MESSAGE
READ TO
CONGRESS
No Tariff Revision
For the Present.
NIGARAGUAN TROUBLE.
Irresponsible Nations Not Pro
tected by Monroe Doctrine.
A DEFICIT OF $73,075,600.
legislation Urged Against In
junctions Without Notice.
i
Washington, Dec. 7. In his annual
.message, read to congress. President
Taft said:
To the Senate and the House of Rep
resentatives: The relations of the United States
with all foreign governments have con
tinued npon the normal basis of amity
and good understanding and are very
generally satisfactory.
Europe.
The American rights I in the fisheries
on the north Atlantic coast under the
fisheries article of the treaty of 1818
have been a cause of difference be
tween the United States and Great
Britain for nearly seventy years. The
interests Involved are of great Impor
tance to the American fishing industry,
' and the final settlement of the contro
versy by the permanent court of ar
bitration at The Hague will remove
a source of constant Irritation and com
plaint This is the first case involving
such great international questions
which has been submitted to the per
manent court of arbitration at The
Hague.
Negotiations for an International
conference to consider and reach an
arrangement providing for the preser
vation and protection of the far seals
In the north Pacific are in progress
with the governments of Great iBritain,
Japan and Russia. The attitude of
the governments interested leads me
to hope for a satisfactory settlement of
this question as the ultimate outcome
of the negotiations.
The Near East.
The quick transition of the govern
ment of the Ottoman empire from one
of retrograde tendencies to a consti
tutional government with a parlia
ment and with progressive modern
.policies of reform and public improve
ment Is one of the Important phenome
na of our times. Constitutional gov
ernment seems also to have made
further advance In Persia. These
events have turned the eyes of the
world upon the near east In that
quarter the prestige of the United
states has spread widely through the
peaceful influence of American schools,
universities and missionaries. There
Is every reason why we should obtain
greater share of the commerce of the
near east since the conditions arc
more favorable now than ever before.
Latin America.
One of the happiest events In reeent
pan-American diplomacy was the pa
dnc, independent settlement by the
-governments of Bolivia and Peru of a
(boundary difference between them,
which fot some weeks threatened to
cause war and even to entrain lm--bitterments
affecting other republics
less directly concerned.
Our Citizens Abroad.
This administration, through the de
partment of state and the foreign serv
ice, Is lending all proper support to
legitimate and beneficial American en
lerpnlsea in foreign countries, the de
gree of uch support being measured
ty the rational advantages to be ex
rpected. A citizen himself cannot by
contract or otherwise divest himself
of the right, nor can this government
escape the obligation, of his protec
tion in bis personal and property
rights when these are unjustly In
fringed is a foreign country. To avoid
-ceaseless vexations it Is proper that la
considering Whether American enter
prise should be encouraged or support-
ed, in a particular country the govern
'tDent should give full weight not only ;
to the national as opposed to the indi
vidual benefits to accrue, but also to
the fact whether or not the govern
ment of the country in question is In j
.Its administration and in its diplomacy
'faithful to the principles of modera- I
tlon, equity and Justice upon which
lone depends international credit in
-diplomacy as well as in finance.
The Monroe Doctrine. i
The pan-American policy of thin I
government has long been fixed in Its
principles and remains unchanged. 1
With the changed circumstances of the
United States and of the republics to
'the south of us, most of which have
ejreat natural resources, stable govern
ment and progressive ideals, the ap
prehension which gave rise to the
Monroe doctrine may be kl to have
nearly disappeared, ninl uelther the
doctrine as it exists uor auy ether doc
trlue of American policy should be
permitted to operate for the perpetua
tion of irresponsible government, the
escape of Just obligations or the lusldl
ous allegation of dominating ambitious
on the part of the United States.
My meeting with President Diaz and
the greeting exchanged on both Amer
ican and Mexican soil served. 1 hope,
to signalize the close and eordiul rela
tions which so well bind together this
republic and the great republic Imme
diately to the south, between which
there Is so vast a network of material
interests.
I am happy to say thnt all but one
of the cases which for so long vexed
our relations with Venezuela have
been settled within the past few
months and that, under the enlight
ened regime now directing the govern
ment of Venezuela, provision has been
made for arbitration of the remaining
cose before The Hague tribunal.
On July 30, 190!), the government of
Fanama agreed, after considerable ne
gotiation, to indemnify the relatives of
the American officers and sailors who
were brutally treated, one of them
having. Indeed, been killed by the
Panaman police this year.
