The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1916-01-15
NICARAGUA BACK
IN GOOD SHAPE
MONEY OF COUNTRY Is ON
SOUND BASIS

MANAGUA, Nicaragua, Nov. ~
The monetary conversion of Nicara-
qua, by which a mass of paper
money with nothing behind it save
the impaired credit of the govern
ment, has been converted into a cur
rency backed by a gold reserve, was
completed on October 81, by the ex-
piration of the time in which to
change the old paper into the new
money.
The conversion was begun in a
preliminary way in 1911 by the pro-
visional government which succeed
ed the regimes of Zelaya and of
Madriz, the president whom Zelaya
left when he fled. 1t was entered
into actively in 1912, was inter-
rupted and set back a year by the
fierce revolution of that year., was
resumed in 1913. and although re-
tarded by the business depression
that fell upon the country was max
ing fair Roadway in 1914 when 1t
was again set back by the European
war. Notwithstanding these obsta-
cles the present government, which
succeeded the provisional officials
after the election of 1912. has stead
lily kept at it and now consummates
it's plan, much to the benefit of bus
mess, commerce and industries.
When President Zelaya. who kept
himself in power and dictated Mic
aragua for seventeen years. from
1898 to 1909, first assumed office.
there was a silver currency. During
his first eight years ne left 1t alone,
issuing but small amounts of paper.
In 1901 and 1902 he issued $780,
624 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 2.0S
in 1900 to a f%1uctuating rate OF b
TO 6 in 1902 and z to 8 in 1903. No
further paper issues were made for
some years, in fact some was retired.
the exchange rate falling to $50
or 6.
His last two years, 1908 and 1909,
were turbulent and revolutionary.
Over three million pesos more paper
were issued, the rate jumping to 3.
His temporary successor, DR.. Mad
riz, found no money and a first-class
revolution. He issued Is 100000
pesos. The revolutionary govern
ment which gained possession in
September, 1910, had no money and
at first no revenues and issued "a
OOO,O 900 during 1911 to pay the ex-
penses of their revolution and other
things. The rate fluctuated from IL
to %, averaging 16.
Then they began the monetary
conversion. The services of the late
Charles A.. COnant of New York and
F. G. Harrison of London, late
Encouragement of India. two OF
the best experts in America and
England, were secured to devise the
reform. A group of New York
bankers were interested through the
state department on invitation of
Nicaragua, and financed the CONVEX
sion. 1t cost Nicaragua approx
mately $4,000, 900 besides much fl
nancial distress at times, but though
often bitterly discouraged the gov
eminent stuck to it, as they wanted
to get their country on a sound mon
ey basis, and now they reap their
reward.
The new money, of which th"
cordoba is the standard. equal to an
American dollar in value. went into
force March 23, 1913. The gold re-
serve is kept in New York. All
went we'll, exchange remaining at
par. until the war i'm Europe broke
out. Then, frightened unduly as 1t
has since turned out. but along with
the rest of the world. the govern
ment passed a moratorium law and
the sale of gold exchange stopped.
Cordobas vent to a discount, at first
of 5 to s nOints. Then. assisted by
local speculators who wanted to re-
turn to the halcvon davs of wild
fluctuations. cordobas fell and rose,
and fell again. at n time reaching
25 per cent discount.
Early this wear the favorable re-
action set in. assisted by m Of tn"
local hanks. and the cOrdaba has
gradually rison till now. c%oincident
with the conversion of the last ~
the old manor money. II is practicallv
ut nor again. and the government
nnd the haokers GOV II will he MAIN
tairnd the~e at all cost
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