Bisbee daily review., 1915-12-25
MONETARY CHANGE
IN NICARAGUA is
BOON FOR COUNTRY
Work Of Changing Worthless
Paper, With no Reserve, to-
Valuable Certificates Was
Completed.


MANAGUA, Nicaragua, Dec. "a
The monetary conversion of Nicara-
gua. by which a mass cf paper money
with nothing behind it save the inn
paired credit of the government has
been converted into currency back
ed by a gold reserve, was completed
on October 81, by the expiration OF
the time in which to change the old
paper into the new money.
The conversion was begun in a pre-
liminary way in 1911 by the provision.
al government which succeeded the
regime Of zelaya and of Madriz, the
president from whom Zelaya left when
he He'd. II was entered INTO actively
in 1912, was interrupted and set back
year by the fierce revolution of that
year, was resumed in 1913. and. al
though retarded by the business de
preston that fell upon the country,
was making fair Roadway in 1914
when it was again set back by the
European war. Notwithstanding these
obstacles the present government,
which succeeded the provisional Off
cials after the elections of 1912, has
steadily kept at it and now consum
mates its plan, much to the benefit OF
business, commerce and industries.
When President Zelaya, who kept
himself i'm power and dictated Nicara-
qua for seventeen years, from 1898 to
1909 first assumed office, there was
a silver currency During his first
eight years he left it alone, issuing
but small amounts of paper In 1901
and 1902 he issued 5.20O,634 pesos in
paper currency and the country at
once went from a silver to a paper
basis, the gold exchange falling from
the silver rate of EOS in 1900 to
nuctuating rate of S to i'm 1902 and
Z to s in 1903 No further paper is
ues were made for some years, in fact
some was retired the exchange rate
falling to $50 or 6.
His last two years, 1905 and 1909,
were turbulent and revolutionary. Ov-
or three million pesos more paper
were issued, the rare jumping to 9.
His temporary successor. Dr. Madriz,
found no money and Q first class revo-
luton. He issued 100000 pesos.
The revolutionary government who
gained possession in September 1910.
had no money and at first no revenuq
and issued 24,OOO,OOO during 1911 to
nay the expenses Of their revolution
and other things The rate huctuated
from ~ to p averaging 16.
Then they began the monetary con-
version The services of the late
Charles A. Conant of New York and
+. c.. Harrison of London, late Treas
user-Genersl of India, two of the best
experts in America and England were
secured to devise the reform. A
group of New York bankers were i'm,
terested through the State Department
on invitations Of Nicaragua, and fl
nanced the conversion. 1t cost Mica
ragua approximately two millions be-
sides much financial distress at times
but though often bitterly discouraged
the government stuck to it, as they
wanted to get their country on a
sound money basis, and now they
reap their reward
The new money, of which the cor
doba is the standard, equal to an Am
erican dollar in value, went into force
March %, 1913. The gold reserve is
kept in New York, All went well, ex-
change remaining at par, until the
war In Europe broke out. Then, fright
ened unduly as it has since turned
out, but along with the rest Of the
world the government passed a coma
forum law and the sale Of gold ex-
change stopped Then, assisted by
local spectators who wanted to re-
turn TO the halcyon days of wild fluc-
tuations. cordobas fell and rose and
fell again at one time reaching rs per
cent discount