The San Francisco call., 1896-07-24
COSTA RIGA TAKES
A GOLD STANDARD.
Cogent Reasons Given by
Her Statesmen for
the Change.
NO FOREIGN SILVER.
The Little Republic Thinks the
Value of Silver Too
Fluctuating.
AN OFFICIAL DECREE ISSUED.
Valuable Material Forwarded by the
Correspondent of Local I'm
porting House.
AN OFFICIAL DECREE ISSUED.

Costa Rlca has declared for q gold
standard. This is one of the most slgnifi-
can't events of the times, as that country
has been run on q silver basis, the same as
the rest of the Central American re-
pubIics, ever since a standard was estab-
hshed.
After struggling along through the sill
yer excitement of the last few years, Costa
Ricans gradually arrived at the conclusion
that something was wrong-that q screw
was loose In the governmental machinery.
Like Jacob, the statesmen of the little
republic wrestled with the problem until
they reached definite result. and that re-
suit is embodied in the change from sill
yer to gold basis. Silver, they said, was
too much like merchandise-its value huc-
tuated. They decided that the prosperity
of the country lay in choosing standard
with an Interchangeable value In their
opinion this would stop the banks from
importing silver and redeeming their
notes with 1t.
Yesterday the firm of Castle Bros, g. Co.,
large importers and exporters of tea,
coffee and Spices, who deal principally
with the Central and South American re-
publlcs, received copy of La Gaceta, the
official organ of the Government of Costa
Rica, bearing date of July 4, 1896. Accom-
panying the journal was the following ex-
planatory letter:
We send you under separate cover the Oficial
Gazette with decree passed by Congress pro-
hibit1ng the coming OF or the introduction of
silver in any formal existing foreign silver
TO be called in and paid for at its present
value, such imported silver not being q legal
tender after thirty days from the publishing OF
the decree.
The next step of the Government,w we believe,
wip be to issue its own paper payable in gold.
1t is the idea OF the Government to put the
country on gold basis.
The decree, as published in La Gaceta,
is herewith published in full;
DECREE NO. AZ.
THE CONSTITUTIONAL CONGRESS OF THE REPUBLIC
OF COSTA RIGA.
Considering that it is convenient to the
economical interests of the country to avoid as
much as possible the increase of silver money,
which by its demerit and constant fuctua-
tions has become circulating medium of un-
certain value and would, by its introduction
In the republic, and should it be maintained
as legal tender, be an obstacle to the adoption
of another metal of better value and to the
establishment OF new monetary ystem on q
more solid basis, at the initiative of the execu-
tive power, 1t is
DEcREED.
Article Until a new monetary system is
established in the republic the coinage al
national silver is prohibited.
Article 1I-A1 foreign silver coins of every
value are declared out of legal circulation.
ATucle 111-A1l the foreign silver coins at
present in circulation must be presented
within the thirty days following this decree to
the general revenue administration, to be ex-
changed for the National currency at the legal
value at which they circulate. After this term
those that may not have been presented will
be out OF legal circulation and their disposition
be covered by. the stipulations of the preceding
article.
Article IV-From this date on all the revenue
offices will abstain from accepting any foreign
silver money In payment of taxes of all kinds
and for any other motives.
Article V-During the thirty days designated
l.. In article III the importation of foreign silver
ported during said period will be reshipped or
retained IN deposit at the respective custom
house at the importers option.
Article VI-The foreign silver money that.
according to article III, may be preser ted to
be exchanged for national currency must be
exported and sold in foreign markets for ac-
count OF the national treasury.
Article Vu-The present law reforms in the
necessary points the articles 4S6 and 489 of
the fiscal laws and derogates all laws and is
positions opposed to this one.
Article VIII-This decree will come in force
from the date OF its official publication.
TransitOry Article-The executive power is
hereby authorized, Notwithstanding the dis
positions OF this law, TO allow the Bank of
Costa Rica, under the conditions and for the
amount and time that the executive power
should consider necessary and convenient to
the interests OF the nation, the retention of
the foreign silver money that said bank hold s
at present as portion of its metallic reserve.
To the executive power, given in the Hall of
Sessions OF the Congress, National Palace, San
Jose, the Sd day Of the month of July OF 1896.
PEDRO LEON PAEz,
VICTOR ORoZco,
JUAN Z. LIzANo.