Banking and Finance
Media
Part of The American Chamber of Commerce Journal
- Title
- Banking and Finance
- Creator
- Simmons, W. M.
- Language
- English
- Source
- The American Chamber of Commerce Journal Volume XXVIII (No. 8) August 1952
- Year
- 1952
- Rights
-
- Fulltext
- July 15 —The Presi< authorizing a P417.151.580 national budget for the 1952-53 fiscal year; this is P30.000.000, more than the appropriation for 1951-52. The President, with the concurrence of the Council of State, ap proves a peso financing program of aid to sound industrial, agricultural, mining and other enterprises presented by Chairman Jose Yulo of the Philippine Council for United States Aid which has been endorsed by the Mutual Security Agency. The fund initially will amount to P10,000,000 to be drawn from the Counterpart Fund Special Account, transferred to a separate account in the Central Bank, and is to be administered by the Bank on behalf of PHILCUSA and the MSA in accordance with the terms of a master agreement. July 16 — The President, leaving Manila at 10:22 a.m. aboard the plane Magellan’s Cross with an entourage of 43 persons including his daughter, Mrs. Victoria Quirino-Gonzalez and her husband, reaches Jakarta at 4:50 p.m. escorted by Indonesian planes during the last lap of the journey. The party is met at the airfield by President Sukarno and Vice-President Hatta and their wives and many other officials. July 17 — President Quirino addresses the Indonesian Parliament, his address being very well received. Malacanan announces that the President, * before leaving for In- . donesia, referred to the Secretary of Agriculture and Natural Resources for study the plans prepared by Mr. Per Klem, a Norwegian specialist, for the establishment of a large pulp and paper industry in the Philip pines which envisage mills in the Cagayan Valley, Ilocos Sur, Pangasinan, Davao, Agusan, and Manila capable of producing paper for local needs and for exports estimated at around P163,000,000 a year; a capital expenditure of $155,000,000 would be required. Pre sently, imports of paper approximate 70,000 tons a year at a value of around P50.000.000. Mr. Klem was sent here at the request of the Government to assist the Cebu Portland Cement Company in its paper project, but also made studies for the larger project. July 18 — The Department of Foreign Affairs releases a state ment to the effect that, according to a report from the Philippine Lega tion in London, the temporary suspension of the Philippine flour quota of 196,000 metric tons under the International Wheat Agreement “will be lifted momentarily”. The International Wheat Council recently suspended the quota “pending receipt of clarification from the Philip pine Government of the import procedures being followed locally to control the purchase of IWA flour.” July 19 — The Department of Foreign Affairs issues a statement declaring in part: “If, as speculation seems to indicate, the Japanese will gradually endeavor to come across with larger reparations, then the plan of ‘wait-and-see’ may be desir able. However, let us not lose sight of the possibility that with such a 'wait-andsee' attitude, we may only see one thing,—and that is that as time goes by, we shall get, not more reparations but less than we would have obtained if negotia tions had been terminated in time. This is no doubt the basis for President Quirino’s insistence on an early decision for the ratification of the Treaty, which is, funda mentally, to bring about, without any further delay, normal diplomatic, commercial, and cultural relations and to better coordinate the efforts of the democracies in trying to present a solid front against the danger of communism in Asia ” July 21—Secretary of Foreign Affairs Miguel Elizalde receives John Paul Clarkin, head of the Pepsi-Cola Bottling Company' of the Philippines, Inc., who was recently appointed Honorary Consul of the Republic of Ireland. July 23 — Announced at Malacanan that President Quirino has authorized Ambassador Carlos P. Romulo to sign the $20,000,000 power loan contract with the Export-Import Bank without the clause which the Philippines originally wanted reserving the right to purchase machinery and supplies for the Ambuklao projects from countries other than the United States if they can not be supplied by American manufacturers. Bank