Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-12-12
Representative Newlands Condemns
the Currency Bill.
EXPLAINS THE PRESENT PROSPERITY
Says That It indicates the
Bimetallsts.
THE FINANCES SINCE 1898

Representative NewlandS of Nevada
spoke at length in the House today in op-
position to the currency bill. Mr.. Newlands
traced the history Of the country through
the period of depression commencing in
1893. The panic OF 1898 was not caused by
the coinage of silver under the Sherman
act. There We're two causes for this panic.
One was the. constantly diminishing price
vi ich this country was receiving from the
export of its farm products, the price of
these products being largely determined by
the prices in silver countries, whose eX-
ports were stimulated by the low price of
silver. Another Cause was the failure of
the Mckinley act to meet expectations of
its trainers as a revenue producer The
free admission of sugar took away a large
annual revenue for which no sufficient sub
stitution was offered by the Mckinley bill.
and the bill which was intended to cure
the evils OF a surplus revenue presented all
the disadvantages of a deficit revenue. The
country therefore was drained in two ways:
The national treasury was drained of its
Accommodations by a deticit-producing rev.
enue bill. and the country was drained by
an adverse balance of trade owing to the
fact that its agricultural products had been
lessened in their Gebt-paying capacity. Ac-
corIpaHying this came a demand for gold in
Austria, and the greenbacks and treasury
-
means of drawing out the gold required
for the Austrian treasury.
Mr. Cleveland, aided by the banks and
the metropolitan press, took advantage of
the situation to raise the false cry that the
Sherman act was the cause of existing con-
ditions, and the banks themselves IN their
keen desire to stop the coinage of silver,
created a clamor which in turn caused a
run upon the banks. The withdrawal of de-
posts and the constant diminution of bank
credits was a natural result. The Cleve-
land administration having come into pow
er, its first act was to repeal the Sherman
act. and the second was to pass the Wilson
bill. No more unfavorable time could have
been taken for the lowering of the tariff
wall. The very purpose of this act was to
let more foreign goods in; every foreign
product which was admitted displaced SO
much American labor, and thus readjuSt-
ment of the labor question throughout the
country was forced.
The country therefore during Cleveland S
administration was subjected to two great
disturbances; one financial. by cutting off
the increase of money throughout the
United States by the repeal of the Sher-
man act, when more money was needed /;
the other was industrial involving the low
ering of the tariff wall and a proportional
substitution in our own markets of foreign
products for products produced by the la
Dor of our own people. During all this
time confident predictions were made of
an immediate advance in prosperity, to be
caused by increased confidence. None Of
these predictions We're realized, and the re-
publican party came into power upon the
promise of a protective tariff measure and
of an increased volume CT money to be Sc
cured by free coinage of silver through in
ternational agreement
AS soon as a republican victory was an
Eounced 1t was declared that confidence
was restored and that the wheels of in
dustry would Immediately move. The
whistles of the factories throughout the
country heralded the coming of renewed
prosperity and activity, but Congress met
in the following December without the re-
alization of this confident prediction. 1t
was then insisted that as soon as the pro-
would move. and so the Dingley bill was
framed and allowed to take its course I'M
obstructed by the opposition and aided by
the friends of silver in the Senate. The bill
passed, and again the whistles were
sounded, but the wheels did not move and
Congress adjourned later on without any
Change in the condition of the country.