The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-12-03
FINANCES Of PHILIPPINES.
REPORT OF SPECIAL COMMISSION.
ER WHO INVESTIGATED THEM.
Mexican Dollars the PRINCIPAL Mon
ey In Circulation, and Much Diff
Aculty VIII Follow m Attempt
to Change the Standard fn Use.

WASHINGTON, Dec. 2-Mr Edward W.
Harden, who was appointed Ira August last
commi ssioner OF the United States 20 make
an investigation of the financial ard In
dustrial conditions in the Philippines has
made his report &c the secretary OF the
treasury In the course OF which he says
silver Ii the base of currency in the
Philippines. There Is no gold In general
circulation and has been none for more
than twenty years. The Mexican dollar
OF date previous 10 iss9 is current in the
isiancs and IL IL practically the only money
In general circulation. The Spanish gov
ernmsut In the summer OF 1857 coined S.
10000 o1 silver In a local currency which
was sent to the islands These dollars are
lighter IN welghf han the Mexican dollars
but scarcity of money in the Philippine
islands caused them 10 be quickly absorb
ed. There is iocas note-Issu1ng bank
called The banco Espanoi Filipino. which
has I'm circulation notes based or silver.
OF which there Was outstanding on Septem
Der 3D. isss. approximately $4,000.
Previous TO 1915 the silver Was csten az
. premium over gold. When silver began
10 dsprec.ate In value, the gold coin was
rapidly exported and replaced by the Mex
lean dollar. which has for a long time been
IN general use throughout the Orient. Gold
became so scarce. through the export Of
the gold coin. and the silver sas taking
It's place 10 rapidly that the Spanish gov
eminent took steps 10 stop the expor1a-
ton OF the one and the import OF the
other. In the spring OF isss. an ediet waz
Issued from Madrid prohibiting the i'm
port OF sli silver dollars bearing a date
subsequent TO is71.
For the ordinary needs OF the country
little money Is used, as the credit gysts III
is in vogue throughout the islands and
there is. therefore no great amount OF
money needed for the payment OF wages
To the laborng classes The law which
prevented the importation OF the Mexican
dollars of date subsequent 10 1871, proved
"a great hardship 10 the business interests
and would have been greater evil had II
not been for The iaSity of officials which
permitted and encouraged smuggling. il
was not uncommon for the dollar 30 go 10
premium of 10 or u per cent. and this
would Immediately start the no. of silver
toward the Island which would Ac con-
tinned until the demand was met and the
rate or exchange was reduced TO a point
al which smuggling ~ai.d cease being
profitable. The smuggling Of silver into
the islands was recognized industry 1t
was carried on largely by the rich "Mes,i-
zos or Chinese haif-castsE There was a
regular system for the bringing in of these
coins. The result of the Spanish laws was
10 make money dear during the season
when there was a big demand for cur
rency and the producers, as We'll Was .,.s
merchants and bankers have been robbed
from year 10 year through the effects OF
the law in force.
The Spanish government, kept no sta
tistics of currency or finance and the
most general character The most careful
estimate OF the currency OF the isia nds is
therefore likely 10 be Incorrect.
There are s.0H9 900 people In the islands
according to the estimate Of the Spanish
government of whom only a small frac-
ton live in the territory contiguous to Ma
Mia and Hello. When money once leaves
these centers 4 passes out of the tnowl-
edge OF business men, and il is impossible
therefore To form any correct Idea OF the
amount OF money row In the Islands There
lie ia.
the Spanish government and sent out a
year ago. OF which only small percentage
is now In Manila.
1T is estimated there is in circulation
sl".oo@n of subsidiary coins the lo-cent,
2'-eent and 5o-cent pieces. which have been
reeoined from Mexican dollars by the
SPANISH government The estimate OF the
Mexican dollars now IN circulation as
given by one Of the best Informed bankers
In the Islands. Is from $50 (oo. 600 TO So, 100
900. This. with the s.. 800 GO of notes of the
Banco Espanol Filipino now in circulation.
constitutes the currency Of the islands
This would make a total OF so o10,0oo 10
As.eVo.Uo, speaking roughly for the entire
Islands. or approximately s. per capita for
the total population of the islands IL
must not be overlooked that these figures
are given on a silver basis and that there
f.re; In figuring on ou~ own standard. all
or these figffres must be cut In two
Three banking institutions do the bank
Ing business Of the islands aside from that
done by the large commercial houses
which buy and sell exchange and 10 Inn
tied extent carry on the business whIca
leztimately belongs ia banking institu-
lions.
Under the charter of the Rance EspanoI
Filipino II is permitted 10 issue hank notes
In amount equal To three times It's canital
stock. The present capital OF The bank k
si.5tsee. and its note issue may. therefore
was in circulation. as Nreviouxly state,
approximately s35saooa or those notes
These notes are issued on silver haa.,s
ard are PAYABLE on demand 10 tn, bearer
The question 81 the future currency OF
the Islands Is one which Is az vital inn
portance to ali business men 81 the Islands
The best Informed men NJ AanIis are OF
The cninton that under present conditions
the SILVER currency Is the 0rly one stfgfat
ia the islands. A great deaf ~ The sr,4a
OF the Philippines Is with China ard Japan
and the Straits Settlements fn1h ,o5
Australia. In China ar Iaoan ana Ir8fe
the whole trade Is on silver hasls thnn~e
Japan has adopted the gold dollar which is
currency, therefore. in effect IL on silver
basis the same AZ China and India
The natives of the Philippine islands
are conservative 70 4 segrsc IN tha fustfe~
OF their currency. and itswouid As long
@nd tedious task 20 educate ;hern +, y fnI,
lar which would be- worth twice ,hat ns,y,
IN ejaculation Notwithstanding the Amer
leans have force OF Il 90 sal8ie~s j., u,
Mia who are paid IN gold the neeule ~ -.
islands Win have nothing bur silver All
or the soldiers when they are nai5 in s,,1g
'ahe theif fhtfeN 20 0ne OF TIE hanks ,al
exchange II fer local currency
The native will take the Mexican so,,,r
warth less than 81 cents in gola in nv, far.
ence 10 the United States dollar worm 10
cents. $50 go
'Ir the United states re..lns she yh,,,,,.
pine Islands. special caiusaes - esl.sr AL
lars n''shf be mi0tti for circulation i. ~,
aFchtpeiaso. t3e same as &hs Brsffrs .g~fis~
aas oern put In circulation 81 the Sfraff,
ses,'efnenis. "a Ronskong and "a a+31rr
~ Nseft - ifsf interests preiosusntte
IN umetne god standard m.sh; q. ps.t IN
.efTs ia me Islands. hut lu the s,,s.f9u ~
we business men e. eefai}V r. would has =,
Dc acVo;npi shed slowly smi ,.ons dan tf.,,,
would h5F, - be given ;he conser, a -{,s a.
.fu0e 90 tho psopse sra - the f.rf as
,scy "cnd aaVe - Ie educated IS che Va,ta
O. The ncw currenev '"
ne MeNsan dollar tn general c.v,asa-
ter II fHf - ipT.ne islanss srcrcasNs 80
es'rF~ASes ~ Naius Eos according u-st1 1ht-
9eetatiocs fnr bar silver ia T,,rsF.n vht-s
are received every HsN az abb. g, Mania
l9'e spanish srveTpmrni has eorrht y
every WAY ~ favor hoaas gnanssFs -t.srs.
ard "a tried - KEEP cNrh#nAe r4s.. -
Na'7afAs - spanish markets This Nss an,
reason for is preS htiea ~ the ntpo-tsr.,
or NFNfSaE dollars 10