the Manila Railroad Company is not given permission to abandon the Legaspi-Tabaco, Las Pinas-Naic, Rosario-Montalban and Batangas-Bauan lines which are absolutely unnecessary from the point of view of public convenience and which, consequently, are causing an annual loss of about P100,000 to the Railroad Company. Once these lines are abandoned their materials and equipment will be used in the construction of the Aloneros-Ragay line.

I, therefore, earnestly recommend that a law be enacted authorizing the Manila Railroad Company to abandon the lines above mentioned.

Government Survey Board –In accordance with the provisions of Commonwealth Act No. 5, I appointed Hon. Miguel Unson, as Chairman, and Mr. Wenceslao Trinidad and Mr. Jose Paez, as members of the Government Survey Board on February 14, 1936. The Board has been devoting considerable time to the investigation of the Government bureaus and their activities and to the formulation of a plan whereby the Government may be simplified and made more economical as well as more efficient. The most important recommendation of this Board is the creation of the Budget Office, which I have approved, and in accordance therewith I have appointed the Auditor General and the Director of Civil Service, as members of the Commission and the Honorable Serafin Marabut, former Chairman of the Appropriations Committee of the National Assembly, as Undersecretary of Finance and Director of the Budget. The budget which I will soon submit to the Assembly has already been prepared by the Commission and approved by the Cabinet. The only other case in which I have exercised the authority granted me by Commonwealth Act No. 5, also upon the recommendation of the Survey Board, is the transfer of the coastguard and lighthouse service from the Department of Agriculture and Commerce to the Bureau of Customs.

At this time the Board is conducting a careful investigation and study of the activities of the Bureau of Lands, General Land Registration Office, Bureaus of Public Works, Science, Animal Industry, Plant Industry and Health, and of the University of the Philippines, with the end in view of avoiding duplication and simplifying procedure. Special attention is being given by the Board to the matter of cadastral surveys, homesteads, a general registration office, a central statistics office, and proper allocation on centralization of laboratories with the purpose of recommending the intensification of industrial researches, so essential to the economic development of our country. Preliminary survey of the provincial and municipal services is likewise under way.

Philippine National Bank –In accordance with the provisions of Commonwealth Act No. 6, the Philippine National Bank has written up certain assets, heretofore considered as losses, at their actual value. On January 17, 1936, the sum of P3,940,000 was thus written up and paid to the Government, and on May 18, 1936, the sum of P2,944,997 was also written up to be paid to the Government in due course.

National Loan and Investment Board –The National Loan and Investment Board created by Commonwealth Act No. 7 has been constituted by the appointment of Mr. Salvador Lagdameo, as chairman, and of Dr. Luther B. Bewley, Mr. Jose Bernardo, and Mr. Pedro M. Moncayo, as members.

The Board began functioning on February 29, 1936, by adopting measures to organize its office and at the same time granting loans from the different funds placed under its control and administration. Due to the natural delay encountered in making the delimitation of the powers of the National Loan and Investment Board and those of the different boards and offices originally controlling the several investible funds transferred to the former, as well as in transferring the personnel and appointing the necessary new employees, the Board has not as yet been able to completely organize its office and to function as properly as it should. The amount of investible funds, the investment of which has been placed under the administration of the National Loan and Investment Board, aggregates P45,000,000 as of December 31, 1935. The actual transfer of these funds to the National Loan and Investment Board has not yet been completed. It is, however, hoped that such transfer will soon be effected.

It has been found that certain amendments to Commonwealth Act No. 7 are immediately needed in order to clarify some of its provisions.

Construction of Roads in Mindanao –In the exercise of the powers vested in me by Commonwealth Act No. 18, I authorized the expenditure of P820,000 for the completion of the road connecting the Provinces of Lanao, Cotabato and Davao on the Island of Mindanao. As an initial step in the program of giving new impetus to the development of Mindanao, this work will be of incalculable value to the country, since it will not only provide an overland outlet for Davao but will also open to settlement immense unoccupied areas of that island.

