The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-06
Observations OF the Journals Spe-
cial Commissioner While Tray
cling on the Isthmus.
AN INFLATED CURRENCY
Over 5000, 600, 900 Of Cheap Paper
Put in Circulation by the Bo-
gotta Government.
REVENUES OF PANAMA
Far Below Actual Running Ex-
penses-Fixed Basis of Money
Value Needed.

From the Journals Special Commissioned
PANAMA, z. p, Dec. 22.-Rosy-hued as
are her ultimate financial prospects, the
present. condition of Panama approximates
desperation. Her immediate future holds
ont little hope of Improvement Things will
come all right financially in the end. but
just now Panama faces direst necessity.
She has made one temporary loan. J. p.
Morgan & Co. New York being the lenders.
From this loan Morgan is realizing 6 per
cent. interest, and by reason of making it
his firm procured appointment as fiscal
agents for the new republic in New York.
The initiatory demands upon this govern
ment have been so heavy, however, and the
revenues have been so small that since the
work Of paying the separatist bonuses was
completed there has been little left with
which % defray current expenses. To add
to the difficulty. the sort of government now
holding sway here does not invite much
financial confidence. so that the establish
ment Of a national credit, under which an
issue Of bonds might be possible. had TO be
deferred until after the first President shall
have been elected and the government
chosen by the people shall have been in
Quoted into Office.
Under the cid regime the finances of Co
lombia and Of the State of Panama were
entirely separate and distinct. This refers
10 the systems only. for Colombia succeeded
in capturing nearly every cent of the actual
cash income of this department. In COom-
bia the only currency is an issue of worth
less paper. This money has been printed in
endless quantities. over $500. 100000 are now
I'm circulation. and an additional issue of
$So,@0.0o0 has been ordered for a population
400
represents no real value and exchange has
fallen so low that 81 in American gold will
buy something more than $4,000 in the
paper money of Colombia. 1t is a literal
truth that over in Colombia the man who
changes a SO gold piece needs a mule to
carry away the paper money that is given
him.
WORTHLESS PAPER.
Nobody ever stops to count this money:
Il is tossed about in bales supposed TO con-
tain $1,000 each. In it simple lunch at a
restaurant in any of the Colombian cities
costs about $500. while ordinary purchases,
like shoes or hats. have to be paid for at
the rate of thousands OF dollars each. The
expenses of the trip l am making through
Panama would. if computed in Colombian
currency already amount TO more than $14,-
ooo.o0O- Nor is this the worst feature of the
money of Colombia. All sorts of tricks are
ing is OF so inferior a quality that counter
feiting is made easy and a counterfeit twen-
y dollar note having recently appeared
(. the government at BOgota has issued a de-
cree reQudiating all notes of that denomi-
II nation in circulation. IT is impossible to
distinguish between the genuine and spur
ious. so the entire issue is repudiated-
Il Colombia 90 the lowest level of financial
despair. absolutely destroying her credit
eliminating the possibility of her paying
her indebtedness. and prompting the enact
nent OF law recurring all customs dues to
b. paid in gold after the 1st of January.
The folly displayed by Colombia in reject
ing the canal treaty. which would have
Il given her $10,O00O00 in gold and afforded
her on opportunity TO retire the worthless
paper and establish something like a decent
monetary system, Is realized when these
facts are known.
But. interesting as they are. these facts
only slightly concern Panama. They ex-
plain IN measure. why Colombia was al
ways assiduous in attacking the public
moneys IN the department of Panama; but
II otherwise, the lSthmuS never suffered be-
cause of the WOrthlessness of the paper
money of Colombia. The reason is that
Il Panama years ago demanded (and her COM
+ mercial requirements. due To transisthmian
traffic. were such that Colombia had to
/. grant the demand) the issuance of a silver
ii currency for local use
"A This silver now constitutes the money of
Il The new republic. Locally il is known as
tin" or monkey money Why? Because
II is mixture of cheap alloy with very
II little silver, the portion of silver being so
a small that the rate of exchange for Ameri-
1 Can gold fiuctuateS between $2.36 and 81 20
II FOR one. That means that for one dollar of
II American gold one receives an amount in
II Colombian silver somewhere between the
sums named Here, again, tricks are played
with the money. for there is no fixed rate
Il OF exchange and the two banking houses
on the isthmus- BrandOn's and Ehrmann :
vary the rate from day 10 day, and make
a comfortable sum by raising or depressing
| the exchange. The unit of value IN this
coinage is the ffty-Cent piece, worth or
l~fTr aHr efyfa N an
| money. and a more unsatisfactory currency
would be difficult TO discover.
4 BADLY MIXED CURRENCY.
When changing a small gold piece. one
gets several pounds of silver in return.
each piece varying with the date and place
OF the minting In this respect there is
little uniformity. for the money is coined
sometimes in New York. sometimes in
Philadelphia and at other times in Euro
pean cities just as the holders of the
monev-coining concession find it advan-
taseous To place the contract. Some of ii
s. milIcd and some has the Colombian
ratto ''DiossLei.Libertad"- Life and
Lib-rty-sunk in small letters about its
edges. Occasionally one receives ponderous
rl-ees-the dollars of Peru. Nicaragua.
III temala and Costa RiCa. all of which are
gal-eut here. and again one gets the regu-
lar colombian hfty-cent pieces defaced
u1lr or other that particular piece found its
NaE into Costa Etica and was stamped with
tl- diverse and reverse of the Costa Rican
tt or arms. process by which Colon
NJ Lau silver is made current in that country
AS may be imagined. this currency leads
- endless complications. 1t Is, in fact
| almost necessary for man 10 keep sci
o. books on himself If he would know
mere ne stands. Here is case in point:
Just before sailing from New York
cithsed sum OF money into English gold
s9Eereignsl. as ] was advised that English
to-d only was accepted on the isthmus II
was n foolish thing 10 do. as American
-".1 and American bank notes are more
tluable here. and better liked than is
.He money of England. but in my ignor
epce i did the foolish thing. paying S4-s'
iof each English sovereign
ICn arrival at Colon ! wished 10 send
Saole 20 the States. The cable toll was
-Nt2 colombian silver. / laid down ar
sthsilsh sovereign, which was accepted a
'tolombian). 50 that ! had ID cents
shange due me. and for this amount i go
X@n American hve-cent piece and a coppel
enJ Several people have endeavored Z
I'll me how much the cable cost IN Ameri
!, - money. but none has succeeded. leave
= ~ltR the reader as an example OF the IN
CONTINUED ON PAGE 5. COL. i)