St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-01-11
AYICIOuS SYSTEM.

The policy Of subsidies in the devel-
opment of commerce is the fayurite one
with those who are now directing
affairs at Washington. One of the SEN
atolS from Maine has formulated the
first phase of the policy in a bill to pro-
mote Shipbuilding by requiring the
postal department to contract with
American vessels for the ocean mails,
for terms of from five to ten years.
There are -stipulatiOns as to size, con-
struction, and incidental matters look
ing to the conversion of the ships to
use as cruisers or transports in case of
war. A bill of similar character has
been introduced in the house by a
Maine representative. They provide
that these vessels shall be paid from
from s. to $40 for each mile of the out
ward trip. This is estimated, at the
probable figures to be paid, at $1,000
for each trip from New York to
Liverpool. A bill introduced by the
senator awards bounty of third of a
mill ton per mile for the tonnage of
American ships in the foreign trade.
For the vessels proposed this would
take some $4,000 for each voyage from
New York to Southampton. To amount
to much i'll developing the proposed
merchant marine dozen millions a
year will be moderate expenditure.
1t must be kept up permanently. The
cost would not be a very grave objection
If the policy were sound and would con-
tribute to the restoration of the ocean
mercantile marine, but the history of
the subsidy business in this country is
not encouraging. 1t is honeycombed
with corruption and odorous with scan
dial. The Pacific Mail matter is still
fresh in the recollection. The Pa
cific railroad scheme has the re-
deeming feature that the govern
| ment subsidies expedited the con-
struction of works that opened up TO
settlement vast domains and subserved
very material uses; but they were I'M
scrupulouS raids upon the national
treasury, with small regard to obliga-
tfOns assumed toward the government
For example, the credit mobilier iniq-
uity may be remembered as a natural
phase of this system. Its smirch was
all about the national halls. In addi-
ton to dividing the plumber largely
| with the weak and greedy in station.
| they ignored the claims of the govern
ment. The original guarantee bonds is
| sued to that line were in round figures
$50, 100000. The government has paid
| in interest on these bonds $50, 4S6, 55571.
All the road has returned is s., 1000, 900
in cash and to run up bill of S31 .O00.-
600 for transportation of troops and
stores, always at the top prices.
Here is over S1OO,000,OO0 that the
government has paid out in cash.
without any Offset and no probability
that the roads will ever meet the bonds
or any portion of them. These great
corporations have their attorneys and
representatives in both houses of con-
| gress, and are able to maintain the
most powerful lobby. The country
would be fortunate if it could avoid
| further outlay by abandoning all claims.
1t Is fair Illustration of the tendencies
of the subsidy policy in this country.
1t is demoraliZing to all who become its
beneficiaries, and they are not always
named in the contracts. The natural
result is to build up monopolies and
| defeat the wholesome and beneficial
| operation of commercial laws and he
! competitions. of traffic. There are bet
! fer methods to promote the desired re-
suits than by subsidies.