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Dollars & Cents. President Quezon could identify his countrymen as among "the least-taxed people in the world" because Uncle Sam has turned back to the Islands excise taxes and customs duties collected in the U. S. on Philippine products. It takes $35,000,000 to run the Philippines for a year. Last year into the Islands' Treasury poured $17,000,000 from excise tax collections made in the U. S. on Philippine coconut oil. On top of that, Congress has authorized a gift of $23,000,000 because the Philippines, reasoned U. S. Congressmen, were entitled to a compensation for the devaluation of the dollar.
In terms of Federal dollars and cents, therefore, the Philippine Territory in its last year had become a heavy liability even measured by the New Deal's generous standards. But the New Deal has hopes of realizing politically on its Philippine investment. In the closing hours of his term as Governor General, red-headed Frank Murphy, onetime Democratic Mayor of Detroit, did not let the fact go unnoticed that he was turning over a Government which was financially impeccable. On the night before Manuel Quezon's inaugural, in a suite at the Manila Elk's Club Frank Murphy took oath as the first ' U. S. High Commissioner to the Philippine Commonwealth. With Manuel Quezon established in the ancient governing seat at Manila, Malacanan Palace, High Commissioner Murphy will depart for the former Governor General's summer home at mountainous Baguio, 160 mi. from the capital. Next year, if all goes as planned, Frank Murphy will return to Detroit, run for Governor of Michigan against the Republican incumbent on the strength of having given the Philippines a BALANCED BUDGET.
Buffer. The Army has long advocated Reason No. 3 for turning the Philippines loose: they are impossible to defend. The Philippine Archipelago is a geographical Milky Way. It contains 7,083 islands, of which only 2,441 have names, only 462 have an area of more than one square mile. They are strung out north and south for 1,152 mi., so that the northermost lies only 65 mi. from Japanese Formosa, the southermost only 30 mi. from British North Borneo. The politically turbulent Chinese coast is less than 500 mi. away from northern Luzon. The Philippines are thus the prime buffer in Pacific diplomacy.
Characteristically, when President Quezon spoke last week of his fears about "intervention of foreign powers," dope-sters who suffer from chronic Japanese Jitters at once flashed apprehensive eyes at Tokyo. Almost the first remark that Japanese Ambassador Saito made when he arrived in the U. S. to take up his duties at Washington was a contemptuous denial that Japan wanted such an "expensive" country. But Japan has many significant interests in the Philippines. Japan is the Philippines' biggest customer for lumber and low-grade help. Japanese colonists, prohibited by law from leasing land, have nevertheless obtained through native wives a large foothold on the Island of Davao. Japanese control the entire Philippine fishing industry and are steadily replacing Chinese as the Archipelago's leading retail merchants.
It was to Tokyo that Benigno Ramos, who roused the malcontent, insurgent Sakdalistas, fled last year. There he has been living under the protection of the potent Seiyukai Party.