The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1899-06-27
BANKS ARE DISCRIMINATING
AGAINST IT.
Rate of Exchange with Mexican Cur
rency Has Been Changed-Much In
convenience and Loss Results.

MANILA, May 25.-The present state
of the currency is such that If continued
for long it will threaten a commotion in
all business affairs. The two banks are
discreditlng American silver. The COM
mercial rate of two for one" upon
which basis trade has been carried on
since the American occupation of the
city, they are forcing down. The eX-
change rate of American gold in local
currency is now S2 where it was for
merly 81 OF. Our silver, formerly pass
ing freely at the banks 2-1, has been
deprecated to l 96-1.
At the present writing, some mer-
chants about town have begun to refuse
American silver at 2-1 They are fore
ed to it by the newly established bank
rate. A prominent tobacco dealer who
has not yet changed the rate of eX-
change with his customers, has over a
hundred silver American dollars lying
in dead weight in his safe. If he changes
them at the bank he loses, perhaps half
of the profit which they represent,
neither can he pass them out in change
as fast as they come in
This dealer says that he will be COM
PEELED hereafter to change American
silver at the established bank rate, or
add enough to the price of his goods to
cover the exchange loss. Either alter
native he thinks will hurt his business.
value of so cents. Yet the United
States paymasters in these waters buy
thousands of pesos at Hongkong for
A 2-10 cents. From this it is easy to
calculate that bank profits ane way, but
they shave their victims going and COM
ing.
While they are very willing to consid-
er our money of little value, when re-
ceiving, they put on different pair of
glasses when it comes to paying the
same money out. Our gold goes out
over their counters at 81 05 and our sill
yer dollars at 81.
Both the United States pay depart
ment here and the postal authorities
have been compelled to combine in or
der to defeat the rapacious greed of
the money changers.
The chief paymsters, realizing that
the soldiers here would be wholly at
the mercy of the banks, asked the
treasury department to place certain
amounts to his credit in the sub-treas-
uries This bit of wise forethought
made it possible for him to give SOL
ders, who wished to send money home,
certified checks upon the United States
| sub-treasury, when otherwise they
would have been compelled to pay eX-
change tariffs on bank drafts. This to
be sure, was before the postal depart
ment issued money orders from this
office.
There is some stir being made among
merchants here by the refusal of the
authorities to accept American money
at the custom house. This however,
cannot be charged against the customs
authorities, for they are but acting on
orders from higher sources. Paragraph
| 1863, United States Provisional Customs
Tariff and Regulations, reads: "The
monetary unit of the Philippines ISL
| andS Is the silver peso" In an order
| issued by General Greene, shortly after
entering the city, he sets forth what
moneys are to be received for customs
The order desgnates the coins and bills
in use before our occupation, but makes
no mention of American money.
| The tradesmen here are becoming
suspicious and wary of a currency thai
! is in constant fluctuation, and refused
| by at least one department of the Gov
| arnnoant