The Rotary Balita no. 761 (January 13, 1955)

The year 1955 will be a bright one for trade and industry. This according to Cesar M. Lorenzo, director of the Central Bank import and export division, in a speech delivered before the Manila Rotarians at the first meeting of the year on Jan. 6. "The new year holds better prospects for our economic prosperity," Lorenzo told Rotarians, and cited President Magsaysay's plan to provide means and incentives to bring idle domestic capital into productive use as one of the several factors as the basis of his optimistic forecast. He also revealed that Philippine economic attaches abroad are constantly seeking new markets for local products, and that Central Bank Governor Miguel Cuaderno has made observations that investing and financing elements abroad have shown "new interests" in the Philippines. Leonides S. Virata, vice-president of the Philippine American Life Insurance Company and member of the Monetary Board of the Central Bank of the Philippines, told Rotarians that "the stage is set for vigorous financing of various government projects such as roads, communication facilities, training programs and self-help projects." He suggested four measures to increase the resources of private financial institutions in encouraging a higher level of private investments as follows: 1.) Transfer of money in safe deposit boxes to banks by exempting bank deposits up to a certain date from the scrutiny of the internal revenue; 2.) Capital gains tax be repealed or modified; 3.) Life insurance premiums be made an allowable deduction from the income tax; and 4.) The revamp of Philippine postal savings. Ben Calleja, president of the Business Writers Association and business editor of the Chronicle, also painted a rosy picture of the business prospects for the New Year. After hearing the three speakers, many Rotarians agreed that the year 1955 will in all probability be better than 1954.