22 THECUBAREVIEW 



When the modern Spanish centen or alfonsino, and the French luis or 20 franc 

 gold piece, came into vogue, they were also admitted to Cuba at the same ratio as the 

 Onza, namely, a 6% premium or 17 to 18 approximately, to the detriment of Cuban 

 industry and commerce, throughout the course of the nineteenth century. 



In the year 1868 Spain passed from a Silver to a Double Standard, adopting the 

 peseta as the monetary unit, equal in weight and fineness to the French franc and 

 that of other countries of the Latin Union, composed of France, Belgium, Italy, 

 Switzerland and Greece by the monetary conventions of 1865 and 1868. The Isabelan 

 silver Escudo, adopted in Spain as the unit by the law of June 24, 1864, was thereby 

 demonetized. 



But the Spanish peseta, consisting of gold or silver indifferently, while circulating 

 freely in Cuba along with French gold and American currency in recent times till 

 1915, did not become the unit of value in the Island. The Spanish gold dollar (peso 

 oro Espahol), an imaginary coin equal to five Spanish gold pesetas (of 24.8903 grains 

 of pure gold each) considered at a premium of 106, weighing 21.13 grains of fine gold 

 (as a result of the 6% premium), and circulating in the form of current Spanish or 

 French gold pieces, was taken as the standard. By reason of such premium these 

 coins were received in the country at $5.30 oro espanol for the centen (25 peseta gold 

 piece) and $4.24 oro espanol for the Luis and Doblon (25 franc and 25 peseta gold 

 pieces of equal weight and fineness), which values they held till the last of Spanish 

 money circulation in the Island. 



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 stand- 

 ard 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 $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 



