Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1911-10-05

It had heretofore exercised under the
decisions of the Supreme court
Il think 1t is now generally con.
ceded by those who understand the
operation OF the present law that the
regulative power OF the interstate
commerce commission Is suficiently
great to remedy generally the injus.
tees to shippers which. gave rise to
the demand for legislation. Except
the introduction of limitation as to
the power of issuing stocks and bonds,
/ do not think 1t. wise to add to the
present statutes.
Second. With respect to the trusts.
I have elsewhere given my view of
what the decision Of the Supreme
court is. The court declines to hold
that competition is impossible under
modern business conditions, but It in
sists that 1t must be given full oppor-
tunity for operation. and that any
combined effort affecting interstate
trade looking to its suppression is con-
trary to law.
Criticism has been uttered In no
measured tone against the activity Of
the department of justice In the insti-
tuition OF prosecutions and bills OF
equity under the antitrust law, on the
ground that It IL hurting business. II
is the sworn duty of the executive to
enforce the law. and as long as such
combinations exist and are known to
exist to the law ofiicers of the gov
eminent in any way they would be
lacking In their duty II they did not
prosecute them. They are under my
orders to treat the prosecution of
trusts like the bringing of any other
suits which are within the scope and
duty Of the department of Justice. and
I must decline to admit that there is
any discretion which would enable the
attorney general and his assistants to
stay the hand of the government in
respect of such violations OF law. /
do not think 1t need be long contin-
ued. because believe that the bust
ness community itself is rapidly TAX
ing In the effect of the decisions Of
the Supreme court. and that we may
expect a revolution of feeling on the
attitude Of business men toward this
step.
Il have heard the severest criticism,
from some men engaged in business.
OF the antitrust law. II Is difficult for
me to argue with them. because don't
understand how their position can be
supported In the slightest. They seem
to think that there ought to be some
measure making legal the control Of
competition and limited monopoly.
some statute enacted which shall es-
tablish line between those monopo-
lies that are reasonable and those
that are not-those that are benevo-
lent and those that the unconscion-
able. No such line Is possible, and
the Supreme Court has expressly so
decided. Mourning over condition
which 10 Inevitable is useless. and un-
til they realize that their views in this
regard must be radically changed
their complaints must fall upon deaf
ears.
Third. With respect to tariff
laws. The business Of the country to-
day rests upon the protective tariff
basis. Everyone knows this, and ev-
eryone must be aware that change
of tariffs in such way that those
businesses that are dependent upon
protection for their existence shall
lose It must injure present conditions
In all business. whether dependent
on the tariff or not. The change.
therefore. from protective tariff to
tariff for revenue only is necessar-
lily hostile to existing business. and
must lead to business depression and
at least temporary business disaster.
But there are many. and am among
those. who believe that protection in
the past has been too high. and that
1t Is possible to lower the tariff SO as
not to interfere with business, give
a living rate of protection to exist
ing enterprise and yet prevent exces-
sive prices growing out of excessive
rates. In carrying out such policy
and maintaining such an attitude. II
is essential that the interests of bust
ness should be guarded by close In
vestigation into their needs as to q
protective tariff. and this emphasizes
the Importance and vital necessity of
the maintenance Of a tariff commits
sion and OF its ascertainment Of the
facts with respect to business and
the difference between the cost OF
production here and the cost Of pro-
duction abroad before tariff changes
are made.
Fourth. and finally. we have a
very lame banking and currency sys-
tenn. The theory Of the Issue OF bank
notes. based on the deposit of govern
ment bonds by each national bank.
is that this viii increase and de-
crease according to the needs OF the
money market: that these national
banks will deposit bonds and float
their notes when money Is needed.
and will withdraw the bonds and re-
duce the circulation when the do
mand for money 10 light Such has
not been the result. and It is due to
the fact that the bonds which were
issued for the purpose Of enabling
them to be used as deposits paid only
per cent. rate which Ia about
per cent. below the regular market
rate for government bonds In this
country. and therefore prevents the
disposition and use Of the bonds for
any other purpose than the securing
Of bank notes. This gives q stiffness
to the deposit and withdrawal Of such
bonds and rigidity to the amount
of currency dependent on them that
deprives the system of the elastic
ity which Is desired
More than that. the independent
action of each bank when money
grows tight. In reaching ont for cash