New-York tribune., 1920-11-04
Harding Favors
A Constructive
Marine Policy
President-Elect for Steps to
Increase Proportion Of
Trade Transported in Yes
sells Under the u. S. Flag
Panama Canal a Factor
Saws Democrats Have Failed
10 Realize Possibilities;
Tolls Exemption Urged

SAGE to the Shipping men OF America,
ie,lares the aim of the new administra-
,ion will be TO correct the mistakes of
the mast and to devise constructive
American program for the future.
The message, which appears in the cur
rent issue Of The Nautical Gazette,
states that the new development of the
merchant marine will become potent
element in economic growth without
the accompaniment of social injury.
Every measure possible must be
taken to increase the proportion of
trade carried under the American flag,
SAYS the President-elect, and he indi-
Gates that he will further steps to ex-
empt American ships from the payment
Of Panama Canal tolls. President-elect
Harding writes:
"The phenomenal emergence of
great American merchant marine is ono
Of the most striking economic conse-
quences of the World War. In 1914
the total tonnage registered for for
eign trade under the American lag was
100000 gross; to-day, thanks to the
quick sense Of the American people as
10 the critical Importance of shipping
IN the World War and to- the invincible
genius OF the American industry in sur
mounting governmental delay and ad-
mnstrative inetficiency. there is ready
for our flag some II, 500, 900 gross tons
Of sea-going vessels.
Merchant Marine Aid to Trade
This Importance of our new mer-
chant marine is not alone that it sal
4rrflV V,,ff1 70. 4
ly body o. war material, nor even that
It adds great new activity to the ma
tiou's business life, as we'll as q whole
sone safeguard 20 the country's Sc
curity but, more significant still, it
provides the mechanism wherewith we
can retain and enlarge the economic
vantage ground In world commerce and
World finance which we now enjoy.
"A equipped merchant marine is
a prime essential Of successful COM
merce; il is the best agency Of trade
development Nothing else will supply
the same enterprise in the search for
new markets, nor contribute the same
energy IN the opening up of new trade
routes. nor offer the same encourage
ment for the investment abroad of oul
surp,us capital. Overseas Transported
ton N American bottoms is of the root
and essence OF American commercial
eXparsion
"Elow urgent is the need will appear
II vo consider the new position Of our
country I'm the world trade. In FIVE
years We have changed from p debtor
nation, owing the world between four
and i've billion dollars, with a vary
ing annual trade balance sometimes
aeanst US, 20 q creditor nation To
whom The world IS in debt on capital
account some twelve billion dollars and
70 whom Is due an annual credit bal
ance certainly as great, probably much
greater. than cur prior debit balance.
Danger of Flood of Imports
at is Of the gravest national con-
cerr that iris changed international
position shall not work to the injury
cf cur industrial and agricultural life
Larger exports of merchandise from
the debtor TO the creditor country re
main the line of least resistance, AMI
70 this course We must be prepared to
see Europe hendinr every effort. 1t
the natural way in which rcstora-
lions from WAY mus, DC wrought.
"But ID food of imports from debtor
countr.es intent unon stimulating their
productive output and aided, even
though undesignedly, by an unfavor-
able foreign exchange, would be a bit
'er experience for the creditor country
We mean 10 deal considerably. we
want TO heln, but We do not mean to
para'yze America TO effect q restora~
ton.
prom any such invasion we have Il
Iigi' 70 he saved. our new merchant
marine Wiil DO much to avert It. sup
plemented noW and whenever occasl on
feqnire by d cautious revision OF the
tariff that. while regardful OF our
changed international position, Will ct..
fectually safeguard every phase OF
American Industry and agriculture, the
rev shipping Development Will become
poten, element in American economic
growth without. the accompaniment OF
social injury
Must Increase Carrying Trade.
"The war caused the rapid expansion
Of our saltwater transportation taclll-
ties and vet. even in 1919, only about "a
per cent Of oar exports and 90 per cent
of our imports worc moved unde' the
America Aar. We must persist IN
every measure aiming not only to hofd
hut TO Increase the proportion of over
seas trade under our flag. II may prove
difficult when the merchant feet ol
Europe beeius TO be rehablitated.
They kc the Industries of Europe,
viii sees to undsrscll us, and IN order
10 keep our shipmasters in business we
VII find it necessary 20 extend every
possible encouragement, every reasona-
nle preference. to our own.
Convinced as I ann that the Panama
Nana has 81 peculiar concern to the
people of our central valley, it has long
been matter of profound regret to me
That the canal should not have been
made orc Of the great free highways Of
American trade, whatever may have
oeen the merits of the exigencies which
'lstalned the denial to American trade
q special advantages dine to American
'nlps by reason of our construction OF
ne canal. The time surely Will come
Wnen we must claim for our own coun-
Try and for the Western continents
very rghtful privilege that may occur
oy virtue of this linking Of the two
great oceans
lhe canal ought to be an interest
"hd unity between all the Americas,
ana cannot but feel that the policy of
democratic Administration in admin
.a'ei'ng the canal has failed sadly in
'eaiizing these possibilities. 1t will be
Vur aim TO correct the mistakes of the
psst and 10 devise a constructive
american program for the future"