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.

46 INDEPENDENCE CONGRESS PROCEEDINGS

Of these products, only sugar, tobacco, embroidery, oil,
cordage, dessicated coconut, manufactured shell, and hats will
have to pay customs duty in the United States. The export
value of these products subject to duty in America amounts
to P170,251,000.
Of the 570,000 tons of sugar exported in 1928 from the
Philippine Islands, 534,000 tons were sent to the United States,
their value being P91,000,000. The cost of production of
Philippine sugar is about P8 per picul and it will be impossible
to sell in New York without losing if 4-1/2 centavos duty per
pound, or P6.25 per picul, has to be paid on the sugar. Col.
Hodsoll, of Warner, Barnes and Company, has estimated that
if the 1928 crop had been sold in competition with the Javanese sugar, the producers would have lost not less than
P30,000,000. If free trade is discontinued abruptly, we shall
have to sell the sugar then on hand at a loss of probably 40
per cent and subsequently we shall be compelled to produce at
a reduced cost or engage in other production. In either case,
it is believed that the sugar districts will produce not less than
P55,000,000 to replace the P95,000,000 at present earned by
them through the exportation of sugar.
What has been said of sugar may also be said of tobacco.
The value of the Philippine tobacco exported in 1928 was
P17,142,000, of which 54 per cent, or P9,228,000 was sold
in the United States. The customs duty on cigars in the
United States is $100, or P200, per thousand, which will
positively eliminate the Philippine cigar from the American
market. On the other hand, the importation of tobacco, which
in 1928 was valued at P6,202,000, will in all probability also
cease, and the consumption of local tobacco will increase, so
that the falling off in the tobacco business will probably be
reduced to some P5,000,000. The Government will also have
its revenue reduced by approximately P800,000, this being the
United States internal revenue taxes on manufactured tobacco
imported into that country, which taxes the sovereign country
has until now graciously ceded to the Government of the Philippine Islands.