New-York tribune., 1922-06-21
Harding Puts
Ship Subsidy
Up to People
lie duty II did not ask q decision DC
fore the present session - finally ended
Verdict Of 1920 cited

Verdict Of 1920 Cited
"rh,re was an expression of the
nopulsr mind IN 1920 The party now
charged with responsibility spoke IN
no uncertain terms about the promo
tion and maintenance of an American
merchant marine The question WAS
not made paramount. but the pledge
vas eovenanted. and II was well un-
der.tood. because tho people knew in
a very general way that vast tonnage
in shipping was government posses
sion as the result Of war activities,
and a practical government must turn
this one war asset to permanent, peace
time advantage.
Literally we have a merchant ma
rine poorly balanced. because the war
construction was emergency constrpc-
ton, building anything and everything
We could Of any cost. without serious
thought Of its possibilities IN The sea
service of peace Moreover ~ is large
ly government owned. operated a.
loss 10 tho government Treasury. In
spite Of every drive toward economy
In spite % suspended service and the
cancellation Of contracts for operation
in the governments behalf. IN spite o.
radical reformation in the govern ,
ment's shipping activities and sUa'
pended lires much sought by American
commercial Interests. tho plain. hunt
truth is that government shipping has
cost the Treasury more than Soo.oOo'-
000 loss during the hseal year now
closing. This does not include depre-
citation or deterioration. running into
millions more. and We have praeiicsI
problem which cannot be ignored oy
either the executive or legislative
branch Of the government, Or by me
American people of every section "no
must supply the Treasury funds
Private Initiative Lacking
"Perhap, this venture in government
pursuit o. Whist ought 70 be private
business would he looked upon win
complAcencv n - we're making even
= slight degree OF progress toward
permanent and efficient merchant ma
rine. But We are not succeeding inc
vital element ~ private initiative ana
genius for business success is lAcNng'
and our inefficient activ'tiss are DIS
couraging and disheartening the fer
who nave sought % establish shipping
lines on private account
There is no fault 10 be charged n
The Shipping Board as 10 is now organ
lied Losses aggregsting tlbOOo'oOo
month have been reduced 10 snbstanu-
ally one fourth that sum. The re
mainder is not n criticism or Vnat
mad developed out of war service and
war construction. Our trst tnougn
then was national survival There was
war imitation and the excuses 10 com
mercs in the immediate aftermath.
Then there came 20 shipping slump
beyond all comparison with other se-
tivities. Our ships. costing S3,OOV. 900.
600. suddenly became worth only =
fraction thereof. and there was no
market in which 10 sell At any price
Profitable operation turned 20 shock
inr deficits. and only drastic eurtail-
m.nts 81 activities saved ms from the
astounding losses which were ensuing
Wnen tho present board Vas organized.
Two Problems 10 BE Met
We nave. therefore, two outstand-
ing problems which must. be met. ~
me solution % which Congress must
share the responsibilty. and regarding
which there can be but one opinion
when our people are acquainted ".tn
The facts One is the handling Of orr
shipping assets 10 the highest advan-
tage. without continued loss to the
public treasury. The other IS tne es-
tablishment % an efficient merchant
marine. when opportunity is oeckonine
As never before. a. an agency ~ com
merce and an avenue 20 Influence ir
peace. and an indispensable element of
defense II We are again involved ~
var. 40 argument is needed on the
last essential other than the reminder
that we builded our vast tonnage az
var necessity. and no one though, 20
complain % the excessive cost or the
ultimate accounting.
The question IS not % be prclud.ccd
by the old and wornout cry against
subsidy. II there is insisten' use OF
term so long employed 20 awaken
public hostility, let It be known that
we are subsidizing to-day by paying
losses aggregating $4,000, ,00O0 year
FOR inadequate service OF no perma-
nenee, while the pending measure con
templates no such outlay and is paid
only for specified service watch is the
base Of a. merchant marine ~ 20 com
pete with the maritime powers 81
the world Moreover. the term sub
sidy. implying bcstowal upon spcc.a'
interests. car no longer be applied 90
public service where the aid be- ~
tended only until a normal earning rs
developed. and must be returned after
The earnings reach 10 per cent 70.
turn on actual investment. certified
under government audits AT this The
pending measure provides.
Eminence on the Seas
"The larger question il thai % ma
tional policy in availirg ourselves Of
our tonnage and the present opnortu-
nifty 20 establish great American mer-
chant marine. II We are 90 think %
only self-contained republic. aloof
from ihe world. perhaps we may goi
on depending upon our competitors for
our carriers by sea. But such course
every aspiration and narrows
our vision. No nation ever has main
iained enduring prominence or abiding.
good fortunes except IN proportion 20
its eminence on the seas. IL = the
unvarying story OF national power and
influence throughout all civilization
The rare development, Of our own land
in n century and half Of national life
ia no contradiction. because We were
houndless IN our untouched resources
until now, and even with them we felt