The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-09-17
CHEAP MONEY PANIC IN CUBA.
THE PEOPLE REFUSE TO RECEIVE
PAPER AT PAR WITH GOLD.

The Government Threatning With
severe Penalties All Who Refuse
10 Accept the Paper on the Same
Basis with GoId-The Spanish
Bank Refuses 10 Issue Drafts ON
-.nndstlII.
Havana, Sept. 16-The money ques-
tion Is the all-absorblng topic of the
hour. Ever since Gen. Weyler issued his
famous decree ordering the Spanish banks
paper money to be accepted at par with
gold It was foreseen that serious compli-
cations would arise because not having
the governments proper guarantee 1t
could not be accepted as circulating me-
dium. The government is doing all in its >
power to sustain the value Of the paper.
threatening with severe penalties all who
refuse to accept it on the same basis with
gold. The Spanish bank, with the assist
ance Of the government, in order to up
hold It's paper, announced Its willingness
TO accept 1t in payment of drafts on Spain,
but when one of the local bankers-as a
test case-sollcitod from the bank a draft
on Spain for s15,OOO the bank refused, on
the ground that it could not furnish bills
to bankers who did not admit its paper in
payment of their exchanges. By repudiat-
ing its own paper the bank has initiated
a crisis In financial circles which has upset
the money market, and, there is every
reason TO believe will end in a commercial
panic. Many efforts are being made to
avert disaster by inducing Gen. Weyler
to allow the quotation on exchange of the
paper currency, so that everybody should
know its exact instrinsic value, but II
seems Gen. Weyler stands firm on his de-
cree, and does not allow the least varia-
ton Of his orders. The result is that ever
since then the stock and gold exchange
has not done any operations and all quo
tations are considered nominal.
On the other hand, all the bankers, in
order to evade the penalties Of Gen. Wey-
lers decree. by refusing the acceptance
of paper In payment of drafts, have decid-
ed to close their exchange departments,
| alleging that they have no funds abroad
to check against--except when they arc
offered gold in payment-then the draft
| is furnished
The governor of the Spanish bank called
| a meeting of all the bankers three days
| ago to see how the financial difficulty
| could be solved, but no definite agreement
| was reached and the situation continues
| the same. As natural consequence OF
| this state of affairs the expectation Of
| gold and silver Is being carried on 10 a
| great extent, all the outgoing steamers
| carrying considerable quantities of the
precious metals to Spain and the United
| States, this being attributed to the great
| distrust among the wealthy classes re-
| garGing future prospects, which certainly
| are not bright.
The announcement that the wholesale
| arrests of prominent citizens made sun
| day last was simply q government plot
to remove those who 1t believes are OBJ
noxious persons, has been fully confirm
| ed, at least in the case of Alfredo Her
nandez Huguet, the American citizen ar
rested. When the police overran his
| house in earch of discriminating papers,
| his daughter saw one of the men intro
| ducing a suspicious document amongst
| his papers, and seizing him by the arm,
| strongly protested against the Infamous
| act ne was committing, but II was of no
| avail, for they carried that document as
| convincing proof OF his guilt She then
| went to see Consul Lee and told him her
| tale and when the consul asked her IL
| she had the courage to lay the facts be-
| fore Gen. Weyler, she unhesitatingly as
| sented. II is understood both went to see
| the general, and that he refused to listen
] 10 0tTt Oh the BFOunu Ludb D6 WIS HOl
| tho Judge that had to decide the case, and
| that she should give her testimony to the
| Judge who is investigating the matter
| The military operations are practically
at a standstill No fighting Is reported
on either side. II Is reported the rebels
| are making q strong concentration Of
! forces all around the country, presumably
| obeying Gomez's orders for the coming
campaign, which, II is said, will be tre-
| mendous. All sorts of wild rumors are
afioat as to his future Intentions Some
| believe he will come with fire and sword,
| laying everything waste in his track, de-
stroying all the sugar estates, farms, VIII
| lagos and towns he meets on his way:
| others, that he will simply come and make
| a big fight in this province. The real
| truth cannot be ascertained, for Gomez
| Is too wise man TO let everybody know
| his plans, but the general presumption Is
that he will reinvade the central provinces
| with a large force very soon and come
| into this section to do general fighting,
| and as II appears he has considerable war
material at his disposal, exciting times
are expected.
Key West, Fla, Sept 16.-Advices to-
night report the Spanish cruiser Infanta
Isabel disabled at the entrance to the port
of Havana. She has asked assistance.
owing to the orders of the Spanish gov
ernment in relation to the issue of paper
money business in Havana is paralyzed.
The civil government requested the stock
exchange to enforce acceptance Of said
money, but 1t refused to make any trans
actions.
COTTON RATES TO BE CUT.