The Lexington progress. (Lexington, Tenn.) 1884-current, 1922-11-24
THE SHIP SUBSIDY.

The Sixty-seventh Congress, having
learned little or nothing from exper-
fence and undismayed by the rebuke
which was administered to it On cleo
tion day, will convene in special ses-
sion on Nov. Goth for the purpose Of
considering a ship subsidy bill which
is manifestly not likely to further the
best interests Of the great masses of
the people of the United States.
Pressing the bill at this time does not
appear to be good politics, and it is
certain that the passage of it at any
time would be an economic blunder in
large proportions.
The fact that the ship subsidy is a
luxury which a hard-pressed people
cannot afford is the most salient OBJ
lection to it. The provisions of the
measure which will be presented to
Congress are illogical and i'll consid-
cred. The bill would make it obliga-
tory on the govemernment to sell, for
around $500, 900 900 ships which orig
inally cost nearer 5000, 000, 000, than
otherwise and which retain a very
large part Of their first value if they
are worth anything. In addition the
bill would give a bonus Of $50 ,000,-
900 to the shipping interests and then
make them a loan of $125, 1000 900 at
2 per cent. 1t would be a case Of Civ
ing away to special interests some
thing that is extremely valuable and
paying the recipient handsomely for
his kindness in taking it.
There are cold facts which should
not be disregarded at this time dur
ing the appraisal and consideration of
such a measure. The deficit for the
current fiscal year is estimated at
$3.50, 900 900 by government experts,
the figure has been increasing stead
lily as taxes continue to dwindle and
receipts at the treasury decame less,
and the probabilities are that the pres
ent figure will be largely exceeded be-
fore the matter is finally concluded.
The people of the country are com
PEELED to pay high rates of interest
when they borrow money. It is GER
tainly no time for them to be indulg-
ing in prodigal generosity and lending
their own cash at 2 per cent.
The inevitable conclusion is that the
shipping interests of this country are
going to be a liability rather than an
asset if they cannot operate in COM
petition with the carriers of the other
nations without tremendous subsidies.
IL American financiers cannot get
into the shipping business by meeting
the freight charges set by other car
riers at this time without being so
largely endowed, there is very little
reason to think that their success
after being presented gratis with
ships and money to run them would
be more than very temporary.
Ii American operating costs are
higher and if American ships cannot
meet foreign competition now, the ex-
travagant subsidy would al!ay the
trouble and not cure it. There is
small hope that American ships would
be U more economically because the
owners had every reason to think that
their government would step in to pay
losses which might be incurred.
1t is reasonable to believe that this
country will never have a satisfactory
merchant marine founded on n such
artificial structure as the ship subsidy
bill would erect for its support. Bust
ness is not built on any such founda-
ton. No matter how large the tank,
continued leaks will finally drain ii
dry. 1t IS not logical and not neces-
sary on account Of any present emer-
gency that this country have shipping
unless it a pay for itself, a thing #
can DO and will do unless it is pauper.
lzed by foolish legislation.-Nashville
Banner.