The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-12-08

Washington, Dec. 8. The annual
message of the president, read in both
houses of congress, is in full as follows:
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
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
earnestly to be hoped that the cur
rency commission will be able to pro-
pose thoroughly good system which
will do away with the existing defects.
During the period from July l, 1901,
to Sept. 30, 1908, there was an Increase
in the amount of money in circulation
of $500. 931, 1899. The increase in the
per capita during this period was S1.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 retlemptions of United
States boltis, by increasing deposits in
national banks, by stimulating addi-
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 reGuced to approximate
ly 100000. Clearing house associa-
tions throughout the country had been
obliged to resort to the expedient of
issuing clearing house certificates, to
be used as money. In this emergency
1t was determined to invite subscrip-
lions for $5O,0OO,OOo Panama canal
bonds and $1OOOOO,O00 per cent GER
tifcates of indebtedness authorized by
the act of June 13, 1895 1t was pro-
posed to redeposit in the national
banks the proceeds of these issues and
TO permit their use as basis for addi-
tional circulation notes of national
banks. The moral effect of this pro-
cedure was SO great that it was neces-
sary to issue only $24, 631 $50 of the
Panama canal bonds and $15, 436, 500 of
the certificates of indebtedness.
During the period from July 1, 1901,
to Sept. 30, 1908, 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 deficit
In the years 1904, 1905, 1908 and frac-
tional part of the fiscal year 1909. The
net result was a surplus of 500 $685.
1884. The financial operations of the
government during this period, based
upon these differences between receipts
and expenditures, resulted in a net re-
ductfon of the interest bearing debt of
the United States from 1887, 141 .O4O to
SS9I.2a3,990 Notwithstanding that there
had been two sales of Panama canal
bonds amounting in the aggregate to
S54 631,9S0 and an issue of 3 per cent
certificates of Indebtedness under the
act of June 13. 1898. amounting to $751;
436,500. Refunding operations of the
treasury department under the act of
March IA. 1900, resulted in the CONVEX
sion into 2 per cent consols of 1880 Of
s200,309, 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 net sur
plus of nearly one hundred millions of
receipts over expenditures, reduction
of the interest bearing debt by ninety
MT in, SY,st Sc II.
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
lated to undertake any expenditure
that 1t 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 reduction of taxation.
Corporations.
AS regards the great corporations en-
gagged in interstate business, and espe-
rially the railroads. l can only repeat
what 1 have already again and again
said in my messages to the congress.
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 exer-
rise this right with wisdom and eff
tectiveness 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,
rs is done by the Sherman antitrust
law, because such law can be en-
forced only imperfectly and unequal
y, and its enforcement works almost
as much hardship as good. l strongly
advocate that instead of an unwise
effort to prohibit all combinations
there shall be substituted law which
shall expressly permit combinations
which are in the interest of the public,
but shall at the same time give to
some agency of the national govern
ment full power of control and SUPER
vision over them. One of the chief
features of this control should be Sc.
curing entire publicity in all matters
which the public has right to know