“The emission of gold certificates is necessary, as it would be impossible to keep the gold coins in circulation so long as the quantity of paper money issued by the bank, is far greater. Again, in order to avoid the difficulties which would arise from the constant retirement of this paper money, the gold certificates must be issued to furnish an adequate supply of currency. In this way also the Government has the advantage of utilizing the quantities of gold in deposit, and of acquiring by means of those certificates resources for fresh coinage of gold pieces.” “In order to avoid embarrassment in the commercial and economic life of the country it has been agreed with the Banco de Costa Rica to maintain parity between these certificates and its notes. By the monetary law of October 24, 1896, also parity with the actual silver peso was established. It was further agreed that the ‘colon de oro,’ the new gold coin, should correspond in intrinsic value with this standard of ratios.” “For these purposes, there had to be taken into consideration: First, the actual state of the national wealth, estimated in the already established credit circulating medium; second, the average range of international exchange during a number of years, and third, the average ratio of silver to gold during the same period. There had further to be considered the outstanding obligations of the interior and of the exterior debt, as well as pending negotiations as to exportable products, and the relation of the intrinsic value between gold and silver.” “In this way the following conclusion was reached: That the ‘colon de oro’ should contain 700 milligrams of fine gold, in order not to complicate the situation created by the circulating notes of the Bank of Costa Rica, and in order to include an average exchange of 110 per cent. with respect to the pound sterling, and of 115 per cent. with respect to the American gold, as well as to create a relation of 1 to 26 between silver and gold. In consequence of this and for the purpose of giving to the ‘colon de oro’ the same fineness as has been given to the American gold coin, and as has been adopted by the Union Latina, it was established that the ‘colon de oro’ should have 778 milligrams of gold of 900-1000 fineness. Its relation to the gold coins of either nations is as follows: 1 American gold dollar Colones 2.1495 4 shillings sterling, gold ” 2.0921 5 francs, gold ” 2.0737 4 marks, gold ” 2.0481