Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-09-14
Editors Letter Box
From Philippine Press Bureau
Philippine Press Bureau,
Washington, ID. G.
August %, 1928

Philippine Press Bureau,
Washington, ID. G.
August %, 1923
Editor Journal.
Augusta, Maine.
Dear Sin:
VIII YOU kindly allow me space in
the Journal to answer your editorial
Of August 81. in which YOU discuss
the Philippine National Bank.
The troubles Of that Bank were due
first. to the fact that the Bank loan
ed too much money to growers OF SUI
gar, cocoanuts, hemp, etc. during. the
war when the prices of these staples
were exceedingly high.
When the bottom dropped out OF
prices the bank was naturally unable
to Immediately collect the large sums
that had been loaned to these typical
Filipino industries.
The effect was the same as that
which has been experienced and is
today being experienced by thousands
Of banks in the agricultural states of
the American Union.
| will undertake to say that the
PHILIPPINE National Bank today is in
no worse condition financially than
hundreds Of banks in the wheat
growing sections of your western
states.
The second cause of the banks diff
firultios was the unfortunate fact that
dishonest man was appointed presi-
dent of the bank. AS soon as it was
learned that this official had violated
the banking laws of the Philippine
Islands. he was arrested, promptly
convicted and is lin the penitentiary
today. | understand that such spec
dy Justice has not always occurred in
instances in which bank presidents in
this country have violated the bank
inc laws of the United states.
The government of the Philippine
Islands is not insolvent. 1t today has
on deposit in American banks $50
219.S4a0l in gold. On the very day
that your editorial appeared Governor
Wood declared in public statement
issued in Manila. there is no cause
for apprehension, the Philippine Ma
tional Bank is in better shape now
than it has been for the last
four years"
This is not due, however. to Genor-
al Woods administration, but in spite
Of it, General Wood wanted to close
this bank out soon after he went to
the Islands. Had the Filipino leaders
permitted him to have done 50. the
bank would only have lost millions of
dollars that it has since collected, but
hundreds of Filipino planters and
scores of Filipino business men who
are today solvent would have been
forced into bankruptcy.
The situation is exactly the same
as that today involving hundreds of
small banks in the agricultural sec
.: :
dent Of a certain bank in the west
recently said IF the banking laws
had been rGidly enforced my bank
would have been closed on several
different occasions. We had loaned
money when wheat was $3.50 bushol
ana because Of q sudden drop to less
than Sl00 4 bushcl at our local mar
l5ets the farmers were unable to meet
their notes whom due. If the bank
examiner had forced us to liQuidatc
it would not only nave ruined this
bank, hut scores Of our farmer eli
ents The bank examiners had to be
lenient with us. for the reason there
were hundreds of other banks in eN-
actly the same predCament. Had the
law been strictly enforced there
would have been wide spread fl
nancial disaster in the United States,
but as it is we are gradually collect
ing the money owed us and every
thing is going to work out nicely in
the end"
Only recently r. w. Wilson. an
American of high standing in bank
ing circles. resigned a manager OF
tho Philippine National Bank because
he could not countenance the destruc-
tive and dictatorial attitude of Gov
crnor Wood toward the hank. He
said that if Governor Woods policy
was carried out it would mean the
ruination of the institution.
In making public the confidential
bank examiners reports of the con-
dition of the Philippine National
Bank General Wood was most unfair.
The articles printed in the American
papers did not state the important
fact that the reports he made public
indicated the condition Of the bank
two or three years previous and not
Of today. Furthermore, the Governor
only made public such parts of the
bank examiners reports as made the
affair look worse than it really was.
which | frankly admit was bad
enough. He suppressed those reports
which would have put a better face
on conditions.
1t is charged by some Of General
Woods supporters in the the United
States that there was plot on the
part of Senate President Quezon and
the Speaker of the House Roxas to
suppress Governor Woods message
revealing the confidential bank ex-
aminer's reports. 1t is worthy of
passing note that Governor Wood
sent this report TO the legislature last
February and that he meyer said any ,
thing about its suppression until |
after the break between the leaders of |
the legislature and himself, and on
the eve Of an important election in
which he was tho issue.
II there was plot to maintain ST