The new era. (Walden, Colo.) 1906-19??, 1908-12-24


In for critlcism-Respect for Law
Vital to the Wel-Being Of Country.
Washington.-The message of Presi-
dent Roosevelt was read in both
houses Of congress Tuesday. In sub
lance the document was as follows:
ITO the Senate and House of Represen-
tatives: 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
ting 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 will be able to propose
thoroughly good system which will do
away with the existing defects.
During the period from July /. 1901. to
September 30, 1908. there was an increase
In the amount of money In circulation of
800. 90, &c., The increase in the per capita
during this period was $7.06. 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 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
de OF November the available working
balance In the treasury had been reduced
TO approximately $5.OO0. 900. Clearing
house associations throughout the coun-
try had been obliged to resort to the
axpedient of issuing clearing house GER
0ncates, to be used money. In this
emergency 1t was determined to invite
subscriptions for $4,000 900 Panama canal
bonds. and tlOO.OO0.0Oo three per cent.
certificates of Indebtedness authorized by
the act of June 49, 1893. 1t was proposed
to redeposit in the national banks the
proceeds of these issues. and to permit
their use a basis for additional circu-
Eating notes of national banks. The
moral effect of this procedure was SO
great that it was necessary to issue only
~. 631. $50 of the Panama bonds and SIS
ass5oo of the certificates of indebtedness.
During the period from July /. 1901. to
September 80. 1908. the balance between
fhe net ordinary receipts and the net
rdinary expenses of the government
1905. 1906. and 1907, and deficit in the
years 1901 1905. 1908 and fractional part
of the fiscal year 1909. The net result
was a surplus of 500. 2ss. 1854. The fnan-
cial operations of the government during
this period, based upon these differences
between receipts and expenditures.
suited in a net reduction of the interest
bearing debt of the United States from
1857, 04o to 1897. $3.50. notwithstanding
that there had been two sales of Panama
canal bonds amounting In the aggregate
to e54.63l.9So and an issue of three per
cent. certificates of Indebtedness under
che act OF June 10. 1898, amounting to
el5,4ss,soo Refunding operations of the
treasury department under the act of
March IA. 1900. resulted in the CONVEX
sion into two per cent. consols of 1880 of
$500. 400 bonds bearing higher rates of
interest decrease of S.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, a reduction
of the interest-bearing debt by ninety
millions. in spite of the extraordinary ex-
pense of the Parama canal, and q saving
Of nearly nine millions on the annual
interest charge.
Control of Corporations.
AZ regards the great corporations en-
gagged in interstate business, and espe-
eially the railroads, 1 can only repeat
what have already again and again said
IN my messages to the congress. 1 be-
lievs that under the interstate clause of
the constitution the United States has
complete and paramount right to con-
troll all agencies of interstate commerce.
and believe that the national govern
ment alone can exercise this right with
wisdom and effectiveness so as both to
Mcclure Justice from, and to do justice to.
. great corporations which are the
hnost important factors in modern busi-
hess. 1 believe that 1t is worse than
folly to attempt to prohibit all corn
binations as Is done by the Shermaa
antitrust law. because a In
be enforced only imperfectly and I'M
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
shal expressly permit combinations
which 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. One of the chief features OF this
control should be securing entire pub
licity in all matters which the public
has right to know. and Furthermore,
the power. not by judicial but by execu-
tive action. to prevent or put stop to
every form of improper favoritism 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. Tho
power of the commission should be made
thorouEhgoing. that 1t could exercise
complete supervision and control over
the issue of securities as we'll over
the raising and lowering of rates. As
regards rates. at least. this power should
be summary. {. Rates must be made
as low as IL compatible with giving prop
Or 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 necessitato
q cut in the wages of the employees or
the abolition of the proper and legitimate
Dronts of honest shareholders.
Telegraph and telephone companies en-
gagged in interstate business should be
put under tho Jurisdiction OF the inter
state commerce commission.