Banking and finance

Media

Part of The American Chamber of Commerce Journal

Title: Banking and finance
Creator: Benson, G. A.
Language: English
Source: The American Chamber of Commerce Journal Volume XXVII (Issue No. 5) May 1951
Year: 1951
Rights
Fulltext: 6) The Secretary of Labor shall have the power to cause an investigation to determine if minimum wages are being paid in all enterprises and to appoint a wage board to fix a minimum wage for such an enterprise. The Secretary shall also make rules and regulations governing the appointment of wage boards, their public hear ings and mode of procedure. 7) Wage board members shall not be entitled to compensation except to per diems from P5 to P7 daily for each day of official duty, and shall be reim bursed for all traveling expenses incurred in the performance of duties. 8) Part-time employeesand industrial homeworkers shall be entitled to mini mum wages, but not less than 75% of those provided for industrial and agricultural 9) Decisions of the Secretary of Labor on the minimum wage determination may be appealed from when supported by substantial evidence to prove that the ruling is unjust and prejudicial to the interest concerned. 10) Learners or apprentices are allowed not lower than 75% of the applicable minimum for not more than one year and if these are students or graduates of au thorized nautical schools, in vessels of Philippine registry, they may be permitted without compensation. 11) The Secretary of Labor may sue an employer to recover the wages owing to an employe in any competent court, with legal interest. 12) The Court of Industrial Relations shall have jurisdiction in cases of actual strikes as they affect the minimum wages. The President vetoes House Bill No. 1565 which would establish legislative control over the finances of government-owned or controlled corporations. The President signs the Convention for the exchange of postal money-orders between the United States and the Philippines; the Con vention has still to be signed by the President of the United States. The President submits to the Commission on Appointments the nomination of Executive Secretary Teodoro Evangelista as Secretary of Education and of Francisco Ortega as Mayor of Baguio. The Cabinet refers to the Import Control Board several protests of textile exporters in New York against the recent decision of the Board to cancel all licenses approved by the previous Board whose dollar allocations have not yet been used. April 10—The Cabinet adopts a set of regulations to govern the qualifications of new and necessary industries for tax exemption which will be embodied in an executive order to be issued by the President shortly. The Cabinet approves the recommendation of Juan M. Arellano, Director of the National Planning Commission, to convert the site of the former Sternberg General Hospital into a permanent- park. It also decides that the rehabilitation of the Mehan Gardens will be under taken by the Nation'al Government. April 11—Malacanan releases the text of a telegram sent by Pres ident Quirino to General Douglas MacArthur inviting him to visit the Philippines before his return to the United States, reminding him that he is an honorary citizen of the country. April 14—Malacanan announces that President Harry S. Truman has assured President Quirino in a letter that— “The United States Government for its part is now prepared to proceed rapidly and actively to carry out its commitments in the programs upon which we have agreed... I am convinced that our cooperative effort will further strengthen the Philippines as a democratic state, a stable economy, and a shining example to the The letter was delivered by Ambassador Myron M. Cowen at the start of a conference on the 12th on the bilateral agreement concerning the projected P500,000,000 ECA aid. The P50.000.000 “counterpart” Bill, necessary to the agreement, is still before the Philippine Congress, though the ECA has already organized its Manila office. The President issues Executive Order No. 433 “establishing the rules and regulations for the qualification of industries for tax exemption under Republic Act No. 35 and revoking Executive Order Nos.'341.” It states in part: “What may be considered 'new' industry. A ‘new’ industry is one not existing prior to December 8, 1941, nor covered by any exemption already granted in favor of the same kind of industry prior to the date of filing of the application