New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-12-12


SCHEME OF TAXATION
Washington. Dec. 11.-Assstant Secretary
Vanderbilt who Is not expected here now until
December 90, in his second informal report OF
his observations in Porto Rico says that the
history of the currency situation is as follows
The island somo twenty-five. years ago using
ton the Spanish Government found the value Of
silver declining. and It discovered II would be profit
able 20 make payments in Mexican dollars. In
that way currency brought to a silver
basis. The heavy payments for crops made a re-
dundant currency. and a great deal Of IL
shipped away. Eventually the Government decided
on a coinage for the island making further profit
the peso is go fine. The Spanish Govcrnment gave
to redeem IT ut the Bank of Spain. at Madrid. at
% in gold. end 1t Is understood that some OF the
coins have been redeemed at that rae. although
comparatively few of them have been carried back
one Of the American commanders reports to me
that a condition that must he taken into account is
The o"ncrship or most or the antatlons. Ihey
are nearly all owned by Spaniards, greet many or
them by Sianards living in Spain. This has re-
s eansdern fi'f in q favor Of ~ iand in o 6
against the island. The great sugar planta-
ys 2n r HT%f crops 9 Of M T at ne xrmey ' ow
labor cost. The sugar has been sold abroad. and
abroad. creating demand for exchange against
the island About the only thing that has been
imported IS a little calico. and while the trade re-
turns show large excess Of exports. the value Of
those, exports never returns in any form TO the
island.
PLAN OF EXCHANGE UNSATISFA FACTORY.
When the American troops landed it was thought
an easy temporary solution OF the situation to fix
the rate of exchange between American dollars
and pesos at two for one. That worked salts
factOrily for little while but the exchange dealers
soon found that they could make moro profitable
of exchango. and our ratio therefore became
ineffective and imperative. The settlement OF the
question les between two extremes; on the one
hand the fixing Of the value Of the peso at the
exact value Of the bullion and. The other. giving
ii an equivalent gold va.ue equal to the nominal
red enable rate of %. which the Spanish Govern
An Army officer with whom talked IS in favor
for the present Porto Rican currency and THINKS
this might he done by military order liking the
be fixed 1t Is not believed the average rate Of ex
change for a series Of years should be taken. EX-
uttle reference 10 the actual balance Of trade. 1t
would be a hardship to the debtor class to have
working population Of the island There is great ,
amount of small debts 10 one seems 10 work
bel the repayment Of these debts In coinage more
valuable than that in which ihey were Sohh mt
that to undervaiue the peso gamgch 10y me
age exchh d rqe w0n yeT Wo lean o being %
would enable the small debtor class more easily to
nr, bullion va ne were taken as "A basis. st Offer
ample profit 10 the money.iehuers loI tie? nay,
of methods.
SCHEME FOR CHANGING CURRENCY
II was suggested to me that with respect to the
issues OF the Spanish bank. they might be re-
deemed In our money at tho same rate OF exchange
which We fix on the peso. II that rate Is low. tn"n
the bank can better attempt tn" rSdenptloh ~.
volume Of the currency i reported 10 be sinaIIet
than is generally estimated. While the orlglhHI
currency was from 5Olj.tJ to G.VwrJ pesos
thought by some that there nay not now 'e Hoir
Than 100000 pesos that would oe "HcnahS"d
Attempts are now being mace to collect hterfdl
taxes bu. at present armed guards nav" 10 d.
sent with the collector The schcme OF taNdl"n
Is sonnet hing like this: Tn" Central GoVernm'h'
levied on the municipalities ca municipality covers
va, oi = CIV hut a district "a certain amount that
must he collected for support Of me FoNrrhm'it-
;Tra rnuuciua.ity adds to that further sums ior
local rxpeuditures. The scheme or taNa'lon DF
which This total amount WAS collected varies J."
he different municipalities 1t Is qu.te IN" rcFtIse
s,,-n nur internal revenue taxes Tor niue any,
49,, i ail on the manufacture Of spirits ana
,"iaccn The best opinion j. that the JunicOus
INFLAMMATION Of our internal reveIli, system ana
49,. abnndonrnent of the Spanish system would DE
,.ieo TIC raising Of taxes on spirits WouIH ny
l,,,,or movement and the ablndonment or Oiher
Nv. nj taxes would give the new schee iuI 'net
io Iiii 81 o., II is thought by some that for me
IUddu|rt we are collecting too much reNrhuei Irl
the reason that up 20 '"'' "
practically no eNpefult"I ,ool ~ disturbance and
as,ruc,ion OF property in AsuadIla me pr@ymce
hyest corner OF the island and In MayA-
d, ~, Wv I, is thought that 5000 worth OF pioi.lN
bas been destroyed in Aguaq'ia ana iG, va sas en
tinauV nothing could be raised there 'hls season.