Wadsworth semi-weekly dispatch. [volume] (Wadsworth, Nev.) 1899-1904, 1899-12-26

$3.50 - 1ttN Ga0oO0 ~ q lthNOi aDAC
trade balance which restored the per
capita circulation in this country WHICH
prevailed prior to 1893, viz, 500 per
ate years having fallen as low as $23
per head.
BANK CREDITS N~cREAsED.
The effect OF this increase of money
was to increase the gold in the treasury
and to increase the cash reserves in the
banks. Each dollar of additional cash
reserve gave an opportunity of the FIX
tension of 50 of credit by the banks, and
thus a hundred millions additional cash
in the banks e a possible extension
of credit to the extent of five hundred
millions which, thus increased the check
transactions OF the country. The panic
had been caused by withdrawal of cash
from the banks, which in turn, COM
pelled the ban IS to call in their loans.
The loans made by national banks had
been diminished from over two billion
dollars in 1892 to one billion eight hun
kred and seven .y-one million in 1893.
and In 1898 these loans were increased
to two billion two hundred and fourteen
millions, and in 1899 to two billion four
hundred and ninety six million dollars.
In other words, between 1893 and 1899
national bank ioans had been increased
over six hundred millions, five hundred
millions of which was accomplished be-
tween 1897 and 1899.
This statement is itself proof of the
contention OF bimetalists, that admitting
the assumption of the monometalists
that most OF the transactions of the
country arc accomplished by checks as
distinguished from cash. 1t is also true
that the aggregate amount OF checks de-
ponds upon the amount OF credits issned
by banks depends upon the cash within
their vaults. and the increase OF five
hundred millions in two years of bank
credits and the consequent multlplica-
ton OF exchanges through bank checks ia
directly traceable t o about one hundred
millions OF additional each deposited in
the national banks.
Though no accurate data can be OBJ
tanned as to state and private banks ii
is safe to say that their credits had in.
creased to nearly the same extent as
that OF the national bank. and it is fair
to assume that within W. years the
bank credits have been increased at least
eight hundred millions by the deposits
with the banks of less than two hum
bred millions of additional money, &C.
cured by a favorable balance of traiS,
Tor it must lie recullrcted that OF the
three hundred millions of increased
money secured during the past three
wears at least one hundred millions has
gone into the federal treasury, and 1t is
therefore not a basis for bank credits.
The increase of prosperity during the
past two years demonstrates the correct
hess of the theory entertained by binet-
~alisLs, viz, that all other things being ,
equal, prices will depend upon the
quantity OF money in circulation; that
an increase OF the money volume meant
higher prices and a %diminution ol the
money volume meant lower prizes.
The decentralization OF silver was
in 1873 at II time when the pro
duction OF gold was lower tnan it had
been for " enty years. There Was no
expectation at that time OF an increase
in the production OF gold on the CON
trary, The general opinion WAS that the
OF gold was STEADILY diminishing,
and yet, when mere metallic money was
constantly required to meet the increns-
ing wants OF business, it was proposed
to ,iemonetize the metal which WAS in
CTtds1tlk III pTutluCtS III W RiNc IlUtlttdTJ
efficiency only to the II etal whirh was
diminished in product. The gradual fall
in prices IRON 1873 10 1897 accompanied
the gradual and progressive reduction
in the use OF silver, until the whole
world, suffering from the appreciation
OF gold and the Depreciation oi property
and products, started out in search Tor
gold. The result has been Il tremendous
increase in the prodnct OF gold. the an
nual product today being nearly treble
the annual product when the process vi
silver demonstration commenced.
THE CLAIM OF HI B~IMETALLIsTs.
The increased production of metallic
money had relieved the situation and
proved the contention vi binietal lists n
to the quantitative theory. All that in
t~elligent b~inletsllists claimed was that
The world needed more money that all
the gold and all the silver thus Jar pro-
duced had not been sufficient to meet
the worlds demand for money that the
world was more likely to get q snificient
supply from TWO sources than from one ;
that the vital question WAS II sufficient
supply; that the rise in prices and the
increase in prosperity consequent upon
the larger production vi gold during the
last ~ . years and the Increased pros
peritv in this country consequent npon
the addition TO its money volume OF
nearly three hundred millions, obtained
by u favorable balance Of trade, have
proved me contention VI the himetallists
and vindirtei 10y their theory.
BASIC MONEY CONTRACTED.
The vice ri the proposed action was,
Mr.. Newlands claimed. that the Rrpub-
lican party PROPOSES to take advantage
Of the increasing production Of gold Tor
the elimination Of the existing stock OF
silver in this cuuntrv ior use. The
metallic stock OF the country consists of
about nine hundred millions OF gold and
and six hundred millions of silver. hf-