Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1896-10-01
SILVER IN HONDURAS.
An Object Lesson from the Noted
British Colony.

| of silver money, but some four years age
the depreciation Of the currency had
reached such point that credit was
destroyed and trade and industry para
lyzed. There prevailed "a constant worry
and bewildering uncertainty which re-
| suited practically in the conversion of legit'
| innate trade into speculative gambling
as can be appreciated when it Is known
| that the value of the Guatemalan silver
dollar, the local standard, varied no less
| than 80 per cent. within eighteen months
In 1891 the purchasing power Of the
"sor' equalled 72 cents, gold; in October,
| 1904. at the time OF the establishment of the
| new standard, 1t was represented by 5O
| cents, net. above which it has not been
| quoted since
Governor Moloney says:
| arWith no direct cable connection and
| with an exchange rate continually vary
| ing, calculations as to prices were con-
| jectural; goods had to be figured capric-
| iously in anticipation of fall, whether
| one occurred or not, or at a rate ruling at
| the time of Importation; and when sold,
| a. was frequently the case, at credit OF
| six months or more, serious loss was often
| experienced. Consequently, traders were
| dazed, imports decreased, selling prices
| had to be constantly readjusted and
| greatly advanced and the main burden
| fell upon tho consumers, whose income,
| wheter fixed or as wages, had not cor
| respondingly increased. These became
discontented and irritated with the ex-
porters. who were the few persons who
| really made money during the period, as
| they worked with the depreciating and
realized in the appreciating money. Enter
prise was discouraged. Sales OF property
| were suspended As material had chiefly
| to be imported, builders fought shy OF
contracts, as they never could tell how
| they would come out The shrinkage OF
the value Of the "sop' meant correspond
| ing loss to most and had most demoral-
izing effect, tending to destroy prudence
and thrift Progress under such circum-
stances was impossible"
This picture would apply to any country
attempting to do business on silver basis
at the present time.
Honduras sought and found remedy.
With the consent Of the crown coinage
| ordinance was enacted, which demone-
tized the then existing currency; provided
for Its redemption within specified time
at a prescribed rate, which was fifty cents
| to the dollar, determined by committee
Of experts and representing the ratio OF
the new to the old currency which ruled
at the date of the change, and erected the
gold dollar Of the United States OF
America into the standard coin OF British
Honduras.
Bryan is proposing to introduce the Span
| ish-American silver dollar as the standard
coin Of the United States instead OF the
gold dollar, that a progressive state which
has had experience with the silver dollar
has found relief from its financial trou-
bles by adopting our gold dollar as its
standard, and with it the other well tried
features Of our metallic monetary system
rs confirmed In the famous act Of 1873
The Honduras ordinance made the gold
coins Of the United States mint legal ten
der for the amounts Of their denomina-
uons in dollars, rs woll as the British SOW
ereign and half sovereign for the amounts
/ Of $4S67 and g. 433 respectively, and estab
iished for domestic circulation subsid-
larry coinage, at par with gold, comprising
fifty cents, twenty-five cents, ten cents
and five cents silver pieces and the bronze
cent piece, fixing $40 as the limit Of legal
tender in silver and fifty cents for mixed
metal or nickel coins A separate ordi
nance authorized the issue, against gold
Of colonial paper currency, in notes Of
81, 81, s., $40 and 800, and any multiple Of
one hundred, fully secured, being in effect
gold certificates for the more convenient
transfer Of gold actually on deposit.
The requisite amount of gold, notes and
silver in the new coins having been i'm.
ported, the time for the redemption of the
dcmonetized silver dollar was fixed from
Oct. 10 to Oct. 81, 1894, during which
period the old money rendered in sums
of $50 and under was exchanged at the
prescribed rate for the new currency; for
larger amounts deposit receipts were given
and cashed within ole month from their
date The demonetized "sols" were shipped
out Of the colony and sold for what they
were worth, the amount realized being
used to pay for the money that was sub.
stituted for them. Only about one-third
of the number OF the dollars demonetized
has SO far had to be replaced by the CO.
lonial token money, tho difference being
made up by notes which, being convertible
on demand into gold, serve ill the pur
| poses Of currency.
The gold standard has now been estab-
lished two years. and at no time has it
been found that there Is more silvor sub
sidiary coin than is required. On the con-
| trary, 1t has been in constant demand, and
never at discount, its issue having boon
carefully limited to the actual require.
ments Of tho people for small change.
No disturbance Of any kind accompanied
the establishment Of the gold standard.
Not single commercial failure resulted,
and the staple industries Of the colony
have shown q marked increase. Not only
has the volume Of trade expanded, but
there has been an increase Of over 40 per
cent. since 1894 In the number of import
ers, because Of the greater stability Of
trade conditions.
"The laboring classes, the backbone of
the colony, have largely benefited as re-
CARDS wages, the dollars now earned equal
Ing the number formerly received by them
In soils Savings bank deposits have in
creased. Land and house property, whether
in town or country, has increased 100 per
cent in valuo, commanding now in gold
| the same amount received formerly in the
| money it replaced.
During the whole Of last year ninety
days drafts on England were at $3.50 to
the pound sterling, a few bills being sold
during the summer at s4.s2, and during
count Of . slight fuctuation in supply and
demand; drafts on the United States have
generally been at par. The sale Of bills Is
no longer monopoly nor the capricious
| thing 1t was. Accommodation has ceased
! to be a favor aud has become a matter Of
business"
In conclusion Governor Moloney says:
"The dominating question here has been
for years the currency problem; it has
| been coquetted with and never seriously
faced for various reasons into which 1t Is
| unnecessary now to enter 1t can be fairly
| claimed that the facts noticed in this arti-
| Gle demonstrate that satisfactory settle
| ment OF the much vexed question, cur
rency, has at last been arrived at. Public
| credit re-established on sound basis has
been repaired and enhanced. Stability
and rate Of exchange equaling those OBJ
taining In any country have been secured.