The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-05
A Government Merchant Marine.

| the acquisition of merchant vessels by
Government purchase that an American
merchant marine may never be created
/ IN any other way. Through taxation
! the Government can command the CAPT
/ tai which it's owners seem reluctant To
/ provide for the establishment Of a ship
| ping industry, and through taxation
/ the Government can stand excessive
costs of operation which private enter
/ prise. dependent on profits, could not
endure.
/ The emergency transfer Of American
/ owned vessels ascd in the ocean
carrying trade from foreign to Ameri-
can registry Is gradually taking place
/ as result of the enabling act whlcN
/ Congress has passed. There is other.
wise no doubt of tho indlspoSiiion Of
| private capital to recognize any last-
Ing opportunity furnished by the war
| for the formation Of an American mer.
chant fleet. The Government ship pur.
chase bin should accomplish this oh.
icct but there is no reason why It
| should become law in any environment
Of misunderstanding.
The measure which enjoys President
| WILSON'S support cmanated from the
| excited conclusion hastily arrived ut I'm
| the first fortnight of the situation pre-
clpltated by the European war. Ship
| ping. which Is now moving. was every.
where tied up and the embargo laid
I t,,tA
widespread demand for vessels in
which to move goods into the country
/ and out of IL. The situation adver-
/ tlsed the long range incentives for
| revival of the American shipping In
! dustry. but even then Congress did NOT
see it's way clear to encourage the de-.
vclopment of merchant marine pri.
! vately owned and operated by indicat.
! ing the change in political attitudes
which alone would make such n de-
| velopment possible.
| 1t is not true that the expansion of
American foreign trade and the rcali.
zarion of commercial opportunity de-
/ ponds on the provision of merchant yes
/ sells under American registry. 1t de-
/ ponds chiefly on American ability 20
/ supply the capital and credits with
which Ia make trade in foreign mar
/ kets Assuming continued reliance
! on foreign bottoms for American cV-
/ ports and imports, ii Is quit" certain
! that the country's external commerce
will grow after the conclusion Of the
( war as It grew before it.
At the same time an American mer-
chant marine would offer many al
vantagcs for foreign trade expansion
while II would add an industry to the
enterprises which make for the pros
perity of an increasing population. Nor
Is It true that private capital and pri-
waite initiative are inadequate to the
provision Of an American merchant
fleet The country j. not lacking in
ambition or resources sufficient for any
promising economic undertaking, hut
the trouble H. that from the standpoint
furnishing permanent American mcr-
chant fleet is not promising.
Without many substantial changes in
existing laws and In the attitude OF
1 politics toward that sacroSanct Ameri-
ran wage scale, private capital could
not on account of the original costs
and the costs of operation. to say moth
ing of the superior attractions OF other
investments, compete probably with
the foreign merchant fleets which do
the bulk of tine worlds ocean trade II
Is this situation on which the persist
ent demand for ship subsidy has been
based. but ship subsidy has never
seemed likely to be- voted by Congress.
The only alternative OF n Government
merchant marine seems to present
the only means OF exploiting foreign
commercial opportunity 10 the extent
that opportunity is involved in the pos
session of an American neci No con
/ Germ for profit NeXes Government enter
prise in the business field. For earn
Ing power the Government substitutes
taxing power and is prepared to ignore
all matters of expense
For that reason If the Government
goes into the shipping industry any
chance of obtaining n merchant fleet
through private provision will be for
ever destroyed. Private capital will
not enter amy field Of endeavor In COM
petition with governmental disregard
Of expenses ana Independence of earn
Ing power. \ Government merchant
marine would avoid direct subsidy TO
private enterprise In one way only to
grant 1t in another. The subsidy would
not go to ship owners but to shippers,
and the Government fleet would be an
acknowledgment that the advocates OF
ship subsidy were right in their con
tcntlonS
Government ownership of n NOR
chan, ler' might lead TO awkward com
p'im,ionS IN time Of war II Is nucs.
ton also how much the Gov",nmout
ship purchase bin squares with the
sound doctrine ~ public policy cnun-
clated by President WILSON recently
when he told some cotton growers that
he was anxious TO SEQ their troubles