Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-12-12
NONE ARY CONVERSION
OF NICARAGUA FINISHED
Two or Best Experts i'm America and
England Secured to De-
wise Reform.
WENT IN FORCE IN 101.
Mass OF Paper Money, With Nothing
out Impaired Credit of Govern
ment, Changed Into Currency
BACKED by Gold Reserve.

MANAGuA. NICARAGUA. December
1.-The monetary conversion or Mica
ragua. by which Il mass OF paper money
with nothing behind it save the i'm
paired credit or the government has
! been converted into a currency backed
by gold reserve. was completed on
october 81 by the expiration of tho
time in which TO change. the old paper
Into the new money.
The conversion WAS begun in II pre-
limnary way In 1911 by the provisional
government which succeeded the re-
Rirnes of Zclaya and of Madriz, the
President whom Hclaya left when he
fed. It was entered Into actively in
1912, was interrupted and set back a
year by the ncrrc revolution of that
year. was resumed IN 1913. and. al
though retarded by the business depres-
sion that fen upon the country. was
making fair headway in 1914, when it
was again set back hv the European
war. Notwithstanding these obstacles.
the present government, which sue
ceedcd tho provisional officials after
tho elections of 1919, has steadily kept
at II, and now cOnsuin,nates It's plan,
much the benefit of business. CON
mercc and Industries
When President Zclaya, who kept
himself In power and dictated Mica
ragua for seventeen years, from 1893
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 5.2oo,G24 pesos In
Xpaper currency. and the country at
once went from silver to a paper
basis. the gold exchange falling from
1.-The silver rate OF EOS IN 1900 TO
fuctuating rate Of 20 IN 1902 and
7 to 8 in 1903. No further paper
Issues were made for some years; In
fact, some was retired. the exchange
rate falling 20 $50 or g.
His las, two years 1905 and 1909.
were turbulent and revolutionary.
over 100000 pesos more paper were
issued. the rate jumping TO Q. Ills
Temporary successor, Dr. Madra found
no money and n nrst-class revolution.
He issued lJ.000.Oo0 pesos. The rcvo-
Iutionary government. which gained
possession. In September 1910. had no
money, and at first 40 revenues. and
issued -. ooO. 900 during 1911 10 pay the
expenses OF their revolution and oth"r
things The rate duCtuated from II 10
-. averavinl; s.
rWO ENrEHTs SECURED
no DEVISE THE REFORM
Then they began the moueiary CON
Version Tho services oc the late
Charles 4 Couant, OF New York. and
r. - Harrison. OF London. late Treas
urcr General OF India, two OF the best
experts in America and England, We're
secured to devise the reform, y group
II New York bankers were Interested
Through the stat. Department on in
vitation Of Nicaragua, and financed the
conversion. II cost Eicara qua approx
mate!v SO 1000. 600 besides much fnan-
,ial distress at times but though often
bitterly discouraged the government
officials stuck TO H. as they wanted 10
get their country on sound money
oasis. and now they reap their reward.
The new money. of which the cordoba
$ the standard. equal 10 an American
iollar In value. went into force March
%. 1918 The gold reserve Is Kept in
Sew York All went we'll, exchange re-
naming NJ par, until tho war in Europe
broke out Then. frightened unduly, a.
I has since turned out hut along with
he rest of the world, the government
passed a moratorium law ana the sale
IF gold exchange stopped. Cordubas
vent to q discount. Il, iirst OF I'VE to
eight points. Then, assisted by local
speculators who wanted TO return TO
he halcyon days of wild fluctuations.
,ordobas fell and rose. and fell again,
IT one time reaching - per cent dis
cunt Early this year the favorable
.eaction set in, assisted by one OF the
ocal banks. and the cordoba has grad
sally risen, till now. concident with
he conversion OF tine last OF the old