144 



CONGRESS. (THE PRESIDENT'S MESSAGE.) 



tariff as to enable us to take from them those 

 products which \ve can use without harm to our 

 own industries and labor, or the use of which 

 will be of marked benefit to us. 



It is most important that we should maintain 

 the high level of our present prosperity. We have 

 now reached the point in the development of our 

 interests where we are not only able to supply 

 our own markets, but to produce a constantly 

 growing surplus for which we must find mar- 

 kets abroad. To secure these markets we can 

 utilize existing duties in any case where they 

 are no longer needed for the purpose of protec- 

 tion, or in any case where the article is not pro- 

 duced here and the duty is no longer necessary 

 for revenue, as giving us something to offer in 

 exchange for what we ask. The cordial relations 

 with other nations which are so desirable will 

 naturally be promoted by the course thus re- 

 quired by our own interests. 



The natural line of development for a policy 

 of reciprocity will be in connection with those 

 of our productions which no longer require all 

 of the support once needed to establish them 

 upon a sound basis, and with those others w T here 

 either because of natural or of economic causes 

 we are beyond the reach of successful competi- 

 tion. 



I ask the attention of the Senate to the reci- 

 procity treaties laid before it by my predecessor. 



The condition of the American merchant ma- 

 rine is such as to call for immediate remedial 

 action by the Congress. It is discreditable to us 

 as a nation that our merchant marine should be 

 utterly insignificant in comparison to that of 

 other nations which we overtop in other forms 

 of business. We should not longer submit to 

 conditions under which only a trifling portion 

 of our great commerce is carried in our own 

 ships. To remedy this state of things would 

 not merely serve to build up our shipping inter- 

 ests, but it would also result in benefit to all 

 who are interested in the permanent establish- 

 ment of a wider market for American products, 

 and would provide an auxiliary force for the 

 navy. Ships work for their own countries just 

 as railroads work for their terminal points. 

 Shipping lines, if established to the principal 

 countries with which we have dealings, would be 

 of political as well as commercial benefit. From 

 every standpoint it is unwise for the United 

 States to continue to rely upon the ships of com- 

 peting nations for the distribution of our goods. 

 It should be made advantageous to carry Amer- 

 ican goods in American-built ships. 



At present American shipping is under certain 

 great disadvantages when put in competition 

 with the shipping of foreign countries. Many 

 of the fast foreign steamships, at a speed of 14 

 knots or above, are subsidized ; and all our ships, 

 sailing-vessels and steamers alike, cargo carriers 

 of slow speed and mail-carriers of high speed, 

 have to meet the fact that the original cost of 

 building American ships is greater than is the 

 case abroad; that the wages paid American offi- 

 cers and seamen are very much higher than those 

 paid the officers and seamen of foreign compe- 

 ting countries; and that the standard of living 

 on our ships is far superior to the standard of 

 living on the ships of our commercial rivals. 



Our Government should take such action as 

 will remedy these inequalities. The American 

 merchant marine should be restored to the ocean. 



The act of March 14, 1900, intended unequivo- 

 cally to establish gold as the standard money 

 and to maintain at a parity therewith all forms 

 of money medium in use with us, has been 



shown to be timely and judicious. The price of 

 our Government bonds in the world's market, 

 when compared with the price of similar obli- 

 gations issued by other nations, is a flattering 

 tribute to our public credit. This condition it is 

 evidently desirable to maintain. 



In many respects the national banking law 

 furnishes sufficient liberty for the proper exer- 

 cise of the banking function; but there seems to 

 be need of better safeguards against the de- 

 ranging influence of commercial crises and finan- 

 cial panics. Moreover, the currency of the coun- 

 try should be made responsive to the demands 

 of our domestic trade and commerce. 



The collections from duties on imports and in- 

 ternal taxes continue to exceed the ordinary ex- 

 penditures of the Government, thanks mainly to 

 the reduced army expenditures. The utmost 

 care should be taken not to reduce the revenues 

 so that there will be any possibility of a deficit; 

 but, after providing against any such contin- 

 gency, means should be adopted which will 

 bring the revenues more nearly within the limit 

 of our actual needs. In his report to -the Con- 

 gress the Secretary -of the Treasury considers all 

 these questions at length, and I ask your atten- 

 tion to the report and recommendations. 



I call special attention to the need of strict 

 economy in expenditures. The fact that our na- 

 tional needs forbid us to be niggardly in provid- 

 ing whatever is actually necessary to our well- 

 being should make us doubly careful to husband 

 our national resources, as each of us husbands 

 his private resources, by scrupulous avoidance of 

 anything like wasteful or reckless expenditure. 

 Only by avoidance of spending money on what is 

 needless or unjustifiable can we legitimately keep 

 our income to the point required to meet our 

 needs that are genuine. 



In 1887 a measure was enacted for the regu- 

 lation of interstate railways, commonly known 

 as the interstate commerce act. The cardinal 

 provisions of that act were that railway rates 

 should be just and reasonable and that all ship- 

 pers, localities, and commodities should be ac- 

 corded equal treatment. A commission was cre- 

 ated and endowed with what were supposed to 

 be the necessary powers to execute the provisions 

 of this act. 



That law was largely an experiment. Experi- 

 ence has shown the wisdom of its purposes, but 

 has also shown, possibly that some of its re- 

 quirements are wrong, certainly that the means 

 devised for the enforcement of its provisions are 

 defective. Those who complain of the manage- 

 ment of the railways allege that established 

 rates are not maintained; that rebates and simi- 

 lar devices are habitually resorted to; that those 

 preferences are usually in favor of the large ship- 

 per; that they drive out of business the smaller 

 competitor; that while many rates are too low, 

 many others are excessive ; and that gross prefer- 

 ences are made, affecting both localities and com- 

 modities. Upon the other hand, the railways 

 assert that the law by its very terms tends to 

 produce many of thees illegal practises by de- 

 priving carriers of that right of concerted action 

 which they claim is necessary to establish and 

 maintain non-discriminating rates. 



The act should be amended. The railway is a 

 public servant. Its rates should be just to and 

 open to all shippers alike. The Government 

 should see to it that within its jurisdiction this 

 is so and should provide a speedy, inexpensive, 

 and effective remedy to that end. At the same 

 time it must not be forgotten that our railways 

 are the arteries through which the commercial 



