Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-06-19
Disastrous Attempt to Circulate
"Weyler's Scrip"
State DISCREDITS ITS own issue
Refuses to Receive It in Payment
for Duties and Taxes.
T De IS

much attention to the financial and eco
nomic aspect of the war That is the rot
ten core of Spanish control. Gomez and
the insurgents hope to depopulate the fair
provinces of Spain of their young man
hood by disease and death due to the fever
laden air Of the Cuban swamps Then
they trust to see Spain bankrupt and the
whole colonial edifice come crashing down
Weyler's hope is to depopulate Cuba and
make it a desert before the Spanish gov
ernment crumbes inward Then he trusts
to build up again, with Spanish COLOMBIA
ton, on an empty and a bankrupt treas
ury as the foundation.
The cost of the war to Spain Is not less
than eight million dollars a month in
gold. Usually it is figured at ten million
dollars month. This expense cannot les
sen while the er ormous army of occupancy
Is Kept in Cuba in order to give an an
pearance of pacification. AS the devasta-
tion spreads supplies grow dearer and
the cost of maintaining the army increases
Ihe corruption too, seems to grow bolder
ana more graSping. 1t was a stinging
comment that 4 Cuban made to me one
day In Havana. in discussing the reports of
pacification and comparing them with the
increased cost to Spain of keeping up the
war. He quoted the Spanish proverb:
Papa, manda me dinero porque estoy
ganando."
1t was the message which the spend-
thrift gambler sent to his parent: Father,
send me more morey, for 1 am winning
This is very apt illustration of the finan-
cial and economic side OF the war Spain
Is 'pacifying' Cuba and calling for more
money to keep up the war.
If the revolution succeeds through the
bankruptcy of Spain this will be due to
the seeds which h~have been sown in an
issue of billites for paper currency The
Cuban currency proper before the war
was made up of gold and silver. The coins
were equivalent to our dimes, quarters,
ffty-cent pieces and dollars, though they
did not hold the same relative value. The
silver peseta is twenty cents. The gold
coin Is known popularity as a ..centen" or
five-dollar piece. 1t Is designated as tWen-
ty-five pesetas. In Cuba it is given value
equal to 1890 this premium serving to
keep the gold on the island The Spanish
gold ounce passes as seventeen dollars.
The silver coinage is at a discount of e;gh-
teen to eighteen and one-half per cent
from gold, and therefore Is circulated at
considerably more than its bullion value.
Gold and Silver Currency.
This gold and silver currency answered
the needs of Cuban commerce quite eff
fectually. 1t was when the war necessi
ties came on that resort was had to a
paper issue. This paper was put out by
the Spanish Bank of Havana, which is
practically a state bank The currency
was issued under the authority and direc-
tion of the government 1t came to be
known as "Weyler's scrip" The denomi-
nations are five centavos, fifty centavos,
one hundred centavcs, five hundred centa-
vos, and so on. These correspond to the
old shinplasters of the United States, which
were common during the civil war and for
some years afterward. A centavo is the
equivalent of a cent. The fifty-cent shin
plaster is about the size of the old fifty
cent scrip in the United States. The one
hundred centayoS is practically the same
size, the only difference being in the deSig
nation of the denomination. This currency
reads: "El Banco Espanol de la Isle de
Cuba la presentation re este billate pa
CARA al Portador un poso en- metalico''-
tation of this billet will pay to the bearer
one dollar in COIN" In the minor denomina-
lions The amount is specified five CEN
tavos and fifty centavos. No 10 nor 25-cent
pieces were put in circulation.
Redemption a Farce.
The first issue of Weylers scrip was
said to have been $3,OOO.OoO It was to be
redeemed from $2.O00.O0O in gold and 81 Co.,
900 held in silver in the vaults of the Span
ish Bank. The Havana financial public was
skeptical. however. especially after further
issues of the scrip kept coming out. The
total amount in circulation now Is said to
be $2O,OOO.OUO. Against this, it is claimed
there is $6,O00WO in silver in the bank
vaults, but no one credits even this meager
redemption fund.
pretense of redeeming the paper in
small amounts was made until recently
But even here the usual corruption was
manifest. The time was limited for pre-
senting the notes and favored brokers by
connivance of the police were the only
ones who could get to the banks counter
Ultimately all pretense of redemption was
stopped. Moreover, while the issue is said
TO be s20,OOONO, no one knows the exact
amount. There is suspicion that the gov
ernment has forced the bank to put out
more. It is stated that notes for 10 cents
and 25 cents were printed, and are now in
havana, but the government dares not put
them out, although the alleged purpose is
10 take up notes of larger denomina tion.
w nile Mr. Calhoun was in Havana, the
Intendente de Hacienda, or local secretary
OF the treasury. resigned rather than be
responsible for a further ISSUE This fact
was kept from the general public, but IT
was known within an hour to the brokers
and spectators.
Discredfted by the Government.
The government does not entirely dis
credit its own currency. A small propor-
tton of the customs dues can be paid in
paper, while 1t Is also receivable for taxes
at a discount. The authorities are now pay-
ing the troops partially in bIlletes. thou9b
they do not dare press 1t on the soldiers in
large quantities. The troops are supposed
TO be pail in silver. A Spanish captain
complained to me very bitterly one day
that he had got half his months pay m
billetes. He thought the army was entitled
to exemption from the shinplasters, which
should be used solely by civilians.
The generalization caused by injecting
this unknown amount Of paper currency
into circulation has been fearful WeyIer
has issued various 'bandos'' or orders
threatening to visit the heaviest penalties
on those who refused to take the scrip at
the government valuation. 1t is prohibited
to quote billetes. All the resources of
arbitrary power. however. have not enabled
him to vanquish the tradesmen of Havana,
While they take the currency they fix their
own valuation for 1t. The bakers and other
guilds had fierce and stubborn struggle,
but In the end Weyler was beaten. They
received the scrip, but 1t was at q tremen-
dous discount. which further dislocated
values and demoralized business
Naturally the brokers and speculators
make money out of this shifting of the
The 'casas de cambio," or ex-
change houses, are very thick all over the
city. Many of them have signs up reciting
that 1t is forbidden to quote bflietes. and
they have no blackboard quotations But
the sarcasm Is felt even by Weyler He
has given up all attempt now to regulate
exchange, and looks ON the variations of
the currency with the same cynical intlif-
(Continued on Eleventh PAGE