February 11, 1936

Morning paper discussed whether Roxas’ refusal indicated a split in the coalition; also announced the resignation of “Mike” Elizalde as head of the National Development Co.

Off at 8 a.m. with Doria and Professor H. Otley Beyer for an all-day trip around Laguna de Bay, thru Rizal and Laguna Provinces. Beyer showed us various sites of his archaeological excavations. Bagas is the oldest continuously inhabited village in the Philippines, dating from neolithic times. He showed us various old Spanish churches on the eastern shores of the Laguna, of which the most interesting is at Morong. The priest who built that in 1640 had evidently come from Acapulco in the galleons –the facade of the tower was designed by him– an odd mixture of Renaissance and Rococo, and with designs of windows and cornices of Maya patterns.

The road around the eastern side of Laguna de Bay has been opened only two years. In my time, this region was a mere backwater gone to decay. But the immense old semi-ruled churches in every poblacion show how rich the church was there in the seventeenth and eighteenth centuries. Beyer pointed out to us underground caves still inhabited today and first used as homes in the iron age. Modern history began there in the twelfth century with the invasion of foreign (Javanese, later Moro) conquerors, who drove the lake-dwellers up into the hills behind. Those whom they dispossessed were of the Indonesian type we know today as Ifugaos, and all the surrounding hills are still marked by the ruins of stone-dyked rice terraces, many of which we examined. We saw in Tanay the old ceremonial tree with a surrounding stone platform, just as is found among the Ifugaos today. The platform had been kept up by the villagers without any thought of their animist ancestors. To the east of us –perhaps 50 miles to the Pacific was “unexplored” country, the home of negritoes and remontados –this belt stretches about 400 miles to the north. We passed the country where the recent bandit campaign was conducted. Then to Pagsanjan –the rich coconut country and so to Lillo on the slopes of Banahao. San Pablo with its crater lake –country with bamboo like those, so Beyer says, in Celebes.

Beyer remarked that the Sakdalista movement is only marking time. That during the recent depression, the people in these provinces were lucky if they made twenty-five pesos in cash a year –that a peseta was big money to them; that they were worked upon by agitators, who ased them whether their conditions had improved in the thirty years of American occupation– then they dwelt on the faults of provincial officials, and told them the two peso cedula tax each man paid went to the rich politicians in Manila for their entertainments and automobiles. The bright spot of it all was that the price of copra had risen again now, and even at the very worst, these people never starved –they could live off the country.

We had passed over the high hills on the peninsula of Jala-Jala made famous by La Gironiere; the hinterland is still uninhabited, and the jungle comes right down to the new mountain road.

When, in 1913, I first met Beyer he was stationed among the Ifugaos and has, I am told, an Ifugao wife –so, I asked him questions about what “modern” civilization had done for them in a quarter century. He said that the situation was delicate –that they had three grievances: (1) government interference with their tribal customs; (2) sanitation and (3) schools.

That having a sense of humour, they laughed at themselves over the new sanitary regulations, but that the school question was difficult. The first barrio schools were introduced there by Secretary Denison in my time, say 1915 or 16 –then the elders of the villages were begging for schools– they promised to build the house for the teacher and to feed him. About two years later, they began to balk and to withdraw their children –these formerly had learned at home to play at building rice terraces and Ifugao houses –something useful for every Ifugao to know, but now they were learning to play baseball, or basket ball– things useless for an Ifugao. Besides, they were taught in school to despise some of the immemorial customs of their parents. Finally the only children who were allowed by their parents to go to school were those rounded up by the policeman and marched there. Then came the burning of the teachers’ houses and reprisals of a burnt village by Governor Dosser.

At Morong (or was it at Pillia?)  the young parish priest, namely Prince Troubestskoy who recently succeeded the Baron de Steuer, came down from the convento and begged us to enter and “have a whisky” because he had no beer. Then he asked Beyer to give him the dates of his church, and Beyer replied –foundation in 1585, church really started in 1640– fortifications around it in 1696.

