Banking and finance

Media

Part of The American Chamber of Commerce Journal

Title: Banking and finance
Creator: Hutchison, G. R.
Language: English
Source: The American Chamber of Commerce Journal Volume XXVII (Issue No.11) November 1951
Year: 1951
Rights
Fulltext: emciency. Oct. 24—The President approves the extension of the registration period of voters in a number of places where for one reason or another the registration was not held or not completed. Gen. J. Lawton Collins, United States Army Chief-of-Staff, arrives in the Philippines from Indo-China on an inspection tour, en route to Japan and Korea. He has visited Europe, including Greece, also Tur key. Oct. 25—The President entertains General Collins at a breakfast attended also by ranking local American and Philippine officials. The President holds a breakfast conference with General Collins attended also by ranking American and Philippine diplomatic and military officials. Oct. 26—In a conference with Secretary Romulo, the President decided on the membership of the Philippine delegation to the Sixth Session of the General Assembly of the United Nations, to open in Paris, November 6, as follows: Chairman, Secretary Romulo; members, Ambassador Elizalde, Senator Vicente Madrigal, Representative Diosdado Macapagal, and Senator Eulogio Rodriguez. The Cabinet, on recommendation of Secretary Romulo, approves the immediate creation of the UNESCO National Committee in the Philippines, to be composed of representatives of 8 agencies of the Government, 12 non-govemment organizations, and 2 members at large. The President receives the members of the Import Control Ad ministrations who consulted him on the difficulties they are meeting in financing its activities. The President signs Executive Order No. 479 fixing new ceiling prices for imported and local foodstuffs, including flour, canned fish, eggs, milk, and canned vegetables, and also for certain building ma terials and school supplies. He also signs Executive Order No. 478 providing for the collection by the Collector of Internal Revenue of the tax on the annual sugar production levied by Republic Act No. 632; the order requires that no sugar quedans or warehouse receipts be released to the sugar-cane planters and sugar centrals unless the tax has been paid. Oct. 27—The President issues Proclamation No. 283 designating the period November 16 to January 31, 1952, for the third annual fund campaign of the Community -Chest of Great Manila, and au thorizing government personnel to accept fund-raising responsibilities in the drive. Secretary Romulo, accompanied by Mrs. Romulo, leave Manila for the United States, en route to Paris. The other members of the Philippine delegation to the United Nations General Assembly meeting will leave later. Oct. 28—Announced at Malacanan that the Board of Trustees of the Government Service Insurance System approved the reinsurance treaty between the System and the Pacific Union Insurance Company at a meeting held on the 23rd. Oct. 29—President Quirino visits the government low-rent housing project at Bago Bantay, Quezon City, where 2,090 units, housing about 14,000 people, are already completed. The houses are rented to lowincome government employees who, after 5 years, will be allowed to start buying them on the instalment plan if they so desire. For the time being, the rent ranges from P31 to P41 a month. Other houses are to be constructed to rent at P24 a month. The President accepts an invitation from a group of civic organiza tions to speak at a rally to be held at the Rizal Memorial Stadium on November 5, beginning at 4:30 p.m., the President to “appraise our people on the burning questions of the day, among them: (a) What are the plans of our Government to insure clean elections? (b) How can terrorism during elections be avoided?” (c) What steps will be taken to protect the voters?” Oct. 30—The President informs the Cabinet in connection with the signing of the credentials of Paris Charge d’Affaires Octavio Maloles as alternate delegate to 6th session of the United Nations As sembly, that he and Secretary Romulo have an understanding that the Secretary will return to Manila after delivering his address at the opening of the session as there are many important matters pending in the Foreign Affairs Department. The Cabinet, on recommendation of Public Works Secretary Sotero Baluyot, approves the reduction of the air mail rate to foreign countries from Pl.20 to P.90 per 15 grams and the domestic rate from P.50 to P.30 per 15 grams. The President appoints Dr. Agerico B. M. Sison ad interim Di rector of the Philippine General Hospital, effective November 1, on recommendation of the Board of Regents of the University of the Philip pines. The President receives Mrs. Dorothy Cowen who arrived in the Philippines yesterday; she informs him that she and her husband, the American Ambassador, are scheduled to leave for the United States on November 14. The Philippine Embassy in Washington informs the Foreign Affairs Department that beginning November 1 no entry of Philippine cordage will be allowed without prior approval of the Customs in Washington in view of the approaching