New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-12-24
THE TRANSITION IN CUBA.
DIFFICULTIES THAT WILL BE PRESENT
ED BY THE MONEY QUESTION.
CHANGES IN THE STANDARDIZED TROUBLE
WITH SILVER AND PAYMENTS OF WAGES.

American control Is so close at hand that IL
! is possible 20 clearly the work ahead. Main
tanning order by means Of the troops is a pre-
liminary condition well understood that IL
does not call for explanation. All classes in
Cuba know why the soldiers are here and know
ing. they acquiesce. That knowledge in itself
is the best guarantee Of tranquility. Isolated
instances may arise which will call for repres
sion. They are almost sure 70 occur. but these
will not affect the general good order. They will
be no drawback 10 the measures Of industrial
and commercial reconstruction which necessa
ry precede the political government Of the ISL
ard as II may ba determined in the future.
The commercial classes. has been frequent
~ noted. are showing the greatest adaptabiity
to the new conditions Within fortnight after
the tariff is promulgated business will be NOV
ing smoothly in its accustomed channels. The
only uncertainty Of The future Is that which
will come from the shifting Of the money stand
ard
SO far as preparation be made for a
charge OF this kind. the business houses OF Ha-
vana have made f. They do not yet know
positively that customs duties 70 be paid in
the currency Of the United States. and they
are not certain that the imitation Will be
squeezed out OF the Spanish and French gold
coins. but they anticipate a modification Of some
kind This is the one cloud that hangs over the
business community The sentiment against
changing the present artificial relation Of va ues
appears 10 be growing.
ARGUMENTS AGAINST THE CHANGE.
The merchants and bankers who opposed
TO a change advance some strong arguments
against modifying the present system. They
take the ground that since the United States ex
poets 70 collect the customs revenues in trust
and 10 expend them In Cuba a change is not
desirable BY the imitation in the gold coins by
which everything from ounce down 10 a
doubloon or French louis receives a value
greater than its actual worth. Cuba has been
kept on a gold basis. Through all the periods
OF internal and industrial anarchy gold has
stayed in the island and the paper issue known
as "Weylers scrip" did not make Roadway or
debauch the currency. That is one reason the
merchants who oppose change In the present
artificial values advance They think that as
gold has been kept In the channels Of trale 1t
will continue 10 flow in the same channels with
out the necessity Of squeezing out the imitation
The readjustment Of financial values in its IN
nuence on the debtors and creditors Of the ISL
and Is something that cannot be fully analyzed.
The banking houses and firms which receive de-
posts will all adhere to their agreement, and
repay their deposits the basis OF ST. for an
ounce 81 50 for a centen. 81 % for doubloon
and 81 "a for louis Because OF the uncer-
tainty many 81 them are urging the withdrawal
Of deposits while these values prevail. II Is A
peculiar condition which causes this course to be
taken. though only temporary one The debts
on the island were contracted on this basis. AS
the sugar planters and everybody else are in
debt the repayment under new conditions prom
ises 70 be difficult Of arrangement Firms in the
United States which had occasion 70 make ad
vances or 10 loan money during the period OF
the instruction usually stipulated that repay
ment should he in American money or its equiv
alent They are not certain what will be con-
sdered the equivalent
PROBABLE TROUBLE OVER SILVER.
The use OF silver in the daily transactions
promises 70 be the most troublesome Of all the
questions that must be settled by the United
States. The merchants and sugar planters VINO
are opposed TO change in the present system
say that the transition 10 different basis
not be made without industrial disturbance and
without great hardship TO all employers Of la
Dor Silver is the currency OF everyday life.
Wages and salaries paid in II. Notwith-
standing the fluctuations in values as measured
by the daily quotations against gold it serves all
practical purposes probably becau = it is clearly
recognized as subsidiary coinage. In the cOun-
try districts the Of the population never
see any money except silver pesos" or dollars,
"pesetas." or 2O-cent pieces and "reeles, or
dimes The rate of daily wages is ordinarily
silver dollar. The purchasing power does not
follow the fluctuations so closely as might be
supposed, though when silver is falling in value
prices Of necessities rise faster than they fall
when It's value is approaching. his has been
illustrated during the last three months. Though
the "centen" now buys only seven Spanish silver
dollars where formerly II bought eight, the wage
earners are not able 70 purchase more with their
wages The prices Of retail commodities have
remained stationary.
The objection Of the employers is that II a
change is made they will be compelled 70 ad-
vance wages 10 per cent for that is about what
the elimination Of the Spanish silver currency,
or its readjustment 10 American values Will
cost They DO not believe that the laborers on
the sugar plantations and elsewhere can be
gued into accepting reduced wages in money OF
an increased purchasing power, because that re-
adjustment would come slowly. The experience
OF the laborers has not been such as TO cause
them TO wait patiently FOR the natural change
under which values would regulate themselves.
They know what Spanish silver dollar has
meant 70 them. They Will not be easily con-
winged that 30 cents in either Spanish or Amer
team silver means just as much. On the other
hand employers class, either on the sugar
plantations in other branches Of industry,
cannot afford TO give the equivalent Of 10 per
cent increase in wages
The payment Of the American troops will add
10 the difficulties. small amount OF United
States currency is in circulation but 1t lie in bills
in denominations Of s. and upward. as these
are large enough 70 command the regular ex-
change which varies from 10 10 per cent
One-dollar and two-dollar bills where they
ar. taken. pass merely as the equivalents
OF the Spanish pesos" silver dollars
The small shopkeepers and the laboring
population still ignorant Of the values
OF American silver coins. In the cafes they
are dstrusted, and the cabmen will not accept
them When large payments have been made
70 the soldiers this silver is certain 10 be forced
into circulation but the relation which il will
bear 20 the Spanish coins is puzzle. Though
very large amounts Of silver have been taken
back 70 Spain by the officers and the officials
the fear that silver would be left In Cuba
has not been realized. At present the value is
rising slightly due 70 further depletion by the
departing Spaniards but enough remains 10 an
swer the purposes OF business and 70 add 70 the
complex problems which must he solved by the
Treasury Department AZ Washington.