The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-12-30
CUBAN FINANCES.
Mckinley Makes an Order Fixing Values
Porter's Report.

Washington. Dec 29.-After a con-
ference to-day with Robert p. Porter.
special commissioner of the United
States TO Cuba and Porto Rico. the
president approved the executive order
which had already been signed by Sec
retary Gage i'm a measure regulating
the financial system i'm Cuba.
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
arising from the imitation bv royal de-
cree of the Spanish 25 peseta. properly
known as Alfonsno or centens, and the
subsequent imitation of the French 20
franc piece, so called Napoleons. which
have been given a legal value of $4.2i
and decreed since the end OF 1898 as
LEGAL money. The Spanish authorities
at Madrid having thus inflated two gold
coins per cent above their current val
ue and about 10 per cent above their in
trinsic value-for the mint values of
these two coins is s4.776 and s3.s20s re-
spectively-the United States author
ities at Washington are now called
upon to initiate third gold coin and
make the American eagle worth $11 in
Cuba and our s. gold piece current
there at $3.50. AS temporary measure
this may have some justification, and
statements from Cuban bankers, plant
ers and business men as to evils of dis
imitation at this time have a certain
degree of plausibility. The process,
however, is entirely artificial and what
ever is done in this day must be un-
done some other day. the practical
question would seem how TO disinfate
these two coins with the least possible
disturbance to mortgages, contracts,
notes and all classes of existing agree
ments to pay money. Current mat
ters will adjust and take care of them
selves.
1T is generally known that all trans
actions in Cuba since the close of the
war have been made with the belief
that the United States would not con-
tinue the royal decree of Spain and that
the inflations would collanse with the
disappearance OF Spain's rule.
' II is not probable that this
adjustment can be accomplished with
out hardship to some debtors and a
slight financial disturbance. Ii Is not.
however. apprehended that the trouble
will be as great as some have antici-
pated. In Santiago the first stem 10
absolutely sound finance has been
taken and six per cent of the imitation
squeezed out. The business interests
in that part Of the island are opposed
to a continuation of the 10 per cent in
fiation and merely ask that the circu-
lation shall be left al it's face value.
As one of the evils arising from disin-
fiation certain petitioners put forward
the fact that IL will mean an increase
Of from 4 TO 10 per cent in the wages
OF labor, which Cuban industries cannot
afford. Such a result IL true. cannot
be regarded as an evil. but on the con-
trary. a benefit to the poorer classes.
whose condition in Cuba is deplorable
beyond description. In the iron mines
al Santiago the large American enter
-
selves TO the new conditions and are
paying their labor 20 cents per day
American currency instead Of a Span
ish dollar. worth 65 cents in Cuba. and.
in the worlds markets. but 50 cents.
Your commission. when in the mining