Proceedings of the first Independence congress : held in the city of Manila, Philippine islands, February 22-26, 1930 / Published under the direction of Dean maximo M. Kalaw, executive secretary, University of the Philippines.

ECONOMIC SECTION

87

in the free list of the United States tariff and would not therefore suffer from the abolition of the free trade. The principal
markets for our maguey are found, not in the United States
but in the United Kingdom, Japan, Holland, Belgium, Germany, and France.
Such probable course of our export trade in the event that
our present tariff relation with the United States is severed
would tend to mitigate the local economic disturbance that
would inevitably follow the abolition of the free trade. The
period of readjustment would doubtless be a painful operation
on our economic system. But we can feel certain that we
would successfully pass over it. The operation itself would
not be lacking in immediate beneficial results. Part of the loss
in government revenues occasioned by the immediate decline
in our export industries would be offset by an increase in
collections from import duties, for we must remember that nearly
two-thirds of our imports at present enter our ports free of
customs duties. Immediately, also, some new local industries,
which cannot now exist or grow because of the overwhelming
competition from American products that they have to face
here, would begin to develop, thus offsetting to some extent
the immediate decline in our export industries.
What should concern us most right now is the fact that the
longer we continue with the present free trade relations with
America, the more difficult and disastrous will be the economic
readjustment that we shall have to undergo when we get our
independence. We have seen how this special tariff arrangement has served as the main pillar of our recent economic
progress. But we should realize that this foundation is uncertain. It will not and it cannot remain permanent. Even
now we are battling against strong, powerful, and well-organized American interests within and outside the United States
who want to restrict the entry of our products there while we
are to continue admitting American merchandise here free from
all restrictions. These agricultural interests in America are
bound to become still more powerful and there is little doubt
that sooner or later they will succeed in curbing the continued
free entry of our products into the United States. But more