The New York herald., 1920-12-07
the sltuation-produce more and save

the situation--produce more and save
more.
"The productive resources of the
United States are somewhat in excess
of home consumption, 1t is right that
such should be the case. II, however,
We cannot export this surplus we must
limit the production OF our factories
whenever surplus begins to appear.
If we can export our surplus we can
keep practically every factory in the
country running at rull time twelve
months in the year. Germany did so.
Full time production means more money
i'm wages and in profits as well as lower
prices for all commodities.
I'VE have now built ourselves a great
merchant fleet, but the ships will have
no value unless we fellow up their con-
s.ruction by the devising OF ways and
means for their operation.
THE successful operation OF American
ships is absolutely dependent on their
ability to carry as cheaply as foreign
ships. If the wage item alone-under
American registry-continues to cost as
IL does now, under ordinary conditions
In the neighborhood of 40 per cent more
than British or Norwegian owned ves-
sells II is easy to see the outcome of
this competition.
Congress has passed and the Presi-
or may not meet the emergency But
we shall be unable to determine the ade-
quacy of this. the Jones bill, until the
President OF the United States takes the
necessary steps to abrogate such treaties
as must be redrawn IL the law is to have
trial. And In the meantime we are
losing the advantage of that foreign
trade for which the world is striving.
Il am not personally committed to
% ..,,,
toni want the one that operates. The
thing is to operate the ships. and their
successful operation is dependent wholly
on the ability of American registered
ships to compete with foreign bottoms.
Legislation to promote our oversee
trade is not for the benefit Of a class
but for the benefit of the mass. But as
it is. our ships are not only in effect
penalized by statute but they have not
even the single advantage of the free
use OF one of the greatest of all our
Government enterprises-that is. the
Panama Canal. An English ship can
actually go through the canal at a lower
rate than an American ship. and / sug
gest as one step forward to the mainte-
nance of merchant marine that ships
flying the American flag be permitted
to go through the Panama Canal. If not
free, then at least at lower tolls than
I'VE built the Panama Canal. Why
not let American trade benefit by It?
Thus far l have not discovered any
thing that big business wants that the
American people guided by reason do
not also want / have not discovered
anything that is opposed to the interests
of the American people. However, l
have not mentioned taxes.
''At the present time we have very
high taxes on corporate profits and on
personal incomes. These taxes were inn
posed under. ] think. the sincere belief
that thereby the wealthy could be made
to support the Government. On the
face of things 1t would seem that tax
ing away wealth pats the burdens of
government where they belong. but IL
we go back to looking at how profit in
the form of capital investment increases
the real wealth of the whole country we
shall be forced 10 conclude that excess
siHe taxation for governmental purposes
while 1t takes away income from the
rich, II also takes away the means of
increasing the wealth of the nation.
Excessive taxes tend toward level
ing, but it is a ieveling downward, not
upward, because the supply of free cap
ital arising from profits, instead OF be-
ing turned back into industry. is turned
into the Golfers of the Government and
there is mostly wasted.
What big business wants is only
what every man wants-the opportunity
honestly to make living, to advance
himself and our country"
In the course Of his article Mr.. Schwab
remarks:
do not imagine that I am one of
those who affect to despise money. /
want to keep what is justly mine .
] mean that the merely rich man will
have no credit in the community If he
is of no use to the world"