The Washington herald., 1915-12-21
Hsw t. Re,tere Isrhint Il,r;ne.

| an extra tonnage tax on such foreign ships the
extra revenue thus aceruing to be paid for mail
iscrvice by fast lines OF American ships. This is
1.-THE plan strongly urged by Robert L. McCabc. of
Columbus. Ohio, who says in aarccenty published
larticlc:
4 "ln our present state Of bcwildcrment on this
subject, might well turn for wisdom and guild
ance to the impcrishable record of the fathers.
Among the many grca. things accomplished by
these men in the hrst Congress OF I7So was the
enactment of a tariff law which provided protective
duties for the upbuildng Of manufacturing indus.
tries as well as discriminating import duties and
tonnage taxes for the creation OF a merchant ma
rinc. The way they created the merchant marine
| then is the best way for us TO restore it now.
Extra duties amounting to 10 per cent were in-
posed upon all imports-dutiable or frce-coming
| to the United States in foreign ships. as well as
extra tonnage taxes upon these ships. Importers
very generally patronized American ships because
they were required to pay only the regular duties;
and to the extent of their patronage they built up
and sustained the American merchant marine. If
on the other hand, foreign ships were used, the
| United States Treasury was benefited to the cx-
tent of the extra revenues The extra import
duties and tonnage taxes were liked sufficiently
high to cover the difference in cost OF building and
navigating ships under American and foreign aus
| pces. By of the impetus thus given to
our shipping by these preferential tariff provisions
of 1880, all our ships built by American labor
/ in American shipyards and were oificered and
manned by crews receiving standard American
compensation. Our merchant marine grew to
great proportions and was the most efficient ma
rine service in the world Until 1850 an average
! OF 80 per cent of our foreign commerce car
ried in ships. But since then American
ships have carried an average OF less than ~ per
cent. This decline In our foreign shipping was
gradually brought about through the operation of
treaties made by our government with thirty-four
foreign nations, stipulating that the ships and car
goes of these nations should be exempt from the
payment of extra duties and tonnage taxes Not
only were these baneful treaties made in dcroga-
tion of first tariff law, but finally all that re-
mained OF this law was repealed in 1928. Our
merchant marine thus forced to meet the un-
equal competition of foreign ships well as the
unjust exacons and determinations, not OF foreign
governments but of foreign marine insurance un-
derwriters. After 1928 foreign shipping was
abandoned to its fate by the government; and the
activity and prosperity incidental to the building
and sailing OF our fleets passed gradually and in
lcxoraby, without compensation of any kind, from
the United States to Europe. The gradual de-
struction OF our merchant marine was brought
about by the proponents OF free trace under the
shibboleth OF reciprocal liberty Of commerce even
as the gradual strangulation OF and beet
sugar industry is being consummated under
the alluring phrase of tariff REFORM. Irrespective
Of party tcnes, the vast majority OF our people
want adequate protccton-not high that IT
would please the monoposts nor SO low that 1t
would please the free trade doctrnaircS-but Just
enough to safeguard and encourage American en-
terprsc land and against destructive foreign
competition.
without government protection, cannot
maintain American standards either in our ship
yards or upon the seas and at the same time com
pete for the foreign carrying trade with foreign
ship owners But it our government viii provide
the proper protection, Americans will create a
merchant marine which will break the foreign con
troll OF carrying trade and eventually reduce
our ocean carrying charges Reduction in prices
has been the uniform record OF all the protected
industries after the foreign monopoly OF our mar
kctS has been broken. Under preferential tarIii
every thrifty American who Is so inclined could
prohtably engage in the building sailing OF
ships and many cntcrprising men would rush to |
embrace these opportunities, whereas, the payment
OF government subsidies would exclude the many
and allow only the selected few to do these things.
And likewise, government ownership would stitle
individual initiative and exclude individual owncr-
ship, both OF which essential to the upbuildng
of great maritime industries. The recent admin |
istration proposal announced by Secretary McAdoo |
for the government to build fast uptodatc steam
ships to be leased to the fortunate tnfuentiaD
few, at rates far below cost is mmeasurably more
repugnant to democratic instincts than are ship
subsidies. 1t is bungling 5 well a prepos- |
ferrous piece of special privilege pregnant with cor
ruption, scandal and failure But is admitted on
all sides that the policy OF discriminating duties
would quickly call into existence a merchant ma
rine commensurate with the commercial power OF
the United States. Under this policy our govern
ment could assist American companies to maintain |
swift up-to-date mail-carrying lines composed OF |
ships OF the type Of the lmperator, Naterland, /
Aquitania and the Mauretana by segregating in |
the national Treasury the extra duties paid inl-
ports coming to the United States in foreign bot
toms, and using the extra revenues to pay Tor the
quick mail service OF these fast lines. Instead of
being excluded any longer from the foreign carry
ing trade by the foreign steamship companies we
the support Of last Amercan-bult ships carrying |
our mails to Europe. Asia and South America. |
Thus would cure the bite OF the dog with its |
own hair.
"Yet. admonished by timid people that if
VIC adopt this policy and abrogatc the t..irty-four
treaties of reciprocal liberty of commerce. the |
foreign nations would enforce retaliatory meas
ures against This is the ominous threat |
that is regularly made whenever a new protective /
tariff bill is about to be enacted by Congress We
have long known, however. that foreign nations
will not retaliate because it would be folly for |
them to do They may protest, and even
covcrtly threaten us, but rather than be excluded
from the American market, which is the greatest |
market the world has known, they will COM
ply with any conditions we may see fit to impose
upon their commerce They rcaliz that they
would be the chief sufferers because they are
more dependent upon market than We are upon
theirs. AS matter of fact, our old merchant ma
rine did not suffer from foreign retaliation as
long the preferential tariff was in force. But
as soon as this law repealed and we adopted |
the free trade policy of reciprocal liberty of COM
mercc the gradual decline of our merchant marine |
was fastened by unjust determinations imposed i
by the British underwriters