The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-26


among all the curious problems presented to
us by trade, none seems more incongruous with
the advanced civilization of the two countries
than the vast range Of exchange between the
United States and Cuba.
During the past year the course Of bills on
New York has ranged, in Havana, from ten per
cent discount to four per cent premium, being a
difference between the maximum and minimum
points Of fourteen per cent The same great
range il noticeable in exchange on London, the
minimum point having been four and the maxi
mum eighteen per cent premium for bills on
that point. In view Of the facilities Of inter
course and for the shipment Of specie be-
tween New York and Havana, such an extra
ordinary variation in the course Of exchange
forming as it does heavy tax upon commerce,
is without example. From the first Of January
to the middle Of August of last year, which
comprehends the time when almost the entire
bulk Of the shipments from Cuba to this coun-
try are made, the rate Of exchange on New
York averaged, according to table now before
US, a discount of five per cent. During that time
the amount Of bills drawn against ship
ments Of produce to this country alone
could not have been less than thirty millions Of
dollars. upon which the loss by discount on ex-
change alone amounts TO a million and half Of
dollars. The average discount on the London
bills was very nearly the same, and estimating
the value Of the shipments drawn against on
that point at twenty millions Of dollars, we have
All additional loss of one million to the trade.
making in all the sum Of two and half mil
lions of dollars loss in exchange.
We should not, however estimate this ms an
entire lossto the merchants, for Il our balances
with Cuba we're paid as they are with other
countries-that is by remittances Of coin--the
cost of freight, insurance. interest and commits
sion thereon would amount to one and a half OF
perhaps two per cent; yet still the loss is equal
10 three per cent on the amount of trade; and
as the aggregate Is so large, 1t is an enormous
burtben on commerce. and must arise from some
extraneous cause that should be removed.
Such cause does exist and is reproach TO
government that claims TO be cassed among
the civilized and enlightened Powers Of the
earth. While the old Spanish doubloon il the
standard Of currency in Cuba at the value of
seventeen dollars, thus forming currency Of ~
Of silver TO Of gold, foreign coins, all Of which
are struck at much more favorable ratio be-
tween gold and silver, are not allowed to pass
current. During the past year the merchants Of
Havana endeavored TO correct in part the evils
Of their circulation by agreeing to receive
among themselves United States gold coins at
par; but the government Immediately took
measures tofprevcnt this, and as large amount
of gold had already been imported, il suddenly
fell to ten per cent discount, while the common
people refused TO receive the half eagle at a
greater value than 81 rs. The argument of the
government In defence Of this course is. that for
government TO receive any other coinage than
IFS own. or to permit the circulation of such
among the people, is dcrogatory to its dignity
and honor.
The busy season Of export in Cuba is now close
at hand, and although owing to a variety of
causes foreign exchange is high there. to the
great disadvantage of its own merchants. as soon
as the crop begins to come forward in force.
and create supply Of bills the same huctua-
tons must occur that have been witnessed in
other years to the great detriment Of the plant
or. Havana is now experiencing the penalty
of government interference in financial matters,
and contracted circulation promises to have a
very disastrous effect upon The prices Of its
staples Everything that affects these affects
not only the interest of the planter and the
merchant, but acts directly upon the revenues
of the government. We therefore call upon
the Spanish authorities in Cuba TO throw open
the channels of circulation in Cuba to English,