Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1908-12-11

washington, Dec s. The annual
message of the president, read in both
houses Of congress, is il fun as follows:
To the Senate and House of Repre-
sentatiyes:
Finances.
The financial standing of the nation
at the present time is excellent. and
the financial management of the ma
tions 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
earnestly to be hoped that the cur
rency commission will be able to pro
pose a thoroughly good system which
will do away with the existing defects.
During the period from July l, 1901,
to Sept 30, 1908, there was an increase
in the amount of money in circulation
of 1902, 991 800 The increase in the
per capita during this period was SI.O6.
Within this time there were several
occasions VIXEN it was necessary for
the treasury department to come to
the relief of the money market by
purchases or redemptions of United
States bonds, by increasing deposits in
national banks. by stimulating addi-
tional issues of national bank notes
and by facilitating importations from
abroad of gold Our imperfect cur
rency system has made these proceed
ings necessary. and they were effective
until the monetary disturbance in the
fall of 1907 immensely increased the
difficulty of ordinary methods of re-
lief. BY the middle of November the
available working balance in the treas
ury had been reduced to approximate
ly S5,000,000 Clearing house associa-
tions throughout the country had been
Obliged to resort TO the cxpedient Of
issuing clearing house certificates, to
be used as money. In this emergency
it was determined to invite subscrip-
tions for S5O,O0000O Panama canal
bonds and S100000.000 per cent GER
tifcates Of Indebtedness authorized by
the act of June Is, 1898 1t was pro-
posed to redepOsit in the national
banks the proceeds of these issues and
to permit their use as Il basis for addi-
tional circulation notes of national
banks The moral effect of this pro-
cedure was so great that it was neces-
sary to issue only S24. 4.631 $50 of the
canal bonds and SO. 436.J00 of
the certificates of Indebtedness
During the period from July 1, 1901,
to Sept. 30, 1908, the balance between
the net ordinary receipts and the net
ordinary expenses of the government
showed a surplus in the four years
1902, 1908. 1906 and 1907 and a deficit
IN the years 1904, 1905. 1908 and frac-
-ional part of the fiscal year 1909 The
net result was surplus of S99,2S3.-
i13.54. The financial operations of the
government during this period, based
Ipon these differences between receipts
md expenditures. resulted in net re-
iuction of the interest bearing debt Of
he United States from S9ST. .141.040 to
1897, D.. 800 Notwithstanding that there
lad been two sales of Panama canal
ponds amounting in the aggregate TO
'54, ,631 $50 and an issue of 3 per cent
certificates Of indebtedness under the
.ct OF June 13 1898, amounting TO $751;
$4,000. Refunding operations OF the
reasury department under the act OF
'1arch ii. 1900. resulted in the cOnver-
ion into . per cent consols OF 1880. OF
200, 800. 400 bonds bearing higher rates
4 interest A decrease of $685., ,956
n the annual interest charge resulted
rom these operations.
In short. during the seven years and
hree months there has been a net sur
lus of nearly one hundred millions OF
eceipts over expenditures. reduction
f the interest bearing debt by ninety
lillions, in spite of the extraordinary
xpense Of the Panama canal and a
aving of nearly nine millions on the
nnual interest charge. This is an ex-
satisfactory showing, espe-
tally in view of the fact that during
MS period the nation has never hesi-
lied TO undertake any expenditure
nat 1t regarded as necessary. There
ave been no new taxes and no in
rcases Of taxes. On the contrary