Daily Kennebec journal., 1908-12-09

TO the Senate ana House of Represe ma
tjves:
The financial standing Of the Nation at
Ine present time Is excellent and the
interests by the Government during the
!ast seven years has shown the most sat
, ,,siactoiy rr-sults; But our currency sys-
'tom ii Imperfect. and 1t is earnestly to
De nre ed thnt the Currency Commission
VIII be able to propose thoroughly good
= s.YHtem which will dc away with the ex-
19ting defects.
- :, During tho period from July i, 1891. to
" September 30. 1865. there was an increase
IN the amount of money in circulation of
yN2. ,599 The increase in the per capita
during this period was $706 Within this
time there were several occasions wheE it
was necessary fol the Treasury Depart
srtet sns 70 &c come to the relief o Of the money
United States bonds; by increasing de-
pesits in national banks: by stimulating
aoditional issues of national bank notes
abtoad of gold. Our imperfect currency
system has made these proceedings neces>
say and they We're effective Until dHs tne
Immensely increased the difficulty of or
dinary methods Of relief. BY the mid
die OF November the available working
to approximately So .OOOO Clearing house
associations throughout the country had
been Obliged to resort to the expedient
be used as money. In this emergency 1t
was determined to invite subscriptions
! for g So; 90 ;ooo.o 900 Panama Canal bonds. and
S1O0. .0C0 900 three per cent. certificates of
Indebtedness authorized by the act of
June H. 1898. 1t was proposed to re-de-
! posit IN the national banks the pro
ceedS OF these issues, and to permit their
use as a basis for additional circulating
% notes Of national banks. The moral ef-
ifect OF this procedure. was so, great that
It was necessary to issue. only, s24,6 $50
OF the Panama Caral bonds and SIS, 436, 500
Of the certificates. Of Indebtedness.
EurinS the 6 period eS fro from July L. isl to
r. the net ordinary receipts and tine net
ordinary expenses of the Government
showed a surplus, in the four years 1902,
=. 1901 1905: 19s ard fractional part of
the fiscal year 1909. The net result was
surplus Of ss9 2ss; 41s54. The, financial
period, based upon these differences be-
tween receipts and expenditures resulted
In net reduction of the interest hearing
debt % Of m the United States from $9s7, IA. .0D
to SS9~ .253.9 800. Notwithstanding that there
had been two sales Of Panama Canal
bonds amounting in the aggregate to
certificates OF Indebtedness under the act
OF June 13. 1898. amounting to sii.436.b .bC0
Refunding operations Of the Treasury De-
resulted in the conversion into two per
: cent, consois Of 1880 OF 500. .3o9. .4o0 bonds
bearing higher ssr oIs rates IS Of Interest de,
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, a reduction of
the interest bearing debt by ninety mil
lions in spite of the extraordinary ex-
pense o. the Panama Canal, and a saving
OF nearly nine millions on the annual
interest charge. This is an exceedingly
satisfactory showing. especially in view
# the fact fact that during this period Si, the
any expenditure that it regarded as rec
ossary. There have been NO new taxes
and no increases of taxes: on the contrary
some taxes have been taken eff: there has
been reduction of taxation.
e.. Corporations.
-, As regards the great corporations en-
tagged in interstate business. and especial
ly the railroads, l can only repeat what
have already again and again said in
my messag ges to the Congress. l believe
that under the interstate clause of the
Constitution the United States has COM
plete and paramount right to control all
agencies Of interstate commerce and !
believe that the National Government
alone can exercise this right with wisdom
and effectiveness so =: both to secure
justice from. and to do justice TO. the
Important factors In modern business 1
hclieve that 1t Is worse than folly to at
tempt to prohibit all combinations as Is
cause such law can be enforced only
imperfectly ana uneaually. and its en-
forcement works almost as much hard
ship as good. I strongly advocate that
instead Of an unwise effort to prohibit
all combinations. there shall be substitute.
ed "a law which shall expressly peimlI
combinations which are in the interest OF
the public, hut shall at the same t,me
give to some agency of the National Gov
crnment full power of control and suI'er-
vision over them One Of the chief iea-
lures of this control should be securing
entire publicity in all matters which the
public has a right to know. and furtner-
more. the power not by judicial but by
executive action. to prevent or pnt
stop to every form of improper faVoflt'sm
. or other wrongdoing.
1.-The railways Of the country shHuld ne
, nut completely under the Interstate Com
merce Commission and removed from tns
domain Of the anti-trust law. The power
>Sof the Commission should be made tao-
roughgoing, so that 1t could exercise COM
plete supervision and control over the is
due Of securities well as over the raiS-
ing and lowering of rates. AS regards
rates. at least. this power should be sum-
mary; The power to investigate the nm
/, railways has been one of the most .valua-
1le features in recent LEGISLATION. Power
70 make combinations and traffic agree
'fnents should be explicitly conferred upon
the railroads. the permission of the Com
mission being frst gained and the. ccm-
binAtion OF agreement being published IN
all 1ts details. In the interest of the pub
lic the representatives Of the pnb!ic
should have complete power to see that