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 XXVIII (Issue No.1) January 1952
Year: 1952
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Fulltext: The Business View A monthly review of facts, trends, forecasts, by Manila businessmen The Government From Official Sources DECEMBER 1—President Elpidio Quirino receives United States Vice-President Alben Barkley, who arrived in Manila with his wife for a one-day informal visit. Later in the day, the President entertains Vice-President and Mrs. Barkley at luncheon, and in a short speech Mr. Barkley congratulates the President on the conduct of the last elections and on the progress being made in economic, agricultural and industrial development. The Department of Foreign Affairs announces that the President has approved the creation of a Division of Economic Affairs within the Department which is to be headed by Caesar Z. Lanuza. Dec. A—Mt. Hibok-Hibok, on Camiguin Island, just north of Misamis Oriental, Mindanao, erupts without warning at 7:15 in the morning and later telegraphic reports tell of the devastation of some nine or ten square kilometers by lava and ashes and the death of several hundred people. The President directs that immediate aid be extended by various government departments, the army, and the Red Cross. The Cabinet decides that the Government will reiterate the request for the repeal of the United States excise tax on coconut oil. It is also decided to make P600.000, to be taken from the surplus funds of the Philippine Charity Sweepstakes Office, available for the rehabilitation of the Philippine General Hospital, the action being taken on an appeal of Director A. B. M. Sison. Dec. 5—Malacahan releases messages from Brig.-Gen. Ernest Moore of the U. S. Army (Clark Field) and from Rear Admiral Richard Cruzen, U. S. Navy (at Sangley Point, Cavite), offering help in pro viding and sending supplies to Camiguin, with return messages of thanks from the President. Dec. 6—Explosions of the Hibok-Hibok crater continue and it is reported that 5 barrios have been completely destroyed and 16 others rendered uninhabitable. The President meets with members of the Radio Control Board who call on him in connection with the government program of distributing receiving sets to outlying barrios in the provinces, and they report that dissidents in various places are stealing the sets. The President inquires concerning the supervision of radio broadcasts, warning against the infiltration of the broadcasting stations by sub versives. The President issues Administrative Order No. 170 creating the Priority Assistance Committee, to be composed of a representative each from the Central Bank, the Department of Foreign Affairs, and the Philippine Council for United States Aid, to coordinate the pre paration of all requests for priority assistance on orders for commpdities in short supply in the United States. Dec. 7—The President orders immediate release of P10.000 for the local purchase of relief supplies by government relief workers on Camiguin. He issues Executive Order No. 486 ordering the collection and compiling of historical and cultural data by town, city, and pro vincial officials in an effort to replace records lost in the destruction of Manila. Chairman Alfredo Montelibano of the Import Control Board calls on the President in regard to the implementation of the law pro viding that 50% of imports be reserved for Filipino importers. Dec. 8—Messages of sympathy begin to be received at Malacanan from foreign governments in connection with the Camiguin disaster, including messages, during the next few days, from the Spanish, Indian, Italian, Indonesian, Korean, Chinese (Nationalist), Australian. Dec. 10—Malacanan releases the text of a telegram received from President Harry S. Truman, under date of December 9, as follows: “My dear Mr. President: In these days when the liberties of all free men are faced with the most serious challenge in history, the American people have been immeasurably heartened in watching the Filipino people practice the ways of democ racy. The recent elections have been a convincing demonstration that, given the opportunity, all men would choose to run their own affairs in their own way in the light of their experience and traditions. Your determination that the Filipino people should have this opportunity and your support of the Secretary, Magsaysay, in implementing this policy should win the admiration of free men everywhere. This growth of democracy in the Philippines is aaditional indication of the great and honorable traditions of Philippine-American friendship." (Continued on page 30) Banking and Finance By G, R. Hutchison Manager, Port Area Branch National City Bank of New York COMPARATIVE statement of condition of the Bank: P494.090 30,000 107,570 44,171 233,844 As of Dec. 31 1949 As of Sept. 28 1951 As of Oct. 31 1951 ASSETS (In thousands of Pesos) International Reserve. . . P460.689 P522.467 P510.391 Contribution to Interna tional Monetary Fund. 30,000 30,000 30,000 Account to Secure Coin113,306 107,570 107,570 Loans and Advances.. . . 