New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-08
PANAMAN FINANCES.
Need of a Sound BasiS-To Keep
Expenses Within Receipts.

| IFRoM A SPECIAL CORRESPONDENT THE TRIBUNE. ]
Panama, r. p. December %.
Under the old regime tho finances OF Colombia
and OF the State OF Panama were entirely separate
and distinct. This refers the systems only, for
Colombia succeeded in capturing nearly every cent
of the actual cash income OF this department In
Colombia the only currency is an issue OF worthless
paper. This money has been printed IN endless
quantities. Over s600OOOOOo is in circulation
and an additional issue OF SS0.O00OoO has been or
dcred for a population of only 100000. Being
redeemable. II represents no real value. and
change has fallen SO low that 81 in American gold
Will buy something moro than $4,000 in the paper
money OF Colombia
Nobody stops to count this money: 1t is
tossed about in bales supposed contain $1,000
each. In It 2 simple luncheon restaurant in any
of the Colombian cities about $500. while
ordinary purchases. like shoes or hats have to be
paid for the rate OF thousands of dollars each
The expenses of the trip making through
Panama would. If computed in Colombian currency.
already amount to more than N40O0.0VO Nor is
This the worst feature OF the money OF Colombia.
All sorts OF tricks played with 1t. The print
ing and engraving are Of SO inferior quality that
counterfeiting is made easy. and counterfeit
twenty dollar note having recently appeared. the
government at Bogota has issued decree repudiLt-
ing all notes OF that denomination in circulation.
II Is impossible TO distinguish between the genuine
and spurious so the entire issue is repudiated.
II IS this currency which has brought Colombia
to the lowest level OF financial despair absolutely
destroying her credit eliminating the possibility OF
her paying her Indebtedness and prompting the
enactment OF a law requiring al customs dues to
be paid in gold after January /. The folly dis
played by Colombia in rejecting the canal treaty.
which would have given her 100000 In gold and
afforded her an opportunity to retire the worthless
paper and establish something like n decent none
tary system IS realized when these facts arN,
known
MONKEY MONEY OF PANAMA
But interesting they are. these facts only
slightly concern Panama. They explain in a meas
ure. why Colombia Was always assiduous in at
taching the public moneys IN the Department OF
Panama: but otherwise the isthmus never suffered
because OF the worthlessness OF the paper money
OF Colombia. The reason is that Panama years
demanded @nd her commercial requirements.
due 10 transsthmian traffic. were such that Co
lombia had grant tho dcmand) tho issuance OF a
silver currency for local
Th!s silver now constitutes the money OF tho new
republic Locally it IS known as tin" or monkey
money" Why? Because Il Is a mixture OF CHEAP
alloy with very little silver. the portion Of silver
being small that the Of exchange for Amer
lean gold fuctuates between e Sc and 81 10 for 81
That means that for 81 OF American gold one re-
ceives amount IN Colombian silver somewhere
between the sums named. Here, again. tricks are
played with the money, for there Is no fixed rate
of exchange, and the two banking houses on the
isthmus vary the rate from day 10 day and make
a comfortable sum by raising depressing the ex-
change. The unit of value in this coinage IL the
1o-cent piece. worth ordinarily about Is cents in
American money, and moro unsatisfactory cur
rsncy it would be difficult to discover
When changing a small gold piece one gets sew
eral pounds of silver IN return 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 Phila-
delphla. and at other times in European cities Just
as the holders Of the money coming concession find
It advantageous to place thu con tract. Some OF
it is mied. and some has the Colombian motto
"Dios-Lei-Libertad'-"G Life and Liberty
sunk in small letters about its edges Occasionally
one receives ponderous pieces-the dollars OF Peru
Nicaragua Guatemala and Costa Rca all of which
current here-and again gets the regular
Colombian EO-cent pieces defaced with small
stamp. showing that at some time other that par
ticular piece found its way into Costa Rica- and
was stamped on with the diverse and reverse of
the Costa Rican coat OF arms, a process by which
Colombian silver is made current in that country
NEED OF FIXED BASIS
As may be imagined. this currency leads TO end
complications. 1t is, in fact, almost necessary
for a man TO keep a set OF books on himself II he
would know where he stands. Here Is q case In
point;
Just before sailing from New-York I changed a
sum Of money into English gold (sovereigns) as I
was advised that English gold only was accepted
on the sthmus. 1t foolish thing to do as
American gold and American banknotes are moro
valuable here and better liked than is tho money
thing. paying 81 IS for each English sovereign
patch to the States The cable toll was $40 g Coom
bian silver. laid down English sovereign which
was accepted a 81 Colombian so that had X
cents change due me, and for this amount got an
American hve-cent piece and a copper cent Sew
eral persons endeavored to tell me how much
the cable cost in American money but none have
succeeded. 1 leave IL with the reader as an ex-
ample of the intticacies OF this monetary system
which. most commercially. Panama hopes soon to
abandon for the gold basis.
Panama Will be able realize uDon fhis
expectation is another problem There are abso-
lutely no statistics available showing exactly or
even approximately the OF this silver
money in circulation the sthmus. Colombia
never had any interest in the matter as the circu-
ment; nor the money itself liked by Colombia
which always regretted the fact that the CONNER
cal requirements Of this particular State prevented
her from foisting upon 1t her worthless paper
She made any effort, therefore to keep
statistics and while IL is believed that there is
something like s. 100000 of the silver in existence
nothing definite is known this point II is
however, the purpose or the republic, as explained
by Senior Manuel E. Amador Minister OF Finance
and Endorsed by the Junta, TO retire all of this as
use as much OF the slOOO6OO0 gold TO be paid by
the United States for the canal concession as may
be required.
The plan as far IT has been outlined is 10
deposit the necessary gold in the public treasury
as q guarantee fund. and then issue a paper cur
ton fix a of exchange between gold or the
gold secured paper and silver. Should this plan
be adopted the rate Of exchange will probably be
fixed 81 gold for g silver and silver dollars and
half dollars once received at the treasury will
be reissued. except when received IN the form
intrinsically valuable subsidiary currency
SOUND MONEY SCHEME
Much difficulty Is. however expected before this
plan be put into operation. AL Panama avoids