Filipino Grievances Against Governor Wood Notes

Filipino Grievances Against Governor Wood

Objectives

  • Author’s Background
  • Historical background of the document
  • Analysis of the Text
  • Relevance of the document to the Grand Narrative of History

Author's Background

Gregorio F. Zaide
  • May 25, 1907 - October 31, 1986
  • Filipino Historian and Author
  • Wife: Sonia Zaide (London School of Economics)
  • Education:
    • Laguna High School: Valedictorian
    • UP: M.A.
    • UST: Ph.D.
    • University of Hawaii: Exchange Professor (1937-1938)
Jose Abad Santos
  • Born in San Fernando, Pampanga
  • A pensionado who studied in Northwestern University in Evanston, Illinois
  • Appointed as Undersecretary of Justice in 1921, but resigned during the Cabinet Crisis of 1923
  • During the Japanese period, he was appointed as the acting president of the Commonwealth government
Jorge Bocobo
  • Born in Gerona, Tarlac
  • Studied law at Indiana University
  • Law professor at UP in 1911 and Acting Dean in 1917
  • Speechwriter for Manuel L. Quezon
  • Commissioned as a Cabinet member of Manuel Quezon
  • Appointed as Associate Justice of the SC during the Japanese occupation
  • Principal author of the Civil Code of the Philippines

Historical Context

  • The Jones Act of 1916 or the Second Organic Act
    • Title: AN ACT TO DECLARE THE PURPOSE OF THE PEOPLE OF THE UNITED STATES AS TO THE FUTURE POLITICAL STATUS OF THE PEOPLE OF THE PHILIPPINE ISLANDS, AND TO PROVIDE AN AUTONOMOUS GOVERNMENT FOR THE ISLANDS.
    • Preamble:
      • It was never the intention of the people of the United States in the incipiency of the war with Spain to make it a war of conquest or for territorial aggrandizement.
      • It has always been the purpose of the people of the United States to withdraw their sovereignty over the Philippine Islands and to recognize their independence as soon as a stable government can be established therein.
      • For the speedy accomplishment of such purpose, it is desirable to place in the hands of the people of the Philippines as large a control of their domestic affairs as can be given them without, in the meantime, impairing the exercise of the rights of sovereignty by the people of the United States.

Important features of the Second Organic Act

Article 19
  • Gave the governor-general the right to veto any measure of the Legislature.
  • The legislature could override the executive veto; if vetoed a second time and re-passed a third time, the measure would be sent to the president of the United States, whose veto would be absolute.
Article 21
  • The legislature has the right to alter the duties and size of the existing cabinet (under the commission government).
  • The governor-general has the “general supervision and control of all of the departments and government.”
Article 22
  • Placed all executive functions under the control of the governor-general.
  • Separation of powers among the branches of the government to avoid encroachment of power.

Who is Governor General Leonard Wood?

  • Served as a military governor in Cuba.
  • Arrived in the Philippines in 1903 and served as governor in the Southern Islands of Mindanao.
  • Became a commander-general in Mindanao, particularly in Sulu.
  • Became the Military Commander of the Philippine Division.
  • Chairman of the special mission of investigation with W. Cameron Forbes (1921).
  • Appointed by the Harding Administration.
  • The Seventh American Governor-General

Remarks of Hon. Robert L. Bacon (1926)

  • Bacon: “You believe the Filipinos to be potentially capable of self-government?”
  • Governor-General Wood: “Potentially, yes. But to translate this potentiality into an actuality will take a long time-somewhere, perhaps, between a half and full century. It is a matter of rearing and educating occidentally enough Filipinos to govern the country. There are far from enough now. Young educated people are still a small portion of the population. We need more schools and teachers and a great extension of the English language, which alone can serve as a medium of psychological consolidation among peoples dispersed over thousands of islands and divided by 87 different dialects”

Dickinson to Wood (1925)

  • “I do not believe that the Filipino people can ever be educated for self-government. Will it ever be possible for us to leave the Philippines?”
  • “I am convinced that the Filipinos can never be trained for self-government. My opinion has been confirmed by your 1923 Report. It might come out.”

