Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1908-05-26
BANKING
in CUBA
4 Cosmopolitan Currency The
Increased Use Of Checks.

As Cubas business is international
in its character, so is its banking, and
consequently its principal feature has
been, in the past especially, the buy
ing and selling of foreign exchange.
These operations are usually made
against Spanish gold, as the local pay
ments are made in that money, but
drafts are drawn on Cuba in the mon
ey of the different countries and re-
United in the same money.
The currency of Cuba is not as
cosmopolitan as her people, says Amer
lean Industries, and vet she has in
active use Spanish and French gold,
United States currency and Spanish
silver, each circulating in its well de-
fined sphere, although the use OF
American money is extending con-
stantly.
Spanish gold supplemented by
French gold is the commercial money
of the country except in Santiago pro-
vince. where United States currency
was introduced by military order dur
ing the first American occupation and
where all other moneys have practicsl-
ly ceased to circulate.
United States currency, Whether
gold, silver or paper, is the official
money established by the American
Government, in which the Cuban Gov
eminent collects ali incomes and
makes all disbursements for its ex-
penses by clerk on the National Bank
of Cuba.
Spanish silver is the fractional cur
rency and the money in use in the
markets, small shops and for wages of
labor generally. The value of each
money is subject to constant fiuctua-
tion, dependent upon the demands foi
exchange and for the different moneys
at the different seasons of the year.
Some of the larger customers carry
in the bank three accounts, against
which they draw in different moneys,
and the banker must have in mind
at the close of each day the proper
reserve-not in the total sum, but in
each money, varying according to
the demands of the season
To maintain the proper proportions
there is a constant flow of the vari-
Gus moneys in and out of Cuba, so that
the banks are actually shipping Span
ish and French gold, Spanish silver
and United States currency between
the respective countries to meet the
needs of the seasons and to neutralize
the rates of exchange.
1t has only been within the last
seven years, since the establishment
of the National Bank of Cuba, that
checks have been used to any extent,
but the convenience and safety is so
apparent that they have rapidly grown
into favor, as indicated by the in
crease in deposits shown by the state
ment of this bank from 100000 in
1902 to over $14,000,000 in 1907.
The number of checks paid through
the windows of the head office of the
National Bank of Cuba reaches over
5000 day, and the movement of
actual cash, as distinct from checks,
through the tellers reaches more than
$1,OOOOOO day, principally in coin,
as United States bank notes are
scarce Collections in Havana run
over s1,0c0,O0O week.
The only two banks which publish
statements of their business in Cuba
are the Bank of Spain for the island
of Cuba and the National Bank of
Cuba. The Bank of Spain was or
ganized in Spanish times, and the
Spanish Government transacted its
business through it.
It's nominal capital is SS,000,000
Spanish gold, equivalent approximate
ly to $7,200,000 United States cur
rency, but it carries in its assets So
100000 of its own stock The last
statement showed its deposits to be
in round numbers s5,00O.OOO Spanish
gold, equivalent to $4,500.O0O United
States currency approximately. 1t
formerly had branches throughout the
island but aow has only its bank in
Havana
The National Bank of Cuba was or
ganized ia 1901 and was the fiscal
agent and depositary for the United
States Government, through which all
revenues were disbursed and audited
by means of checks on the ba.k. The
paid up capital of the bank is $1,000,
600 United States currency, with de-
posits of over $14, 900 900, all moneys
reduced to United States currency.
Its head Offices are in Havana, with
fourteen branches throughout the IS
land and an agency in New York. This
bank has combined the system OF the
United States with the branch bank
ing systems of Europe, and its heads
of departments have been drawn from
the principal banks of the world.
The Bank of Havana has a paid up
capital of s2,500.0O0, but has never
published a statement. There are
also branches of the Royal Bank OF
Canada and the Bank of Nova Scotia
dong business in Cuba.
In regard to credits and collections
in Cuba, the facilities are as complete
and satisfactory as in any city of the
Union Dun's Commercial Agency
covers the entire West Indies, and
Bradstreet's has an agency in Havana
Information is quite as definite and
satisfactory as that to be obtained in
any American city. The principal
mercantile houses of Cuba have gone
through the series of Cuban revolu-
tions, and their stability under these
trying circumstances has given them
credit throughout the world for I'M
usually high commercial strength and
integrity.