For the same period the “Public Register” furnishes the following statistics of mortgages on real estate estimated in pesos:
Since 1865 the mortgage law permits this mode of converting real estate; upon due official registration its value may be divided into shares, each represented by a cedula or bond, on which as collateral security money can be raised at any time with perfect safety.
This law is included in the Codizo Civil of 1887 andsince that time cedulas to following amounts have been issued:
The municipal taxes are not high. The owners of real estate are required to pay only the taxes devoted to the maintenance of municipal police, street lighting and the domestic supply of water.
Other municipal taxes comprise license fees for commercial business, for slaughtering cattle and hogs; for wine houses; taxes for registering of dogs; taxes on tanneries, breweries, coffee-cleaning establishments, cemeteries, etc.
Other important factors of the economic life of Costa Rica are the existingbanking establishments. The first bank of Central America was established in 1857, in Costa Rica, by Crisanto Medina. This institution ceased and, in 1863, was replaced by the Banco Anglo-Costaricense with an authorized capital of 2,000,000 pesos and a paid-up capital of 1,200,000. This bank still exists, together with the Banco de Costa Rica established in 1867 with a paid-up capital of 2,000,000 pesos. It incorporated with itself the former Banco de la Union established in 1877.
The Bank of Costa Rica has had from the Government the privilege of issuing paper money to the extent of four times its cash on hand. The average circulation of these bank notes since 1882 has been as follows:
This issue privilege was withdrawn in 1897 on the introduction of the ‘colon de oro,’ and a special arrangement was made with the bank to uphold the contemplated change from a silver to a gold standard.
The Banco de Costa Rica, on July 15, 1897, had a reserve fund of 745,000 pesos and a dividend account of 50,000. It has branches in Heredia, Cartago and Alajuela. The situation of this bank at the same date was in pesos as follows:
The bank is ready to retire 540,000 pesos of its own notes in correspondence with the first gold deposit of 600,000 pesos. In view of the satisfactory transactions of the Bank 20 per cent. was distributed in dividends for the fiscal year ending in 1897. Its manager is Mr. José Andrés Coronado. Its Board of Directors include Messrs. Francisco Peralta, Aniceto Esquivel, Fabian Esquivel, Daniel Nuñez and Manuel Sandoval.
The manager of the Banco Anglo-Costaricense is Mr. Percy G. Harrison, and its Board of Directors is composed of Messrs. Adrian Collado, Simeon Guzmán, Telésforo Alfaro, Gerardo Jager and Mariano Montealegre.
The situation of the Banco Anglo-Costaricense on June 30, 1897, was in pesos as follows:
Foreign commercial obligations were settled through these banks on the following terms: Drafts at three days’ sight on Paris cost one per cent. less than on London on same time; those at ninety days’ sight on Paris or London cost one per cent. less than at three days’ sight; those at sixty days’ sight, on New York, cost two per cent. less than on three days’ sight. Submarine cable transfers of money cost two per cent. more than by three days’ sight drafts with the cost of telegraphing added.
Until the 24th of March, 1897, the Bank of Costa Rica sold drafts on New York for five points more than for those on London. Since the 25th of March, 1897, the difference of exchange between those cities has been eight per cent.
The rates on London, in October and November, 1897, were 127, and those on New York were 135.