Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-31
PHILIPPINE BANKS.
Reports of Their Condition Provided
for by Recent LeKislation.

The division of insular affairs, War De-
partment, has made public the following
interesting statement from the report of
the Philippine commission dated November
30, 1900, relating to banks. The report of
the treasurer contains statements as to the
financial condition of the banking institu-
lions doing business In the islands, and the
reports Of each of such institutions. AS to
the two principal banks, the Hong Kong
and Shanghai Banking Corporation and
Chartered Bank of India Australia and
China, a statement Of their local condi-
ton throws little light upon the security of
the government deposits with them. It
must depend upon the sovency OF the two
corporations as whole and not upon the
local cash balance or available assets Both
banks are powerful institutions, having a
large capital and great reserve, all of
which stand as security for the government
deposits aside from the 81 900 900 Of bonds
which they have deposited for that purpose.
There is nothing known to the commission
that would indicate any doubt as to the
entire safety Of the insular deposits in these
banks, but in accordance with the recon-
mendation of the Secretary of War legis-
latfon has been enacted providing for re-
ports by all the banking institutions Of the
Islands, to the treasurer, at such times as
he shall call for them, and requiring him
to call for them with sufficient frequency
to enable him to be thoroughly informed
as to their condition from time to time. and
institutions by the treasurer The business
of the banks there has been highly profitable
since American occupancy.
1t is very desirable that banks should be
established in these islands, organized I'M
der laws of the United States Apparently
congressional action will be necessary to
extend the system of national banks to the
Philippine Islands. and to enable such in
situations to be organized here. under the
safeguards thrown around them by our
laws. TO be able to compete with the
banks now doing business in the Philippine
Islands national bank should have ample
capital The transactions in exchange
growing out of the large exports and I'M
ports. involve great sums in the aggregate
and In individual transactions, and an
American bank ought to be able to meet the
requirements of the largest business inter-
ests in this respect. The deposit of funds
of the insuiar government would doubtless
TO considerable extent, be made in the
United States banks, and their deposits
from individual commercial establishments
would be large: the business Of exchange
would be highly profitable and as the in
dustry and commerce of the islands con-
TRUE TO be developed, money would be in
demand. so as to keep all available funds
safely employed all the time. Such banks
also would relieve the currency situation
to degree by furnishing paper money for
ordinary business uses, which has great
advantage over the bulky silver now gen.
orally in use.
The existing law relating to the Filipino
Spanish Bank is fully stated in the docu-
ments contained in the treasurer's report
above referred to. The bank was in
somewhat straitened condition soon after
the American occupancy, owing to the
large advances which were made to the
government of Spain. but its claim against
the government of Spain has been adjusted
and there is nothing now to indicate that
ia r,f In rufA ton, . f~
paying per cent dividends and It's stock
sells at considerable premium. The
amount Of bank notes or bills issued by 1t
gust 81. 1900. was 81. 700 100 (Mexican). The
amount outstanding at corresponding date
In 1898 was $2.606, 400. and In 1899, $2.977.
a95. 1t Ii supposed that considerable por-
ton of this paper money has been lost or
DESTROYED.