77,047 25,168 47,171 Domestic Securities......... 92,197 231,193 230,846 Trust Account — Secur ities Stabilization Fund ............................... 6,848 6,848 Other Assets...................... 20,390 82,812 91,410 6,848 98,861 LIABILITIES Central As of Nov. 29 1951 P793.629 Pl,006,058 Pl,024,236 Pl,015,384 Currency — Notes............ P555.576 Coins............ 74,384 Demand Deposits—Pesos 117,682 P579.305 93,460 231,225 P580.017 93,310 244,705 P573.249 93,257 238,199 “AS government extends its authority over economic affairs, public decisions on specific questions become enormously im portant to individuals and groups. The persons who make or affect those decisions are exposed to great temptations, whether in the form of money, votes, political preferment, threats, personal obligations or attachments, or any other form of pressure. Inside knowledge of coming decisions may enable officials to enrich themselves by speculation or by selling such information to others. ‘All power tends to corrupt; absolute power corrupts absolutely.’ Those words were written more than half a century ago, but they have taken on new significance with recent tendencies in government.”—From the November Guaranty Survey. 13 Securities Stabilization Fund................................. 2,000 Due to International Monetary Fund........... 22,498 Due to International Bank for Reconstruc tion and Development 2,389 Other Liabilities................ 2,636 Capital ............................... 10,000 Undivided Profits............. 6,464 Surplus................................. — 6,848 496 2,383 67,747 10,000 10,905 3,689 6,848 6,848 496 496 2,383 70,833 10,000 11,955 3,689 2,383 74,217 10,000 13,046 3,689 much effect marketwise owing to continued tightness of money. The price of gold in the free market is about un changed and has fluctuated between P112/115 per fine ounce during the past month. In the commercial and industrial section of the market, apart from some improvement in Luzon sugar central shares, the rest of the list shows little change. Fixed interest securities traded in moderate volume around previous levels. P793.629 1*1,006,058 Pl,024,236Pl.015,384 't’here was a further reduction of P16,301,000 in the J- international reserve during November as compared to the previous month. As shown above, present reserves are only P33,401,000 higher than the figure of P460,689,000 reflected on December 31, 1949, which was less than one month after the beginning of exchange control. A recent press report lists the reserves including foreign exchange holdings of other banks at about $300,000,000 which is about $100,000,000 lower than April of this year and about $40,000,000 higher than the December, 1949, figure. Heavy liquidation of import bills has been a drain on the reserves during the past several months. The movement of the sugar crop should begin to ease this trend shortly, although the damage to the crop by a destructive typhoon in the Visayas will considerably reduce the dollar-return originally anticipated. Despite the scarcity of cash, collections continue satis factory, although merchants are asking for generally longer terms of payment. It is anticipated that a sizeable volume of outstanding import licenses which expired December 31, 1951, and are covered by bank credits will not be ex tended. This should help ease the general credit position. Also, the Monetary Board of the Central Bank has taken steps to reduce the extension of credit by banks by re stricting their letters of credit outstandings to not more than 70% of their net foreign exchange holdings plus cash in vault, excess reserves, and securities other than those being utilized as part of available reserves. The Central Bank has recently released new notes of P5, P50, and P100 denominations. It had previously released new Pl and P2 notes. All of these notes were engraved and printed by Thomas De La Rue & Co. Ltd., London. The Economic Research Development of the Central Bank reports total investments in all enterprises for the first 9 months of 1951 at P56,700,000, as compared to an investment of P63,100,000 for the entire year 1950. Capital supplied by Filipinos amounted to P29,700,000, with Chinese investing P22,800,000 and Americans only Pl,600,000. 