Evening star., 1897-02-26
SPAIN REFUSES HER OWN MONEY.
Pays All Cuban Obligations in De-
preciated silver Paper.

Pays All Cuban Obligations in De.
preciated Silver Paper.
A recent letter to the New York Herald
from Havana says: The attempt now being
made by the Spanish authorities to en-
force the circulation of the silver notes al
their face value Is the most interesting
feature of the situation here today, and 1t
IL dicates the financial straits to which the
government and the treasury are put when
the captain general enters upon a cam
paign by which, If he is successful, Span
ish officials, civil, military and naval, and
the Spanish shopkeepers will be the prin-
cipal sufferers, at least at first
These notes, promising to pay their face
value in silver coin, were issued last fall
to the extent of $24,0OO,OOO replacing the
gold notes, which had to be withdrawn
owing to the inability Of the government
to place them in circulation. These paper
promises to pay steadily deprecated until
yesterday, when the governor generals or
der was published that they could only be
negotiated at discount of 80 per cent
Stated briefly, the order declares the sill
yer notes or billetes de Banco Espanol of
the Island of Cuba to be legal tender and a
full equivalent for silver coin in all trans
actions.
have indicated how the Spanish Bank
makes exchange for paper for silver well
nigh impossible. The government Is now
paying all its obligations in this depre-
clated paper. and yet 1t refuses to receive
1t at any price at the custom houses or as
payment of taxes.
The Cubans and Spaniards of the island
remember that the last emission of
the bank, issued in 1870. also a war meas
ure, was finally redeemed with a loss of
l34 per cent, SO the holders of the paper
are naturally very chary as to accepting
the paper promises. and 1t Is no exaggera-
fhnf rn,;tI,
the governor general has reduced the sala-
ries of officials and the value of the stock
IN trade OF merchants and retail dealers
30 per cent.
While up to the present no attempt has
been made to prosecute the exchange
houses for their open defiance of the order
Tor today as before the order was issued
they are paying 81 in silver paper for a
gold centen-in another direction the police
nave been most energetic, and several
shopkeepers have been arrested for an
nouncing on their price lists that they
would continue to receive paper only at it's
market and not at its face value
Ihese shopkeepers, like all members of
the class, belong to the Cuban volunteers
and have been accustomed to exert a
great innuence upon the course of events
mere Ihey and the Spanish officers are
beginning for the first time to suffer from,
the war measures. and If loud expressions
OF denunciation and disgust are any critic
rlen they do not like 1t and do not pro-
pose TO put up with such treatment long,
1t 1s not necessary to confirm or to denv
the rumor In circulation all over Havana
tnat the officers Of the civil guard. num-
ber1ng 600 men. and the very best corps
IN the army Of occupation, have notified the
treasury that they expect to be paid in
coin, to show how great are the emhar-
rassments which await the captain gen
vfau viaw on N ms ms attempt-doubtless necessary in
paper notes at a fictitious value down the
throats Of the people. >--e
me question is grave. All the business
men in Havana, as wen as the sess Iss,xess
,cn %no nave nave been consulted express the opin
,un ,ua, .hat the governor generals order
makes the billette full legal tender. and
snal 1aa.. 1t canot be refused in paying out
sdanuing sd Quotations, and must be accept
ed at It's decreed value. 1t remains how.
ever, ever at a depreciation of SO per cent. and
nnanciers ea do not believe 1t will rise. So
Iar the only result of the order has heen
70 .3,ng oring about great shrfnkage in values.
aareaay depreciated by other untoward cir.
cumstances Of the situation. IT is an.
bounced noun. that the treasury will continue to
q month WA AAAiiiou