Brain

If Franklin. Roosevelt has the smartest political brain in the U. S., there is no doubt Manuel Quezon has the smartest political brain in the Philippines. Last week Senor Quezon's brain was visiting the U. S., working full speed while its owner was busy in Washington with the Interdepartmental Committee on Philippine affairs. For Mr. Quezon was putting a very delicate case to Assistant Secretary of State Francis B. Sayre, Admiral William D. Leahy, Chief of Naval Operations, Brigadier General Creed F. Cox, Chief of the Bureau of Insular Affairs, Paul V.

McNutt, U. S. High Commissioner to the Philippines, and their advisers.

Senor Quezon's case, put bluntly, was that the Philippines were promised their freedom (after ten years of local self-government) as a result of mixed motives, which in turn had brought about an intolerable economic situation. The Independence Act was supported in Congress by two groups, one inspired by international altruism, the other inspired by national selfishness. Those inspired by selfishness were Congressmen, mostly from sugar-producing States, who wanted to put the Philippines outside the U. S. tariff barrier so as to get rid of business competitors. Into the law they wrote provisions which would institute a series of export taxes on Philippine goods shipped to the U. S.--the equivalent of a U. S. tariff--beginning at 5% in 1940 and mounting 5% a year. Since the U. S. is the Philippines' best market and the Philippines' chief export, sugar, goes almost entirely to the U. S., the Independence Act, as Senor Quezon well knows, is the next thing to sure ruin for the economy of the Islands. But independence means to the Philippines much what isolation means to the U. S. So three years ago when independence was offered, it was politically impossible for Senor Quezon to refuse. Now his job as President of the Commonwealth is to fix it so that Filipinos can eat the cake of independence and at the same time keep the cake of free trade with the U. S.

Last week it looked as if he might gain his ambiguous end when, after several days' conferences, he agreed with the Committee in Washington to create a joint committee of experts: 1) to study and recommend a program "for the adjustment of the Philippine national recovery," 2) to consider the economic merits of advancing the date of complete Philippine independence from 1946 to 1938 or 1939.

However, Mr. Quezon's case took a turn for the worse when the official announcement continued: "It was further agreed that preferential trade relations between the United States and the Philippines are to be terminated at the earliest practicable date consistent with affording the Philippines a reasonable opportunity to adjust their national economy. Thereafter it is contemplated that trade relations between the two countries will be regulated in accordance with a reciprocal trade agreement on a non-preferential basis." As soon as this news hit the Philippines, shares of local companies on the Manila Stock Exchange dropped an average of 12 points. It looked as if President Quezon had sold his country down the river, had done nothing but bring ruin several years closer. Then people in Manila began thinking about Mr. Quezon's brain, and some began to believe that Quezon's understanding with the New Deal might contain a bark worse than its bite. Stock prices recovered.

Just how Senor Quezon was going to turn the not too favorable situation to his advantage, no one last week could say for sure. However, Mr. Quezon, being virtu ally a political dictator and having got from his rubberstamp, unicameral Legislature more power than Franklin Roosevelt has yet dreamed of, recently accepted from his legislative branch full power to raise and lower tariffs. The U. S. might now veto his use of it. If, however, he can get independence or some form of autonomy before 1940, he can with the greatest of ease lower tariffs on Japanese goods. Rather than permit this, the U. S. would probably find it highly advisable to make a trade agreement that would cancel prospective U. S. tariffs against Philippine goods in order to keep from losing the Philippine market to Japan.

Immediately after the conference in Washington adjourned, High Commissioner McNutt (who starts next week for the Philippines) hurried to Warm Springs to put the matter up to Franklin Roosevelt.

Canny Mr. Quezon traveled in the opposite direction to Manhattan. At Columbia University he made an address on the beauties of the Philippine Constitution.

Knowing the importance of the friendship of the gentleman at Warm Springs, he gave particular praise to the provisions of the Philippine Constitution which denies the Philippine Supreme Court power to declare laws unconstitutional without a two-thirds vote, which requires justices to retire at 70. Said he: "There is no possibility in the Philippines for any court to say that if we pass an act regulating the number of hours of labor or prohibiting the use of child labor, or other measures of this nature, that the court will declare the action of the Legislature unconstitutional."

This is indubitably true, if for no other reason than that foresighted Mr. Quezon has appointed only seven justices to his Supreme Court although his Constitution allows for eleven. So he can at any time pack his Court. Said the strutting little autocrat of the Islands: "We have made democracy effective and made it impossible for any one to grab the reins of government and proclaim himself a dictator."

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