Beyer said that in San Pablo there had been 15 couples, rich Filipinos who had married American wives, who made up a society of their own. Only two of these marriages had been conspicuously succesful. He and I agreed that a mixture of races produced the greatest social and mental movement –that a pure race tended to become mentally stagnant.

To diversify the diet and elevate the morale of the mountain peoples, Beyer advocates goats and sheep –the only animals which could live in those mountains– there are no beasts of prey in the Philippines.

Said the problem in Nueva Viscaya was the two thousand square miles inhabited by the Ilongots –among them no Christians cared to settle, and the one thousand square miles now densely inhabited by Christians.

Apparently, Beyer is now writing busily, a task to which I have often nagged him.

Further observations by Beyer were:

Roxas is very ambitious and is unwilling to risk being Secretary of Finance with the prospect of an unbalanced budget –also, the political situation in the United States may influence him.

The Spanish priests under Legaspi (1560-90) brought the remontados, (Ifugao type) down from the mountains on the Pacific coast to settle again in their former homes on the lake-side whence the Moro pirates had driven them out a century or two earlier.

Dean C. Worcester and David P. Barrows fell out in 1904, and the Department of Ethnology was tossed about for years like a baseball.

J.D. Rockefeller, Jr. was taken out for a ride from Pasig towards Montalban in 1922 by the advice of Dr. Heiser –the road was always 6 in. deep in dust, and there was lots of tuberculosis– Rockefeller offered to pay the cost of a new road; Governor Wood declined the offer, but the road was built by the government.

Governor General Stimson took the funds set aside for the new bridge we had planned across the Pasig above Malacañan for some other public works project in which he was interested—hence the traffic jam and dangerous situation of Ayala bridge which is being now, since a year, incompetently and wastefully doubled in width.

When we passed Muntinlupa, where the new “Bilibid” is being established, I told Beyer how Santos had already planted one hundred and fifty prisoners who are picked men, to labor there, without guards. Doria expressed surprise, but Beyer joined me in explaining that the “criminal classes” in the Philippines contained very few of our type of jail birds –that many of them were there for offenses artificially created by Spain or American taboos and entirely at variance with their own traditional standards. That in consequence, in most cases no great stigma attached among them to a prison sentence.

Beyer also said that Paredes was an Indonesian type, not unlike the Hawaiian which is frequently in Ilocos; that Bocobo was probably a negrito type –rather snappy  for the President of the University of the Philippines!

February 3, 1936

Dinner at Malacañan for Cabinet–Doria wore her new black dress which was a great success, and Quezon asked her chaffingly if she was in mourning for King George? Corpus, President of the Philippine National Bank, sat on one side of me, and spoke con amore of how I supported him as Director of the Bureau of Lands against American attacks. He said Secretary Denison only supported him when, as Governor General, I ordered it. I urged Corpus to write his memoirs–he said he had been a newspaper reporter for five years before I appointed him as Director of Lands, but that his own style was only anecdotal.

Talked with Under-Secretary Albert, who remembers not only the Philippine Revolution against Spain, but later on an interview he had with President Wilson; he came back here sharing a cabin with Quezon when I arrived in the Manchuria in Oct. 1913. He said that Quezon was much excited when he secured my appointment as Governor General through Secretary of State William Jennings Bryan in 1913–he then said: “now we are sure to get independence.” Albert gave Doria some complimentary accounts of me as a public speaker.

After dinner, I talked for a half hour with the President. He told me of his difficulties in appointing Judges, and said that Osmena had urged on him the nomination of Rafael Palma to the Supreme Court. That he (Quezon) had wanted to appoint him, and had consulted Chief Justice Avanceña and other Justices–that they had been rather non-committal, but when Quezon returned from Baguio, and asked them again about Palma, the Supreme Court Justices had meanwhile heard Don Rafael Palma argue a case before them and were now certain that he was not qualified to be a Justice. Quezon said that Osmeña had asked for an appointment with him every day for a week, and that he had given every excuse, especially that he was tired, until it was too late for Osmeña to interfere again. Osmeña then told Quezon that they were better able to select the judges than was the bench. I called his attention to how Osmeña had nearly wrecked by administration by his insistent recommendation of Venancio Concepcion as President of the Philippine National Bank. We agreed that Osmeña was a bad judge of men. I called his attention to the efforts I made for five years to induce him (Quezon) to break with Osmeña. He replied: “It took me twenty years.”

