The Washington times., 1901-12-01
DISTINCT COINAGE
FOR PHILIPPINES.
RECOMMENDATIONS OF CONANT.
Unwise, He Snys, to Introduce the
American Dollar as the Sole
Standard of Money In
the Islands.

Provisions for distinctive coinage sys-
TEN and for opening the way for Ameri-
can banks in the Philippine Islands are
embodied in a special report of Charles
A. Conant, which has been sent to the
President by Secretary Root for trans
mission of Congress as an appendix to the
report Of the Secretary of War.
Mr.. Conant was given a special commits
sion by Secretary Root to investigate and
report upon the state of coinage and bank
ing in the Philippine Islands, and was alb
ut from Washington upon this mission
bout four months. Mr.. Conant recon-
pared for the Philippines. and that the
quantity of this coin be regulated By the
Philippine Government.
Provisions for New Coin.
The provisions for the new coin and for
maintaining its value are thus set forth
in the report:
THAT there should be a distinctive
Philippine coin of silver, which should be
legal tender for 80 cents in the gold money
of the United States.
THAT this distinctive silver coin should
be known as the peso, should contain
twenty-five grammes of silver Of the fine
ness of SS5 ne-thousandths, and should
be divisible into one hundred equal parts
called centavos.
That the distinctive coin should be
maintained at par with gold by he limi-
tation of the amount coined and by gold
reserve.
THAT the new coinage should be ex-
af int NJ
Manila, and should be a distinctive de-
vice expressing the fact that it is intend
ed for use in the Philippine Islands
Opposed to n Sole Standard.
The report opposes the immediate intro
duction of American currency as the sole
money of the Philippines, because of the
confusion which would be introduced by a
new standard in the relation of prices
and wages, and because .he present scale
of wages and prices requires a smaller
unit than the American dollar. 1t also
suggests that there would be great dam
ger of counterfeiting if American silver
dollars were put in general circulation
containing less than 40 cents in silver
bullion and offering premium Of more
than 100 per cent of the value of the bull
lion to the successful counterfeiter.
The adoption of gold as the basis of the
new currency is recommended, in order to
establish a fixed relation Of two to one
between American money and the cur
rency of the Islands.
Want American Hanks
1t is pointed out that there is great
eagerness among Americans in the Phil
ippines. and among japanese merchants
dealing with the United States. to have
branches of an American bank opened
through the Orient. The following rec
concentrations are made. therefore, re-
garding the extension of banking in the
islands;
THAT national hanks established in the
Philippine Islands and national banks of
the United States should have the authori-
ty. with the approval of the government
of the Philippine Islands. to establish
branches in any part of said islands and
in the United States but that branches
in the United States should not be per-
mitted to discount commercial bills or to
make advances upon securities, when such
transactions are carried on wholly within
the United States.
'.That the power to issue notes should
not BE- granted TO any bank having a capi-
tai of less than 100000.
As to the Guaranty Fund.
THAT the guaranty fund constituted by
the payment of the tax upon circulation
should be employed for the immediate re-
demption of the notes of failed banks. but
that such fund should have a lien upon the
assets Of failed bank for the amount
thus paid for the redemption of the notes.
That the Treasury OF the United
States should be authorized to receive
deposits from the government Of the
Philippine Islands. and that the Treas
uries of the two Governments should be
authorized to carry on any convenient nd
proper transactions with each other.
THAT the Treasury of the Philippine Isl
ands and its branches may be designated
by the Secretary of War as legal depos-
itories of public money"