The Washington times., 1908-12-12
Question Is How Much Aid
Would Nation Get in FL
nancing improvements.
LAST YEARS PANIC
HURT ALL SCHEMES
PeSsimiStS Declare No Need of
Canals When Railroads Take
Care of Freight.

Public sentiment on the waterways
movement has been aroused The coGn-
try is ready to stand by any reasonable
scheme for improving facilities for COM
-munication by water. 1t is for Congress-
TO decide whether the matter shall go
FORWARD or shall be dropped.
This Is the opinion Of the leaders IN
the movement. They arc calculating
whether the country is in earnest about
being willing 70 spend its money for
fEuch work And that brings UP. as the
'deternnini8g factor. the question whether
The States are ready TO take up their
share Of the burden.
Getting the Federal Treasury TO bear
such loads has come to be regarded in
this country as close akin 20 enIisting
Providence. Nobody realizes that money
spent by the National Government
comes out Of his pocket on the other
hand the State administrations are
-chary II be!1g drawn into projects
which mean increase of taxes and rev.
enue. II becomes then a large issue
Are the whole ideals Of the country 80
be reformed? Would the men who want
a half billion from the National Treas
ury be willing to support the PROPOSE
tion Of taking from their State treas
'Ories their pro rata OF the amount
Bond Issues Disliked.
Issuance of bonds in time or peace
has not been popular in this country.
Yet apparently 1t is impossible TO take
Up an immense series Of waterway
projects unless payment is deferred. The
national revenues are still tremendous.
hut in latter years they have been spent
Sn large measure in maintaining a great
navy and an army which II not great
Sc at least vastly larger and moro costly
than before the Spanish war. Does the
country prefer to maintain war estao-
Iishment in time OF peace and to COM
pete in preparedness with the nations
of Europe, OF is it TO turn distinctly TO
the arts Of peace and 10 look upon the
problem OF internal Improvements more
seriously?
These are questions which have been
on the tongues of public men since the
internal improvements movement took
serious form. They want 20 know
whether the States are willing to sup
pIement the credit Of the National Gov
ernment with their own, in order TO
carry forward a scheme Of waterway
Improvement which, as Representative
Davidson Of Wisconsin showed. al
ready contemplates a billion-dollar IN
vestment, and is liable to indefinite ex-
spansion.
Serious Consideration.
A year ago the waterways conven-
4ion in Washington was marked by
great enthusiasm and none too much
intelligent thought. This year Il has
been the reverse. There has been less
enthusiasm and more serious consid-
Grafton OF the real problems. There Is
yet little difference of opinion about the
Edesirability OF water transportation,
though a good many persons havs
raised this question, pointing out that
rail transportation IS so much cheaper
here than abroad that it may be
doubted whether water freightage
would represent anything like the pro
portion OF economy that il produces In
Europe. If American railroads can
haul goods cheaper than European, be
cause the hauls are longer and the rail-
roads adapted 70 the business, II still
may be added that American river
routes are likewise longer and more
available than those Of Europe The
German rivers continue the desDaIr OF
persons who would urge tnat inland
water transportation cannot cOrnpete
with railroads The Rhine carries q
tremendous and growing tonnage: vet
Ile mississippi presents vastly greater
Rhine, and on the whole is unite as
wen situated TO become a Urinary
artery OF trade for this nation. as is the
Ssnlhe Tor Germany. Every mile of the
-dlsslsslDni Is in American ferrftor,,
WHl4e Ihe lower reaches OF the Rhine
are not IN Germany. The great Froe
OorJmund canal has been bui1t nv
russia to assure a German ocean
liiIl, PtIrl ,lal J.. Ior the commerce % the
5I-Ss,llhe' if need for one should Use
u - mere is no need for such a Thin, 81
this country. INNS al
Panic Hurt Schemes.
Just at the time when the propaganda
1or internal waterway Improvement wa G
At lIs nelght; just when James J. Hill.
ana otner great practical economists.
were cldmoring for river Improvement
10 supplement the railroad facilities
just then the panic came and the rail |
roads were suddenly found to he able |
10 carry vastly more than the tonnage
onered to them. II was unfortunate
Tor the waterways movement. II the I
freight congestion Of two years ago had
eJll.-ll,e- uoWh 70 the present, this |
51s-JIII- S,sc SesSlon SION or Congress would /
demand Tor waterway legislation. The
80, CoIuiheEclal llfe OF the country 1
would nave depended on it, But. as /
matters stand, the railroads arc not /
only able To do the business but tbeyy
have a surplus Of carrying capacity. 1t /
1s small wonder that the enthusiasm 4
1or waterway Improvement should /
somewhat have slackenei
ne advocates OF waterway eyna ns{o,l /
point out, In answer 10 ali This that
inevitably there viii be a return of fLe
old conditions, and that when normal I
conditions are restored the railroads
viii be as inadequate as before to nam /
die the nations freight. They insist 1
that now is the time 10 begin prepara /
ton for that era. They want the Gov /
ernmcnt 10 step in and make timely |
arrangements TO meet these demands
Would States Help?
Underneath all these questions is that
OF the method Of taxation Much of the 4
State revenue is raised by direct taxa I,
tion. The national resources are com
monty found in indirect levies. There
is violent prejudice against direct I
taxation. II the States are 70 be called /
upon to bear, say, half the cost Of a |
great waterways program, viii they do |
st2
That is the question which a fewI
years ago confronted Germany When /
the project OF the great east-and-wcst 4
canal through the middle Of the empire /
frr u a.