New-York tribune., 1908-12-09
THE PRESIDENTS MESSAGE


Finances ests by the government during
tie last seven years has shown
the most satisfactory results But our currency
system is imperfect and ii is earnestl! az ~ % S
hoped that The Currency Commission VII. Ue
able 70 propose thoroughly good system "hi0''
will DO away with the existing delecls-
During the period from July l. 1901. TO sep
tenber 50. 1895 there was an increase IN IN oan III
amount OF money in circulation OF SSo.'SS1tS's,
The Increase in the per capita during this period
was g. o6. Within this time there were seNeIai
occasions when II was necessary Tot the = -,
t,rv Department to come to the relief 3I the
money market by purchases or redenpuons OF
United states bonds. 10y increasing dep9slts IN IN
national banks: by stimulating additional issues
of national bank notes ano by IaCilLlalIIIs
portations from abroad Of gold our Imperfect
currency system has mace tnese ~ 80 Is
necessary. and they were efeCtlNe uLtH uLu IIIe
monetary disturbance in the fall OF lSea mn
rpensely increased the difficulty Of ordinary
methods Of relief BY the middle or NoNFiioei
the available working balance in the treasury
had been reduced 70 approximately S7,VVV'"VV-
Clearing house associations throughout the
country had beer obliged TO resort to the eX-
pedient Of issuing clearing house certincates 70
be used money In this emergency II oaS WaS
determined 10 invite subscriptions for S5oOeo-o'V
Panama Canal bonds and s10o0oo.oOo per cent
certificates Of Indebtedness authorized by the
act Of June 12 1898. II proposed 10 re
deposit in the national banks the proceeds OF
these issues and 70 permit their use as oaslS
for additional circulating notes OF nauofldl
hanks. The moral effect Of this procedure was
So great that il was necessary to issue only
sz4 6Sl as0 Of the Panama Canal bonds ana
s7Ezas 500 Of the certificates of Indebtedness
During the period from july :. 1901. to Sep
rer1be- so 1905 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 oehclt IN
the years 1903. 1905 1905 and fractional part
surplus Of seQ 2S3.413 50 The financial opera
tions Of the government during this period. based
upon these differences between receipts and
expenditures, resulted in net reduction OF the
interest bearing debt Of the United States from
S9s7.IzI 040 SS95,253 $50, Notwithstanding that
there na6 been TWO sales Of Panama Canal bonds
an issue of s De- cent certificates Of Indebted
res< ,-der the act ot June 13 1898 amounting
70 s1543s.5o0 Refundng operations of the
Treasury Department under the act Of March
a 1900. resulted in the conversion into per
ing higher rates Of interest decrease OF
ss So q5s II the annual interest charge resulted
from these operations.
In short during the seven years and three
months there has been net surplus OF nearly
one hundred millions OF receipts over eXpendl-
tures. & reduction Of the interest bearing debt
oz ninety millions in spite of the extraordinary
expense Of the Panama Canal. and a saving of
resrI1- nine millions on the annual interest
charge This is exceedingly satisfactory
showing. especially IN view Of the fact that dur
ing this period the nation has never hestated
70 undertake any expenditure that II regarded
IS necessary There have been no new taxes and
no increases of taxes; on the contrary. some
taxes have been taken of: there has been
reduction Of taxation.
As regards the great corporations engaged in
interstate business. and especially the railroads
I can only repeat what have
Corporations already again and again said in
my messages TO the Congress
I believe that under the interstate clause Of the
Constitution the United States has complete and
paramount right to control all agencies Of inter
state commerce. and believe that the national
government alone can exercise this right with
wisdom and effectiveness so as both TO secure
Justice from, and TO do justice 10, the great cor
porations which are the most important factors
in modern business. l believe that II IS worse
than folly TO attempt 10 prohibit all COmbina-
tions. as is done by the Sherman antitrust law,
because such law can be enforced only i'm
Y.
works almost a. much hardship good l
strongly advocate that instead of an unwise
effort - prohibit all combinations, there shall
be substituted law which shall expressly per
nit combinations which are IN the interest Of
the public. but shall At the same time give to
some agency Of tie national government full
power IF control and supervision them.
one Of the chief features Of this control should
be securing entlre publicity IN all matters which
the public has right to know. and Furthermore,
the power. not BY judicial but by executive ac-
ton. 10 prevent or put a stop TO every form OF
improper faVoritism other wrongdoing.
The railways Of the country should be put
cay7pletelv under the Interstate Commerce Com
mission and removed from the domain of the
antitrust Law The power Of the commission
should be made thoTOughgoing. SO that il could
exercise complete supervision and control over
The issue Of securities as well as over the raising
and lowering 4 rates As regards rates, at
least. this power should be summary. The
power TO investigate the financial operations and
accounts Of the railways has been one OF the
most valuable features in recent legislation.
Power to make combinations and traffic agree
rueats should be explicitly conferred upon the
railroads, the permission Of the commission
being first gained and the combination or agree
ment being published in all its details. In the
interest Of the public the representatives of the
public should have complete power 10 sea that
the railroads do their duty by the public, and as
matter OF course this power should also be
exercised so as 10 see that no injustice is done
70 the railroads The shareholders. the employees
and the shippers all have interests that must
be guarded. II IS 10 the interest of all Of them
that HlndlIng stock speculation should be
allowed and that there should be no improper
issuance Of securities. The guiding intelligences
necessary for the successful building and sue
Cessful mana cement Of railroads should receive
ample remuneration. but no man should be
allowed 70 make money in connection with rail
roads out Of fraudulent overCa apitalization and
kindred stock gambling performances. there
must be NO defTauding Of investors, oppression
of the farmers and business men who ship
freight, or caIIous disregard Of the rights and
neecs OF the eInpicyes. IN addition TO this, the
interests of the shareholders Of the employees
and Of the shippers should all be guarded as
against another. To give any one Of them
undue and improper consideration Is to do in
Justice the others. Rates must be made a s
low as is compatible with giving proper returns
70 al the employees Of the railroad from the
highest 20 the lowest, and proper returns 10
the Shareholders. but they must not for in
stance, be reduced in such fashion as to necessi-
tate cut in the wages Of the employees the
abolition Of the proper and legitimate profits
Of honest shareholders
Telegraph and telephone companies engaged
in interstate business should be put under the
jurisdiction Of the Interstate Commerce Com
mission
II is very earnestly 10 be wished that our
people. through their representatives. should act
5n This matter. It is hard 10 say whether most
damage TO the country at large would come
from entire failure on the part Of the public
10 supervise and control the actions Of m.
great corporations or from the exercise Of the
necessary governmental power IN a way which
would do injustice and wrong n the corpora
ton Both the preachers Of unrestricted
fndfvfdualisrr and the preachers Of an oppres-
sion which would deny to able men of business
the lust reward - their initiative and business
sagacity are advocating policies that would be