Osmeña had also persistently tried to get an appointment with Quezon to argue in favour of Aldanese. Quezon and I agreed that the Collector of Customs was personally straight, but Quezon said he had been put in an awkward position by Governor Wood. I complained that the Philippine Government was full of graft, and asked whether it was not because Governor Murphy has had his head in the clouds. Quezon said, “no, you must not think that of Murphy”–that the original fault was with Governor General Wood–that corruption was rife under him. That his successor, [sic] Governor General Davis had announced in a speech in Honolulu that he was going out to the Philippines to clean up graft in this country. That while Davis was here, he never knew anything at all about the country.

The announcement of the Government’s decision to cancel the lease of the arrastre to Simme & Gilke had subjected Quezon to a perfect bombardment of letters of protest from Americans. They state that the lease of the arrastre to the Manila Terminal Co. under Governor Wood had greatly improved the freight service at the Manila docks. Quezon said that perhaps it had not been done any too well before but that he was going to turn it over to the Manila Railroad Co. and have Paez manage it; that the Manila Terminal Co. had been making 500,000 pesos a year out of it. That they had offered Aldanese a large salary for extra service with the Manila Terminal Co.; that Governor Wood had permitted him to accept; [that it was “unethical” for the Collector of Customs to have another salary from a business firm.] This practice had been stopped November 15 under the new constitution.

Quezon next talked about the (Baguio) Constabulary Academy case, where he had just dismissed eight of the cadets, including his own nephew, for hazing and had transferred Colonel Johnson, the Commandant. The cadets whom he had examined personally concerning this case, had replied that they thought the regulation against hazing was a dead letter. I told him how President Thomas Jefferson in the last year of his life had ridden down from Monticello to the new University of Virginia and had dismissed his own two nephews (my great uncle Cary and his cousin Carr) for a student prank. He said he wished he had known of this, for he would have cited it as a precedent in this Constabulary case.

January 13, 1936

Left with Quezon, Colonel Santos and Mayor Posadas for the new site of Bilibid Prison at Muntinlupa, near Alabang, Laguna. We travelled in a motor which never went over 30 miles an hour, with motorcycle cops in front and behind. When we got there, we shifted to Quezon’s Ford armored car which has bullet-proof (apparently glass) windows. He says that when goes incog. to the provinces he always travels in this Ford alone with Colonel Nieto who has a machine gun with him –Quezon carries a revolver on those trips. He says Encallado, the dead bandit, reported that he saw this car pass in the mountains and could have shot Quezon. Quezon comments he wished he had tried.

I asked him about the Ayuntamiento –he stated that the Marble Hall was to be given to the Supreme Court.

He began to talk about Rodriguez, Secretary of Agriculture. He said he had talked too much in the press –had quoted Quezon concerning the Japanese hemp leases in Davao, which caused the Japanese Ambassador in Washington to enquire of the Secretary of State if it was true that Quezon had consulted him about it. Hull truthfully replied “no.” But the worst was, Quezon had rebuked Rodriguez for talking to the press and had announced his own policy concerning the leases of hemp lands in Davao, Rodriguez had published in the press his own defense as Secretary of Agriculture, instead of giving the paper to the President. Quezon said he would have to remove him, unless he crawled –that he was particularly sorry to do so because Rodriguez was an energetic worthy man, and had done more for his (Quezon’s) election than any other individual. He is moreover a man who has made good in his own business life. He thought Rodriguez would be better as Secretary of Labor.

Quezon said he had talked so much while he was in the Senate –he was now going in for action.

He also said he had already adopted my suggestion and was abolishing all “law” divisions in the bureaus and obliging the Bureau Chiefs to consult the Attorney General or the Secretary of Justice.

