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Banking, Currency and Finance in the Philippine Islands

1907; SAGE Publishing; Volume: 30; Issue: 1 Linguagem: Inglês

10.1177/000271620703000103

1552-3349

Henry C. Ide,

Microfinance and Financial Inclusion

When the United States government forces first occupied Manila, in August, 1898, and before that time, under the Spanish r6gime, the banking facilities of the islands were all furnished by three banks, the Hongkong and Shanghai Banking Corporation, the Chartered Bank of India, Australia and China, and El Banco Espanol-Filipino, the two former being English corporations of large resources, having branches in nearly all the important cities in the Orient, and the latter an institution incorporated under the laws of the Philippines and by special grant from the crown of Spain, and owned largely by the Catholic church authorities.The paid-in capital of the Hongkong and Shanghai Banking Corporation is ten million dollars (Hongkong or British dollars, of the value of approximately fifty cents more or less, varying with the price of silver) and a reserve or surplus of ten million more.The Char- tered Bank of India, Australia and China has a paid-up capital of ~800,000, and a surplus of 1975,ooo.The Spanish-Filipino Bank, or Banco Espanol-Filipino, has a paid-up capital of 1,500,000 pesos, or $750,000 of our money.These banks had branches at Iloilo and Cebu in the southern islands.There were no other banks in existence in any part of the islands to supply the needs of the eight million inhabitants, unless the Monte de Piedad be so-called, an institution founded largely for the charitable purpose of making small loans to poor people at low rates of interest, secured by the pledge of jewelry, household articles and apparel delivered into the possession of the institution, or, to a small extent, by real estate mortgages.This institution is still in existence, and is performing a most useful function.Its loans amount, on an average, to about 000,000 pesos.It has been con- ducted in a conservative manner and its losses have been few.It is mainly under the control of the Catholic church authorities,