New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-12-07
Decrease.

I United States. Porto Rico and Hawaii and the
| coasng trade OF those islands to vessels Of Ame-
| lean registry.
! These propositions drawn from the current
practices Of maritime competitors. They can
| be put into operation promptly upon their enact
ment. They will raise diplomatic difficulties.
delaying action and involving in prolonged dis
cusslon OF commercial retaliation. They
will not raise political questions upon which parties
as now constituted. may divide They believed
to be entirely adequate 10 our needs. The details
Of these propositions discussed in the report of
! the Commissioner of Navigation in which are also
to be found statistics upon the subject
THE FINANCES OF PORTO RICO.
An important question. which will doubt de-
mand consideration in Congress AT an early day. is
! the money situation In Porto Rico. The existing
| currency OF that island consists OF silver coins
| known pesos and centavos. The peso is OF the
weight and hneness Of the Spanish piece OF five
! pesetas and corresponds in both respects 10 the
! 5-franc pieces OF the Latin Union. It's bullion
| value compared to the bullion value Of the Ameri
| dollar. Is 935 is TO 100. The centavo is one
| hundredth Of a peso and the smaller coins consist
! Of pieces Of % centavos and 40 centavos these
being the exact counjerparts in weight and fine
Of the Spanish pieces OF and pesetas and
! the French coins Of and francs.
The Porto Rcan coins bear no fixed relation 70
gold, not being anywhere redeemable in the yellow
coin They introduced into the island by
! Spain in 1895 and by forced exchange were sub
sttuted for Mexican coins which had previously
constituted the principal money medium. The best
estimates obtainable place the volume ~ this silver
money now circulating In Porto Rico al $4,000
pesos The fact that the Spanish Government put
the same quantity OF fine silver into the peso as It
did into the 5-peseta Spanish coin indicates
I purpose TO have maintained the two parity.
II so. the purpose not accomplished; the Porto
| Rican coins quickly fell below the value OF the
coins OF the home government. and have since had
no established relation in value them The
oscillation in value related gold been
| constant. rising and falling. affected by the
state OF exchange between Porto Rico and its for
elgn markets.
1t is unnecessary here 10 point out az any length
the general evil results upon industry and
merce OF a currency medium out OF harmony
with the worlds money induce a widely
fuctuating rate OF exchange II may be instructive
to consider them as Illustrated in Porto Rico
Situated that island IS. with circulating
medium void Of any established relation to the
worlds money Of comInerce-sOld-it is exposed. 70
the fullest extent. to such evil results. A brief
statement Of facts will make this apparent. Dating
back TO 1884 the peso has oscillated In its power
to buy sterling bills London. or bills on New
York payable in American money. follows: In
1891 the average value OF the peso thus tested was
1915 cents in 1895 II was CO 49, in 1896 II 1896;
In 1887 II was COLO: in 1895 II $50 But these
averages by means represent steady. continuous
fuctuaton has been wide. The limit OF this
huctuaton was. 1894 is per cent in 1895. 20 per
cent In 1896. 10 per cent: IN 1897. II per cent
Upon this wavering. uncertain. variable money
medium the commercial and industrial affairs OF
the island have been conducted. The determining
influence upon the value OF Porto Rcan money
seems TO have been the state OF the foreign
Changes When exports OF island products-sugar.
tobacco and cofee-were large. the desire to
vert the value Of these products realized abroad.
into the domestic money. creating il did
extra demand for IT, caused the peso rise. or.
what is equivalent. II caused exchange 10 fall.
From whatever point viewed the result the
Same in its effect upon the producer-he was de-
prived OF Just realization his products. This
unfortunate currency condition was tax upon his
enterprise and industry.
Contrariwtse, when foreign bills were not in sup
ply. because crops had been marketed and when
those engaged in importing wares and merchandise
from abroad under necessity OF settling their
accounts in London New-York. the Offering or
domestic money 10 the bankers and brokers In
exchange for drafts London or New-York In
creased In volume exchange rose in price. or. what
is equivalent the peso fell In it's power 10 exchange
for the worlds money.
Whichever way looked at. the effect was the
In raising 70 the merchant. and through MIN
10 the customer the cost OF all products purchased
abroad The domestic and the wage-worker were
the unconscious but the real victims OF these
financial arrangements The only benehciares