for exemption. Where other applications for exemption are filed within a period of 6 months from the date of the approval of the first application on the same induatry and it is shown that they have investigated the industry independently of each other, the exemption may be granted to all of them, if otherwise entitled to the exemption under this Executive Order. “What may be considered ‘necessary’ industry. A ‘necessary* industry is one complying with the following requirements; "(1) Not producing articles classified in the Internal Revenue Code as luxu ries or semi-luxuries. (Secs. 184 and 185.) “(2) Where the imported raw materials represent a value not exceeding 50% of the gross value in money of the manufactured products. “(3) Where either the capital investment of the industry, excluding land and building, exceeds P50.000, or the industry will be employing more than 25 factory personnel. “(4) Where the industry will operate on a commercial scale in conformity with up-to-date practices and will make its products available to the general public in quantities and at prices which will justify its operation with a reasonable degree of permanency.” The President issues Administrative Order No. 153 creating a committee to formulate plans to exploit the natural resources of the Candaba Swamps. April 15—The President gives a luncheon in honor of U. S. Secre tary of the Army Frank Pace, Jr.,‘here on a brief visit. April 16—The Council of State approves the development program recommended by both the Philippine Council for United States Aid and the American ECA group, which program is to be financed from the $15,000,000 ECA interim aid fund. Following the approval, Jose Yulo, PCUSA chairman, telegraphed requisitions to the United States covering practically the whole amount,—materials and equipment for use in agriculture, fisheries, and forestry, $3,497,000; manufacturing and mining, $844,000; transportation, communications, power, and public works, $5,305,000; public health and education, $840,000; public administration, $588,000; and general commodities, $4,000,000. The Council also decides to press for reparations from Japan at the coming peace treaty conference; the Council will study "the Pres ident’s proposal to demand payment of at least P2,000,000,000 which represents the total amount of private claims that have not been satis fied by the War Damage Commission”. “The President said this amount should be paid by the Japanese and not by the United States”. "Previously, the Philippines has insisted on $8,000,000,000 reparations from Japan. April 20—The Import Control Board and the PRISCO Board hold a meeting presided over by Secretary of Commerce Cornelio Balmaceda, and among the policies agreed upon are the extension of every facility and assistance to food and dollar-saving enterprises; the hand ling by PRISCO of permits for all supplies, machinery, equipment, and spare parts for such industries; the handling by PRISCO of cotton and rayon textiles to be used by local dollar-saving factories; the proces sing of all applications for the second quarter to be done in relation to the amount of dollars actually available; constant consultation between the two Boards to ensure the coordination of the work of the two organizations. April 21—The President confers with Cornelius Van S. Roosevelt, son of the former Governor-General of the Philippines, who is vice-pre sident of the Security Banknote Company which has contracted for the printing of the paper bills in small denominations, 5ff, 10fS, and 20j!, soon to be introduced here in the total amount of P60,000,000. April 24—Secretary of Foreign Affairs Carlos P. Romulo, who returned to the Philippines yesterday, reports to the President and later to the Cabinet that the prestige of the Philippine Government has risen in the United States upon the recent reorganization of the Cabinet, the Government as a whole, and the Armed Forces, the gradual restoration of law and order, the increase in production and in exports, the improvement in the dollar position, and the government decision to prosecute tax-evaders. He also reports on the international situation. April 27—The President signs the Counterpart Bill which becomes Republic Act No. 604, appropriating P50,000,000 to constitute a counter part fund for any assistance to the Philippine Government which may be received through the ECA from the United States Govern ment. Later the President