Evening star., 1898-12-03
PHILIPPINES TRADE
Report of Special Commissioner E.
W. Harden.
DATA ON FINANCE AND INDUSTRY
Silver the Currency Used in the
Islands.
RECEIPTS AND EXPENSES

lands. the appointment bearing date of Au
gust >. 1888. In conformity with his re-
quest he has made careful study of con-
ditions in the Philippine Islands, and en-
bodied the result of his work in a report,
which has just been made public.
The task of obtaining data on financial
and industrial conditions in the Philippine
Islands has been a difficult one. There are
no official statistics available on trade and
commerce, and for the most part the infor-
nation has been gathered from private
sources.
Mr.. Harden was in Manila bay with the
biockading fleet from May /, the day on
which the Spanish squadron was destroyed
until the bombardment and capture of Ma
Mia on August u. Following that event he
went ashore. remaining in Manila until Oc-
tober Y Most of the figures and facts We're
obtained during the time he was in the city
of Manila.
Silver the Currency.
Silver is the basis of the currency in the
Philippine Islands. There IS no gold in gen.
eral circulation and has been none for more
than twenty years. The Mexican dollar of
date previous to 1877 is current i'll the
islands and it is practically the only money
in general circulation. The Spanish gov
ernment, in the summer of 1897. coined
S6,cuU,OOO of silver i'll Il local currency which
was sent to the islands. These dollars are
lighter In weight than the Mexican collar.
but the scarcity of money in the Philip
pine islands caused them to be quickly alb
SorDed. There is a local note-iSSung bank
called the Banco Espanol Filipino which
mas in circulation notes based on silver, of
which there was outstanding on September
81. lSjS, apprOXimat teiy. 81 $40 900.
W hIle virtually Il silver-using country
the bankers and merchants have been de-
nled the means of bringing in coin to bal
ance 5 the trade of the islands through the
law which prohibited the import of MeXi-
can dollars. When the country required
currency to move off and balance the heavy
exports of good season, the onIy means
OF getting the needed money was by raiS-
ing the value of the dollar to price that
would enable the smugglers to bring IN com
from emma at a substantial profit to them
serves II was not uncommon for the dol
lar to go to a premium of 10 or II p>r cent
and this would Immediately start the flow
or silver toward the islands which would
be continued until the demand Was llet
and the rate of exchange was redr:C ID t, a
point which would cause Smurs,ling RI
cease being profitable.
The result was to make money dear dur
ing the season when there was a big de-
mand fer currency, and the producers as
well as the merchants and bankers have
been robbed from year to year through the
effects of the law in force The widely
huctuating exchange rates have been Of
advantage to bankers and to the business
houses which held extensive credits outside
classes had always suffered
After the occupation of Manila by the
American troops permission was given the
banks to import silver free.y, and the re-
suit mas been to keep exchange rates on a
more stable basis
The Spanish government kept no statis-
ties of currency or finance and the bankers
can give only estimates OF the most general
character of the amount of currency in
the Islands. Practically all of the business
OF the archipelago is carried on in Manila
The three banking institutions there do the
business or the Islands, though two have
estimate of the currency of the islands
ls therefore likely to be incorrect
There ale S,14o0oo people in the islands
according to the estimate of the Span
fraction live in the territory contisu-
Gus to Manila and Ioilo. When money
once leaves these centers it passes out of
the knowledge of business men and il is
Impossible, therefore, to form any correct
idea of the amount of money now in the
islands. There is $1,000 900 in Philippine
dollars coined by The Spanish government
ana sent out year ago, of which only a
small percentage is now in Manila IT is es-
ttmated there is in circulation $lo,0oO 900 of
subsidiary coins, the 10-cent. 2U-cent and
lo-cent pieces, which have been recoined
from Mexican dollars by the Spanish gov
efnment. The estimate of the Mexican
dollars now in circulation, as given by one
of the best-informed bankers in the islands
Is from S2o.bb,rDO to 81, 900. 900. This with
the $2,bD,otD of notes of the BancO Espanol
Filipino now in circulation, constitutes the
currency Of the Islands. This would make
a total of from $4o.Ma,0n0 to Si3ono 600
speaking roughly, for the entire islands or
dpproXlma tely, s. per capita for the total
population Of the islands. 1t must nor -be
overlooked that these figures are given on
silver basis and that therefore in figuring
on our own standard all of these figures
must be cut in two. On gold basis the
currency of the islands is therefore from
S24H0,o0o to 81 $40 $50 or s. 30 per canita
hguring on the total population of the is
lands.
Savings md Loan Bank
There Is in Manila a savings institution
ana public pawn shop, which is practically
under the control Of the church. 1t is called
the Monte de Piedad." 1t was established
to make loans to the poor people, and has
done a good work during the few years il
has been inexistence. 1t has been fairly
successful. and has proved to be a source
of profit to those who are interested in it,
Under the charter Issued to 1t by the Span
ish government in the islands ii is allowed
TO operate pawn department as we'll as a
savings department.. In the pawn DEPART
ment loans are made on gold silver Jew
eiry and clothing in good repair at & per
cent per annum. The savings department
receives small sums deposit from the