CO129-199 - Acting Governor Marsh - 1882 [4] — Page 37

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Caimé.

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Nearly all taxes were receivable in "caïmé," and all The salaries were ordered to be paid in the same. ordinary transactions of the people were carried on metallique " partly in caimé and partly in copper or piastres, but on the arrival of the English the merchants began to refuse caïmé. The people petitioned that they should be compelled to accept it, but Sir Garnet Wolse- ley very properly refused to interfere. At the same time he announced the intention of the British Govern- ment to pay all salaries in coin, but that for the current year he would continue to receive caimé in payment of taxes. In a few days caimé disappeared from the ordi- nary currency, and remained solely in the hands of mer- chants, who trafficked with it to supply the taxpayer for the Treasury demands. The accumulation of caimé thus formed in the British Treasury was one of the disagree- able necessities of the situation, but it was the first step of the British Government towards establishing the currency on a sound basis.

Copper.

Before the introduction of caimé in 1876 the taxes had all been paid in "metallique" piastres, and copper was never received in any Government Treasury. It was, however, in ordinary current use in all the districts of the Island, except Limassol and Papho, but its im portation into the Island from other parts of Turkey It was not long before the was strictly forbidden. attention of the Government was directed to the fact that, though T.£1 was only worth 160 copper piastres in Cyprus, it would purchase more than 180 in Constan- tinople, and the great profit that would be made by such a transaction would undoubtedly induce smuggling; indeed the fluctuations of Turkish currency are so great that it became evident that if we continued to use Turkish coins in Cyprus we should find ourselves involved in the same embarrassments that are caused to Turkish finan- ciers by those fluctuations. Sir Garnet Wolseley pro- posed, therefore, the introduction of an English copper piastre of 180 to the 11. sterling, which should be of the same nominal value as the Turkish copper piastre, and should replace it in the transactions of the people amongst themselves, and by the adoption of which the Govern

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ment of Cyprus would be able to control the circulation of copper, and would not suffer from the over issue of such coins in Turkey.

" Metallique" Currency.

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But before this measure had been approved by Her Majesty's Government it became necessary to deal with the metallique" currency. This coinage, which is made of debased metal, is commonly called "good money in Turkey, as it passes at nearly the same value as the silver piastre, and has always been popular amongst the people. An immense quantity of English silver had, however, been brought into Cyprus by the British Go- vernment, and in a short time the amount in circulation became more than the Island could bear. The result was that gold began to leave the country, and English silver depreciated in value. And here it may be re- marked that the normal state of currency in the Levant is that silver and copper are always at varying rates of discount. In order, therefore, to stop the depreciation of English silver and put the currency on a proper foot- ing, it was necessary to proceed on some definite system. Sir Garnet Wolseley decided in the first instance to drive out the "metallique" currency, for the amount in the Island being considerable, its departure would leave a vacuum for English silver. Accordingly it was an- nounced that, after the close of the financial year, the "metalliques" would no longer be received in Govern- ment treasuries, at the same time the people were invited to bring their metallique" piastres for exchange against English small silver; and as there was no copper eur- rency in Limassol and Papho, some Turkish copper was imported to supply those districts with coins of less value than 3d. pieces.

Introduction of English Copper Piastre.

The introduction of copper did not find favour in the Limassol and Papho districts, but they gladly received the English small silver, and a large quantity of "metal- liques" was accumulated by the Government and ex- ported to Turkey. In the meanwhile the issue of the English copper piastre had been approved by Her Ma- jesty's Government, and a supply having been received, the Turkish copper was called in and exchanged. To facilitate the withdrawal it was announced that it would

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