Economic Conditions
The Second World War destroyed many buildings, schools, houses, roads and bridges. Poverty was widespread, many people died. It was an Economic Crisis! In order to address the crisis, the Philippine Civil Affairs Unit or the (PCAU) was created to provide relief for those who suffered during the Japanese Rule.
The American Government under Roosevelt wanted to punish those who collaborated with the Japanese, but Osmena wanted to solve the issue with an open mind. A People’s Court was created to try all the suspected collaborators, those who were guilty went to prison. The collaborated issue divided the society .
The US Government sent Senator Millard Tydings to the Philippines to make a survey on the post war economic conditions of the country, on May, 23, 1945. Senator Tydings recommended the Philippines will be given $100,000,000 for rehabilitation and reconstructions, but the US Congress responded with 120,000,000 for the rehabilitation of public buildings, roads and bridges, 75,000,000 for budgetary purposes, 25,000,000 for the redemption of guerilla notes, 100,000,000 worth of American army surplus to be turned overto the Philippine Government and 60,000,000 loan.
A bill was proposed by the Congressman Jasper Bell of Missouri which provided for the continuance of free trade relations. Goods traded between the Philippines and the US would be taxed five percent tariff which will increase every year until the full 100% was reached in 1974 .Another provision of the law was the parity rights.
The Tydings Rehabilitation Act was signed on April 30, 1946. The bill provided for the amount of 620,000,000 to be given to those who suffered in the war.
There was a condition that no amount in excess of 500$ would be released unless and until an agreement had been reached by the US.
The election for the officials of the Philippine government was set. Manuel A. Roxas won the Election on April 23, 1946, with Elpidio Quirino. On July 4, 1946, Philippine Independence was proclaimed.
