Arizona republican., 1905-12-06
JOINT STATEHOOD IS ORDERED
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commercial interests which are clearly national in character. My predecessors have repeatedly recognized that the foreign business of these companies is an important part of our foreign commercial relations. During the ad- ministrations of Presidents Cleveland Harrison, and Mckinley the state de- partment exercised it's influence through domestic channels, to prevent unjust discrimination by foreign coun- tries against American insurance com panies. These negotiations illustrated the propriety of the congress recog- nizing the national character of in Surance, for in the absence of federal legislation the state department could only give expression to the wishes of the authorities of the several states, whose policy was ineffective through want of uniformity.
 I repeat my previous recommenda- tion that the congress should also con- slider whether the federal government has any power or owes any duty with respect to domestic transactions in in surance of an interstate character. That state supervision has proved in- adequate is generally conceded. The burden upon insurance companies, and therefore their policy holders, of con- flicting regulations of many states, is unquestioned, while but little effective check is imposed upon any able and interruptions man who desires to ex- ploit the company in his own inter est at the expense of the policy hold CTS and of the public.
 THE REVENUES.
 There is more need of stability than of the attempt to attain an ideal per lection in the methods of raising reve- nue; and the shock and strain to, the business world certain to attend any serious change in these methods ren- der such change inadvisable unless for grave reason. It is not possible to lay down any general rule by which to determine the moment when the reasons for will outweigh the reasons against such a change. Much must depend, not merely on the needs, but on the desires, of the people as a whole, for needs and desires are not necessarily identical. Of course no change can be made on lines benefi- cial to, or desired by, one section or one state only. There must be some thing like a general agreement among the citizens of the several states, as represented in the congress, that the change is needed and desired in the
 
 there should then be a sincere, intelli- gent, and disinterested effort to make it in such a shape as will combine, so far as possible, the maximum of good to the people at large with the mini mum of necessary regard for the spe- cial interests of localities or classes. But in time of peace the revenue must on the average, taking a series of years together, equal the expenditures or else the revenues must be increased. Last year there was a deficit. Unless our expenditures can be kept within the revenues, then our revenue laws must be readjusted. It is yet too early to attempt to outline what shape such a readjustment should take for it is as yet too early to say whether there will be need for it. It should be con- sidered whether it is not desirable that the tariff laws should provide for ap plying as against or in favor of any other nation maximum and minimum tariff rates established by the congress so as to secure a certain reciprocity of treatment between other nations and ourselves Having in view even larger considerations of policy than those of a purely economic nature, it would, in my judgment, be well to endeavor to 
 nections with the other peoples of this continent I am happy to be able to announce to you that Russia now treats us on the ost-favored- nation basis.
 I earnestly recommend to the con- gress the need of economy and to this end of a rigid scrutiny of appropria- tions. As examples merely, call your attention to one or two specific mat ters. All unnecessary offices should be abolished. The commissioner of the general land office recommends the abolishment of the office of re- ceiver of public moneys for United States land offices. This will effect a saving of about a quarter of a million dollars a year. AS the business of the nation grows it is inevitable that there should be from time to time a legiti- mate increase in the number of offi- cials, and this fact renders it all tae more important that when offices be- come unnecessary they should be abolished. In the public printing also a large saving of public money can be made. There is a constantly growing tendency to publish masses of unim portant information. It is probably not unfair to say that tens of thou sands of volumes are published at which no human being ever looks and for which there is no real demand whatever.
 Yet, in speaking of economy, I must in no wise be understood as advocat ing the false economy which is in the end the worst extravaganza. To cut down our navy, for instance. would be a crime against the nation. To fail to push forward all work on the Pan anna canal would be as great a folly.
 CURRENCY.
 In my message of December ?, 1902, to the congress 1 said:
 Interest rates are a potent factor in business activity, and in order that these rates may be capitalized to meet the varying needs of the seasons and of widely spread communities, and to prevent the recurrence of financial stringencies which injuriously affect legitimate business, it is necessary that there should be an element of elasticity in our monetary system. Banks are the natural servants of commerce. and uDOn them should be