The time has come when we should systematically proceed with and bring about the colonization and economic development of Mindanao. A vast and rich territory with its untapped natural resources is a temptation to enterprising nations that are looking for an outlet for their excess population. While no nation has the right to violate the territorial integrity of another nation, people that lack the energy, ability, or desire to make use of the resources which Divine Providence has placed in their hands, afford an excuse for a more energetic and willful people to deprive them of their lawful heritage. If, therefore, we are resolved to conserve Mindanao for ourselves and our posterity, we must bend all our efforts to occupy and develop it and guard against avarice and greed. Its colonization and development will require no little capital. But every cent spent for this purpose will mean increased national wealth and greater national security. The present income of the government is quite insufficient to even attempt to do more than carry on its present activities. Were there no other reasons for the creation of new sources of revenue, the need of developing Mindanao alone would make it an unavoidable duty for this Assembly, especially those who visited Mindanao recently with me, are conscious, I feel sure, of our grave responsibility to encourage settlement and develop Mindanao. There are provinces in Luzon and the Visayas that are already overpopulated. There are localities in some of those provinces where the people live on large estates without opportunity to earn a livelihood sufficient to meet the necessities of civilized life, much less to own the land wherein they live and which they cultivate. It is inconceivable that such a situation should exist in a country with extensive areas of fertile uncultivated lands. I invite you, therefore, to give this matter preferential consideration.

The so-called Moro problem is a thing of the past. We are giving our Mohammedan brethren the best government they have ever had and we are showing them our devoted interest in their welfare and advancement. In turn they are giving us their full cooperation. Let us reserve for them in their respective localities such land of the public domain as they may need for their well-being. Let us, at the same time, place in the unoccupied lands of that region industrious Filipinos from other provinces of the Archipelago, so that they may live together in perfect harmony and brotherhood.

Public Instruction

In order to comply with the provisions of the Constitution concerning public education I feel it my duty to see to it that a careful study be made of the fundamental problems brought about by the conditions now obtaining so that our educational policies and objectives may be re-defined. Our system of public education must be inspired in Filipino patriotism and consecrated to the formation of citizens of high moral character and civic virtues. It must equip our citizens with social and vocational efficiency not only for their own benefit but also so that they may the better serve the State. We must provide every child of school age the opportunity to receive primary instruction.

So that the Government may be advised as to the best method and the necessary means to carry out the reorganization and proper orientation of our public school system, I have created, by executive order, the Council of Education, composed of professional educators drawn from our own Bureau of Education and the Government University as well as from some of the best accredited private institutions of learning. Dr. Rafael Palma, former President of the University of the Philippines, is at the head of the Council. The members are: Hon. Gabriel Manalac, Dr. Francisco Benitez, Dr. Jorge Bocobo, Dr. Luther Bewley, Hon. Norberto Romualdez, Mrs. Sofia R. de Veyra, Dr. Mariano V. de los Santos, Dr. Nicanor Reyes, Dr. Manuel L. Carreon, and Mr. Segundo Infantado. I hope that during the present sessions some recommendations of the Council may be submitted to you for appropriate action.

Civil Service

During the last especial session I recommended the enactment of legislation that will make our Civil Service Law conform to the provisions of the Constitution. Lack of time prevented you from taking affirmative action on this subject, and I hereby renew my former recommendation.

The National Language

While it is my hope and conviction that the English language will remain one of the most generally spoken languages in the Philippines even after independence, nevertheless, we cannot ignore the injunction of the Constitution that we take steps for the formation of a national language based on one of the existing native languages. It is difficult to determine what practical measures may be adopted at this time to bring this about, but I wish to lay the problem before you so that you may give it your early and deliberate consideration. Perhaps a committee may be created to study the question and make recommendations.

New Taxes

In view of the new and greater responsibilities of the Commonwealth and the necessity of having at our disposal funds with which to carry out a comprehensive program for the economic development of the country, it will be necessary to create new taxes. The following are some of the tax measures which I recommend for your approval:

1.  The amendment of the Income Tax Law by reducing the personal tax exemption and increasing the rate of the tax on excess personal income and of the tax on corporate profits.

2.  The amendment of the Inheritance Tax Law by increasing the rate of the tax, particularly in the case of estates of decedents not leaving any forced heirs.

3.  The increase of the tax on mines.

4.  Taxes on luxuries and amusements.

5.  The creation of a school tax in an amount equal to the present cedula tax, which should be abolished.

6.  A tax on transportation and travel in an amount sufficient to take care of the maintenance and improvement of roads.

7.  A modification of the Land Tax Law, so as to provide for a progressively increasing rate of taxation based upon the area of the landholdings.

