Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-09-29
Tendency to State Socialism.

Mr.. Taft defended the Department. of
Justice against adverse criticism for the
activity displayed by it in the prosecution
of trusts, assuming all responsibility him.
self, and referred to the tendency of some
foreign governments to encourage trusts
and to take part themselves in the man.
agement of trusts.
such a system with U.S. he said, lis
absolutely impossible. and it might as
well be understood. The countries to
which reference is made are veering to-
ward state soc alism. This. indeed. If
competition is to disappear, is the loslcai
escape from the evil of private monop-
olies. because If private companies are to
be allowed to manage everything and nX
prices, then there is every reason why
the control thus exercised by them should
be transferred from them to the govern
ment and this is state socialism.
Would Reduce Tariff Rates.
With respect to tariff laws the Presi-
dent said:
1.-The business of the country today
rests upon the protective tariff basis.
Every one knows this, and every one
must be aware that change of tariff IN
such a way that those businesses that
existence shall lose it must injure present
conditions in all business. whether de-
pendent on the tariff or not. The change.
therefore. from protective tariff to a
tariff for revenue only is necessarily
hostile to existing business and must lead
TO business depression and at least tenn
porary business disaster. But there are
many and | am among those who believe
that protection in the past has been too
high. and that it is possible to lower the
tariff so as not to interfere with Dusl-
ness give a living rate OF protection TO
existing enterprises and yet prevent eX-
cessive prices growing out of excessive
rates.
Need for Tariff Commission.
1T is essential that the interests of
business should be guarded by close in
vestigation into their needs as to a pro-
tective tariff, and this emphasizes the
Importance and vital necessity OF the
maintenance of tariff commission and
of its ascertainment of the facts with re-
spect to business, and the difference be-
tween the cost of production here and the
cost of production abroad before tariff
changes are made.
In this connection he defended the
tariff board and reiterated his determine
ton not to approve of any tariff lesisla-
ton until the information obtained by
the board was obta1nable.
Favors Aldrich Currency Plan.
Taking up the monetary system he
said, after comment on the inelasticity of
the present system:
There ought to be some central author
ity that could take over the quick assets
of the banks in the form of business pa
per. and issue bank notes on the faith of
if TO meet the exigency arising at any
time in a demand for money. If vested in
one person or set of persons. the business
can be INTEL. gently done, panics avoided
and money sufficient for the purpose of
business constantly kept on hand
'-The present proposition of the none
tary commission. which | believe Will be
recommended to Cor gress, is that this
authority shall be provided by combi-
nation of all the banks of the country. re-
serving to the smaller banks a power of
selection greater than the ratio between
their capital and the capital of the larg-
err banks. in which board or agency the
government shall have a representative,