This government was obliged to in
tervene diplomatically to bring about
arbitration or settlement of the claim
of the Emery company against Nica
ragua, which It had long before been
agreed should be arbitrated. A settle
ment of this troublesome case was
reached by the signature of a protocol
on Sept 18. 10O9.
Many years ago diplomatic interven
tion became necessary to the protec
tion of the Interests in the American
claim of Alsop & Co. against the
government of Chile. The govern
ment of Chile had frequently admitted
obligation in the case and bad prom
ised this government to settle it There
had been two abortive attempts to do
so through arbitral commissions, which
failed through lack of Jurisdiction.
Now, happily, as the result of the re
cent diplomatic negotiations, the gov
ernments of the United States and of
Chile, actuated by the sincere desire
to free from any strain those cordial
and friendly relations upon which both
set such store, have agreed by a proto
col to submit the controversy to defin
itive settlement by his Britannic majes
ty Edward VII.
The Nicaraguan Trouble.
Since the Washington conventions of
1007 were communicated to the gov
ernment of the United States as a con
sulting and advising party this gov
ernment has been almost continuously
called upon by one or another and In
turn by all of the five Central Amer
ican republics to exert Itself for the
maintenance of the conventions. Near
ly every complaint has been against
the Zelaya government of Nicaragua,
which has kept Central America in
constant tension or turmoil. The re
sponses made to the representations of
Central American republics as due
from the United States on account of
its relation to the Washington conven
tions have been at all times conserva
tive and have avoided, so far as possi
ble, any semblance of Interference, al
though it Is very apparent that the
considerations of geographic proximity
to the canal zone and of the very sub
stantial American Interests In Central
America give to the United States a
special position in the zone of these
republics and the Caribbean sea.
I need not rehearse here the patient
efforts of this government to promote
peace and welfare among these re
publics, efforts which are fully appre
ciated by the majority of them who
are loyal to their true interests. It
would be no less unnecessary to re
hearse here the sad tale of unspeak
able barbarities and oppression alleged
to have been committed by the Zeluyu
government. Recently two Americans
were put to death by order of Presi
dent Zelaya himself. They were offi
cers in the organized forces of a rev
olution which had continued many
weeks and was in control of about
half of the republic, and as such, ac
cording to tne modern enlightened
practice of civilized nations, they were
entitled to be dealt with us prisoners
of war.
At the date when this message is
printed this government has termi
nated diplomatic relations with the
Zelaya government for reasons made
public in a communication to the for
mer Nlcaraguan charge d'affaires and
is Intending to take such future steps
as may be found most consistent with
its dignity, its duty to American In
terests and Its moral obligations to
Central America and to civilization. It
may later be necessary for me to bring
this subject to the attention of the
congress in a special message.
In the Far East
In the far east this government pre
serves unchanged its policy of support
ing the principle of equality of oppor
tunity and scrupulous respect for the
Integrity of the Chinese empire, to
which policy are pledged the Interest
ed powers of both east and west
By the treaty of 1903 China has un
dertaken the abolition of likin with a
moderate and proportionate raising of
the customs tariff along with currency
reform. These reforms being a mani
fest advantage to foreign commerce as
well as to the Interests of China, this
government Is endeavoring to facili
tate these measures and the needful
acquiescence of the treaty powers.
When it appeared that Chinese Ilkln
revenues were to be hypothecated to
foreign bankers in connection with a
great railway project it was obvious
that the governments whose nationals
held this loan would have a certain
direct Interest In the question of the
carrying out by China of the reforms
In question. The administration deem
ed American participation to be of
great national Interest. Happily, when
-Trtir mmaammmmm
It was as a matter of broud policy ur
Kent that this opportunity should not
be lost, the Indispensable instrumental
ity presented Itself whu a group of
American Imukers of liiternatinnnl
reputation mid great resources agreed
at once to share In the loan upon pre
cisely suoh terms as this government
should approve. The chief of those
terms was that American railway ma
terial should be upon an exact equality
with that of the other nntlonnls Join
ing In the loan In the placing of or
ders for this whole railroad system.
After months of negotiation the equal
participation of Americans seems at
last assured.
In one of the Chinese-Japanese con
ventions of Sept. 1 of this year there
was a provision which cnused consid
erable public npprehension In that
upon Its face it was believed In, some
quarters to seek to establish a monop
oly of mining privileges along the
South Manchurian and Antung-Muk-den
railroads and thus to exclude
Americans from a wide field of enter
prise, to take port in which they were
by treaty with China entitled. After
a thorough examination of the conven
tions and of the several contextual
documents the secretary of state reach
ed the conclusion that no such monop
oly was intended or accomplished.
