Bisbee daily review., 1915-07-10
DOLLAR EXCHANGE
 PROBABLE BETWEEN
 CUBA AND AMERICA
Leading Banks of Cuban Repub- lie Unite in Urging That Bills Drawn On New York Be Paid In United States Money.

HAVANA, July 1O.-An important step towards promoting a dollar ex- change" has been taken by leading banks here, in pursuance of their gen eral policy to substitute the new na- tonal money of the republic for Spanish and French gold and Spanish silver heretofore in use. At recent meeting of the eight leading banking houses of Cuba the resolution was adopted that hereafter bills of ex- change drawn on New York for ship ments of sugar and tobacco should be paid for exclusively in the national money of Cuba or in money of the United States
 As the new national money is iden- tical in fness, weight and value with American money, this means another long step towards exclusive use Of the national money in business transac- tious. Already early in the spring. arrangements were made by the sec retary of agriculture to have local quotations for sugar transferred from the old Spanish system to the system of cents per pound, as quoted in New York. Quotations on the Havana Stock Exchange, previously made in l Spanish gold, were shifted to Cuban gold, and a like step was taken by the governing board of Havana Pro. duce Exchange
 One of the controlling motives of bankers in refusing to pay for bills on New York in Spanish and French gold has been the growing scarcity ! of these coins in relation to demand Practically no gold has gone out of ! Spain since suspension of gold pay. | ments in 1888. Since the European war the same difficulty has arisen in regard to French gold, which formerly to some extent took the place of 1 Spanish gold in Cuba. --rea-y a mum. | Der of leading planters have changed their form of payment on their planta tions from Spanish money to the new | Cuban gold and silver and are mak ing their future contracts for purchase of cane and paymen, of salaries and wages in the national money.
 A curious phenomenon of the world | upheaval in matters of exchange has recently occurred in Cuba, in a threat ened depreciation of American paper currency. American money circulated steadily at par up to the outbreak ol the European war, -leu it is con l tended that a good deal of American gold left Cuba and only paper re mained in general circulation, Sc | keen is the apetite of the Cuban busi ness community for gold, in absence of any national paper money. that ] there has been tendency recently for American paper Co -zz below par and for a certain uneasiness to deveI op in the banking community
 A meeting was accordingly held ! last week, at which leading banks de sided to import as promptly as possi ble SS0OO,OOO in American gold coin l The amount will be distributed prac | tically in proportions of S1OOO,OOO to each of the leading banks, several smaller banking firms taking only | 5Oo,oOO.
 lt would not have been possible for the bankers to have imported Cuban gold to meet the present situation because it has not yet been coined in sufficient amounts at the Philadelphia mint Coinage of new national money has been going on since about the | middle of March. About $5OO,OOO gold and Sl,5OO.OOO silver has been coined but deliveries thus far have been more largely of silver and nickel than | of gold, in order to meet pressing demand for subsidiary and minor coin
 The government of --u1a is studying the subject of providing for unlimited coinage of gold at ~nuadelphia at option of any banker who complies with proposed regulations Consulta. tations have already taken place with mint officials of the United States and there appears to be no serious obiec. ton to converting bullion and foreign gold coin into Cuban gold coin from time to time, provided it is presented in sufficient quantities and complies in other respects with regulations gov erning coinage of gold into American coin