filling of the Philippine quota of 6,000,000 pounds; as of October 20, 5,775,953 pounds had been imported from the Philippines. Oct. 31—The President disapproves the action of the Com mission on Elections cancelling the registration of voters in a Cavite province precinct and ordering a new registration; the President states that while anomalies were committed there, it is not necessary to cancel the entire registration and that alleged violators are already being dealt with according to law. The President receives the officers and crew members of the United Nations hospital ship, Jutlandia, who were accompanied to Malacanan by Consul Gustav Halberg of the Danish Consulate. The President signs a proclamation reserving an area of some 5,750 hectares of land at Saug, Davao, for the use of the Boy Scouts of the Philippines. Banking and Finance By G. R. Hutchison Manager, Port Area Branch National City Bank of New York COMPARATIVE statement of condition of the Cen tral Bank: Trust Account—Secu As of As of As of As of Dec. 31 July 31 Aug. 31 Sept. 28 ASSETS 1949 1951 1951 1951 (In thousands of Pesos) International Reserve........... P 460,689 P 534,213 P 542,313 P 522,467 Contribution to International Monetary Fund. 30,000 30,000 30,000 30,000 Account to Secure Coinage.. . . 113,306 107,570 107,570 107,570 Loans and Advances......... 77,047 29,608 39,608 25,168 Domestic Securities. 92,197 231,760 231,206 231,193 rities Stabilization Fund............ — 6,848 6,848 6,848 Other Assets........... 20,390 71,461 77,055 82,813 LIABIL1TIES Pl.011.460 Pl.034,600 Currency — Notes. Coins. Demand Deposits— Pesos........................ Securities Stabiliza tion Fund.............. Due to International Monetary Fund. . Due to International Bank for Recon struction and De velopment.............. Other Liabilities. . .. Capital........................ Undivided Profits... Surplus........................ P 555,576 74,384 P 611,406 93,616 117,682 210,170 2,000 6,848 22,498 496 2,389 2,636 10,000 6,464 64490 10,000 8,662 3,689 P 588,994 P 579,305 93,515 93,460 254,564 231,225 6,848 6,848 496 496 2,383 64,322 67,747 10,000 10,000 9,788 10,905 3,689 3,689 P 793,629 Pl,011,460 Pl,034,600 Pl,006,058 The increase of about P8,000,000 in the international reserve in August as compared with July, 1951, was more than offset by a decrease of P19,846,000 at the end of September, 1951, as compared to the previous month. No official figures of foreign exchange holdings of banks other than the Central Bank have been published. Loans and advances in September decreased by P14,440,000 as compared to August. The downward trend in circulation continues with P672,765,000 outstanding at the end of the month as compared to P682,509,000 at the end of August. 376 The cash position of banks remains tight and this condition is also apparent in the business community although collections are satisfactory and inventories show a healthy increase and turnover. Interest rates are unchanged. Early in October, it was announced that Pl 1,500,000 had been made available from public funds for the redemp tion of guerrilla currency issued by underground units during the occupation and emergency notes of the Philippine National Bank released during the war. T'he Import Control Commission has rescinded its A resolution providing for the issuance of import licenses only on a C & F basis. Reports indicate that this require ment had had an adverse effect on business relations between the Philippines and the United States. Licenses now may be issued on a F. O. B., C. I. F. or C 8b F basis. 1951 Range High Low P143.00 P105.00 171 00 152 105 00 00 100 45 00 00 30 320 27 00 320 00 27 00 00 0 36 35 0 315 0 0 12 12 105 27 3 80 0 25 0 0 085 085 50 100 00 COMMERCIAL SHARES Manila Stock Market By A. C. Hall Hall, Picornell, Ortigas & Co. September 22 to October 19 THE International Monetary Fund action in removing restrictions on premium sales of processed gold by producing countries, caused an advance in gold mining shares in American and Canadian markets. This improvement extended to Philippine mining issues traded in San Francisco, and was also followed, in this market, by a sharp rise which carried the mining share average up as much as 10 points at one time in active trading. The sharpness of the advance, however, has impaired the internal position of the market, and prices have relin quished a part of their gains during the past few days. It is likely, in the period immediately ahead, that the market faces a time of consolidation and digestion. In this process, prices may have to recede somewhat further before reaching a base from which the major up-trend can be resumed. The price of fine gold in the local free market has ex perienced a fair degree of fluctuation during the period under review. From Pl20 per fine ounce a month ago, the price dipped to Pl 10 before attracting substantial support and is now quoted approximately at Pl 15. In the commercial and industrial section demand for investment-grade of equities continues good, but fixed interest securities have weakened as some individual holders have liquidated in order to switch to equities. 