This government made Inquiry of the
imperial Chinese and Japanese gov
ernments and received from each offi
cial assurance that the provision bad
no purpose Inconsistent with the poli
cy of equality of opportunity to which
the signatories, in common with thp
United States, are pledged.
Our traditional relations with the
Japanese empire continue cordial, as
usual. The arrangement of 1908 for
a co-operative control of the coming
of laborers to the United States has
proved to work satisfactorily. The
matter of a revision . of the existing
treaty between the United States and
Japan which is terminable in 1912 Is
already receiving the study of both
countries.
The Department of State.
I earnestly recommend to the favor
able action of the congress the esti
mates submitted by the department of
state and most especially the legisla
tion suggested In the secretary of
state's letter of this date whereby it
will be possible to develop and make
permanent the reorganization of the
department upon modern lines In a
manner to make It a thoroughly ef
ficient instrument in the furtherance
of our foreign trade and of American
Interests abroad.
Under a provision of the act of Aug.
6, 1009, I have appointed three officials
to assist the officers of the government
in collecting Information necessary to
a wise administration of the tariff act
of Aug. 5, 1909. As to questions of
customs administration they are co
operating with the officials of the
treasury department and as to matters
of the needs and the exigencies of our
manufacturers and exporters with the
department of commerce and labor in
its relation to the domestic aspect of
the subject of foreign commerce.
As a consequence of section 2 of the
tariff act of Aug. 5, 1909, it becomes the
duty of the secretary of state to con
duct as diplomatic business all the
negotiations necessary to place him in
a position to advise me as to whether
or not a particular country unduly dis
criminates against the United States
in the sense of the statute referred to.
Government Expenditures and Rev
enues. Perhaps the most Important ques
tion presented to this administration
is that of economy In expenditures and
sufficiency of revenue.
The report of the secretary shows
that the ordinary expenditures for the
current fiscal year ending June 30,
1910, will exceed the estimated re
ceipts by $34.075.U'.,0. If to this deficit
are added the sum to be disbursed for
the Panama canal, amounting to $38.
000.000, and $1.(HI0.(KX) to be paid on
the public debt the delicit of ordinary
receipts and expenditures will be In
creased to a total deficit of $73.Ur,tU0.
This deficit the secretary proposes to
meet by the proceeds of bonds Issued
to pay the cost of constructing the
Panama canal. I approve this pro
posal. The Panama Canal.
The policy of paying for the con
struction of the Panama canal not
out of current revenue, but by bond
issue, was adopted in the Spooner act
of 1902, and there seems to be no good
reason for departing from the princi
ple by which a part at least of the
burden of the cost of the canal shall
fall upon our posterity, who are to
enjoy it and there is all the more rea
son for this view because the actual
cost to date of the canal, which is now
half done and which will be completed
Jan. 1, 1915, shows that the cost of
engineering and construction will be
$297,706,000 Instead of $139,705,200, as
originally estimated. In addition to
engineering and "Soustrucllon. the oth
er expenses. Including sanitation and
government and the amount paid for
the properties, the franchise and the
privilege of building the canal. In
crease the cost by $75,435,0110 to a
total of $375,201,000. The increase in
(bo cost of engineering and construc
tion is due to a substantial enlarge
ment of the plan of construction by
widening the canal 100 feet In the Cu
lebra cut and by Increasing the di
mensions of the locks, to the under
estimate of the quantity of the work
to be done nnder the original plan and
to an underestimate of the cost of la
bor and materials, both of which have
greatly enhanced In price since the
original estimate was made.
Government Economy.
In order to avoid a deficit for the
ensuing fiscal year I directed - the I
beads of departments In the prepara- ,
Son of their estimates to make them j
as low as possible consistent wltb lm- 1
peratlve governmental necessity. The
result baa been, as I am advlstd by 1
the secretary of the treaHury, that the
estimates of the expenses :tf the gov
ernment for the fiscal yaar ending
June 30, 1011-tliat Is, for the tie:;l
fiscnl year are less by $.15.(1(1:1.1)1)11
than the" total of appropilatloiis for
the current fiscal year and less by
$94,000,000 thnn tile estimates for Unit
year. So far as the secretary of I Ik
treasury is able to fyni n judgment jih
to future Income, there will he no
deficit in the year ending June 30. 11)11.
but a small surplus of $712,000.
In the present estimates the needs
of the departments and of the gov
ernment bare been cut to the quick.
