The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-12-06
TAFT Is MUM IN
MESSAGE ON TARIFF



rency system along the lines OF the
central bank idea proposed by the
Adrich currency bill
Discussing the prejudice which
greeted the central bank idea, the
president argue ed that Il arose from an
erroneous Idea OF its powers and
distrust OF bankers by the people.
The president warmly commended
the recent adoption In the army OF
the three-year reserve clause. for en-
listed men which makes them sub
iecT 10 draft in case OF war, ate.
heir enlistment has expired, and tho
militia pay bill for the National Guard.
the volunteer bill To provide for the
quick raising OF forces In time OF war.
and the adoption OF the resident
soldlery idea for our insular posses
sions.
To the Senate and House OF Represen-
tatives:
rhe condition OF the country with
reference 10 business could hardly be
better The business of the country
Is now on a solid basis. Credits are
not unduly extended. and every phase
of the situation seems In a stale OF
pied prosperity. notwithstanding con-
Germs are running at their full capacity
and the demand for labor was never
20 constant ana growing me foreign
trade OF the country for this year Will
exceed $4,000. 000, 900. while the balance
IN our favor--that OF the excess OF eX-
ports over imports-wSl exceed 5000
100000 More than half our exports
are manufactures or partly manufac-
tured material. while our exports OF
farm products do not show the same
Increase because OF domestic consump-
ton. II 10 year OF bumper crops
the total money value OF farm products
will exceed $4,000 100000. II Is a year
when the bushel or unit price OF agrl-
cultural products has gradually fallen,
and yet the total value OF the entire
crop II greater by over $1,000, 900, 900 ,
than we have known in our history
Condition OF the Treasury.
The condition OF the treasury is very
satisfactory. The total interest bear
ing debt Is teeS.777.77O OF which $751;
BSl,SS constitute the Panama canal
loan. The noninterest- bearing debt Is
s37S.S0l.2s4s0. including 3S46. 6S1. 0ls, OF
greenbacks We have In the treasury
$3.50 100000 In gold coin as reserve
against the outstanding greenbacks;
and In addition we have a cash balance
IN the treasury rs general fund Of
1851 l52.41Sss, or an increase OF 32s,-
b7b,bb2 over the general fund last year.
Receipts and Expenditures.
For three years the expenditures OF
the government have decreased under
The influence OF an effort to economize.
This year presents an apparent excep-
ton. The estimate by the secretary of
the treasury OF the ordinary receipts,
exclusive OF postal revenues, for the
year ending June 30 1914, Indicates
that they Will amount to $4,000, 900.
The sum OF the estimates of the expen-
ditures for that same year. exclusive
or Panama canal disbursements and
postal disbursements payable from pos
! tai revenues Is t732, 0O0. 900, indicating
. dencit OF $4,000, 900.
Our Ranking and Currency system.
time when panics seem far re-
moved IL the best time for US to pre-
pare our financial system TO withstand
storm. The most crying need this
currency system The existing one is
inadequate. and everyone who has
studied the question admits II.
II Is the business OF the national gov
eminent to provide a medium. automat-
ically contracting and expanding In
volume. TO meet the needs OF trade. Our
present system lacks the Indispensable
quality OF elasticity.
After the panic OF 1907 congress real
ICED that the present system was not
adapted TO the country's needs and that
might properly be avoided by legisia-
tive provision. Accordingly q mona
tary commission was appointed which
made q report in February, 1912 The
system which they recommended In
volved q National Reserve association.
which was In certain of It's faculties
and functions. bank, and which was
given through its governing authori-
ties the power by Issuing circulating
notes for approved commercial paper. Il
by nxing discounts. and by other meth
DDS OF transfer OF currency. to expand
the supply OF the monetary medium
where II was most needed to prevent
the export or boarding of gold ana
over the supply OF money In every
part OF the country as to prevent
stringency and a panic The stock In
this association was to be distributed
States. State and National, in a mixed
proportion TO bank units and TO cap
ltal stock paid In. The control OF the
association was vested In board OF
directors to be elected by representa-
tiyes OF the banks. except certain ex
ofhcio directors. three cabinet officers
and the comptroller OF the currency. !
The president was to appoint the gov
ernor OF the association from three
persons to be selected by the directors,
while the two deputy governors were
to be elected by the board OF direc-
tors. The details OF the plan were
worked out with great care and abil-
ity. and the plan In general seems to
me to furnish the basis for proper
solution OF our present difficulties.
urgently invite the attention OF con-
gress to the proposed plan and the re-
that an earnest confederation may
suggest amendments and changes
within the general plan which will
lead TO Its adoption for the benefit Of
Now that new congress has been
elected on platform or a tarin for
revenue only rather than a protective
tariff, and Is to revise the tariff on
that basis, II Is needless for me to oc-
cupy the time Of this congress with
arguments or recomme ndations In IA
vor Of n protective tariff.
Before passing from the tariff law.
however. known as tho Payne tariff
law OF Aug. s, 1909, / desire to call .
attention to section 3s OF that act, as
sessing a special excise tax on oorpor-
ations. II contains a provision requir-
ing the levy OF an additional SO per
cent to the annual tax in cases OF neg
lect TO verify the prescribed return
or to file IL before the time required
by law. This additional charge OF so
per cent operates IN some cases az
harsh penalty for what may have been
mere inadvertence or unintentional
oversight, and the law should be so
amended as to mitigate the severity
OF the charge In such Instances Pro-
vision should also be made for the re-
fund OF additional taxes heretofore COL
lected because of much infractions In
those cases where the penalty I'M
posed has been dlsproportionate !
TO the offense as equitably to demand I
relief.
Army Reorganization.
Our small srmv now consists or
SO sos men, excluding the 900 Philip
pine scouts Leaving out OF consider
alton the Coast Artillery force. whose
position II liked In our various sea-
cosst defenses. and the present gar