Government-owned and controlled corporations

Philippine National Bank (PNB)
  • Serves as the major depository of public funds, including those of the central, provincial, and municipal governments.
  • Created to finance agricultural sectors.
National Development Company (NDC)
  • Created to finance other enterprises such as the National Coal Company, the National Cement Company, and the Cebu Portland Company.
  • Goal: to exploit the country’s natural resources.
Manila Railroad Company (MRC)
  • Created during the Spanish colonization.
  • Manages and operates the railroad system in Luzon.

Important Political organs

Council of State
  • Serves as an advisory committee to the governor-general.
  • Composed of the senate president, the speaker of the House of Representatives, and the members of the cabinet.
Board of Control
  • Created by the Legislature in a resolution (endorsed by Governor Harrison) to perform oversight functions on the operations of public corporations such as PNB, MRC, and NDC.
  • Composed of Senators and Representatives appointed by the Senate President and the Speaker.

The Economic and political climate

Economic
  • Economic effects of post-World War I
  • The United States reverted to the pre-world war I economy.
  • The United States cut back on its foreign trade.
  • The sugar industry was affected, and local farmers could not pay their loans with PNB.
Political
  • Patronage Politics
  • In the first year of Wood’s Administration, Filipino politicians cooperated with him.
  • Filipinos wanted self-governance.
  • The Cabinet Crisis of 1923.

The Cabinet Crisis of 1923

  • Ray Conley bribery case.
  • Ray Conley: an American detective involved in offenses such as falsification of documents, bribery, and drugs.
  • Mayor Ramon Fernandez filed a criminal and administrative case against Ray Conley.
  • Ray Conley was acquitted of the criminal charges.
  • Jose P. Laurel and Mayor Fernandez agreed to have an investigation of the administrative cases.
  • Governor Wood intervened in the investigation, formed his own panel, and dismissed the charges against Conley.
  • Governor Wood ordered Jose P. Laurel to reinstate Conley and to award him with the salary he did not receive during the trial and investigation.
  • Jose P. Laurel, the Secretary of Interior, resigned from his post.
  • “The honor to my country and my personal integrity does not allow me to continue.” (Jose P. Laurel)
  • Following the resignation of Jose P. Laurel, other cabinet members also resigned from their posts:
    • Jose Abad Santos (Justice Secretary)
    • Alberto Baretto (Finance Secretary)
    • Salvador Laguda (Commerce and Communications)
    • Rafael Corpus (Agriculture and Natural Resources Secretary)

Patronage Politics

  • Philippine National Bank was used as a campaign tool.
  • Politicians utilized public funds and privileges to favor certain individuals in exchange for political loyalty.
  • According to Katherine Mayo (1924), “loans were awarded to businessmen and politicians closely associated with the majority party in complete disregard of the bank’s financial security.”
  • Katherine Mayo (1924) accused the senate President of issuing 150,000 travel passes, valid anywhere throughout the railroad and valid for the entire year for his family, friends, and other dependents.
  • PNB board members such as Vicente Madrigal, Sen. Vicente Encarnacion, and Manila Mayor Fernandez were investigated for facilitating dubious loans under the authority of the bank.
  • Isidro Lerma, the chief of the bank’s foreign exchange department, was indicted for estafa with Nicanor Karag. Lerma sold 1.85 German marks (foreign currency) to Karag, who then sold it to legitimate buyers at a normal price.

Economic Climate

Governor Wood’s solution/ intervention to recover the economy (neoliberal approach)

  • Reasons to sell the government-owned and controlled corporations:
    1. To free the government from further losses;
    2. To free the government from supporting the companies until they reach financial stability; and
    3. The government should “keep out of business” in order to “encourage, not discourage, private enterprise.”

Possible sale of the sugar central (1923)

Sugar Planters from Negros Occidental
  • Rafael Alunan – He proposed to purchase sugar central under PNB. The price was PHP 34.134.1 Million
  • Salvador Laguda- He proposed that the sugar centrals’ price be set at PHP 2121 million (cash and payable within 6-8 months)
American Capitalists
  • Hayden, Stone, and Company
  • E. Atkins and Company of Cuba
  • 15 years of mortgage bonds (PHP 2020 million)
  • The government will receive PHP 1919 Million

Response of Filipino Politicians

  • They did not approve the privatization of public companies.
  • Manuel Quezon did not want to hand over the government-owned companies to American capitalists to protect the economic heritage of the Filipinos, fearing it might hinder the Independence of the Philippines.
  • The Board of Control and Council of State did not permit the sale of the sugar centrals.
  • Wood’s neoliberal plan was unsuccessful due to adverse economic conditions. He could not sell it at a high price because the economic market was low, and he could not sell when the market was high because Filipino politicians would not authorize the sale.

