The evening times., 1899-01-21

on the currency question of Porto Rico.
The recommendations in the report were
concurred in by the Secretary of the
Treasury, and the matter was brought to
the attention of the Cabinet meeting yes
terday afternoon, and the following eXecu-
tive order issued as the result:
Executive Mansion, Jan. 90, 1892
Ii IS hereby ordered that and after February
l, 1898, and until otherwise provided. all GUS
TOMS taxes. public and postal dues in the Island
of Porto Rico shall be paid in United States
Spanish alphonsnos (Centen) and the French
louis, which will be accepted IN payment OF
the following rates:
AIphon-ncs (2j-cent peseta piece ..--.-..--S4s2 50
Louis (20-tIanc piece) ACKNOWLEDGEMENTS $50
Il is further ordered that and after Febru
airy /, ls99, and until further provided the fol-
lowing Porto Rican Spanish silver coins now
ia circulation in the Island OF Porto Rico shall
be received for customs taxes, public and postal
dues, at the following fixed rates IN United
States money:
The medic peso O@o
The pesetn ul2
lhe real '''''.''''... uvo
The medic real ACKNOWLEDGEMENTS. OB
1t j. further ordered and directed that out
Of the Porto Rcan coins received convcn-
lent supply shall be retained and carried for
exchaIi-t ter United States money, at the rate
hereinbefoTe enumerated, namely: 500 United
states money for one Porto Rican silver piece.
II Is further ordered that all existing contracts
for the payment of money in the currency OF Por-
to Rico may be discharged and paid in that
money in accordance with the contracts or IN
United States money at the relative value set
forth in the above table, namely, 500 United
States currency for l66 2-3 Porto Rican pesos.
Bronze and copper coins now current IN the ISL
and of Porto Rico viii be received at their face
value for fractional parts OF a dollar in single
pavrneut to an amount not exceeding twelve cents
| lone peseta) WILLIAM MCKINLEY.
mits several statements and letters on the
| subject from New York and Porto RICO
! merchants and bankers
! The writer's OF several of the statements
submitted propose that the United States
! should squeeze the imitation out OF tie
| silver, substituting United States money
| Tor Porto Rico silver and let the people OF
| Porto Rico pay the cost on the Install
| nent plan, with interest added.
Says the Commissioner: In the case
| of Cuba the imitation was, at the most,
question of 10 per cent, and. in fact,
| fictitious value of but 6 per cent. Those
who advocate continuance of this inf1a-
| tion for Cuba by means of premium on
| gold frankly admitted that whichever
way the Treasury Department settled the
| question it would have little or no effect
| upon current transactions"
Commissioner Porter suggests the fol-
| lowing plan OF dealing with the Porto
| Rico currency
/ a Make American currency the legal tender OF
the island, admitting besides IN the payment OF
| taxes. ctiStom-house duties stamp revenue, ana
all kinds OF public dues, the Porto Rican SILVER
| pesos at the rate of $3.50 United States money
| (2) People should bc free to contract in which
| ever moneys they choose whether American or
Porto Rican. but Notwithstanding this freedom
the peso would not be worth less than S0.69, be
| cause the United States Government would ac-
| a that and could neither raise
| above that because the United States would be
ready to issue it to the public for SOG0
| (3) The objection to do away with all The pres
| cpt Porto Rican currency, exchanging it tor
| American silver is, You have most aptly stated,
| that the day laboreTs not likely TO perceive
| the difference between the intrinsic value. OF
mint value of a coin. and its monetary par value
as a division OF \ gold coin No amount of rea-
| oning will convince them, and the only effective
object lesson must be the constant and long-con-
| timed taking and giving OF the peso by the au
| thOrities at the specified rate Of 5000
(D This rate has been reached by calculating
the average of the rates OF exchange for the
| last five years. leaving oil, as would seem 10 DE
fair. the period of
(5) Ii is also fair medium between the oppos
ed claims of the different classes of people. each
of whom, testimony taken on this occasion
clearly shows, is biased by his own particular in
terests Finally it comedies with the value as
signed to the Spanish silver coins in Cuba.
90 There will always be advantage foi
United States coin, owing to the fact that the,
can be used for expectation, while the Porto Ri
can cannot
"a II inhabitants of the Island of Porto Rice
should prefer American currency, it is hoped
they will, the pesos will find their way tC
the United States Treasury, and thence to the
mint at their bullion value, and it will he easy
to dispose of them gradually afterward Ii pesos
are preferred and asked for them thar
should be in stock at our fiscal agencies, thi;
could be met by tine coinage of 6Dcent Ameri
can silver piece, equal in size, weight and mint
value to the existing Porto Rican peso
(s) Excellent authorities on Porto Rican finance
do not think, however, that this contingency Il
likely to occur. II at present, with scsnty
presence of the United States coins, the $500
900 of Porto Rican silver amply supplies tho
monetary necessities of the country, may we not
expect as soon as the payment IN United States
money of all government officials and expenses
introduces additional currency into the market
that there will be sufficient without the introduc
ton of new coin? Ii is easy to see, however
how the authorities, to issue such coin, would
act as a sort of safety valve and prevent specu
lation in the Porto Rican silver peso.
II the acceptance of the Spanish dollar
in Cuba at valuation of 60 cents and
fractional coinage at the same relative
value to be used in the payment of Gus
toms, taxes, and postal dues, was wise
measure to prevent sudden deportation
Of silver coin from that island, why viii
not the same policy spread over severa
years bring the people of Porto Rico dowr
| to an absolutely sound currency with les!
friction than the sudden change proposed
by those who simply look at the currency
side of the question? To those who ask th
question, why make two bites at a cherry
the answer may be given that, unlike
| Cuba the currency OF Porto Rico is yer,
much more than a mouthful.
/ ;sif