The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1908-12-17
To the Senate and House of Representa-


tives:
The financial standing of the nation at
the present time is excellent, and the
financial management of the nations IN
terests by the government during the last
seven yea IS has shown the most satistac-
tory results. But our currency system Is
imperfect, 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 l, 1901, to
Sept So 1903. there was an increase In
the amount of money in circulation OF
500. 991 800. This increase in the per
capita during this period was SI.Oo. WITH
in this time there were several occasions
when it was neces sary for the treasury
Department TO come TO the relief or the
money market by purchases or redemp-
tions of United States bonds; by increas-
ing deposits in national banks: by stimu-
lating additional issues of national bank
notes, and BY facilitating inportations
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
10 approximately TD,otV-oOV. O'~S'A
house associations throughout the country
had been obliged to resort to the expedieni
of issuing clearing house certificates, &C
be used as money In this emergency II
Wa determined to invite subscriptions fol
$5O.oGo.O0O Panama canal bonds, anc
$100.000O00 three per cent certlhcates OF
Indebtedness authorized by the act of June
-3, 1898. 1t was proposed to re-deposil
in the national banks the proceeds OF
these issues. and to permit their use as
q basis for additional circulating notes oil
national banks The moral effect or tins
procedure was 81 great that it was neces
sai-y to issue only $2i ,631 $50 of the Pan
anna canal bonds and S15.f3G,J 800 of the
certificates of Indebtedness.
During the period from July i, 1901, tc
Sept. 80. 1908, the balance between the
net ordinary receipts and the net ordinary
expenses of the government showed a sur
plus in the four years 1907, l9O3, l9Ot
and 1901 and deficit in the years 19O4
1905. 1908. and a fractional part or thu
fiscal wear 1909. The net result was 9
surplus of 500. 2S3. 413.54. The financial
operations of the government during thu:
period. based upon these differences be
tween receipts and expenditures. resulted II
q net reduction of the interest-bearlng deb
of the United States from $685.. 14l, 04'
to SS97. 253 800, Notwithstanding tina
there Had been two sales OF Panama cana
bonds amounting in the aggregate to Sol,
631 $50, and issue of three per cen
certificates of indebtedness under the ac
of June 13. 1898. amounting to S15.436,
500. Refunding operations of the Treas
ury Department under the act of Marcl
IA. 1000. resulted in the conversion int
two per cent consols of 1890 of S2OD309,
400 bonds bearing higher rates of interest
A decrease of $S.6S7 1856 in the annual in
tereSt charge resulted from these opera
tons.
In short. during the seven years an,
three months there has beer net surplus
of nearly one hundred millions of receipt:
oyef expenditures, reduction of the in
terest-bearing debt by ninety millions. il
spite of the extraordinary expense of thu
Panama canal. and a saving of nearl,
nine millions on the anual interest charge
This is an exceedingly satisfactory show
ing. especially in view of the fact tina
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 o
taxes: on the contrary, some taxes have
been taken off i; there has been a reduction
of taxation.
Corporations.
As regards the great corporations en-
ly the railroads, | can only repeat what
have already AGAR. and again said In my
messages to the Congress. / believe tina
under the interstate clause of the Consti
tuition the Unitei States has complet,
and paramount right to control all agen
cies of interstate commerce, and / believ,
that the national government alone car
exercise this right with wisdom and effec
tiveness so as both to secure justice from
and A<. 70 he
tons which are the most important fac
tors in modern business. / believe tina
il is worse than folly to attempt to pro
hibit all combinations as is done by tn,
Sherman antitrust lew, because such
law can be enforced only imperfectly an,
unequaIly, and its enforcement works al
most as much hardship as good. / strong
ly advocate that instead of an unwis,
effort TO prohibit all combinations Their,
shall be substituted a law which shall
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 ~
securing entire publicity in all matt
which the public has right to know, an,
furthermore, the power, not by judicia
but by executive action. to prevent or pa
ism or ,ther wrongdOing.
The railways of the country should b,
put completely under the interstate com
merce commission and removed from tn,
domain of the antitrust law. The power
of the commission should be made thor
oughgoing. so that it could exercise com
ple:e supervision and control over tn,
issue Of securities as well as over the rails
ing and lowering Of rates. As regard,
rates, at least, this power should be sum
mary The power to investigate the SDan
cial operations and accounts of the rail
ways has been one of the most valuabl,
features in recent legislation Power t.
Nake combinations and traffic agreement:
should be explicitly conferred upon tn.
railroads. the permission of the commits
sion being first gained and the combina
ton or agreement being published in al
its details In the interest of the public
the representatives Of the public shouls
have complete power to see that the rail
roads do their duty by the public, and a.
matter of course this power should alsc
be exercised so as TO see that no injustice
Is d. ne to the railroads.
Telegraph and telephone companies en-
gagged in interstate business SHOULD be put
under the jurisdiction CT the interstat,
commerce commission.
1t is very earnestly to be wished thai
our peopie, through their representatives
should act in this matter 1t is hard te
say whether most damage to the countr,
at large would come from entire failur,
on the part of the public to supervise anc
control the actions of the great corpora
tons, or from the exercise of the neces
sary governmental power in way which
would do injustice and wrong to the cor
porations Both the preachers of an un
restricted individualism, and the preacher.
of an oppression which would deny to abb,
men of business the just reward of tneil
initiative and business sagacity, are advo
eating policies that would be fraught will
the gravest harm to the whole country
To permit every lawless capitalist, every
hw-defying corporation. to take any &c
ton. no matter how iniquitous, in tn,
effort to secure an improper profit ant
to build up privilege, would be ruinou:
to the republic and would mark the aban
donment of the effort 10 secure in tn,
Industrial world the spirit of democratic
fair-dealiDg On the other hand IN at