Murphy wants lower general bank interes rate

Title

Language

English

Source

The American Chamber of Commerce Journal Volume XIII (No. 7) July 1933

Year

1933

Rights

In Copyright - Educational Use Permitted

Fulltext

July, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 5 Murphy Wants Lower General Bank Interest Rate Mills succeeds Schwulst on National Bank board, Rockwell retires, Cotterman and Day continue This page carries the balance sheet as of December 31 of the Philippine National Bank, considered one of the strongest central-bank balance sheets in the world today. At the stockholders’ annual meeting Governor General Frank Murphy congratulated the officers and directors of the bank on its excellent position, emphasized the importance of keeping bank assets liquid with ample security behind every loan, also the importance of reducing non-liquid accounts and the advisability of lowering the general bank interest rate. Joseph E. Mills, financial adviser of Governor Murphy, was elected a director and the vice chairman of the board of directors succeeding E. B. Schwulst. C. M. Hoskins and Benito Razon were elected directors of the bank. One directorship was not filled. By resignation, E. B. Schwulst, J. C. Rockwell and Jos6 de Leon retired from the board. An interesting chapter in the progress of the bank is its adventure in furnishing the bulk of the capital some 15 years ago to build six large sugar centrals for corporations organized by Filipino planters. The early period of this venture was gloomy. The capital investment was large and supervision was not effective. But now the venture bears a different and more favorable aspect. It is the basis of much profit able business of the bank, including exchange from a large bulk of sugar annually sold in New York. In 1922 on October 31 the six centrals owed in principal to the bank 1*38,791,901. By October 31, 1926, this had mounted to F46,723,226. On June 30 this year it had begj> reduced to 1*14,141,963 on four centrals, two of th^dgKal six debtor centrals having pulled themselves outflfiMa^reciside of the ledger some years ago, but remaining^ffroa customers of the bank still. In principal then, the centrals have repaid the bank 1*32,581,263. There will be additional payments before the close of the sugar year October 31. One central that paid its debt some years ago and now pays yearly dividends of 20% to its stock holders, owed the bank in 1925 about 1*6,000,000; it has since practically doubled its capacity and now has an enviable cash position. In interest the centrals of this group have paid the bank 1*16,500,000. This is about the price for which, ten years ago, there was a serious proposal to sell them under the hammer. PHILIPPINE NATIONAL BANK Consolidated Statement of Condition December 31, 1932 RESOURCES LIABILITIES Cash on Hand..................................•'............................ P Due from Insular Treasurer—Circulation Reserve....... Due from Banks— U. S. and Foreign Banks......... Local Banks............................... Checks and Other Cash Items... Total Cash and Exchange. Bonds— P. I. Government, U. S. Gov’t, and other Prime Readily Marketable Bonds................................... Commercial Loans— Bankers’ Acceptances, Export and Import Bills and other similar self-liquidating bills................. Total primary and secondary reserves............ Loans and Discounts...................... .............................. Real Estate, Furniture and Fixtures— Real Estate Owned....................... P 339,969.03 Furniture and Fixtures................. 115,370.01 Miscellaneous Assets— Assets Acquired in Settlement of Loans........................................... P 2,169,833.48 Premium on Bonds....................... 361,873.76* Other Assets................................... 217,345.96 Undistributed Expenses—Agencies............................... Sub-Total.......................................................... P 5,919,119.36 226,625.83 P12,747,746.20 10,706,925.07 1’51,082,579.79 40,045,701.59 455,339.04 2,749,053.20 ______1,644.73 1’94,334,318.35 CONTINGENT ACCOUNTS P 1,412,094.89 1,817,340.04 682,087.25 1,244,539.85 Capital............................................ Surplus............................................ Reserve for Self-Insurance........... Reserve for Contingencies— Assets Acquired......................... Other Assets............................... Unearned Discount........................ Uncollected Interest, on Loans. . . Uncollected Profit.......................... Deposits— Government Deposits................ Individual Deposits................... Trust Deposits........................... Sub-Total............................. Due to Banks— U. S. and Foreign Banks.... Local Banks............................ Sub-Total............................. Total Deposits.................... Bank Notes in Circulation (Net). Real Estate Mortgage Bonds. .. . Miscellaneous Liabilities............... Reserve for Taxes......................... Reserve for Gratuities.................. Inter-Branch Accounts (Net). . .. Sub-Total......................... P10,000,000.00 6,137,074.05 246,653.40 1’55,739,530.58 56,207,066.22 9,806,721.00 1,200,000.00 655,354.90 663,339.98 3,808.38 1,141,514.57 P94,334,318.35 Exchange Contracts......................... Letters of Credit—Unused............. Bills on Hand—Collection............. Customers’ Items for Safekeeping. _ ______ Total................................................................. P99,490,380.38 •These bonds are carried at cost, but depreciation in the current market value is covered by reserves. (Signed) Geo. W. Porter, Auditor. (Representative of the Insular Auditor). Exchange Contracts......................... Letters of Credit—Unused............. Bills Received for Collection:........ Customers’ Items for Safekeeping. Tot al.................................. (Signed) Rafael Corpus, President. OFFICERS OF THE BANK Judge Rafael Corpus, President. Miguel Cuaderno, Vice-President. D. Person, Assistant to the President. J. Felix, Cashier. J. R. H. Mason, Manager, Sugar Centrals Agency. S. A. Warner, Chief Accountant. Roman Mabanta, Manager, Special Assets Department. Santos Martinez, Secretary. George W. Porter, Auditor. BOARD MEMBERS Vicente Carmona, Chairman. Joseph E. Mills, Vice-Chairman. Judge Rafael Corpus. C. M. Cotterman. K. B. Day. Salvador Lagdameo. C. M. Hoskins. Benito Razon.

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