Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-31

cents postage on letters to Cuba, and that
the allowance is half an ounce instead of
an ounce. for everybody who receives let
tiers from the states usually finds them
plastered with deficiency stamps including
the fine of double the amount of postage
which is inflicted on the receiver. A letter
starting from the United States with
2-cent stamp and which is a fraction over
weight generally costs the receiver in Cuba
16 cents. Business houses who have the
delusion that trade is secured by sending
circulars in sealed envelopes are the grea.-
est sinners in this respect.
1t induces an unusual amount of profanity
even on the part of capitalists and mil
lionaires to pay 10 cents extra postage on
bulky letter and then to discover that
one has been victimized by the trade cir
eular. Small as the affair is in itself, the
annoyance of the disjointed postal regu-
lations is one of the means which influence
sentiment in favor of uniform hnanclal
system.
American tourists who at this season have
come down upon the island like swarm
of bees. COMPLAIN most of the petty eXac-
tionS to which they are subjected in chang
ing their money but that is one of the ex-
periences which make Cuba different from
Florida or southern California, and Is,
therefore. worth enjoying If the tourists
try to pay small change in American
money they sure to be cheated. and In
foundering about with the Spanish coins
they also suffer.
A Novel Experience.
1t is somewhat novel to go into cafe
or restaurant and buy cigar or drink,
tender American dollar in payment and
receive back Spanish silver dollar and some
small change In addition; yet the transac-
ton Is not a profitable one, since the full
value rarely is received The fluctuations
make the American dollar worth from 81 80
to S1.35 in Spanish silver, but the Ameri-
can visitor usually is fortunate If he re-
ceives Sl25. He is in Cuba to be plucked,
and the complicated monetary system is
one of the means of plucking him.
The two standards which prevail are not
the only variations in money transactions
in Havana. In local commerce some pc
culiar trade customs exist which antedate
the American occupation, and which have
nothing to do with American currency. The
man who wants to rent a house or buy
horse Is given the price in onZas or doub-
Icons. This Is a long established custom,
and the majority of leases are drawn up
fixing the rent at so many onzas per month.
The rash American who has decided to
adapt himself to the customs of the coun-
try and carry on his business in the money
which heretofore has been a circulating
basis never can understand why the amount
of his rent cannot be fixed simply in Span
ish gold but custom has decreed 1t other
wise, and he must settle In onzas Just as
he must do in making horse trade.
In the sugar market another trade Gus
tom is found. The quotations, which usual
ly are for arrobas, or lots of twenty-five
pounds are made in reales. The real is the
Spanish dime, but in the sugar trade the
real fuerte is meant, and this Is 12la cents,
or the shilling, it would be called in
some parts of the United States. The Cali
fornian would calculate it easily because
two bits would be two reales fuertes. PO-
tatoes also are sold on the basis OF reaies
fuertes, but onions and other vegetables
are calculated on the decimal basis.
Complications Must Cease.
In It's broader sense the whole financial
system of Cuba is beginning to receive at
tention, because the feeling has grown
among the merchants and the financiers
that in time the present complicated ar
rangement must end. The Cuban constitu-
ton which is now under discussion has
provision giving the congress power to
coin money and fix the value thereof, but
L do not think the establishment of a Gu
ban mint is in the immediate view of the
constitution makers, even OF the most rad
ical of them, who want to put that instru-
ment into effect at once.
The real question is how far the Ameri-
can monetary system has impressed itself
upon the island SO that it may become the
basis of the future standard. That it has
made rapid progress without becoming gen.
eral supersedng the Spanish and French
coins in circulation l have indicated. Since
the American bills or notes have become
known and everybody understands that
their value is equal to the gold coins the
popularity of the American currency has
grown. However, 1t has another side. One
delegate to the convention told me that
free Cuba could sustain the same kind Of
currency. This was a little startling until
another member controverted him and de-
clared that the coinage clause would not
authorize paper money, at least not until
Cuba got into war. This member thought
the United States double eagle was the
handsomest coin in existence and he wants
a Cuban mint which will emit only double
eagles, eagles and perhaps smaller gold
coin. He IS afraid Of silver in any form.
The great obstacle to securing a uniform
financial system naturally lies in the in
fated value Of the Spanish and French gold
coinage. Every banker and every great
merchant in Havana believes that the time
must come when the initiation will have to
be punctured and their bullion value be
taken as the circulating basis, yet not one
of them can see how this Is to be done.
The banks all agreed when the American
financial standard was officially established
by President Mckinley that they would pro-
tect their depositors and would repay them
on the basis on which the deposits had
been made, which was the inflated Spanish
basis. They are bound to do this, and no
question of their ability to do 1t need be
raised. But the main question Is regarding
the method and the transition to a finan-
cial basis. which will not give an artifl-
c1al circulating value to gold.
Spanish Silver.
Spanish silver furnishes less of a prob
ieII. LIS circulation Is sui quite general
and 1t Is the medium Of retail trade 1t IL
also circulating considerably above It's bull
lion value, and Its drop has not been what
was predicted at the time Of the American
control. But its gradual disappearance I'M
der the natural pressure of trade can be
counted on, though at present In the 1nan-
cial columns Of the newspapers 1t Is COM
mon to see the Spanish centens, French
Louises and American currency quoted in
Spanish silver. This inversion Of the real
relation is a mere convenience. for the
gold really measures the silver, which ia
subsidiary. The only thing Of note Is that
for nearly two years 1t has been NAH
tanned at a stable valuation.
When the monetary standard is fixed on a
single basis instead Of on a double or triple
one it is the prediction Of business men
that Havana will take more kindly to mod
ern methods, and checks will be substituted
for cash transactions. At this time about
80 per cent of the business OF the city. the
volume Of which Is enormous. Is done IN
cash. The banks are slowly taking to the
system of checks, but one drawback is the
complicated mediums Of exchange. The
American financial institution which Is es-
tablished In Havana makes 1t matter of
bookkeeping and receives deposits and
checks out on a threefold basis Of Ameri-
can currency, Spanish and French gold AMI
Spanish silver. 1t is a matter Of internal
arrangement between different departments.