The Monticellonian., 1907-12-05
Presidents Recommen- dations on National
 Legislation.
AS TO CURRENCY QUESTION
Many Defects of Present System Are Pointed Out by Chief
 Executive.
NOT TIME FOR TARIFF
Postponement of Discussion of Re- vision of Schedules Until After Presidential Election Urged - Me- eessity for Improving Waterways of the Country.

Presidential Election Urged - Me-
 cessty for Improving Waterways of
 the Country.
 Washington, Dec s.-Presldent Roose- vel. in his annual message deals vigor- ously with matters of national impor- tance. Referring to the recent disturb ance in financial circles he points out that the hoarding of money by the peo- Die, in%ead of keeping it in sound banks, was the first cause of financial stringency and grave error. He pays tribute 10 the general honesty of the men engaged in the banking business.
 After quotations from his last annual message which dealt with the necessity of governmental regulations, the presl- dent asserts that his views have in no way changed and declares it is the duty of the national government to embody In action the principles he then expressed.
 Disclaiming any idea of advocating cen tralization the president insists upon the necessity for federal control of the rail- roads Of the country through the inter state commerce commission, and also urges legislation looking to the proper control of the great business concerns en- gagged in interstate business this control to be exercised for their own benefit and prosperity no less than for the protection Of investors and of the general public.
 Wants Federal Control.
 Declaring that modern industrial con ditions are such that combination is not only necessary but inevitable the presi- dent refers 10 his message of a year ago concerning necessary changes in the antitrust laws. He goes on T ask for full power to be given the federal government. because no single state can by legislation effeetually cope with these powerful corporations en- gagged in interstate commerce. and. while doing them full justice. exact from them in return full justice 10 others. The con ditions of railroad activity. the condi- tions of our immense interstate com merce. are such as to make tie central government alone competent to exercise full supervision and control.
 ''The antitrust law should be made both more efficient and more in harmony with actual conditions. Ii should be so amend ed as to forbid only the kind of combina- fion which does harm tu the general pub lie. such amendment te be accompanied by. or ta be an incident of. a grant of su- peryisorv power to the government oyer these big corporations engaged in inter state business This should be accom- panied by provision for the compulsory publication of accounts and the subjee- tion of books and papers to the inspee- tion of the government officials. A be- ginning has already been made for such supervision by the establishment of the bureau eff corporations.
 Among the points to be aimed at should be the prohibition of unhealthy competition such as by rendering service at an actual loss fer the purpose of crush ing out co.yetttion. the prevention of in- hatian of capital, and the prohibition of corporation,s making exclusive trade with itself a condition of having any trade with itself Reasonable agreements between. or combinations of corporations should be permitted. provided they are first submitted to and approved by some appropriate government body.
 Like National Bank supervision
 ''rhe congress has the power to charter corporations to engage in interstate and foreign commerce, and general law can be enacted under the provisions of which existing corporations could take out fed eral charters and new federal corpora tions could be created. An essential pro- vision of such law should be d method of predetermning by some federal board or commission whether the applicant for a federal charter was an association or combination within the restrictions of the federal law. The supervision established might be analogous to that now exercised over national banks. At least, the anti trust act should be supplemented by spe- cifc prohibitions of the methods which ex- perienee has shown have been of most service in enabling monopolistic combina- tions te crush out competition. The real owners of a corporation should be com pelled to do business in their own name The right to hold stock in other corpora tions should hereafter be denied to inter state corporations. unless on approval by the proper government officials and a prerequisite 10 such approval should be the listing with the government of all owners and stockholders, both by the pn nor ion xHHf1ff1 the corporation in which such stock is owned
 The Currency Question.
 On the question of the currency the president calls attention to his last an nual message wherein he pointed out that our present system is defective and showing the need of a change. In that message he said:
 National banks should be permitted to issue specified proportion of their cap ital in notes of a given kind the issue to be taxed at so high a rate as to drive the notes back when not wanted in legiti- mate trade. This plan would not per init the issue of currency to give banks additional profits. but to meet the ener- genoy presented by times of stringency I do not say that this is the right sys- tenn l only advance 1t to emphasize my belief that there is need for the adop- tion of some system which shall be all- tomatic and open to all sound banks so as to avoid all possibility of discrim- tnation and favoritsm. Such a plan would tend to prevent the spasms of high money and speculation which now ob- tain in the New York market for at present there is too much currency at certain seasons of the year, and it's ac- emulation at New York tempts bankers to lend it at low rates for speculative purposes: whereas at other times when the crops arep being moved there is ur- gent need for large but temporary in- crease in the currency supply. It must never be forgotten that this question concerns business men generally quite as much as bankers especially is this true of stockmen, farmers and business men in the west; for at present at certain seasons of the year the difference in in- terest rates between the east and west