The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-10-06
WHY A SHIP SUBSIDY?

PRESIDENT 6arO1nS has lnulcdleu aA
intention of calling an extra session
of congress next month, the purpose
of which shall be the enactment of a
ship subsidy bill.
One of the arguments being offered
in support of the measure is that an
American steamship company is to be
formed with a capital of 100000
to build two electrically driven liners
of 10000 tons each, if the bill pass.
They will be bigger than the Majestic
of the International company. The
Majestic is under the British flag
taken over from the Germans. and
there is no shipyard in England
which can receive and dock the YES
sci for repairs and only one in the
United .Statess the dock built by the
city of Boston. How will the 10000
ton ships be docked for repairs0 VIII
we subsidize dock companies to build
docks big enough to repair these
liners?
The United States still is an agri-
cultural country. and on its exports
of grain and grain products we still
depend in the main for freighting for
ships. We are spending millions to
increase our export trade at the same
time putting up tariffs which will
cut down imports on which a mer-
chant marine is dependent. The
higher the tariff wall, the less import
freighting and the more dependent
United States ships are for grain to
keen them engaged
AS grain is the principal article of
freight from the United States, any
thing affecting the status of the grain
business has a most serious effect on
the regions depending upon it for
their prosperity and that which af-
fects our grain states affects the well
fare of the nation indirectly. Conse-
quently the shadow cast by the enor-
nous grain crops of Canada raised
this year may well be taken into con-
sideration. Canada will produce this
season about 4OO,0o0.OoO bushels of
wheat and 100000 bushels of rye.
In these two products alone she is
able to furnish Europe with approxi-
mately 350,000,000 bushels of food
stuffs, the wheat and rye being the
staple articles of food for Europe.
The United States can export about
| 200, 100000 bushels. It is an axiom
that the seller having the greatest
quantity of goods to offer is the one
who makes the market. Canada is in
no position to hold the grain if she
wanted to, and she does not want to-
Her farmers can raise grain more
cheaply than can the farmers of this
country. Canadian land is less III
price and her yield per acre runs
much above the yield of the wheat
and rye acreage of the United States
What will be the effect if the ship
subsidy bill pass? viii British o9-
ders go to the United States, or Can
ada? If they go to Canada, what eff
feet will it have on United States
wheat? The answer to this question
is clear, but the final results to the
farmer are not SO apparent. With the
subsidy tax resting upon him for q
period of years, with diminishing
markets and declining prices, will he
not find his purchasing power weak
ened and his financial stability under.
mined?
One may well ask, why a subsidy
with several hundred ships owned By
the government tied at anchor fol
lack of freight? These ships are of
fered at prices lower than they car
be bought in other markets and ever!
one of them has the right to engag'
in our immense coastwise trade FIRE,
| ~ ~
or foreign built ships
Americans seem very little disposed
to venture ipto the carrying trad
these days, unless guaranteed
profit. In any other line of business
if goods were offered at sacrific
prices, there would be found read,
> buyers, but in shipping this is not tn
case. One important reason given a
. to why Americans keep out of tn
ocean shipping trade was that tn
Z cost of United States built and oper
l ated ships was greater than that o
r foreign countries. United States bull
ships now on market are cheaper to
day than foreign built ones, and 1t 1
stated the cost of operation under tn
, American flag is less than under tn
British.
\ There are some investors who ap
! parently feel that there is fine chanc
to engage in ocean deep shipping
subsidy or no subsidy, and if a sub
n sidy really comes along, so muc
: greater the reward. In any event tn
e price of the ships they bought en-
|. courages the belief that they can NEE
competition and prosper. These pee
r pie should succeed because they de
n serve success, and they will prove tn
e upbuilders of an American merchar
e marine, possessing the courage. en-
4 ergy and enterprise to enter a fiel
:. practically unknown to US for tw
:. generations.
e Senator Watson of Indiana est
s mates that the new tariff law wi