The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1900-08-12

Special Correspondence Of .he sunday ReTub!Ic.
Copyright, 1890, by Frank C. car?enteE)
Manila, June lS.-I have been looking up
the chances for American capital "a the
Philippine Islands, and l find they are
legion. Millions OF dollars could be invested
right here in Manila and made to pay such
dividends as would bulge out the eyes of
stockholders with aston.shed delight.
Take. for instance, the establishment of a
big American bank with branches in China,
Japan, New York and London. This is a
country OF 10000 people, with Il foreign
business approximating SAC, o. 900 tgold) n
year, and It has only three banks worthy
of notice. These are the Hong-Kong and
Shanghai Bank, the Chartered Bank Of
India, Australia and China, and the Banco
Espanol-Fflipino. The first two are British
institutions. and the third Is the bank
which did the business OF the Spanish Gov
eminent before the American occupation.
These are practically the only banks in the
Philippine Islands.
The British banks have large capital.
The Chartered Bank is represented BY
about sll,oco,ON gold. and the Hops-Kong
and Shanghai Bank by more than $780,
00. including the paid-up capitals, reserve
funds and reserve liabilities of the stock
holders.
All Of these banks are making big divi-
dend5. They do chiefly an exchange. credit
and discount business, charging high rates
for any and every accommodation. They
catch you going and coming, and squeeze a
good percentage off every dollar that passes
through their hands. Why, if you should
draw siO at one of these banks and spend
u day changing 1t back and forth into silver
and gold, by night time IT would probably
have diminished to nothing, the bank hav-
Ing eaten up the whole as its commission
for making the exchanges. The Hong-Kong
and Shanghai Bank, in some cases, charges
for caShing its own bank notes. This is
the case with the notes OF the Hong-Kong
branch when presented at Shanghai.
AS an evidence OF the profits of these In
stitutiona, L have before me the half-yearly
statement of the Hong-kong and Shanghai
Bank for the six months ending with last
December. The figures are in silver, the
money J. shall use in the remainder of this
letter. You have only to divide the amounts
by two to reduce them to gold. This state
ment shows that the bank made during
that six months, after deducting all bad
or doubtful debts, total profits amounting
10 more than 100000. This was on a
capital of $4,000 900, and 1t means a profit
of 80 per cent In six months, or of 60 per
cent a year.
During that period the bank did a bust
ness of more than $780, 5O.0 900. Its deposits
were more than $4,000, D00, and 1t had
credits. loans and discounts of more than
$9.W0.oo0. 1t paid 100000 to its stock
holders. added almost a million to a new
profit and loss account and put away half a
million to its reserve fund, which already
amounted to 81. 900. 900, or 81, 900 more
than its capita, stock.
This bank has always made money, but
its profits have been materially ncrea sed
since the Americans came to Manila by the
business of the branch here. which ia the
chief depository OF the United States Gov.
eminent. and handles several million dollars
worth Of Our Government funds monthly,
1t charges the highest rates of exchange,
; and does it in such a way that many OF the
Americans are praying and hoping for al
American bank. such a bank would. OF
course, have the Government funds, anc
upon these alone It could mako Il profit.
A Queer Bank for the United states
The Banco l1spanoi-b1Iipino occupies q
curious financial position In tho islands. l.
Is q Spanish institution, but &, claims I,
GhSc q cGpCchsloH Dy WHICH II IN the only
bank that can issue notes OF circulation
This was its position under tho Spanist
regime, and to-day tho only notes In oircu,
lation here are those Of this bank.
The f3arco Espsncl-Filipino claims thai
the United States. by the treaty OF Paris
has no right to establish a national bank
nor 20 issue Greenbacss or other circulating
notes, ] doubt, however, whether its cInini
viii hold. and ! nin much inclined 10 be
1ieye thai is extension OF charter 10 1872
was rnsas after our war with Spain was 4,
progress. ana with q Wow 10 such "A com
plication as has arisen. ] have had Rcces,
80 the bylaws OF the bank, and can give
Dtiis OF lis history. IL whs established IL
1854, villa Ii capital of $4,000. and d char
ter OF twenty-five years was granted, thu
bringing lis life lip 80 1851. Ths last extern
sion Oh wfisTl tho eihiff1 of tks bank is .naf,
is not fasnti9nsd In the translation Of tn,
bylaws and regulations OF the bank o,
Mo VITA eaF Geye,los General, and 1t wa
probably OF foo late a date 10 get in,
Tbs Bataes espaHa!=Fi!ipin has aiwayI
bssti q 3etisy=snhkin institution, and al
though il lost considerable at ths time o
The sefi9iest OF Manila through ths Span
isR et1issfs. its stock is now quoted at 10
per eefat above par. il paid not lens age
~falf-yeaf7F dividend of ! per cent, and tina
Oh Sl.aeo3us, the amount 10 which the Cap
ttai has BeeR Increased frefa time 10 tins
BY tbs laws of the bank the Governor Gen
eFai OF tbs islailas is its eaisf djrester, an
~ Per esiii of tRs profits must go tsf In
airseteFs aaa tis government board, s
thai OF lbs sisa;aSa that lbs bank earnsl
during tia abaTe Six months 81, 266 81, ou!d b