8.  Modifications of present tax laws to enable the Government to collect taxes more effectively.

The taxes I am recommending place the burden upon shoulders that can well afford to bear them and, if levied, the Commonwealth Government will be able to render our people new services so urgently needed for their welfare and progress. I feel confident that those who are called upon to pay these taxes will not grudge their added contribution to the public weal.

Until the National Assembly enacts the measure above referred to, it will be futile for me to present for your consideration a program of government activities or industrial development which the Government may initiate or help in part, for there will be no means with which to carry it out.

Conclusion

From time to time, during your present session, I shall have occasion to present for your study and consideration matters that, in my opinion, deserve your attention. Meanwhile, may I express the hope that the cordial cooperation which as existed in the last session between the Executive and the Legislative Departments will continue to be keynote of our relations? The success of the Commonwealth will depend upon the ability of the executive and legislative departments to cooperate with each other.

In our day and generation democracy, as an effective system of government, is being challenged. Let this new democracy of ours show to the world that democracy can be as efficient as a dictatorship, without trespassing upon individual liberty and the sacred rights of the people.

Manuel Luis Quezon


text: Dictionary of National Biography, 1885-1900/Hope, Charles (1681-1742)


text: Dictionary of National Biography, 1885-1900/Hope, Charles (1763-1851)


text: Dictionary of National Biography, 1885-1900/Hope, Frederick William


text: Dictionary of National Biography, 1885-1900/Hope, George


text: Dictionary of National Biography, 1885-1900/Hope, Henry


text: Dictionary of National Biography, 1885-1900/Hope, James (1614-1661)


text: Dictionary of National Biography, 1885-1900/Hope, James (1741-1816)


text: Dictionary of National Biography, 1885-1900/Hope, James (1801-1841)


text: Dictionary of National Biography, 1885-1900/Hope, James (1764-1846?)


text: Dictionary of National Biography, 1885-1900/Hope, James (1808-1881)


text: Dictionary of National Biography, 1885-1900/Hope, James Archibald


text: Dictionary of National Biography, 1885-1900/Hope, John (1605?-1654)


text: Dictionary of National Biography, 1885-1900/Hope, John (1739-1785)


text: Dictionary of National Biography, 1885-1900/Hope, John (1725-1786)


text: Dictionary of National Biography, 1885-1900/Hope, John (1765-1823)


text: Dictionary of National Biography, 1885-1900/Hope, John (1765-1836)


text: Dictionary of National Biography, 1885-1900/Hope, John Williams


text: Dictionary of National Biography, 1885-1900/Hope, Thomas (1606-1643)


text: Dictionary of National Biography, 1885-1900/Hope, Thomas (d.1646)


text: Dictionary of National Biography, 1885-1900/Hope, Thomas (1770?-1831)


text: Dictionary of National Biography, 1885-1900/Hope, Thomas Charles


text: Dictionary of National Biography, 1885-1900/Hope, William Johnstone


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The New International Encyclopædia/Hajji Khalfah, Mustafa ibn Abdallah Katib Tchelebi

HAJJI KHALFAH, hä'jḗ käl'fä, (c.1600-58). A celebrated Turkish historian and bibliographer. He was born at Constantinople about the end of the sixteenth century, and died there in September, 1658. From 1622 till 1633 he was employed in the Turkish army, and had an excellent opportunity of acquiring information regarding matters of history, geography, etc. He made the pilgrimage to Mecca, whence his name ../Hajji/ (q.v.). In 1635 he was at Constantinople studying and collecting material for his encyclopædia. In 1648 he was appointed second assessor in the army bureau of provisions. From this position he got his second name, Khalfah (assessor). His works are written in Turkish and Arabic. They include, besides smaller works: (1) the celebrated Asāmī al-kutūb wo-al-funūn (Names of Books and Sciences), written in Arabic, and of which Flügel has given a Latin translation with the text, under the title Lexicon Bibliographicum et Encyclopædicum a Mustapha-ben-Abdallah (Leipzig, 1835-58). In this work is given a definition of each science; the titles, contents, language, dates of composition, and translation of more than 25,000 works are specified; also the names of the authors and dates of their death. It is the most complete catalogue in existence of works written in Arabic, Persian, and Turkish; (2) Ta'rikh kebir (Great History), a history of the world from the creation of Adam to 1655, containing notices of 150 dynasties, principally Asiatic; (3) a history of the Ottoman Empire from 1595 to 1655; (4) a history of the maritime wars of the Turks, which has been translated into English (London, 1831).


