Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-31
Am ERICAN MONEY
It is Rapidly Getting Place in the
Circulation in Cuba.
COMPLICATED FINANCIAL SYSTEM
Various Vacations Which Are Due
to Its Ramifications.
~
INSTANCES AND INCIDENTS
INSTANCES AND INCIDENTS

INSTANCES AND INCIDENTS
Copyright, 1000.
Special Correspondence of The Evening Star.
HAVANA, January %, 1901.
One form of Americanization is making
definite progress in Cuba. 1t is defying po-
litical uncertainty and political agitation
This form of AUGMENTATION Is money
The financial system of the United States
is getting stronger foothold every month
Not long ago the merchants of Gibara ON
the north coast, petitioned for the use of
American gold and American currency to
the exclusion of all other forms of money.
This action was due to local causes and it
should not be accepted in too broad sense
Yet it is an outcropping of what Is going
on underneath the currents of politics and
commerce.
Spanish money is still the predominant
circulating medium throughout the island
as a whole, but every one who is engaged
in business notes the gradual change which
is coming about partly through natural
causes and partly through the action OF
the American government in fixing the
monetary standard which was to continue
during the military occupation on the Dasls
Of the United States. In eastern Cuba
United States gold. currency or SILVER CIR
culates almost exclusively. An American
who was making trip and who TOOK notes
as he went, told me that from Nuevitas Oh
the north coast until he got around 10
Cienfuegos on the south coast, practically
| no Spanish money was In use Local deal
ers and merchants everywhere did not care
| to receive the Spanish centens or golo
pieces and they would positively retnse 10
take Spanish silver in small transactions
There is a reason for this condition. I'm.
| mediately after the American occupation OF
Santiago, which began six months earlier
| than in other parts Of the island, there was
a great scarcity Of Spanish gold and silver:
In the uncertain conditions which obtained
| 1t was shipped away and practically no cir
culating medium existed, except such as
came from the United States for the pay
| ment Of the troops. For time there was
almost a financial vacuum. Then enough
American money began to come in TO an
swer the purposes of trade, and When the
Spanish coins reappeared nobody cared to
take Them So it has happened that the
pesos americanos, or American dollars, be-
came current In all the coast towns ana
their circulation spread westward TIL they
reached the center Of the island.
Amount Hard to Estimate.
1 have tried to get estimate of the
amount of American money which today
actually is in circulation in Cuba, but the
estimates of the bankers and of the dis
bursting officers of the army vary SO wide
ly that to give them would only cause
confused notion The agreement is general
that the three million dollars which was
paid to the insurgent troops did remain In
the island, and much of 1t found its way
far into the Interior where previously moth
ing had been known except Spanish silver
1t is also agreed that of the disbursements
to the American troops fair proportion
has got Into circulation, some of 1t in the
form of actual investments, but the larger
lsportion simply through the channels OF
local trade. The steady growth of com
merce with the United States is helping in
a way, but Cuba's industrial condition is
still too crippled for a general movement
of that kind to bring in a large amount of
American money and keep it here. This
years heavy sugar crop is going to be an
aid because it will enable the planters to
meet their obligations in New York and
still have balance in their favor, which,
in some instances, will be settled by the
actual transfer of currency to Havana.
The effect of this condition already is seen
In the fall of the rate of exchange.
Besides this benefit the increasing volume
Of American investments In Cuba is bring
ing further sums of money and some of
the banks are adding to their stock on
that account. Americans who make invest
ments want to carry on the whole trans
action in the money with which they are
familiar, and the banks find it an advant-
age to accommodate them instead of put
ting them through the complicated process
es Of the ratio between Spanish gold and
United States currency. Some money like
wise Is being sent from the states to be
loaned out. One financial institution
brought million dollars for the accom-
mediation of the tobacco planters and the
will stay in the island.
Gold Energies From Hiding.
While 1t is difficult to determine the
amount of American money in circulation,
1t Is an impossible task to estimate approx
imately the amount Of foreign gold which
Is in existence in Cuba, for one reason be-
| cause much Of 1t Is not in circulation. The
| chief cause of the island weathering the
| financial distress of the insurrection and
war without financial panic was the ex-
| tstence Of this money and the further fact
| that business always had been done largely
| on cash basis. The foreign gold was in
| the form Of Spanish onZas or doubloons,
Alfonsos centens, and louises or French
| twenty-franc pieces. Americans are most
| familiar with the centen, because its value
| is few cents under that of a IS gold piece
| or SIS bill.
| After the war the gold which came out
| from hiding places in the greatest Quanti-
| ties was the onza or doubloons; but there
| was also an unexpected supply of louises.
Though the explanation frequently has
been made, 1t has to be repeated that these
| Spanish and French gold coins circulate
above their bullion value having been in
| fated after the Spanish method by royal
decree Because Of this artificial value
Cuba never has lacked an abundance of
gold circulating medium
|
| the value of Spanish and French gold and
| Spanish silver was fixed in SO far as re-
lated to the customs duties and other gov
| eminent transactions The centen was
| valued at $4.S2 and the louis at $3.50 in
| American currency, while the Spanish 81
| yer dollar was fixed at 60 cents and the
minor silver coins proportionately
| In paying their customs dues the mer-
chants could either procure American cur
rency or pay in Spanish and French gold
| or Spanish silver at the rate fixed. Com
merce has accustomed itself to this CON
dition. but in practice its inconvenience is
marked: By this practice the island treas
| ury under the military authority accumu-
lates a certain amount Of Spanish ana
| French gold, and at stated periods Major
| Ladd, the treasurer. holds an auction and
disposes Of the accumulation.
Purchasers Always suffer.
The inconvenience Of the twofold, or,
rather, the triplicate, financial system is
felt seriously in the little details of busi-
ness, and the purchaser always is the suf-
ferer. In official matters probably more
complaint arises from the application OF