The state herald., 1908-12-11


In for critioism-Respeot for Law
Vital to the We'-Beins Of Country.
Washington.-Them message of Presi-
dent Roosevelt was read in both
houses of congress Tuesday. In sub
stance the document was as follows:
To 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
ing 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 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 in circulation OF
3sp2. .9el. .3s9. The Increase in the per capita
during this period was S7.06. Within this
time there were several occasions when
It was necessary for the treasury de-
partment to come to the relief OF the
money market by purchases or redemp-
tions 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
die of November the available working
balance in the treasury had been reduced
TO approximately S.000.Oo0 Clearing
house associations throughout the coun-
try had been obliged to resort TO the
eSpedient OF issuing clearing house GER
tihcates. TO be used money. In this
emergency 1t was determined TO invite
subscriptions for s50.00o 900 Panama canal
bonds, and 800 600 three per cent
certificates of Indebtedness authorized by
the act OF June IL. 1898. II was proposed
TO redeposit in the national banks the
proceeds OF these issues. and to permit
their use as basis for additional circu-
1ating notes of national banks. The
moral effect of this procedure was so
great that II was necessary to issue only
2t63l,ss0 OF the Panama bonds and sl5.-
<35.5oo of the certificates OF indebtedness
During the period from July l. 1901. TO
September %. 1905. the balance between
the net ordinary receipts and the net
ordinary expenses OF tn. government
showed a surplus In the four years ie0,
1901. 1896. and 1901. and n deficit In tho
years 1894, 1906 1905 and n fractional part
of the fiscal year 1909. The net result
was a surplus OF 500 -. ii3bi. The finnn-
clal operations OF the government during
this period, based upon these differences
between receipts and expenditures. re-
suited In n net reduction OF the Interest,"
bearing debt OF the United States from
1sN. 1900 10 ssgl. -. 800, twithstandinE
that there had been two sales OF Panama
canal bonds amounting In the aggregate
To ~ $40. and an issue OF three per
a lnHgbtenuHga
the act OF June is. 1875. amounting to
sl5,tat.aQQ, Refundlng operations Of the
treasury department under the act of
March u. 1900 resulted In the conver-
sion Into two per cent consois OF 1890 OF
So. -. go bonds bearing higher rates OF
interest A decrease Of sSCsi.Es In the
annual interest charge resulted from
these operations,
In short. during the seven years aud
three months there has been net sur
plus OF nearly one hundred millions Of
receipts over expenditure "a reduction
of the interest-boaring debt by ninety
millions In spite Of the extraordinary ex.
psnse OF the Panama canal. and saving
of nearly nine millions on tho annual
interest charge.
Control OF Corporations.
As regards the great corporations en-
gagged In Interstate business. and espc-
cially the railroads, l can only repeat
what have already again and again said
In my messages To the congress- 1 he.
ileye that under the Interstate clause OF
the constitution tho United States has
complete aud paramount right 10 con.
troll all agencies Of Interstate commerce
and ! believe that the national govern.
msni alone can exercise this right with
wisdom and effectiveness 20 hs both 10
secure Justice from. and 10 do Justice to,
tho great corporations which are the
most important factors IN modern busl.
ness. l believe that Il II worse than
folly 10 attempt 10 prohibit ali com.
binatlons us Is done hy the Sherman
antitrust law, because such n law can
DO enforced only impeffectiy and un.
equally. and It's enforcement works al.
most an much hardship as good. 1
strongly advocate that instead OF an uns
wise effort TO prohibit all combinations.
there shah he substituted law which
shall expressly permit combinations
which ara In the interest OF IN. public,
but shall al the same time give to some
agency In the national government fun
power Of control ami supervision over
them. one ~ tho chief features " this
control should b. securing entire pub.
iicity In all matters which tho public
has q right 90 know. and Furthermore.
the power, not by judicial but by oK.eus
tlv. action. tn prevent ar put stop 90
every form of Improper faNoutism OF
other wfnnsdainr
The railways ~ the country should bs
put completely under the Interstate rnml
nsfrr commission aud removed from
,hs domain Of the antitrust law. The
power 81 the commission should b. made
ihafounhgninE, 20 that u could exercise
complete supervision aud control over
the issue Of securities a- we'll as over
the raising and lowering Of rates. As
regards rates. at least. ihis power should
he summary a. Rates must hn made
as low aH IL compatible with giving prop.
or returns to all the employees ~ the rail.
road, from the hinhsAt 10 the lowest,
and proper return. tn the shareholders,
but they must not faf Instance, be re-
dufsd In such fashion as tn nneessitais
eui IN the wages ~ the employees 8f
the abolition ~ the proper and legitimate
pton's Of honest shareholders
Telegraph and telephone companies en-
gagged IN Interstate business should b.
pni under the Jurisdiction ~ ,hs inter
STATE commerce commission
IL NeVs satAFstis ~ b0 wlsHnI that