New Britain herald., 1915-12-14
CURRENCY BAq
 BY GOLD RE,
Old Paper in Nicaragua
 Into New Monet

tCorrespondence of the Associa
 Managua, Nicaragua, NoI monetary conversion of Nicl
 which a mass of paper md
 nothing behind it save the credit of the government
 converted into a currency
 a gold reserve, was comI
 October 31, by the expiratl time in which to change the into the new money.
 The conversion was begun liminary way in 1911 by tt sional government which
 the regimes of Zelaya and the president whom Zelaya
 he fled. It was entered ind in 1912, was interrupted and a year by the fierce revoluti< year, was resumed in 1913 though retarded by the bti pression that fell upon thd was making fair headway when 1t was again set back D ropean war. Notwithstand obstacles the present goI which succeeded the provisi cials after the elections of
 steadily kept at it and now mates its plan, much to the
 business, commerce and indu
 Silver Currency.
 When President Zelaya, VI himself in power and dictat ragua for seventeen years, ff to 1909, first assumed office, a silver currency. During eight years he left it alone, isa small amounts of paper.
 and 1902 he isued 5,200,624
 paper currency and the cou once went from a silver to
 basis, the gold exchange fallf the silver rate of POS in II ductauting rate of 5 to in 7 to in 1903. No further n sues were made for some V fact some was retired, the d rate falling to 5.50 or 6.
 His last two years, 1908 arj were turbulent and revolu| Over three million pesos mor| were issued, the rate jumpirl His temporary successor, pr. found no money and a first cla| lution. He issued 5000, ,00d The revolutionary governmer| gained possession in Septembe had no money and at first no ri and issued 24,000, 1000 during pay the expenses of their res and other things. The rate fl ed from 12 to 22, averaging 16
 Monetary Conversion.
 Then they began the moneta version. The services of tn Charles A. Conant of New To F. c. Harrison of London, late urer-General of India, two of t experts in America and Englan secured to devise the reform. A of New York bankers were int through the State Department vitation of Nicaragua, and fl the conversion. 1t cost Mic approximately two millions much financial distress at tim, though often bitterly discourag government stuck to it as they ed to get their country on a basis, and now they real 
 The new money, of which tn doba is the standard, equal { dollar in value, wen force March 23, 1913. The go serve is kept in New York. Al well, exchange remaining at pa til the war in Europe broke Then, frightened unduly as it hai turned out, but along with tn of the world, the government ! moratorium law and the sale o exchange stopped. Cordobas 5o a discount, at first of five to points. Then, assisted by local llators who wanted to return 1alcyon days of wild fluctuations lobas fell and rose, and fell aga ,ne time reaching 25 per cen count. Early this year the fav, 'eaction set in, assisted by one ( ocal banks and the cordoba has ially risen till now, coincident he conversion of the last of the ,aper money. it is practically at gain, and the government an, ,ankers saw it will be maint here at all cost.
 Feat Very CrcditabIe.
 Considering the effects of the n finances, and that it cut Mica n commerce into half, and also dering what has happened tc ound sterling and the money s rds of Europe, Nicaragua's fea ringing its money to par is reditable. 1t has had good I al advice and assistance and has .rved. 1t should be the first wards a revival of its commerce usiness. The retirement of the the paper currency and bringini sw cordoba back to par is hailed feat. President Diaz mister of Finance Cuadra are T lily much elated.