For the purpose of securing Informa
tion which may enable the executive
and the legislative branches to unite
In a plan for the permanent reduction
oi the cost of governmental uduilnls
tuition the treasury department has
instituted an Investigation by one of
the most skilled expert accountants In
the Dnlted States. The object of the
Investigation Is to devise means to In
crease the average efficiency of each
employee. There Is great room for Im
provement toward this end, not only
by the reorganization of bureaus u'ml
departments and In the avoidance of
duplication, but also In the treatment
of the Individual employee.
Under the present system It constant
ly happens that two employees receive
the same salary when the work of oue
Is far more dllUcult and Important and
exacting than that of the other. Su
perior ability is not rewarded or en
couraged. Civil Penslone.
As the degree of efficiency In all the
departments Is much lessened by the re
tention of fid employees who have out
lived tbelr energy and usefulness It
is indispensable to any proper system
of economy that provision be made so
that tbelr separation from the service
shall be easy and Inevitable. It Is Im
possible to make such provision unless
there Is adopted a plan of civil pen
sions. We cannot, In view of the ad
vancing prices of living, hope to save
money by a reduction In the standard
of salaries paid. Indeed, if any change
Is made In that regard au Increase
rather than a decrease will be neces
sary, and the only means of economy
will be' in reducing the number of
employees and In obtaining a greater
average of efficiency from those re
tained In the service.
Frauds In the Collection of Customs.
I regret to refer to. the fact of the
discovery of extensive frauds in the
collection of the customs revenue at
New York city, in which a number of
the subordinate employees In the
weighing and other departments were
directly concerned and In which the
beneficiaries were the American Sugar
Refining company and others. The
frauds consisted in the payment of du
ty on underweights of sugar. The gov
ernment has recovered from the Amer
ican Sugar Refining company all that
it is shown to have been defrauded of.
The sum was received in full of the
amount due which might have .been
recovered by civil action against the
beneficiary of the fraud, but there was
an excess reservation in the contract
of settlement by which the settlement
should not Interfere with or prevent
the criminal prosecution of every one
who was found to be subject to the
same.
. Criminal prosecutions are now pro
ceeding against a number' of the gov
ernment officers. The treasury de
partment and the department of jus
tice are exerting every effort to dis
cover all the wrongdoers, including the
officers and employees of the compa
nies who may have been privy to the
fraud. It would seem to me that an
Investigation of the frauds by con
gress at present, pending the probing
by the treasury department and the
department of Justice, as proposed,
might by giving immunity and other
wise prove an embarrassment In se
curing conviction of the guilty parties.
Maximum and Minimum Clause In
-. Tariff Act.
Two features of the new tariff act
call for special reference, in order
that the maximum duty shnll becbarg
ed against the Imports from a country
it Is necessary that the executive shall
find on the part of that country not
only discriminations in its laws or the
practice under tbem against the trade
of tbe United States, but that the dis
criminations found shall be undue
that is, without good and' fair reason.
No one is seeking a tariff war or u con
dition in which the spirit of retaliation
shall be aroused
Tariff Readjustment
Tbe new tariff law enables me to ap
point a tariff board to assist me in con
nection with the department of stute In
tbe administration of the minimum und
maximum clause of the act and also to
assist officers of tbe government lo the
administration of tbe entire law. I be
lieve that the work of this board will
be of prime utility and importance
whenever congress shall deem it wise
again to readjust the customs duties.
If the facts secured by the tariff board
are of such a character as to show gen
erally that the rates of duties Imposed
by the present tariff law are excessive
under the principles of protection at
described in the platform of tbe suc
cessful party at the late election I
shall not hesitate to Invite the atten- '
tlon of congress to this fact and to the
necessity for action predicated there
on. Nothing, however, baits business
and Interferes with the course of pros
perlty so much as the threatened revi
sion of the tariff, and until tbe facte
are at hand, after careful and deliber
ate Investigation, upon which sticb re
vision can properly be undertaken. It
seems to me unwise to attempt It.
War Department. ;
In the Interest of Immediate econ
omy I have required a ' reduction In
the estimates of tbe war department
for' the i-ominir fiscal year which
brings tbe total estimates down to an
amount fort'7-flve millions less than
the corresponding estimates for last
year. This could be accomplished only'
by cutting off new projects and sus
pending for tbe period of oue year all
progress tu military matters. l'or the
same reason I have directed that the
army bIiiiII not be recruited up to Its
present authorized strength. These
measures can hardly be more than
temporary, for I am sure that tbe In
terests of the military establishment
are seriously In need of careful con
sideration by congress.
