Rocky Ford enterprise., 1908-12-11


To the Senate and House of Represen-
tauves: The financial standing of the
nation at the present time is excellent.
and the financial management of the ma
tion's interests by the government dur
ing the last seven years has shown the
most satisfactory results. But our cur
rency system is imperfect, and it is ear
nestly to be hoped that the currency
commission will be able to propose a
thoroughly good system which will do
away with the existing defects.
During the period from July l, 1891. to
September 30. 1908. there was an Increase
In the amount OF money in circulation of
tso2 s9i. 800. The increase in the per capita
during this period was S1.o6. Within this
time there were several occasions when
It was necessary for the treasury de-
partmeDt to come to the relief OF the
money market by purchases or redemp-
tions of United States bonds: by increas-
ing deposits In national banks. by slim
ulating additional issues of national bank
notes. and by facilitating importations
rency system has made these proceedings
necessary, and they were effective until
the monetary disturbance in the fall of
1901 immensely increased the difficulty Of
ordinary methods of relief. By the mid
die of November the available working
balance In the treasury had been reduced
to approximately $j,o0O.0O0. Clearing
house associations throughout the coun-
expedicnt of issuing clearing house GER
uhcates. to be used money. In this
emergency IL was determined to invite
subscriptions for s50.00J.0o0 Panama canal
bonds. and $ioo.0oo.0oo three per cent.
certificates of Indebtedness authorized by
tho act OF June u. 1895. 1t was proposed
TO rodeposit In the national banks the
proceeds of these issues. and to permit
their use as basis for additional circu-
lating notes Of national banks. The
af xxn n
great that II was necessary to Issue only
2t63f $50 OF the Panama bonds and tl5.-
~. 500 of the certificates of Indebtedness.
During the period from July ]. 1901. to
September % 1905. the balance between
I l'he net ordinary receipts and the net
i>dinary expenses OF the government
~showcd a surplus In the four years 1870.
100. 1906. and 1907. and deficit In the
years isos. 1886. 1900 and n fractional part
OF the fiscal year 1909. The net result
was n surplus of SO. -. tls.I The nnan-
cial operations of the government during
this period, based upon these differences
between receipts. and expenditures. re-
suited in n net reduction OF the Interest,"
bearing debt of the United States from
sss7. .64o to Sss7, 1850. notwithstanding
that there had been two sales OF Panama
canal bonds amounting In the aggregate
TO s5t.S5I. .sso. and an issue Of three per
cent. certificates OF Indebtedness under
the act of June r. IsaS amounting to
is.tss.soe Refunding operations OF the
treasury department under the act of
March H. 1900. resulted in the conver-
sion into two per cent. Consols of 1900 OF
seco. sc9. 80 bonds hearing higher rates OF
interest. a decrease OF s.Ss7,s55 In the
annual Interest charge resulted from
these operations.
In short. during the seven years and
three months there has been a net sur
plus Of nearly one hundred millions OF
receipts over expenditures. a reduction
Of the Interest bearing debt by ninety
millions. In spite OF the extraordinary eN-
pense Of the PaI ANA canal. and a saving
Of nearly nine millions on the annual
interest charge.
Control Of Corporations.
As regards tho great corporations en-
ragged In Interstate business, and espe-
eisily the railroads. can only repeat
what have already again and again said
In my messages to the congress. ] be-
hevs that under the Interstate clause of
the constitution the United States has
complete and paramount right to con-
troll all agencies of Interstate commerce.
and ! believe that the national govern
n,ent alone can exercise this right with
wisdom and effectiveness SO as both to
, secure Justice from. and TO do Justice to-
)ths great corporations which arc the
most important factors In modern busi-
ESss. I believe that 1t Is worse than
5lly to attempt to prohibit all COM
oinations as Is done by the Shermaa
antitrust law, because such n law can
~ enforced only imperfectly and un-
equally, and Its enforcement works al
most a. much hardship as good
strongly advocate that instead of an un-
~ise effort TO prohibit all combinations,
there shall be substituted a law which
shan expressly permit combinations
which arc In the interest Of the public,
but shall at the same time give to some
agency in the national government full
power of control and supervision over
them. One of the chief features Of this
control should be securing entire pub
iicity In all matters which the public
has Q right to know, and furthermore,
the power. not by judicial but by cSecu-
tive action. to prevent or put n stop to
every form Of improper favoritism or
other wrongdoing.
Tha railways of the country should be
put completely under the interstate COM
merce commission and removed from
the domain Of the antitrust law. The
power of the commission should be made
thoroughgoing, so that II could exercise
complete supervision and control over
the issue of securities as well over
the raising and lowering OF rates. As
regards rates, ut least. this power should
be summary. Rates must be made
a. low as is compatible with giving prop
Or returns to all the employees Of the rail-
road. from the highest TO the lowest,
and proper returns to the shareholders,
but they must not, for instance. be re-
duced in such fashion as to necessitate
. cut In the wages OF the employees or
the abolition of the proper and legitimate
profits Of honest shareholders.
Telegraph and telephone companies en-
gagged In interstate business should be
put under the Jurisdiction of tho inter
state commerce commission.
II Ia very earnestly to be wished that
our people. through their representatives,
should act In this matter. II is TO
the interest Of all of Us that
,here should be a premium put upon In
.sidusl initiative and Individual ca