The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-31
MONEY IN THE PHILIPPINES

"A Manlla cable reports some disturb
aEce in business circles there over the
raising of the government rate Of ex-
change for silver, by the Philippines COM
mission, from the bank rate of $2.2S Mex
lean for one dollar gold to 1927 Mexican.
The importers who cannot get sufficient
gold are therefore obliged to pay duties
in silver at 1927. AS the principal cur
rency in the Philippines is Mexican silver,
the ratio of exchange between it and
United States money constantly fluctuates
the market value of silver changes and
rs the artificial demand for Mexican dol
lars increases or decreases in the Chi
nese markets. These fluctuations are
greatly injurious to business EXCEPT the
business of local banks and spectators in
currency. who are largely Chinese.
The root of the difficulty is the circula-
ton Of Mexican money. which, nominally,
over thirty millions of dollars, is worth
One-half that sum practically. 1t Is sim
gular that, under such circumstances, the
senate Philippines committee should pro-
ced to devise a scheme to have dis
tinctive Philippine silver dollar coined
with AN oriental device upon it, which
will only be legal tender in the Philip
pines and will not "go" In this country
This effort to do something for silver"
means that the committee would like to
continue permanently the silver basis in
the archipelago. The committee has been
encouraged to believe that an enormous
quantity Of our surplus silver may be by
this means worked off upon the Philip
pines. The proposition means that we
are to foist upon the FiliDinos coin
labeled one dollar which contains only Sc
cents worth of fine silver. 1t is argued
that, as the FiliDinos are accustomed to
the use of deprecated silver and the
trade of the islands is with silver stand
ard countries, they should have all the
deprecated currency they can use. The
fact, however, is that the trade of the
Philippines is with gold standard coun-
tries chiefly, and only China, which trades
with the islands. is silver standard
country If it may be said to have any
standard at all, and thus the trade argu-
ment falls to the ground. 1t is argued
that the introduction Of the gold basis
would anger the natives and make trouble
but prominent employers Of labor in the
Philippines say that the natives already
understand the difference between Amer
lean and Mexican money and where an
employe is entitled to $40 wages, he will
readily accept IS in money of our gold
standard
United States Commissioner Conant,
one of the best informed men in the world
on the Philippine currency situation, de-
clares that all projects contemplating the
continuance of silver basis in the Phil
ippnes without any fixed relationship be-
tween the money of the islands and the
gold standard, are. in his opinion, "hos-
tile to the best interests of the Islands
and to the development of American
trade" And he further said: The
tendency Of such conditions, from. the fact
that they are speculative, is to impose
a greater risk of loss and a greater
amount of uncertainty in business upon
the exporter and importer, and higher
cost of goods upon purchasers in silver
standard countries" And thus those who
speculate on the fluctuations of the cur
rency would be about the only ones who
would derive profit from such conditions.
Would it not be supremacy inconsistent
for the republican party, after having
fought and vancuished the free silver
movement in this country, to deliberate
ly countenance free silver scheme in the
Philippines, giving the people there a
standard which we have re1udiated en-
phatically here, and which the nation has
declared to be the standard of very low
degree Of civilization? Surely, in the
question of Philippine currency, 1t is a
matter OF national honor for congress to
provide a currency as good as our own,
for the foreign trade Of the islands is con-
Quoted on the gold basis and will con-
tinue to be so conducted. The most stable
standard of value cannot justly be with
held from a people whose best interests
we are pledged to promote.