The secretnry of war calls attention
to a number of needed chunges In the
army, In all of which I concur, but the
point upon which I place most em
phasis Is the need for an elimination
bill providing a method by wblcb the
merits of officers shall have some ef
fect upon their advancement and by
which the advancement of nil may he
accelerated by tbe effective diminution
of a definite proportion of tbe least
efficient
The military and naval Join, board
have unanimously agreed that It would
be unwise to make tbe large expendi
tures which at one time were contem
plated In the establishment of a naval
base and station In the Philippine Is
lands and have expressed their judg
ment, in . wblcb I fully concur, in fa
vor of making an extensive naval base
at Pearl Harbor, near Honolulu, and
not in the Philippines.
The Navy.
The return of tbe battleship fleet
from Its voyage around the world In
more efficient condition than when It
started was a noteworthy event of In
terest alike to our citizens and tbe
naval authorities of the world. Tbe
marked success of the ships in steam
ing around tbe world in all weathers
on schedule time has Increased respect
for our navy and has added to our na
tional prestige.
It is a regrettable fact that tbe
higher officers are old for the respon
sibilities of the modern navy, and tbe
admirals do not arrive at flag rank
young enough to obtain adequate train
ing in tbelr duties as flag officers.
Owing to the necessity for economy
in expenditures, I have directed tbe
curtailment of recommendations for
naval appropriations so that they are
thirty-eight millions less than the cor
responding estimates of last year, and
tbe request for new naval construction
Is limited to two first class battleships
and one repair vessel. ,
The secretary of the navy has Inau
gurated a tentative plan involving cer
tain changes In the organization of tbe
navy department including tbe navy
yards, all of which have been found
by tbe attorney general to be In ac
cordance with law. I have approved
the execution of tbe plan proposed be
cause of the greater efficiency and
economy it promises.
Department of Justice Expedition In
Legal Procedure.
The deplorable delays In tbe admin
istration of civil and criminal law have
received the attention of committees of
the American Bar association and of
many state bar associations as well as
tbe considered thought of judges and
jurists. In my Judgment, a change In
public procedure, wltb a view to re
ducing Its expense to private litigants
in civil cases and facilitating the dis
patch of business and Dual derision In
both civil and criminal cases, consti
tutes the givatest ueed In our Ameri
can institutions. I do not doubt for
one moment that much of the lawless
violence and cruelty exhibited In lynch
Ings are directly due to the uncertain
ties and Injustice growing out of tbe
delays In trials. Judgments and the exe
cutions thereof by our courts.
I therefore recommend legislation
providing for the appointment by the
president of a commission with author
ity to examine the law and equity
procedure of the federal courts' of first
Instance, the law of appeals from
those courts to the courts of appeals
and to the supreme court and the costs
Imposed In such procedure upon the
private litigants and upon the public
treasury and make recommendation
with n view to simplifying and ex
pediting the procedure as far as pos
sible and making It as Inexpensive as
may be to tbe litigant of little means.
The platform of the successful party
in the last election contained the fol
lowing: Injunctions Without Notice.
"We believe that the rules of proce
dure in the federal courts with respect
to the issuance of tbe writ of injunc
tlon should be more accurately defined
by statute and that no Injunction or
temporary restraining order should be
Issued without notice. " except where
irreparable injury would result from
delay. In which case a speedy bearing
thereafter should be granted."
I recommend that In compliance with
the promise thus made appropriate leg
islation be adopted. Moreover, every
such injunction or restraining order
Issued without previous notice and op
portunity by the defendaut to be beard
should by force of tbe statute expire
and be of no effect after seven days
from tbe Issuance thereof or witbln
any time less than that period which
the court may tlx unless within such
seven days or such less period tbe In
junction or order is extended or re
newed after previous notice and op
portunity to be beard.
Anti-trust and Interstate Commerce
Laws.
The jurisdiction of the general gov
ernment over interstate commerce has
led to the passage of tbe so called
"Sherman anti-trust law" and tbe "In
terstate commerce law'' and its
amendments. The developments in tbe
operation of those laws call for a dis
cussion and some suggestions as to
amendments. , These I prefer to em
body In a special message.
Pottoffice Department 8econd Claee
Mail Matter.
