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Postwar Problems and the Republic Osmena issued an Executive Order setting

maximum prices for goods sold in liberated areas.

The damage done by the war of the Since there was money in circulation, the people
Philippines and the Filipinos was incalculable. purchased whatever was offered in the markets.
There was a basic problem about economy. there was grumbling but the people had no other
Damaged infrastructures had to be rehabilitated and alternative than to acquiesce to the whims of the
reconstructed. The problem of collaboration also profiteers.
faced the government. The United States lend a
helping hand through giving materials and financial Re-organization of the Government
aids to the Philippines on condition that the
Philippine Constitution should be amended in order
to give the Americans parity rights in the
exploitation of the countrys natural resources. President Osmena re-organized the
government to make it responsive to the imperative
Postwar Economis Condition needs of the nation. On March 7, 1945, he signed an
Executive Order providing for the restoration of the
executive departments of the government as they
existed before the war. On February 27, the Order
The destructive effects of war have left their was dated. On March 8, Osmena swore in the new
imprint on the economy. The income of the members of the Cabinet.
Filipinos sink radically and the means of livelihood
were reduced. The destruction of property, including The Congress Convened
work animals result to poverty. The damage to the
different industries was estimated amounted to
about Php. 582,500,000, while domestic assets
sustained a reduction of about Php. 798,767,595. Most of the important affairs of the
Various industries suffered great losses: *rice Php. government should have been handled by the
140,291,000 *mining Php. 121,210,000 *sugar Filipino officials, but McArthur, a man of action
Php. 94,590,000 *livestock Php. 81,203,000 The and of a military temper, actually made the
farms lost some 30% of their implements. The important decisions for Prsident Osmena. McArthur
source of power to operate the farms was only 60% belived that Osmena was too slow and wanted
of the prewar level. Livestock was reduced by about Congress immediately convoked, for the American
65% resulting to scarcity of food. Facilities for Governments policy was to restore constitutional
irrigating farms were either destroyed or left government in the Philippines. On June 9, Osmena
unrepaired. Large areas of agricultural land were called a special session of congress. Manuel A.
neglected. Roxas whose ambition is to be president of the
Philippines, immediately spoke for the so-called
The Philippine Civil Affairs Unit collaboreationists by declaring that all men who
were employed during the Japanese occupation
were actually loyal to the Commonwealth
Government. Osmena, who was faced with the
The American army promptly created the difficult problem of rehabilitation and
Philippine Civil Affairs Unit. This agency provided reconstruction wanted peace within his Nacionalista
speedy relief for all of the people of Manila and the Party. On May 26, Roxas instructed his men to
provinces. PCAU organized food distributing center launch his candidacy. The Congress held a
in Manila and the provinces. PCAU also provided demonstration to the Malacanang to compel
employment to laborers and provided consumer Osmena to promise them back pay, but the
goods to wholesalers at fixed prices. President President, more realistic and honest. Roxas cocked
his eyes to the presidency, promised that if elected rehabilitation and reconstruction. It voted for
he would recommend the passage of a Back Pay 120,000,000 dollars for the rehabilitation of
Law. In 1948, the law was approved, promised to buildings, roads, and bridges. To put Philippine
give three years back pay to all prewar government finance on a sound basis, the American Congress
employees after the end of ten-year period in 1958. also passed a law providing for 75,000,000 dollars
for budgetary purposes and another 25,000,00
The Collaboration Issue dollars for the redemption of guerrilla notes. The
American Army surplus, worth one billion dollars
but with a scale value of Php. 100,000,000 was
turned over to the Philippine Government. The
The line of conduct Osmena was to follow United States Reconstruction and Finance
with regard to the question was laid down for him Corporation granted a loan of 60,000,000 to the
by President Roosevelt when. In 1944, it was stated Philippines.
that those who collaborated with the enemy should
be removed from authority and influence over the The Bell Trade and Rehabilitation Acts
political and economic life of the country. On
September 11, American Secretary of the Interior
Harold Ickes reminded Osmena, in a cablegram, of
the late President Roosevelts policy regarding On July 4, 1946, the proclamation of the
collaboration in his statement of June29, 1944. In Philippine independence was settled matter. On
September 1945, the American Agency, the September 26, 1945, Congressman C. Jasper Bell of
Counter-Intelligence corps (CIC), handed over to Missouri introduced a bill providing for free trade
the Commonwealth Government all the detained relations between the United States and the
political prisoners. Big names in the Philippine Philippines for a period of twenty years. In October,
political scene were set fee upon the the suggestion Senator Tydings introduced another bill providing
of both Osmena and Roxas. In 1946, the brilliant for an eight-year free trade relations with the United
book of Senator Claro M. Recto Three Years of States. After much discussion, the bill was
Enemy Occupation, cause those who wanted all approved. The Bell Trade Relations Act, provided
collaborators jailed was weakened. In 1946, Roxas for free trade relations between the United States
won the presidency and solved the collaboration and the Philippines until 1954, after which goods
issue by proclaiming amnesty to all political coming from the United States and the Philippines
prisoners. would be taxed five percent tariff increase every
year until the full 100% was reached in 1974. The
American Financial Aid American Congress passed the Tydings
Rehabilitation Act as a complement to the Bell
Trade Relations Act. President Truman signed the
bill into a law on April 30, 1946. The Rehabilitation
Senator Millard Tydings, co-author of the Act provided for an outlay of 620,000,000 dollars to
Tydings-McDuffie Independence Act, was sent to be given to those who suffered damage during the
the Philippines to make the survey. On May 23, war. The effectivity of the Rehabilitation Act was
1945, Tydings arrived in Manila and intended to conditioned by the amendment of the Philippine
stay for four weeks. Tydings recommended that the Constitution in such way as to give parity rights
Philippines be given 100,000,000 dollars for to the Americans.

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