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4 here. No one can be impressed more than myself with the uncertainty of conclusions drawn from experiences and reflections gathered in so brief a period, however industriously and wisely occupied. Nevertheless, they may be of some service to those who have not been privileged with an equal opportunity.

Of the plantations visited, full notes have been taken of seventeen, with reference to number of negroes in all; of field hands; amount of cotton and corn raised, and how much per acre; time and mode of producing and distributing manure; listing, planting, cultivating, picking and ginning cotton; labor required of each hand; allowance of food and clothing; the capacities of the laborers; their wishes and feelings, both as to themselves and their masters. Many of the above points could be determined by other sources, such as persons at the North familiar with the region, and publications. The inquiries were, however, made with the double purpose of acquiring the information and testing the capacity of the persons inquired of. Some of the leading results of the examination will now be submitted.

An estimate of the number of plantations open to cultivation, and of the persons upon the territory protected by the forces of the United States, if only approximate to the truth, may prove convenient in providing a proper system of administration. The following islands are thus protected, and the estimated number of plantations upon each is given:—

There are several other islands thus protected, without plantations, as Otter, Pritchard, Fripp, Hunting and Phillips. Lemon and Daw have not been explored by the agents engaged in collecting cotton.

The populous island of North Edisto, lying in the direction of Charleston, and giving the name to the finest cotton, is


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The New International Encyclopædia/Purim

PU'RIM. One of the later Jewish festivals, for which the Jewish Church accepts the Book of Esther as the historical basis. According to this book, the festival was instituted to commemorate the deliverance of the Jews of Persia from a massacre with which they were threatened in the days of Xerxes (B.C. 485-465) at the instigation of Haman, the King's prime minister. It is celebrated on the 14th and 15th of the month Adar and is preceded by a day of fasting as preparation. (Cf. Esther iv. 15-17.) Scholars who hold that the Book of Esther (q.v.) is largely or purely fictitious, think that it may have been written to justify and account for a fast and festival, the origin of which was lost in obscurity. What the earlier significance of fast and festival was is conjectural in the absence of definite data. They are thought to be of Babylonian origin. The occurrence in the spring suggests a solar festival, the fast representing the death of winter, while the festival marks the joyous return of spring. Thus interpreted Haman and Vashti symbolize the disappearance of the old year; Mordecai and Esther, hailed as King and Queen, are the new favorites who bring in fertility and renewal of vegetation. The feast of Purim corresponds in time with a festival, mentioned in the Books of the Maccabees, in celebration of a victory gained by Judas Maccabæus, on the 13th of Adar, B.C. 161, over Nicanor (I. Mac. vii. 49; II. Mac. xv. 36). This seems to have been earlier a festival in honor of the dead. See .

The name Purim is explained in the Book of Esther as ‘lots,’ and the application of it to the festival as due to the fact that Haman cast lots to determine a day favorable for the extermination of the Jews (Esther iii. 7; ix. 26). This is probably merely a piece of folk-etymology and illustrates the obscurity as to the meaning of the name at the time of composition of the book. In Babylonian there is a word puru, one meaning of which seems to have been ‘a round stone,’ and then ‘lot,’ from the use of stones in divination. Possibly the Jewish author of the Book of Esther, living in Persia or Babylonia, had this word in mind, but it does not necessarily follow that purim* is identical with puru. The problem may be solved if a festival be discovered among Babylonians or Persians bearing the name purim*, or something sufficiently like it to account for the Jewish form.

As celebrated by Orthodox Jews, the Purim festival is a time of feasting and merry-making. It begins as soon as the stars appear on the evening of the 14th of Adar. Candles are lighted. Consult: Lagarde, Purim, ein Beitrag zur Geschichte der Religion (Göttingen, 1887); Erbt, Die Purimsage in der Bibel (Berlin, 1900); Frazer, The Golden Bough, vol. iii. (2d ed., London, 1900).


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Rh still visited by the rebels. A part near Botany Bay Island is commanded by the guns of one of our war vessels, under which a colony of one thousand negroes sought protection, where they have been temporarily subsisted from its stores. The number has within a few days been stated to have increased to 2300. Among these, great destitution is said to prevail. Even to this number, as the negroes acquire confidence in us, large additions are likely every week to be made. The whole island can be safely farmed as soon as troops can be spared for the purpose of occupation. But not counting the plantations of this island, the number on Port Royal, Ladies', St. Helena, Hilton Head, and the smaller islands, may be estimated at 200 plantations.

