The Washington herald., 1907-01-25
FRIDAY. JANUARY .. 1907
The Significance of ship Subsidy.


President Roosevelt has committed him
self formally 10 the moderate ship-sub-
sidy bill agreed upon by the House Com
mlttee on Merchant Marine. Speaker Can
non has signfed his approval Of il. and,
although there viii be strong opposition
TO it in both Houses. there is little doubt
that the measure will become law, thus
embarking the country on a new venture
in state-aided industry.
It is well to consider the significance Of
this novel departure and the nature Of
the influences which have led 10 such an
important extension of the protective
principle at d time when there appears to
be IA widespread belief that the protection
of industry by means of tariff duties has
reached the limit of its usefulness.
The President has been moved by two
considerations to support the subsidy bill
namely. the Importance for naval pur-
poses Of an American merchant marine.
and the desirability of extending our for
eign commerce and carrying it in Ameri-
can bottoms. He sees no way to promote
these quite proper aims Of a progressive
national policy but the appropriation Of
money from the public Treasury to help
pay the expenses of American built and
owned steamship lines. But there are
other methods of gaining the same ends
Our foreign commerce would be greatly
encouraged by the removal of obstructive
tariffs. and there would be hundreds Of
American steamers engaged in the carry
ing trade if only American citizens were
permitted 10 buy foreign built vessels and
fly the Stars and Stripes over them. What
objection to this alternative method is
there, save only that it flies in the face,
not of sound economic theory and actual
commercial experience, but Of the stand
pat doctrine of protection to American in
dustry?
We forbid the flying Of an American
flag over any but hCme-buiit craft; We
impose heavy and almost prohibitive tar
ifs upon the materials used in ship con-
structiou we make it possible for the
steel trust 10 sell abroad at lower prices
than at home and to exact monopoly
prices from home consumers; we restrict
commerce by tariffs intended to prevent
foreigners from selling 10 us; we refuse
To admit to our markets even the COM
modites our colonial subjects have to sell,
and then We propose to subsidize lines Of
communication TO the colonies and TO the
countries against which we have raised
the almost impossible barriers of the
Dingley tariff. And Secretary Root tells
vs, with creditabIe frankness. that we do
all this because the protective tariff
makes it impossible to do otherwise,
That is the nub of the whole matter
The same influences that have maintained
tho high tariff policy are behind the ship
subsidy scheme; the same selfish interests
are promoting it, and the saddest part Of
it is that patriotic and high-minded men
are convinced that its promotion is in the
public interest and viii rebound to ma
tional glory. We are tangled up in the
meshes of the protective policy, they say.
and, instead of getting out, we are going
10 tangle ourselves up still more. And
so we find a President who would limit
swollen fortunes committed to a project
which, if IL accomplishes anything. will
develop more swollen fortunes. advocat-
ing state aid to steamship lines as a part
of our commercial system. and using his
great influence 10 bring about an artif-
cial policy of government exploitation of
foreign commerce, in order TO avert the
dire necessity Of revising the tariff i'm con-
fOrmity with the natural laws IF trade.
Why not state aid 20 our overburdened
railroad systems, which have broken
down under the stress Of our internal
commerce and have proven themselves
unequal TO the titanic task of supplying
the wants Of our own people? Does not
the logical development OF state aid point
in some such direction as that2