The President stated further that the Japanese question resolved itself into a dilemma –either to avoid showing them that the Filipinos were antagonistic to the Japanese, or else to let them occupy the islands industrially; that one of the leading Japanese had passed en route from a ceremonious visit to Australia (a pretext) and that he (Q) had been ill (also a pretext) and postponed seeing him until the last minute. That this Japanese had dismissed the Japanese Consul General from the room during the interview. That Quezon had told him very frankly how the Filipinos felt about their lands, but had put off trade discussions. We talked of the purchase by the Government in my time of the Sabani ranch on the remote east coast of Luzon. [Quezon remarked that this was “blackmail” by an American who had acquired it when he was a Judge of the Philippine Land Court.] That the United States Senators who had raised a fuss about the possible purchase of it by Japanese had been inspired by that man.

Said also that the Filipinos had blocked the use of this man’s ranch to the north of Sabani (now W.H. Anderson’s), by closing the land access to this property.

Quezon said Harding had been very fond of him and liked his opposition to Governor General Wood –that if Harding had lived longer, Quezon would have gotten rid of Wood sooner.

I asked him about the vast iron fields in Surigao which I had reserved by Executive Order for the Government. He said he had already had nibbles from the Japanese and one of them was coming here soon about that, but ostensibly on another errand.

P.M. Becker from Aparri appeared with his two sons asking to have them put in the Philippine Army. Saw General Reyes and think it is fixed.

At my request, former Speaker Manuel Roxas came to see me. Said he was going to his province tomorrow to consult his people as to whether he should accept the post of Secretary of Finance. I told him I had been requested by Quezon to ask his opinion of the plan to use part of the Government currency reserve and exchange standard funds (which are 4 times larger, together, than required by law) to purchase silver at the present low rate, and by issuing silver certificates at a “pegged” rate to make a vast sum for the Treasury –he objected first because the price of silver might go lower on account of the very artificial market for silver in United States, and secondly because they might lose (part of) the 2 million pesos of interest at 2% now obtained in the United States.

He next asked me what I was doing in relation to the Friars haciendas –I told him and he seemed satisfied except as to the constitutionality of my proposed Land Commissioner’s decisions fixing tenure and rents. He observed that the English constitution was not written as was that in the Philippines. I replied that the Philippine constitution gave to the Government the right to expropriate Friar Lands –“yes” he said “and the right to adjudicate relations between landlord and tenant.” Well, he said, “we might do it by establishing a Landlord & Tenant Court.”

Roxas then speculated on the result of the next presidential elections in the United States. Said that if a conservative Republican were elected, he might listen to Stimson,  Davis & Hurley on Philippine policies, but not if a man like Borah were elected. I said, yes, the West is for getting rid of the Philippines, but I thought F.D. Roosevelt was going to buy his reelection by the expenditure of public money and that my grand-children were going to be burdened 50 years hence in repaying the debts incurred by F.D. Roosevelt’s joy ride.

Talk with Reyes, new Chief of Staff of the Philippine army –tired and old, and unaggressive, hardly able to cope with new problems.

I asked Quezon whether there was any plan afoot to recreate the Government of the Department of Mindanao and Sulu –he said that he was not sure, but feared it would be considered as a “step backward” –he intends to accomplish the same object by designating some one member of the Government to act for him– that nobody realized how great under the constitution was the power in the hands of the President of the Philippines.

I wonder why Osmeña is laying so low nowadays?

January 11, 1936

Having failed yesterday through lack of organization of his staff to get an interview with Quezon, he asked me to lunch today. Advised him to have a written list of visitors who have been granted interviews, and if possible, limit them to 10 minutes each, when an a.d.c. should be hovering in the door.

