The San Francisco call., 1899-12-14

because there need be no advice from the
treasures as to whether OF not tnere
dinary course of events, II draft be
presented TO bank in Manila, as is the
case anywhere else, the first thing the
bank must do is to ascertain II the man
presenting the draft has money TO pay II
In the bank upon which the draft is
drawn. II costs money to telegraph from
pensive operation. But in the case OF
draft on the United States treasury no
such advice as that need be sought, SO
when Major Mcclure wanted any gold
the banks in Manila were more than anx-
ious to accept his draft on the treasury.
He found. however. that the banks were
money. and he determined TO use this
privilege Of exchange upon the United
States to force the premium up. The
banks were paying 81 o. He demanded
not he declared he would take no more
gold from them. They agreed. but on go
Ing into one OF the banks one day 10 see
he found them paying only 81 O5. The
banks were at once notified that II was all
on between them and the United States.
this, time an effective one. by which the
banks paid the highest premium. At one
time II was even as high as 81 0s, but IT
did not remain at that Major Mcclure
figured that by not having to telegraph
for advice and by using the drafts as ex-
change, thereby not having to have the
months, the banks saved enough TO more
than pay them without having to shave
the premium on the soldiers pay.
The banking business with the soldiers
was materially decreased by q permis-
sion Major Mcclure secured before he left
for the islands. Forseeing that a great
many OF the men would send home much
Of their pay, he secured permission TO pay
such men as would accept them In
checks. II is forbidden by the regulations
TO pay In anything but gold coin. but the
permission TO pay in checks was granted.
In that way the paymaster,s department
saved over four million dollars, which
was paid in checks, leaving the gold they
represented TO be used in other ways. II
was no uncommon thing for a captain to
come 10 the paymaster with a list OF men
all living In the same town and drawing
would be mailed to some bank in the town
with a list OF the amounts and to whom
they should be paid; and all II cost was
cent for insurance. Thousands Of dollars
were sent home In this way.
There was another interesting expert
ence with the Introduction of United
States paper into the financial system OF
the islands. At first gold notes were not
welcome, but soon they went through the
same course as had the silver dollars AS
soon as II became known that their re-
and It was realized they could be shipped
not by freight but by mail, there was
rush for them. and the banks gathered
them in. II was the intention TO put them
in circulation In the islands and by letting
them mingle with the currency of the
country gradually to bring the financial
system round TO what Il is In this country
and have business transacted with the
American standard as the basis. With
this object in view 900 in gold notes
were sent out as a venture. The Eastern
soldiers. being used TO paper money, were
glad to get them. Then the banks, find
ing they were just the thing for ship
ments of coin. went after them and before
long the 100000 in gold notes had disap-
peared. The greater part OF II had been
sent out Of the country. Since then there
have been other amounts foated at diff
ferent times and now they have secured
a foothold.
There is perhaps not more than 81, N,1oo,-
600 In native money In circulation in the
islands" said Major Mcclure yesterday.
new possessions. Most OF II is debased
silver coined in Spain and sent out to the
islands There is some native money,
coined in Manila, and the Filipino Espan-
Besides. there is the Mexican money
Everything down there is on a silver ba-
sis, and It is hard for any one used to
understand the way they do business.
There is no such thing as a small per cent
down there. What in the United States
per cent. in the islands is two and a half,
five or eight per cent. Gold is at a pre-
MUM Of from six TO eight per cent, but IL
is not kept in the country. II is shipped
out to England as soon as II is taken in.
| OF our own money there is now in circu-
| lation over So 900 900 in specie and paper
| The banks are all paying the full pre-
MUM and the natives are becoming used
TO II.
"The question of places for deposit for
! the soldiers was vexing one at first but
| is was settled by the payments in checks
and by the establishment Of the safe de-
posit. / was in the army of the Potomac
! and ] remember the way the paymasters