signs the economic and technical coopera tion agreement, Ambassador Myron M. Cowen signing for the United States. The President states that there has now been created “the at mosphere, means, and determination” to make the present year the “start-off for the total economic mobilization program of the Govern ment”. Banking and Finance By G. A. Benson Sub-Manager, Port Area Branch National City Bank of New York COMPARATIVE statement of condition of the Central Bank: ASSETS As of As of As of As of Dec. 31 Jan. 31 Feb. 28 March 31 1949 1951 1951 1951 (In thousands of Pesos) International Reserve. . . P460.689 Contribution to Interna tional Monetary Fund. 30,000 Account to Secure Coinage............................ 113,306 Loans and Advances........ 77,047 Domestic Securities......... 92,197 Trust Account—Securi ties Stabilization Fund — Other Assets............................ 20,390 P793.629 LIABILITIES Currency—Notes............... P555.576 Coins.............. 74,384 Demand Deposits— Pesos................................. 117,682 Securities Stabilization Fund................................. 2,000 Due to International Monetary Fund........... 22,498 Due to International Bank for Reconstruc tion and Develop ment................................. 2,389 P548.933 P554.565 P579.U9 30,000 30,000 30,000 113,306 56,791 160,820 113,306 49,418 164,181 107,570 55,863 163,088 6,848 47,003 6,848 53,619 6,848 56,562 P963.702 P971.937 P999.050 P644.563 90,530 P655.634 91,713 P664.360 92,680 183,976 175,494 194,213 6,848 6,848 6,848 496 496 497 2,388 2,385 2,383 153 P793.629 P963.702 P971.937 P999.050 Other Liabilities............. 2,636 13,793 17,461 21,275 Capital............................... 10,000 10,000 10,000 10,000 Undivided Profits.......... 6,464 9,493 10,290 3,105 Surplus............................... — 1,616 1,616 3,689 1950-51 Range High Low P126.83 61.71 MINING SHARES 0.295 0.09 CONTINGENT ACCOUNT Forward Exchange Sold. P 6,460 The International Reserve increased during March by P24,500,000 and at the month end was Fl 18,430,000 greater than the reserve as of December 31, 1949. Cur rency and coins in circulation again increased, reflecting a continued inflationary trend. The coin shortage remained acute. In March, it was rumored that the Central Bank would mint coins in the United States to relieve the situa tion. However, the Monetary Board of the Central Bank announced about the middle of April that it had contracted with an American bank note company to print F60,000,000 worth of paper currency in 5,10, and 20-centavo denomina tions. The first shipment is expected to arrive around the end of April. While this should alleviate the existing coin shortage, it will create new problems for merchants and banks which have to handle large quantities of small notes. The notes will measure 4-1/4 by 2-1/8 inches and each denomination will have a distinctive tint. 0.035 0.68 0.1275 3.50 0.0051 5.30 0.085 0.016 0.25 0.135 0.08 0.90 0.05 0.455 0.20 0.09 0.27 0.345 0.038 0.10 0.012 0.26 .04 1.78 .0027 2.50 0.012 0.0078 0.08 0.042 0.025 0.17 0.016 0.205 0.01 0.06 0.14 0.12 0.01 0.045 M. S. E. Mining Share Acoje Mining Com pany .......................... Antamok Goldfields.. . Atok Big Wedge Min ing Co.*................... Baguio Gold Mining Balatoc Mining Co.. . Batong Buhay Gold Benguet Consolidated Coco Grove, Inc......... Consolidated Mines, Inc.............................. Hixbar Gold Mining Co.............................. Itogon Mining ComI.X.L. Mining Com pany .......................... Lepanto Consolidated Masbate Consolidated Mindanao Mother Lode*. p Inc"1 ' San Mauricio Mining Co............................... Surigao Consolidated Co.*........................... Suyoc Consolidated... United Paracale MinHigh Low Close Change Total Sales 110.39 101.19 101.44 I 25 032 21 032 34 28 GumauB Off 7.67 8,108,306 245 Off .04 032 — 285 Off .055 1275 15 10 05 2 1275 Up 15 Off .0275 .35 5 0035 IS 08 016 23 135 015 09 26 .075 5 0135 20 67 028 37S 015 08 25 .07 016 Up 205 Off 13 Up 025b 375 015 09 26 25 03 372,000 242,350 335,000 510,000 750 .0005 .30 .01 .025 .02 Off .02 Off .003 Up .015 Off Up Up Off .08b Up .002 .01 .01 .01 .01 700,000 39,038 275,000 120,000 273,000 500,000 340,000 542,000 40,000 67,000 56,000 415,125 50,000 274,000 The Central Bank has granted authority for a new banking organization, the Security Bank and Trust Com pany, to operate in Manila. It is reported that the bank will