Iowa state bystander. [volume] (Des Moines, Iowa) 1894-1916, 1908-12-11
HEAR MESSAGE
OF PRESIDENT
DOCUMENT FROM CHIEF ExEcu.
TIVE READ IN CONGRESS.
URGES CHANGES IN LAWS
Present Currency System Declared
'mpereet-control Of Corporations
the Province Of the National Gov.
ern'nent-conduct Of Labor Lead.
ers criticised-For Postal Savings
Banks.

day, President Roosevelt makes i'm.
portant suggestions as to what he
considers necessary legislation.
The president congratulates the ma.
ton on its present excellent financial
+, standing. but calls attention to the
need e 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
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 1t is ear
nestly to be hoped that the currency
commission win be able to propose n
thoroughly good system which will do
away with the existing defects.
During the period from July 1, 1901, to
September 30, 1908. there was an increase
IN the amount of money in circulation OF
500, 991 800. The increase in the per capita
during this period was $7.O6 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-
lions OF United States bonds: by increas-
ing deposits in national banks; by slim
ulating additional issues of national bank
notes. and by facilitating appropriations
from abroad Of gold Our inperfect cur
rency system has made thest 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 s5OoO,0OO Clearing
house associations throughout the coun-
try had been Obliged to resort to the
expedient of issuing clearing house GER
tificates, to- be used as money. In this
emergency 1t was determined to invite
subscriptions for s50,0O0o00 Panama canal
bonds. and $1Oo,0O0,O0o three per cent.
certificates Of Indebtedness authorized by
the act Of June 49, 1898. 1t was proposed
to redeposit in the national banks the
proceeds OF these issues, and to permit
their use as basis for additional circu-5
lating notes of national banks. The
moral effect of this procedure was SO
great that it was necessary to issue only
s2i, $50 Of the Panama bonds and $15.-
436500 of the certificates of indebtedness
During the period from July l, 1901, to
September &c. 1908, the balance between,
the net ordinary receipts and the net
ordinary expenses of the government
showed surplus in theS four years 1902,
1903. 1906 and 1907. and deficit in the
years 1904 1905. 1908 and fractional part
of the fiscal year 1909 The net result
was surplus OF 500. 2S3. 41354 The finan-
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
1881, 14t04o, to 1897. 25s 800, notwithstanding
that there had been two sales OF Panama
canal bonds amounting In the aggregate
to s54631 $780, and an issue OF three Per
cent certificates of indebtedness under
the act OF June 49, 1S9s amounting To
s15,4sS,5 800 Refunding operations Of the
treasury department under the act Of
March a., 1900. resulted in the CONVEX
sion into two per cent. consols of 1880 of
$500. 500 400 bonds bearing higher rates OF
interest. A decrease of IS, 6S7. 956 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 of
receipts over expenditures, q reduction
of the Understanding debt byA ninety
millions, in spite of the extraordinary ex-
pense Of the Panama canal, and q 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.
should be vested in the national gov
eminent. He says:
I believe that 1t is worse than folly
to attempt to prohibit all Combinations
as Is done by the Sherman anti
trust law, because such law can
be enforced only imperfectly and I'M
equally, and It's enforcement works al
most as much hardship as good. l.
strongly advocate that instead of an I'M
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
put completely under the interstate com
merce commission and removed from
the domain of the antf-trust law. The
power Of the commission should be made
thoroughgoing, SO that It 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. So. Rates must be made
us 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 to 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 WageWorker.
Turning to conditions affecting the
wageworker and the man OF sriall
means, the president says:
Postal Savings banks will make It
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
means to invest his money in stocks.
There must be prohibition of child la
Dor, T. minution. of women labor. short
cni1lg Of hours Of all mechanical labor;
stock watering should be prohibited,
and stock gambling so far as is possi-
bic discouraged. There should be
rrogressiye inheritance tax on large
fortunes Industrial education should
he encouraged. AS far as possible we
should tighten the burden Of taxation
on the emall man. There should no
longer ia any paltering with the
opposition Of taking care Of the
wageworkers WHO, under our pres
ent Industrial system become killed.
crippled, or worn out as part Of the
regular Incidents Of given bust
ness, AS far as concerns those
who have been worn out. ( call your
attention to the fact that definite 4
steps toward providing old-age PEN
sions have been taken in many Of our
private industries These may be In
definitely extended through voluntary
. ssocintion and contributorJ 7chemes,
a. through the agency OF savings
hanks as under the Massachusetts
plan.