The Falls City tribune., 1908-12-11

Should BE Left to the National
iGovernment-labor Leaders Come
In for Criticism-Respect for Law
Vital to the WeILBeina Of Country.
Washington.-The message of Presi-
dent Roosevelt was read in both
houses of congress Tuesday. In sub
stance the document was as follows:
To the Senate and House of Represen-
tatives: The financial standing of the
nation at the present time is excellent,
and the financial management Of the ma
tion'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 Ii is ear
nestiy to be hoped hat 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
1901, s91, 3ss. The increase in the per capita
during this period was 37.N. 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-
lions 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 $1,000, 900. Clearing
house associations throughout the coun-
try had been Obliged to resort to the
~expedient of issuing clearing house GER
tificates, to be used as money. In this
emergency it was determined to invite
subscriptions for $50. 600, 900 Panama canal
bonds, and S100, 600, 900 three per cent.
certificates of Indebtedness authorized by
the act of June 10, 1898. 1t was proposed
10 redeposit in the national banks the
proceeds of these issues. and to permit
their use as a basis for additional circu-
lating notes of national banks. The
moral effect of this procedure was so
great that it was necessary to issue only
ga, 631, $50 of the Panama bonds and $15,-
436. 500 of the certificates of Indebtedness.
During the period from July !, 1901. to
September 80, 1908, the balance between
the net ordinary receipts and the net
ordinary expenses of the government
showed a surplus in the four years 1902,
1903, 1905. and 1907. and a deficit in the
years 1904, 1905, 1908 and a fractional part
of the fiscal year 1909. The net result
was a surplus of 500, 2S3, 413. "a. The fnan-
eial operations of the government during
this period, based upon these differences
TIVE receipts and expenditures, re-
suited in a net reduction of the interest
49, r. ~ IT.41 CA.-- -
1887, 141 ,040 to 1897, 253, 800, notwithstanding
that there had been two sales of Panama
canal bonds amounting in the aggregate
10 1884, 31 $50. and an issue of three per
cent. certificates of indebtedness under
the act of June 13, 1898. amounting to
SIS, 1876, 500. Refunding operations of the
treasury department under the act of
March IA, 1900, resulted in the CONVEX
sion into two per cent. consols of 1880 of
SOC, 300. 400 bonds bearing higher rates of
interest. A decrease of IS, 687, 1856 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
Of the interest bearing debt by ninety
millions, in spite of the extraordinary ex-
pense of the Panama canal, and a saving
of nearly nine millions on the annual
interest charge.
Control Of Corporations.
AS regards the great corporations en-
gagged in interstate business, and espe-
cially the railroads., l can only repeat
what l have already again and again said
in my messages to the congress. 1 be-
lieve that under the interstate clause of
the constitution the United States has
complete and paramount right to con-
A-z1 Ill a~n~atAC of tntAr~to
and I believe that the national govern
ment alone can exercise this right with
wisdom and effectiveness SO as both to
secure justice FROM, and to do Justice to,
the great corporations which are the
most important factors in modern bust
ness. 1 believe that 1t is worse tina
folly to attempt to prohibit all COM
binations as 10 done by the Sherman
antitrust law, because such a law can
be enforced only imperfectly and I'M
equally, and its enforcement works al
most as much hardship as good. L
strongly advocate that instead Of an I'M
wise effort to prohibit all combinations,
there shall be substituted a law which
sha expressly permit combinations
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. One of the chief features of this
control should be securing entire pub
licity in all matters which the public
has a right to know, and furthermore,
the power. not by judicial but by execu-
tive action, to prevent or put a stop to
every form of improper favoritism or
other wrongdoing.
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 IF the commission should be made
thoroughgoing, so that 1t 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 I'M Rates must be made
as low as is compatible with giving prop
err returns to all the employees of the rail-
road, from the highest to the lowest,
and proper raturBs to the shareholders.
hut they must not, FOR instanee, be re-
duced in such fashion as 20 necessitate
a cut in the waEes of the employees or
the abolition of The nroner and legitimate
profits of honest shareholders
Telegraph and telephone companies en-
gagged IN interstate business should be
put under the jurisdiction of the inter-
state commission.
1t is very earnestly TO be wished that
o,,r paople through their representatives,