begin to function in about two months time with an authorized capital of F5,000,000 and a paid-up capital of about F2,500,000. Effective April 17, the Central Bank issued Circular No. 26 on the subject “Administration of Foreign Ex change Control”. The circular states that, in future, the Central Bank will not receive directly applications for exchange licenses to effect payments or remittances abroad or to carry exchange out of the Philippines. All such appli cations for foreign exchange must be submitted to banks which, are Authorized Agents. Banks may continue to approve applications and issue licenses within the author ity previously granted. All other applications will be ac cepted by the Authorized Agents and forwarded to the Central Bank for approval together with such other docu mentation or supporting evidence which the Central Bank requires. Approved or rejected applications will be returned to the banks, which will notify the clients. All applications for licenses filed with the Exchange Control Department of the Central Bank prior to April 17 will continue to be released direct to the applicants by the Central Bank. Money continues easy. During the month an issue of F15,000,000 in one-year Treasury Bills was fully sub scribed on a discount basis at 98. 1950-51 Range. High Low P118.00 78.00 17.00 10.00 90.00 220.00 135.00 40.00 235.00 27.00 0.35 2.00 .18 .25 .085 .085 100.00 135.00 27.50 25.00 0.1075 .013 1.40 1.20 38.00 25.50 *Ex-dividend COMMERCIAL SHARES Manila Stock Market By A. C. Hall Hall, Picornell, Ortigas & Company Bank of the Philippine Islands...................... Binalbagan - Isabela Bogo8MedeUin Milling Cent. Azucarera de Bais........................... Cent. Azucarera de la Cent. Azucarera del Pilar.......................... Cent. Azucarera de Tarlac....................... China Banking Corp. Filipinas Cia de Seguros......................... Insular Life Assurance Co............................... Manila Broadcasting Co.............................. Manila Wine Mer chants, Inc............... Marsman & Co. Inc. Marsman & Co. Inc. pfd.............................. Mayon Metal*............ Mayon Metal 7% pfd.............................. Meralco 6-1/2%......... Metropolitan Insur ance Co.................... Peoples Bank & Trust Co.............................. Phil. Guaranty Co. Philippine Oil Dev, Philippine Racing Club Inc.*.............. San Miguel Brewery— common.................... San Miguel Brewery 7% pfd..................... San Miguel Brewery 8% pfd..................... Universal Insurance & Indemnity................ Williams Equipment Co. common............ High Low Close Change Total Sales 00 14 00b 00b 86.00 86.00 86 00 175.00 170.00 174 38.00 27.00 3.80 . 8 .25 00 90 00b 38.00 38 — 225 27.00 3.80 .18 .25 .026 33.00 100.00 103.00 00 00b 27 00 5 50b 32b 3 80 18 25 08b 103 08b 00 143 Up 2.00 118 Up 4.00 310 Up 4.00 90 Off 2.00 445 — 50 Up 2.00 00b 65 00b 26.50b .013 013 42 31.00 33 00 100 00 103.00 103 00 16 900 2,000 2,000 T 300 Off .016 250,000 Up .05 1,000 Up 1.00 38,735 Up 6.00 650 — 445 00b 6 00b March 26 to April 20 THE market has developed a generally easier trend since our last review. The principal losers were Acoje and Atok. The former was sharply lower for a day or two following news of the attack by lawless elements on its mining property, but the stock later recovered part of the decline. Atok sold off following publication of its annual report showing some deterioration in its ore reserve position. There was little change among the market leaders which, with one exception, were slightly lower principally as result of these issues selling ex-dividend during the *—Ex-dividend T—Bond Bales reported in units of P100 OVER THE COUNTER Capsay Mining Company.............................. Demonstration Gold Mines........................... Glo-co Company.............................................. Manila Jockey Club....................................... Nielson Co. Inc................................................ Philippine Iron Mines—Common................ Victorias Milling Company Inc.................... Tabacalera Bonds 6%..................................... P0 2 70 Close P0.04 70 Total Sales 30,000 20,000 1,233,500 109 11,000 500 172 2,000 *Reuters News Agency brings in 337 New York Stock Exchange quotations every day and will add to its list if requested. Subscription rates are very reasonable. Phone 2-94-30. (Advt) 154
pages: 153-154