The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-07-21
THE SITUATION IN CUBA
Lack of Reciprocal Relations Not
Wholly Responsible.
MONEY CONTRACTION CAUSES TROUBLE
spaniards Said to Have Taken Money
Out OF the Country--A Suggested
Solution.
Especial to The post)

Especial to The Postl
New Orleans. July GA special from
Havana says;
Havana, July 19.--The responsibility for
the panic now threatening Cuba is not
wholly due TO the lack II reciprocity for
agricultural products with the United
States, although such is the cause to which
the planters of the islands, as we'll as those
dependent upon them attribute IT,
The financiers. who have looked condi.
lions squarely In the face and have sought
for all the causes, believe that they have
found IL In the unprecedented contraction
of currency which began with the ,revoiu.
tion In 1895, and which has increased with.
out cessation, ever since.
With the revolution came mortgages OF
such proportions that many OF them were
never paid, nor can they be. These mort
cages were given by the planters of the
Western and Central provinces. who were
uncertain as 10 the outcome of the war
and who feared to risk the consequences
They wanted money with which TO take
their families out OF harms way and also
TO protect themselves against possible de-
yastations. Their families and funds were
still remains. Four years without income
in foreign country and With great spend
ing propensitles depleted many of the
fortunes which left Cuba.
Havana was fun Of wealthy Spaniards
in those days, who believed that the power
of Spain ~ the West Indies could never be
broken They realized At once the great
opportunity opened Ia them They Invested
largely In these mortgages, at compare
lively low rates of interest trusting that
the owrers would ultimately be compelled
10 default and that they would become
possessors Of the prope,tics Thus much
of the circulating medium held by the
Spsnards went with the Cuban refugees
and was spent abroad,
alsss ~ a..
Of rich Spaniards, whose wealth consisted
principally OF gold and silver concluded to
retire from money lending aud To follow
the dog This took from Cuba untold guam
titles Of coin 1t being The most portable
end convertible asset Those who had
property disposed Of II to the hest adj.
vantage possible, leaving those who chose
TO remain with the real estate, but with
out gold.
Added to the foregoing reasons for the
contraction of currency In the island nre
the maEipuations Of the tobacco trust and
the sugar exporters. who control these two
most important Of Cuhas staples, aud
have held them In warehouses aud ports
for SO long period that the Cuban bank
ers have been compelled 20 buy and export
coin TO cover their foreign drifts.
The demand for coin has recently he.
come SO great that the exchange houses
making a speciality Of tho sale of exchange
an Spanish and Mediterranean ports have
been compelled to resort to pesos ana
small fractional silver currency
Since the birth Of the Cuban republic the
exodus of Spaniards from the island has
been far greater than at the time Of the
advent of the government OF Intervention.
Four steamers leave every month for Spain
aud no less than 5000 passengers are car
rIed by these four ships The majority 60
to stay and take with them money, so
that without substitute for the great
quantities OF gold and silver that the island
is losing daily 1t is little wonder that there
is a currency famine Mt hand and imam
clnl panic likely in the immediate future
Fiuanclers as we'll MS the thinking mem
hers Of both houses OF the Cuban con
gress. favor the Immediate establishment
Of Cuban national currency, the coinage
of sufficient silver aud nickel to substitute
FOR the Spanish fractional currency nov
i'm circulation, and the printing Of green,
back custom house certificates upon a gold
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