The Green Forest tribune., 1908-12-11


 ss Banks.
 ? Washington.-In his message to congress, read in both houses Tues day, President Roosevelt makes i'm portant suggestions as to what he considers necessary legislation
 The president congratulates the na- ton on its present excellent financial standing but calls attention to the need of remedying defects in the cur rency system. He says:
 The financial standing of the nation at the present time is excellent, and the financial management of the na- 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 thoroughly good system which will do away with the existing defects.
 During the period from July 1, 1901 to September 30, 1908, there an increase in the amount of money in circulation of S902,9 ,399 The increase in the per capita during this period was $706 Within this time there were several occasions when it was necessary for the treasury de- partment to come to the relief of the money market by purchases or redemp- lions of United States bonds; by increas- Ing deposits in national banks by stim- ulating additional issues of national bank notes. and by facilitating importations from abroad of gold Our imperfect cur rency system has made these proceedings necessary, and they were effective until the monetary disturbance in the fall of 1907 immensely increased the difficulty of ordinary methods of relief. By the mid of ,hnr iIoh1 balance in the treasury had been reduced to approximately s5.0OO.000 Clearing house associations throughout the coun- 2 ,ry had been obliged to resort to the expedient of issuing clearing house cer- tificates, to be used as money. In this emergency 1t was determined to invite subscriptions for $50, 0O0 900 Panama canal bonds. and 0,000,000 three per cent. certificates of indebtedness authorized by the act of June 13, 1898. It was proposed to redeposit 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 moral effect of this procedure was so great that 1t was necessary to issue only $24,631,9S0 of the Panama bonds and s15,- 436,5O0 of the certificates of indebtedness.
 During the period from July l. 1901 to September 30 1908, the balance between the net ordinary receipts and the net ordinary expenses of the government showed a surplus in the four years 1902, 1903, 1906. and 1907. and deficit in the years 1904. 1905, 1908 and a fractional part of the fiscal year 1909. The net result was a surplus of $99, ,2S3, ,413.54. The fnan- cial operations of the government during this period, based upon these differences between receipts and expenditures. re- suited in a net reduction of the interest bearing debt of the United States from $9S7, Al. .040 to $S97, ,253, ,990 notwithstanding that there heen ma canal bonds amounting in the aggregate to $54, ,631 9S0, and an issue of three per cent. certificates of indebtedness under the act of June 13. 1898. amounting to S15. .436,500. Refunding operations of the treasury department under the act of March IA, 1900, resulted in the conver- sion into two per cent consols of 1930 of S200, 400 bonds bearing higher rates of interest. A decrease of sS.6S7.956 in the annual interest charge resulted from these operations.
 Tn 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-bearng debt by ninety millions in spite of the extraordinary ex- pense of the Panama canal, and a saving of nearly nine millions on the annual interest charge.
 The message reiterates the we'll known views of the president that the control of great corporations, espe- should be vested in the national gov ernment. He says:
 believe that it is worse than folly to attempt to prohibit all combinations as is done by the Sherman anti trust law. because such a law can be enforced only imperfectly and un- equally, and it's enforcement works al- most as much hardship good I strongly advocate that instead of an un- wise effort to prohibit all combinations. there shall be substituted law which shall expressly permit combinations which are 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.
 The railways of the country should be E 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 1t could exercise complete supervision and control over the issue of securities as well as over the raising and lowering of rates. As regards rates, at least. this power should be summary. Rates must be made as low as Is compatible with giving prop CT 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 a cut in the wages of the employees or the abolition of the proper and legitimate profits of honest shareholders.
 Interests of the Wageworker.
 Turning to conditions affecting the wageworker and the man of small means, the president says:
 Postal Savings banks will make 1t easy for the poorest to keep their say fngs in absolute safety. The regulation or the national highways must be such that they shall serve all people with equal justice. Corporate finances must pc supervised so as to make 1t far safer than at present for the man of small means to invest his money in stocks There must be prohibition of child la- DOT e-minution of women labor short enfng of hours of all mechanical labor; stock watering should be prohibited and stock gambling so far as is possi- Die discouraged. There should be a progressive inheritance tax on large fortunes. Industrial education should pc encouraged. As far as possible we should tighten the burden of taxation on the small man. There should no longer be any paltering with the question of taking care of the WageworlSers who, under our pres-