The San Francisco call., 1908-12-09

tons interests by the government dur
ing the last seven years has shown
The most satisfactory results. But
our currency system is imperfect, and
in is earnestly 10 be hoped that the
currency commission viii be able 10
propose thoroughly good system
which VIII do away with the eNistlnS
Cefects
During The period from July 1. 1901.
TO september 30. 1908. there was an in
crease In the amount Of money In cir
culation Of S90299l,39s- The increase
IN tie per capita during this period
was s706. Within this time there
were several occasions when ii was
necessary for the treasury department
20 come to the relief Of the money
market by purchases or redemptlons OF
United States bonds. by increasing de-
posits in national banks; by stimulat-
ing additional issues Of national bank
notes. and by facilitating importations
from abroad Of gold. Our imperfect
currency system has made these pro-
ceedings necessary, and they were et-
fective until the monetary disturbance
iu the fail Of 1907 Immensely increased
the difficulty Of ordinary methods or
relief BY the middle OF November the
available working balance in the treas
ury had been reduced 10 approximately
Clearing house associations through
ON the country had been obliged to re-
sort 10 the eX-
--- pedient Of issuing
20 a1@t = Dol , -. = --sAs Ilhcates, 10 be used
-- er,ereenev II 1vas
determined 70 invite subscriptions for
S3o.uOo.00o Panama canal bonds and
SlQ0.000o00 3 per cent certificates of in
leoLeCneSS authorized by the act of
June J 3, 1898. II was proposed TO re-
deposit Ia the national banks the pro-
ceeds or these issues and TO permit
cir use as a basis for additional cir
culating notes OF national banks. The
moral effect Of this procedure was so
great that ii was necessary TO issue
only S24.63l.9S0 Of The Panama canal
bonds and S15436.500 of the certificates
of Indebtedness.
During the period from July /. 1901,
no september 80, 1908. the balance be-
tween the net ordinary receipts and the
net ordinary expenses OF the govern
nent showed q surplus IN the four
wears 1902 1903. 906 and 1907, and
oencIr IN the years 1904, 1905 and 1908
and q fractional part Of the fiscal year
1909 The net result was q surplus of
sts.Zso, l5-3f. The financial operations
OF Ile 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 s9S7,14l-
e4o TO S6Sis253, 9S0, Notwithstanding that
there had been two sales Of Panama
calal ponds amounting in the aggre-
gate L. So ,63l.960 and an issue of
per cent certificates Of Indebtedness un-
der the act Of June 13. 1898, amounting
TIE treasury department. under the act
az March 4, 1900. resulted in the con-
Ferslon INTO per cent cOnsOls OF 1880
of 5000. 500 400 bonds bearing higher
rates Of interest A decrease of $685.
s56 In the annual interest charge re-
suited from these operations
Ia short. during the seven years and
three months there has been a net sur
=. .. plus Of nearly one
.s. ~---< hundred millions
Despite Expense oI rese;eipts over
Of Panama Canal duction Of fbe IN
terest bearing debt
by ninety millions, in spite Of the extra
ordinary expense Of the Panama canal
and saving of nearly nine millions on
Ine annual interest charge This is Ia
exceedingly satisfactory showing es-
peclallT In view OF the fact that dur
ing this period the nation has never
lesttateo 10 undertake any expenditure
that Is regarded as necessary. There
la We been no new taxes and no increases
Of taxes on the contrary some taxes
have been taken of; there has been a
reduction Of taxation.
As regards the great corporations en-
gagged ia interstate business, and espe-
cially the railroads. I can only repeat
what i have already again and again
said IN my messages TO the congress.
believe that under the interstate
clause Of the constitution the United
states has complete and paramount
rlght TO control all agencies of inter-
state commerce. and / believe that the
national government alone can exercise
this right with wisdom and effective
ness so as both TO secure justice from
and 10 do justice 70 the great corpora
uOns which are the most important fac
tors ia modern business. I believe that
II IS worse than folly to attemDt to prO-
hibit all combinations as is done by the
Sherman antitrust law, because such a
Jaw can be enforced only imperfectly
ana unequally, and lis enforcement
works almost as much hardship as
good. I strongly advocate that instead
az an unyise effort 10 prohibit all COM
hinatiOns, there shall be substituted a
law which shall expressly permit COM
hinatlOns which are ia the interest Of
the public. but shall at the same time
give 10 some agency of the national
government full power OF control and
supervision over them. One Of the chief
features OF this control should be Sc
curing entire publicity in all matters
which the public has the right to know
and furthermore, the power, not by
judicial but by executive action, TO pre-
vent or put a stop to every form of
improper taToritism or other wrong
doing.
The railways Of the country should
he put completely under the interstate
commerce m
tatessis5e .....,.i 5.a.ssaI SoaFa moved from the
Railway Affairs anti trust law. The
= power of the COM
ll issiou should be made thorough going.
SO that it could exercise complete su-
pervision and control over the issue Of
securities, as well as over the raising
and lowering Of rates. AS regards
- tes at least, this power should be
summary. The power TO investigate
the financial operations and accounts
of thc railways has been one Of the
most valuable features in recent legis-
latiou. Power 10 make combina tfons
and traffic agreements should be ex-
piicitiy. conferred. upon the railroads.
the pefmission OF the commission be-
ing drsA 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 pub
lic and as matter Of course this
power should also be exercised so as to
see that no injustice is done to the
railroads. The share holders. the en-
nloyes and the shippers all have inter-
ests that must be guarded. II is to the
interest Of all Of them that no swim
ding stock speculation should be al
lowed and that there should be no i'm
proper issuance Of securities The
guiding fnteilieences necessary for the
elccessful building and successful man
cement Of railroads should receive
ample remuneration. but no man
should he allowed to make money in
connection with railroads out Of fraud
ulent oVerca pitalizatiOn and kindred
stock gambling performances. there
!. frrr 7fs.r~ Of