New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-07-26
COSTA RIGA PAYS HER DEBTS.
GOLD IN CIRCULATION AND COUNTRY
TRANQUIL. SAYS PRESIDENT
-ESIAS
IGLESIAS.
rBT TELEGRAPH TO TIE TR1BuHz.I

IBT TELEGRAPH TO TIE TRIBUAEl
Washington. July 25.-Dr. J. B. Calyo. the
Costa Rteau Minister. has received the follow
ing cable dispatch from President Iglesias:
Gold in circulation; country is tranquil and
satisfied IGLEsIAS-
Costa RIGA was formerly a gold country, but
difficulties beset the public treasury in lSS2
owing TO the loss Of entire crop Of coffee
which is the principal staple Of the country,
with perplexities and injuries flowing from the
loans Of 1871 and 1872. and the republics dep
rivation for ten years Of great part Of the
public revenues, which were appropriated to
the construction of the Atlantic Railroad, and
the national notes then in circulation caused
the withdrawal Of gold coin. which had always
been the ordinary circulating medium in that
country
The Government desiring TO assure the
demption Of the national notes, concluded a con-
tract with OF the banks in October, 1884,
through which the exclusive issue of the banks
notes was established, but the effect of this
transaction, which increased credit without
guaranteeing ii, caused the final outflow of gold,
Pursuant 70 the contract, the issue Of the hanks
notes in 1891 reached So 257. 400. and cor
respondingly in the same proportion this issue
increased the rate OF foreign exchange ad-
vanced, and, as was the case with gold, silver
began an outward movement Later came the
great fall Of silver, and with it the normal rate
OF exchange disappeared In Costa Rica, where
in former years the rate had never exceeded 10
per cent and frequently reached the minimum
Of per cent, it kept going up at alarming
pace In 1891 it rose in the short time Of two
and one-half months from 81 TO 115 per cent.
In 1892 II reached 10 Ecr cent and some times
in the following yeas went UP even TO 200 per
cent. These violent fluctuations have been the
cause Of losses to commerce and of instability
in all the business of the country. The Govern
nent, after carefully studying the situation, di-
rected its attention especially 10 the nature Of
the circulating medium. since money, as the
representative Of capital jointly with property
and labor makes up the permanent elements Of
wealth.
REFORM OF MONETARY SYSTEM.
The first period Of President IgIesias's Ad-
ministration was entirely devoted 10 promoting
the economical conditions of the country. and in
October 1896, a law for the reform OF the none
tsry system was enacted by Congress at the
initiative Of the Executive. A new contract
was entered into with the bank. by which
it relinquished the privilege OF exclusive
issue, the Government TO supersede the bank
notes with gold certificates. issued al par Pur-
suant 10 this plan. and being at the time the
actual value Of silver dollar 46.5 in gold,
new coin was created, called the colon, with this
value and adopted as the monetary unit, thus
avoiding any possible disturbance in existing OBJ
legations or the price of articles, the gold colon
and the silver dollar being the equivalent OF
each other.
During this period. 1896 1900 the Government
accumulated a gold reserve amounting 10
So 600 OOO by virtue of which, jointly with other
economical measures. il succeeded in bringing
down and ,normaIzing the rate Of exchange.
Besides this gold reserve, it has about S16O0OOO
in subsidiary silver coins. which gives about SIG
in gold per capita. or $50 per capita OF the Wis
ible supply Of money in both metals This
amount and the authorized issue Of notes from
the banks, at 65 per cent Of capital paid, reach
ing about 100000, aggregate $S,600.000, or
S2S 66 per capita the whole amount.
Economical conditions in Costa Rica having
improved especially in the last few years. owing
to the efforts and wise policy OF the Administra-
ton, this reform completes and strengthens the
basis Of a new era Of prosperity and development
of the country.
From 1894 the beginning Of the reform, up
TO the end Of the year 1899 the value Of the
products exported from Costa Rica amounted 70
S31 953 ,015 in money Of the United States, and
OF the imports 10 S26 632, 442 leaving So 321,5I3
mining interests having been greatly increased
and foreign capital largely invested, the COM
merce. especially with the United States, prom
ises TO grow to a more important extent.
The receipts and expenditures Of the National
Treasury in silver IN the last five years have
been as follows:
Receipts Expenditure surplus