SPEECH
-OF-
Hon. Pablo Ocampo de Leon
RESIDENT COMMISSIONER
FROM THE PHILIPPINE ISLANDS
Opposing the Free Trade Relations between
the United States and the Philippine
Archipelago, provided in the
Payne Tariff Bill
Delivered in the House of Representatives
Washington, Friday, April 2,1909
PRESS OF SHAW BROS.
WASHINGTON, D. C.
SPEECH
OP
Hon. PABLO OCAMPO de LEON
of the philippine islands
Opposing the Free Trade Relations between the
United States and the Philippine Archipelago,
provided in the Payne Tariff Bill,
DELIVERED IN THE HOUSE OF REPRESENTATIVES
Washington, Friday, April 2, 1909
The House being in Committee of the Whole House on
the state of the Union and having under consideration the
bill (H. R. 1438) to provide revenue, equalize duties, and
encourage the industries of the United States, and for other
purposes—
Mr. Chairman : The Payne bill establishes a system of free
trade between the United States and the Philippine Islands
of a nature entirely new. The novelty, in my opinion, con¬
sists in that while American products would be admitted
into the Philippine Islands without any limitations, Philip¬
pine importations into this country are restricted in so far
as our sugar and tobacco are concerned. The lack of abso¬
lute reciprocity in that provision of the bill makes it inequit¬
able, inasmuch as the Philippine Islands, considered a poor
and small country, are under the protection of the United
2
States, a gigantic Nation and a herald of wealth. And, be¬
sides, even if free trade were to be established in its strictest
sense—that is, a reciprocal exchange of products between the
United States and the Philippine Islands, without barriers
for one and elasticity for the other—it is evident that the
effects would be disastrous and would involve grave con¬
sequences for the Philippine Islands.
As soon as such measure becomes operative it would im¬
mediately cause, in the first year, a decrease in the customs
revenues of about 6,000,000 pesos, from which revenues the
Philippine government obtains the greater portion of its
income for the support of the administration. This decrease
would augment every year as foreign importations gradually
fall off, owing to the advantageous position which American
products would have in the market, a position which, in the
long run, inevitably would annul foreign competition.
Living under the protection of this country, the Filipinos
would willingly grant the greatest preference to American
products were they not convinced that such preference means
the ruin of their own country. Once foreign goods are
driven from the Philippine market, the importer of Ameri¬
can products would control the situation, and, following the
usual practice in trade as seen in the past and in the present,
he will despotically dictate the prices to the detriment of the
consuming public who shall be enslaved even in their most
pressing needs.
Exactly the same happens in this vast continent at these
historic moments. This House of Representatives is at
present revising the tariff in pursuance of a general demand
from the people, who for so long have been compelled to pay
exorbitant prices for the domestic products, imposed under
shelter of a highly protective tariff, owing to the enormously
high duties levied upon foreign goods and which make the
American markets inaccessible for them. Now, is it not a
relief to the consuming public which is sought in the revision
3
of the tariff? Why, therefore, inaugurate in the Philippine
Islands a similar situation as the present one here, when
such situation for yourselves is no longer tolerable ?
We have a few industries in the bud which will be affected
through the influx into the islands of American goods, and
whatever latent tendency there be to increase the manufac¬
turing power of the country in the future, such tendency
would be discouraged when the products of all kinds of this
country are admitted free into the Philippine markets and
control of these go to the hands of the mighty trusts, against
which no struggle is possible once they are given complete
control of the situation. And, as I said before, the decrease
in the customs revenues would inevitably compel the Philip¬
pine government to go into bankruptcy, because there are no
other sources from which to obtain revenues and meet its
financial obligations.
The internal-revenue taxes in force in the islands can not
be increased without making them odious to the taxpayers,
who, having undergone all sorts of calamities through which
the economic conditions of that country have been subjected
for the past ten years, are already exhausted and unwilling
to be taxed any more. On the other hand, the budget of
the Philippine government can not be radically decreased, for
reasons obvious to the upper branch of the Philippine legis¬
lature. The assembly, in its initial session, undertook to re¬
duce the appropriations of the insular government, inter¬
preting thus the long-felt wish of the people; but little was
accomplished when finally the appropriation bill came from
the upper house. The reason that has always been alleged
in opposition to reforms of this kind is that the reduction
of the high salaries paid to American officials would involve
the risk of the government not having competent men to
serve in the administration of the islands. This fear ought
not to exist, for the Filipinos are capable of holding respon¬
sible positions at much less salary than that paid to Ameri-
4
cans, were the government only to do complete justice to the
native, who, in whatever position he may have been placed,
has always proven that he knows his business.
