The Dolores star., 1908-12-11

the Province Of the National Gov
err critleised-For Postal Savings
Banks.
Washinston.-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 ma
tion 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 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 II is ear
nsstly 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 !, 1901. to
September 3O 1905, there was an Increase
in tho amount of money in circulation of
es02. Ss1 .399. The increase in the per capita
during this period was S7.06. Within this
time there were several occasions when
II was necessary for the treasury de-
partment 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
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
die OF November the available working
balance In the treasury had been reduced
to approximately $5.000O00 Clearing
house associations throughout the coun-
try had been obliged to resort to the
expedient of Issuing clearing house GER
tihcates. to be used as money. In this
emergency II was determined to invite
subscriptions for $50 00O.0 900 Panama canal
bonds. and tl00. 100000 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 a 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
"a, ,631. $50 OF the Panama bonds and $15.-
l36. 900 of the certificates of Indebtedness.
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 a deficit In the
years 1904. 1906 1908 and fractional part
Of the fiscal year 1909 The net result
was a surplus of tee. .2S3. .ll3H. The hnan-
cia1 operations Of the government during
this period. based upon these differences
between receipts and expenditures. re-
bearing debt Of the United States from
9e67. .1l1,04o to tss7. .253, $50. Notwithstanding
that there had been two sales of Panama
canal bonds amounting in tho aggregate
to S54.6si. $780, and an issue of three per
cent. certificates of indebtedness under
the act Of june u. 1898. amounting to
I'll. .@36. 600 Refunding operations Of the
treasury department under the act Of
March II. 1900. resulted in the conver-
sion into two per cent. consols OF 1880 of
$500. 800. 400 bonds bearing higher rates of
interest A decrease OF tS.Ss7.96s In the
these operations.
In short. during the seven years and
three months there has been . net sur
plus of nearly one hundred millions of
receipts over expenditures, q reduction
Of the interest-bearing 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-
cially the railroads of the country,
ernment. He says:
I believe that It is worse than folly
to attempt to prohibit all combinations
na fa hNy hA GhA~
trust law, because such a law can
be enforced only imperfectly and un-
equally. and its enforcement works al
most as much hardship as good.
strongly advocate that instead of an un-
wise effort to prohibit all combinations
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
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 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
er returns to all the employees of the rail-
road. from the highest to the lowest.
and proper returns ito 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.
interests Of the Waseworker.
Turning to conditions affecting the
wageworker and the man of small
means, the president says:
Postal Savings banks will make II
easy for the poorest to keep their saw
| ings in absolute safety. The regulation
of the national highways must be such
| that they shall serve all people with
| equal Justice. Corporate finances must
| be supervised so as to make 1t far safer
than at present for the man of small
l y a 49,