Air of repose in the Executive Building—when Quezon is in Malacañan the whole place is like a beehive.
Visit from Sandiko. An interesting type, apparently of mixed ancestry: Chino and Moro. He reported on his investigation into Friar Land questions in Bulacan: says the purchase by the Government would benefit chiefly the hacendros; somewhat also the tenants who had added from two to four hundred pesos value per hectare to the land–the aparceros also would gain some slight benefit. They now pay 24-40 pesos rent per hectare which goes eventually to the hacenderos but is not entered on the estate books; if they can raise 70-80 gantas of palay per hectare, the aparceros now get only about 20-30 of it for themselves–not enough on which to raise a family. He says usury in one way or another is universal, and that a system like the “Raffeisen” must be introduced here. Says all wealthy Filipinos invest their money in land, not in industries or mines, for they know how to get much more for it thereby. He wants to break the power of landlords and to free the small man who is now a sort of slave under a feudal system. Says our Rural Credit Association under Prautch broke down because the caciques borrowed all the money intended for the aparceros, Sandiko says they may have him killed, but he is not afraid.
Visit from Don Vicente Singson, who came at Quezon’s request, to talk with me over the suggested purchase of silver at 45 cents with part of the “gold” (i.e., United States dollar) credits in the United States. Singson is opposed to this because silver is so uncertain, being now a by-product of other mining. Is in favour of a gold standard for this government. Is also strong for the Philippines having its own currency standard–free from the United States dollar, being suspicious of the latter. Two years ago, when he was Secretary of Finance, Singson went with the mission to the United States, and finally persuaded the War Department to agree to separate the currency system here, but was not informed of their decision for six months and meanwhile had left the post of Finance for private business. Says the change of system must be made while the Philippines are still under American sovereignty, so as not to alarm the public. He wishes to have a central bank here, such as has been introduced in “succession states” in Central Europe–thus making the government able to regulate and prevent raids on the gold supply. Has heretofore been opposed by other bankers here, but they have now come around to his view. Thinks Quezon does not understand these questions, and he admits it. Laughed at the Chinese irony over Kammerer’s regulations. I tols him my story of Yuan Shih Kai in 1915. Singson says he is convinced the United States will give the Philippine independence “whether the Filipinos want it or not,” and that they must prepare for it now.
Golf in p.m. at Caloocan with Fox, Jollye and Sinclair. Bridge 7-2:30 a.m. here with Guevara, Dr. Bangui and the younger Palma. Good game–they are better performers at the Culbertson system than are the English or Americans here. At supper, Guevara launched forth on his favourite subject–the absorption of the Philippines by Japan. Says that altho’ the two raced are related they really have nothing much in common–“but our grandchildren will.” Cited a recent statement by Vice-Admiral Kenkicki Takahashi, Commander in Chief of Japanese combined fleets as follows: “It is likely that Japan’s economic advance in Manchukuo, soon will reach its limits, and, therefore, the Empire’s future commercial expansion must be directed to Southern Seas, with Formosa or the mandated islands of the Equatorial Pacific as bases. In such event, the cruising radius of the Japanese Navy must quickly be expanded so as to reach New Guinea, Borneo and Celebes.”