The Interstate Commerce Law.—The importance of railroad transportation led to the enactment, in 1887, of the "Interstate Commerce Law," controlling this form of commerce. The law became necessary because of certain abuses which had arisen. In many instances the railroads gave lower freight rates to certain persons than to others doing the same kind of business; again, the merchants or manufacturers of certain cities were favored by more liberal rates than could be obtained by those who were engaged in the same industries in other cities. As a result, the business of many persons and places suffered injury, while the business of their rivals prospered through the advantages given to them by the railroads.
In consequence of these and other evils, various laws, beginning with that of 1887, have been passed to control not only railroad and steamboat lines, but also telegraph, telephone, express, and sleeping-car companies in so far as they are engaged in interstate and foreign commerce.
Some provisions of these laws will now be stated, (1) Charges must be just and reasonable. The Interstate Commerce Commission has power to decide what is reasonable, and to fix rates, after an investigation. (2) It is unlawful to give one person or corporation a better rate than another for the same service. This is called "discrimination." Passes cannot be granted, except to employees. (3) All rates must be posted where they can be consulted by any person. (4) All companies engaged in interstate commerce must open their books to inspection by the commission and must make reports that they require. (5) If any person objects to a decision of the commission, he may appeal to the Commerce Court, which has been created to consider such cases.
The Control of Trusts.—Among the abuses arising in connection with interstate commerce are those which result when persons enter into agreements or combinations to prevent free competition; for under these circumstances prices are raised, or certain persons are favored in trade. In 1890, Congress passed a law prohibiting such combinations "in restraint of trade or commerce among the several States or with foreign nations." This is known as the Sherman Anti-trust Law.-Now, a trust is simply a large corporation which has absorbed or killed off, more or less completely, other establishments engaged in the same industry. The trust may or may not have a monopoly, that is, complete control in that line of business; and it may or may not be engaged in interstate commerce. An agreement among certain, railroad companies to establish and maintain freight rates was declared to be in violation of the law of 1890. Also, a combination, or "conspiracy," among railroad employees to stop the running of trains was declared illegal.
The "trust problem," which is so prominent in current political discussion, is the question of preventing the evils of combination in industry. These evils become evident when excessive prices are charged by persons who control certain lines of business; that is, when free competition is prevented in the production, transportation, or sale of commodities. If the business conducted by a trust lies entirely within the limits of a single State's boundaries, then it must be regulated by State law.
III. THE MONEY of THE UNITED STATES.
Our National Currency.—Another of the most important powers of Congress is that granted in the following clause:—
Article I, Section 8, Clause 5. To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures.
In civilized countries it is the practice of the government to furnish the people a "circulating medium" for use in trade and commerce. Two kinds of money are in use in the United States: (1) coin or specie; and (2) paper money. The total amount of money in circulation in the United States on November 1, 1910, was $3,124,679,057 or $35.01 per capita for the whole population. We shall first consider the coins of the nation.
How Coins Are Made.—The coinage of money takes place at the mints, which are located at Philadelphia, Denver, New Orleans, and San Francisco. Gold and silver come to the mints in the form of bricks, or rough bars, to which the term bullion is applied. Alloy must be added to the pure metal for the purpose of rendering it of sufficient hardness to withstand wear. In our gold and silver coins one-tenth of the weight is an alloy composed of copper and nickel. A quantity of the bullion of the required purity is first melted and then cast into ingots, or long bars. Each bar is next run between heavy rollers until it takes the form of a thin strip. From the strip are punched round pieces, called "blanks," of the size and thickness of the coin that is being made. In the next process the blank is weighed on a delicate balance; when found to be of the correct weight, the coin is placed in a powerful press, and from this it comes with its edge raised above the face and its edge milled. In a similar press the designs are stamped upon the faces of the coin.