Mangled accented characters

I am having a problem with my accented characters
getting mangled.
Here is a snippet of the code I ran to reproduce the
problem
>>>Code starts
        Connection con =
DriverManager.getConnection(url, user, pwd);
        query = "INSERT INTO container (catparent,
catid, position, catname, cattype) values (2, 1, 1,
'Educaci��n', 0)";
        stmt = con.createStatement();
        stmt.execute(query);
        con.close();
<<<Code ends


My database is encoded using LATIN1
        List of databases
   Name    |  Owner   | Encoding
 directory | dpr      | LATIN1

When I do a Select using psql for the row above I get
the following:


 catid |  catname  | catparent | position | cattype |
description | keywords
-------+-----------+-----------+----------+---------+-------------+----------
     1 | Educaci��n |         2 |        1 |       0 |
            |

Could someone explain to me how to insert Educaci��n
as Educaci��n instead of as Educaci��n.  Thank you.

Yamir



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