February 22, 1936

Holiday. An hour with Sam Gaches in his office where he told me at my request the whole story of the Mineral Resources Mining properties. Excellent and vivid 40 minutes talk by him on rediscovery of the ancient Chinese mines of 500-1,000 years ago in Camarines Norte. Gave all the difficulties of mining in that region (Labo) and said it might be a “flop” “but”–with a gesture–“it drives you crazy it looks so good.” Said all mines in the Philippines except those in actual operation, like Benguet Consolidated, were “hooey,” meaning, a speculation only as yet–but added he believed the Paracale–San Mauricio–Labo district was destined to become the great gold fields of the Islands.

Had a talk yesterday with Palting, who has made a survey of the executive offices at Malacañan since inauguration, and he reports four times the volume of business compared with the days of the Governors General–but, he added, this was mostly due to the different boards engaged in reorganizing the Government.

Saw also Colonel Antonio Torres, Municipal Councillor, candidate for appointment as first Filipino Chief of Police of the City of Manila. He seemed downcast and said to me “My career is ended”–I replied “No! it is just beginning”–that afternoon’s papers carried the announcement of his nomination to head the Police Department.

Saw also Dr. Calderon, Director of the Philippine General Hospital–he is old and failing–walks with a stick. He is the senior surviving appointee to office made by me as Governor General.

Long talk with Colin Hoskins on currency problems in the Philippines. He had two hours with Weldon Jones this morning on the silver purchase. We also went into constitutional questions; the United States under Roosevelt; and the administration. Colin asked why Jim Ross and I could not support Roosevelt.

Doria’s dinner here tonight. Colette Guest, Kuka Guest, Mr. & Mrs “Shiny” White, Andres Soriano, Jim Rockwell, Paco Oleaga, Evelyn Burkhart who is to marry Paco in a few days, Tony McLeod, Young Hoover, Florence Edwards and Commander MacDowell. Dinner not well cooked. Orchestra dismissed by Doria as no good, so we went on to the Polo Club dance and had a gay evening. Mr. & Mrs. Gaches had a large dinner party there on the lawn–with the Rectos and Buencaminos. Doria said the Army crowd mournfully regretted that the last stronghold of the Palefaces was now invaded. Mrs. Gaches told Doria how difficult her social-political work on the committees was, because the Filipinos with whom she served were so casual–not to say rude!

February 7, 1936

An hour in the morning at the office with Manuel Concepcion, in my time Secretary of the Philippine National Bank. He told me of his father’s conviction by the Courts (as President of that bank) and his own sentence by a divided, and perhaps influenced court; [Johnson and Malcolm seem to have railroaded him] –aided by bed-ridden Chief Justice Araullo, who should not have written the opinion. Manuel is now engaged in placer mining in Abra, and says he takes out enough gold for his living expenses every year and added: “I don’t need a Government position.” Interesting talk on the currency situation. He advocates fixing the ratio between gold and silver, and proposes dissociating the Philippines from the American dollar. Says inflation, and further devaluation of the dollar in the United States is imminent. Believes they mean to raise the price of gold to 45. Says Warner, Barnes & Co. are instructed to invest their cash in Benguet Consolidated for a big rise. Thinks Philippine currency should be based on silver, and sufficient gold dollars held only for all foreign exchange.

He commented how Quezon is rising rapidly through good government.

Had an appointment with Quezon in the afternoon, but he did not return until very late from his official visit to the English Admiral and went straight to bed–exhausted. Garfinkel said Quezon had ordered a launch the duplicate of the Admiral’s, for official visits; that he went aboard the yacht Yolanda and at once wished to have a ship like that; he enquired of the Captain who told him of Lady Yuill’s which was for sale at Glasgow. Wishes to take it up through the British Consulate. Florence Edwards has seen this yacht and says it is “wonderful.”

Osmeña is broke, and is worried about the behavior of his sons by his first marriage. Osmeña’s present wife, however, is a rich woman (Limjap).

January 30-31 & February 1-2, 1936

Dull, uninteresting days, in spite of the tropical beauties of which Conrad and Maugham write. Quezon busy all the time selecting the judges for appointment to the new Court of Appeals. He is evidently bent on cleaning up the old government of which the moral fibre has softened in recent years. My having secured an interview with hm for Jaronilla was not a success (tho I knew he was not going to appoint him on account of Jaronilla’s weakness before Wood when he was his Attorney General). Quezon announces that the two judges (unnamed) who sought promotion from him personally had thereby disqualified themselves!! Quezon’s list of “clean-ups” since inauguration are on

(a) Rice imports

(b) Graft in sale of clipper stamps

(c) Oil leases

(d) Sevilla in United States punished as an oil share pusher

(e) Baguio cadets caught hazing dismissed –including Quezon’s own nephew

(f) Bandit suppression

(g) Attack on jueteng gambling and

(h) Dismissal of Judge Paredes –this unversally popular.

Jim Ross says that Quezon is being much more careful about women nowadays.

Trip with Doria and Florence Edwards February 1st to Tagaytay ridge –sensational view down on Lake Taal & the volcano –ideal site for bungalows for week-end.