New-York tribune., 1921-12-02
Message to Put
Tariff and Ship
Questions First
Recommendation of Marine
Subsidy in One Form
or Another by Harding
to Congress Is Forecast
Favors Refunding Bill
President Reported Likely
10 Indorse the American
Customs Valuation Plan

From The 3fs6ttNsS WdSkiaosok Sagsnu
WASHINGTON, Dec. l.--President
Harding's annual message to Congress-.
which lie viii deliver in person ON
Tuesday, will deal almost entirely win
three problcms-the tariff. the mer-
chant marine aad the resundinS Of the
Allied debts--ie became known to-day
through leaders at the Capitol with
whom the President recently had con-
serred.
Senators said the President would
favor enactment of q tariff measurr
IN the regular session. in spite OF
rumors that the tariff would 20 oves
to 1928. The President is being
strongly advised to support American
valuation and also strongly advised
not TO support it. The report in Financs
Committee circles to-day was that he
would support it.
The information that the President
would deal extensively with shipping
problems also was further confirmed
through conference between the
President and Chairman Lasker OF the
Shipping Board.
Subsidy System Favored
TIE President. it is said, will recon-
mend the repeal of Section ID of the
Jones shipping act. under which the
Executive is directed to take steps to
abrocste treaties which stand in the
way Of this country adopting a policy
Of discriminating duties. He will also
recommend policy of subsidies or
policy. as government oficials call it,
of government aid to shipping.
Senators said the President would
follow up his treatment Of the shipping
L,
specisl message IN which he would deal
with the matter more fully
Chairman Lasker went into the ship
u,nr policies in detail In his discus
sion with the President to-day. The
President also had the matter up to-
night. when he entertained Senators
Perrose, Curtis and Watson, Of Indiana,
az dinner and talked over the ieglsla-
tive program. After the dinner 1t was
suggested that an effort would be made
70 get quicker action on the debt-refund-
ing bill. so that the President Will not
need to devote much attention to IT.
in his message.
The fact the Executive favors a
policy of government aid or subsidy,
Senators said to-day, undoubtedly
would lead to an animated controversy
~ both houses of Congress. and so Will
the movement for repeal of the section
relating to discriminating duties Pres-
ident Wilson would not enforce th's
section. President Harding has taken
like stand However, President Har-
ding's position is understood to be that
law should either be enforced or re-
nealed. The State Department opposes
IT'S enforcement. The question of what
President Harding will do If Congress
declines TO repeal the section ls some
thing not vet answered.
Need for Marine Now Vital
The view which the Administration
takes OF building up the merchant ma
rine by government aid, which would
include subventions and preferential
railroad rates for goods carried IN
American ships, is that the naval re-
duction which will be carried out as the
result of the present conference will
leave other powers, especially GREAT
Britain and Japan, in extremely strong
position az sea compared to the United
States unless the United States builds
up a permanent, powerful merchant
marine. In other words, the need for
a strong merchant marine, as the Ad-
ministration sees it, will be all the
greater as the American navy is re
duced 1t will also be argued that by
reason of economies in naval expendl-
lures, this government can afford to
adopt q more liberal policy as to ship
ping. The position Of the agricultural
bloc" has not yet developed. but there
Is little question that it will not take
kindly to subsidy.
La Toilette to Push Inquiry
Not only will shipping questions as
sumo great Importance in Congress by
reason of the prospective recommenca-
tions of the President, but because of
the need for making appropriations for
the Shipping Board and because of the
demand of Senator La Toilette for an
investigation of the board. He will re-
new this demand In the regular ses
sion Moreover, the Commerce Com
n1ittee will give further hearings be-
hind closed doors to Chairman Lasker
and the Shipping Board with respect
to the policies and activities OF the
board and the inside details of shipping
affairs
~