The herald-advance. (Milbank, S.D.) 1890-1922, 1908-12-11
President Says Financial Stand
ing of Nation Is Excellent
Taxes Reduced.
Repeats Recommendations Re-
garding Corporations Doing
Interstate Business.
Many Matters Affecting Labor
Are Called to the Atten.
ton of Congress.

To the Senate and House of Repre-
Finances.
The standing of he nation
at the present time is excellent, and
the financial management of the ma
lions interests by the government dur
ing the last seven years has shown the
most satisfactory results. But our
currency system is imperfect, and it is
earnestly to be hoped that the curren-
cy commission will be able to propose
Q thoroughly good system which will
do away with the existing defects.
During the period from July 1, 1901.
to Sept. 80. 1908, there was an increase
in the amount of money in circulation
of 1902, ss1, 1893. The increase in the
per capita during his period was
$7.06. Within this time there were
several occasions when IT was neces-
sary for the treasury department tc
come to the relief OF the money mar
ket by purchases or redemptions OF
United States bonds: by increasing
deposits in national banks: by stimu-
lating additional issues of national
bank notes. and by facilitating impor-
tations from abroad Of gold. Our i'm
perfect currency system has made
these proceedings necessary, and they
WCIG cIICClIfe UIllu Lie monetary O1S.
turbance in the fall Of 1907 immense
~ increased the difficulty Of ordinary
methods of relief. BY the middle Of
November the available working bal
ance in the treasury had been reduced
to approximately 5000. 900. Clearing
hous associations throughout the
country had been obliged to resort TIC
the e~xpedient of issuing clearing house
certificates. to be used as money. In
this emergency 1t was determined to
invite subscriptions for $50. 0OO. OOO
Panama canal bonds, and 500, OOO. 900
3 per cent certificates OF Indebtedness
authorized by the act Of June IS. 1898.
1t was proposed to re-deposit in the
national banks the proceeds of these
issues, and to permit their use as a
basis for additional circulating issues,
and to permit their use as a basis for
additional circulating notes Of national
banks. The moral effect Of this pro-
cedure was 80 great that it was nee
essary to issue only $24,6 g $50 of the
the certificates OF Indebtedness.
During the period from July 1, 1901,
to Sept. 80, 1908, the balance between
the net ordinary receipts and the net
ordinary expenses of the government
showed a surplus in the four years
1902. 1908, 1906 and 1907. and a dencit
in the years 1904. 1905. 1908. n a
AAdNNIoIdl par u NUS uSCdl year lcUS.
The net result was a surplus Of $99.-
283,413.54. The financial operations of
h government during this period,
based Upon these differences between
receipts and expenditures, resulted in a
net reduction Of the interest bearing
debt Of the United States from $685.
141,04O to 1897, 253. 800, notwithstand-
ing that there a been two sales of
Panama canal bonds amounting in
the aggregate to $54,631 $50. and an is
sue Of 3 per cent certificates OF indebt-
edness under the act Of June 13. 1898,
amounting to $15,436. 500. Reminding
operations OF the treasury department
under the act OF March IA. 1900, re-
suited in the conversion into 2 per cent
ccnsols Of 1880 Of 5000. sos. 400 bonds
bearing higher rates of interest. A de
crease of SS.6s7 $50 in the annual in
tercst charge resulted from these OPP
erations.
In short, during the seven year; and
three months there has been a net
surplus of nearly n hundred million
Of receipts over expenditures. a reduc-
ton OF the interest-bearing debt by
ninety millions, in spite OF the extraor-
binary expense OF the Panama canal.
mi a saving OF nearly nine millions
on the annual interest charge. This
Ii an exceedingly satisfactory showing,
especially IN view of the fact that dur
Ing this period the nation has never
hesitated to undertake any expendi-
tEre that 1t regarded as necessary.
There have been no new taxes and no
some taxes have been taken of: there
has been q reduction of taxation.
Corporations.
As regards the great corporations
engaged in interstate business. and es-
p~ecially the railroads. I can only
repeat what I have already
again and again said In my
that under the Interstate clause of the
constitution the United States has
complete and paramount right to con
troll all agencies Of interstate COM
merce, and / believe that the national
government alone can exercise this
right with wisdom and effectiveness so
as both to secure Justice from. and I o
do Justice to. the great corporations
which are the most important factors
IL worse than folly to attempt to pro-
h!bit all combinations rs is done by
the Sherman antitrust law. because
such q law can be enforced only i'm
perfectly and uneGually. and its en-.
forcement works almost as much
hardship ~ good. I strongly advocate
that instead ofsan nnwise effort to pro-
hibit all combinations. there shall he
substituted q law which shall express-
~ permit combine lions which are In
the Interest of the public. but shall at
the same time rive. to some agency of
the national g0vernSnent full power Of
control md supervision over thorn
One Of the chtef features OF this con
trol should ~ securing entire publicity
In AL mattsrs which the public has a
rsc-,~r 80 - }.&aceal ME- -, 49,