The San Francisco call., 1897-09-12
TRANSFERS IT'S
HEART TO GOLD
Costa Rica Forsakes the
White for the Yellow
Metal.
San Salvador Will Also Change
It's Currency Standard
at Once.
The Action Is Viewed by Local Busi,
ness Men With Much
Delight.

After many months of indecision the
| republic of Costa Rica has finally adopted
the gold standard. Cables received in this
City by Castle Brothers and Schwartz say
that the currency matter has been settled,
both Congress and the President actively
supporting the substitution of the yellow
for the time honored white metal. An
order for 500, 900 new coins has already
been placed with the mint at Fhila-
delphia.
The cable also brings the news that San
Salvador will probably initiate the ex-
ample Of her sister republic within few
days and that President Barrios and his
Congress of Guatemala are expected to
convert that country TO the gold stand
ard during the coming session of the law
makers.
Among local business men the change
is hailed with delight. Things in finan-
cial way have not been running very
smoothly of late in the Central American
republics. Costa Rica has been having a
monkey and parrot time for the past six
months. Exchange has been steadily
elm bing since the last election in the
United States. few days ago it was at
premium of 200 per cent and the pros
a
creasing
Some weeks ago the matter of adopting
the gold standard was seriously discussed
in Congress. The proje ct met with much
opposition at the time from the native
element, although all the representatives
OF foreign importing houses pronounced
the continuance of the silver basis would
result disastrousIy. The planters were
the most bitter opponents of the change.
as under the old conditions they paid
their la Dor in deprecated silver currency
and obtained good price IN gold Tor their
product in the foreign market But IN
the end this plan did not work as we'll as
they hoped for. The merchants and trad
ers who were compelled 10 buy their goods
IN the foreign markets were the chief sui
ferers and it is to their influence that the
change was finally brought about.
The cases OF San Salvador and Guate-
mala are similar. These countries have
always been on a silver basis and, like
Costa Rica, they have about come TO the
conclusion that except with the aid of
some or The big nations of the world they
could not keep their silver at anything
like premium. Exchange In these coun-
| tries now varies from $50 to 200 per cent.
Some months ago the SIX banks in Guate-
mala succeeded in borrowing 81, 500 900
in gold in Germany, and this so assisted
trade that the congresses OF both countries
nave been won over 10 the merits of the
yellow metal and vi | probably make it
the standard OF barter very shortly. In
the case of San Salvador the matter has
been practically decided, and 1t only re-
mains for the promulgation of an official
decree to put the change into effect
The Central American republics have
always been at q disadvantage as COM
pared with Mexico in the matter of main
tanning the value of silver. The realm of
Diaz is big producer OF the white metal
in fact, the mining of 1t is one of the
principal industries of the country. Costa
Rica, San Salvador and the other Central
American countries, on the contrary, de-
pend chiefly tor their prosperity on coffee.
| What silver they have used they
( have been obliged 10 import. Some
times this was effected at premium.
There have been times in their history
when these countries have Oeen almost
as scarce of silver as gold coin. Little ii
any of the precious metals is mined in
that part of the continent. Were these
countries as prolific of silver mines as
Mexico, it is probable that the adoption
of the gold standard would have been de-
ferred for many years. But with an ever
increasing trade in coffee with foreign
nations and steadily growing German
influence, their currency has steadily de-
preciated. The recent fall in the price of
silver was the last straw, and the value of
the peso began to drop with such light
ning-like rapiGity that even the most
sanguine lovers of it lost faith in it, and it
is now being relegated to the garrett.
The action of Costa Rica it is believed
will stimulate trade between this city and
that country. Representatives of the big
exporting houses in Central America are
confident that it will restore onfidence
in the coffee region and strengthen tho
credit of every purchaser in the foreign
markets. Coffee prices are high this year,
and these same people declare an era of
prosperity is at hand for all Central Amer
lea. which has been suffering from the
boom of three years ago.
The Predatory Crnw