The times., 1900-12-24
AN UNSOLVED PROBLEM
The Currency Question in the
Philippine Islands.
Recent Conditions Demand Its Set
t1ement-ReHort of the work Of
the Principal Civil Departments
Receipts and Disburse
Efficient Customs TnriG Needed.


ment. The report covers the work of
all the principal civil departments, in
eluding the judiciary, customs service,
postal service, public works, public in
struction, mining, forestry, prisons,
treasury, and auditor. Capt. E. H. Crow
der. Secretary TO General Macarthur,
gives a report briefly outlining the work
of these departments.
He says that the problem of securing
stable currency appears never to have
even approached a definite solution in the
Philippines. During the period of Ameri-
can rule the problem did not press for
immediate settlement until quite recently,
when the exchange rate between United
States currency and Mexican silver fell
below the commonly accepted commercial
rate of to l. When the daily bank rat
reached 1.9s and promised TO go lower the
trade in Manila reduced the rate at which
United States currency was accepted,
even lower than the bank rate, and it
was reported that in certain remote local
tiles in the provinces, where conditions
were imperfectly understood there was for
few days an even exchange of United
States and Mexican dollars
Captain Crowder reports that the bal
ance on hand at the end of the fiscal year
of 1S99-1900 was 40i5. 3.51 pesos, and on
August 81, 1900. $50, ,015.4S. He says:
ITO this should be added the amount of
Spanish seized funds of 800 sc pesos,
making a grand total of available assets
on August 81 of 7,41G, 1854 pesos" From
the report of the auditor he shows that
the total receipts from January l to Au-
gust 81, 1900, were, in Mexican currency
s12.041 .5O4.f1, and the total disbursements
he fn1
leaving a surplus of 81, ,633, SIG.
OF the receipts, those from customs
amounted to $685., 1855 from internal
revenue $500, ,4S4.97 and from miscella-
neous and all other sources $1,1S6.0 0S3.
These figures do not include receipts for
the same period from the postal service
of $92, .9S with disbursements for the
expenses of such service amounting to
31,4OS.34, both amounts being named in
American currency. The report explains
that recent instructions have been re-
eeived from the War Department reQuir
ing a reaudit of all accounts from the
commencement of the American occupa-
ton of the islands.
1t is shown that the customs receipts
for the fiscal year ending June 80. 1900,
amounting to s11, Asa, ,S1303. Mexican cur
rency, is more than twice those of the
year 1897 under Spanish administration 12
per cent more than the total for 1896 and
% per cent greater than the entire reve
Hues of the archipelago from all sources
for the year 1885, The total cost of the
collection of customs receipts was less
than per cent of the receipts.
Referring to the work of framing an ef-
fcient customs tariff, the report gives the
result of the work cf board of officers
appointed to submit a revision of the ex-
listing tariff. The report says:
In the revision thus proposed and rec
lad 60 .Itnrsa h..- hxar vaI
in almost every case. The reasons ad-
vanced by the board for this are the diff
culties and confusion that would probably
attend the unavoidable mistakes of i'm
porteTs in changing to an ad yalorem sys-
ten when the commerce Of the islands has
been built up under a system of specific
duties. This objection, considered with
the opportunities for fraud afforded by
system of charges based upon consular in
voices and the consequent temptation to
underyaluation of entries, would. it was
felt outweigh the advantages to be had
from the more equitable distribution of
charges attainable under an ad yalorem
system.
1t is recommended that agricultural ma
chinery be allowed entry free from duty,
with the same provision for limited pc
riod in the case of railroad equipments and
machinery and structural iron and steel
when imported direct by persons or cor
porations residing or transacting business
in the Philippines for their exclusive use.
II is also recommended that the duty be
materially reduced upon -four, which is
chiefly imported from the United States.
Regarding immigration the report says
that the enforcement Of the immigration
laws is in charge Of the customs service,
which during the past year was charged
with the application of the regulations to
more than $4,000 Chinese entering and
leaving the islands. 1t is not believed that
the existing laws OF the United States
should be applied to the Philippines, par
ticularIy with reference 10 the contract
labor question. The eoasting trade Of the
archipelago has been exceptionally good,
there being in the fiscal year ending June
30, 1900, 1886 entrances of vessels in the
soastwise trade at the various ports of
intry, with tonnage of 1905, and clear
Ynces of 1866 vessels, with tonnage OF
$50, ,992
OF ten internal revenue taxes under
Spanish law, the American military au-
thorities have enforced but three-the in
dustrial, urbana, and stamp taxes. The
first mentioned is an income tax on all
salaries over 500 pesos per annum. Ii also
comprises the taxes on profits of indi-
yiduals and corporations, approximating
per cent Of the net income Of such busi-
ness. The urbsna tax is also in the nature
of an income tax, falling upon incomes
derived from buildings, while the stamp
tax is similar in character to that enforced
in the United States. No land tax has
been applied in tho Philippines.
The report says of the judicial depart
ment: From the date of the rc-estab-
lishment of the civil courts it was ap-
parent that the laws of criminal pro-
cedure should be entirely substituted or
radically amended, in order to provide a
system which would be Givested of those
harsh and oppressive features so much in
conflict with American standards"
The personnel of the Supreme Court
has included three American judges, one
OF whom Associate Justice r. ". Young,
formerly major, commanding the Utah
Light Artillery, was appointed president
of the criminal branch TO succeed Judge
Raymundo Melliza Angelo, resigned.
The preparation of a reformed code of
criminal procedure was largely the work
OF Judge Young.
During the fiscal year there were regis
tered 6s1 certified copies of United States
patents and 1896 certificates of registra-
tion of United States trade marks. No
mining concessions have been granted
during American occupation, the work of
the bureau being confined wholly TO
Classification of the archives and an exam
ination into claims for concessions.
There is no Doubt says the report,
that radical changes are required in
the mining laws which were established
under Spanish control" Captain Crowder
says that the policy under which the
Spanish laws were framed seemed to dis
courage the development of the mineral
resources of the Islands