Note 15 — XXV

Money juggling.There was, as I afterwards learnt, a still more urgent reason for the existence of these decrees. The government valued their own gold at sixteen dollars per ounce, while in commerce it fetched less, and the premium on silver had, at one time, risen to thirty-three per cent. Moreover, on account of the insufficient quantity of copper money for minor currency, the small change frequently gained a premium on the silver dollar, so much so that by every purchaser not less than half a dollar was realized. In exchanging the dollar from five to fifteen per cent discount was charged; it was profitable, therefore, to purchase cigars in the estancias with the gold ounce, and then to retail them in smaller quantities nominally at the rate of the estancias. Both premiums together might in an extreme case amount to as much as forty-three per cent.15