Evening star., 1899-03-24

of falling to it's bullion value Last Octo-
ber Americans in Havana changed an
American five-dollar bill for eight dollars
in Spanish silver. Now they get anywhere
that much. In the meantime the purchas-
ing price of the Spanish silver has not in
creased proportionately. At the valuation
established by the United States $5 in
American silver ought TO buys$s in Spanish
silver. But every one knows from expert
ence that it does not AN American, silver
dollar brings $1.30 in Spanish silver. some-
times penny or two 'more,s sometimes a
penny or two less.
Much difference of opinion exists regard
ing the amount whicn remains in Cuba
Last November asked, thes head of one
of the Havana banking HOUSES how much
Spanish silver was in the, island. about
nine million dollars" He said That day
an American $5 bill broifght 6Ally ST. 20 and
the banker explained that thesSpan. rds re-
turning to Spain were tai ns great guam
titles of silver with cifeiii I'D that the
amount in Cuba would lie seriously de-
pleted. 1t was becoming sCarear. nc said
and, being needed in commercial transac-
tions, was therefore dearer. At that time
very little American money had ben pat
into circulation. Recently I asked the
same banker how much Spanish silver
there was in Cuba. Close to nine million
dollars he replied.
Silver Steadily Getting Dearer.
In the meantime American money has
been getting into circulation. Yet Spanish
silver had been steadily getting dearer 1t
is also certain that three or four million
dollars in Spanish silver was taken out by
the Spanish officials and soldiers, and ship
ments have since been made regularly by
the commercial and banking houses On
my calling the bankers attention to his
estimate in November he replied: Yes
l must have been mistaken in the amount
ant ic tIarn iC rv1nn l..
island than we ourselves supposed"
He did not venture an opinion whether
the Spanish silver would gradually oe
drawn back to Spain or whether a few
millions of it would remain and some day
drop to the level of the Mexican dollar.
The Havana bankers and financial houses
have been little disappointed that the
United States authorities did not arrange
to pay the insurgents in Spanish silver.
When the suggestion OF payment was first
made several of them volunteered the opin-
ion that the s3,000,0OO would go much fur
ther if it were paid in this manner They
pointed out that this was the common me-
dunn of exchange with which the people
were familiar, and moreover. that if the
payment were made in Spanish silver each
soldier would receive in the neighborhood
of s13O instead of 800 This would have
been so If American currency could have
been exchanged on the basis then prevail
ing.
But the demand for more than $1,000, 900
Cl spanish silver or nearly half the quanti-
~ known to exist In the island would have
sent its value up. The bankers and ffnan-
cial houses would have been able to repeat
the profitable transaction they had in deal
ing with Spain. When Spain was getting
her troops out of the island on two or three
occasions she raised sums of one to two
million dollars These were put on deposit
in London and Paris and the captain gem
eral drew against them in silver. When he
came to require such large amounts of the
white metal its value was appreciated ma
terially. The banking houses which fur
nished the silver and accepted the London
and Paris drafts made extremely handsome
profits. The disappointment because the
United States has not been drawn into SIM
liar schemes is rather keen. However, they
are glad to see the American money COM
ing, for nobody knows better than they
what it means to have such a large sum
put in circulation at this period.
OF the s3,O00,000 one-half is in silver That
is certain to get into immediate circuia tion
1t will be used in course of time in paying
customs dues and in other insular COM
mercial transactions. Its effect on the
Spanish silver coins may be to cause tenn
porary confusion. But the ultimate result
will be good for the United States and for
Cuba. CHARLES NJ PEPPER