He was talking with Colonel Santos about the removal of Bilibid –he had just seen the municipal board and in a few minutes persuaded them to sell to the government a 1200 acre tract near Alabang, and Santos was instructed to begin to move the prisoners immediately. This is a speed record! Quezon told me that it was a remark of mine a few days ago which started this quick action, for I had commented “Oh! moving Bilibid –we have been talking about that for 25 years!” Quezon also said he preferred Executive to Legislative work because you could “get things done.” He and Santos and Vargas were then talking of the appointment of Generals in the new Philippine Army, and several additional names were mentioned –Quezon said impatiently “Oh! no –we will have more Generals than soldiers!” He and I then had lunch alone on the veranda, where I struggled with the ankle mosquitoes. Quezon said he was inviting the Supreme Court Justices in relays to luncheon to investigate their views on human as against property rights, without their knowledge of his purpose; that if they were already fixed on the bench he would not feel authorized to enquire into their views, but that it was his duty to appoint (or reappoint) within a year the whole lot of them, and he did not intend to do so unless they satisfied his views on “liberalism.” He said that, so far, he had no cause for dissatisfaction.

We then opened up the discussion of the Friar Lands etc., which was the main purpose of the meeting. I said Colin Hoskins would want 1000 pesos a month for half-time work and he replied that was all right. I told him we were ready to start our secret investigation of the estates at once, and that the recent Herald article stating that I was studying the road system (the exact opposite of what I had told the reporter) was a good “smoke screen.” I asked him if he really intended to buy all the estates, and he said he did not know. I suggested that he get the “three F’s” act passed first and authorize a Board of Land Commissioners to handle the whole subject –to buy or not, as seemed best, to but to fix rentals and tenure wherever they could– not to try to abolish all tenancy. Some of these tenants were not fit to be freeholders, and that was probably why in the disposal of the former Friar Lands in Cavite the real occupiers of the farms had in many cases been ousted or suspended by outsiders. He agreed that we should not try to upset too violently the whole system. So he said if I would prepare the subject, he would call the Assembly in special session in February for 3 days to pass the law –adding with a smile that the Assemblymen would enjoy the Carnival.

The President said he was going to throw open his “bridge or poker club” underneath Malacañan three afternoons a week to the Assemblymen so that they could drink and play there, and keep out of the gambling houses. That this would also give them a feeling of part ownership of the Palace. He asked me how to raise the money for the proposed Board of Land Commissioners to operate and I suggested that he buy silver at present low price and issue silver certificates, which he could buy the law do on a much higher capital figure. This would be a moderate inflation, but I was in favour of a little inflation if we could get the money in circulation and not let it accumulate in the banks. I told him of Dorfman’s remark that there had been no real prosperity whatever among the bulk of the country people in the Philippines, and he thoroughly agreed. I said if really hard times come here it would be principally among the present small class of rich people –that the country people were able to live as they do, almost from hand to mouth. He asked me to see Roxas.

He mentioned Secretary of Labor Torres, and said he bored him –was too theoretical– always reading what they were doing in Germany and wishing to apply it here without knowing whether it is applicable or not. Wanted to get rid of him: “he reads too much.”

I told him his (Quezon’s) personality was stimulating –that he had his staff scared but that was a good thing– nevertheless his agents carried out his wishes. He said he knew that was how he got things done. Told him his strongest characteristic was the “will to create,” which explains his love of buildings –that when a building was finished he lost interest in it.

Quezon then asked me why I had requested him to see Jaronilla which he had agreed to do. I replied “to save his face; he is a candidate for the Court of Appeals, but I know you will not appoint him.” He then said he would explain the situation to me, that he did not wish to be unjust, and I would agree with him. Jaronilla was Attorney General under Governor General Wood, and when the Board of Control case came up, Wood cabled Washington for the opinion of the Judge Advocate General of the Army, which when secured [he handed to Jaronilla to use as his opinion; Jaronilla, instead of balking because his opinion had not been asked as the law requires, accepted that handed him.] This was in the middle of the fight which as Quezon says “landed General Wood in the cemetery and me in a sanitorium.” I had to agree that Quezon’s decision was right. “Besides,” he added, “he is a rotten Judge –he can’t write a good opinion either in English or Spanish– his wife has to help him. If I had a post to offer as snipe-shooter for the Government I would give it to him.” (N.B. Jim Ross also told me that Jaronilla was not a good judge). Quezon then said the Wood-Forbes Report was full of lies, and insulted the Filipinos, who were at least equally responsible with me for my government. He also said there had been Filipinos who had given up everything to oppose Wood, and cited Laurel and Santos. He said that when Jaronilla’s name had been sent to the United States Senate for the Philippine Supreme Court, he (Quezon) had blocked it. He said he did not hate a single Filipino who had opposed him in all innumerable fights, but did hate three Americans: Gibbs, Cotterman and W.H. Anderson.

