These conditions affected most disastrously the business interests of the islands.

Merchants were forced to allow very wide margins in commercial transactions, because they did not know what their goods would actually cost them in local currency upon arrival.

The most important business of the local banks was in reality that of exchange brokers and note shavers.

They hammered the exchange rate down and bought silver, then boosted the rate skyward and sold.
The American army brought in a large amount of gold, but this did not remain in circulation long, as it was exported by the different business concerns, or hoarded.
United States silver money had a limited circulation during the early days of American occupation, but it passed at less than its true value.

An effort was made under the military administration to keep the ratio of exchange at two to one by the purchase from the public of all United States currency offered at that rate to the banks.
For a long time the banks refused to carry private accounts in United States currency, but when it was offered for deposit it was changed into Mexicans with a heavy charge for the transaction, and an account opened in Mexican currency to the credit of the depositor.