officials stated that under their charter they could not accept such a provision, but that if a specific case of this nature arose, the facts could be submitted and would be considered on their merit. The loan is for a period of 20 years, payable in instal ments after July, 1955, and bears 4% interest. July 24 — The Department of Foreign Affairs announces that the UNICEF (United Nations International Children’s Emergency Fund) has expressed its gratitude to the Philippines for a contribution-in-kind in 1951-52 of 184 long tons of coconut oil and 1,380 lbs. of margarine, valued at around P100.000. July 25 — The Cabinet approves the release of funds to combat a serious locust infestation in Cotabato, Samar, and Sorsogon provinces and the islands of Burias and Ticao. It is estimated some P150.000 will be needed. July 26 — President Quirino, at the one and only press conference he held, states in Jakarta that communists in the Philippines are being prosecuted not because they are communists but because they seek to overthrow the Government. He states he is impressed by the “tre mendous spirit of nationalism” in Indonesia and expresses the belief that under this spirit, “Indonesia will be solidified in due time”. He states that the neighboring countries of the East should cooperate in the development of their rich potentialities as untapped resources are a temptation to scheming and more powerful countries. He reiterates that his visit was not political or military, but was an economic and cultural mission, explaining that he brought along Secretary of Finance Aurelio Montinola and Central Bank Governor Miguel Cuademo to look into the possibility of arriving at a common understanding on a basis of economic cooperation. , July„27 —The President arrives in Manila on the PAL plane Bataan” about 5 p.m. from his 10-day visit to Indonesia and is warmly welcomed by a large crowd. He states in a short speech at the airport that he returns with a message of goodwill, friendship, and cooperation.. .from the people of Indonesia.” “We are only 20,000,000. They are 75,000,000. Our land is only about 114 000 square miles and theirs is 735,000 square miles, and with their vast resources, al most inexhaustible compared to ours, we are just like Corregidor in Ithe middle of the great Manila Bay. . . Our duty is to cultivate their friendship and see if it will fHendship 1of°ourPtwoapeoples. * S.t?” CC “ ‘°Verei8n "ati°n’ Cementin* the July 29 — The President, at a Cabinet meeting, orders the Philip pine Airforce to provide all the planes needed to fight the swarms of locusts in the infested areas, which now include Masbate, also. Due to lack of time the Cabinet fails to consider the reports of Secretary of Finance Montinola and former Economic Coordination Administra tor Pablo Lorenzo on the recommendation of the Import Control Com mission to ban the importation of some 23 commodities, totally or in part, including slide-fasteners and zippers, rice hullers, plastic combs and tooth-brushes, cotton weaving yams, pianos and pedal organs, athletic goods like baseballs, baseball gloves, volley-ball nets, etc., incandescent lamps of 115 and 220 v, fluorescent lamps of 14 to 40 watts, grey cloth, upper leather, pure tomato juice, etc. July 31 — The President receives Justice William O. Douglas of the United States Supreme Court who is on an unofficial 2-months tour of Southeast Asia. The Justice was accompanied by Ambassador Raymond A. Spruance. The Justice is Chairman of the International Mass Education Movement and the President invites him to breakfast the following morning to meet a number of Filipino officials and educa tors concerned with mass education. Banking and Finance By W. M. Simmons Manager, National City Bank of New York COMPARATIVE statement of condition of the Central Bank: As of As of As of As of Dec. 31 Apr. 30 May 30 June 30 1949 1952 1952 1952 (In thousand of pesos) P460.689 P492.703 P487.370 P491.328 ASSETS International Reserve............. Contribution to International Monetary Fund.................... Account to Secure Coinage.. Loans and Advances............... Domestic Securities.................. Trust Account—Securities Stabilization Fund............... Other Assets............................... P793.629 P939.662 P930.044 P934.519 30,000 113,306 77,047 92,197 30,000 107,570 29,364 234,730 30,000 107,570 24,365 234,716 30,000 107,570 21,365 234,680 — 12,233 12,233 12,233 20,390 33,062 33,790 37,343 LIABILITIES Currency—Notes....................... Coins........................ Demand Deposits—Pesos.... Securities Stabilization Fund. Due to International Mone tary Fund Due to International Bank for Reconstruction and Deve lopment .................................... Other Liabilities........................ Capital.......................................... Undivided Profits..................... Surplus.......................................... P555.576 74,384 117,682 2,000 P556.U5 92,501 251,180 12,233 P545.4U 91,963 249,026 12,233 P539.281 91,787 252,855 12,233 22,498 496 496 496 2,389 2,383 2,383 2,383 2,636 5,467 8,734 11,593 10,000 10,000 2,155 10,000 10,000 6,464 2,666 3,129 — 7,132 7,132 7,132 P793.629 P939.662 P930.044 P934.519 At the end of June, 1952, the Central Bank’s interna tional reserve was approximately ?4,000,000 higher than the previous month-end balance. This upward tendency may not continue in view of the weakness in the commodity markets especially in copra and hemp, notwithstanding anticipated lower imports this year than in 1951. Loans and advances decreased by P3,000,000 and stood at P21,365,000 as of June 30. Money in circulation dropped from P637,374,000 in May to P631,068,000 in June, but there was an increase in demand deposits from ?249,026,000 to P252,855,000 during the same period. 302 Statistics obtained from the Central Bank show that during the first 6 months of this year foreign exchange transactions of the Philippines resulted in a net receipt of $1,830,000. The deficit of $16,760,000 incurred last January, was wiped out by the narrow monthly margin of surplus noticeable from February to June. Responsible for the favorable tone was the increase registered by receipts from invisible exports over invisible imports which more than offset the unfavorable balance resulting from larger disbursements for visible imports than receipts from visible exports. Receipts aggregated $258,800,000 (from visible ex ports—$165,730,000 and invisible exports—$93,070,000) against disbursements of $256,970,000 (consisting of payments for visible imports of $217,180,000 and invisible imports of $39,790,000). Compared with the correspond ing period in 1951 total receipts showed a decrease of 8.3% while disbursements rose by 1/2%. Local money rates appear to be slightly easier, prob ably due to diminished volume of import licenses released and some liquidation of inventories, which earlier this year were on the high side in anticipation of a continuing inflationary trend which did not develop. Collections are reported to be retired satisfactorily. tt was announced by the Collector of Internal Revenue A that total tax receipts for the 1951-52 fiscal year (ex cluding excise tax on foreign exchange) had already reached a new high of P408,742,000 with June figures not yet tallied and April and May not complete. This figure is about 20% higher than total collections from July 1, 1950, to May 31, 1951, because of the intensified and systematic collection campaign and the imposition of new and increased taxes. It is also reported that excise tax on foreign exchange to talled P179,;261,000 during the period March 29, 1951 (when it was first imposed), and the end of May, 1952. This total represents some P 140,000,000 for the 1951-52 fiscal year and P39,000,000 from March 29 to June 30, 1951. The price of gold in the local free market has ruled remarkably steady during the period under review with an approximate high, low, and close per fine ounce of P105.75, P104.25, and P104.50. 1951-52 Range High Low MINING SHARES High Low Close Change Total Sales Manila Stock Market By A. C. Hall Hall, Picomell, Ortigas S’ Co. June 28 to July 25 EARLY in the month, gold-mining shares showed some further weakness as the difficulties confronting the mining industry were emphasized during the public hearings then being conducted by the Wage Board in regard to the industry’s attempt to obtain a postponement of the effective date of application of the Minimum Wage Law scale. However, selling was never forceful, and during the past week has dried up completely. The lack of offer ings and the growing impression that the industry will receive some compensating tax-relief when the