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March 7, 1942

Yesterday Manila so exhausted itself with a rash of rumors that I heard none worth mentioning today. Paco Gutierrez did say, "It will cost Japan many men to take Bataan," which coming from him is a lot. We knew Corregidor had stout defenses but the ability of Bataan to resist has surprised many. A friend of Gabby, an AG&P engineer who worked on the foundations of the Bataan and Corregidor guns, said that as long as MacArthur has food and ammunition the Japanese wouldn't be able to take Bataan, but once Bataan falls Corregidor would follow within 15 days.

The Tribune reiterates that business is gradually returning to normal. It's not. The Astoria does well because Schaer is holding prices close to prewar levels. Those dealing in canned goods, liquor, bicycles, tobacco and such are doing okay but most are not. A few are "investing" in these goods to protect the value of their money, and it's pushing prices up including, unfortunately, the price of medicines. One bright light is the Remedios Drug Store: its owner refuses to sting the public. He should be remembered for it after the war.

There's much trafficking in liquor. Even the cops do it through a civilian blind. A Spaniard has cornered the supply of bicycle lamps and doubled the price. Even Red Star is now selling inferior bike tires at high prices. And speaking of Berg, he was always a Filipino citizen when asked by the banks, but when the Japanese entered he broke out in a half-dozen Swastikas.