The record-union., 1898-12-30
President Mckinley Approves an
Executive Order
Regulating the Financial System, TO Take
Effect on January lSt.
Rules Laid Down for ths Payment
of Customs, Taxes, Public and
Postal Dues-Eixes Rates in
American Money at Which
Spanish and Other Coins Now
in Circulation Will be Rec
ceived.

ceived.
WASHINGTON, Dec. 29-After 81
conference today with Robert P. Por>-
ter, special Commissioner of the United
States to Cuba and Porto Rico, the
President approved the following exec
utive order which had already been
signed by Secretary Gage in a measure
regulating the financial system in
Cuba:
1T is hereby ordered that on and af~
ter January 1, 1899, and until otherwise
provided, all customs, taxes, public and
postal dues in the island of Cuba shall
be paid in United States money or in
foreign gold coin such as the Spanish
alphonsinos (centen) and the French
louis, which will be accepted in pay
ment of such customs, taxes, public and
postal dues at the following rates:
"Alphonsinos (25-peseta piece), "a. S24
Louis (2O-franc piece, $3.50.
THAT all existing contracts for this
payments of money shall be payable in
the money denominated in such con-
tracts and where French and Spanish
gold shall be the stipulated money of
payment they shall be received in their
p1GSSAl OCCISCO I1IuldlSQ NdtuGSB l. Co
Alphonsinos (25-peseta piece), $3.50;
Louis (2O-franc piece), $424, or in
United States money at the relative
values set forth in the above table.
namely, $4.S2 for Alphonsinos (25-pe-
seta piece) and $3.50 for Louis CO.
franc piece).
TT is further ordered that on and
after January 1, 1899, and until fur
r ho nil StN
silver coins now in circulation in the
customs, taxes, public and postal dues
at the following fixed rates in Ameri-
can money: The peso, 60 cents; medic
peso, 80 cents; peseta, u cents; real, g
cents; medic real, 3 cents.
Bronze and copper coins now cur
rent in the island of Cuba will be re-
tional payments of a dollar, in a single
payment to an amount not exceeding
II cents, or one peseta.
WILLIAM MCKINLEY"
In the course Of his report, upon
which the Presidents order is based,
Mr.. Porter says:
''The real point at issue and the only
one likely to cause any trouble is that
cree of the Spanish 25-peseta, popular
ly known as Alphonsinos or centens.
and the subsequent imitation of the
French 20-franc pieces, so-called Ma
poleons, which have been given a Legal
value of $4.24, and decreed since the
end Of 1893 as legal money The Span
ish authorities at Madrid, having thus
inflated two gold coins per cent. above
nd oil
cent. above their intrinsic value-fo,
the mint value of these two coins is
S4.776 and $3.S2OS, respectively-the
United States authorities at Washing
ton are now called upon to initiate a.
third gold coin, and make the Ameri-
can eagle worth $11 in Cuba and our
50 gold pieces current there at $3.50.
AS temporary measure this may
have some justification, and statements
from Cuban bankers, planters and busi-
ness men as to evils of disinfation at
this time have a certain degree of
plausibility. The process, however, Isl
entirely artificial, and whatever is done
in this direction to-day must be un-
done some other day
''The practical question would SEEM
how to disinf1ate these two coins with
the least possible disturbance to mort
cages, contracts, 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 de-
cree of Spain, and that the infation
would collapse win the disappearance
of Spanish rule.
1T is not probable that this adjust.
ment can be accomplished without
hardship to some debtors. and a. slight
financial disturbance. 1t is not, how
ever apprehended that the trouble will
be as great as some have anticipated.
That the planter will suffer cannot
be denied, but the advent of the
United States into Cuba will tighten so
many of his burdens that his condition
is not without hope. All the customs
duties on his imported food supplies
have been reduced, and many import
ant commodities put upon the free list.
His sugar machinery has been reduced
to III per cent. ad valorem, his locomo-
tives and railroad supplies to 20 per
cent, and all along the lines the taxes
nave been cut down. 1t is not probable
that his land tax will be collected dur
ing the present fiscal year, while the
return of peace, establishment Of law
and order and protection of property
will immeasurably improve his lot If.
therefore, the sugar planter of Cuba
will gauge the present outlook by a.
glance backward, and compare with his
condition last year at this time. he
may face the New Year with less
gloomy premonitions as to his future
than some Of the testimony taken by
your Commissioner on the effects OF
disinfation would Indicate"