March 7, 1936

Photographed by Arellano for Malacañan. Quezon wishes to hang up photos of Taft, myself and Murphy as the three Americans most closely connected with significant chapters of the American occupation. Arellano told me that everywhere confidence in Quezon was growing–that he was a real leader.

Papers contain notices about two matters showing the results of slowness in the administration. 1st, the rice regulation by the Government. The dealers claim that Quezon had acted too slowly to benefit them as intended. 2d, Quezon has suspended the Governor of Albay because he would not come to Manila to answer as to why the Provincial Board had reduced the cedula tax from two pesos to one. But it seems that the resolution of the Board had been before Quezon for so long without action that it became effective without approval!

Long talk with Manuel Concepcion on the currency; we agree that Paredes had lost his fight in Washington against the repeal of the law authorizing the payment of $23,000,000 to the Philippines for the gold devaluation, because he argued on sentimental grounds instead of giving exchange and commodity prices, the best he can do now is to get action by Congress suspended until proper arguments can be presented later on.

American republicans of the Philippines had their political convention to select delegates to their National Convention. Selph and Marguerite Wolfson were the spokesmen. They have learned very little in 36 years of progressive defeat on the Philippine question. They still hope to turn back the hands of the clock. They did not come out against “independence after ten years” but denounced the economic provisions of the Tydings-McDuffie Act.

Doria describes the hopelessness of trying to shop in establishments where Filipinos serve. They are obstinate, disobliging and arrogant. Always answer to any enquiry that “we haven’t any of that”–will never compete successfully in the retail trade with Chinese, Spanish and Japanese.

Attended dinner of Yale graduates of Philippines in honor of Yale men promoted recently: Justice Jose Laurel, Judge Delgado, Secretary of Finance de las Alas, Assemblyman from Marinduque and Celeste, the Secretary of the National Economic Council. A lot of real fun and a very pleasant evening.

Bridge earlier with Colonel Lim, Tan and Nazario at the Philippine Columbian Club–good game.

Did not attend Tommy Wolff’s gigantic reunion of “Old Timers.”

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).