Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-12-08
Reduction of National Debt
and of Tax Rates During
Roosevelt Administration.
Relief of Corporations From
Too Rigid Legislation Is Pro-
posed.
BIGGER PAY FOR JUDGES.
Conditions of DesoIation in
China Cited PictoriaIIy and
in Text as Object Lesson to
Further Projects for Conser-
walton of National Re-
sources.

To the Senate and House of Representa-
tives:
The financial standing of the nation al
the present time is excellent, and the
financial management of the nations In.
terests by the government during the
last seven years has shown the most
satisfactory results. But our currency
system is imperfect. and it is earnestly
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 1. 1901, ia
September 80, 1903, there was an increase
in the amount of money in circulation OF
500 col 500. The increase in the per
capita during this period was $1.O6
Within this time there were several oc-
casions when 1t was necessary for the
Treasury Department to come to the relief
Of the money market by purchases or re-
demptions Of United States bonds; by
increasing deposits in national banks; by
stimulating additional issues of national
bank notes. and by facilitating importa-
tions from abroad of gold.
OR imperfect currency system has made
these proceedings necessary, and they
were effective until the monetary dis
turbence IN the fall OF 1907 immensely
Increased the difficulty of ordinary meth
eds of relief BY the middle of Novem-
Der the available working balance in the
treasury had been reduced to approx
mately 100000 Clearing house as
sociations throughout the country had
been obliged to resort to the expedient of
co IN no
used as money.
In this emergency it was determined to
invite subscriptions for $oO.O0O.OOO Panama
canal bonds, and 500 10000 per
cent certificates Of indebtedness author
lied by the act OF June Is. 1898. 1t was
proposed to redeposit In the national
banks the proceeds Of these issues. and to
permit their use as basis for additional
circulating notes Of national banks. The
moral effect of this procedure was so
great that 1t was necessary to issue only
$24. 631 $50 Of the Panama canal bonds
and $15. 436, 500 of the certificates of in
debtedness.
Surplus and Deficits.
During the period from July 1, 1901. to
September 20, 1908. the balance between
binary expenses of the government
showed a surplus in the four years 1902,
1903, 1906 ard 1907, and a deficit in the
years 1904. 1905. 1908 and a fractional
part of the fiscal year 1909 The net
result was surplus of 500, 28S, 413.54.
The financial operations of the gov
eminent during this period, based upon
these differences between receipts and
expenditures, resulted in a net reduction
of the interest-bearing debt OF the United
States from 1857 $40 to SS97, 800.
notwithstanding that there had been two
sales of Panama canal bonds amounting
in the aggregate to $54, g. $50, and an
issue of 3 per cent certificates Of indebt-
eoness under the act OF June Ii, 1898,
amounting to SIS, $4,000.
RefundinE operations of the Treasury
Department under the act OF March Ia.
1900. resulted in the conversion into 2
bonds bearing higher rates of interest.
decrease Of s.. 6S7 $50 in the annual
interest charge resulted from these oper-
atoms.
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 Understanding debt by ninety
millions, in spite of the extraordinary
expense of the Panama canal, and a saw
ing of nearly nine millions on the annual
interest charge.
This is an exceedingly satisfactory
showing. especially in view of the fact
that during this period the nation has
never hesitated to undertake any ex-
penditure that it regarded as necessary.
There have been no new taxes and no
increases OF taxes: on the contrary SONS
taxes have been taken off; there has
been a reduction OF taxation.