The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-12-08
MESSAGE

To the Senate and House of Repre-
sentatives:
Finances.
The financial standing of the nation
at the present time is excellent, and
the financial management of the ma
tion's 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 1, 1901,
to Sept. 80, 1908, there was an increase
in the amount of money in circulation
of 1902. 991, 399 The increase in the
per capita during this period was $7.O6.
Within this time there were several
occasions when 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 addf-
tionaI 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 $5,00o,O00. Clearing house associa-
tons throughout the country had been
81 70 RI nj
issuing clearing house certificates, to
be used as money. In this emergency
it was determined to invite subscrip-
lions for $4,000, 900 Panama canal
bonds and $1OO,OOo,OOO per cent GER
tificates 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
20 permit their use as a basis for addi-
tionaI circulation notes of national
banks. The moral effect of this pro-
cedure was so great that it was neces-
sary to issue only $24, 81, $50 of the
Panama canal bonds and SIS, 436, 800 of
the certificates of Indebtedness.
During the period from July 1, 1901,
to Sept. 80, 1908, the balance between
the net ordinary receipts and the net
showed a surplus in the four years
1902, 1908. 1906 and 1907 and a deficit
in the years 1904, 1905, 1908 and frac-
tional part of the fiscal year 1909. The
net result was a surplus of 500, 2S3,-
413.54. The financial operations of the
government during this period, based
upon these differences between receipts
and expenditures, resulted in net re-
duction of the interest bearing debt of
the United States from 1881, 141, O4O to
$780,, 253, 800 notwithstanding that there
had been two sales of Panama canal
bonds amounting in the aggregate to
$54,631,9SO and an issue of per cent
certificates of Indebtedness under the
act of June ID, 1898, amounting to $15,-
436,5O0. Refunding operations of the
treasury department under the act of
March IA, 1900, resulted in the CONVEX
sion into 2 per cent consoIs of 1880 of
$500, 1900, 400 bonds bearing higher rates
of interest. A decrease of $S,6S7, 1856
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, reduction
of the interest bearing debt by ninety
millions, in spite of the extraordinary
expense of the Panama canal and a
saving of nearly nine millions on the
annual interest charge. This is an ex-
ceedingly satisfactory showing, espe-
cially in view of the fact that during
this period the nation has never hest
tated to undertake any expenditure
that it regarded as necessary. There
have been no new taxes and no in
creases of taxes. On the contrary,
some taxes have been taken off. There
has been a reduction of taxation.
Corporations.
AS regards the great corporations en-
gagged in interstate business, and espe-
cially the railroads, 1 can only repeat
what 1 have already again and again
said in my messages to the congress.
1 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 l believe that the
national government alone can exer-
else this right with wisdom and eff
fectiveneSS so as both to secure Justice
from and to do justice to the great
corporations which are the most i'm
portant factors in modern business. I
believe that it is worse than folly to
attempt to prohibit all combinations,
as is done by the Sherman antitrust
law, because such a law can be en-
forced only imperfectly and unequal
ly, and its enforcement works almost
as much hardship as good. I strongly
advocate that instead of an unwise
effort to prohibit all combinations
there shall be substituted a law which
shall expressly permit combinations