The history of banking in Cuba is sad with financial disasters. The only bank which has survived during half a century is the Spanish Bank of the Island of Cuba. This concern was originally chartered as the Spanish Bank of Havana, and although it was a private institution, owned by shareholders, the Spanish Government maintained the right of appointing the governor, and in many other ways controlled its actions. At various times this bank has itself issued bank bills, and at other times it has been the medium through which the Spanish Government endeavoured to circulate its own paper money. The notes of the bank itself, as already stated, have never been repudiated, though during hard times, as a result of the Ten Years' War, the bank bills of the Spanish Bank were at a small discount. Sixteen years ago the Spanish Bank of Havana was reorganised and the name changed to the Spanish Bank of the Island of Cuba. At the present time this bank has no bills in circulation; the paper currency now valued at but a few cents on the dollar, which was issued during the war by the Spanish Government through the Spanish Bank of the Island of Cuba, is not regarded by the shareowners of the bank nor by the public as the issue of the bank itself. The history of these bills is briefly as follows: In order to meet the expenses of the last war, the Spanish Government arranged to issue $20,000,000 worth of paper money. As a security and partial fund for redemption of the same, the Madrid authorities deposited in the vaults of the Spanish Bank of the Island of Cuba $6,330,000 in silver against this issue. For a while this bullion, together with the mandate of the Spanish Government that these bills must be accepted as legal tender, kept the currency floating somewhat below par. The people of Cuba, however, had been deceived so many times in relation to paper money that they were suspicious of these bills from the beginning, and when in due course of time Spain gradually and dishonestly absorbed from the bank all silver upon which the paper money had been issued, the bills depreciated until they were absolutely refused in all business transactions. This entailed considerable loss, as the street railways and cabs of the city were compelled to take them in spite of this great depreciation in value. Finally, they were repudiated on all sides. A temporary value was given this paper by accepting ten per cent. in the payment of customs dues. This raised it up to twelve to fifteen cents on the dollar. Immediately upon the military occupancy of the United States the value of these bills fell still lower, and they are to-day worth but a few cents on the dollar, and are held chiefly by Government contractors and speculators.