The Holly chieftain., 1908-12-11
HEAR MESSAGE
OF PRESIDENT
DOCUMENT FROM CHEF ExEcU.
TIVE READ IN CONGRESS.
URGES CHANGES IN LAWS

the Province Of the National Gov
srnmsnt-conduet Of Labor Lead
srs critieissd-For Postal savings
Danks.
Washington.-In his message to
congress, read In both houses Tues
day. President Roosevelt makes i'm
portant suggestions as to what he
considers necessary legislation.
The president congratulates the ma
ton on its present excellent financial
standing. but calls attention to the
need of remedying defects in the cur
rency system. He says:
The financial standing Of the nation
at the present time Is excellent,
and the financial management of the ma
uon'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 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 /. 1901, to
September 30. 1908. there was an increase
in the amount of money In circulation of
$SVE,S0A,cSo. lie iuCIcdse Ill tHc per CdP Pild
during this period was $706. Within this
time there were several occasions when
1t 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 100000. Clearing
house associations throughout the coun-
try had been obliged to resort to the
expedient OF issuing clearing house GER
tifcates. to be used as money In this
emergency 1t was determined to invite
subscriptions for $50, 1000, 900 Panama canal
bonds. and $100000,OOO three per cent
certificates Of indebtedness authorized by
the act of June 10. 1898. 1t was proposed
to redeposlt in the national banks the
proceeds Of these issues. and to permit
their use as basis for additional circu-
lating notes Of national banks. The
moral effect of this procedure was SO
great that 1t was necessary to issue only
ls6.5oo Of the certificates of indebtedness.
During the period from July !. 1901. to
September 30, 1908, the balance between
the net ordinary receipts and the net
ordinary expenses of the government
showed surplus in the four years 1902.
1903. 1906 and 1907. and a deficit In the
years 1904 1906 1908 and a fractional part
of the fiscal year 1909. The net result
was surplus Of $Ss, ,2s3, ,413.54. The finan-
cial operations of the government during
this period. based upon these differences
between receipts and expenditures, re-
suited in net reduction OF the interest
bearing debt of the United States from
1887, ,14l .040 to 1897, ,253, $50, Notwithstanding
that there had been two sales of Panama
canal bonds amounting in the aggregate
to $50, and an issue of three per
cent certificates of Indebtedness under
the act of June 49, 1885, amounting to
$l5, ,436,500. Refunding operations of the
treasury department under the act of
March II. 1900, resulted In the CONVEX
sion into two per cent. consols of 1890 of
$500. .3Os, 400 bonds bearing higher rates of
interest. A decrease of $s,6S7,956 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, a reduction
millions, in spite of the extraordinary ex-
pense OF the Panama canal, and a saving
of nearly nine millions on the annual
interest charge.
The message reiterates the we'll
known views of the president that the
control of great corporations, espe-
cially the railroads of the country,
should be vested in the national gov
ernment. He says:
believe that 1t is worse than folly
to attempt to prohibit all combinations
as is done by the Sherman anti
trust law. because such law can
be enforced only imperfectly and un-
equally. and its enforcement works al
most as much hardship as good. I
strongly advocate that instead of an un-
wise effort to prohibit all combinations,
there shall be substituted a law which
which are in the interest of the public,
but shall at the same time give to some
agency In the national government full
power Of control and supervision over
them.
The railways of the country should be
put completely under the interstate COM
merce commission and removed from
the domain Of the antitrust law. The
power Of the commission should be made
thoroughgoing. SO that it could exercise
complete supervision and control over
the issue Of securities as we'll as over
the raising and lowering Of rates. As
regards rates, at least this power should
be summary. Rates must be made
as low as is compatible with giving prop
er returns to all the employees of the rail-
road. from the highest to the lowest,
and proper returns to the shareholders,
but they must not, for instance, be re-
duced in such fashion as to necessitate
cut In the wages Of the employees or
the abolition of the proper and legitimate
profits of honest shareholders.
interests Of the Waaeworker.