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.

44 INDEPENDENCE CONGRESS PROCEEDINGS

will always stand for the fulfillment of the promise given by
the Congress of the United States in the Jones Law.
II
Wre shall now speak of the Budget of the Philippines in its
financial aspect; that is, as an estimate of the probable receipts
and disbursements of the Government under the circumstances
which may be expected to prevail in the Philippine Islands when
they are granted independence.
The income of the Government is intimately interwoven
with the economic situation of the country; that is, with the
national income. To estimate this income, it is indispensable
to analyze the influence which the change in the political status
of the Philippines will exert on her economic conditions.
The economic life of a country is based on the biological
necessity of its population to exist and work for 'its welfare
and it is subject only to the fundamental economic laws. However, very important political phenomena, such as independence,
may exercise a great influence upon the economic life of a
country, particularly when they entail changes in its commercial
relations.
The economic factor of prime importance now existing in
our relations with the United States, the discontinuance of
which will cause serious troubles when Philippine independence
shall become a fact, is the free exchange of products between the
United States and the Philippines. As a natural precautionary
measure, there will be a temporary restriction in financial and
commercial transactions, until business will have adjusted itself to the new state of affairs. The added expenses of the
Army and Navy, now borne by the United States, will also
cause some disturbance.
How these changes will come, is something that no one can
predict with certainty. Will independence come all at once or
gradually? The United States granted independence to Cuba
three years and a half after it had been formally and specifically
stipulated in the Treaty of Paris. It is also a well-known
fact that the United States granted Spain ten years to continue
her trade relations with the Philippines. As a matter of fact,
the Philippine Tariff Law was not amended, neither was free