The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1898-12-01

DOUBT WaEpaEE A9oLD STAND
ARD CAN BE ADOPTED IN PoR-
10 RICO AND THE PHILLIP
PINES SOME OF THE FACTS OF
THE EXISTING sITuATIoN-THE
OLD SPANISH BANKS AND THE
NECESSITY FOR BRANCH
BANKING
Warrington Correspondence Of the
New York Journal Of Commerce: II Is
vident from the information which IS
reaching the war department and the
Treasury, that the monetary probtems
which win confront the administration
il the new dependencies VIM be NUM-
erouS and complicated. Comparatively
iIttie was known In washington re-
garding the financial system Of either
CUBA, Porto Rico or the Philippines.
when the Victories OF Commodore
sSmpson, General Miles and Admiral
Dewey brought them under American
control. Full reports have now been
received regarding the metallic stand
ara ID each dependency and the status
q the Spanish bank Of the Philippines.
rhere Is grave doubt whether It will be
bofgfbie to adopt uniform currency
rvStebn Ia aIl the Islands. Cuba Is up
-. fhe gold standard in the sense that
e6lues are computed IN gold, but she
hnR HETEROGENEOUS mass OF the gola
md eiIyar OF all Countries In actual cir-
cnIotion. Porto Rico hasa silver stand
aFd under system which has given
puFchaSinF power TO the silver peso con-
slderablH above us bullion value by
roaSon Of the Limitation OF the quantity
"a circulation. The Philippines are up
on a silver basis, where the silver cir
cniates at substantially rs bullion val
ue. but huctuStes under the pressure OF
special demands and local restrictions
There viii probably be no difficulty IN
adopting che American gold standard IN
foreign exchanges, and American gold
( u likely soon to circulate In Cuba, san
Juan de Porto Rico and the City pf Ma
mia. II is doubtful whether Il VIII be
possible 10 substitute this gold without
disturbance to local business. conditions
for the silver coins that circulate In the
interior Of Porto Rico and In l.uz2n ana
tho other Islands OF the Philippine
archipelago.
The problem in Porto Rico. as al
ready pointed out In these dispatches. Is
70, give fixed gold value to the silver
pesos which were put In circulation
three years ago. There will be little
difficulty In maintaining the coins al
any value adopted by Congress or the
executive department which cores
ponds nearly to their present exchange
value Fluctuations beyond the cost OF
shlpping gold to and from the island
can be prevented by providing 70" the
free exchange Of the coins for gold at
{reasurV Offices or by the banks. Just
how the exchange shall be made ana
jnst what rates shall be fixed ore ques-
lions 10 which Secretary Gage has Civ
en- much attention. but which he prob
ably VIII not attempt 10 settle absolute
IL without the advice OF an expert COM
mission Re Is inclined to favor the
continued circulation Of q local coin Of
the size and character OF the peso after
a axed exchange has been determined
npou Afr Harden. the special agent OF
the state department who has been
studying economic conditions IN the
Philippines, does not believe II practi.
cable to abolish the silver standard and
the present currency OF Mexican silver
dollars thore In the immediate future.
They have been the customary COINS
not only Of the Philippines but OF many
other Aslatlc Islands, for many years
The Spanish government undertook to
limit the quantity and raise the value
By prohibiting further Importation out
the prohibition proved unavntttng' II
the silver standard Is to be maintained
the United States will probably be conn
PEELED to abolish the prohibition anu
leave silver subject TO the fluctuations
81 its market value. This would not
ii,lerfere directly with exchange trans
actions at Manila, but might AFFECT the
nrIce and profits at which goods from
gold standard countries were sold at
retail. Whether there Is any escape
from these fluctuations Is one OF the
questions OF our future financial policy
but there IS no doubt at the treasury
department whether the United States
can take drastic action in anF event un-
III after Great Britain has adopted the
Eold standard for British India.
The banking problem In the depends
sacieS Is likely to be complicated by
the assertion Of certain vested rights by
the Spanish bank OF Cuba, the Spanish
Bank Of Porto Rico and the Spanish
Bank Of the Philippines. Each OF these
institutions holds charters from the
spanish government which do not ex-
pire for some time. Such sights usually
DO not expire by a transfer OF soHer-
eighty. although there Is little doubt OF
the power OF the sovereign TO wipe
them out II 1t Is thought proper. This
will be question Of equity for the cons
alteration Of Congress or the admiuis-
tration. Secretary Gage and ComptroI-
Ter Dawes contemplate making fecom-
mendations that branch banking be
permitted In the dependencies. Their
idea Is that American commerce would
be promoted by the operation OF one or
more banks of large capital with mead
quarters 10 New York and branches In
one or all OF the principal cities OF our
new possessions. How far these instt-
tutions would conflict with the rights OF
the Spanish banks and how far their
charters should differ from those OF the
existing national banks Is problem
which ID 80 manV-slded that II Is not
likely 10 be answered In detail In their
reports. The special privileges OF the
Spanish banks relate chiefly TO the IT,
sue OF circulating notes. There are 9TH
er commercial banks or branches In Gu
ba. Porto Rico and Manlla, and an Am
erican bank which did not issue notes
would not come 10 conflict with the
vested rights OF the Spanish banks. It Ia
likely TO be found convenient, however
TO vest the power OF note issue In the
new American banks upon a different
basis from the national system with tho
view OF facilitating the establishment oil
the American gold standard. the main