Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1908-12-09

1917
ed States; Communicated to the
Two Houses of Congress at the Be-
ginning of the Sixticth Congress.
MESSAGE.
To the Senate and House of Repre-
sentatives;
Finances.
The financial standing Of the nation
at the present time is excellent, and
the financial management of the ma
tons interests by the government
during the last seven years has shown
the most satisfactory results. But cur
currency system is imperfect, and it Il
earnestly to be hoped hat the ,Ur-
rency commission will be able to poo
pose a thoroughly good system when
VIII do away with the existing uo-
fectS.
During the period from July &,
1901, to September 80, 1908, there
was an increase in the amount of
money in circulation of 1907. 991, 1893.
The Increase in the per capita during
this period was $7.06. Within his
time there were several occasions
when il was necessary for the treas
dry 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 additional is
sues of national bank notes, and by ia
cilltating importations from abroad Of
gold. Our imperfect currency system
mas made these proceedings necessary
and they were effective until the
monetary disturbance in the fall of
1907 immensely increased the diff
Guilty of ordinary methods of relief.
BY the middle of November the avail
able working balance in the treasury
had been reduced to approximately
$4,000, 600. Clearing house associa-
lions throughout the country had
been obliged to resort to the eXpcdi-
cnt OF issuing clearing house c%ertifi-
Gates, to be used as money. In this
emergency 1t was determined to in
vite subscriptions for $50, 600, 900 Pa
mama canal bonds, and 500. 900, 900
three per cent certificates of iudebt-
edness authorized by the act of june
10, 1898. 1t was proposed to re-dc-
post In the national banks the pro-
cecds of these issues, and to permit
their use as a basis for additional cir
culatlng notes of national banks. The
moral effect of this procedure was so
great that it was necessary to issue
only $24,631,9S0 OF the Panama ca
nal bonds, and $15.436,50 Of the GER
tificates of Indebtedness.
During the period from July /,
1901, to September 80, 1908. the bal
n G between the net ordinary re-
ceipts and the net ordinary expenses
or the government showed a surplus
in the four years 1902. 1903, 1906 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, S3,413.54. The fnan-
cial operations of the government
during this period, based upon these
differences between receipts and eX-
penditures, resulted in a net reduc-
ton of the ntcrest-bcaring deb Of
the United states from $9S7,141,040
- 0 o - q > . m -4-g - - IT. A. .
there had been two sales of Panama
canal bonds amounting in the aggre-
gate TO S54,G3l $50, and an issue of
three per cent certificates Of indebt-
edncSs under the act of Tune 10. 1908,
amounting to $15,436,500 Rounding
operations of the treasury department
under the act of March IA, 1900, re-
suited in the conversion into two per
cent consols of 1880 Of $500, 800, 400
bonds bearing higher rates of inter
est. 4 decrease Of $8,GS7,956 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 mil
Hons of receipts ovcr expenditures, a
reduction of the Understanding debt
by ninety millions, in spite of the rX-
traordinary expense of the Panama
canal, and a saving of nearly nine
IIlllIlOnS OH lnt annual llllfI tFl g
charge. This is an exceedingly salts
factory showing. especially in view Of
the fact that during this period the
nation has never hCsitated to under
take any expenditure that it regarded
as necessary. There have been no
new taxes and no increases Of taxes;
on the contrary, some taxes have been =.
taken off; there has been a reduction
OF taxation. ,
Corporations.
As regards the great corporations
engaged in interstate business, and
especially the railroads, can only re- !
peat what | have already again and
again said in my messages to the con-
gress. l believe that under the in
t~erstate clause of the constitution the
United States has complete ana para ,
mount right TO control all agencies OF
interstate commerce., n l believe
that the United States government !
alone can exercise this right with wis
dom 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 I.
business. l believe that 1t IS worse .
han folly to ATTEMPT to prohibit all :
combinations as is done by the Sfer- :
man antitrust law. because such a ,
Law can be enforced only imperfcCtly y
works almost as much hardship as =,
good. strongly advocate that in a
stead of an unwise effort to prohibit =
all combinations. there shall be sub .
stituted a 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 T;
national government fun power or >
control and supervision over thom. :
ms Of tho chief features of this con- "a
troll should be- the securing nur d..
publicity IN al matters which the pub y
lie has a right To know. and, turther- "
more, the power. not by Judicial but !.
by executive action. to prevent or nut :
a stop 10 every form of improper IA .
Noritism OF other wrOngdoing. T.
The railways OF the country should H.
De put completely under the interstate !
commerce commission and removed :,
from the domain of the anti-uus t !.
law. The power OF the commission =
should be made thoroughgoing. so =
that IL could exercise complete suuer- .
vision and control over the issue OF e.
securities. a. well as over the rails ing y
and lowering of rates. As regards :.
rates. at least. this power should be =
summary. The power to investigate
the financial operations and accounts =,
Of the railways have been one OF the !,
most valuable features in recent iegis- .
iation. Power TO make combinations :.
and traffic agreements should be- eX- .