Arizona republican., 1908-12-09

Washington, D. C., Dec S.-The
 last message Of President Roosevelt
 to the sixtieth congress follows:
 To the Senate and House of Repre-
 sentatives:
 The financial standing of the na-
 tion at the present time is excellent,
 and the financial management of the
 nations interests by the government
 during the last seven years has
 shown the most Satisfactory results.
 But our currency system is imper-
 feet, and it is earnestly to be hoped
 that 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 1,
 1901, to September 90, 1908, there was an increase in the amount of money in circulation of S902, ,991 ,399. The in crease in the per capita during this period was $706. Within this time there were several occasions when it was necessary for the treasury de- partment to come to the relief of the money market by purchases or re- uNlllbNlbI1 OL Otllttu SldltS DOnuS. by increasing deposits in national banks; by stimulating additional is sues of national bank notes, and by facilitating impOrtations from abroad of gold. Our imperfect currency sys- tenn has made these proceedings nec- essary and they were effective until the monetary disturbance in the fall of 1907 immensely increased the diff ficulty of ordinary methods of relief By the middle of November the available working balance in the treasury had been reduced to ap- prOximately $5,000.00 Clearing house associations throughout the country had been obliged to resort to the ex- pedient of issuing clearing house cer- tificates, to be used as money. In this emergency it was determined to invite subscriptions for s5O,O0O.OOO Panama canal bonds, and s1OO, 900. 900 per cent certificates of indebted ness authorized by the act of June 13, 1898. It was proposed to re- deposit in the national banks the proceeds of these issues, and to per init their use as a basis for addition al circulating notes of national banks. The moral effect of this procedure was so great that it was necessary to issue only $24,631, ,9SO of the Pan anna canal bonds and s15,436. 800 of the certificates of indebtedness.
 During the period from July l, 1901, to September 90, 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, 1906 and 1907. and deficit in the years 1904, 1905, 1908, and fractional part of the fiscal year 1909. The net result was a surplus of s99,2S3,413.54 The fi- nancial operations of the government during this period, based upon these differences between receipts and ex- penditures, resulted in a net reduc- tion of the interest bearing debt of the United States from S9S7,141 ,O4O to $S97, ,990, notwithstanding that there had been two sales of Panama canal bonds amounting in the aggre- gate to $54,631 ,9SO. and an issue of 2 per cent certificates of indebtedness under the act of June 13, 1898, to s15,430, 800. Refunding operations of the treasury department under the act of March IA, 1900, re- suited in the conversion into 2 per cent consols of 1903 of $200,309,40 bonds bearing higher rates of inter est. 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 a net surplus of nearly one hundred millions of receipts over expendi- lures, a reduction of the interest bearing debt by ninety millions, in spite of the extraordinary expense of the Panam canal, and a saving of nearly nine millions on the annual interest charge. This is an exceed ingly satisfactory showing, especially in view of the fact that during this period the nation has never hesitated to undertake any expenditure that it regarded as necessary. There have been no new taxes and no increases or taxes; on the contrary some taxes