Daily independent. [volume] (Elko, Nev.) 188?-1915, 1899-12-22
Continued from third page.)

IlOhS VI Iue country are accom- puSQeu
by checks as distinguished from cash.
1t is also true 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 in two years
OF bank credits and the consequent
multiplication Of exchanges through
bank checks is directly traceable to
about one hundred millions of addi-
tional cash deposited IN the national
banks.
Though no accurate data can be
obtained as to the state and private
banks, it is safe to say that their cred
it's had increased to nearly the same
extent as that of the national banks.
and it is fair to assume that within
two years the bank credits have been
Increased at least eight hundred mil
lions by the deposit with the banks
Of less than two hundred millions Of
additional money, secured by favor
abal balance of trade, for it must be
recollected that of the three hundred
millions of increased money secured
during the past three years at least
one hundred millions has gone into
the federal treasury. and is therefore
not basis for bank credits.
The 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 1e-
pend upon the quantity of money in
circulation; that an increase OF the
money volume meant higher prices
and diminuition of the money vol
ume meant lower prices.
The decentralization of silver was
started I'D 1873, at a time when the
production OF gold was lower than it
had been for twenty years. There
was no expectation at that time of an
increase Ill the production of gold; on
the contrary, the general opinion was
that the output of gold was steadily
diminishing, and yet, when more me-
tallic money was constantly required
to meet the increasing wants of bust
ness, it was proposed to demonetize
the metal which was increasing in
product and to give monetary effic.
iency only to the metal which was
diminishing in product The gradual
fall Of prices from 1873 to 1897 &C
companied the gradual and progress.
sive reduction in the use OF silver, I'm
til the whole world, suffering from
the appreciation Of gold and the de.
probation Of property and products,
started out in search for gold. The
result has been tremendous JIM
crease in the product Of gold, the an
nual product today being nearly
treble the annual product when the
process Of silver demonstration COM
menced.
THE CLAIM OF THE BIMETAILIsTs,
The increased production of metal.
lie money had relieved the situation
and proved the contel ton Of bimet-
allists as to the quantitave theory.
All that intelligent bimetallists
claimed was that the world needed
moro money; that all the gold and all
the silver thus far produced had not
been sufficient to meet the worlds
demand for money; that the world
was moro likely to get sufficient
supply from two sources than from
ono; that the vital question was
sufficient supply; that the rise in
prices and the increase Of prosperity
consequent upon the larger produc-
ton OF gold during the last two years
and the increased prosperity in this
country consequent upon the addi-
ten to it's money volume of nearly
three hundred millions, obtained by a
favorable balance OF trade, have
proved the contention of the bimetal-