The Springfield herald., 1907-12-06
MESSAGE SENT
TO CONGRESS
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 = Ne
cessity for Improving Waterways of
the Country.


tance. Referring to the recent disturb
ance In financial circles he points out
that tho boarding of money by the peo-
pie. instead of keeping 1t In sound banks
was the first cause OF financial stringency
and grave error. He pays tribute TO
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 presi-
dent asserts that his views have in no
way changed and declares II is the duty
of the national government to embody
in action the principles he then expressed
Disclaiming any idea of advocating CEN
trnlization 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 to his message of a year ago
concerning necessary changes in the
antitrust laws. He goes on: II ask for
full power to be given the federal
government, because no single state
can by legislation effectualy cope
with these powerful corporations en-
gnged in Interstate commerce. and. while
doing them full Justice. exact from them
in return full Justice to others. The con-
ditions of railroad activity. the cond-
tions of our immense interstate COM
merce, are such as to make the 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. 1t should be so amend
ed to forbid only the kind of combina-
tion which does harm to the general pub
lie. such amendment to be accompanied
by. or to be an incident OF. a grant of su-
pervisory power to the government over
these big corporations engaged in inter-
state business. This should be accom-
panied by provision for the compulsory
publication of accounts and the subjec-
tion of books and papers to the inspec-
ton of the government officials. a be-
ginning has already been made for such
supervision by the establishment of the
bureau of corporations.
Among the points TO be aimed at
should be the prohibition of unhealthy
competition, such as by rendering service
at an actual loss for the purpose of crush
Ing out competition. the prevention of in
fiation of capital, and the prohibition of
corporations making exclusive trade
with itself n 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 Bunk Supervision.
The congress has the power to charter
corporations to engage in interstate and
foreign commerce, and a general law can
be enacted under the provisions of which
existing corporations could take out fed
eral charters and new federal corpora
tons could be created. An essential pro-
vision OF such a law should be method
of predetermining by some federal board
or commission whether the applicant for
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-
cific prohibitions of the methods which ex-
perience has shown have been of most
service in enabling monopolistic combina-
tions TO crush out competition The real
owners OF corporation should be COM
PEELED to do business in their own name
The right to hold stock In other corpora
tons should hereafter be denied to inter-
state corporations, unless on approval by
the proper government officials. and a
prerequisite to such approval should be
the listing with the government of all
owners and stockholders. both by the
corporation owning such stock and by
the corporation in which such stock is
owned"
After calling attention to the benefits
which the legislation he urges would
confer upon the country, the president
says: Those who fear, from any rea-
son, the extension of federal activity will
do well to study the history not only of
the national banking act. but of the pure
food law, and notably the meat inspec-
ton law recently enacted The benefit to
interstate common carriers and business
concerns from the legislation 1 advocate
would be equally marked.
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 rate as to drive the
notes back when not wanted in legiti-
mate trade. This plan would not per-
nit the issue of currency to give banks
additional profits, but to meet the emer-
gency presented by times of stringency
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 au-
tomato and open to all sound banks,
as to avoid all possibility OF discrim-
ination and favoritism. Such plan
would tend to prevent the spasms of high
money and speculation which now OBJ
tain in the New York market: for at
present there is too much currency at
certain seasons of the year. and its ac-
cumulation at New York tempts bankers
to lend it at low rates for speculative
purposes: whereas at other times when
the crops are being moved there is ur-
gent need Tor large but temporary in
crease in the currency supply. 1t must
never be forgotten that this question
concerns business men generally quite
as much bankers; especially is this
true Of stocltmen. 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
is from six to ten per cent, whereas in
Canada the corresponding difference is
but two per cent Any plan must, of
course. guard the interests of western
and southern bankers as carefully as 1t
guards the interests of New York or
Chicago bankers, and must be drawn
from the standpoints of the farmer and
the merchant no less than from the