Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-12-04

PHILIPPINE ISLAND FINANCES.
Silver Basis of the Currency-Circu-
IatiOn. 50 Per Capita.

Treasury, In the course Of which he says:
"Silver is the basis of the currency in
the Philippine Islands. There is no gold
in general circulation, and has been none
for more than twenty years. The Next
| can dollar Of q date previous to 1S77 is
current in the islands, and 1t is practi-
| cally the only money In general circula-
| ton. The Spanish Government, in the
summer of 1881, coined 100000 Of silver
in a local currency, which was sent TO
the islands. These dollars are lighter in
weight than the Mexican dollar, but the
scarcity Of money In the Philippine
Islands caused them to be quickly alb
sorbed. There is a local note-issuins
bank called the Banco Espanol Filipino,
which has in circulation notes based on
silver, of which there were outstanding
on September 80, 1895, approximately,
$4,000.
SILVER REPLACES GOLD.
1.-THE currency Of the islands was origi-
! nally gold, in pieces of 81, 81, and 81, with
the Mexican silver dollar and the old
Spanish silver dollars. the latter circu-
| lating TO limited extent only. Previous
to 1876 the silver was often at n premium
| over gold. When silver began to depre-
cate m value, the gold coin was rapidly
| exported and replaced by the Mexican sill
yer 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 was
taking its place so rapidly, that the Span
fish Government took steps TO stop the
export of the one and the import of the
other. In the spring of 1873 an edict was
issued from Madrid. prohibiting the Inn
port Of all silver dollars bearing a date
subsequent to 1877. This law was main
| tanned until the control Of the islands
passed TO the United States.
"The amount of money needed for the
| trade and commerce OF the Philippines
| fuctuates in the different seasons. This
| fuctuation in the demand for money in
| different seasons Of the year has resulted
in widely fuctuating rates of exchange
| and in the continued flow Of money either
TO or from the islands.
SMUGGLING OF SILVER.
1.-THE law which prevented the importa-
tion of the Mexican dollars OF date sub
! sequent 10 1877 proved a great hardship TO
! the business interests, and would have
| been a much greater evil had it not been
for the laxity Of the officials, which per-
mitted and encouraged smuggling. it was
not uncommon for the dollar to go at a
premium Of 10 or y per cent, and this
would Immediately start the flow of silver
| toward the islands. which would be con-
| tinued until the demand was met and the
| rate of exchange was reduced 10 point
| which would cause smuggling 10 cease
being profitable. The smuggling of silver
| into the islands was n recognized Indus
! try. 1t was carried on largely by the
rich 'mestizos' 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 freely. and the result has
been to keep exchange rates on more
| stable basis.
TOTAL CIRCULATION
1.-THE Spanish Government keeps no sta
tistics of currency or finance, and the
bankers can give only estimates Of the
most general character. There was six
millions in Philippine dollars coined by
| the Spanish Government and sent cut 4
year ago, Of which only a small percent
| age is now in Manila. 1t Is estimated
| that there is in circulation 100000 OF
subsidiary coins. The estimate Of the
| Mexican dollars now IN circulation, as
| given by one of the best-infofmed bank
ers in the island is from $20o0o,O0 to S25,-
| 600, 900 This, with the S250O,0O0 of notes
of the Banco Espanol Filipino, now in
| circulation, constitutes the currency of
| the islands This would make total OF
| from siO,OOOO0O TO $i5,OO0,00O, speaking
roughly, for the entire islands. or APP
proximately s. per capita for the total
population OF the islands. 1t must not be
overlooked that these figures are given
| on a silver basis, and that, therefore in
| figuring on our own standard, al Of these
| figures must be cut In two.
THE BANKING BUSINESS.
"Three banking institutions do the
banking business of the Philippine Is
lands. aside from that done by the large
commercial houses, which buy and sell
exchange, and TO a limited extent carry
on the business which legitim1tely be-
longs TO banking institutions. OF the
three banks the two most important are
branch concerns, the third being a local
institution controlled by Spaniar1s ard
natives. Under the charter OF the Banco
Espanolo Filipino 1t is permitted TO issue
bank-notes I'm amount equal TO three
times it's capital stock. The present capt.
tai of the bank is 81 10000. and its note
issue may therefore, amount to A,5OOOJO.
on September 30th there was in circula-
ton. as previously stated, approximately,
s.. 500. 900 Of these notes. These notes are
issued on a silver basis, and are payable
on demand TO bearer.
THE FUTURE CURRENCY.
1.-THE question of the future currency OF
the islands is one which is Of vital inn
pOrtanco 10 all DuSlllSsS-llcn III lllc
islands. The best-informed men in Manila
are unanimous in the opinion that under
present conditions a silver currency is
The only one suited 10 the islands. The
natives of the Philippine Islands are con-
servative 10 degree in the matter OF
their currency, and IL would be long
and tedious task 10 educate them 10
dollar which would be worth twice that
now in circulation. Notwithstanding the
Americans have a force of 1900 soldiers
In Manila. who are paid in gold. the peo-
nile of the islands will have nothing but
silver. All OF the soldiers, when they
are paid in gold. take their money to
one of the banks and exchange Ii Tor local
currency. The native will take the Mexi-
can dollar, worth less than 80 cents in
gold i'm preference TO the United States
dollar worth 100 cents. If the United
states retain the Philippe Islands spe-
ciaI coinage OF silver dollars might be
rnin,ed for circulation in the archipelago.
BONDED DEBT.
.rhere ia an issue OF $i0o0o.0oo OF bonds
which was put out by the Spanish Gov
eminent in July. 1897. and which serves
"a a first lien upon the customs receipts
NJ the port OF Manila These bonds are
called 'Cedulas hipotecarias," are pay
eh,a On forty years and bear interest at
The rate OF 6 per cent. The issue price
was ~ They are divided into TWO class