The use of Colonial paper money in Cuba, during the wars with the Spanish government, did not substantially lessen the demand for actual coin, and it was not until after the Spanish-American War of 1898 that new conditions arose which afforded credit and security for the introduction of a composite system of currency.
When the American government was established at Santiago in 1898, one of its first acts was to stabilize the currency of the eastern part of the Island. United States money was forthwith adopted as the lawful medium and Spanish silver was eliminated accordingly. In the provinces of Havana, Pinar del Rio, Matanzas and Santa Clara, Spanish gold and silver continued in use, along with French gold and U. S. currency, at varying market quotations from day to day, until the adoption of a national standard by the Cuban Congress under the law of October 29, 1914, by virtue of which the Cuban gold peso, of weight and fineness similar to the American dollar, was declared the unit, and United States money a legal tender.
Under the authority of the Secretary of Finance, Spanish and other moneys were shipped abroad from Cuba as follows
| Fiscal Year 1914-1915 (ending June 30th): | ||
| United States | $3,032,529.00 | |
| Spain | 1,435,192.00 | |
| Canary Islands | 66,000.00 | $4,533,721.00 |
| Fiscal Year 1915-1916: | ||
| United States | 17,337,734.00 | |
| Spain | 17,411,003.00 | |
| France | 60,000.00 | |
| Canary Islands | 38,300.00 | 34,847,037.00 |
| Fiscal Year 1916-1917: | ||
| United States | 317,253.00 | |
| Spain | 24,332,707.00 | |
| Mexico | 45,000.00 | |
| Canary Islands | 13,240.00 | 24,708,200.00 |
| Total, reduced to U. S. Currency | $64,088,958.00 | |
Of the above shipments, those to the United States were principally for recoinage to Cuban gold of the new issue and were brought back later in national coin. They also include $5,934,810.00 Spanish silver (value in U.S. currency) sent to Spain between August, 1915, and June, 1917. This delicate operation was affected gradually and in such a manner as not to disturb the monetary or exchange values of the country. By June 1, 1916, all conversions of accounts had been practically made to the new system.
As a result of the new monetary law and its regulations, the entire supply of Cuban money was minted at Philadelphia, through the medium of the National Bank of Cuba, the Government Fiscal Agents, in the following quantities:
| Gold Coins: | $20 pieces | $1,135,000 | |
| 10 pieces | 12,635,000 | ||
| 5 pieces | 9,140,000 | ||
| 4 pieces | 540,000 | ||
| 2 pieces | 320,000 | ||
| 1 pieces | 17,250 | $23,787,250 | |
| Silver Coins: | $1 pieces | 2,819,000 | |
| 40¢ pieces | 1,128,000 | ||
| 20¢ pieces | 2,090,000 | ||
| 10¢ pieces | 625,000 | 6,662,000 | |
| Nickel Coins: | 5¢ pieces | 340,450 | |
| 2¢ pieces | 228,210 | ||
| 1¢ pieces | 187,120 | 755,780 | |
| Total Coinage | $31,205,030 | ||
The above national supply of coin, together with perhaps twice the same amount of U. S. currency in general circulation, has been found sufficient for the country’s normal needs, and Cuba thereby automatically becomes, in law and in fact, a part of the American monetary system of the present day.
As the country exports the bulk of its products and imports most articles of consumption and use, including machinery and implements, it follows that Cuba is in normal times one of the highest priced countries of the world, and under conditions due to the European War the cost of living is enormous.
To move the country’s resources annually requires the use of millions of dollars from abroad, which the banks obtain and circulate in legal tender (which means United States money and Cuban coin) according to local demands.