Furthermore, viewing the question under its political
aspect, is not there a danger that the future independence of
the Philippines would be hindered by the ties consequent
upon the establishment of free trade ? The trusts and other
corporations that would establish themselves in the Philip¬
pines, encouraged by free trade, will oppose a formidable
barrier against Filipino freedom. With elements of this
kind to contend—elements against which the American peo¬
ple are at present struggling with no seeming success—the
economic ruin of the Philippine Islands and the premature
death of the political ideals of the Filipinos are a sure pre¬
diction. I say this not as a mere opinion of mine. I am
here voicing the feeling of my people expressed through
their representatives, and- to verify it I shall read to you a
cablegram sent by the assembly to my colleague, Mr. L,e-
garda, and myself. The cablegram was worded in Spanish,
but I will read to you a translation of it:
Manila, March 28, 1909.
hagarda and Ocampo,
Filipino Resident Commissioners, Washington:
Assembly in yesterday's session unanimously passed a
resolution insisting on action taken on May 19, 1908, as ap¬
pears in joint resolution No. 11, protesting respectfully and
energetically against proposed free trade, making it known
to Congress that legislature finds absolutely impossible to
raise new revenues. Resolution was immediately sent by
special message to Baguio for concurrence by commission.
Entire tert will be wired to Secretary of War after passage
by legislature.
Nieva,
Secretary, Philippine Assembly.
[Applause.}
5
The resolution to which the above refers reads as follows :
First Philippine Legislature, First Session.
Joint resolution n.
Joint resolution giving instructions to the Resident Com¬
missioners to the United States as regards the abolition of
the Dingley tariff and other matters.
Resolved by the Philippine Commission and the Philip¬
pine Assembly:
1. That the Commissioners of the Philippine Legislature,
resident in the United States, shall endeavor to secure from
the Congress of the United States the abolition of the Ding-
ley tariff on the following goods or merchandise, and under
the conditions hereinunder specified:
" (a) On sugar, restricting importation, for the purposes
of the abolition of the said tariff, to 400,000 tons.
"(b) On unmanufactured tobacco, restricting importa¬
tion, for the purposes of the abolition of the said tariff, to
1,ooo,ooo pounds.
"(c) On manufactured tobacco, on cigarettes, and pica-
dura manufactured in the Philippines, and of cigars manu¬
factured in the Philippines, without limitation or, restricted
af ihe most, to the quantity of 1 go,000,000 cigars."
2. That an effort be made to secure said abolition of the
tariff without special concessions.
j. That the said Commissioners shall also endeavor to
secure the removal of customs duties on agricultural ma¬
chinery, apparatus, and implements, machinery and appa¬
ratus for making or repairing roads, and on steam plows.
6
This resolution of the Philippine legislature, whose upper
house is mainly composed of competent and distinguished
Americans, is in keeping with the sentiment and wishes of
the people, reiterated in the recent unanimous action of the
assembly—that is, that free trade will result highly pre¬
judicial to the interests and welfare of the Filipinos.
To conclude: If really the retention of the Philippines is
not done with the object of exploiting them, but to uplift
and liberate them, as heretofore admitted by the American
people and believed in good faith by the Filipinos, this House
of Representatives should not pass section 5 of the Payne
bill, which provides for a free trade between this country
and the Philippines. The only reciprocity we ask is that
our sugar and tobacco be admitted here free of duty, even
to the limited quantities set forth in the bill, and in exchange
allow all agricultural machinery and implements of United
States manufacture free admission into all ports of the
Philippine Islands.
After the Philippine Islands become independent, free
trade would be more advantageous to both countries. The
United States would be able then to reimburse herself,
through the commerce that would be established between the
two countries, of all the expenditures consequent upon the
occupation of the islands, and the Filipinos would be in a
better position to develop the resources of their country;
Therefore, taking advantage of this opportunity offered by
the close connection of the political aspect which the ques¬
tion bears upon its economic view point, I ask in the name
of my people—better still, I request in the name of the
8,000,000 inhabitants of the Philippines—imploring in the
most respectful attitude, that Congress adopt a resolution
granting to the Philippine Islands their independence, if not
now, at least after a definite number of years. In this way
the American people will sanctify the noble work of liberat-
7
ing the Philippines as it liberated Cuba and other countries.
[Applause.]
Mr. GOULDEN. Mr. Charman, will the gentleman from
the Philippine Islands yield for me to make a statement?
First, I wish to extend my congratulations on the able speech
which we have just heard. At a public'dinner given in the
city of Washington, the present President of the United
States, then Secretary of War, said in the course of a speech
in regard to the Philippines that on his reaching those
islands as the newly appointed governor he was informed by
excellent authority that if he could get the influence and the
support of the gentleman who has just addressed us [Mr.
Ocampo], he would have no trouble in pacifying the people
of the Philippine Islands and bring them under the influence
of the laws of this country. [Applause.]