New-York tribune., 1901-06-02
COMPLEX MONETARY SYSTEM.

Il Is an evidence Of the adaptability OF Ha-
vana merchants that they manage 10 conduct
their business under the complicated system OF
exchange which necessarily prevails with two
monetary systems Probably they would not be
able 10 do so If they did not have gold as the
basis OF everything. But. II is, the incon-
venience multiplies. and the gravest problem or
the future is get rid Of the inflated valuation
which the Spanish ami the French gold CONS
have had since the royal decrees OF spanish
sovereigns gave them artificial value. This has
served we'll enough for keeping gold in circuia-
ton in the island, and. while silver has been the
common medium OF domestic circulation. II al
ways has been as subsidiary coinage ana not on
a parity with gold. That is one reason why the
silver coinage has not huctuated widely.
An illustration OF the Inconvenience OF @ @the
existing multipIex system may be seen from the
daily quotations Under the valuation nNeu DS
President Mckinley, when full American con
troll OF the custom house was assumed the Ioi-
lowing tables appear daily In the financial col
umns OF the newspapers, with VARIATIONS III 'il'i'
relating to the money market:
UNITED STATES CURRENCY,
cen,enes Gspanish),.s5 :, go gold & piece; !, 8 81
Spanish Spanish syef@sl piece cents piece 80
MONEY MARKET.
silver from y IeH 70 81 7ah
fuisea 527 to 52s.
American gold against Spanish gold 07s TO 10 per cent
The American dollar against Spanish gold. 1oc7s
American gold against spanish silver S6 til to ad: as 70
1907
1t might all be explained by saying that the
variation in the premium on American money
In bullion value of the Spanish and French gold
coinage. The rate of premium and New YORK ork
exchange varies from S1s per cent TO 10 per cent
according to the volume or trdde anu the HlpEc-
ment of the sugar crop
The Spanish silver enters a third ele-
roent of uncertainty for in the ordinary transac-
Ito Of Is measured against
centenes and French lOuises. 1t was supposed
that after the American control the spanish
silver would disappear from circulation Thls
has happened in the eastern part OF the island,
but in Havana and in the central and western
provinces II Is still in common circulation, With
In few months some Spanish silver mas oeen
brought from Spain. but according 10 the pahk-
ing houses which imported 1t this was spas
modic movement due to special causes, ana Is
not likely to continue That the Spanish silver
will entirely disappear from channels or trade
until 1t Is called in and recoined under some
government authority does not now seem proba
BILE 1t Is part of the broad problem of readjust-
ment Of the financial system OF Cuba which Is
the task of some future government.
There Is much significance in the desire of
the Spanish business colony In Havana, which
seeks TO preserve trade relations with Spain, to
have American currency made the OASIS Oh all
transactions That is going to he done at some
time, but the intermediate steps are SUN per-
picking and uncertain. The measures proposed
for doing this are numerous. Most OF them are
impractcable because they undertake TO pre-
serve the initiation in the Spanish and French
gold coinage. Others simply propose 10 nave
the governmental authority make compensation
for the difference between the bullion value and
the inflated value, but they are not agreed as to
how II shall be done, and until a permanent
form of government is established in cuba the
commerce of the island will have TO suner from
the present complicated monetary system.
Should there be a Cuban government within the
next year or So and should the responsibilities
of the United States for the collection OF the
revenues of the island cease the new govern
ment might decline to recognize the basis of
I,ar da7t Mo n
but the greater probability is that it would
undertake to preserve this basis as a means
OF self-protection 1t is also significant that
the National party so-caed. which is the
most robust political organization, and which
seems destined to control the politics of the
island in it's platform of principles adopted in
February last declared unequivocally in favor
of the gold standard the basis of the Cuban
monetary system.