The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-12-25
SILVER is THE POPULAR MONEY
WAGES AND SALARIES ALL PAID IN
THE WHITE METAL.
Business Men Opposed to ROhbing
Gold Coins of What Is Called
Inflated Values.

nary condition so well understood that 1t
does not call for explanation. All classes in
Cuba know why the soldiers are here, and
knowing, they acquiesce. That knowledge, in
itself, is the best guarantee Of tranquility
Isolated instances may arise which will call
for repression, but these will not affect the
general good order There will be no draw
back to the measures of industrial and COM
mercial reconstruction which necessarily
precede the political government of the
island, as it may be determined in the
future. The commercial classes are showing
the greatest adaptability to the new condi-
tons. Within a fortnight after the tariff is
promulgated business will be moving
smoothly in its accustomed channels The
only uncertainty of the future is that which
will come from the shifting of the money
standard So far as preparations can be
made for a change of this kind, the bust
ness houses of Havana have made it. They
do not as yet, know positively that GUS
toms duties are to be paid in the currency
of the United States and they are not GER
tain that the initiation will be squeezed out
of the Spanish and French gold coins, but
they anticipate modification of some kind
This is the one cloud that hangs over the
business community.
The sentiment against changing the pres
ent artificial relation of values appears to
be growing. The merchants and bankers
who are opposed to change advance some
strong arguments against modifying the
present system. They take the ground that
since the United States expects to collect
the customs revenues in trust and to expend
them in Cuba a change is not desirable. By
the initiation in the gold coins, by which
everything from an ounce down to doub-
Loo .I,
greater than it's actual WORTH Cuba has
been kept on gold basis Through all the
periods of internal war and industrial an
archy gold has stayed in the island and the
paper ISSUE known as "Weylers scrip"
did not make Roadway or debauch the cur
rency. That is one reason the merchants
who oppose a change in the present arti-
fetal values advance. They think that as
gold has been kept in the channels of trade
it Will continue to flow in the same chan
nels without the necessity of squeezing out
the imitation.
The readjustment of financial values, in
it's influence on the debtors and creditors
of the island is something that cannot be
fully analysed. The banking houses and
firms which receive deposits will all adj
here to their agreement and repay their de-
posits on the basis of ST. for an ounce, $3.50
for a centen, $4.25 for doubloon and $4A
for a louis. Because of the uncertainty
many of them are urging the withdrawal
of deposits while these values prevail 1t
is a peculiar condition which causes this
course to be taken, though only a temper
airy one. The debts on the island were con-
tracted on this basis. AS the sugar plant
ers and everybody else are in debt, the pay
ment under new conditions promises to be
difficult of arrangement. Firms in the
United States which had occasion to make
advances or to loan money during the
period of the Instruction usually stipulated
that repayment should be in American
money, or its equivalent. They are not
certain What will be considered the equiva-
lent.
The use of silver in the daily transactions
promises to be the most troublesome of all
the questions that must be settled by the
United States. The merchants the sugar
planters, who are opposed to a change in
the present system, say that the transit
ton to a different basis cannot be made
without Industrial disturbances and without
great hardship to all employers of labor
Silver is the currency of everyday life
Wages and salaries are paid in it. Not
outstanding the fluctuations in values
measured by the daily quotations against
gold, it serves all practical purposes, prob
ably because it is clearly recognized as sub
sidiary coinage. In the country districts
the mass of the population never see any
money except silver pesos dollars,
pesetas of twenty-cent pieces and reales or
dimes. The rate of daily wages is ordnar-
lily d silver dollar The purchasing power
does not follow the fluctuations so closely
as might be supposed, though when silver
| is falling in value prices of necessities rise
faster than they fall when its value is APP
| preciating. This has been illustrated during
|. the last three months. Though the centen
now buys only seven Spanish silver dollars,
where formerly it bought eight, the wage
earners are not able to purchase more with
their wages. The prices of retail commodi-
ties have remained stationary.
The objection of the employers is that if
change is made they will be compelled to
advance wages 10 per cent. for that is about
what the elimination of the Spanish silver
currency, or its readjustment to American
values will cost They do not believe the
laborers on the sugar plantations and else
where can be argued into accepting reduced
wages in money of an increased purchasing
power, because that REIMBURSEMENT would
come slowly. The experience of the laborers
patiently for the natural change under
which values would regulate themselves.
They know what Spanish silver dollar
has meant to them. They will not be easily
convinced that so cents in either Spanish or
American silver means just as much. On
the other hand employers class either
on the sugar plantations or in other
branches of industry cannot afford to give
the equivalent of a 10 per cent. increase in
wages.
The payment of the American troops will
add to the difficulties A small amount of
United States currency is In circulation, but
| ii is in bills in denominations of SIS and up
ward, these are large enough to COM
mand the regular exchange, which varies
from 7l5 to 8 per cent. One-dollar and two
dollar bills, when they are taken pass mere
| ~ as the equivalents of the Spanish pesos"
or silver dollars.
The small shopkeepers and the laboring
population are still ignorant of the values
of American silver coins. In the cafes they
are distrusted, and the cabmen will not ac-
cept them. When large. payments have been
made to the soldiers this silver is certain to
| be forced into circulation, but the relation
which 1t will bear to the Spanish coins is a
| puzzle. Though very large amounts of silver
| have been taken back to Spain by the Off
| GERS and the officials, the fear that no silver
| would be left in Cuba has not been realized.
| At present the value is rising slightly, due
| to further depletion by the departing Span
iards. but enough remains TO answer the