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.

48 INDEPENDENCE CONGRESS PROCEEDINGS

poses, we shall suppose that they cannot continue and that
instead of the dessicated coconut and the cordage, we shall export only the copra and hemp used in these manufactures.
The total value of the hats exported from the Philippines
in 1928 was P6,717,000; of these, P4,560,000 worth was
sent to the United States and the rest to different countries,
especially to Europe. Free trade being discontinued, the hats
will have to pay a duty of from 25 per cent to 35 per cent
ad valorem and it is to be feared that when they are placed on
the same footing as the hats from Panama and Asiatic countries,
the hat industry, will suffer much. On the other hand, fashion is a very important factor in the hat business, and the
increased or decreased demand for Philippine hats is even now
greatly dependent upon fashion. Some of the dealers in hats
believe that the industry may be able to survive the cessation
of free trade, if it is organized on a stable basis. Our estimates
assume a 40 per cent decrease in the exportation of hats.
The manufactured shells exported were worth P863,000.
This business will probably suffer a substantial reduction during the first years, but it is of relatively small importance.
After free trade, we have the economic factor of the expenses
of the Army and Navy. At the moment that the Army and
Navy of the United States leave the Philippines, our merchants
will lose very important customers. The annual expenses of
the Army and Navy in the Philippines are estimated at
P30,000,000. But not all this money is spent in the Philippines, because a goodly portion of it is spent in the United
States and in China. Neither does it represent the revenue
to our public treasury which the importance of the sum may
lead one to believe, because at present the post exchanges do
not pay any internal revenue taxes, and in accordance with
an opinion of the Judge Advocate General, the contractors supplying the Army do not pay any taxes either, even upon
articles for the personal use of the officers and enlisted men.
It cannot be denied, however, that the discontinuation of
the disbursements by the Army will bring about an embarrassing situation in places where the members of the Army
and Navy are wont to spend money. But this situation does