Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-08-23

their honor as Spaniards and their oaths
of fidelity to their king did not allow them
to accept or recognize the sovereignty of
the United States in Cuba and because of
the terms of Mr.. McKiney's proclama-
ton, resignation was the only course left
open to them
The critical situation of Guantanamo has
been brought to General Skaters notice.
The town is without food and without the
means of procuring any from Santiago, as
there is no transportation. A steamer has
been ordered to proceed thither at once,
carrying to the merchants the provisions
so urgently needed; and the Red Cross So
ciety will also send relief to Guantanamo
poer.
That Col. Wood. military governor Of the
city, is very careful to avoid political dis
cussion and unpleasantness is shown by the
incident of Enrique Trujillo. Mr. TruJillo
has published for some time in New York
city Cuban newspaper called Ell Porvenlr
AS soon Santiago was In our possession
he sailed from New York for TINS. MS
native city, with the intention OF publish
ing here q paper that would be loud in its
cries for free Cuba In this project was
foreseen menace to the public political
peace, and Mr.. Trujillo's request was de-
MED 1t is understood that he has appealed
to Washington for reversal or the de-
cision against him.
Santiago commercial circles have had
much to talk of since Monday, when there
issued from the palace ruling concerning
the values of Spanish money and rates of
exchange. AS the writer has already
pointed out. ever since the Americans oc-
cupied the town the retail dealers have
overcharged everybody by demanding pay
ment in gold, where before they had ac-
cepted silver. The siege and scarcity of
food also served as excuses for exorbitant
prices. local paper took the matter up
and called loudly for an adjustment of the
values of gold and silver money. At the
palace conference Monday it was an
nounced that the Spanish gold piece of
twenty-five pesetas, centen, as it is
called, would be accepted at the custom
house as So gold. and that Spanish silver
was worth half its face value in gold.
table was issued stating the new values on
the several gold coins in circulation.
An Unsatisfactory Ruling.
In so far as these values applied to Gus
tom duties there was little objection. The
loss to the merchant, who paid duties on
imports, could be regained by putting a
higher price to the consumer. But when
It was learned that these values applied
also to commercial and all other trans
actions 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 standard. When the gold
centen was sent from Spain to Cuba its
gold value was increased per cent TO Keep
the money in the island. That is to say,
the centen an Cuba has been worth $3.50
in gold. The Cuban carrying back Spanish
gold TO SpenQ III spain mas always lOSt D
per cent; for the value in Spain was an
even IS. Now that the United States has
said 1t would accept the centen at IS in
payment of customs duties the effect of the
ruling Is to declare that the circulation of
gold in Cuba is worth 8 per cent less
than the amount Cuban legislation had
fixed. Six per cent on fifteen or twenty
million dollars in gold-the estimated
amount in circulation@s, 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 it can be justified.
The Eject.
There are two other points vitality con-
nected with this measure. The first is the
fact that the gold and the silver coins will
Immediately leave the island in large guam
titles; the second is the contention that the
United States, not having officially annexed
the Island of Cuba or the province and
city of Santiago, is not entitled, under in
ternationai law, to modify in any manner
the civil legislation of the occupied terri
tory.
Silver was formerly at 40 per cent dis
count in Cuba; today 1T has been put at %
per cent. On July 26 last silver in Spain
was, at % per cent discount, Il, therefore,
one buys here for hundred dollars in gold
the sum of two hundred Spanish odollars
in silver, Sending the latter to Spalp at a
cost. for transportation and Insurance, of
IN per cent, and exchanges the silver tHert
for gold. receiving one hundred and fifty