New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-08-12
.usuTsTT -
MONEYefI Nfo THE SPANISH ISLANDS.

Occupation OF Porto Rico and Santiago has
raised monetary questions which may help to
educate some Americans as well as Spanards
The silver money current in those quarters Is
of Spanish Mexican or South American origin.
and. being not supported. as American silver
coin is. by virtual redemption in gold. has been
reckoned in commercial exchange at rather less
than half It's nominal value. The silver con
whether Mexican dollar or other. Is not worth
half its face, with silver selling at less than
| half lis coming value. unless 1t IL treated as
| purely token currency representing gold, and
| with sufficient provision to make 1t virtually
redeemable in gold. The people of Santiago
and Porto Rico. however. find it difficult to see
why the American coin should be worth more
| than twice the value Of the metal 1t contains
but the Spanish or Mexican coin no more than
| It's bullion value. The wide difference will help
to teach them and Americans also the peculiar
conditions under which token coinage crcu
| lates.
small amount Of such coins, no more than
Is required in trade for limited and yet neces
sary uses can always be made to pass current
at their nominal value, provided there is sure
and sufficient opportunity for redemption at
that value Of any surplus which may appear. So
|
be used Mt their nominal value in payments 10
the Government. and are thus virtually re-
| deemed in gold whenever any surplus appears
over the amount really wanted in ordinary
transaction Of business, pass generally with
out hesitation ut that value, the operation being
essentially the same as If the Government had
stamped its promise to pay on paper instead of
| a silver coin. But the people who have never
learned that the coin thus passes only as
representative or token. because of legal pro-
vision for its virtual redemption in gold. are
perpetually unable TO comprehend why the
paper dollar. intrnsically worth nothing; the
silver dollar. intrinsically worth less than 30
cents. and the gold dollar intrnsically worth
100 cents should freely circulate at the same
| value.
The only remedy for the defects Of the cur
rency in Cuba and Porto Rico that is both equi-
table and practicable is by an arbitrary act of
Government applying this principle. 1t is with
In the power Of the Government TO determine
at what value in American money the Spanish
or other silver coins shall be accepted in pay
ments to military. treasury or postal authori-
ties and recognized ms lawful in settlement Of
debts between individuals. As all sorts of
business Obligations and contracts. including
those by local authorities for labor and sup
plies. have been in terms Of Spanish money. il
would be inepuitable and would cause great
and needless confusion for the United States 10
fix a widely different value upon the silver coin
from that which it has possessed. or to require
settlements in different kind Of money with
which the people are not familiar and which is
not vet in sufficient supply for their conven-
fence But the Government can put an end to
the instability Of the Spanish or other silver
money in value and stop the continued robbery
of people through the use Of n currency thus
fuctuating. II it provides that it will treat the
silver coin in all transactions until further or
ders as equivalent to 20 cents in United States
money. or such other sum may seem best.
That course has already been taken by the
Military Governor at Santiago, dispatches say.
much to the disgust OF sharpers who have been
punderng the people by means OF the I'M
known and fuctuating value of the money In
use.
This course gives the silver coin. at least for
the time. a representative or token character In
American money, without regard to the daily