Chapter 19

Economic Progress
Under America
• The Filipinos enjoyed a better life under
America than as a colony of Spain.
• Less than 50 years during the American
Era, the Filipinos earned more money,
worked in better jobs and lived in better
houses. More industries were developed,
roads, bridges, schools and other public
work boomed. However, some problems
with our economic life also started
during this era.
AMERICAN ECONOMIC
POLICY
• The Philippines Bill of 1902 declared that
all public land and natural resources of the
Philippines were for " the benefit of
inhabitants". This pro-Filipino policy was
also repeated in the Jones Law of 1916 and
Tydings-Duffie Law of 1934. William H. Taft,
the first American Governor-General, said
that the Philippines was for the Filipinos.
NEW PROSPERITY

Under the practical leadership of America,

the Filipinos enjoy a better life. The New
Prosperity of the Philippines as a colony of
America was shown in the following ways.
• Population Explosion
• New Land Policy
• Agricultural Increase
• Free Trade with America
• Business Boom
• New industries
• Improvement in Transportation and
Communication
• Better Government Budget
• New Banks
• Participation in International Exhibitions
POPULATION EXPLOSION
The population tripled from 1898 to
1939.

YEAR POPULATION
1898 6,000,000

1903 7.635,426

1918 10,314,310

1939 16,000,303
NEW LAND POLICY
The American improved land policy in
the Philippines in three ways.
• Firstly, friar land were resold to Filipino
Farmers. In those days, the spanish religious
order had the biggest share of land.
• The Taft Colonial Administration bought
these frian land and resold them to the
Filipino farmers.
• Secondly, the Homestead Act in 1924 allowed
any Filipino to own up 24 hectares of public
land. This broke up the large haciendas and
gave more land to more people.
• Thirdly, all land had to be registered and
their owner got Torren titles. This is the
certificate to own the land. All land owner in
AGRICULTURAL INCREASE
• In 1902 the Bureau of Agriculture
become the first government agency in
the new American colony.
• In 1903 the American Congress sent a $3
million emergency fund to import rice
and carabao from other Asian countries.
Modern farm tools from the United
States were introduced. The American
experts came to teach hoe to produce
more crops, fight farm pests and market
their products.
 TYPE GROWTH
Total area of farms 3X
Farm animals 3X
Abaca and tobacco 3X
Corn 4X
Rice 5X
Forest logs 6X
Sugar 6X
Copra 9X
FREE TRADE WITH AMERICA
Filipino products entered the United States
without paying customs tariffs. There was a
limited or "quota" to the amount of tax-free
Filipino products. The American products
could also enter the Philippines without
paying customs tariffs but they were not
limited by quotas. The American could
bring any goods here tax-free.
BUSINESS BOOM
Retail trade inside the Philippines also
doubled from 1907 to 1935. Filipinos had
more money to buy food, shoes, clothes,
radios, toys, bicycles and even cars.
However, the Filipinos liked to buy more
imported goods.
NEW INDUSTRIES
• The Industrial Age
– The use of machines and the mass
production of goods in big factories. They
bought this modern system to our country.
– Manila: coconut oil, cigars and cigarettes,
sugar, ropes and textiles.
– Marikina: shoes
– Ilocos: blankets and towels
– Bulacan, Laguan, Tayabas, Bohol, and
Pangasinan: hats and mats
– Pampanga, Rizal and Bulacan: rattan and
wood furnitures
– Albay, Rizal and Laguna: pottery and bricks
IMPROVEMENT IN TRANSPORTATION
AND COMMUNICATION

• The Philippines became an Asian leader in

transportations and communications.
• The use of automobile, electric street car,
airplane, telephone, wireless telegraph, radio
and movies for the first time.
• Developed our railroads in Luzon, Cebu and
Panay.
• More ports for shipping were opened up
• Pier 7 in Manila became the largest port in Asia.
BETTER BUDGET

• The Philippine colonial budget under

Americans had one of the best budgets of
the world. The Philippine budget was
balanced even during the Great World
Depression in the 1930s.
• In 1930s, other government including US
had huge deficits and problems but the
Philippines colonial budget had a surplus.
NEW BANKS

• New banks opened during American era.

• In 1906, the postal savings was
introduced and the Philippine National
Bank was established.
INTERNATIONAL
EXHIBITIONS AND MEETINGS
• The Philippines was projected into the world’s
limelight because of it’s participation in
international exhibitions, conferences and
meetings.
• The Philippine Army Band become world-famous
at the golden gate exposition held at San
Francisco, California in 1939. Filipino
professionals attended international academic
and professional conferences. Filipino athletes
were also be able to join the Olympic Games.
 ECONOMIC PROBLEMS
• The economic problems which started
during the American era were:
1. We sold our raw materials cheap and
brought expensive manufactured
goods from America.
2. Colonial mentality became worse.
3. Labour and peasant unrest spread in
1920’s and 1930’s. The world
depression hit the poor masses
worst at all.
4. American capitalist and businessmen
controlled the new companies.