75 0 20 7 50 20 1951 Rangt High Lo 115." „= MINING SHARES 75 88 11 0 32 0 16 0 0 0775 0 39 0 028 21 0 14 0 08 2 80 2 00 0 0036 002 5 0 0 0 10 026 011 275 0 16 0 165 0 075 0 0 0 0 0 0 0 017 0 Oil 0 105 0 06 315 0 17 0 0 0 355 035 13 0 0 0 22 02 05 M.S.E. Mining Share Acoje Mining Com pany .......................... Antamok Goldfields. . Atok Big Wedge MinBaguio Gold Mining Co.............................. Balatoc Mining Com pany .......................... Batong Buhay Gold Benguet Consolidated. Coco Grove, Inc......... Consolidated Mines, Inc............................. Hixbar Gold Mining Co.............................. Itogon Mining Com pany .......................... I.X.L. Mining Co.. .. Lepanto Consolidated* Masbate Consolidated Mindanao Mother Misamis Chromite Paracale Gumaus San Mauricio Mining Co............................... Surigao Consolidated*. Suyoc Consolidated... United Paracale MinCo............................... *—Ex-Dividend H gh Low Close Change Total Sales 115 75 105.02 112.69 Up 7.92 20,392,465 32 0775 29 0525 305a Up 075 Up .02 .0225 285 23 24 Up .02 914,000 2 50 0036 10 021 27 165 055 80 05 375 014 105 315 355 026 .13 1225 2 135 Up 50 2 0032 65 0875 0155 245 145 041 71 038 315 014 09S 21 34 026 .115 50 .025 575,000 2,180 0035 Up .0001 65 Off .10 095 Up .005 1,732,500 8,720 955,000 0205 Up .0045 6,855,000 26 16a 055 77 049 335 014 500,000 50 50 , 0525 0 00 00 012 1 46 1 30 . 37 00 26 50 100 00 94 00 105 SO 102 00 16 00 15 00 7 00 6 50 High Low Close Bank of the Philippine Islands....................... P 142.00 P 140.00 P 140.00 Bogo-Medellin MilCentral Azucarera de la Cariota . Central Azucar Pilar.......................... Central Azucarera de Tarlac....................... 45.00 China Banking Corp. 320.00 Filipinas Cia. de Manila Broadcasting Co.............................. Manila Wine Mer chants, Inc............... Marsman & Co. Inc., Mayon Metal.............. Mayon Metal 7 % pref............................ Meralco 6-1/2%........ Metropolitan Insur ance Co.................... Pampanga Bus Com pany .......................... Pasudeco...................... Philippine Air Lines... Philippine Oil DevelopPhilippine Racing Club, Inc................. San Miguel BrewerySan Miguel Brewery 7% pref.*................. San Miguel Brewery 8% pref*................... Universal Insurance & Indemnity................ Williams Equipment del 165.00 27.00 .27 .30 30 00a 165.00 165 00b 45.00 45 320.00 320 101.00 .60 7.50 .035 37.00 98.50 103.00 15.00 Co. 27.00 .27 .30 27 00 27 20b 30 13a 10b .00 ISO .60 7 50 00b 20 7 023 42 36 00 96 00 103 Change Total Sales Off 3.00 Up 5.00 Up 5.00 Off 3.00 T 210 165 400 S3 167 >,000 3,000 60 00b SO 025 42 37 00 96 00 00 103 00 15 15 00 8 00a 100 Off .01 Off .04 Up 1.00 Off 2.25 Off .50 210,000 29,230 770 625 OVER-THE-COUNTER Company Gold River Mining Co............................... Philippine Electrical Manufacturing Co. Philippine Iron Mines, Inc........................ Polo Coconut Plantation Co.................... Realty Investments, com......................... Tayson Gold, Class "A”............................ Victorias Milling Co., Inc........................ Close 0.01 100.00 95.00 900.00 8.00 0.001 175.00 Total Sales 50,000 232 688 5 1,000 43,850 150 Up .01 Up .015 Up .08 Up .012 Up .035 100,000 105 28 35 026 .13 Up .015 Up .06 Up .005 Up . 004 Up .0275 53,00 156,000 20,000 330,000 Electric Power Production (Manila Electric Company System) By J. F. Cotton Treasurer, Manila Electric Company 1941 Average—16,316,000 KWH January.................................................. February................................................ March..................................................... April....................................................... May........................................................ June........................................................ July........................................................ August................................................... September............................................. October.................................................. November............................................. December.............................................. KILOWATT HOURS 1951 1950 40,713,000 37,661,000 37,066,000 33,828,000 40,117,000 38,107,000 39,197,000 35,378,000 40,405,000 37,611,000 40,712,000 37,529,000 42,041,000 38,774,000 42,817,000 39,872,000 41,852,000* 38,791,000 44,042,000** 40,657,000 — 39,268,000 — 41,099,000 Total................................................................................. 458,576,000 ♦Revised •’Partially estimated z-'vutput in October jumped over the 44,000,000 KWH '-'mark, a new record. There was an increase of 3,385,000 KWH’s or 8.3% over October, 1950. A new peak-load of 111,000 KW was registered on October 9 and a new daily record of 1,524,300 KWH’s was set on October 25. The Rockwell Station gross output of 28,080,000 KWH’s was also a new high, representing approximately 60% of the total system production. It is interesting to note that the average hourly load ing of the system for the month was just slightly above one-half of the highest peak-load. This indicates that if 377
pages: 376-377