January 2, 1936

At office. Quezon’s bureau filled with candidates for the Court of Appeals. Visit from Judge Jaronilla who explained his own position: he had been Attorney General when he gave a decision that the “Board of Control” was unconstitutional –which opinion was sustained by the Philippine Supreme Court and by the United States Supreme Court. He was afterwards nominated for the Philippine Supreme Court on Wood’s recommendation. Nomination was sent to the United States Senate and not acted upon (Jaronilla says due to Quezon) –since then he has been uniformly loyal to Quezon– voted for him this year. Says he has been “punished” enough, and now should go on the Court of Appeals instead of being passed over in favour Judges whom he himself as Attorney General had promoted to the bench. Was trying to see Quezon. I told him how very strongly Quezon felt on the issue of the board of Control, and told him there was little hope. Tried to get Garfinkel to push him in to Quezon.

At night, reception at Casino Español for Quezon. He looked very smart in full dress with a Spanish decoration. He said he had put out a statement in the press assuring Americans that in general they were not to lose their positions in the new government; repeated how the Bulletin editorial in behalf of retaining American Supreme Court Justices had induced him to accept their resignations at once. Complimented Colin Hoskins on his paper on the organization of National Economic planning and said “We can use him” (Hoskins). Said he had been sick all the afternoon but was very cordial and pleasant.

December 21, 1935

Contribution to the Tribune by Pedro Abad Santos commenting on Roy Howard’s article. A very shrewd analysis of the present situation. So far as Quezon is concerned, I do not really know his views of the future –I discard that part of Santos’ article which deals with the working classes, for while now suffering from economic depression, they are certainly on a much higher standard of living than any others in tropical Asia.

Conversation at his office with J. Ross. He supplied the key to the puzzle –everything clicks now and falls into place:

(a) Quezon’s reticence with me

(b) The Roy Howard interview

(c) The good impression wished to be created by the purchase of Manila RR. bonds from the English Company

(d) The unwillingness of Blunt to accept Quezon’s house in Pasay at a very reduced rental

(e) The embarrassment of Blunt over the interview the London Times man (Stevents) had with Quezon etc., etc.

(f) The anxious enquiries Quezon made of me as to the utter dependence of England upon holding her Empire together etc., etc.

This is haute politique indeed. J. Ross told me that Quezon is in favour of independence if that is safe (so is J. Ross!) that at the moment he is badly scared over Japan; that England appears to be an “anchor to windward” (words mine); that three years ago Quezon told him that the United States was going to “kick us out” and Quezon was then in favour of going to London to talk with the Foreign Office; J. Ross told him that the Foreign Office would not talk with him. That Colonel Frank Hodsoll told J. Ross that he (Hodsoll) had been asked by Quezon to talk to the British Ambassador in Washington and had done so.

J. Ross and I agreed on the reasons for the attacks on me here –that I was believed to be in favor of quick independence and that they believed my own Government here had damaged business (Wood-Forbes Report); J. Ross thought it would die down soon. Elizalde’s opposition to me was due to his jealous wish to have a controlling influence over Quezon.

The most surprising symptom I have found here this time is the utter lack of self-confidence among the Filipinos!

J. Ross asked me if I did not think Quezon could lead his people into a Protectorate –I said he could lead some of them, but that denial of independence was a cartload of dynamite.

Doria left at noon en route for the Mt. Data Christmas party of Heine Schradieck of the Standard Oil. Amazingly enough, I remember how I had interned Schradieck together with the other Germans in the Philippines when we entered the World War in 1917.

Saw Secretary of Agriculture Rodriguez, former Governor of the Province of Rizal, concerning the dispute between Binangonan and Cadorno municipalities.

