Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1908-12-10

In for Criticism-Respect for Law
Vital to the ,WelLBeins Of Country.
Washington.-The message Of Presi-
dent Roosevelt was read in both
houses of congress Tuesday. In sub
stance the document was as follows:
To the Senate and House of Represen-
tatives: The financial standing of the
nation at the present time is excellent,
and tee financial management Of the ma
tons 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
nesuy to be hoped that the currency
commission viii be able to propose a
thoroughly good system which will do
away with the existing defects.
During the period from July /, 1901, to
September so. 1908, there was an increase
in the amount of money In circulation OF
s9O2,9 1893. The increase in the per capita
during this period was S7.06. Within this
time there were several occasions when
1t 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 uSpOSllS IN national DaukS, Dy sum-
ulsting 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 s5,00OO00. Clearing
house associations throughout the coun-
try had been Obliged to resort to the
expedient of Issuing clearing house GER
tficates, to be used as money. In this
emergency II was determined to invite
subscriptions for $4,000, 900 Panama canal
bonds. and $i00,0oOO00 three per cent.
certificates of indebtedness authorized by
the act Of June 49, 1898. 1t was proposed
to redepost in the national banks the
proceeds Of these issues, and to permit
their use as basis for additional circu-
iating notes of national banks The
moral effect of this procedure was so
great that II was necessary to issue only
$50 of the Panama bonds and SIS
tS650O of the certificates of Indebtedness.
During the period from July l. 1901, to
September go 1903, 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. 1905, 1908 and fractional part
IT the fiscal year 1909 The net result
was surplus Of S99 2S3, 4l3.54 The finan-
rial operations OF the government during
this period, based upon these differences
between receipts and expenditures, re-
suited In net reduction of the interest
bearing debt OF the United States from
1857. IA, $40 to 1897, 253, 800. Notwithstanding
that there had been two sales of Panama
canal bonds amounting in the aggregate
to $@,63l,9S0, and an issue of three per
cent certificates of indebtedness under
the act of June l3, 1898, amounting t.
ti5,436500. Refunding operations of the
treasury department under the act OF
March IA. 1900, resulted in the CONVEX,
sion into two per cent consols of 1890 OF
900. 800, 400 bonds bearing higher rates OF
interest. A decrease of sSGS7956 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 o.
receipts over expenditures, a reduction
OF the Understanding debt by NINETY
millions, in spite of the extraordinary ex
pense of the Panama canal, and q savin.
Of nearly nine millions on the annua
interest charge.
Control Of Corporations.
AS regards the great corporations en-
gagged in interstate business and espe
cialy the railroads, / can only repea
what have already again and again sal,
in my messages to the congress 1 be
leve that under the interstate clause o
the constitution the United States hal
complete and paramount right to con
troll all agencies of interstate commerce
and l believe that the national govern
ment alone can exercise this right will
It'd M
secure justice from. and to do justice to
the great corporations which are tn
most important factors In modern bust
ness. believe that 1t Is worse thai
folly to attempt to prohibit all com
binauons as Is done by the Sherman
antitrust law. because such a law ca
be enforced only imperfectly and IN
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
there shall be substituted law whic
shall expressly permit combination
which are in the interest of the public
but shall at the same time give to som
GGency in the national government flu
power of control and supervision owe
them. One of the chief features Of thi
control should be securing entire pub
licity In all matters which the publ
has a right to know, and Furthermore,
the power, not by judicial but by execu
tive action. to prevent or put q stop ,
every form of improper favoritism Q
other wrongdoing.
The railways Of the country should b
put completely under the interstate con
merce commission and removed froi
the domain of the antitrust law. Tt
power of the commission should be mad
thororghgoing. SO that 1t could exercis
complete supervision and control ovt
the raising and lowering of rates. A
regards rates. at least, this power shou
be summary Rates must be mat
as low as is compatible with giving pro-
or returns to all the employees OF the raj
road. from the highest to the loves
and proper returns to the shareholder
but they must not. for instance. be r
duce6 In such fashion as to necesslta
cut in the wages of the employees
the abolition of the proper and legitima
profits OF honest shareholders.
Telegraph and telephone companies e
gagged in interstate business should
put under the jurisdiction OF the int
state commerce commission
IL Il very earnestly to be wished tn
our people. through their representative
shouls act I'm this matter. 1t Is
the interest of all of US tn
there should be premium put upon |
dividual initiative and individual C
pacity. and an ample reward for {
great directing intelligences alone col
petent TO manage the great business o
erations OF to-day. IL Is we'll TO keep
mind that exactly as the anarchist Is [
worst enemy OF liberty and the reactio
airy the worst enemy of order. so {
men who defend tho rights OF proper
have most 10 fear from the wrongdoe
OF great wealth. and the men who a
chappionlng popular rights have mt
Go fear from the demagogues who in [
name .f popular rights would do wro
TO ard Cypress honest business me
honest men OF wealth: for the success
either type OF wrongdoer necessarily