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

bullion and coin it into pieces having an
exchange value in the Philippines of Oh
cents gold. These coins, with their cor
responding subdivisions, will replace in
popular use the Mexican silver dollar, as
we'll as the Spanish peso, without any
sudden shock to values or TO the denom-
ipations of currency to which the people
have long been accustomed. 1t is pro-
posed that only such amounts shall be
coined as would meet the needs of trade
in the Islands at the parity fixed by the
law.
1T is recommended that further meas
ures be taken similar to those adopted
in the United States for securing the
parity of gold and silver. The most OBJ
vious of these measures is the creation
of a gold reserve from which gold could
be paid for silver if necessary to main
tain confidence.
we think it is desirable, if a gold
standard is thus established, that some
additional power should be given the
government of the Philippine islands to
maintain the parity between gold and
silver in case it should be threatened.
1T is the purpose and expectation Of
the commission, in case a distinctive
coin is adopted for the Philippines, to
introduce that coin as rapidly and COM
pletely as possible into the currency sys-
tenn of the islands. 1t is believed that
the Mexican dollars will rapidly disap-
pear IL they cease to be a legal tender
for debts after a prescribed date. They
contain more silver than the proposed
Filipino dollar, if the plan of the COM
mission is adopted. This will tend to
expel the Mexican dollar and keep the
new Filipino dollar at home for the use
o. the OF the Islands.
ct is hoped that congress will see fit
to fix a short period within which all
preparations shall be made for the adop-
ton of a new distinctive coinage, in or
der that a proclamation may thus be
made that the currency of the Philip
pine islands is fixed beyond question up
on the standard of other commercial ma
tons, and that capital nay safely come
here for the purpose of trade and per-
,manent investment
The commission recommends that Leg
~islation is necessary to promote the es-
adjustment of national banks in the
Philippines. In this connection the COM
mission says:
We believe that the volume of paper
currency can best be regulated by the
needs of trade thru banks of issue. It is
not necessary to abolish all safeguards
for the security of bank notes, IL the re-
quirement is modified that bonds be de-
posted in full for the amount OF notes
thus issued. Reasonable safeguards
would apparently be thrown. around
such notes by making them a first lien
upon the assets of the issuing bank. X
cept a lien in favor of the United States
and the Philippine government for their
money In the custody of the bank.
Large banks would be much more po-
tent than small ones in dealing success
fully with the conditions of these
islands. Transactions in merchandise OF
the United States, in the encouragement
of new enterprises and in the shipment
of native products are likely to be upon
e large scale and to solicit the aid of
capital in large amount. A large bank
has advantages in he character of its
management, the greater experience OF
Its officers and In the power to COM
.mand aid from the other great banking
institutions of the world over local
banks without such connections and
risking their entire credit upon loans
In a single community. 1t. therefore.
seems undesirable that any bank with q
of less than 100000 in gold
should be permitted to issue circulating
notes or to establish branches in these
islands"