El Paso daily herald. (El Paso, Tex.) 1881-1901, 1898-12-14
PORTO RICO'S MONEY.
DELICATE SITUATION OF. CURRENCA
IN THE ISLAND.

Peculiar Conditions There Make the
Introduction of American Medium
of Exchange n Most Difficult Prob
1em-Vfews of n Porto Rican.
In his annual report the secretary of
the treasury will make some important
recommendations concerning the cur
rency of Porto Rico. The situation there
is very delicate. The Spanish govern
ment has kept the currency down to
about So, 900, 900 in silver coin, which
has been sufficient for the transaction of
business, because SO much of it is done
on credit.
The labor Of the island is paid on a
silver basis at the rate Of about 60 cents
a day in American money and 81 day
in the native money. But the laboring
people are so ignorant and stupid that
they cannot comprehend the difference
between the two, and one has as great a
value as the other in their eyes. AS they
have been accustomed to receiving 81 a
day they will continue to demand it, no
matter whether they are paid an Amer
lean dollar or Porto Rican dollar.
If our government withdraws the Por-
to Rican coinage, it will result in sud-
den and imperative increase of 40 per
cent in the cost of production in all
mechanical and agricultural industries,
which, Of course, would be ruinous to
the planters. If they should attempt to
pay the laborers 60 cents in American
money, there would be a riot, although
after awhile, when the latter became ac-
customed to the American coinage and
were taught to understand the intrica-
cies of exchange. it might be possible
gradually to withdraw the Porto Rican
currency and substitute the American
currency without creating an industrial
disturbance.
Mr.. Tritzed, one Of the wisest men
in Porto Rico, a gentleman who has ex-
tensive experience in banking as we'll
as agriculture, has suggested to Score
tary Gage that fixed rate Of exchange
be established on basis Of the average
value for the last ten years and that the
government announce officially that this
rate will be maintained for five years.
This, it is believed, would solve the
problem. Mr.. Tritzed said recently:
81 have my serious doubts whether
the United States will introduce Ameri-
can gold by melting our silver and pay
ing only its silver value. 1t cannot be
in the interest of the United States to
create any ill feeling among the popu-
lation of Porto Rico by such a heroic
measure. Considering that payments on
all transactions in real estate, sugar es-
tates, ETC., are made during the term Of
many years, that commercial transac
tions are settled not under a year to a
year and half, there cannot be any
doubt that such a step would bring
about a serious crisis. The new govern
ment cannot begin with running one
part of the population and enriohing
the other part. Some way between the
two extremes ought to be selected and
the interests of all considered.
"Au transactions SO far have been
made in the currency of Porto Rico.
Our silver may be melted up to the
amount necessary for our daily opera
tions-say 81, 600, O0O-and this part
should represent Porto Rico currency
as heretofore and should remain SO for
several years. 1t should be forbidden to
either import or export it. Then Amer
lean gold and silver may be brought to
Porto Rico and circulated, but with the
condition that it shall have certain
fixed value compared with the Porto
Rico coinage. In fixing this value the
line should be drawn between the two
extremes.
"Before the war the premium in New
York huctuated between 60 and rs per
cent At present the rate is extreme,
owing to tho war. A fixed rate of from
rs to 80 per cent premium on American
gold or silver would, in my opinion, be
the right thing. All transactions may
then be settled according to convenience
in Porto Rico currency or in United
States currency. It will not take many
years for all new business to be done in
United States currency, and thus the
whole question will settle itself. Any
loss resulting from the melting of Porto
Rico silver should be written off grad
ually by an increase in tax and to be
paid by Porto Rico, So, 200, 900 or &c.
900, 900 only having been coined.
''The agricultural population will
have the further benefit of the premium
on gold, of which it is in absolute need,
until the whole people, including the
agriculturists, have become accustomed
to the lower prices in gold in their pur
chases and slles and the lower wages in
gold and till, in few years, the Porto
Rico currency will be done with alto
gether. The chief products of Porto
Rico are coffee and sugar and as the
greater portion of the cost of their Gull |
tivation is in labor any attempt to dis |
turb values would be ruinous. "-Wil- |
liam E. Curtis in Chicago Record.
Novel Exhibition With Pool Balls.
Dimond s. Richardson, a negro who |