India about 1*3,500,000 annually for meat and work stock. It 

 is probable that there is enough grass and forage of fair nu- 

 tritive value going to waste each year in the Philippines to pro- 

 duce all the meat that is now imported from foreign countries. 

 Besides, if the waste places and mountain sides were closely 

 pastured the year through, there would be less frequent and less 

 serious locust infestations. 



With almost limitless forest resources, the Philippines last 

 year bought more than =f*=l,000,000 worth of lumber outside of 

 the Islands. 



Last year purchases were made outside the Islands aggregat- 

 ing 1*25,000,000, on which the people of the Philippines paid 

 an import duty of some 1*5,000,000, all of which materials the 

 Islands are capable of producing without beginning to tax the 

 resources of the soil or people. 



The articles sold from the Islands are principally raw mate- 

 rials, which support manufacturing industries and give em- 

 ployment to labor in other countries. For example, one of the 

 important benefits of the coconut industry is lost when copra 

 instead of coconut oil is exported. By exporting oil instead 

 of copra, a home industry would be developed, a substantial profit 

 now going almost wholly to people outside the Islands would 

 be saved, and the coconut cake would be left at home as an 

 excellent food for poultry, hogs, and horses. 



It is good business for a people to produce as nearly as pos- 

 sible everything they need and to buy outside of the country as 

 few things as possible. A favorable trade balance is essential 

 to the development of a new country, to furnish the means with 

 which to build schoolhouses, highways, and new industries. 



The credit of the people is limited and the interest rate is 

 high in a country that has a poor soil, an uncertain climate, an 

 unstable government, defective land titles, or low labor income. 

 Yet this is just the kind of a country whose people are least 

 capable of paying a high interest rate or of supplying their own 

 capital. 



The Filipino farmer sufi'ers the natural and irremediable hand- 

 icap of floods, droughts, and typhoons. He suffers also from 

 the remediable handicaps of defective land titles and a small 

 family income. He sells the products of his labor at an inop- 

 portune season and at a low price and buys his supplies in small 

 quantities at a high price. Whatever may be said of him as a 

 producer, the Filipino farmer, like the American farmer, is 

 more successful as a producer than he is as a buyer and .seller. 



The Government should as speedily as possible remedy the 



