“1. Thus the onza should be worth $16; the medio onza $8; the doubloon, $4; the escudo, $2; the centen, $5—that is, pretty nearly its intrinsic alloy and weight value.
“2. The English sovereign ought to be taken for $5, and the French louis (which circulates in Cuba in great numbers) for $4.
“This arrangement, that slightly improves the value of the Spanish gold,—for the centen is worth in the New York market $4.87 or $4.90 at the utmost,—would tend to drive to Cuba the foreign coins of this country, perfectly useless for circulation. As for the Spanish silver, it is considered there almost as a merchandise or stock value subject to daily quotation, and it is really troublesome in its use. Therefore I would propose to give it a fixed value in American gold, thus—
| Value. | |
| The peso | $0.60 |
| The medio-peso | .30 |
| The peseta | .12 |
| The real | .06 |
| The medio-real | .03 |
“This value is a little less than the price of quotation to-day, but it is much more than it was a few months ago, but I do not think acceptable the use of any coin without a fixed, invariable value. Now, as the American currency and the American silver would stand at the par value, and, on the other hand, the Spanish silver is at the present quoted higher in Spain, there too would likely go a large quantity, if not all, Spanish silver coins; that nevertheless would not be objectionable, but rather convenient to both nations. Bronze or copper coins should be received just at half their face value; the centavo for half a cent American gold, and the two-centavo piece for one cent. But as this implies a change in the standard value of the Spanish gold dollar, which up to the present has been the basis of all contracts and dealings of the country, it will be necessary to fix a date to implant the new system, and that can be no other but the 1st of January next. Hence, from that date all money transactions will be understood to be on the basis of American gold, with American currency; Spanish, French, and English gold at par value; American silver to be accepted also at its full value only in quantities not exceeding $5; Spanish silver at the stated rate, and foreign silver coin as merchandise.
“As for all contracts and stipulations in money matters standing at present to be fulfilled after the appointed date of the 1st of January, I believe it would be but right to be paid off with six per cent. discount, which would simply disinflate them, because they were made with the basis of gold coins which had six per cent. premium; and discounting the same six per cent. when they were settled with coins whose said premium had been taken off, although the intrinsic value of which coins had remained unaltered during the time, would only be common morality and fair equity. Lastly, all those who would attempt to alter the value of money ought to be severely punished, according to the law of the country.”
With these supplemental facts, the case is fully and impartially before the reader. To accept the proposition of the Havana bankers meant a continuation of the inflated value of ten per cent. To concede the proposition of Dr. Jover and the Santiago financier would reduce the inflation about six per cent., still retaining Spanish and French gold in circulation at a slightly increased value. (Dr. Jover even includes the British sovereign at $5.) The other and only remaining course would be to accept United States money at its full value for customs and taxes and the foreign coins at their intrinsic or mint value.
After carefully considering all these facts, the Honourable Secretary of the Treasury, Lyman J. Gage, prepared and submitted to the President the following order in relation to the future currency of Cuba:
“Executive Mansion, Washington,
December 28, 1898.