, 1922-02-28

E8 @F EA-L AAE O0a
cord OF American activities makes for
common American good fortune.
Contemplating the competition 10
ment TO the interstate comerc act
which win permit railways systems
to own and operate steamship lines
engaged in other than co4stwtse
trade.
We may further extend our long
established protection TO or cnNst-
wise trade. which is qrite in har
mony with he policy Of most mari
time powers
Other indirect aid viii be found
in tho requirement hat immigration
shall Join wherever IL IS found TO be
practical IN aiding the merchant ma
rine OF oar flag under which citizen-
| ship Is to be sought and in h es
.abiishmont OF the merchant marine
naval reserve
Congress has already provided for
a loan fund to encourage construc,
| ticn- II might well be mado ap-
plicabie to some special requirement
In recondiioning.
II Is also worth our consideration
that. II Wow OF suspended avn con
struction. the continued building OF
merchant ships is tho one guaranty
Of a maintained shipbuilding indus
try.
a very effective indirect aid will
be found in the proposed deductions
on incomes. amounting to five per
centum OF the freight paid on
goes In American bottoms.
Our existing ships should be sold
at prices prevailing in the world
market. ] am o unmindfui OF the
hesitancy to sacrifice h values to
current price levels. We constructed
at the top cost OF war when necessity
impeiled to meet a great emergency.
II there had come no depression a
return TO approximate normal cost
would have been inevitable. Blu the
great slump in shipping has sent
tonnage prices to the other extreme.
II we held our ships to await the
recovery we should only make more
difficult our response to reckoning
opportunity.
II I were not deeply concerned with
the u~pbuilding of our merchant ma
rine, should nevertheless strongly
urge congress to facilitate the dis
posai of tho vast Tonnage acquired
or constructed in the great war EN-.
Urgency. The experiment we have
made has been very costly but the
outstanding lesson is that the govern
ment cannot probably manage our
merchant shipping.
Having failed at such enormous
cost, L bring you the proposal which
contemplates the return TO individual
initiative and private enterprise, aid
ed by a conservative success. where
in we are safeguarded against the
promotion of private greed and do
not discourage the hope OF profitable
investment
We have voiced our concern for
the good fortunes OF agriculture. We
have long proclaimed our interest in
manufacturing. In the evolution of
railway transportation to both agri-
| culture and We have eleven
for deepened channels and better
harbors- But we have ignored our
merchant marine.
1t would seem as though passing
events were combining to admonish
us not to fail now.
Up to the world val We were a
| debtor nation. Our obligations were
held largely by the maritime powers.
Apart from tho advantages in carry
ing our m they sought
shipments for the balance due to
them There IS a different condition
now. They are concerned with ship
ments to us but not so interested in
our shipments to them. It is our
purpose to continue our exchanges.
but we shall be surer of selling. not
ably our foodstuffs, II we maintain
facilities for their transportation.
We have recently Joined the great
naval powers in a program which not
only puts an end to costly competi-
ton in naval armament and reduces
the naval forces OF the world. but
adds to the confidence in maintained
peace The RELATIVELY of strength
among the powers would be wholly
ono of disappointing The originally