Saw the President at Malacañan at 6 p.m.; he was about to start for the National Assembly which was ready to adjourn. He was in the barber chair now established in the Palace and he received my account of my interview with Blunt with alert interest. His mind was taken up, however, with a pending dispute between the Jesuit Friars and their tenants on some unspecified hacienda. He said he wanted me to help him on it, but what he really desired was a sympathetic audience before which to express his own views. Secretary Yulo was waiting in the next room and joined in the conversation. Quezon said he had sent today for Araneta, the lawyer for the Jesuit Corporation, to prepare the ground before he should see the Administrator of the Corporation tomorrow; that agrarian troubles on this hacienda might result in bloodshed; that he (Quezon) was in favour of justice rather than the law; that these families of tenants had cleared the land and had lived on it for generations –that they practically owned it and had more moral right there than the Friar owners who had not paid originally for the land and had not spent any money on its development. (I interjected the view that as the Friar orders had then been the government they had practically given these lands to themselves, as was customary in Frailandia –that the situation was like a chapter out of Noli Me Tangere –“yes,” Quezon said, “except that now there is no Spanish Governor General to order out the troops.”) Quezon said he told Araneta he would not evict the tenants who had not paid rents and that he would not send the Constabulary to defend the Administrator; that, pending the purchase by the Government of these Friar lands (or alternative measures) he considered the tenants had more moral rights than the Friars –that if these people were dispossessed more “communism” would result; that he did not care to make any public statement of his views, because in this case there might be outbreaks instigated by demagogues.

During the morning, Quezon had signed the National Defense Act in the presence of Osmeña and MacArthur –movie taken of same.

Jim Ross told me he understood “Mike” Elizalde was out as head of the National Development Co.

December 10, 1935

Long talk with A.D. Williams at Malacañan about the reorganization of the government. He gave me a chart showing a reduction in the number of the provinces, based on topography and roads –which would save nearly half of the expenditures on provincial governments. We discussed many bureaus and buildings for the same. He said that the retirement of surplus officials as proposed by the law of two years ago was not carried out. I asked him if he would serve on a committee to work out a plan, if I could get Palma also? He consented.

Saw Quezon for one hour in Pasay –says he has had frightful pains in his stomach, and thinks that milk does not agree with him; therefore, he ate a dinner of oysters, fish, chicken, four vegetables, and a sweet! An awful diet for stomach ulcers! Then he became very natural and lively. Said his 1st pardon had been for adultery, and that he would not allow a man to remain in prison for an offense he had so often committed himself. I told him he must cast responsibility for administration on his cabinet –said he proposed to do so, and that is why he has just announced the rule of only two cabinet meetings a week, because they had fallen into the habit of not giving an increase of salary to an employee without cabinet consent. I told him there was much corruption in the government. He agreed and said that was why he had jumped so hard on the Director of Commerce, in connection with the importation of rice –as a warning to all minor employees. We arranged a program for a committee to reorganize the government. Then I asked him about nationalization of industries. He said they must do it; but should begin by an economic review, and then inform the public. If capital was not forthcoming to start the necessary industries, the government would undertake them, and later offer them at public auction to private business.

Quezon then said he had told Roy Howard that, except Taft, I had been the only Governor General who had done anything permanent for the islands. That his break with Osmeña had started with his objection to the latter’s “pussyfooting” and support of Wood. That Wood tried to sell the Philippine National Bank and the Manila Railroad; that if he had done so, it would have lost 100,000,000 pesos for the Philippines; that his fight with Wood killed Wood, and nearly killed him (Quezon). (Doria had had a conversation this same day with Roy Howard’s son, Jack, who on this trip south spoke of the extreme loyalty of Quezon to me –[adding that Ora Smith would weep copious tears and at the next instant knife a man in the back).]

President Quezon spoke well of Foley of the Philippine National Bank and of Yulo. Said he (Q) was informed of a lot which goes on, because he has three agents in Tom’s Dixie Kitchen; that he knows all the racketeers in his Government, and will outwit them. He added that he was going to direct only the policies of the government, but I wonder?

