Arizona republican., 1899-12-29
Gold Was Once Considered a
 Failure There
Interesting and Curious Facts Regard ing Coinage of the Islands, Gath cred by the British Vice Consul at Manila.

consul at Manila, a copy of which has been received by the treasury bureau of statistics. It contains the following
 statements:
 Gold.-The currency of the Philippine
 islands was originally gold, Spanish l "Onzas" of Charles III and Ferdinand l VII predominating. Small gold coins with "Filipinas" inscribed on them,
 of 1 dol, dol, and dol, were locally
 minted at Manila and were not cur
 rent in Spain. The Manila mint was
 open to the public until 1888 for the coining Of the above three pieces at a
 small charge. Coined gold (principally
 American double-eagles) was recoined
 Very few ingots, if any, were used for
 this purpose, the operation leaving a
 clear profit of IS to 20 per cent. This
 practice ceased when exchange de-
 clined heavily and left no profit.
 Silver.-MeXican and old Spanish dol
 lars, with fractions of the latter, con-
 stituted the silver currency. These
 Spanish coins, which comprised the
 now rare Dos Mundos'' set and spec
 imens of Ysabel II, together with the
 imported Mexicans, were frequently at
 a premium over the gold dollar, simi-
 lar conditions also existing in the is
 land of Cuba. When, however, silver
 began to depreciate the gold coin was
 rapidly exported and replaced by Mex
 ican dollars. In 1877 the gold currency
 was considered a failure owing to the above reasons. About this time law was passed by the Spanish government prohibiting the importation of Mexican
 dollars, but permitting the circula-
 tion of those that were already in the island. Smuggling from China of Mex ican dollars (dated previous to 1S7S) was carried out during the Spanish regime in many instances with the aid and knowledge of the Spanish GUS toms and other officials. Gold conse- quently left the island completely. The dollars fluctuated according to the price of silver as the fuctuation reach ed sometimes 10 to 15 per cent; the smuggled importation continued until it would drop to par" For instance, during the export season money was scarce, Manila rates would rule as high as 10 or 15 per cent over those in Hong Kong and China, whence the dollars were smuggled, which attracted contraband, while in the autumn the exchange would fall to par on those places, there being frequently an eX- port of Mexicans at this season to be again replaced by smuggled coins when required.
 The government at Madrid, it is said, endeavored to alleviate this state of affairs, especially as there was big depreciation of Philippine as compared with Spanish silver, but could not act for the want of funds.
 Several millions of Mexican dollars were recoined in Manila and converted into pieces of 10, 20 and 5Oc-S55 fineness and % grammes; the treasury gained 10 per cent on this operation, but was unable to materially decrease the large stock of Mexicans. These locally minted pieces differed from the Spanish since their value was stated in frac- tions of a peso" thus the 2Oc-piece was inscribed '2O cent, de peso,' while of those in Spain the inscription used read una peseta."
 In 1897 the money question became serious, and at the commencement or the Philippine insurrection some 6,OOO,- GOO of coins of S1 each, 300 fine, 45 grammes, were minted in Spain and sent to the Philippines. They were similar to the Spanish current dollars, but were marked "Islas Filipinas," and bore the head of Alfonso XXI. These dollars were & per cent under the value of the Mexicans. Some 100000 or s, ,OOO, 900 may be considered as fair of the number of MeXicans in the Philippines at this period. Besides this, large number of half dollars was exported for use in Morocco-presumably to pay part off that country's indemnity to Spain, un- til legislation put an end to the busl- ness. On the arrival of the Americans d large amount of United States gold was brought by the military. Some | difficulty was experienced at the begin | hing, as the natives and Chinamen did ! not know the values The exchange of | the U. $. gold or silver to the Philip | pine or Mexican silver is commonly | accepted at 1 dol. T.. s. for ? dOls. Mex | ican or Philippine; but the exchange l varies at the banks and large commer- ciaI houses according to the value of ! the Mexican dollars in London and San | Francisco. Mexican dollars, irrespec- | tive of dates, have been recently inn ported through the banks in large | quantities. There IS a shortage of sub ~k,-