The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1898-08-10
GAGE' SCHANCE CONES
If He Can't Plan For the Con-
quest of Porto Rico.
HE CAN DO NEXT BEST
And Devise Currency Schemes
For the Island.

rapidly that the administration is al
ready beginning 20 consider various tea-
lures of the civil administration which
will follow the provisional or military
makeshift- II is probable that the presi-
dent. in his message TO congress which
announces the final peace settlement and
the fruits of the war, vii suggest various
measures for enactment into legislation,
including one for recognizing the coin
age and currency system OF Porto Rico.
Many persons have jumped to the con-
clusion that as one result Of our conquest
of that island we should simply force cur
currency upon the people living in the
newly annexed territory. regardless OF
any inconvenience caused by such a
course. Against this notion not few
protests have been made. A letter from
Mr.. H. c. Fritze of the Fritze-Lundt Co.,
of Ponce-an old and responsible house
to a correspondent in New York, contains
the following passage:
1T cannot be in the interest of the
United States to create any ill-feeling
among the populat ton of Porto Rico by
such an heroic measure. Considering that
payments on all transactions in real es-
tate sugar estates, etc, are made dur
ing the term of many years, and that
commercial transactions are settled not
under a year to a year and a half, there
cnnot be any doubt that such a step
would bring bout a serious crisis. The
new government cannot begin by enrich
ng one part of the population and ruin
ig the other part. Some way betwe the
two extremes ought to be settled, and
the interests of all ought to be considered
All transactions 50 far have ben made in
the currency of Porto Rico. Our silver
may be melted up to the amount neces-
sary for our daily operations, say one
million, and this part should represent
Porto Rico currenc y as heretofore, and
should remain so for sereral years. 1t
should be prohibited either to export or
import it.: Then American gold and sill
yer may be brought here and circulated
but with the condition that it shall have
a 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 f1uctuated between 60 and
rs percent; at present the rate is extreme
owing to the war.
"a fixed rate of rs 5or so per cent pre-
MUM on American gold or silver would
in my opinion, be the right thing. All
transactions may then be settled accord
ing to convenience in Porto Rico currency
or in the United States currency. 1t would
not take many years before all new bust
ness will be done in United States cur
rency, and thus the whole question will
settle itself. Any loss resulting from he
melting of Porto Rico silver should be
written OF gradually by an increase in
taxes. to be paid by Porto Rico five or
six millions only having been coined.
The agricultural population would further
have the benefit of the premium on gold.
of which it is in absolute need, until the
whole people, including the eagricultur-
alists, have gotten accustomed to the
lower prices in gold in their purchases
and sales and the lower wages in gold,
and till in a few years the Porto Rico
currency will be done away with alto
geter."
This was shown to the secretary Of the
treasury by your correspondent, and his
opinion of it was asked.
ut is a statement of fact rather than
a plan of operation answered Mr.. Gage,
land is undoubtedly just in it's presenta-
ton of the difficulties of the situation.
A number of plans have been submitted,
and will be duly considered before the
time comes for ta1ing up any of them"
The secretary himself has a practical
idea which he believes would solve the
problem very satisfactorily. The Porto
Ricans have a silver coinage of their
own, minted in Spain, amounting In vol
ume-as stated in Mr.. Fritze's letter
to about 5000, 900. The secretary would
take measures to call in this coinage, and
substitute for it, piece for piece. coin
age bearing the double inscription The
unit Of the Porto Rican coinage is the
silver peso, which corresponds to our
dollar as nearly as may be. At its present
bullion value 1t is probably worth some
thing more than forty cents. Assuming
its value to be about fifty cents, the sec
rotary would isue coin OF the value Of
the peso, stamped on one face with the
legend = peso. Porto Rico" on the other
side, so cents. L. s A.
There are four general interests TO be
considered in framing any new currency
system for Porto Rico; the creditors. the
debtors. the wage earners and the prizes
Of commodities. Mr.. Gage believes that
his plan would satisfy the Just demands
OF all OF these. The violent fluctuations
of exchange would be avoided in trans
actions between debtors and creditors II
the United States and Porto Rico: The
standard OF value would remain undls-
turbed, every American who had lent oze
peso would understand that that meant
fifty cents. and every Porto Ricaa whos
was charged with a debt ot fifty cents
would understand that it meant one peso.
The wsgs-earnsT. who could not Be tx
pected 70 mastr the subtlet.es OF finance.
would stIu be paid his one peso DAY.
but or the other side OF the coin he would
have its American equivalent, and would
thus gradually absorb the theory q thei-
Interchange vaIees. The same rula
would apply 10 a. branches O: trade.
where the value Of comedies and their
prices would soon Dc adjusted 20 the cev-
rency systems Of both countries For taa
larger commercial transactions OF course
god would be used where coin had 20 Be
transported bodily 10 iiqul6ate balances
Il exchange For this purpose = woala
be practicable. II TIE sscretzry's op.aioz.
% Introduce 4 gold coin stamped Or Szs
side . pesos. Porto REQ aid o. tbs
other 20 dollars. L S a" I'd 50 CT
This arrsagszrezt Eoa-d. o. course. D.
Only a temporary device 20 bridge ovez