Evening star., 1921-10-08
B|NETTODEC|DE
ON Marine SUBSIDY
Belief Expressed That Farm
ers and Manufacturers
Would Back Plan.
BY DAVID LAWRENCE.

BY DAVID LAWRENCE.
President Harding and his cabinet
have Just tackled the biggest ana
most far-reaching problem Of the ad-
ministration-someth that relates
to unemployment. more markets Tor
agricultural products. Limitation OF
armament and international relations.
1t is the question of q merchant ma
rine.
Two hours of discussion in the cab
met led to no conclusion except
det termination to thrash the whole
thing out further at Tuesdays meet
ing.
The big question being considered
is whether the Harding administra-
ton shall take a step feared. by pre-
ceedins administrations. but never
theless pointed out as the only solu-
ton. namely. direct subsidy of
American ships.
the whole problem with characteristic
vigor and has made report to Presi-
dent Hardi Y outlining the alterna-
tives before the American govern
ment. He has shown how this is the
critical moment and how America
stands at the parting of the ways
either she will lose her chance to
build merchant marine or she will
avail herself of golden opportunity
to gather in trade round the world
for the benefit Of the American farmer
and manufacturer.
Confidence Of President.
Mr.. Lasker has the confidence not
only Of the President, but his as
sociates. He foresaw the failure of
the United States Mail Company and
seized the ships they had been operat-
ing for the Shipping Board. later be-
ing vindicated absolutely, in the
opinion Of Mr.. Harding. by the COL
lapse of the company. That has only
served to accentuate the necessity OF
Germs to compete on the seas with
ships flying foreign flag.
Briefly. 1t has been contended that
the La Follettee seamen's act, with
its high scale of wages. made it i'm
possible for American firms to sail
other countries. Deficits have arisen
from other sources. The question is
rot the same, however. as 1t was in
peace-time days before 1914. when 1t
amounted merely to subsidy to
American enterprises. Now the gov
ernment here owns a vast number Of
ships. What shall it do with them?
Shall they be sold at ridiculously low
prices at a time when the price OF
tonnage Is at its lowest point and even
Germs to founder for themselves in
the face of conditions of competition
that are ruinous, or shall the govern
ment enter into sort OF partnership
with private enterprise, paying sub
sidy for mail delivery and other items
in order to develop routes to parts of
the world hitherto untouched by the
American trader?
Problem Is National.
Mr.. Lasker insists that the problem
it national not sectional; that 1t in
terests the miner in Arizona as we'll
as the farmer in Kansas. He made
significant speech In New York last
week on these points. That speech
was unquestionably gone over by the
President before it was released to
the press.
The farming interests have hereto
fore blocked grant of subsidy. They
have not seen the close relationship
between a merchant marine and n
market for their surplus goods. Now
that the farmers are appealing to
the Harding administration to grant
them direct subsidy in the financing
of domestic movement OF crops as
well as the handling OF export trade,
the Harding administration IS in
clined to believe the agricultural in
tercstS of the country will support
a subsidy plan which will guarantee
America a merchant marine In the
and ships will again be in demand
In other words. the outcry Of the
farmer against high railroad rates
can at least be answered though our
governmental machinery. but IL Ameri-
ca must rely on foreign ships to carry
overcome the arbitrary freight rates
imposed by ship ownes Of other ma
tions. 1t might be too late then to try
to build merchant marine.
Merchant Marine Behind Navy.
Another phase of the whole ques-
ton is that which touches our for
eign relations. The big powers gath
ering here for conference of arma-
ment know full we'll that behind the
that the size of tho auxiliary forces
of a nation on sea make that nation
weak or strong as the case may be.
England could scrap heF navy and
still remain powerful ahoat because
of her merchant marine. Shall the
ships now in the United states gov
ernment's possession be allowed to go
to pieces through mismanagement or
through failure of companies to main
tain those ships in the carrying trade? !?
1t is naval, as we'll as a commercial
problem. Furthermore, the Senate
votes very soon on an act to exempt
American ships from the payment Of
Panama canal tolls. England pro-
tests that such an exemption amounts
to a violation of the Hay-Pauncefote
treaty which is supposed to insure the
British against discrimination. But
there is nothing to prevent the United
States from refunding the tolls to
American ships by means of a direct
subsidy. European governments have
all been subsidizing their merchant
marine. Tuesdays meeting OF the
cabinet may prove of historic i'm
pOrtance.
Copyright, 1911
ARMS FUND COMMITTEE