Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-08-06
Application 8 Sor Banking Charters in
the Philippines.
WILL AWAIT ACTION BY CONGRESS
Some Believe That the Nationa
Law Applies.
IN CASE OF PORTO RICO

awaiting with great interest the enactment
by Congress of national banking law for
the Philippine Islands.
There are now on file, with the controller
of the currency many applications for the
establishment of national banks in the
archipelago but under the circumstances
the department is not empowered TO act
in the matter.
At present there are no national banks
in the Philippines. Virtually all of the
banking business performed there is done
by private concern, which has been in
existence for some years, and which even
under the Spanish regime transacted a
great proportion of the banking affairs of
the islands. The situation is SUCH there
fore, that the islands offer a wide field for
the operations of national banks and any
banking institution established there under
the direction of the United States govern
ment will most assuredly absorb the lions
share of the constantly growing banking
business of the archipelago.
1t is with this view that capitalists have
made application for the organization and
establishment of national banks in the is
lands. Such applications are at present
pigeon-holed. and until the office of the
controller is authorized under statute yet
to be enacted they will remain So.
AS the situation now stands there is no
banking law applying to the Philippines.
Although the affairs of the islands are
under the supervision of the civil COM
mission, of which Judge Taft Is chairman,
no law has been promulgated which war
rants the establishment of rational banks
there. 1t therefore remains for CoHgre IS
to act.
Congress must either enact a banking
law especially for the islands or it must
decide that the present national be mixing
laws of the United States apply.
The Case of Porto Rico.
The latter position was assumed by the
Attorney General recently in a decision
rendered at the instance of the Treasury
Department in the matter Of the applica-
bility of the banking laws of the United
States to Porto Rico under the general pro-
visions of the Foraker act. While the stu-
alton in the Philippines is no doubt some
what analogous to that of Porto Rico it is a
much mooteG point as to whether the gen.
eral banking law will apply also to the far
eastern possessions.
1t is anticipated in some quarters that the
banking laws of this country will be held
to apply to the Philippines just as they ap-
ply to Porto Rico, although in regard to the
Philippines no general law bearing upon the
islands has been enacted such the Fora
ker law applying to Porto Rico. II is true
that the Spooner act was passed to apply
directly to the Philippines, but the provis-
ions of this law are held by high authority
as not applicable to the same relative de-
gree as the Foraker act.
Congressional action on the subject, how
ever, will decide the point conciusively, and
inasmuch as the Supreme Court has held
that the national legislature has plenary
authority to prescribe law for the new ter
ritories any action which 1t may take will
be decisive
Question of Residence.
In this connection, however, the opinion
is expressed that it will be judicious for
Congress to enact law that will obvfate
the Objectionable grounds that have stood
in the way of the establishment of national
banks in Porto Rico. AS was pointed out
in The Star several days ago the law as it
now applies to the latter island provides
that the directors of any national bank
there must be American citizens, three
fourths of whom must have resided in the
island at least one year prior to their elee-
tion to office AS result of this provision
capitalists willing to invest their money
in this direction have been repulsed, there
being an unwillingness on the part of the
prospective investors to comply with the
law relating to a prescribed residence of
one year. The question is whether 1t will
be wise to apply similar law to the
Philippines The same objections will prob
ably arise in case the law is not changed,
and unless a departure is made from this
provision it is probable that the same dis
couragement lent to the establishment of
national banks in Porto Rico will obtain in
the case of the Philippines.
Citizenship of FiIipfnOs.
The question of American citizenship In
case 1t is intended to identify Filpinos
with the ownership and dictatorship of the
banks will also arise The problem Of
Filipino citizenship must be precisely set
tied before the natives can be legally in
yolved in this respect.
Altogether, the situation as 1t now stands
is a perplexing and unsatisfactory one. The
a. -s,I.,
tion will clarity the situation, however. 1t
is earnestly hoped at the department that
the House and Senate will pass some meas
ure eliminating the objections enumerated
and which will tend to encourage the de-
velopment of national banking affairs in
the islands