The Indianapolis journal., 1898-09-02
CURRENCY QUESTION IN CUBA.
Santiago Merchants Not Pleased with
American Rulings.

American Rulings.
Correspondence New York Commercial Ad-
vertiser.
Santiago commercial circles have had
much to talk of since Monday, when there
issued from the. palace fuling concern
ing the values of Spanish money and rates
of exchange. Since the American occupa-
ton the retail dealers have overchargeo
everybody by demanding payment IN gold
where before they had accepted silver. Ihe
siege and scarcity of food also served as
took up the matter, and called loudly for
an adjustment of the values of gold and
silver money. At the palace conference on
Monday it was announced that the Spanish
gold piece of 25 pesetas, a centen, as 1t is
called, would be accepted at the custom
house as $5 gold. and that Spanish silver
was worth half its face value in gold: A
table was issued in which the new Values
on the several gold coins in circulation
were set forth. In so far as those values it.s
objection The loss to the merchant, VINO
paid duties on imports, could be rega1ned
by obtaining a higher price from the con-
sumer But when it was learned that the
values applied also to commercial and all
other transactions between the inhabitants
of Cuba, much feeling was expressed
against the new ruling. The case is this:
Spain is on a silver basis of circulation;
Cuba has tried to maintain a gold stand
ard. When the gold centen was sent from
Spain to Cuba its gold value was increased
6 per cent. to keep the gold in the island.
That is to say, the centen in Cuba has been
worth $3.50 in gold. The Cuban carrying
back Spanish gold to spend in Spain has al
ways lost per cent; for the value IN
Spain was an even So. Now that the United
States has said it would accept the centen
at S. in payment of customs duties. the
effect of the ruling is to declare the circu-
iation of gold in Cuba to be worth . per
cent less than the amount Cuban legislation
had fixed. Six per cent on fifteen or twenty
million dollars in gold-the efimated
amount in circuation-is, the Santiago
merchants contend, a serious reduction in
the country's capital, a reduction all the
more serious in that 1t comes after years
of great commercial depression They ask
how 1t can be justified.
Two other points are connected vitally
with the measure: The first is the fact
that the gold and the silver coins are likely
to be sent from the island in large quanu-
ties: the second is he contention that the
and of Cuba or the provinces and city OF
Santiago, is not entitled, unoer international
law, to modify in any manner the civil Leg
islation of the occupied territory.
Silver was at 40 per cent. discount for-
merly in Cuba; to-day 1t has been put at
so per cent. On July 26 last silver IN spain pair
one buys here for hundred dollars in gold
the sum of two hundred Spanish dollars in
silver sending the latter to Spain at a cost
for transportation and insurance, OF l1 per
cent, and exchanges the silver there for
gold, receiving one hundred and nifty dol
lars there is a profit after deductlng
charges of freight. brokerage and insur-
ance, of forty-eight dollars gold on a hum
dred..dollar gold investment. Truly lucra-
tive business. Already many are accumuat-
ing silver to send TO Spain by the trst yes
sci that will carry IT. The result Will be that
the silver currency of Cuba will rapidly
leave the island.
AS to the right of the United States to re-
verse civil legislative rulings, the contrary
is clearly said to be the case in Flores
"Derecho International Codificado. Volume
g. Chapter w.. entitled DE la Ocupacion
Miitar de sus consecuencias Juridicas." !"
Articles I, ,076 to 1 103 the book is transla-
tion from the Italian, and the statements In
the chapter cited are being carefully con-
sidered by the best lawyers and leading mer-
chants of Santiago There is some talk of
making a test case as to the legality of the
measure taken by the United States. But it
is doubtful that this will be done. Many of
the merchants seem inclined TO accept the 8
per cent loss as the fortune of war.