Analysis of the Text

  • The document was approved by the Commission on Independence on November 17, 1926.
  • The document serves as a protest or a petition letter to impeach Governor Wood.
  • For the Filipinos, the rule of Governor Wood was “arbitrary, oppressive, and undemocratic.”
  • The root cause of the Filipino Grievances against Governor Wood: Executive Order No. 37.

Executive Order No. 37

  • Executive Order No. 37 abolished the Board of Control.
  • It stripped away the power and function of the Filipino legislators to oversee the management, sale, and operations of government-owned and controlled corporations.
  • Board of Control is important to Filipinos because it gave them the power to outvote the governor.
  • Executive Order No. 37 means that Governor Wood vested himself with the authority to dispose of the corporations and he can push through the sale or privatization of the public assets.
  • For the Filipinos, the executive Order was illegal and violated the principle of separation of power. And the Governor General has no power to abolish it.

Relevance of The Document

  • The document shifts the American-oriented study of history to the Filipino perspective.
  • This document shows the reaction of the Filipinos towards the government and the leaders during the American colonial period.
  • The struggle for independence a unifying factor for Filipinos.
  • Filipino politicians and Filipino masses proved that they can govern themselves (they were elected and appointed to government positions. Although, there are bureaucratic problems (legislation and local elites), some of these personalities and laws are susceptible to corrupt practices.
  • The reading of this document should be studied carefully in order to digest the grievances of the people from the sentiments of the local elites (propaganda).
  • Filipino politicians divert the attention of the masses from their corrupt practices.
  • Not all Filipino politicians are corrupt. Those who advocate for clean government with integrity and honor should be acknowledged.
  • Patronage politics is still relevant in today’s society.
  • Crony capitalism
  • appointment of incompetent officials to government positions

References

  • Zaide, Gregorio F. (1990). Documentary Sources of Philipine History. Volume II: Navotas National Bookstore Inc.
  • Onorato, M. (n,d.). Lenorard Wood: His First Year as Governor General 1921-1922. Retrieved September 19, 2022 from, onorato-wood-first-year-governor-general.pdf (upd.edu.ph).
  • Onarato, M. (1964). Leonard Wood as Governor General: A Calendar of Selected Correspondence. Philippine Studies vol. 12, no. 1 (1964): 124-148. Ateneo de Manila University. Retrieved September 19, 2022 from, Leonard Wood As Governor General: A Calendar of Selected Correspondence, Part 2 on JSTOR.
  • Ybiernas, V. (2012). Governor-General Leonard Wood’s neoliberal agenda of privatizing public assets stymied, 1921-1927. Social Science Diliman (January- June 2012) 8:1, 63-82. Retrieved September 19, 2022 from, 6 Ybiernas article 10-3-2012.pmd (upd.edu.ph).
  • Remarks of Hon. Robert L. Bacon (New York). (1926). House of Representatives. Library of the Michigan University. Retrieved September 19, 2022 from, Governor general Leonard Wood and the Philippines. Remarks of Hon. Robert L. Bacon of New York in the House of representatives, Tuesday, February 9, 1926 : Bacon, Robert Low, 1884-1938 : Free Download, Borrow, and Streaming : Internet Archive.
  • No author, (2019). Did you know: July 17, 1923 bribery scandal. Retrieved September 19, 2022 from, DID YOU KNOW: July 17, 1923 bribery scandal | Inquirer News.
  • The Jones Law of 1916, Retrieved September 20, 2022 from, The Jones Law of 1916 | Official Gazette of the Republic of the Philippines.
  • Onarato, M. (1966). The Jones Act and the Establishment of a Filipino Government. Retrieved September 21, 2022 from, https://www.jstor.org/stable/42720121 .