Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-01-02
MONEY PROBLEM IN PHILIPPINES.

some OF the UlIucuitleS winch the
Taft commission have met In handling
the currency in the Philippines islands
are set forth In a report Just received
at the war department. The abnormal
conditions. in northern China create n
demand for Mexican dollars to such an
extent that the supply of silver in the
islands threatens to be exhausted. A
customs export tax IN Mexican silver
of 10 per cent was adopted. This IA
a provisional measure in the hope that
congress would take action providing a
currency sytem. Failing to ecure the
necessary relief thru legislation, the
export tax was continued until thru the
natural course of vents the demand
for Mexican dollars In China gradually
decreased. On August 81, 1901, the
export tax vas repealed. For a time
the banks in the islands refused to re-
.ceive deposits inl none of the United
States, nor would they pay out United
States money. Instead they charged a
commission for exchange in each in
stance. In consequence Of this the
Taft commission passed an act requir-
ing the banks to pay in United States
or Mexican money or local currency
checks or drafts when presented and to
accept deposits in either money. The
commission believed that this simply
deprived the banks of a kind of profit
which it was unjust for them to a
as they were gaining 1t by a discrimi-
nation against the money of the SOW
ereign power In the islands" Because
of the difference in the value Of the
Mexican and American coins 1t has
hna,, ~Aoacco ,.r fn fcr.Ya Z, pv.0n1nx a a finr
establishing a ration Of 2 to ! between
the two currencies. The effect of this
order was that importers and others
paying taxes to the government met
them wholly in local currency. The in
sular government thus sustains a loss.
The commission has recommended a
scheme Of %recoinage for the Islands.
and IL 1t is adopted the Mexican dol
lars in the treasury can be recoined and
a large seigniorage will accrue to the
treasury. OF the necessity for a new
currency system the commission makes
the following recommendations.
I'VE call attention to the facts that
q stable monetary standard and suffi-
cient supply of sound currency are
among the ESSENTIAL requirements for
the development of any commercial
country; that the progress made in the
restoration of peace and order, and the
developments of business in
all directions, maxi the creation of
such q currency an immediate and
pressing necessity which should appeal
strongly to congress for it's early ac-
ton; that outside capital flows freely
to a country where the standard Is fixed
and certain. but comes only gradually
to one where it is doubtful in What
carried on and debts discharged; that
the existing currency mainly depends
upon the coinage of a different and dis
tant country; that the principal coins
in use, Mexican silver dollars, are made
from a metal which is fluctuating In
value In relation to gold. and that this
creates serious difficulty, and that the
Mexican dollar fuctuates. not only with
the value of silver bullion, but with the
difficulty of obtaining the dollar, de-
pending in part upon the special de-
mand for it in China and other coun-
tries, SO that its value in commercial
transactions is determined neither by
the price of silver bullion, nor by the
value Of a dollar in Mexico. nor it's
value in gold, nor its value in China.
but by o combination Of these influ-
ences, over which neither the govern
ment of the Philippine islands nor the
business men in the islands can exer-
else a calculable and permanent con-
troll.
"It Is recommended that the govern
ment Of the Philippine islands be au-