Banking and finance

Title

Banking and finance

Creator

Grant, C. V.

Language

English

Source

The American Chamber of Commerce Journal Volume XXV (Issue No.10) October 1949

Year

1949

Rights

In Copyright - Educational Use Permitted

Fulltext

back pay was granted under the same conditions, in the amount of P3,520,920.64. Payment of the two months’ back-pay will probably begin on October 15 The President on the recommendation of the Under-Sec retary of Foreign Affairs and with the concurrence of the Cabinet authorizes the Surplus Property Commission to ex tend credit to the Republic of Indonesia for the purchase of certain surplus goods from the Commission. Recently the In donesian application was withdrawn because of certain re quirements of the Commission, and these will now be relaxed, the President being desirous of strengthening Philippine-Indonesian relations. The Office of Public Information, Malacanan, announces that the organization has been completed for a daily 30-minute broadcast at 10 a.m. of news of the day, at dictation-speed, over the government radio station, DZFM. Under supervi sion of the Radio Control Board, battery receiving sets have been distributed to remote communities and certain officials have been designated to transcribe and post the transcriptions on bulletin boards in public places. The Department of Edu cation is also encouraging schools in such localities to acquire receiving sets so that they may also make use of these broad casts. Sept. 28 — The Department of Foreign Affairs announces that the Philippines will open its first consular mission in In donesia about the middle of October with Vicente Pastrana as consul and Marciano Joven as vice-consul with headquarters in Batavia, the Netherlands Government having accorded these men provisional recognition. The Department of Foreign Affairs announces that the Korean Government has made an offer to sell apples to the Philippines either for cash or on a barter basis, Korea hoping for timber, coconut oil, and rope in exchange. The apples range in price from $4 to $7 a box of 150, weighing 42 pounds. month, the reserves having decreased only $1,600,000. Substantial amounts of dollars received from the U.S. Treasury to cover war-damage payments off-set most of the excess dollar disbursements made to cover the continuing unfavorable trade balance. The Central Bank has released the following sta tistics which had been compilled from the records of the Bureau of the Treasury and the Accounting Department of the Central Bank: MONEY SUPPLY* Banking and Finance By C. V. Grant Sub-Monager, National City Bank of New York COMPARATIVE figures of assets and liabilities of the Central Bank follow: (in thousands of Pesos) ASSETS International Reserve . #.. As of Jan. Si P714.969 As of July 30 P573.031 • As of Aug. 31 P569.809 Contribution to Interna tional Monetary Fund .. 30,000 30,000 30,000 Account to Secure Coinage 113,106 113,306 113,306 Loans and Advances ........ _ — 10,000 Domestic Securities ............ _ 10,354 18,287 Due from Treasurer of Philippines ....................... — — 12,569 Other Assets ....................... 19,320 23,627 24,090 P877.395 P750.318 P778.061 LIABILITIES Currency: Notes ............... P621,521 P505.179 P502.949 Coins ................ 73,035 74,112 73,935 Demand Deposits: Pesos .. 169,351 116,269 145,048 Dollars _ 11,637 ♦ 11,700 Securities Stabilization Fund ................................ 2,000 2,000 2,000 Due to Int’l Monetary Fund — 22,499 22,499 Due to Int’l Bank for Reconstruction and Development..................... — 2,392 2,392 Other Liabilities................. 1,488 2,262 3,092 Capital ................................ 10,000 10,000 10,000 Undivided Profits ............. — 3,968 4,446 P877.395 P750.318 P778,061 * Note: The Demand Deposit liabilities in U.S. Dollars are deposits of the Treasurer of the Philippines which are temporarily being kept in foreign currency. These amounts are included on the asset side as part of the International Reserve. The figure for the International Reserve of the nation as released in the August 31st report of the Central Bank showed little change from the previous End of Month 1948 Jnnunry Februnry May'* July September October November December 1949 January February April May Notes in Cir culation Demand Deposits Manager's Deposits Other Cashier's of Nat'l Savings Time Checks, etc. Total Treasurer Deposits Deposits 551 541 539 542 618 626 521 633 540 566 568 576 442 454 485 472 445 593 640 597 611 621 607 6 999 45 6 1,001 30 7 1,031 25 6 1,020 63 6 969 84 7 1,126 57 6 1,167 11 6 1,136 62 6 1,112 74 5 1,171 43 6 1,186 45 11 1,194 22 219 18 221 20 220 19 218 19 218 20 221 20 225 20 226 21 230 21 230 21 228 21 227 22 672 671 670 588 552 536 July (tentative) 527 617 589 556 568 540 645 522 7 1,196 16 6 1,166 16 7 1,133 17 1,163 17 6 1,107 16 6 1,087 20 6 1,054 19 236 23 236 24 236 27 236 28 237 28 239 30 240 80 * Money supply consists of the peso demand deposit) government deposits and overdraft lines. currency issued minus cash in banks; plus liabilities of banks, excluding) the national inter-bank deposits, but including unused The announcement of the depreciation of ster ling received here early in the morning of September 19 had little immediate effect on the local business and financial communities. However, as a result of the 30% depreciation in sterling currencies, the pro ducts of the soft-currency areas should be in a con siderably better competitive position vis-a-vis “dollar area” merchandise. On the other hand, it will be come more costly for sterling area countries to pur chase with their depreciated currencies products of the dollar areas. The new rates for the various currencies re valued as a result of the .devaluation of the pound sterling follow: Australia — pound ................................ $2.24 Belgium — franc .................................. .02 Burma — rupee ............................................. 21 Canada — dollar .................................. $ .91 Ceylon — rupee .............................................. 21 Denmark — kroner ............................... .1450 Egypt — pound ..................................... 2.87 Finland — mark ............................................ 00431 France — franc ............................................. 00285 Greece — drachma ......................................... 000066 Hongkong — dollar ............................... .1750 Iceland — kronur .......................................... 106 India — rupee .................................................21 Indonesia — guilder .......................................2635 Iraq — dinar ......................................... 2.80 Ireland — pound ................................... 2.80 Italy — lira .....................................................0016 Luxembourg — franc ....................................02 Malaya — Straits-dollar ..............................3250 Netherlands — guilder ..................................2635 New Zealand — pound ......................... 2.80 Norway — kroner ..........................................14 Portugal — escudo .........................................034965 South Africa — pound ......................... 2.80 Sweden — kronor .......................................... 193376 United Kingdom — pound ................... 2.80 For prime business the banks are quoting Tele graphic Transfer 201.25 selling and 200.625 buying for spot exchange. 438

pages

438

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