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,
'Educacin', 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 | Educacin | 2 | 1 | 0 |
|

Could someone explain to me how to insert Educacin
as Educacin instead of as Educacin. Thank you.

Yamir

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