In visiting the plantations, I endeavored to ascertain with substantial accuracy the number of persons upon them, without, however, expecting to determine the precise number. On that of Thomas Aston Coffin, at Coffin Point, St. Helena, there were 260, the largest found on any one visited. There were 130 on that of Dr. J. W. Jenkins, 120 on that of the Eustis estate, and the others range from 80 to 38, making an average of 81 to a plantation. These, however, may be ranked among the best peopled plantations, and forty to each may be considered a fair average. From these estimates, a population of 8000 negroes on the islands, now safely protected by our forces, results.

Of the 600 at the camp at Hilton Head, about one-half should be counted with the aforesaid plantations whence they have come. Of the 600 at Beaufort, one-third should also be reckoned with the plantations. The other fraction in each case should be added to the 8000 in computing the population now thrown on our protection.

The negroes on Ladies' and St. Helena Islands have quite generally remained on their respective plantations, or if absent, but temporarily, visiting wives or relatives. The dispersion on Port Royal and Hilton Head Islands has been far greater, the people of the former going to Beaufort in considerable numbers, and of the latter to the camp at Hilton Head.

Counting the negroes who have gone to Hilton Head and Beaufort from places now protected by our forces as still attached to the plantations, and to that extent not swelling


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6 the 8000 on plantations, but adding thereto the usual negro population of Beaufort, as also the negroes who have fled to Beaufort and Hilton Head from places not yet occupied by our forces, and adding also the colony at North Edisto, and we must now have thrown upon our hands, for whose present and future we must provide, from 10,000 to 12,000 persons—probably nearer the latter than the former number. This number is rapidly increasing. This week, forty-eight escaped from a single plantation near Graham ville, on the main land, held by the rebels, led by the driver, and after four days of trial and peril, hidden by day and threading the waters with their boats by night, evading the rebel pickets, joyfully entered our camp at Hilton Head. The accessions at Edisto are in larger number, and according to the most reasonable estimates, it would only require small advances by our troops, not involving a general engagement or even loss of life, to double the number which would be brought within our lines.

A fact derived from the Census of 1860 may serve to illustrate the responsibility now devolving on the Government. This County of Beaufort had a population of slaves in proportion of 82 of the whole,—a proportion only exceeded by seven other counties in the United States, viz.: one in South Carolina, that of Georgetown; three in Mississippi, those of Bolivar, Washington and Issequena; and three in Louisiana, those of Madison, Tensas and Concordia.

An impression prevails that the negroes here have been less cared for than in most other rebel districts. If this be so, and a beneficent reform shall be achieved here, the experiment may anywhere else be hopefully attempted.

The former white population, so far as can be ascertained, are rebels, with one or two exceptions. In January, 1861, a meeting of the planters on St. Helena Island was held, of which Thomas Aston Coffin was chairman. A vote was passed, stating its exposed condition, and offering their slaves to the Governor of South Carolina, to aid in building earth mounds, and calling on him for guns to place upon them. A copy of the vote, probably in his own handwriting, and signed by Mr. Coffin, was found in his house.

It is worthy of note that the negroes now within our lines are there by the invitation of no one; but they were on the


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The New International Encyclopædia/Esther

ESTHER, ĕs'tẽr (Heb. Ester; cf. Babylonian Ishtar, and late Bab. Estrā), or (Heb., myrtle). A biblical character who has given her name to the book of Esther, which forms part of the collection of the Old Testament. According to this book, Esther is a Jewess of the tribe of Benjamin. She is represented as the daughter of Abihail, orphaned in early life, and brought up by her cousin Mordecai (Esther ii. 7, 15) in Susa, the Persian capital ( ii. 5). When the King of Persia, Ahasuerus (Xerxes, B.C. 485-65), angered at the refusal of his Queen, Vashti, to unveil herself publicly at a banquet, desired a new queen (i.-ii. 4), Esther was brought to the palace and was chosen in Vashti's place (ii. 8-20). As Queen she accomplished that for which she has since been famous—the deliverance of her nation from the cruelty of Haman, the King's Prime Minister, and also brought about the overthrow of Haman himself (iii.-ix.). In commemoration of this deliverance the Jews celebrate the Feast of Purim. See.

