Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-12-08

Washington, Dec. s. The annual
message of the president. read in both
houses of congress, is in full asfollows
10 the Senate and House of Repre-
sentatiyes:
Finances.
The financial standing of the nation
Mt the present time is excellent, ana
the financial management of the na-
TONS interests by the government dur
ing the last seven years has shown the
most satisfactory results. But our cur
lency 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 !, 1901,
to Sept. so, 1908, there was an increase
in the amount of money in circulation
Of 1902, 901 300. The increase in the
per capita during this period was $7O6.
Within this time there were several
occasions when it was necessary Tor
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 addi-
tiona 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 $5,0OO,00O. Clearing house associa-
lions 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,oo0,O00 Panama canal
bonds and s1OO,oO0,000 per cent GER
tificates of indebtedness authorized by
the act of June ID, 1898. 1t was pro-
posed to redeposit in the national
banks the proceeds Of these issues and
to permit their use as n basis for addi-
stional circulation notes of national
banks. The moral effect Of this pro-
cedure was so great that 1t was neces-
snry to issue only S24,631 $50 Of the
Panama canal bonds and S15, 1885, 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
ordinary expenses or the government
showed a surplus in the four years
1902, 1903. 1906 and 1907 and deficit
in the years 1904, 1905, 1908 and n frac-
tlonal part of the fiscal year 1909. The
net result was a surplus of $99,2s3,-
413.54. The financial operations Of the
during this period, based
upon these differences between receipts
and expenditures, resulted in a net re-
duction of the interest bearing debt Of
the United States from S9S7, 141,040 to
1881, 253, 300 notwithstanding that there
had been two sales Of Panama canal
bonds amounting in the aggregate to
S54,631 $50 and an issue of . per cent
certificates of Indebtedness under the
act of June 13, 1898, amounting to $751;.
$4,000. 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
$500, 1903, 400 bonds bearing higher rates
of interest. A decrease of SS,6S7, 1856
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, a 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 cx-
sceedlngly satisfactory showing, espe
cially in view Of the fact that during
this period the nation has never hest
lated 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, l can only repeat
what have already again and agar
said in my messages to the congress
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 / believe that tht
national government alone can eXer
else this right with wisdom and eff
fectlveness so us both to secure Justice
from and to do justice to the great
corporations which are the most i'm
portant factors in modern business.
believe that it is worse than folly tc
attempt to prohibit all combinations
as is done by the Sherman antitrust
law, because such Il law can be en-.
forced only impertectly 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 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 fhnl chiof