New-York tribune., 1902-12-09
PHILIPPINE FINANCES.
NEED OF II GOLD STAND
ARD.
Agitation for Gold Basis m Frenci
Colonies Enforces the Demand.
TBY TELEGRAPH To The TRIBUNE

tBY TELEGRAPH To The TRIBCNE.l
WASHINGTON Dec S-Careful students OF
| monetary conditions in the Far East regard
| the present agitation in France in favor of a
| change to gold basis in French Indo-China as
| likely to cause the most serious disturbance in
! the conditions governing the Philippine none
tary crisis. This action of the French Govern
rnent is strenuously urged. was pointed out
by The Tribune's Paris correspondent on Sun
day. to meet the new conditions caused by the
unexpected action of the Siamese Government III
taling q similar step While the action of Siam
is fraught with considerable Importance to the
Philippines, since the annual exports from that
kingdom to the Philippines approximate SoOo,-
600, any measure in the French East Indian
possessions will be infinitely disturbing.
The trade of the Philippines with the French
colonies is almost confined to the article
of rice From the Indo- Chinese ports there were
received in the Philippines in eleven months or
the last fiscal year ended May /, imports valued
at 50 $50 10S OF this amount rice alone was
valued at over 81, 100000. In return Indo-China
received Philippine imports to the value of only
S1,51S. The balance Of trade annually for the
twelve months is thus nearly S3OO0OO0 against
the Philippines. The result of adoption OF the
gold standard in the French colonies would.
therefore be attended with the most serious
consequences in the Philippines nearly quar-
ter of whose imports and more than half OF
whose main article Of food, rice, is derived from
this source, and would have to be PAID Tor III
gold. The British Straits Settlements are also
on the point of making the change to a Solo
bass-a fact more significant in influencing snl-
lar action in the French colonies than IN the
Philippines. It is consideration of these conol-
tions which is increasing the apprehension Of
the administration over the Philippine financial
situation. The depreciation of silver, the climax
of of PhilipDine
be greatly stimulated by any such action as an
adoption Of the gold standard by the French
and British colonies. This would leave China
and the Philippines alone in the silver market
THE TRIBUNE's VIEWS INDORSED.
The result of a study of these conditions has
brought a decided sentiment in favor of Sena-
tor Lodges bill extending the United States
monetary standard to the Philippines In line
with the editorial comment in this morning IS
Tribune on this question is the following state
ment, made by official conversant with the
needs and problems presented by the question:
There is" said he, "one thing Of paramount
Importance asked by the Philippine Commits
sion representing the wishes OF the Philippine
people, and that is financial legislation. It is
admitted on ali sides that the provision of the
act OF July l. 1902 relative to a subsidiary coin
age, was i'll advised, if not absolutely imprac-
ticable 1t provided for the coinage of a frac-
tionaI currency and declared that the same,
when coined should be legal tender 10 the
amount of SO. The commission did not avail
itself of this authority, because, although the
need for more fractional currency is pressing,
vet there was no way of determining what sort
Of dollar the said fractional currency ShoUIQ
be parts of. No standard was established; neither
the gold dollar the Mexican peso nor any
thing else was to be divided into parts; so the
commission was compelled 20 get along with
what little change 1t had rather than Ia COM
plicate the situation by issuing 'TopSy' halves,
which, like their namesake. would be born with
out relations. The plan explained in The Trto-
IIne is the plan that has not merely the recon-
mendation OF the Secretary OF War, but is also
the recommendation of Charles a. Couant TO
Congress last year. It has further the unquali-
recent report on the economic conditions in the
Orient The fluctuatng rates of exchange. the
different classes of currency In circulation, with
bankers and money changers clipping the coin
at every turn, have proved a discouTaging OBJ
stacle 90 the transaction of business and the
development of the country. and at the same
time q source of constant loss to the government
of the islands.
Vice-Governor Wright, who is here direct from
the Philippines, and is thoroughly in touch with
the situation, will appear before both Senate
and House committees and explain the actual
conditions in the islands and the desires OF the
commission These last well known as
they have been shown in the reports and cor
respondence of Governor Taft and constantly
advocated. Doubtless the new developments
in the East springing out of the abrupt action
OF the Siamese Government will contribute one
more argument in favor of the adoption of the
gold standard. At least this is the belief of the
officials close 10 the situation.