The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-12-09

To the Senate and House or Representa-
tiyes:
The financial standing of the nation at
the present time is excellent. and the
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
he able to propose a thoroughly good sys-
tam which will do away with the existing
defects.
During the period from July l. 1901. 10
Sept 81. 1905. there was an increase In
the amount of money in circulation of
1902 99l. 39s. The increase in the per capita
during this period was s7.06. Within this
dme there We're several occasions when
IL was necessary for the treasury depart
ment to come TO the relief of the money
market by purchases or redemptions of
United States bonds; by increasing depOs-
its in national banks. by stimulating addi-
tional issues of national bank notes, and
by facilitating importauons from abroad
of gold Our imperfect currency system
has made these proceedings necessary,
and they We're effective until the none
tary disturbance IN the fall of 1907 i'm
nensely increased the difficulty of ordin-
AIRY methods of relief. BY the middle of
November the available working balance
in the treasury had been reduced to APP
DroXimately $500 O1J- Clearing house as
Hociations throughout the country had
been obliged to resort TO the expedient
OF Issuing clearing house certificates, 10
be used as money. In this emergency il
was determined to invite subscriptions for
S5OO00.O0O Panama canal bonds, and Si09.
10000 per cent certificates OF indebted
ness authorized by the act of June IS.
1925. II was proposed to re-deposit in the
national banks the proceeds OF these is
sues. and to permit their use as s basis
for additional circulating notes of national
banks. The moral effect of this procedure
that In necessary IN g
sue only S24 $50 of the Panama canal
bonds and SIS. go OF the certificates of
Indebtedness.
National Debt Reduced.
During the period from July /. 1901. to
Sept. 30. 1905, the balance between the net
ordinary receipts and the net ordinary
expenses OF the government showed a sur
plus in the four years 1902 1893 1906 and
1851, and deficit in the years 1904. 1895.
1908 and a fractional part Of the fiscal
year 1909. The net result was a surplus
of S99, 2S3. 41354 The financial operations
of the government during this period,
Nased upon these differences between re-
ceipts and expenditures, resulted in a net
reduction CT the Understanding debt of
the United States from $685.. i4l040 to SS97-
2O3, 800 notwithstanding that there had
been two sales OF Panama canal bonds
amounting In the aggregate to So. 631. $50.
and an issue of per cent certificates of
Indebtedness under the act of June -,
operations OF the treasury department I'M
der the act of March "A. 1899. resulted in
the conversion into per cent consols of
1880 of s200, 500, 100 bonds bearing higher
rates of Interest A decrease OF SS.6S7, 955
in the annual interest charge resulted from
these operations.
In short, during the seven years and
three months there has been net sur
Plus CT nearly io9,019o19 of receipts over
expenditures. reduction of the interest
bearing debt by ss0.eO0.0o0 in spite of the
extraordinary expense of the Panama ca
nal. and a saving of nearly S9,000,O00 on the
annual interest charge. This is an exceed /
ingly satisfactory showing, especially in
view Of the fact that during this period the !
nation has never nesItated to undertake I
any expenditure that II regarded as nee Z
essary. There have been no new taxes I
ana no lncreasss OF taxes; on the contrary I
some taxes have been taken off: there /
has been reduction OF taxation.
Corporations.
As regards the great corporations en- ]
gaged in Interstate business, and espe- !
cially the railroads. ] can only repeat 1
what have already again and again said I
IN my messages TO the congress. ! be- |
lieve that under the interstate clause Of 4
the constitution the United States has 4
complete and paramount right TO con- /
uol all agencies Of interstate commerce,
and l believe that the national govern /
ment alone can exercise this right with [
secure justice from. and. to do justice to. 4
me great corporations which are the most /
important factors in modern business |
= believe that II is worse than folly T.
= 70 attempt TO prohibit all combina- =
= tons as is done by the Sherman =
= antitrust law. because such a law = /
y can be enforced only imperfectlv and =
y unequallS. and its enforcement + /
= works almost as much hardship as =
y good. ! strongly advocate that in r /
= stead OF an unwise effort 10 pro- =
y hloit all combinations. there shall be =
y substituted law which shall ex- i
= pressly permit combinations which =
y are in the interest Of the public. but : I
y shall at the same time give to some =
y agency OF the national government b
= null power of control and super- h
p vision over them. One of the chief 1
y features OF this control should be Sc l.
= curing entire publicity in all matters b
= which the public has a right 10 i
y know. and furthermore the power 9
y not by judicial but by executive ac- i
' ton, 10 prevent OF put stop TO ev- =
= cry form Of improper favoritism or ;
= other wr0ngdoing.