Grand Forks daily herald., 1914-12-31
THURSDAY, DECEMBER 81. 1914.
SHIP PURCHASES.

SHIP PURCHASES.
Congress is taking up seriously the
matter Of government purchase OF
ships, and the senate committee hav-
ing the bill in charge has made very
emphatic report in favor Of il. The
measure is known to have the hearty
approval of the president, and it is
known as an administration bill. In
his address to congress at the OPEN
ing of the session this was one of the
things urgently advocated. and the
bill will undoubtedly have all the sup
port that the administration can give
it. The present prospects arc In favor
Of its passage by a substantial ma
jority.
The country has not appeared to
have very clear ideas as to whether
this is wise legislation or not. The
desirability of a strong American
merchant marine is admitted. and the
fact Is also admitted that our mer-
chant ships have practically disap-
peared from the seas. But just what
are the causes of this condition. and
what the remedy, are matters con-
cerning which, after years Of debate.
most people have but very hazy
ideas.
Until the war broke out there was
q general lack of interest In the sub
ject. for, while there were practically
10 American merchant vessels, there
were plenty Of other vessels ready to
carry American cargoes, and the ship
ments of this country were handled
as expeditiously and as cheaply as
were those of other countries. The
war brought about different condt-
tions. and the ships which had been
carrying our freight were needed for
other purposes. Transportation was
at a premium. and it appeared that
something must be done. Hence the
proposal that the government itself
buy ships and operate them.
Support for this measure comes
from two sources. chiefly. 1t Is hailed
with enthusiasm by those who well
come anything in the nature Of pub
lie ownership, no matter what the
conditions. These people believe that
II the government once launches out
permanently in the transportation
business, and that its control Of that
business will increase until all the
water carrying trade in which this
country Is interested will be under
the direct control of the federal gov
ernment. The next logical step, and
the one which they expect will soon
follow. would be the government ac-
QUESTION of the railroads. and pri-
vate capital would be banished from
the entire carrying trade Of the coun.
try.
President Wilson does not recon-.
mend the measure on these grounds
He would treat the present as an en-
ergency case, and deal with it ac.
cordingly. AS outlined in his annual
address, his hope is that the propos.
ed government owned ships will fur.
nish to the country the transporta.
tion, laying the foundation for great
and profitable private business. He
believes that when the present EN-.
ergency is over. these ships should
he used for transportation purposes
into quarters of the world where we
desire to build up trade, and where
there is trade to be built up, but
which do not offer sufficiently attrac,
mi, ;,<
at present. When these lines Of
trade are laid out, and the field has
been made sufficiently attractive tt
private ship owners, he thinks thai
the government should then with
draw and leave the business to pri
vate concerns. That is the substance
Of his recommendation.
1t will be seen that on this basi.
government owned ships are not at al
likely to become source Of profit IL
the country. considered merely or
the basis Of receipts and disburse
lnents. On the contrary, while tn,
trade that is hoped for Is being bull
mp, and while the government is Ell
gagged in its work OF pioneering. th'
enterprise will recult in constan
deficit, which must be made up from
some other source In entering upol
this field, therefore. the government
will be assuming a. permanent liabilit,
rather than creating an asset which
can be realized on.
While this feature of the case i,
one which ought to prompt careful
investigation, it is not in itself suffi
cient to condemn the proposition. Al
enterprise which constantly costs tn,
government money may be immensel!
valuable to the country, and be wei
worth the price. Whether or not ti1i.
Is such an enterprise is one of thu
things for congress to determine.
AMERICAN BUSINESS SITUATION
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