It was fortunate for Puerto Rico that it ceased.  The people of the island had become so accustomed to look to this supply of money for the purchase of their necessities that they entirely neglected the development of the rich resources in their fertile soil.  When a remittance arrived in due time, all was joy and animation; when it was delayed, as was often the case, all was gloom and silence, and recourse was had to “papeletas,” a temporary paper currency or promises to pay.

With the cessation of the “situados” the scanty resources of the treasury soon gave out.  The funds of the churches were first requisitioned; then the judicial deposits, the property of people who had died in the Peninsula, and other unclaimed funds were attached; next, donations and private loans were solicited, and when all these expedients were exhausted, the final resort of bankrupt communities, paper money, was adopted (1812).

Then Puerto Rico’s poverty became extreme.  In 1814 there was at least half a million paper money in circulation with a depreciation of 400 per cent.  To avoid absolute ruin, the intendant had recourse to the introduction of what were called “macuquinos,” or pieces of rudely cut, uncoined silver of inferior alloy, representing approximately the value of the coin that each piece of metal stood for.  With these he redeemed in 1816 all the paper money that had been put in circulation; but the emergency money gave rise to agioist speculation and remained the currency long after it had served its purpose.  It was not replaced by Spanish national coin till 1857.

The royal decree of 1815, and the improvements in the financial situation, as a result of the new administrative system established by Ramirez, gave a strong impulse to foreign commerce.  Though commerce with the mother country remained in a languishing condition, because the so-called “decree of graces” had fixed the import duty on Spanish merchandise at 6 per cent ad valorem, while the valuations which the custom-house officials made exceeded the market prices to such an extent that many articles really paid 8 per cent and some 10, 12, and even 15 per cent.

An estimate of the commerce of this island about the year 1830 divides the total imports and exports which, in that year, amounted to $5,620,786 among the following nations: 

Per cent.  Per cent.

West Indian Islands imports      53-12 Exports  26
United States imports            27-14    "     49
Spanish imports                  12-18    "      7
English imports                   2-34    "      6-12
French imports                    2-58    "      6-58
Other nations’ imports            1-34    "      8-34

The American trade at that time formed nearly one-third of the whole of the value of the imports and nearly half of all the exports.

An American consul resided at the capital and all the principal ports had deputy consuls.  The articles of importation from the United States were principally timber, staves for sugar-casks, flour and other provisions, and furniture.[75]