full mini mum wage scale goes into effect have combined to lift some prices from their recent lows, and to give the market a better appearance at the close. Base-metal issues have ruled steady to firm, with the exception of some easiness of a technical nature in Acoje and Philippine Iron Mines as a result of their recent new stock issues. w Following the effective date for subscription to rights, Philippine Iron Mines has staged a sharp rec overy. The commercial and industrial section of the market has been easier in quiet trading. Fixed interest securities ruled quietly firm with offerings negligible. Around this period of the year, local stock prices usually register their annual lows, principally due to the fact that money is at its tightest around this season. In the writer’s view, this year is unlikely to prove any excep tion to the others, as prospects indicate easier money condi tions during the last half of the year. 0 0 7 315 0.155 0925 0.028 80 ----2.85 0 2 0 0.0775 2.00 80 ___ 0036 0.002 5 0 30 10 04 0 29 0 0 0 0 0 0.16 1275 0.06 3 26 0 32 0 0 0 305 035 13 1951-52 High 143 0.17 0.185 0.01 0.05 00 105 00 15 00 15 00 171 00 110 00 00 100 00 50 00 30 00 27 50 25 00 12 00 10 00 0 36 0 27 5 50 3 20 0 0 18 12 105 0 0 0 085 50 100 00 23 7 00 50 20 5 50 00 50 25 00 0 0925 0 012 43 00 26 50 100 00 00 108 0 102 00 16 00 13 50 7 00 00 Company M. S. E. Mining Share Acoje Mining Co....... Antamok Goldfields. . Atok Big Wedge MinBaguio Gold Mining Co............................... Balatoc Mining Co... Batong Buhay Gold Benguet Consolidated. Coco Grove, Inc. ... Consolidated Mines, Inc.............................. Hixbar Gold Mining Co............................... Itogon Mining Co.... I.X.L. Mining Co.. .. Lepanto Consolidated. Masbate Consolidated. Mindanao Mother Lode.......................... P a r a c a 1 e Gumaus Philippines Iron Mines, Inc................ San Mauricio Mining Co............................... Surigao Consolidated.. Suyoc Consolidated .. United Paracale Min ing Co....................... 105.10 98.44 .19 .043 .17 .04 102 Off 3.61 Off .01 2.85 3 15 Off .25 22,110 .095 2.00 .003 1.15 .035 .037 .26 .085 .041 .82 .165 2.70 .20 .28 .012 .07 .0775 2.00 .0028 1 00 .035 .035 .26 .08 .04 .78 .031 .1375 2.15 .19 .265 .012 .06 COMMERCIAL SHARES Bank of the Philippine Bogo-Medelling MilCentral Azucarera de la Cariota................ Central Azucarera de Pilar.......................... Central Azucarera de Tarlac....................... Filipinas Cia. de SeIndustrial Textiles Mfg. Co. P.I........... Manila Broadcasting Co.............................. Manila Wine MerMarsman 8s Co., com . Mayon Metal, class “B”........................... Mayon Metal, class Meralco, 6-1/2%........ Metropolitan Insur ance Co.................... Pasudeco...................... Philippine Air Lines, Philippine Guaranty Philippine Oil Dev elopment Co., Inc... San Miguel Brewery, San Miguel Brewery, 7% pref................... San Miguel Brewery, 8% pref................... Universal Insurance 8s Indemnity........... Williams Equipment, Cia. Celulosa de Filipinas................ Cia. Gral. de Tabacos de Filipinas, 6% bond.......................................... Credit Corp, of the Philippines.... Manila Jockey Club, Inc................. Philippine Iron Mines, Inc (rights). . 2 Off Up Off Off 037 26 08 04 82 039 145 Up Off Off Up 125a 2 High Low 120.00 120.00 112 00 00 40 00 25 00 11 00 3.50 6.00 25.00 39.00 25.00 10.00 3.50 5.00 25.00 .044 .04 38.50 38.50 100.00 98.00 105.00 103.00 6.00 6.00 P10.00 97.00 6.00 2.35 .30 .'so .0002 .10 .003 .002 .02 .01 .009 55 Off .25 20 Off .005 265 — 012 — 185,000 100 ,100,000 12,100 10,000 1,663,000 55,500 .0625 Off .0125 Close Change Total Sales 120 00 20 00a 110 110 00 00 25 00 10 00 30a 3 50 20a 11a 102 150 20 00b 50b 6 25 00 04 38 50 98 00a 104 50 12 6 Off 5.00 Off 5.00 Off 2.00 Up Off Up 00b 00 10.00 .30 .01 2.00 Up 1.50 Off 1.00 Close 97.00 6.00 2.35 .13-1/3 160 189 13 2,386 80 6,400 500 665 70,000 18,160 489 260 496 Total Sales 10.00 24,750 97.00 6.00 2.35 .13-1/3 P20.000.00 64 2,800 203,251 Credit By C. M. Muilenburg Manager, Credit 8 * Collection Department International Harvester Company of Philippines SEVERAL local credit men have indicated that collec) tions are continually getting more difficult. Some have suggested that collections are harder now than 303