New-York tribune., 1921-02-26
Philippines
In Chaos; Big
5 Harding Task
Continued from sass eHe)

y
get the bank out of it's troubles. Mr..
! Wilson is giving close~attention to the
Shanghai agency complications, though
he has not gone to Shanghai person
ally.
Mr.. Wilson succeeds Nenancion Con-
ccpcion. Filipino politician, as general
manager of the Philippine National
Bank. 1t is his son. who is vice -prcsi
dent of the institution and who has
been sent to Shanghai, with counsel,
to probe the Shanghai agency. Ven
ancion Conception, Known as General
conception, was put into the Office of
general manager of the bank through
the influence of Sergio Osmcna, the
Speaker Of the Assembly.
Ventures That Caused Losses
ln-judged credits to hemp exporters.
costly financing OF sugar centrals. loans
to concerns in the cocoanut oil indus
try and financing of men who took over
former German properties are among
the chief ventures that have caused
the bank heavy losses or have caused
tying up for long periods Of funds
which under good banking manage
ment would be more liquid. About So
C0O,0O0 is said TO have been lost in
backing up hemp spectators. Some
thlng like S16,000,0O0 it is charged.
has been tied up in Developing sugar
centralS, and while this money in time
will be realized, it is not Of present
Use TO the bank. Financing Of large
cocoanut oil mills and other agricul-
tural and industrial enterprises has
been carried on in the same fashion,
serving to tie enormous sums I'D in
longtime investments, it is alleged.
In an effort TO strengthen the bank
the Philippine government has in
creased The capital to 50,000.o00 pesos,
OF about $25,00o,000. It was formerly
2Q,O00,o00 pesos. Illustrating the ills
OF the management of the bank and
talr5, some months ago there was de-
pos ted with the bank by the treasurer
OF the islands nearly $G8, 100000. This
"aS part Of the gold standard reserve
fund OF the Philippine government. The
DEPOSIT was made without the approval
OF the Bureau of Insular Affairs here.
As matter Of fact, officials here say
fatty i should moi have been done
This operation has decreased the power
OF TIE government Of the Philippines
to sell exchange OIL New Yori. and
maintain the reso 1t parity. The
premium on the dollar is gradually
rising, TO the h:ndrauce OF trade.
Adding to the difficulties of the
islands IS the fact that exports OF its
products are slow, under present
world trade conditions. This cripples
business, calls for more demands on
the banks aid lowers exchange. That
the exchange situation is not good may
be judged from the fact all the banks
in Manila agreed recently not to sell
New York exchange until the end o.
February.
Harrison Is Blamed
Governor General Harrison is con-
sldered largely responsible for the
condition Of things. His policy of dis
placing Americans by Filipinos in the
government has been held hurtful both
to the bank and on a broader scale.
His administration has been such as to
encourage political leaders OF the type
of Osmena and Manuel Quezon. presi-
dent OF the Senate Of the islands. who
are capjtalizing the movement for in
dependence, but it has not commended
itself to many Of the substantial ma
tiyeS.
To illustrate the way things have
been under Harrison. Samuel Ferguson,
formerly secretary OF Harrison, four
or five years ago was made head of the
Philippine National Bank. lie was
without banking experience. Ferguson
is now dead. II may be said, however,
that he managed the bank more con-
servatively than did his successor, the
native General Conception.
The trend of events in recent years.
with the independence movement fos-
tered by Harrison and backed up by
the Wilson Administra tion, is rega rded
as showing that if the islands we're
set free they would soon be in chaos
under the rule of group Of dema-
eogues. This says nothing abou5 the
likelihood that Japan would gradually
reach out and impose her will on the
islands. 1t is not overlooked here that
some OF the leaders Of the independ-
ence movement went 70 Japan not very
long ago and we're dined and wined and
teted thel1.
Creation Of the Council of State of
the Islands by Governor Harrison, at
inc insistence OF Osmena, is one of the
things that goes against the grain of
Americans who want the American
system 10 obtain. 1t is contrary 10 the
American idea Of government and Pres
ldent Mchinley's instructions for deal
ing with the islands.
Politics Rules Court System
The court system is alleged to have
fallen under the domination Of the ma
tive politicians. The Philippine gov
eminent, too. is Gradually ou8kinc
American teachers by the process OF
cutting salaries To-day there are
about 500 American teachers there.
against more than 500 fifteen years
ago. osmeua and his aids are opposing
the spread Of me English language and
encouraging Spanish, according TO in
formation in the possession Of com
mittees Of Congress. The hostility
they show, along with certain other
influences, to the spread Of thu Ian
cuage Of thc United Statcs is ANYTHING
bot p4easing 10 patriotic Americans.
1t is because Of such thugs as these
that there j. expected 10 he nov deal
when tho Harding Administration gets
under way Either there viii bc an in
vestisation ordered ny Congress or