Iron County register., 1898-12-29
The Currency Question.
OBSERVATION-DISCLOSURES ssssssssssssssssssssss
PHILIPPINE FINANCES.
Business Men OF Manila Favor ne
naming ON Silver Standard with
Balance of Asia.

Mr.. Edward w. Harden, who was an
pointed in August last as honorary
commissioner of the United States to
make an investigation of the financial
| and industrial condition of the Phil
hppine islands, has made his report
to the secretary of the 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 % years. The
Mexican dollar of a date previous to
1877 is current in the islands, and it
is practically the only money in gen.
eral circulation. The Spanish govern
ment, in the summer of 1897. coined
10000 900 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 absorbed. There
is local note-issuing bank called the
Baneo Espanol Filipino, which has IN
circulation notes based on silver, of
which there was outstanding on Sep
tember 80, 1898, approximately $2,-
500, ,O0O
'The amount of money needed for the
trade and commerce of the islands
fuctuates in the different seasons. In
the height of the summer season-say
from February to June, when large
amounts of sugar are exporteG-there
is sharp increase in the demand for
money. For the ordinary needs of
the country little money is used. as
the credit system is in vogue through
out the islands, and there is, there
fore. no great amount of money need
ed for the payment of wages to the
laboring classes. In the far-off season.
when exports are light. the demand
for money would become so small that
the circulating medium would be much
more than sufficient for the needs of
the country.
"Of the $6.000,000 in Philippine dol
lars coined by the Spanish governments
and sent out a year ago only small
percentage is now in Manila. 1t is
estimated that there is in circulation
S10,000,0 900 of subsidiary coins the ten
cent, the 20-cent and 50-cent pieces,
which have been recoined from Mex
lean dollars by the Spanish govern
ment. The estimate of the Mexican
dollars now in circulation, as given by
one of the best-informed bankers in
the islands, is from $50 900 900 to $685.
100000. This, with the So, 500, 600 of
notes of the Banco Espanol Filipino
now in circulation, constitutes the cur
rency of the islands. This would make
a total of from SAC, 600, coo to $50, ,0O0. 900,
speaking roughly, for the entire is
lands, or approximately five dollars per
capita for the total population.of the is
lands. These figures are given on a
silver basis, and, therefore. in fig
uring on our own standard all of these
figures must be cut in two.
''The question of the future cur
rency of the islands is one which is
of vital Importance to all business men
in the islands. The best-infor1ned men
in Manila are unanimous in their
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 Philippines is
with China and Japan, the Straits Set
Elements, India and Asutralia. In China |
and in Japan. and in India. the whole |
trade is on the silver basis, though |
Japan has adopted the gold standard, |
having, however, as the basis of its |
currency gold dollar which is ap-
proXimately worth only 90 cents, and |
it's currency, therefore, in effect, is on |
4 silver basis.
''If the United States retains the Phil |
ippine islands. a special coinage of |
silver dollars might be minted for cir
in the archipelago. the same
Is the British dollar has been put
N circulation in the Straits Settle
nents, in Hong Kong and in other
ports where British interests predon,-
mate"