Weekly Watertown leader. [volume] (Watertown, Jefferson County, Wis.) 1908-1909, 1908-12-11
Presidents Message.
To the Senate and House of Represen-
RI
Finances.

FINANCES.
The financial standing of the nation at
the present time is excellent. and the
financial management Of the nations In
ferests by the government during the last
seven years has shown the most satisfac-
tory results. But our currency system IS
imperfect, and it Is earnestly TO be hoped
that the currency commission will be able
10 PROPOSE a thoroughly good system which
viii do away with the existing defects,
During the period from July /, 1901, to
September 80 1903, there was an increase
I'm the amount of money in circulation Of
500 1el, 800 This increase in the per capita
during this period was $7.06. Within this
time there were several occasions when IL
was necessary for the treasury department
by purchases or redemptons Of United States
bonds; by increasing deposits In national
banks; by stimulating additional issues OF
national bank notes, ana by faciiitaIlhg LII III
portatons from abroad of gold. Our i'm
perfect currency system has made these
proceedings necessary, and they were et
the fall Of 1907 immensely increased the
difficulty of ordinary methods of relief by
the middle Of November the available work
ing balance In the treasury had been re
dnccd TO approximate ly 5000, 900 Clearing
house associations throughout the country
had been obliged TO resort to the eXpedleht
Of issuing clearing house certificates, 20 ne
used as money In this emergency 1t was
determined 10 invite subscriptions for SOD
100000 Panama canal bonds ana %lVo,VpJ,
800 three per cent. certificates of indebted
ness authorized by the act of June -, 1898.
II was proposed to re-dpposlt In the national
banks the proceeds of these issues, ana 10
permit their use as basis for additional
circulating notes of national banks. The
moral effect of this procedure was so great
that 1t was necessary to issue only pa, 53i, :
$50 Of the Panama canal bonds ana SlJ,4oo''
500 Of the certificates Of indebtedness
During the period from July 1, l9ol, &c
September 30, 1903, the balance between
the net ordinary receipts and the net ordi-
nary expenses Of the government showed a
surplus In the four years 1902, 1903, 1905
and 1907, and a deficit in the years 1904,
1905 1903, and q fractional part OF the
FISCAL year 1905. The net result was sur
plus Of 500, 2S3, 41354. The financial opera
tons Of the government during TINS PERIOD
based upon these differences between re
eeipts and expenditures, resulted in a net
reduction of the Understanding debt Of the
United States from S9S7 l4l, 90 to 9o9' 20 z1o,-
800, Notwithstanding that there had Deeh
two sales Of Panama canal bonds amount
ing in the aggregate to S5I,G3l $50, ana an
issue Of three per cent. certificates of IN
debtedness under the act of June Is, 1S9S,
amounting to $15,436JO RefundinG opera
tons of the treasury department under the
act of March IA, 1900, resulted in the con
version into two per cent. consolS Of 1890
Of $500, 300, 400 bonds bearing higher ra tes
of interest decrease of S8,68I.95O IN the
annual interest charge resulted from thes"
operations.
In short during the seven years and three
months there has been Il net surplus OF
nearly one hundred millions of receipts over
expenditures, a reduction OF the interest
bearing debt by ninety millions, IN spite
of the extraordinary expense Of the Panama
canal, and saving OF nearly nine millions
on the annual interest charge. This is an
exceedingly satisfactory showing, especially
in view of the fact that during this period
the nation has never hestated to undertake
any expenditure that 1t regarded as neces,
Bary There have been no new taxes ana no
increases of taxes; on the contrary some
taxes have been taken off; there has been a
II ductiOn of taxation
Corporations
AS regards the great corporations engaged
IN Interstate business and especially the
railroads, | can only repeat what | hav,.
already again and again said In my mes
sagCs to the Congress. believe that under the
Interstate clause of the Constitution the
United States has complete and paramount,
right to control all agencies of Interstate
commerce, and / believe that the national
government alone can exercise this right
with wisdom and effectiveness so as both
10 secure justice from, and 10 do justice to,
the great corporations when ire the most
Important factors in modern business
believe that 1t Is worse than folly to at
tempt to prohibit all combina tons as is
done by the Sherman antitrust law, be
such law can he enforced only ,.npcr-
fectly and uncqually, and it's enforcement
works almost as much hardship as good.
strongly advocate that instead of an unwiSc
effort to prohibit all combination there
shall be substituted a law which shall eX-
pressly permit combinations which in
the interest Of the public, but shall at the
same time give to some agency OF the ma
tional government full power of control ana
features of this control should be securing
entire publicity in all matters which the
public has a right to know, and further
more the power, not by judicial but by
executive action, to prevent or put stop
to every form Of improper favOritsm or
other WrOngdOing
The 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 thor
oughgoing, so that it could exercise COM
plete supervision and control over the issue
of securities well as over the raising
aud lowering of rates As regards rates
at least, this power should be summary
The power to Investigate the financial OPP
been one of the most valuable features in
recent legislation. Power to make conbi-
nations and traffic agreements should be
explicitly conferred upon the railroads the
permission of the commission being first
gained and the combination or agreement
being published in all its details. In the
interest of the public the representatives,
of the public should have complete power
to see that the railroads do their duty by
the public, and matter of course this
power should also be exercised so as TO
see that no injustice is done to the rail
roads. The shareholders, the employees ana
the shippers all have interests that must be
guarded 1t is to the interest of all of them
that no swindling stock speculation should
be allowed, and that there should be no
improper issuance of securities. The guild
ing intelligences necessary for the success
full building and successful management OF
railroads should receive ample remunera-
tion; but no man should be allowed to
make money in connection with railroads
cut of fraudulent capitalization ana
kindred stock gambling performances: there
must be no defrauding of investors, oppres-
sion of the farmers and business men who
ship freight, or callous disregard of the
rights and needs of the employees. In adj
dition to this the interests of the share
holders, of the employees, and of the ship
pers should all be guarded as against one
another. To give any one of them undue
and Improper consideration is to do IN
Justice to the others Rates must be made
as low as is compatible with giving proDer
returns to all the employees of the railroad.
from the highest to the lowest, and proper
returns to the shareholders; but they must
not, for instance. be reduced in such fash
ion as to neceSSitate Il cut in the wages of
the employees or the abolition of the prop
er and Legitimate profits of honest share
holders.
Telegraph and telephone companies en-
gagged in interstate business should be nut
under the jurisdiction of the Interstate
commerce commission.
1t is very earnestly to he wished that
our people through their representatives
should act in this matter. 1t is hard to
say whether most damage to the country
Mt large would come from entire failure
on the part of the public to supervise ana
control the actions of the great CORPORA
tons, or from the exercise of the necessary
governmental power in a way which would
do injustice and wrong to the corporations
Both the preachers of an unrestricted in
diyidualism, and the preachers of an or
preston which would deny to able men of
business the just reward of their initiative
and business sagacity, are advocating pol
fcteS that would be fraught with the gray
est harm to the whole country. To per
nit every lawless capitalist, every law
defying corporation. to take any action no
jninniTnnS i'm hA afen -+ 70,