The new Cuban banking system which former Governor Harding of the Federal Reserve Board now reports to be solidly established, will undoubtedly act as a quieting oil on the troublous state of Cuba's finances. In its balmier days the National Bank of Cuba was a fast and reckless lender, but its prodigality, coupled with the damage wrought by the come-and-go governments, finally resulted in its failure. Now, however, under a system modelled after the Federal Reserve and put into operation by Americans, the rejuvenated Cuban bank should be so firmly set on a financial rock-bed that none of the Island's frequent political lapses should be able to budge it therefrom.

Though the "Queen of the Indies" is apparently rapidly convalescing from its monetary malady, a Queen of the other Indies and a protegee of the United States, the Philippine Islands, has long been ailing from the same disease. In 1916 a Philippine national bank was organized, and during the easy-come easy-go war period it prospered, but with the arrival of hard times, its gullibility and generosity in lending drew it quickly to its inevitable end,--bankruptcy. For the last two or three years it has been of no use at all in capitalizing the Philippines' many resources, but has managed only to languish along in a state of coma and parasitic inactivity.

Though the population and natural resources are far greater than those of Canada, the amount of invested capital and thus material prosperity is infinitely less. This is due partly to the selfish "Islands for the Islanders" policy of restricting foreign investment, but mostly due to the inability of its banks to float needed loans. United States is providing the Filipinos with enough education to better their condition, but since the banks cannot provide the money, no progress is being made. If the Islands has an Aladdin's lamp to summon a Rugger, Rothschild, or Morgan, their problem would be straightway solved. But they have not, and the only alternative left is that of regaining financial health through the establishment of a sound banking system.