401 
would be an insurance against total failure ; and, if the venture 
proved successful, would be recovered wholly or in part in the form 
of export duty; although, having regard to the financial conditions 
of the country and the importance of this subject, I should not re- 
gard it as a fatal objection to the proposal if it was attended by the 
sacrifice of material wealth on the part of Government. 
7. Among other crops, the cultivation of which might be en- 
couraged in this manner, I would mention bananas (for the produc- 
tion of flour and fibre) cassava, sago, arrowroot and other starch- 
yielding plants ; ground nuts as a source of oil and oil-cake, castor 
oil and croton oil, aiso citronella, cinnamon, lemon grass and other 
essential oils ; the various plants producing the dye and tanning 
materials of commerce, and, if suitable machinery is forthcoming, 
ramie, sisal-hemp, bowsti ing-hemp, and many other valuable fibres. 
8. The advantages that would accrue from such a scheme as I 
have outlined above are: firstly, that the small producer would be 
assured of a ready market, and knowing it to be under Government 
control would be induced to avail himself of the opportunities thus 
afforded for disposing of his produce at fair market rates. I am of 
opinion that had a central factory under Government control ex- 
isted in Kiang some five or six years ago, when a deal of attention 
was being paid by small owners to the cultivation of coffee, that 
not one of those estates would have been abandoned, as the cul- 
tivator would have been able to deliver his crop at such a factory 
and procure cash for the same , for even with the present low price 
of coffee the Manager, after allowing for a small margin of profit 
on curing and shipping the coffee, would be in a position to buy 
the “cherry” at a price which would enable the native to upkeep 
his estate. 
Another advantage to the planting community and to Govern- 
ment indirectly, would arise from the fact that we should be able 
to place a superior product on the home market when prepared by 
the aid of modern machinery, which would earn a reputation for 
the country. In this connection I would remind you of the wonder- 
ful strides which are being made in the preparation of tropical 
products in the hatter parts of America, methods which will no 
1 doubt be extended to the Philippines at no distant date, and which 
will undoubtedly leave the native agriculturist in the lurch. 
9. It may be argued that such a scheme as the one suggested 
would enter into unfair competition with private enterprise, but the 
fact should not be overlooked that the scheme itself would be to a 
great extent, the result of private enterprise, tenders being called 
for in the customary manner. 
10. The importance of educating'small settlers in the underly- 
ing principles of tropical agriculture cannot be over-estimated, 
though I have very little faith in such procedure at the present 
juncture, for it is of little avail, I considered, teaching a man how 
by extra care»and trouble he may secure a large crop than his 
neighbour, if he cannot rely upon finding a market for his produce 
\Br 
4A 
