Practically everyone in town is getting the news again. Many are having their radios fixed by very same mechanics who reconditioned them before — many still on the Japanese payroll. The Japanese must know we're listening because they're jamming the 1800 San Francisco broadcast heavily.

The deflation I foresaw some time ago but thought wouldn't happen is definitely on. The Japanese haven't started spending yet and everyone is tightening their purse strings; frivolity is out, essentials are in. Rice will go from P150 to P500 a sack within a few months, and even P1,000 later this year. How will people eat then?

Tribune: Laurel waxes lyrical over Bigasang Bayan. He wants the Japanese to turn over "control and management" of transportation to the Republic. He said the Gabaldon family of Nueva Ecija offered 180,000 cavans of palay to the government, "with or without compensation." The problem is that it's over there. A cartload of bananas over there would be worth 100 times more here! Laurel asks for time before judging his new government: "I am not God," he said. Don't we know it!