The morning times., 1896-07-27
COSTA RIGA WANTS GOLD
Silver Standard Has Worked Ruin
in the Republic.
Debased Currency, Inflated Values
and Enormous Rate OF Ex-
change Prevail.

| New York, July 26.-The little repub-
| lie OF Costa Rica has been on silver basis
| for about twelve years, in which time
| the rate OF exchange has risen until the
| trade of the country has been wellnigh
| pIralyZed. Practically all tie gold has
! left the country, and there has been a gen.
| eralsubstitutionofp of papernoney y for the silver
| for which the country lilo wed thegold togo.
The Costa Ricans. alive at last 10 the
fallacy of the silver standard, have taken
the first steps to put their country on a
gold basis. The leader in this NOV ement is
Rafael Iglesias, now serving his third
year as president OF the repubhc- On July
3 President Iglesias issued a decree, OF
which the folio wing is Il translation:
'.TEc Constitutional Congress of the re-
public of Costa Rlca considering it TO tie
for the economical interests OF the country
TO prevent as far as possible any increase
in the silver coin of the country on account
of its fluctuating value, which renders II
difficult by legal enactment to fix a rate at
which the silver coins of other nations shall
he received in the republic, and also diff
cult for the government to establish new
monetary system on a more solid basis,
decrees as follows:
''Articie1. Pending the adoption Of new
monetary system no rational silver coin
shall be minted.
Article 2. No foreign silver coin Of
whatever nature or alloy shall be a legal
tender
ARTICLE 8. All foreign silver coins in
circulation in the republic must bepresented
to the general administration of revenues
within thirty days of the date of this de-
cree for exchange into national money at
the legal rate under which they now cir
culate After the thirty days the circulation
OF such coins wilInot be lawful.
article f. After the date of this decree
no foreign silver money will be received in
payment OF duties, nor will it be paid out
by the government.
Article g. During the thirty days fixed
by article 8, the introduction OF foreign
silver coins into the country is prohibited.
Should any arrive at any port il shall be
resliippeti or remain on deposit at the Gus
toni house, at the option of the importer.
Article6. Foreign silver coins exchanged
under the provision OF article 8, shall be
exported and sold in foreign countries on
account of the public Treasury.
Article z. This decree abrogates ar
ticies 4S6 and 4s9 OF the fiscal code and
all other laws conflicting with 1t.
ARTICLE 8. This decree shall take effect
from the date of its ISSUE
Cecilio A. Dclgado, the Costa Rioan con-
sui, said yesterday:
president IgIesias las always been an
advocate of the gold standard, and has been
working for its sre-estabiishment ever since
he assumed the office Of president This
is the first real step in that direction, but
what the next step will be do not know.
..The condition of finances in Costa Rica
is similar to that of other Central American
republics and worse than that OF Mexico.
Since the adoption of the silver standard
all the gold money has left the country.
Fractional currency is in silver, but aside
from the foreign silver, all dollars are
paper, issued by the national bank. Ex-
change has risen to runous rate, and
the merchant there never knows just what
he will have to Fay ON account OF the
fluctuating values of silvei.
Nearly the whole of the foreign bust
ness Of the country is done on credit.
A merchant buys $4,000 worth OF goods
i'm New York and at the time has not the
faintest idea what he will have to pay
for them when the bills become due.
vi dCCOunb Oh ttliS uHCtTtdiubyv VIC
finances are always in. a turmoil. At
present an American dollar is worth $2.e0
there; that is, Costa Rica merchant is
compelled to pay $12, SEQ of his money
for SIS, 900 worth of American goods. 1t
is this initiation OF values that is running
the country.
Moreover, the country is overrun with
foreign silver, and the difference Of values
between that and our own currency causes
endless confusion and distress. Naturally,
then, the first step is 10 retire from circu-
Iation the foreign coin in the country, and
that is what | S aimed a t In this decree.
Costa Rica today is facing the same |
problems that this country must face il |
it goes Oh silver basis. II has the re-.
suits of a silver standard, debased cur |
rency, an abnormal initiation of values. and |
a runous rate Of exchange. President |
Iglesias will move slowly and carefully |
in the matter, but as he is an able man |
and is supported by the ablest men in |
the nation, have no doubt that he will |
succeed in putting the country once more |
ON a sound financial footing"