The Colorado statesman., 1908-12-12

ernment-Conduct of Labor Lead
ers criticised-For Postal Savings
Banks.
Washington.-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 congratuates the ma
ton 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
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 it is ear
nesty to be hoped that the currency
commission will be able to propose a
. Thoroughly good system which will do
away with the existing defects.
During the period from July l. 1901 to
September 30 1908 there was an increase
in the amount of money I'm circulation of
9O2.99l 399 The Increase in the per capita
during this period was s7.OG. Within this
time there were several occasions when
St was necessary for the treasury de
partment to come to the relief OF the
money market by purchases or redemp-
tons of United States bonds by incrcas-
Ing deposits in national banks: by slim
ulatng additional issues of hational bank
notes. and by facilitating importations
from abroad of gold. our impcrf ct 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 s5OOO.O0O Clearing
house associations throughout the Coun-
try had been Obliged to resort to the
eNpedient of issuing clearing house GER
tifcates. to be used as money. In this
emergency 1t was determined to invite
subscriptions for $50 900, 900 Panama canal
bonds. and Sl00. 900 900 three per cent
certificates of Indebtedness authorized by
the act of June Is. 1898. 1t 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 II was necessary to issue only
S24 63l. $50 of the Panama bonds and Sis
4jG 500 of the certificates, of Indebtedness.
During the period from July l. 1901, to
September 80, 1908, the balance between
the net ordinary receipts and the net
ordinary expenses of the government
showed q surplus In the tOur years Ig02
1908. 1906. and 1907. and a deficit in the
years 1904. 1906 1908 and a fractional part
of the fiscal year 1909. The net result
was n surplus of 500 2SS. .413 -. 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. l.OiO to 1897. .253 800. notwithstanding
that there had been two sales of Panama
Inc In, tIt, 80,
to S54 G31 $50. and an issue of three per
cent. certificates of Indebtedness under
Che act of June 1S. 1895 amounting to
SIS, ,i36,50O. 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
S2OO. 300 100 bonds bearing higher rates of
interest A decrease of IS 6S7. $50 in the
annual interest charge resulted from
these operations.
III short during the seven years and
three months there has been a net sur
plus of nearly one hundred millions of
receipts over expenditures. n reduction
of the interest-bearinE 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
kuowN views of the president that the
control of great corporations, espe-
clally. the railroads of the country,
should be vested in the national gov
ernment. He says:
1 believe that it is worse than folly
to attempt to prohibit all combinations
as is done by the sherman anti
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.
. there shall be substituted a law which
shalI 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 fun
riower of control ana supervision over
them.
The railways OF the country should he
put completely under the Interstate COM
merce commission and removed from
the domain of the unti-trust law The
power of the commission should be made
thoroughgoing. so that 1t 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. Rates must be made
as low as is compatible with giving prop
er n -urns 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 necessltate
a cut I'm 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 small
means, the president says
Postal Savings banks will make 1t
!easy for the poorest to keep their saw
tn6s in absolute safety. The regulation
or the national highways must be such
that they shall serve al people with
equal justice. Corporate finances must
be supervised SO as to make it far safer
than at present for the man of small