Gardnerville record. (Gardnerville, Nev.) 1898-1902, 1899-12-26
NeWlandS Condemns The
Currency Bill
More Basic MOney Needed.
Explains the Present Prosperity. Says It vndcates The
Bmetaists- The Finarces Since 1893.

as to the condensation of labor. Tie
gold trust produced the industrial trusts
The cause for their organization was
falling prices and the necessity of cheap
er production, and SO the various indust-
ries were combined; improved machinery
was secured; middlemen were dispensed
with; clerks, salemen and officials were
consolidated and the result was cheap
ened production which sought the mar
kets of foreign couetries. Thus the great
demand for our agricultural as well as
our manufactured products brought to
this country within three years very
nearly $300000000 in gold and the in
crease in prosperity can be directly
traced, not to the repeal of the Sherman
act: not to the passage of the DINGHY act.
though the latter WIS factor by doing
awayiwith deficit of revenue. but to the
incaeased volume of money caused by q
favorable trade balance which restored
the per capita circulation in this country
which prevailed prior to 1893, WIS.,; S2a
per head per capita during interme-
diate years having fallen as low as S23
per head.
| BANK CREDITS INCREASED.
The effect of this increase of money
} was to increase the gold in the treasury
and to increase the cash reserve in the
banks Each dollar of additional cash
reserve gave an opportunity of the exten-
sion of So OF credit by the banks. and
thus hundred million additional cash
IN the banks meant 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 a withdrawal of cash
from the banks, which in turn. compelled
the banks to call in their loans The
loans made by national banks had beer
diminished from over two billion dollars
in 1892 to one billion, eight hundred and
seventy-one million in 1893 and in 1885
these loans were increased to two bill
llion, two hundred and fourteen millions.
and in 1899 to two billion. four hundred
and ninty-six million dollars. In other
words, between 1893 and 1866. the
national bank loans 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 or bimetallists. that admitting
the assumption of monometallists that
most of the transaction of the country
are accomplished by checks as distin-
guished from cash. It is also true that
he aggregate amount of check depend
upon the credits issued by banks. and
that the amount of credits issued by
banks depends upon the cash within,
Its vaults, and the increase of five hun
dred millions in two years of bank cred
Its and the consequent multiplication of
exchanges through bank checks is direct
ly traceable about one hundred millions
OF additional cash deposits in the nation
al banks.
Though no accurate data can be OBJ
tanned as to state the private banks. it is
safe to say that their credits had increas-
ed to nearly the same extent as that OF
national banks, and it is fair to assume
that within two years the bank credits
have increased at least eight hundred
millions by the deposit with the banks
two hundred millions of additional
money, secured by favorable balance
of trade, for it must be recollected that
OF the three hundred millions of increas
ed money secured during the past three
years at least one hundred millions has
gone into the federal treasury. and there
fore is not basis for bank credits.
The increase of prosperity during the
past two years demonstrates the correct
ness of the theory entertained by bimetal-
lists, viz. that all other things being
equal, prices will depend upon the guam
Wy VI hiViies III tlldb all III
crease of the money volume meant
higher prices and a diminution of the
money volume meant low prices.
The decentralization of silver was
started in 1873, at time when the pro-
duction of gold was lower than it had
been for twenty years. There was no ex
pectations 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 diminishing, and
vet when more metallic money was con-
stantly required TO meet the increasing
wants of business. il was proposed to de-
moneiize the metal which was increasing
in product and to give monetary eff
cheney only To the metal which was d.
minishing in product. The gradual fall
of prices from 1873 to 1897 accompanied
thu gradual and progressive reduction in
| le use of silver, until the whole world
suffering from the appreciation of gold
and the depreciation of property and