1951 High 126.-" 49 0 Low 88.11 325 0 16 MINING SHARES 0 0 0 14 2 80 0 0036 5 0 0 0 28 0 17 0 055 0 0 0 017 0 11 120 0 315 0 365 035 13 0 0 028 21 0 08 2 00 0 002 0 0 0 16 0 075 0 0 0 0 59 024 295 002 0 06 50 00 0 17 0 22 02 05 1951 Range High 143.-'" 00 100 00 171 00 50 00 320 27 00 50 36 5 50 Loo 105.t 00 75 00 152 00 100 30 00 320 27 315 0 12 0 i; 105 50 00 00 27 3 0 25 085 0 085 100 00 Manila Stock Market By A. C. Hall Hall, Picomell, Ortigas & Co. November 17 to December 14 THE mining share average has advanced into new high ground, but this is somewhat misleading as a guide to overall market action. The net improvement in the indicator is the result of substantial advances in base-metal equities more than offsetting an easier trend in gold shares. Market sentiment has been decidedly bullish toward the former, but negative as regards the latter group, and some switching from the golds to base metals has been in evidence during the period. General factors affecting the market show little change during the month. Year-end dividend declarations were generally up to best expectations, but this has not had 23 27 00 50 20 27 0 0625 0 012 1 46 40 100 00 105 50 16 00 7 00 1 26 50 94 00 00 00 SO M. S. E. Mining Share Acoje Mining Com pany .......................... Antamok Goldfields. . At ok Big Wedge Mining Co. *........... Baguio Gold Mining Co.............................. Balatoc Mining ComBatong Butiay Gold Benguet Consolidated Coco Grove, Inc........ Consolidated Mines, Inc.*......................... Hixbar Gold Mining Co.............................. Itogon Mining ComI. X.nL Mining com pany .......................... Lepanto Consolidated* Masbate Consolidated Mindanao Mother Lode.......................... Misamis Chromite Panicale Gumaus Philippine Iron Mines, Inc.............................. San Mauricio Mining Co.............................. Surigao Consolidated * Suyoc Consolidated .. United Paracale Min*—Ex-dividend Change Total Sales Up 5.82 11.848,093 325 085 29 07 Up Off .02 .0175 25 23 348,000 1375 135 135 2 60 2 30 30 Off .30 9,200 0035 70 0725 029 28 165 96 048 33 005 10 120 4 0032 65 065 021 26 155 86 045 31 002 00 100 28 365 027 .125 0032 Off 70 065 .0003 Off .015 027 Up .0065 4,725,000 27 Up .015 474,000 155 Off 0525a 90 ' 045 Up Off 31 Off .005 005 Off Off .009 .01 00 120 24 355 027 COMMERCIAL SHARES High 00 Close 138 00 137 00 138 00 100 00 00 100 164 Bank of the Phil. Islands .................. Central ^Azucarera de Central Azucarera de la Cariota................ 165 Central Azucarera de Pilar.......................... ' Central Azucarera de Tarlac....................... China Banking Corp.* Filipinas Cia. de SeManila Broadcasting Co.............................. Manila Wine Met chants, Inc. *........ Marsman Is Co. Inc., Mayon Metal, Class "B”........................... Mayon Metal 7% pref. Class “A”................ Meralco 6-1/2%........ Metropolitan Insur ance Co.....................’ Pasudeco..................... PhHippme .Guaranty Philippine Oil Dev elopment Co., Inc.. Philippine Racing Club Inc................... San Miguel Brewery, San Miguel Brewery. 7% pref................... San Miguel Brewery, 8% pref................... Universal Insurance & Indemnity *............ Williams Equipment Co., com................... *—Ex dividend OVER-THE-COUNTER 100 00 50 00 27 50 23 30 00 27 50 00 00 164 00 46 00 10 00 00 .50 — 330 27 50 27 50 23 Up 20.00 Up .02 Off Off .001 .015 530,000 501,450 290,000 623,500 273,000 131,000 695 272,000 118,500 30,000 195,000 Change Total Sales 120 94 Off Up Up 33b Up 5 50a 25b 11 100 00 27 50 .00 45 Off Off 0625 03 1 36 1 36 39 50 5.00 2.498 .50 .06 .01 552 87.250 95.00 15.00 95 00 00b 00 Up 1.50 94 27 50 1,000 055 Up 36 39 50 9S 00 50 15 00 8.00a Off .06 1,000 Off Up .50 .50 20,928 100 Company Cia. Gral. de Tabacos de Filipinas 6% bonds ........................................... Eastern Development Co..................... East Mindanao Mining Company .... Jai Alai Corp........................................... Manufactures Textiles Industrials de Filipinas, Inc................................. Philippine-American Drug Co............. TayBan Gold, Class "A’'...................... United Philippine Artists..................... Victorias Milling Co. Inc..................... .006 .0075 6.50 Lo> Close Total Sales P1000.00 .006 .0075 6.50 Pl000 00 .006 .0075 6 50 10 165 175 175 14
pages: 13-14