Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1908-12-15
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+ President Roosevelts I
+ Message to Congress
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To the Senate and House of Representa-


financial management of the nations in
terests by the government during the last
seven years has shown the most satisfac-
tory results. But our currency system is
imperfect. and it is earnestly to be hoped
that the currency commission will be able
to propose a thoroughly good system which
wi do away with the existing defects.
! .lrng the period from July l, 1901, to
Sept. 30 1908. there was an increase In
the amount of money in circulation OF
1902 i991 .S99 This increase in the per
capita during this period was sos With
in this time there were several occasions
when it was necessary for the Treasury
Department TO come TO the relief OF the
money market by purchases or redemp-
tons of United States bonds; by increas-
ing deposits in national banks; by stimu-
lating 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 $5000.G00. Clearing
house associations throughout the country
had been obliged TO resort to the expedient
of issuing clearing house certificates, to
be used as money. In this emergency it
was determined to invite subscriptions for
S5090000 Panama canal bonds. and
$1O0O0O.O00 three per cent certificates OF
indebtedness authorized by the act of June
13, 1893. 1t was proposed TO re-deposit
in the national banks the proceeds OF
these issues. and to permit their use as
q basis for additional circulating notes of
national banks. The moral effect of this
procedure was so great that it was neces-
sary TO issue only $24,63l.9S0 of the Pan
anna canal bonds and S15,436,3O0 of the
certificates of indebtedness.
During the period from July l. 1901, TO
Sept 30 1908 the balance between the
net ordinary receipts and the net ordinary
expenses of the government showed a sur
plus in the four years 1907, 19U5, l9b
and 1907. and deficit in the years i9O4
1905 1903, and fractional part OF the
fiscal wear 1909. The net result was a
surplus of 500. 2S3 413.54. The financial
operations of the government during this
period. based upon these differences be-
tween receipts and expenditures. resulted in
a net reduction of the Understanding debt
of the United States from S9SI, 141 ,O40
TO 1897 .253.9 800 notwithstanding that
there had been two sales of Panama canal
bonds amounting in the aggregate to So4,-
631 $50 and an issue of three per cent
certificates of Indebtedness under the act
of June Is, 1898. amounting to $1o.436,-
800. Refundng operations of the Treas
ury Department under the act of March
IA. 1860. resulted in the conversion into
two per cent consols OF 1880 of S200.309.
400 bonds bearing higher rates of interest
A decrease of $S,6ST 1856 in the annual in
terest charge resulted from these opera
tions.
In short. during the seven years and
h. bas, haa
of nearly one hundred millions of receipts
over expenditures. reduction of the in
terest-bearing debt by ninety millions. in
spite of the extraordinary expense of the
Panama canal, and a saving of nearly
nine millions on the anual interest charge.
This is an exceedingly satisfactory show
ing especially in view of the fact that
during this period the nation has never
hesitated to undertake any expenditure
that it regarded as necessary. There have
been no new taxes and no increases of
taxes: on the contrary. some taxes have
been taken off there has been a reduction
of taxation.
Corporations.
As regards the great corporations en-
gagged in interstate business. and especial
~ the railroads. | can only repeat what
have already again and again said in my
messages to the Congress | believe that
under the interstate clause of the Consti-
tuition the United States has complete
and paramount right to control all agen-
cies of interstate commerce. and | believe
that the national government alone can
exercise this right with wisdom and effec-
tiyeneSS so as both to secure justice from.
and TO do justice to, the great corpora
tions which are the most important fac
tors in modern business. | believe that
it is worse than folly to attempt to pro-
Il
Sherman antitrust law. because such a
law can be enforced only imperfectly and
unequally, and its enforcement works al
most as much hardship as good. | strong
ly advocate that instead of an unwise
effort to prohibit all combinations. there
shall be substituted a law which shall
expressly permit combinations which are
in the interest Of the public. but shall at
the same time give TO some agency of the
national government full power of control
aud supervision over them. One of the
chief features of his control should be
securing entire publicity in all matters
which the pGSlic las a right to know. and
furthermore. thu power. not by judicial
but by executive action, to prevent or put
a stop to every form of improper favorit-
ism or other wrongdoing.
The railways of the country should be
put completely under the interstate COM
merce commission and removed from the
domain of the antitrust law. The power
of the commission should be made thor
oughgoing, so that il could exercise com
plete supervision and control over the
issue of securities as well as over the rails
ing and lowering of rates. As regards
rates. at least. this power should be sum
mary. The power to investigate the iinan-
cial operations and accounts of the rail-
ways has been one of the most valuable
features in recent legislation. Power to
make combinations and traffic agreements
should be explicitly conferred upon the
railroads, the permission of the commits
sion being first gained and the combna-
ton or agreement being published in all
its details. In the interest of the public.
the repres ntatives of the public should
have complete power to see that the rail
roads do their duty by the public. and as
a matter of course this power should also
he exercised so as TO see that no injustice
is done TO the railroads.
Telegraph and telephone companies, en-
gagged in interstate business should be put
under the jurisdiction of the interstate
commerce commission.
Ii is very earnestly to be wished thar
our people. through their representatives.
should act in this matter. IL is hard 10
say whether most damage 10 the country
at large would come from entire failure
on the part of the public TO supervise and
control the actions of the graf corpora
tons. or from the exercise of The neces-
Sary governmental power in way which
would do injustice and wrong TO the cor
porationS Both the breaches of an I'M
restricted individualism. and tue preachers
of an oppression which woull deny TO able
men of business the just reward of their
initiative and business sagacity, are advo-
Eating policies that would be fraughr with
the gravest harm 10 the whole country.
To permit every lawless capitalist. every
law-defying corporation, TO take any ac-
ton. no matter how Ubiquitous, in thu
effort to secure an improper profit and
TO build up privilege. would be ruinoOs
TO the republic and would mark the aban-
donment of the effort 10 secure in the
industrial world the spirit of democratic
fair-dealing. On the other hand. 10 at
tack these wrongs in that spirit of dem
agogy which can see wrong only when
committed by the man of wealth. and is
dumb and blind in the presence of wrong
committed against men of property or by