138 



CONGRESS. (THE PBESIDENT'S MESSAGE.) 



Happily at the present time we are not compelled 

 to resort to loans to supply gold. It has been 

 done in the past, however, and may have to be 

 done in the future. It behooves us, therefore, to 

 provide at once the best means to meet the emer- 

 gency when it arises, and the best means are those 

 wfaieB are the most certain and economical. 

 Those now authorized have the virtue neither of 

 directness nor economy. We have already elimi- 

 nated one of the causes of our financial plight and 

 eiiiliarraswwnt during the years. 185)3, 1894, 1895, 

 and 1890. Our receipts now equal our expendi- 

 tures; deficient revenues no longer create alarm. 

 Let us remove the only remaining cause by con- 

 ferring the full and necessary power on the Secre- 

 tary of the Treasury and impose upon him the 

 duty to uphold the present gold standard and 

 preserve the coins of the two metals on a parity 

 with each other, which is the repeatedly declared 

 policy of the United States. 



In this connection I repeat my former recom- 

 mendations that a portion of the gold holdings 

 shall be placed in a trust fund from which green- 

 hacks shall be redeemed upon presentation, but 

 when once redeemed shall not thereafter be paid 

 out except for gold. 



The value of an American merchant marine to 

 the extension of our commercial trade and the 

 strengthening of our power upon the sea invites 

 the immediate action of the Congress. Our na- 

 tional development will be one-sided and unsatis- 

 factory so long as the remarkable growth of our 

 inland industries remains unaccompanied by 

 progress on the seas. There is no lack of con- 

 stitutional authority for legislation which shall 

 give to the country maritime strength commen- 

 surate with its industrial achievements and with 

 its rank among the nations of the earth. 



The past year has recorded exceptional activity 

 in our shipyards, and the promises of continual 

 prosperity in shipbuilding are abundant. Ad- 

 vanced legislation for the protection of our sea- 

 men has been enacted. Our coast trade, under 

 regulations wisely framed at the beginning of the 

 Government and since, shows results for the past 

 fiscal year unequaled in our records or those of 

 any other power. We shall fail to realize our 

 opportunities, however, if we complacently regard 

 only matters at home and blind ourselves to the 

 necessity of securing our share in the valuable 

 carrying trade of the world. 



Last year American vessels transported a 

 smaller share of our exports and imports than 

 during any former year in all our history, and 

 the measure of our dependence upon foreign ship- 

 ping was painfully manifested to our people. 

 Without any choice of our own, but from ne- 

 -~ity, the departments of the Government 

 charged with military and naval operations in 

 the Kast and West Indies had to obtain from 

 foreign flags merchant vessels essential for those 

 operations. 



The other great nations have not hesitated to 

 adopt the required means to develop their ship- 

 ping as a factor in national defense and as one 

 of the surest and speediest means of obtaining 

 for their producers a share in foreign markets. 

 Like vigilance and effort on our part can not fail 

 t<> improve our situation, which is regarded with 

 humiliation at home and with surprise abroad. 

 Kven the seeming sacrifices, which at the begin- 

 ning may be involved, will be offset later by more 

 than equivalent gains. 



The expense is as nothing compared to the ad- 

 vantage to be achieved. The re-establishment of 

 our merchant marine involves in a large measure 

 our continued industrial progress and the exten- 



sion of our commercial triumphs. I am satisfied 

 the judgment of the country favors the policy 

 of aid to our merchant marine, which will broaden 

 our commerce and markets and upbuild our sea- 

 carrying capacity for the products of agriculture 

 and manufacture; which, with the increase of 

 our navy, mean more work and wages to our 

 countrymen, as well as a safeguard to American 

 interests in every part of the world. 



Combinations of capital organized into trus.s 

 to control the conditions of trade among our citi- 

 zens, to stifle competition, limit production, and 

 determine the prices of products used and con- 

 sumed by the people, are justly provoking public 

 discussion, and should early claim the attention 

 of the Congress. 



The Industrial Commission, created by the act 

 of the Congress of June 18, 1898, has been en- 

 gaged in extended hearings upon the disputed 

 questions involved in the subject of combinations 

 in restraint of trade and competition. They have 

 not yet completed their investigation of this sub- 

 ject, and the conclusions and recommendations at 

 which they may arrive are undetermined. 



The subject is one giving rise to many divergent 

 views as to the nature and variety or cause and 

 extent of the injuries to the public which may 

 result from large combinations concentrating 

 more or less numerous enterprises and establish- 

 ments, which previously to the formation of the 

 combination were carried on separately. 



It is universally conceded that combinations 

 which engross or control the market of any par- 

 ticular kind of merchandise or commodity neces- 

 sary to the general community, by suppressing 

 natural and ordinary competition, whereby prices 

 are unduly enhanced to the general consumer, art- 

 obnoxious hot only to the common law, but also 

 to the public welfare. There must be a remed] 

 for the evils involved in such organizations. I 

 the present law can be extended more certainly 

 to control or check these monopolies or trusts, it 

 should be done without delay. Whatever power 

 the Congress possesses over this most important 

 subject should be promptly ascertained and as 

 serted. 



President Harrison, in his annual message of 

 Dec. 3, 1889, says: 



" Earnest attention should be given by Con- 

 gress to a consideration of the question how far 

 the restraint of those combinations of capit 

 commonly called ' trusts ' is matter of Feder 

 jurisdiction. When organized, as they often ai 

 to crush out all healthy competition and to me 

 nopolize the production or sale of an article of con 

 merce and general necessity, they are dangeroi; 

 conspiracies against the public good, and shouh 

 be made the subject of prohibitory and even pena 

 legislation." 



An act to protect trade and commerce agains 

 unlawful restraints and monopolies was passe 

 by Congress on the 2d of July, 1890. The prc 

 visions of this statute are comprehensive ami 

 stringent. It declares every contract or combina- 

 tion, in the form of a trust or otherwise, or con- 

 spiracy in the restraint of trade or commerce 

 among the several States or with foreign nations. 

 to be unlawful. It denominates as a criminal 

 every person who makes any such contract or 

 engages in any such combination or conspiracy. 

 and provides a punishment by fine or imprison 

 ment. It invests the several circuit courts of the 

 United States with jurisdiction to prevent and 

 restrain violations of the act, and makes it tin- 

 duty of the several United States district attor- 

 neys, under the direction of the Attorney-Gen- 

 eral, to institute proceedings in equity to prevent 



