The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1898-12-03
PHILIPPINES.
Financial and Industrial
Conditions Reported.

Washington, Dec. edward W.
Harden, who as United states COM
missioner Investigated the financial
and Industrial conditions in the Phil
ippine islands. has made a report to
the secretary of the treasury. The re
port says that silver is the basis OF
the currency in the Philippine lslandF.
There has been no gold in general cir
culation for more than 20 years The
Mexican dollar of a date previous to
1877 is practically the only money in
general circulation For the ordinary
needs of the country, little money is
used as the credit system is in vogue
throughout the islands.
Before the islands came under Amer
lean control, the flucUuation in the de-
mand for money in different seasons
of the year, resulted in widely fuctua-
ting rates Of exchange, and in the con-
tinued flow of money, either to Or from
the islands. A law which prevented
importation of Mexican dollars OF q
date subsequent to 1877, proved a great
hardship to the business interests and
would have been a much greater evil
had not the officials permitted SNUG
Cling. 1t was not uncommon for the
dollar to go at a premium of 10 or l.
per cent, and this would Immediately
| start the flow of silver toward the is
| lands, which would be continued until
the demand was met. The result of the
| law was to make money dear during
| the season when there was a big de-
mand for currency, and the producers
| as well as the merchants and bank
| ers have been robbed from year to
year through the effects of the law.
| After the occupation of Manila by
| the American troops, permission was
| given the banks TO import silver free
| ly, and the result has been to keep eX-
! change rates on more stable basis.
The amount Of currency in circulation
in the islands, including Mexican and
| Spanish silver dollars, subsidiary coins
and bank issues on a silver basis, is
roughly estimated at from $40, 900 900 tc
S45O00,000, or approximately S. per cap
tia for the total population. These fig
lIreS are given on a silver basis, and
therefore in figuring on our own stand
ard they must be cut in Two. The queS-
ton of the future currency of the isl
ands Is one Of vital Importance to al
business men in the islands. The best
informed men in Manila are unanimous
in opinion that under the present CON
ditions the silver currency is the only
one suited to the islands.
A great deal of the trade of the Phil
ippines is with China and Japan, the
Strait settlements India and Australia
In China and Japan and in India the
whole trade is on a silver basis, though
Japan has adopted the gold standard
having, however, as the basis OF Its
currency 6 gold dollar which is approx.
imately worth only so cents, and Its
currency therefore in effect is on sill
yer basis.
The natives of the Philippine islands
are conservative to a degree in the mat
ter of their currency, and it would be 6
long and tedious task to educate then
to a. dollar which would be worth twice
that now in circulation. Notwithstand
ing the Americans have a force of 15,00t
soldiers in Manila, who are paid il
gold, the people of the island will have
nothing but silver. All of the soldiers
when they are paid in gold take theil
money to the banks and exchange il
for local currency. The native will talk
the Mexican dollar worth less than 81
cents gold in preference to the United
States dollar worth 100 cents. If tn,
United States retain the Philippine is
lands a special coinage Of silver dollar
might be minted for circulation in tn
archipelago. In time the gold STANDARD
might be put in force in the Islands, bu
in opinion Of business men generally
would have to be accomplished slowly
The report says that there is aIf issu
of $40 900, 900 of six per cent bonds Whiol
was put out by the Spanish government
in July, 1897, and which serve as frs
lien upon the customs receipts of tn
port of Manila. Practically, it states, al
the export and import trade of the is
lands is in hands of foreigners. Their
are few Spaniards engaged in trading
but the bulk of the business in a com.
mercial way is done by British Ger
man, Belgian and American citizens
The exports from the islands for thu
year 1897 were valued at SAL, S42, $50. The
Imports were valued at S17342 $50