Omaha daily bee., 1898-12-03

liver basis and are payable on demand to
carer. The charter requires that there shall
he maintained In cash and paper, which can
be realized on In ninety days, a sufficient
AMOUNT to cover Its outstanding obligations
N bank notes, deposits and accounts current.
There must be maintained In the banks
vaults silver In amount edual to at least
one third of the notes In ejaculation.
Can Use Only silver Currency.
The question of the future currency Of he
Islands Is one which is of vital importance
to all business men In the islands. The
best informed men In Manila are unanimous
in their opinion that under present condi-
tions the silver currency Is the only one
adapted to the islandA A great deal OF he
trade OF the Philippines II with China and
Japan, the Strait settlements, India and
Australia
In China and Japan and in India the whole
trade in on q silver basis, though japan
has adopted the gold standard. having. how
ever, as the basis OF It's currency gold dol
lar which Is. approximately, worth only 80
cents, and its currency, therefore. In effect,
Is on silver basis. the same as China and
India. The natives Of the Philippine islands
are conservative to degree in the matter
Of their currency. and It would be q long
and tedious task to educate them to q dol
lar which would be worth twlce that now in
circulation.
Notwithstanding the Americans have
force Of Is, 900 soldiers in Manila who are
paid in gold the people 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 It for local
| currency. The native will take the Mexican
dollar, worth less than % cents gold. in
preference to the United States dollar,
worth 100 cents. II the United States retains
the Philippine islands . special coinage Of
silver dollars might be niinted for circula-
tion in the archipelago. the same as the
| British dollar has been put In circulation in
the Strait settlements, in Hong Kong and
| In other ports where British interests pre-
dominate. In time the gold standard might
be put In force in the Philippines. but in
the opinion Of the business men generally It
would have to be accomplished slowly. Con-
sideration would have to be given to the
conservative attitude Of the people and to
the fact that they would have to be educated
to the value Of the new currency.
Mexican Dollar II Standard.
The Mexican dollar In general circulation
In the Philippine islands contains forty
seven grains Of silver 300 hne. The pur-
chasing power Of the dollar IL the bullion
value of the silver contained In It, and 1t
increases or decreases In value IN accordance
with the quotations for bar silver in Lon
don, which are received every day by cable
in Manila. The Spanish government has
sought in every way to favor home manufac-
turers and has tried to keep exchange rates
favorable to Spanish markets. TAis was the
reason for its prohibition Of lthe supporting
| Of Mexican dollars, the inte6tiun being to
supply the islands with Spanish coins. 1t
has never met the demsnds Of the country,
however, with coins bearing tAe Spanish
stamp. and the merchanw and bankers have
been compelled to obtain nesnsd eurrsncy
through the smugglers.
There is an issue Of taoa 900 ~ bonds
which was put ovt BY the GUanish severn
ment in July, 1897, and SERVES - . 1fet Hep
on the oustoma recsipts OF t14Y4t$ ~
These bonds were call Ggpots-
interest at the rate ol 8 por cent. The Issue
price was %. They were divided into two
| classes, called A and B bonds. The A bonds
consisted Of $25, 100000 issuable In Spain and
| with interest and principal payable there
The bonds comprise the remaining $15,-
000, 900 and they were to DO issued in Manila,
with Interest and principal payable in Ma
nila. OF the A bonds $40, 900 900 were under
written by the Banco Hispano Colonial oi
Madrid, which paid commission OF PEI
cent. OF the B bonds issued In Manila, those
that were put out were practically a forced
loan The Spanish government In Manila
received deposits from private individuals
and In effect 1t compelled those having none,
to deposit to receive these bonds in settle
n .ent Of their claims against the government
In this way about 100000 Of these bondi
were fioated in Manila.
Practically all Of the export and impor
trade Of the islands 10 in the hands OF for
eigners. There are few spaniards engaged
In trading, but the bulk Of the business IN
commercial way is done by British. German
BELGIAN and American citizens. These d.
not meddle with the insurrection and the!
have been able to maintain friendly rela
tions not only with the Spanish government
ofacials, but with the natives as we'll.
Exports Of the Islands.
The most reliable figures that can be Oh
tanned ON exports from the islands for tn
year 1897 give the following as the value
; the point Of shipment Of the various princi
pal items:
sugar ..........'.'.''.'''.'.' L,SaS'vg
Tobacco leaf .............'.'..'.'.. 2'rso' 's ~ ~
Cigars 1,oSS oV