The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-12-25
PORTO RICO'S CURRENCY,
TROUBLE IN BUSINESS CAUSED ny
m SILVER PESO.

One Rate OF Exchange In Official Use and
Another Followed Practically Trick
Played ON n Gable Company Porto
Ricnns Awake to Their Opportunities.
SAN JUAN, Porto Rico. Dec. 5.-The unsettled
rate OF exchange. official and commercial. OF
the American gold dollar and the Porto Rican
silver peso Is perhaps the most perplcNing fea-
ture OF the present reconstruction period, not
only to former residents but also TO the daily
increasing colony OF business men from the
United States. Owing to this financial pues-
ton, together with the temporary enforcement
OF n few Spanish customs and laws, tho BUSH
ness interests here are practically at n stand
still. Nor will any relief come until the cur
rency question is settled by Congress.
When the American troops first landed on
the island, Gen. Miles established by military
law an Official exchange rate Of two pesos for
an American dollar. This ratio became the
commercial rate at first, but the native mer-
chants soon refused to accept 81 for goods
marked two pesos. Consequently the price ola
dollar fell to / .00and later to / 80 pesos. Bythis
time the Post Office and Custom House were
the only places maintaining the official eS-
change rate. Every one who wanted to get the
highest price In pesos for his gold. therefore,
went to these Government houses. But as the
limited supply OF native silver here soon gave
out. even Uncle Sam closed his doors to people
In search OF two pesos for 81.
The office OF the English Gable Company. in
the meantime. did business at a special Eng
lish rate. which. based OIL American gold and
Porto Rican silver. was nothing more or less
than the two-for-one ratio. The few persons
who knew Of this little silver mine Immediately
became patrons OF the cable service. For Blu
a word they could send a message to the near
est foreign office. st. Thomas Island, and then.
by reason of the small amount OF American
bills and silver in circulation. get pesos
in change for their gold at the desired
rate. What message and to whom to send II
were difficulties easily overcome. II the Ameri-
cans happened to have friends at st. Thomas. so
much the better. On the other hand, II not
acquainted there, the Yankees could cable to
men whose names appeared in the st. Thomas
newspaper. Most Of these messages. the clerk
remembered later, consisted of one word and
were always accompanied by a double gold
eagle. Thus their senders. after paying Sill.
or 2.34 pesos, for the one word. received 3766
pesos in return, 1896 pesos more than they
could get for the SAM gold piece on the street.
At the other end of the wire. naturally. the re-
ceivers of these short cableRrams were greatly
puzzled. In one instance a newspaper corre-
spondent recognized the name of an old friend
What p" cabled back the correspondent.
Nothing" replied the American;
Thomas correspondent, not by cable this time.
but by the first mail steamer.
resident, who. Unexpectedly. had n chance to
cash another double eagle by the cabled reply OF
to get pesosin change from the cable company
But within a week the cable manager himself
discovered his Improbable trade and refused
r..Notwithstanding the refusal. of the Custom
tu-n- fpr-pnn rntn in nyshunuipu p,npu. th,,
still demand this ratio from The pe eeGIie'' H taars
incidentally. is an illustration Of the need of an
States stamp costs 10 cents in Porto Rican
money. two cents more in native copper than
%ehsne e%Ft''f But 'f instead ade OF YfP Payin as 10 i6e ee mGef II
h "a Sen coin; the f6r people e}dlei ex snd tbGM eight Of their
STAMP for two cents tsN below the i" PRICE Il f Porto
hican silver, In the Custom House transac-
tloTs; wns5e r rae s dscide are hfn mggs l ar m;tahTee
chants. If the duty amounts to eight pesos.
for example. they can exchange this sum
paying their Government bill with 81. at tie
two-for-one, rate. still have ST. with which to
The city mail carriers; furthermore, reap a
sbe p harvest f ai r 06Isrv from rom, The 1m Peop'e under
Under Spanish rule the Government employed
no official postmen. bur at the request OF the
carriers were paid at the rate. OF one Porto
Riean penny a letter BY the receiver But now.
49, thANI t'A' " 80 D VINO L DluNtS
currency basis, they demand an American cop
per; or. recognizing the official ratio. two native
cents a letter. which OF course doubles their
former income. Their new rates are easily
enforced. moreover: for the responsibility Of
the Government ends. as under Spanish rule,
when the letters are given to the ,postmen. II
a citizen, then, refuses to, ray the increased
price his letters remain undelivered in the Post
Office. At one native cent a letter the six car
riers usually made from 30 to 40 pesos a month.
States Iss a nnElPP ort sn Rie ssll1 mSn OF so 9a %aeh a T 1pdsti
able business for the banks. and also for a new
class OF small MERCHANTS. the professional
Here" usually hangs outside a cigar store or
small native saloon, many, of which. thus early.
The Dewey" The Bob Fitzsimmons" and
gold dollar exchanges for t.65 pesos. aud a 81:
however. customers want American. gold. they
must, pay Ito pesos In native silver. And
whether the market prices rise or fall, the
money-changers always make the same per-
The 81. 100000 of special currency now in cir.
~culation here consists OF coin hardly 40 per
cent. silver, bearing the portrait OF. young
Alfonso MIL. and a small fraction Of copper
people have PUNCHED a. small sH'I hole. "I By t i
mark the Porto Ricans hoped to keep at least
their copper coin on the island, during Spanish
rule. Banco Espahol notes. which increase In
]. 100000 pesos. Then some paper money.
which was issued in 8 when the present
currency took the place of the current Mexican
silver. Is also now 10 circulation as a Spanish
took possession Of San Juan this recalled paper,
which had been ordered burned by the home
Governments. was taken from the Treasury
vaults and thrown into bonires., But a gang 81
pesos and then sold them to the Americans.