The Monte Vista journal., 1908-12-12
UbocUMENT FROM CHIEF ExEcU.
TIVE READ IN CONGRESS-.
URGES CHANGES IN LAWS
Present Currency System Declared
lmpe1eet-controi Of Corporations
the Province Of the National Gov
ernment-conduct Of Labor Lead.
ers critieised-For Postal Savings
Banks.


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
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
thoroughly good system which will do
away with the existing defects.
During the period from July J. 1901 to
September 30. 1905 there an increase
in the amount OF money in circulation OF
500. ssl, ass. The increase in the per capita
during this period was SI.OS. Within this
time there were several occasions when
II was necessary for the treasury de-
partment to come to the relief OF the
money market by purchases or redemp-
tons 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 We're 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 S5.000.o1S. Clearing
house associations throughout the coun-
try had been obliged to resort TO the
nf tSRt inV los ~,
thcates. to be used as money. In this
emergency 1t was determined TO invite
subscriptions for &500 100000 Panama canal
bonds. and &lc0oN.oo0 three per cent.
certificates of Indebtedness authorized by
the act of June IL. 1885. II was proposed
TO redeposit In the national banks the
proceeds OF these issues and to permit
their use as basis for additional circu-
latinE notes of national banks. The
moral effect OF this procedure was so
Axreat that II was necessary TO issue only
I32%. s3l 80 OF the Panama bonds and SIS
t36.600 OF the certiffc ates OF indcbt cdnes>.
During the period from July !. 1901. TO
September 30 1905, the balance between
the net ordinary receipts and the net
ordinary expenses OF the government
showed \ surplus in the four years 1902.
1900 1906. and 1907. and n deficit in the
years 1904. 1906 1895 and n fractional part
OF the nscnl year 1859. The net result
WINS n surplus of So. 81. tl2J The imam
cial 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
Sss'. go TO tss,. 253 $50. Notwithstanding
that there had been two sales Of Panama
canal bonds amounting In the aggregate
10 GN.G3l 80. and an issue OF three per
cent. certificates Of Indebtedness Ut Ter
the act Of June ~. 1885. amounting 10
HsHn nYAy1 NJ he
treasury department under the act OF
March II. 1850. resulted In the CONVEX
sion Into two per cent. consoia Of 1890 OF
e9oo. 3d. oo bonds bearing higher rates Of
interest. A decrease of q. es7 $50 Ia the
annual interest charge resulted from
these operations.
In short. during the seven years and
thres months there has been = net sur
plus OF nearly one hundred millions Of
receipts over expenditures. q reduction
OF the interest-benrinE debt by ninety
millions. In spite of the extraordinary ex-
penss OF the Panama canal. and Q saving
OF nearly nine millions on the annual
interest charge.
The message rciterstes 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.
eminent. He says:
I believe that Il IL worse than folly
a. 10 done BY the Sherman anti
trust law. because such . law can
b enforced only ,mperfsctiy and un.
equally. and It's enforcement works al.
most - much Hardship ~ good. I
strongly advocate that instead Of an un.
there shall b substituted . law which
shall expressly permit combinations