The weekly Louisianian., 1874-03-28
FINANCIAL CONDITION OF
CUB.

The premium on gold at Havana
is LIS to 100, and short sight
currency exchange on the United
States is 81 to SO. Yet the Span
iards and their friends in this coun-
try have been telling us all along
that the rebellion is on its legs and
that at worst it is only a small affair.
Every one that knows that the
financial difficulties in Cuba are the
result Of the insurrection. If, then,
gold continues to 60 up higher and
higher what other inference can be
drawn than that the rebellion grows
more formidable. and the bost Of the
war is enormous? Spaniards, as a
matter of course, put the best face
on the damaging fact and refer to
the condition of our finances and
currency at the most critical period
of the civil war in this country.
They say, for example, that the
premium on gold here rose at one
time to near 260 per cent, and that
it has never reached with them over
120. Gold did not remain long at
that race with us, though there is
no comparison in the relative maggni-
tude of the struggle. Then the ex-
ports Of valuable products from
Cuba, though considerably reduced
have continued and have exceeded
the imports. Our commerce was
always balanced between exports
and imports before the war, and
when cotton, the largest product
of export, was cut of, the drain and
insuf;ciecy of specie were seriously
felt. While gold has remained at a
premium it did not continue long
very high. There always was conf
dence in tho currency, if not in an
early resumption Of specie payments
because the currency was based
upon the credit of the government
The greenbacks were government
promises to pay and the national
bank notes were secured by govern
ment bonds. It is not SO with cur
rency in Cuba. Neither the span
ish nor colonial government is
bound to pay or redeem the notes
OF the Bank Of Havana. The gov
eminent authorizes the issue, it is
true, but the bank alone, which is
a private corporation, is responsible
The paid-up capital Of the Bank O
Hayana is not more, VIC believe tina:
five millions OF dollars. It's circu.
lating notes have been run up from
ten millions or so to little short, i
any, of a hundred millions. The
government, as was said, is moi
bound for these notes, nor ore they
issued in it's name, though it may
be indebted to the bank. Can W.
wonder, thon, that the premium OF
gold continues to advance? There
has been a sudden rise, lately, ant
it is said that it was caused by thu
fact of the extraordinary issues O.
the bank leaking ont. If even thu
instruction could be suppressed
we do not see how the Bank o:
Havana could take up the enor
nous amount of it's notes or pay it,
indebtness. The spanish govern
ment is not in a situation to helI
the bank, nor is it likely that gov
eminent would assume the obliga
tons of the bank under any circum'
stances: But as there is little o.
no prospect of the instruction
being suppressed, gold mus
continue to rise. AS a consequence
bankruptcy appears to be inevitable
Colrespondingly with the augmen'
ted. strength and increased activit!
of the Cuban patriots the mean'
and resources of the Spaniards arr
declining. If, therefore, the Cuban'
can prolong the war-of which
there seems to be little doubt-th'
financial difficulties o their enemies
will serve them as much as powder
and arms.
M. Bernhard Westenberg Minis
ter OF the Netherlands at Washing
ton, with his bride, arrived a few