The deficit every year In the post-'
office department largely caused by J
the low rate of postage of 1 cent a
pound charged on second class mall
matter, which Includes not only news
papers, but magazines and miscella
neous periodicals. Tbe actual loss grow
lug out of tbe transmission of till
second class mall matter at I cent n
pound amounts to about $(l3,iKHi.(iuu it
year. Tbe average cost of tbe trans
HT HUM!-.
)ie than I
i of 19(17 I
matler 1
of llo 1
portation of this matter Is more than
9 cents a pound. The statistics
show that second class mall
constituted 63.91 per cent
weight of all tbe mail and yielded
only 5.19 per cent of tbe revenue.
The figures given are startling ami
show the payment by the government
of an enormous subsidy to tbe news
papers, magazines und periodicals, v
great saving might be made, niiioiini
ing to much more than half of the loss,
by Imposing upon magazines hud peri
odicals a higher rate of postage.
Postal Savings Banks.
I believe postal savings bunks to lm
necessary In order to offer a procr
Inducement to thrift and saving to u
great many people of small means who
do not now have banking facilities and
to whom such a system would offer m
opportunity' for the accumulation of
capital. They will furnish a satisfactory
substitute, based on sound principle
and actual successful trial In nearly
all the countries of tbe world, for thtt
system of government guaranty of
deposits now being adopted in several
western states which, with deference
to those who advocate It seems to me
to huve In It the seeds of demoraliza
tion to conservative banking and cer
tain financial disaster.
Ship Subsidy.
Following the course of my distin
guished predecessor, I earnestly rec
ommend to congress the consideration
and passage of a ship subsidy bill.
Interior Department New Mexico and
Arizona.
Tbe successful party In the last elec
tion in Its national platform declared
in favor of tbe admission as separate
states of New Mexico and Arizona
and 1 recommend that legislation ap
propriate to this end be adopted.
Alaska.
With respect to tbe territory of Alas
ka, I recommend legislation wblcb
shall provide for the appointment by
tbe president of a governor and also
of an executive council, tbe members
of which shall during their term of
office reside in the territory and which
shall have legislative powers sufficient
to enable it to give to tbe territory lo
cal laws adapted to Its present growth.
I strongly deprecate legislation looking
to the election of a territorial legisla
ture In that vast district
Conservation of Natural Resources.
In several oepartments there is pre
sented the necessity for legislation
looking to the further conservation of
our national resources, and the sub
ject is one of such Importance as to
require a more detailed and extended
discussion than can be entered upon
In this communication. For that re;
son I shall take an early opportunit
to send a special message to congress,
The White 8lave Trade.
There Is urgent necessity for addi
tional legislation and greater executive
activity to suppress tbe recruiting of
tbe ranks of prostitutes from the
streams of immigration into this coun
try an evil which, for want of a bet
ter name, bas been called "the white
slave trade."
Bureau of Health, '
There seems to be no reason why n'l
the bureaus and offices in tbe general
government which have to do wltb
tbe public health or subjects, akl
thereto should not be united In a bt
reau to be called tbe "bureau of pu
lie health."
Political Contributions.
I urgently recommend to congress
that a law be passed requiring tlnii
candidates in elections of members
tbe bouse of representatives and con
mittees In charge of their candidm
and campaign file in a proper office
tbe United States government a still
meut of tbe contributions received an
of the expenditures incurred in the
campaign for such elections and that
similar legislation be enacted In re
spect to all otber elections which are
constitutionally within tbe control of
congress,
Conclusion. t;
Speaking generally, the country Is
in a high state of prosperity. There Is
every reason to believe that we are on
the eve of a substantial business" es
panslon, and we have just garnered a
harvest unexampled in the market val
ue of our agricultural products. Tbe
high prices which such products bring
mean great prosperity for the farming
community: but on tbe otber band,
they mean a very considerably increas
ed burden upon those classes In the
community whose yearly compensation,
does not expand with the improvement
in business and tbe general prosperity.
Various reasons are given for the blgt
prices. Tbe proportionate Increase la
the output of gold, which today is tbe
chief medium of exchange and is in
some respects a measure of value, fur
nisbes a substantial explanation of at
least part of the Increase In prices.
The Increase in population and the
more expensive mode of living of the
people, which have not been accom
panied by a proportionate Increase la
acreage production, may furnish a fur
ther reason. It is well to note that tbe
increase In the cost of living is not
confined to this country, but prevails
the world over, and that those who
would charge Increases in prices to tbe
existing protective tariff must meet
the fact that the rise In prices baa
taken place almost wholly lo those
products of the factory and farm In
respect to which there bas been either
no Increase in the tariff or In man
instances a very considerable reduction.
K
(SJ