The Dakota chief. (Gann Valley, Buffalo County, S.D.) 18??-1913, 1907-12-12
Presidents JMessage

uary action, or allegation OF Such action,
on the part of the executive, or Of diver
gent interpretations by the courts. 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 crushing out competi-
| ton. the prevention of inhation of capital,
and the prohibition of u corporations max
ing exclusive trade with itself condition
Of having any trade with itself. Reasona-
BILE agreements between, or combinations
| Of. corporations should be permitted, pro-
vided they are first submitted to and ap-
proved by some appropriate government
body. TO confer upon the national govern
ment, in connection with the amendment /
advocate In the antitrust law, power of SUI
pervision over big business concerns en-
gagged in interstate commerce, would bene-
hit them as it has benefited the national
banks. In the recent business crisis II Is
noteworthy that the institutions which
fa,led were institutions which were not
under the supervision and control Of the
national government. Those which were
under national control stood the test.
Those who fear, from any reason, the ex-
tension 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 inspection law recently
enacted.
Pure Food Law.
Incidentally, in the passage of the pure
food law the action of the various State
food and dairy commissioners showed in
striking fashion how much good for the
whole people results from the hearty CO.
operation Of the Federal and State officials
in securing a given reform.
Currency.
In my message to the Congress q year
ago ! called your attention to the condi-
tion Of our currency laws. The national
bank act has ably served great purpose
in aiding the enormous business develop
ment of the country, and within ten years
there has been an increase in circulation
per capita from $21.41 TO S33.OS. For
several years evidence has been accumulat-
| ing that additional legislation Is needed.
| The recurrence Of each crop season empha-
sizes the defects of the present laws. There
must soon be a revision Of them, because
| to leave them as they are means to incur
| liability of business disaster. There Is
need Of a change. Unfortunately, however,
| many OF the proposed changes must be
| ruled from consideration because they are
| complicated, are not easy OF comprehen-
| sion, and tend to disturb existing rights
| and interests. ! do not press any especial
| plan, but ] again urge on the Congress the
need of immediate attention to this mat
| ter We need a greater elasticity in or
| currency; provided. of course, that we rec
| ognize the even greater need of a safe and
secure currency. There must always be
| the most rigid examination by the national
| authorities. Provision should he made for
an emergency currency. The emergency is
| sue should, of course be made with an eff
| fcctive guaranty, and upon conditions care
| fully prescribed by the government Such
| emergency issue must be based on adequate
! securities approved by the government, and
| must be issued under a heavy tax. This
would permit currency being issued when
| the demand for it was urgent, while secur-
| ing its retirement as the demand fell off.
| We must also remember that even the wis
| est legislation on the subject can only ac-
| complsh a certain amount No legislation
| can by any possibility guarantee the busi-
| ness community against the results of spec
| ulative folly any more than 1t can guar
| antee an individual against the results of
! his extravaganza. When an individual mort.
| cages his house to buy an automobile hs
| invites disaster; and when wealthy men,
| or men who pose as such, or are unscrupu-
| lously or foolishly eager to becomesuch. IN
! dulge in reckless speculatior,-especally If
| 1t is accompanied by dlshonesty-they
| ieopardze not only their own future but
| Zens, for they expose the whole business
| community to panic and distress.
Revenue.
The income account of the nation 10 In a
| most satisfactory condition. For the six
fiscal years ending with the 1st of July last,
| the total expenditures and revenues of the
| national government, exclusive of the postal
| revenues and expenditures, were, in round
| numbers, revenues, $3465, 900 900, and ex-
penditures, 100000 The net excess
| Of income over expenditures, including in
| the latter the fifty millions expended for
, the Panama canal. was one hundred and
| ninety million dollars for the six years, an
average of about thirty one millions q year.
| This represents an approximation between
| income and outgo which 1t would be hard
| to improve. The satisfactory working of
! the present tariff law has been chiefly re-
| sponsible for this excellent showing. New
| ertheless, there is an evident and constant
| ly growing feeling among our people that
| the time Is rapidly approaching when our
| system Of revenue legislation must be re-
| vised.
The Tariff.
This country is definitely committed to
the protective system and any effort to up
| root 1T could not but cause widespread IN
| dustrial disaster. IN other words, the prin-
| Ciple of the present tariff law could not
with wisdom be changed But in q coun-
try Of such phenomena growth as ours it
! is probably we'll that every dozen years or
| so the tariff laws should he carefully scru-
| tiniZed so as to see that no excessive or
! improper benefits are conferred thereby,
| that proper revenue is provided, and that
| our foreign tpGde Is encouraged. There
! must always be minimum a tariff
which will not only allow for the collection
of an ample revenue but which wtll at least
make good the difference in cost OF produc-
| tiOn here and abroad; that 10, the differ
| ence in the labor cost here and abroad, for
| the wellbeing of the wage-workcr must
| ever be cardinal point of American pol
! icy. The question should be Approached
| purely from business standpoint; both
| the time and the manner Of the change be-
| ing such as to arouse the minimum of agi.
| tatiOn and disturbance in the business
| world, and to give the least play for selfish
/ and factiOnal motives. The sole considera-
| ton should be to see that the sum total of
| changes represents the public good. This
| means that the subject cannot with wis
| dim be dealt with In the year preceding a
presidential election, because as matter
| of fact experience has conclusively shown
| that at such a time 1t Is impossible to get
| men to treat 1t from the standpoint Of the
| pnh1ip GOOD m ,anf tho ,,,,.
time to deal with the matter 10 immedia te,
| ly after such election.
Income Tax and Inheritance ce Tax.
| When our tax laws are revised The CUES
| tion OF an income tax and an Inheritance
tax should receive the careful attention OF
| our legislators. In my judgment both OF
| these taxes should be part Of our system OF
| federal taxation. l speak diffldently about
| the income tax because one scheme for an
| income tax was declared unconstitutional by
| the supreme court: while in addition 1t is
| a difficult tax to administer In its practi.
| cal working, and great care would have to