, 1921-08-09
ENCOURAGING MERCHANT ELEEr

Senator Jones of Washington has proposed an
amendment to the pending tariff bill designed to en-
courage the American merchant marine. 1t is brief
but pointed. 1t reads:
Hereafter all goods, wares and merchandise i'm
ported in vessels other than vessels of the United
States shall be subject to a duty of 8 per centum ad
valorem in excess of the duties herein imposed, and
all goods, wares and merchandise, excepting tea and
coffee, so imported which are otherwise admitted free
of duty under this act shall pay a duty of 2 per CEN
tum ad valorem: Provided, That the foregoing pro-
visions shall not go into effect as to goods, wares and
merchandise if imported in the vessels of those ma
tions with which we have treaties which said proyi-
sions contravene until the expiration of one year from
the date when this act becomes a law, at which time
said treaties are hereby declared to be duly abrogated
unless the same are sooner abrogated by notice given
by the president under the terms of such treaties"
Under section "a of the present merchant marine
act the president is authorized and directed to give
such notice. President Wilson refused to take action
under this section, a refusal which prompted Mr..
Harding to declare in a prediction speech at Balti-
more on September 27: at is useless to look for use
full results if the president persists in his policy not
to carry out the terms of that act" In his Omaha
speech of October is, Mr.. Harding declared 81 am in
favor of the enforcement of the Jones act which was
Intended to make it possible to hold that advantage"
that is, the advantage we had gained during the war.
Il have no hesitancy in giving full condemnation to
the failure of an administration to put into effect the
bidding of congress. / am for a growing American
merchant marine because it is the only protec-
ton we have against discrimination in shipping and
because it guarantees that America shall have one of
the three great essentials to a vigorous, growing for
eign trade"
Something like 40 per cent of our water-borne i'm
port trade was carried in American vessels during the
last fiscal year. Water-borne trade was about 81 per
cent of the total, or, roughly, 1920, 900, 900, of
which about 81 ,2s0, 900, 900 paid freight to American
bottoms, while the foreigner was paid for CARRYING
s1,e20,o00,oo0 worth of the incoming traffic. Our
total imports by land and sea were SO, 654,O 0O, 900 in
value. Assuming that under the pending tariff bill we
should import $4,000, 900, 900 worth of goods next
year, 81 per cent, or $500, 900 900 of which came
by water, of which so per cent, or 81 $50, 900, 900, was
carried in foreign ships, that would be the figure to
which the Jones discriminatory rates would apply. As
Stunning, again, that the ratio of free to dutiable i'm
ports would be the same as during the last year I'M
der protection, or 81 per cent for the former, and 46
per cent for the latter, we would have $S42, 600, 900
worth of imports paying the 2 per cent discrimina-
tory, or $16,soo,0oo, and $71s,ooo,O 900 paying the 5
per cent discriminatory, or nearly $50, 000,O 900 aggre-
eating nearly $50, 600, 900 in discrimination in favor
Of American ships. To enter into competitive sub
sidization would be poor policy because the British
board of control has plenary power. The dscrimina-
tory plan was in the first tariff bill ever passed by
congress, and it worked successfully until the British
hocussed us out of it following the Treaty of Client
in 1916.