Waterbury evening Democrat., 1905-12-05

nies. These negotiations illustrated the propriety of the congress recognizing the national character of insurance, for in the absence of federal legislation the state department could only give ex- pression to the wishes of the authori- ties of the several states, whose policy was ineffective through want of uni formity.
 I repeat my previous recommends tion that the congress should also con sider 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 ficting regulations of many states is unquestioned, while but little effective check is imposed upon any able and un- scrupulous man who desires to exploit the company in his own interest at the expense of the policy holders and of the public. The inability of state to regulate effectively insurance corpora lions created under the laws of other states and transacting the larger part of their business elsewhere is also clear. As remedy for this evil of con nicting, ineffective and yet burdensome regulations there has been for many years widespread demand for federal supervision. The congress has already recognized that interstate insurance may be a proper subject for federal legislation, for in creating the bureau of corporations 1t authorized it to pub fish and supply useful information con corning interstate corporations, "in- cluding corporations engaged in insur- ance." It is obvious that if the compi- lation of statistics be the limit of the federal power 1t is wholly ineffective to regulate this form of commercial in tercourse between the states, and as the insurance business has outgrown in magnitude the possibility of ade- .quate state supervision the congress should carefully consider whether fur ither legislation can be had. What is said above applies with equal force to fraternal and benevolent organizations which contract for life insurance.
 The Revenues.
 There is more need of stability than of the attempt to attain an ideal per lection in the methods of raising rev enue, and the shock and strain to the business world certain to attend any serious change in these methods render such change inadvisable unless for grave reason. It is not possible to lay down any general rule by which to de- termine the moment when the reasons for will outweigh the reasons against such change. Much must depend, not merely on the needs, but on the desires, of the people as whole, for needs and desires are not necessarily identical. Of course no change can be made on lines beneficial to or desired by one section or one state only There must be something like general agreement among the citizens of the several states as represented in the congress that the change Is needed and desired in the in- terest of. the people as a whole, and there should then be sincere, intelli- gent and disinterested effort to make 1t in such shape as will combine. so far as possible. the maximum of good to the people at large with the minimum of necessary disregard for the special interests of localities or classes, but in time of peace the revenue must on the average, taking a series of years to- gether. 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 as yet too early to attempt to outline what shape such readjustment should take, for it is as yet too early to say whether there will be need for it. It should be considered whether it. Is not desirable that the tariff laws should provide for applying as against or in favor of any other na- ton maximum and minimum tariff rates established by the congress, so as to secure certain reciprocity of treat ment between other nations and our selves. Having in view even larger considerations of policy than those of a purely economic nature, 1t would, in my judgment. be we'll to endeavor to bring about closer commercial connec- tions with the other peoples of this continent. I am happy to be able to announce to you that Russia now treats us on the most favored nation basis.
 Economy In Expenditures.
 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 receiver of public moneys for United States land offices. This will effect 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 legitimate in- crease in the number of officials. and this fact renders it all the more i'm portant that when offices become un- necessary they should be abolished. In the public printing also large saving of public money can be made. There Is a constantly growing tendency to