Evening star., 1898-12-29

iSSelNeb LOT customs, taxes. public and
postal dues at the following fixed rates in
American money: The peso, 60 cents: the
medic peso, 80 cents; the peseta II cents.
the real. 6 cents; the medic real, 3 cents.
Bronze ana copper coins now current in the
Island az Cuba will be received at their face
value for fractional parts of a dollar in a
single payment to an amount not exceeding
L cents Gone peseta).
WILLIAM MCKINLEY.
Effect of the Order.
The order creates an entirely new fnan.
cial system for Cuba, and establishes the
soio standard there. The order goes much
farther than merely establishing coin
values for customs dues. 1t is Anticipated
that there will be big protest from the
silver men of the country when the full
effect of the order is seen.
Inc erect of the order signed by the
president, said Commissioner Porter "is
to simply follow out the financial no}icv of
the administration and of the United States
government, and places Cuba firmly on a
gold basis, with no imitation whatever This
Is what the people of Cuba want Some of
the Cuban bankers wanted to continue the
minated gold values, making the $40 gold
piece, for instance, worth Sill or the s.
gold piece worth $50. the same imitation
to hold on Spanish and French gold pieces
or course it was impossible to do this All
Spanish and French gold will be received
by the United States at their mint value"
Placing the Spanish silver peso at 60
cents was largely Tor the purpose of pre-
venting It going back to Spain too fast
The SDaniardS rate the coin at 40 cents
and the value nlaced by the United States
is not much lower. 1t was feared that If
the value was placed at 30 cents the coin
would quickly disappear from Cuba and
go back to Spain
Generalization of Gold.
Commissioner Porter, in his report to
Secretary Gage on the subject of currency
in Cuba said. t'oT6p real ND
the only one likely to cause any trouble is
that arising from initiation, by royal decree
of the Spanish % peseta, popularity known
as the AlfonSinoS, or centenS, and the sub
sequent imitation Of the French 20-franc
piece, SO-called Napoleons. which have been
given a legal value of $i.24, and decreed
since the end of 1893 as legal money The
Spanish authorities at Madrid. having thus
inflated two gold coins per cent above
their current value, and about 10 per cent
above their intrinsic Value-for the mint
value Of these two coins is s4.716 and
Ss.S20S. reSpectively-the United States au-
thorities at Washington are now called
upon to initiate a third gold coin and make
the American eagle worth $i1 in Cuba and
our So gold piece worth $3.50. AS a tenn
porary measure this may have some justi-
fcation. and the statements of Cuban bank
ers. planters and business men in favor of
this may have a certain degree of plaus
biiity. The process however is purely arti-
fetal, and whatever is done in this direc
ton today will have to be undone some
other day. The danger lies in the adoption
by the United States government of bad
precedent in Cuban financiering. inaus
urated by the Spanish government, and for
which the United States is in no manner
responsible. The reckoning day must come
for all inflated values, whether of paper, of
silver or of gold and when that day comes
some one will suffer.
The practical question seems to be how
to disinfate these two coins with the least
possible disturbance to mortgages. con-
tracts, notes and all classes of existing
agreements to pay money. Current matters
will adjust and take care of themselves. 1t
is generally known that all transactions in
Cuba since the close of the war have been
made with the belief that the United States
would not continue the royal decree of
Spain, and that the inflations would COL
lapse with the disappearance of Spanish
rule.
The Remedy Adopted.
After considering the suggestions of var
ious prominent people IN Cuba Mr.. Porter
says: THE only remaining course would
be to accept United States money at it's full
value for customs and taxes and foreign
coins at their intrinsic or mint value
1t will be seen from the order of the
President that this suggestion has been
adopted.
''If this were done and no action taken in
relation to the coins in which existing con-
tracts shall be paid, that side of the prob
lem will in time adjust itself. 1t is not
probable that this adjustment can be ac-
complished without hardship to some debt
ors and slight financial disturbance. 1t is
not, however, apprehended that the disturb
ance will be as great as some have antici-
pated In Santiago the first step to abso-
lutely sound finance has been taken and 6
per cent of the imitation squeezed out The
business interests in that portion of the isl
and are opposed to a continuation of the
infia ton.
LAS one of the evils arising from disin-
fiation 1t will be noted that certain people
put forward the fact that it will mean an
increase of from 4 to 10 per cent in the
wages of labor, which Cuban industries
can not afford Such result, if true, can
not be regarded as evil, but, on the con-
trary, benefit to the poorer classes, whose
condition in Cuba is deplorable beyond de-
scription. In the iron mines at Santiago
the large American enterprises have al
ready adjusted themselves to the new con-
ditions and are paying IS cents per day,
American currency, instead of the Spanish
dollar worth IS cents, and in the worlds
markets but so cents'
Mr.. Porter concludes by saying that the
sugar planter who has borrowed on a fic-
titfous value may suffer some, but in the
end he will be repaid by the reduction in
taxes. customs dues, supplies, provisions,
machinery, etc.
Contributed for Charity.