Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1908-12-12
To the Senate and House of Representa-

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 satisfac-
tory results. Hut our currency system Is
imperfect. aud IL is earnestly TO he 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 I. 1901. TO
Sept. 40 zoos. there was an increase in
the amount of money In circulation OF
5000 oD1 .3go. This increase In the per
capita during this period was -. O6. With
In 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 rcdemp-
tions of United States bonds: by increas-
ing deposits in national banks by stimu-
lating 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 S0.OOO.OW. Clearing
house associations throughout the country
of issuing clearing house certificates. to
he used as money. In this emergency 1t
was determined to invite subscriptions for
S5O.OOO.Om Panama canal bonds and
S1W.OW.OD three per cent certificates OF
Indebtedness authorized by the act OF June
IL. 1898. II was proposed to re!deposit
In the national banks the proceeds OF
these issues. aud to permit their use ms
a basis for additional circulating notes OF
national banks. The moral effect OF this
procedure was so great that II was neces.
sary to issue only S24. 1871 .9SO Of the Pan.
anna canal bonds and SiJ.i3G,JOO OF the
certificates of Indebtedness.
During the period from July I. 1901. to
Sept. 30 1908. the balance between the
net ordinary receipts and the net ordinary
expenses of the government showed sur.
plus in the four years 1902. 1903. 1W6
and 1907. and deficit In the years 1904.
1905. 1908. and n fractional part Of the
fiscal year 1900. The net result was q
surplus Of 500. 2S3. 4l3.54. The financial
operations of the government during this
period. based upon these differences be.
tween rcceiptsand expenditures. resulted In
a net reduction Of the interest. hearing debt
Of the United States from S!'SI. 141.OlO
to SS97 .253O0O. Notwithstanding that
there had been two sales Of Panama canal
bonds amounting In the aggregate to SOL
G31 $50, and an issue of three per cent
certificates Of indebtedness under the act
OF June l3. 1893. amounting to S1o: 43O..
roo. Rcfunding operations OF the Treas
ury Department under the act Of March
II. 1900. resulted In the conversion into
two per cent consols Of 1890 Of S?W.30..
400 bonds bearing higher rates Of interest
A decrease Of SS.tiS1 .DJO In the annual In
tcrcst charge resulted from these opera
tions.
In short. during tho seven years and
three months there has been net surplus
Of nearly one hundred millions Of receipts
over expenditures. q reduction OF the In
tercst.bearlng debt by ninety millions. In
spite of the extraordinary expense OF the
Panama canal. and saving Of nearly
nine millions on the annual interest charge
This II an exceedingly satisfactory show
ing. especially In view Of the fact that
during this period the nation has never
hcsitatcd to undertake any expenditure
that II regarded as necessary. There have
been no new taxes and no increases oil
taxes: on the contrary. some taxes have
been taken of there has been reduction
Of taxation.
Corporations.
As regards the great corporations en-
gnged In interstate business, and especial
~ the railroads. ! can only repeat what
messages to the Congress. ] believe thai
under the interstate clause of the Consti
tuition the United States has complct,
and paramount right to control all agcn
cics Of interstate commerce, and ! belicv,
that the national government alone car
exercise this right with wisdom and elfec
tivcness so rs both to secure justice from
and TO do justice to, the great corpora
tions which arc the most important fac
tnrl n madam hu,tp,Ss \ haltnro Al,
II Is worse than folly to attempt to pro
hibit all combinations Ms IL done by tn
Sherman antitrust law, because such
law can be enforced only impcrfcctly an,
uncqually. and its enforcement works al
most MS much hardship as good l strong
~ advocate that instead of an unwis
effort to prohibit all combinations, Their
shall be substituted law which shnl
expressly permit combinations which ar
In the interest Of the public. but shall a
the same time give to some agency OF tn
national government full power Of contro
and supervision over them. One of tn
chief features of this control should b
securing entire publicity In all matter
| which the public has n right to know. an
| furthermore. the power. not by judicia
but by executive action. to prevent or p,i
a stop to every form Of improper favoril
ism or other wronsdolng.
The railways Of the country should
| put completely under the Interstate con
mcrce commission and removed from til
domain OF the antitrust law. The Dowe
of the commission should be made thol
Oughgoing, so that 1t could exercise con
plcte supervision and control over Il,
issue OF securities as well as over the raj,
ing and lowering of rates. As regard
rates. at least, this power should be sun
mary. The power to investigate the finar