There are several difficulties involved in supposing Esther to have actually been the Queen of Xerxes. Herodotus mentions Amestris as the only Queen of Xerxes, and what we know of her does not at all agree with the story of Esther. Moreover, the Persian kings chose their wives from the principal Persian families, or from the

daughters of foreign potentates. Hence it has been supposed that Esther was in reality merely the favorite of the King's harem; but even this is unlikely. See.


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Rh soil when our army began its occupation, and could not have been excluded, except by violent transportation. A small proportion have come in from the main land, evading the pickets of the enemy and our own,—something easily done in an extensive country, with whose woods and creeks they are familiar.

The only exportable crop of this region is the long staple Sea Island cotton, raised with more difficulty than the coarser kind, and bringing a higher price. The agents of the Treasury Department expect to gather some 2,500,000 pounds of ginned cotton the present year, nearly all of which had been picked and stored before the arrival of our forces. Considerable quantities have not been picked at all, but the crop for this season was unusually good. Potatoes and corn are raised only for consumption on the plantations,—corn being raised at the rate of only twenty-five bushels per acre.

Such features in plantation life as will throw light on the social questions now anxiously weighed deserve notice.

In this region, the master, if a man of wealth, is more likely to have his main residence at Beaufort, sometimes having none on the plantation, but having one for the driver, who is always a negro. He may, however, have one, and an expensive one, too, as in the ease of Dr. Jenkins, at St. Helena, and yet pass most of his time at Beaufort, or at the North. The plantation in such cases is left almost wholly under the charge of an overseer. In some eases, there is not even a house for an overseer, the plantation being superintended by the driver, and being visited by the overseer living on another plantation belonging to the same owner. The houses for the overseers are of an undesirable character. Orchards of orange or fig trees are usually planted near them.

The field hands are generally quartered at some distance—eighty or one hundred rods—from the overseer's or master's house, and are ranged in a row, sometimes in two rows, fronting each other. They are sixteen feet by twelve, each appropriated to a family, and in some cases divided with a partitition. They numbered, on the plantations visited, from ten to twenty, and on the Coffin plantation, they are double, numbering twenty-three double houses, intended for forty-six families. The yards seemed to swarm with children, the negroes coupling at an early age.


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8 Except on Sundays, these people do not take their meals at a family table, but each one takes his hominy, bread, or potatoes, sitting on the floor or a bench, and at his own time. They say their masters never allowed them any regular time for meals. Whoever, under our new system, is charged with their superintendence, should see that they attend more to the cleanliness of their persons and houses, and that, as in families of white people, they take their meals together at a table—habits to which they will be more disposed when they are provided with another change of clothing, and when better food is furnished and a proper hour assigned for meals.

Upon each plantation visited by me, familiar conversations were had with several laborers, more or less, as time permitted—sometimes inquiries made of them, as they collected in groups, as to what they desired us to do with and for them, with advice as to the course of sobriety and industry which it was for their interest to pursue under the new and strange circumstances in which they were now placed. Inquiries as to plantation economy, the culture of crops, the implements still remaining, the number of persons in all, and of field hands, and the rations issued, were made of the drivers, as they are called, answering as nearly as the two different systems of labor will permit to foremen on farm's in the free States. There is one on each plantation—on the largest one visited, two. They still remained on each visited, and their names were noted. The business of the driver was to superintend the field-hands generally, and see that their tasks were performed fully and properly. He controlled them, subject to the master or overseer. He dealt out the rations. Another office belonged to him. He was required by the master or overseer, whenever he saw fit, to inflict corporal punishment upon the laborers; nor was he relieved from this office when the subject of discipline was his wife or children. In the absence of the master or overseer, he succeeded to much of their authority. As indicating his position of consequence, he was privileged with four suits of clothing a year, while only two were allowed to the laborers under him. It is evident, from some of the duties assigned to him, that he must have been a person of considerable judgment and knowledge of plantation economy, not differing essentially from that required of the foreman of a farm in the free States. He


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The New International Encyclopædia/Esther (Racine)

ESTHER. (1) A drama by Racine, written at the suggestion of Madame de Maintenon, and founded on the life of the Old Testament personage of the same name. It was written for the pupils of Saint Cyr, and was performed by them before Louis XIV. in 1689. (2) An oratorio, the words by Humphreys, based on Racine's play, and the music by Handel. Its first performance took place in 1720.