The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-04-17
The Philippine Islands.

An interesting report of Commissioners
HARDEN on the Philippines is issued by the
Government. A lack Of official statistics
made his task OF obtaining data difficult,
but trustworthy information from private
sources was available, especially in regard
to nan and trade.
Gold was originally the basis Of the cur
rency, but gave way to silver, and Mexican
dollars dating before 1877 now form it's
chief constituent. The credit system is
in vogue everywhere, and for ordinary
purposes little money is needed, but
1t is urgently needed at tho height
OF the sugar season, or from Fcbru-
airy to June. Three banking institutions
in Manila do most Of the money business,
two having branches at Iloilo. Mr.. HAIR
DEN thinks that $40, 600 900 to $25 ,OOO,-
o in Mexican dollars, 10000, 900 in sub
sidiary coins, $4,000, 600 in Philippine
dollars sent out to Manila in 1877,
Of which only a small percentage IL
now there, and $2,5OO,OOO in notes
issued by a local bank, based on silver,
constitute nearly all the currency. He
would put the total at from $40, OOO, 900
to $45, 900, 900, being So per capita, or,
on a gold basis, at 100000 900 to $22,-
100000. In the spring of 1873 an
edict from Madrid forbade the importa-
ton of silver dollars dated after 1877, but
this law, which caused much smuggling
OF silver, much loss to planters and labor
ers during the season when money was
needed, with its wide fluctuations in ex-
change rates, has been abolished under
our rule, and, with free importation of sill
yer, exchange rates are more stable.
Manila has a savings institution and pub
lie p%awnshop, practically under the con-
troll OF the Church" which pays 4 per cent.
interest on deposits and loans money at 6
per cent. OF gold, silver, iewelry and
clothing in good repair. 1t is useful
to the poor and fairly profitable to
those who run 1t. OF the three banks,
two are branches OF Hong Kong and
London institutions, while the third,
the local Banco Espanol Filipino. may issue
notes to the extent Of ST., 500, 900, or three
times its capital stock, and last autumn
had about So, 800, 900 in circulation. The
natives are so conservative in prcferring
Mexican dollars to ours that it sill be hard to
accustom them to any other coinage, while
"all OF our soldiers, when they are paid in
gold, take the money TO one Of the banks
and exchange IL for local currency" The
Manila banks keep an average cash balance
of about So, OOO, 900, except at the
height OF the sugar season, when il
runs low the two lloilo branch banks
keep about $4,000 each. 1t requires
about 81, 900, 900 each for handling the
sugar and hemp industries, while for the
rice crop, which is largely a medium of ex-
change between different ports and prov
inces, 81 900, OOoto 50, 900 ,OoOis enough.
The banks are not inclined to favor loans
on growing crops so that this business
goes largely to the mestizos, or Chinese
half-castes, who charge the planters from
IL to 30 per cent, and sometimes even 10,
for money. The banks advance funds on
stored crops at 8 TO 7 per cent.
There is one railroad in the islands, from
Manila to Dagupan, 1893 miles. The tele-
graph system is very incomplete and the
postal system crude, while there are " prob
ably no worse roads in the world" outside
Of the larger towns. The question OF labor