November 26, 1935

Long talk with Rafferty in the morning re industrialization in the Philippines.

Golf at Wack-Wack with Jim Rockwell in the afternoon.

Appointment at 7 o’clock at Malacañan with Quezon. He has a sala (or office) next to his bedroom over the front door (where my bedroom used to be, but now reconstructed). He was cheerful and in good form; very friendly. He said he was off tomorrow for a couple of days in Laguna to look into this Encallado banditry. I told him it sounded like the days of Rizal’s books; he said the Constabulary had slipped back in the last few years –thought it a defect in Governor General Murphy’s administration. (Later Osmeña and I expressed to one another a wish that Quezon might not be known to take the matter too seriously.)

Quezon again voiced his irritation with Major General Parker. I said I was sorry to see General MacIntyre leave; he said that he, too, was sorry, but that MacIntyre was determined to leave and retire as Trade Commissioner. He had been quite knocked out by the recent death of his wife. Quezon plans to manage so that MacIntyre remains in the service.

We then discussed my appointment as Adviser on Communications and he asked me also to help him in the reorganization of the government. He is to put me in touch with Quirino and Paez on the purchase of the Manila RR. bonds from the English.

9:30 pm ball at Malacañan—about fifty extremely nice people—the only Americans there besides ourselves were Roy Howard, his wife and son and the High Commissioner and family. The dance was given for Judge Murphy who returns home tomorrow.

Had many interesting conversations —with General Valdes, Miguel Unson and Colonel Paulino Santos. The latter is opposed to the appointment of Moros to govern Moros; said it is better to give positions to bright Moros such as fiscal etc., to serve up here in Manila.

Teahan was amusing about the boredom of Baguio. Osmeña danced every dance; Quezon only one tango. Drinks were served on the balcony; Garfinkel, a.d.c., says that no drinks were offered at big parties following the custom initiated by Governor General Wood. I arranged, at wish of Quezon, to have Nick Kaminsky stay on as superintendent at Malacañan. Ah King whom I brought from Shanghai as my servant was installed again at the Palace as number one “boy”.

November 2, 1935

An hour and one-half’s conversation with Quezon in Pasay —he is still in bed but is better. Had him to myself as the others were at the pier greeting the arrival at 9:30 a.m. of Secretary of War Dern. Quezon again expressed a thrill at my recent reception by the public here —said it was genuine and not manufactured— he had nothing to do with preparing it. He added that they would have “murdered me” with kindness if it had not been for the preparations for the inauguration. Described may incidents of the Wood and Stimson administrations —Said he might have— if he had not himself as Resident Commissioner learned to know the real sentiments of American people. He added that Stimson was rough and direct and pounded the table. Said he (Q) loved Stimson —he always kept his word and told the truth.

Stimson, said Quezon, offended the Americans here by refusing to consult their opinions —he told them that he represented the United States and what he wanted to learn was Filipino opinion. He described the successful fight Stimson made here to put the foreign banks under the bank examiner. He had told Jim Ross and the Manager of the National City Bank of New York that they were obstructing his Government. Had Manager of the National City Bank transferred out of this country and told them that if the bank did not remove him, it would not have the backing of the Department of State, when he took up his post of Secretary in Washington. Quezon remarked with a laugh that when Stimson left here, the local Americans would [have] elected me (the writer) President if Stimson had run against me. When I offered to leave “unless he had something more to say to me,” he hesitated then opened up as follows:

He told me that I was to be a guest of the Government for one month; and after the inauguration, he would make me one of his advisers —the work to be defined later—I was to fix my own salary—he wanted me with him, and thought it would make a favorable impression on the people but did not seem positive of that. (I suppose he feels that my welcome here is a sentiment which might be diminished if I took any work here.)

Then he talked of the Governor General and remarked that it was an outrage that Nick Kamisky, the old caretaker of the Palace, was being taken away from Malacañan but that he wanted my servant Ah King as his butler. The he talked again of plans he said were being made by Murphy for future work of the High Commissioner here.