Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1899-12-22

Tie markets OF foreign countries
Thus the great demand for our agri.
cultural as well as our manufactured
products brought to this country
within three years very nearly $500
100000 in gold, and the increase in
prosperity al be directly traced. not
to the repeal Of the Sherman act. not
to the passage Of the DinGley act,
though the latter was a factor by
doing away with 4 deficit OF revenue,
but to the increased volume Of money
caused by a favorable trade balance
which restored the per capita circu-
la;ion in this country which prevailed
prior to 1898. viz, S25 per head.
the per capita during inter mediate
years having fallen as low as S23 per
head.
BASk CREDITS INCREASED.
The effect of this increase OF
money was TO Increase the gold in
the treasury and To increase the cash
reserves III the banks. Each dollar
Of additional cash rescrye gave an
opportunity OF the extension OF 50 OF
credit by the banks, aud thus a
hundred millions additional cash in
the banks meant a possible extension
OF credit to the extent OF five hun
dred millions, which thus Increased
the check transactions OF the country
The panic had been caused by a With
drawal OF cash from the banks,
which in turn, compelled the banks
20 call IN uleir loans. The loans
made by national bauks had been di-
minished from over two billion
dollars i'll 1892 TO one billion eight
hundred and sev~enty-one million in
1872 and in 1898 these loans were in
creased TO two billion two hundred
and fourteen millions, and in 1899
these loans were increased to two
billion four hundred and uiuety.six
million dollars. In other words.
between 1893 and 1899 the national
bank loans had been increased over
six hundred millions, five hundred
millions of which was accomplished
between 1887 and 1899.
This statement is itself proof OF the
contention OF bimetalists, that adj
hitting the assumption OF the mono-
metalllsts that nos II :s.S tIausEc
tons Of the country arc accomplish he'd
by checks as distinguished from cash
II Is also irue that the aggregate
amount OF checks depends upon the
amount Of credits issued by banks.
and that the amount Of credits issued
by banks, depends upon the cash
within their vaults, and the increase
OF five hundred millions III two years
of bank credits and the consequent
multiplication Of exchanges through
bank checks is directly traceabIe to
about one hundred millions Of addi-
tiopal cash deposited III the national
banks.
Though no accurate data can be
obtained as 10 the state and private
banks. 1t Is safe 10 say ;ha; their cred
its had increased to nearly tire same
extent as that OF the national banks.
and II Is fair TO assume that within
;wo years tue bank credits have been
Increased az least eight hundred mi!
lions by the deposit with the banks
OF less than two hundred millions of
additional money, secured by IL favor.
abal balance of trade. for il must be
recollec.ed that OF the three hundred
millions OF increased money secured
during the past three years at least
u hundred millions has gone into
the federal treasury. and is therefore
not a basis FOR bank credits.
Tie increase of prosperity during
the past two years demonstrates the
correctness Of the theory entertained
by bimetallists. viz, that all other
things beng equal. prices will le-
pend upon the quantity Of money in
circulation; that an increase 81 the
money volume meant hIghe! prices
and a d~imiDuition Of the money vol.
une meant lower prices.
The characterization Of silver Was
started IN 1873, ST a time when The
production Of gold was lower than i,
had been FOR twenty years. There
was no expectation at that time Of an
increase III the production u gold: on
the contrary, the general opinion we
that tho outpu; Of gold was steadily
diminishing, aud yet, when more the.
tsUic money was constantly required
to meet the increasing wants ., bJsi.
ness, 1t vac proposed 90 demon .;iZa
the metal which sas increasing ~
product and TO give monetary aric.
isncy only IN the metal shich 7as
diminishing IN product. The gradual
fall Of prices from 1873 10 1897 &C
cOmpanied the gradual and prngres
siYc reduction in the use II silver, m.
I'll the whole world. suffering from
the appreciation 81 gold and the de
probation OF property and products,
started ont IN search FOR gold. The
result has been a Tremendous in.
crense in the product II gold, The an
nual product today being nearly
treble the annual product when tho
process % silver decentralization com
mcnced.
THE Cf.,Ga or rHE BIW srNLLfsTs.
The increased production Of metal