The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1898-12-28
MONEY SYSTEH NOW
IN USE IN MANILA.
Edward Hariden's Report on
FINANCIAL Conditions.

and industrial conditions in the Phil
;Dpine islands, has made his report to
The secretary Of che treasury, in the
course Of which be says
ssSilyer Is the basis OF the cur
.ency in the Philippine Seiands.
There is DO gold ip general circnlas
I. tion and has been none for more than
20 years The. Mexican eieliar OF 2
late previous 10 1871 10 current IN
the islands and j. Is practically the
only money Ia circulation. The
Spanish government, ia the Summer
81 s lS95 coined So, ,000, 900 of silver
i q 5 local currency which was cent
Is the islands These dollars are
lighter il weight than the Mexican
dollar. bnf the secretly of money IL
the Philippine islands ca1sed tbam
10 Be quickly absorbed. Thee 10 9
local note issuing bank caaed the
Banco Espapol Filipino, which has
IN circulation notes BASED on silver,
of which there was outstanding or
Sepsember so, 1898, approximately
50, SOC, 900
7sha currency Of the islands was
originally gold, in pieces Of ST, 81
and 50 with the Mexican silver
dollar and the old Spanish silver
I dollars. the latter circulating to q
limited extent only. Previous to
1915 the silver wan taken at q
premium over gold When silver
began TO depreciate 10 value the gold
CON was rapidly exported and
replace5 by the Mexican silver dollar,
which has for . long time been In
general use throughout the Orient.
Gold became so scarce shrough the
export Of the gold ccin, and tha
silver was taking It's place so rapidly,
that the Spanish government took
steps 10 stop the export Of the one
and the import Of the other. In the
spring of 1878 an edict was issued
from Madrid prohibiting the import
Of ali silver dollars bearing date
Subsequent TO 1877 This law was
maintained until the control OF the
stands passed to the United States.
he amount of money needed for.
she trade and commerce Of the Philip
pine Islands Auctuates in the differ
emf seasoDs
seThe auctnation in the demand
for money in the different seasons OF
fbe wear resulted in widely fuctuat-
ing rates Of exchange and in the con-
timed Aow of money either to or
from the islands The Law which
prevented the importation of the
Mexican dollars of date subsequent
so 1877 proved . great hardship to
the business interests and would have
been a much greater evil had j. not
been for the iaxity OF the officials
which permitted and encouraged
smuggling I. was NOT uncommon
for Che dollar TO get at q premium OF
10 os I2 per cent and this would
Immediately start the fow of silver
ieward the islands which would be
eontinued until the demand was met
and the rate ofexchange was reduced
70 q point which would canse SNUG
Cling 10 cease being profitable
Tne smuggling of silver into the
is,ands was recognized industry
r was carried on by the rich 'mesti
zos.' or Chinese half castes There
was a regular system for the bringing
in of these coins
.After the occupation Of Manila by
the American troops permission was
given the banks to import silver tree
Iy. and the result HISS been to keep
exchange rates on more stable
basis
The Spanish government keeps
no statistics Of currency or finance
and the bsakers can give only esti
mates Of the most general caarsc-
ter.
There was Sc 900 600 10 Philip
pine dollars coined by the Spanish
government. and sent out year ago
of which only small! percentage 'e
now 10 Maa:ia /. is estimated there
is in circulation $4,000. .0eO of sub
sidiary coius TIE estimate of the
Mexican dollars now in circulation
as given by one of the best informed
bankers ia the island, is from $40,
600. 900 to S25 o0o.ooe This, witt
the So 100000 notes of the banct
Espanol Filipino nov 10 circulation
constitutes the currency of tht
islands This would make total o o
from $40,0o0,000 to $45. .ooo,ooo
speaking roughly, for the eut'r'
is!ands. or approximately s5 pc
capita for the total population OF to-
islands. /, must not be overlooked
that these figures are given on sl'
yer basis and that therefore in hgur
ing on our owe standard all OF thes'
figures must be cut two
m. ..nL;oo institutions do to