Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-03-12

not there is any basis for looking 1or
such an end has not been stated.
These matters are today retarding
the trading on the local exchange, and,
in view of the limited daily transac-
tons and narrowness OF the demand
local stocks and bonds are showing
excellent strength-but not based on
the returns on the investment.
Financing the Philippines.
British banks have heretofore financed
the moving of the Philippine crops,
and a large part of the exports have
been carried direct to England for dis
tribution.
In this day hemp. however. one of
the great commodities of the Philip,
pines. is finding its way to the United
States for distribution.
This situation was made clear by DR..
II. Parker Willis. secretary OF the fed
eral reserve board. who is to be presi-
dent of the Insular Bank of the Philip
pines Bank. and organize a new bank
ing system founded on the plan of the
federal reserve system in the United
States.
The law provides that the Insular
Bank may establish branches in the
United States. and it is probable that
a branch bank will. sooner or later
be situated at either San Francisco or
New York. to take care of the export
trade of the islands.
Charles c. Robinson of the Irving Ma
tional Bank of New York city has been
selected by DR.. Willis as his lieutenant
in organizing the 1nSular Bank. Mr..
Robinson will be one of the executive
officers of the bank. probably desig-
mated as second vice president. Samuel
Ferguson. a Washington man, who is
engaged in banking in the Philippines.
probably will be the first vice presi-
dent.
Mr. Robinson has . uide exnerianca
in internal banking administration. He
is now auditor of the Irving National
Bank. and is an expert financial &C.
countant. When DIR. Willis abandons
his post as president, which he as
sumes only for time. in order to put
the new financial system into opera
ton, as its author and best exponent.
it is possible that Mr.. Robinson will
remain behind to carry out his ideas.
That is a matter to be decided by fu-
ture developments.
Mr.. Robinson is one of the group of
banking experts who co-operated in pre-
pairing the plans for the initiation Of the
federal reserve system. report made
by him was submitted and considered
by the organization committee, which pre-
pared the way for the federal reserve
board.
The condition of international British
banking in the Philippines, it is under
stood. has its parallel in every foreign
country where British bank is located.
Even in India. British possession, the
lack OF home backing is felt. it is said.
1t is the intention of the new Insular
Bank of the Philippines to obtain finan-
cial backing in the United States, Offset
ting the loss of British aid in insular
financial affairs. Where this is obtained
is likely to determine the location of any
branch bank in the United States to take
care of the distribution of Philippine ex-
ports.
Banking Problems of 1915.
DR.. II. Parker Willis is to deliver the
second of his lectures on this subject
before the postgraduate class of the
local chapter Of the American Institute
tomorrow evening, at 1914 street
northwest. 1t Will be an open meeting
and visitors are welcome.
Mobilization of Securities.
1t is stated that the British govern
ment now has about $1,000, 900 600 Of
American securities mobilixed and
ready to be used as deemed wise.
The big fve-hundred- million dollar
loan enabled the Anglo-French govern
ments to finance their operations on
this side without heavy selling Of
American bonds aSd stocks. With the
call for the final payment of the last
installment of the big loan, $50. 000. 900
by bankers, the necessity for further
resort to the use Of modified securities
develops.
Heretofore the handling of these Sc
curities has been so guarded as not to
press too heavily on the New York
market. There are two ways to liuui-
ate the holdings, one by selling In the
open market and by using the stocks
and bonds as collateral to secure
credits.
1t is not the intention of the British
financiers to dump the securities on the
American market. They will continue
their process of feeling the market and
feeding il stock or bonds. stopping the
flow as the market shows signs of
weakening and increasing it on strong
spots.
English bond and stock holders are
being paid 2k per cent premium on the
day OF the sale of their securities,
which, however. does not suit the own
ers, as they demand the premium on