The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-10-10
SHIP SUBSIDY
QUESTION BOBS
UP IN CABINET
H ording and Aids
Must Decide Future
Merchant Marine.
BY DAVID LAWRENCE.
Copyright, 1921.

Washington, Oct. 10.-President
Harding and his cabinet have just
tackled the biggest and most far
reaching problem of the admins
understanding that relates to
unemployment, more markets for
agricultural products, limitation Of
armament and international rela-
tions. 1t is the question of a mer-
chant marine.
Two hours of discussion in the
cabinet led to no conclusion ex-
cept a determination to thresh the
whole thing out further at next
Tuesdays meeting.
The big question being consider
ed is whether the Harding admin
istration shall take a step, feared
by preceding administrations, but
nevertheless pointed out as the
only solution, namely, direct sub
sidy of American ships.
Lasker Shows Alternatives.
Chairman Albert Lasker has gone
at the whole problem with charac-
teristic vigor and has made a re-
port to President Harding outlin-
ing the alternatives before the
h.. ne Ids
shown how this is the critical NOM
ent and how America stands at the
parting of the ways-either she
VIII lose her chance to build a
merchant marine or she will avail
herself of a golden opportunity to
gather in trade round the world
Tor the benefit of the American
farmer and manufacturer.
Mr.. LaSker mas 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
operating for the shipping board,
later being vindicated absolutely
in the opinion of Mr Harding BY
the collapse of the company. That
has only served to accentuate the
necessity of making it possible for
American concerns to compete on
the seas with ships flying a foreign
flag.
Z. S. Owns Many Ships.
Briefly, it has been contended
that the LaFolette seamen's act
with its high scale of wages made
it impossible for American firms to
sail ships as economically as those
of other countries. Deficits have
arisen from other sources. The
question is not the same, however,
as it was in peace-time days be-
fore 1914 when it amounted mere
ly to a subsidy to American enter
prises. Now the government here
owns a vast number of ships.
What shall 1t do with them?
Shall they be sold at ridiculously
low prices at time when the price
of tonnage is at its lowest point
and even then let American ship
ping concerns founder for them
selves in the face of conditions of
competition that are ruinous, or
shall the government enter into
sort of partnership with private
enterprise, paying a subsidy for
mail delivery and other items in
order to develop routes to parts
of the world hitherto untouched by
the American trader?
Mr.. Lasker insists that the prob
lem is national, not sectional, that
it interests the miner in Arizona
as well as the farmer in Kansas.
He made a significant speech in
New OEk last week on IneSe
points. That speech was unques-
tionably gone over by the presi-
dent before it was released to the
press.
Farmers Help Needed.
The farming interests have here
tofore blocked a grant OF subsidy
They have not seen the close rela-
tionship between a merchant mar
inc and a market for their surplus
goods. Now that the farmers are
appealing to the Harding admins
tration to grant them a direct sub
sidy in the financing of domestic
movement of crops as we'll as the
handling of export trade, the Hard
ing administration is inclined TO
believe the agricultural interests
of the country will support a sub
sidy plan which will guarantee
America a merchant marine in the
days when business will have re-
viFed and ships will again be In
demand. In other words, the out
cry of the farmer against high rail-