Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1899-12-21
Newlands' Condemns the Cur.
rency Bill.
Continued frem Page Two,


hundred millions has gone into the fed
eral treasury, and therefore is not q basis
for bank credits.
The increase of prosperity during the
past two years demonstrates the correct
ness of tue theory entertained by BIZ
metallists, viz, that all other things being
equal, prices will depend uponthe guam
tity of money in circulation; that an in
crease of the money volume raeant
higher prices and a diminution of the
money volume meant lower prices.
The decentralization of silver was
started in 1873, at a time when the pro-
duction of gold was lower than it had
been for twenty years. There was no e1-
pectation at that time of an increase in
the production of gold; on the contrary
the general opinion was that the output
of gold was steadily diminishil e. and
yet, when IN ore metallic money was CON
stantly required to meet the increasing
wants OF business, it was proposed to de-
mene;ize the metal which was "reasing
in product and to give monetary eff
cheney only TO the metal which was di-
minishing in product. The gradual fall
of prices from 1873 to 1897 accompanied
the gradual and progressive red action in
the use OF silver, until the whole world,
suffering from the appre@ latlOu Of gold
and the depreciation Of property and pro
ducts, started out in a search for gold,
The result has been "a tremendous in
crease in the product of gold, the annual
product today being nearly treble the an
uual product when the process of silver
demOnetiZati0n commenced.
THE CLAIM OF H B~IMETALLI>TS.
The increased production of metallic
money had relieved the situation and
proved the contention Of bimetallists as
t. the cumulative theory. All that III
telligent bimetallists claimed was tina
the world needed more money; that a
the gold and all the silver hui far pa
duced had not been sufficient 10 meet IN,
worlds demand fer money; that tn,
g world was more likely to get a Sutlicien
supply from two sources than from oHe
that the vital question was a Sutticien
: supply; that the rise in prices and tn
Increase OF prosperity consequent upon
the larger production of gold during tn
last two years and the increased pros
: perity in this country consequent upUI
the addition to its money volume Q
I nearly teree hundred millions, obtainet
f by a favorable balance of trade, hav
proved the cunteRtiUn Of the bimetallist
and vindicated their theory.
RASIC MONEY COSTR ACTED
: The vice Of the proposed action wa
Mr.. Newlands claimed, that the Reput
q llcan party now proposes to take adVan
tage of the increasing production of gol
for the elimination of the existing stOc
OF silver in this country from use. TIL
metallic stock of the country consists {
about nine hundred millions of gold an
!. six hundred millions of silver, tiftee
e hundred milliOns in all. This is the onl
basic money, the only money of final rt
c dempIion.
l. 1t is true that there are ~greenbackS an
national bank notes in existence, bu
% these are merely promisSory notes pay;
, bic III metallic money, issucd either b
the government or the banks. Viii
tHNN diA III III oA'IldiisNN they XII II
Il part of the money of the country; on IL
l. contrary, they themselves are redeem.
a bic in money. The metallic money NEE
ed no redemption; gold needed no r
It demption; silver needed no redemption
but the purpose of the dominant part
- was to make the six hundred millions
silver redeemable in gold by the trea
ury. 1t was tru that they used the teri
- "~exchange," that is to say, the treasuI
ID was to exchange gold for silver, but
+ gold was to be given for silver, clear
d silver would turn into a debt redeemab
b in gold and nus become q liability OF II
treasury. BY this process the bss
money Of the country was to he co
tracted from fifteen hundred millions
nine hundred millions, and unless rele
st was given ia some other way the contra
ton would be disastrous.