Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-12-10
WlLLPROPOSE
SUBSIDY FOR
U. 5. Ships
President to Recommend
levy Rebate Of 10 Per
Cent on Tonnage
REPEAL JONES ACT
New Policy Holds That Abrogation OF
Trade Treaties Is Not Neces-
sary.

Washington, Dec. l0.-Presiden
Harding will propose. to Congress ina
American shirping be subsidized OF
"remunerated" at rate OF ~ pei
cent. of the amount of tonnage i'm
Dorted by each vessel and at the same
time he will ask for the repeal Of that
section of the Jones Merchant Marine
act providing for reduced duties or
imports carried in American bottoms
Official announcement of this pro-
gram was made at the White House
Yesterday. The formal recommends
ton will be made to Congress when
the President appears before that
BODY with a special message dealing
with the upbuilding of the merchant
marine.
This new policy involves the abroga.
tion OF no commercial treaty be-
tween this and any other country and
according to the view of the Presl-
dent, it "contemplates no greater draft
upon the public treasury"
II Congress accepts the proposal OF Of
the President double purpose will
be served. The American merchant
marine will be given concrete en-
couragement on the one hand, and the
Government will be relieved of the
embarrassing duty imposed by the
Jones act of denouncing number OF
trade conventions thereby involving
u.s. as he said in his recent mes
sage to Congress, "in chaos of trade
relationships"
The new ship subsidy program, as
explained, at the White House yes.
terday, would provide that oil Ameri.
can ship owners. shall receive the 10
per cent. discriminatory duty which
otherwise would go into the Federal
Treasury.
This money would be used to re-
munerate the American shipping in
terests. The Administration does not
employ the term "ship subsidy" in
discussing the plans the President is
soon. to submit to Congress. Subsidies
are unpopular. They were unpopular
during other administrations.
For years the friends of the Amcri-
can merchant marine have argued that
some form of subsidy was imperative
in order to keep. American flag per.
manently on the high seas. Mail. Sub
ventions" have been promised as a
means Of promoting shipping but up
to this time all forms of ship sub
sidizing have been defeated.
1t is the Presidents present purpose
to recommend to Congress an entirely
fresh plan Of action. Under the old
Underwood Tariff, act discrimina-
tory tariff of 10 per cent. was laid
against goods imported into this coun.
try in foreign bottoms. This provision
has never been enforced the war hav.
ing interviewed.
When the Jones Merchant Marine
act Of 1920 was passed however the
President was directed to give notice
OF the termination of existing com.
merclal treaties in order to admit OF
reduced imports in American bot
toms. President Wilson refused ia
carry out that order Of Congress
When President Harding came into of.
flee ne began an inquiry into his pre-.
decessors, failure to execute the pro.
visions of the Jones act and dis
covered that to carry out that law
would plunge this country into a mos
unfortunate trade war He too refused
to act.
When he delivered his annual mes.
sage to Congress Mr.. Harding invited
the tolerance of Congress for very
few weeks until plan may be sub
mitted which contemplates no create,
draft upon the public treasury and
which though yet too crude to offer il
today, gives such promise of expand.
ing our merchant marine that it will
argue it's own approval"
That plan is still to be worked Out
in detail but it will soon be in form
for submission to Congress.