The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-03-01

Inc remitsion OF q proportion OF
income taxes ~ wholly compatible
when the shipping enterprise IL Of
direct government concern. pro-
vided that such remission II APP
piled TO the cost Of new ship son-
Congress has already provided
for loan fund 20 encourage con-
II might well be made
applicable 20 some special require
ments in reconditioning.
IL IL also worth our consideration
that. in view Of Suspended naval
construction, the continued build
ing Of merchant ships n the one
guaranty OF maintained ship
building industry. without which
no nation may hope to hold a high
place in the world OF commerce or
be assured Of adequate defense.
Cites Indirect AID.
A very effective. indirect aid. a
substitute for discriminating
duty which shall inure to the bene.
fit Of the American shipper. will be
found In the proposed deduction on
incomes. amounting to 5 per cent
Of the freight paid on carRocs
carried in American bottoms. The
benefits can have no geographical
restrictions. and it offers its advau-
tages to American exporters as
well as those who engage In i'm
port trade.
Our existing ships should be sold
at prices prevailing in the world
market. j am not unmindful of
the hesitancy to sacrifice the val
ues to current price levels. We
constructed at the top cost Of war
when necessity impelled. when the
building resources of MANY nations
were drawn upon to the limit TO
meet a great emergency. II there
had come no depressIons. a return
TO approximate normal cost would
have been Inevitable. But the great
slump in shipping has sent tonnage
prices TO the other extreme, not for
America alone. but throughout the
world.
II we held our ships 10 await
the recovery we should only make
more difficult our response to
beckoning opportunity. One of the
outstanding barriers to general re-
adjustment is the tendency TO await
more favorable price conditions. In
the widest view. the nation Will
ultimately profit by selling now.
We may end our losses in an enter
prise for which we are not
equipped. and which no other gov
eminent has successfully under
taken. and the low prices at which
we must sell today will make a
lower actual investment with which
we deal in promoting permanent
service.
Experiment Has Been Costly.
lf"I were not deeply concerned
with the upbuilding OF our mer-
chant marine. / should neverthe-
less strongly urge Congress to
facilitate the disposal of the vast
tonnage acquired or constructed
In the great war emergency. The
experiment We have made has
been very costly. Much has been
learned. to be sure. but the out
standing lesson Is that the govern
ment cannot profitably manage our
merchant shipping. The most for
tunate changes in the personnel of
management would still leave us
struggling with a policy fundamen-
tally wrong and practically impos-
sibIe
Having failed at such enormou,
cost. bring you the proposaI
which eontemplates the return 20
individual initiative and private
enterprise. aided to a conservative
success. wherein we arc safeguard
.ed against the promotion of prt-
Nate greed. and do not discourage
the hope of profitable Investment
winch underlies all successful en-
deavor.
We have voiced our concern for
me good fortunes of agriculture,
arr II is right that we should. We
ha' long proclaimed our interest
in manufacturing. which IS thor
ougi ly sound. and helped to make
US v nat we are. In the evolution
OF railway transportation we have
revealed the vital Relationship ~
our rail transportation to both az
rlculture and commerce. We have
been eNpending for many years
large sums for deepened channels
and better harbors and improved
inland waterways. and much OF II
has found abundant return in en-
Iarged commerce. But we have ig-
nored our merchant marine. The
world war revealed our weakness.
our unpreparedness for defense in
war. our unreadiness for self-re-
lance in peace.
Once OutsaIIed World,
1t would seem as though transr,r-
ing events were combining to ad-
monish us not to fail now to rea,-
sert ourselves. In the romantic
days of wooden bulls and whitensd
sails and the sturdiest men OF the
sea nmfSaiInd
carried our own cargoes. revealed
our flag TO the marts OF the world
Up to the world war We were a
debtor nation. Our obIiratIons
were held largely by the maritime
powers. Apart from the ADVANTAGE,
IN carrying our commerce they
sought our shipments for the hal.
ances due TO them. There is a air
ferent condition now. They are CON
ccrned with shipments to us hu,
not so interested in our shipments
TO them. II is our high purpose 70
continue our exchanges both buy-
ing and selling. but we shall h.
surer of our selling. notably our
foodstuffs. II Te maintain facilities
for their transportation.
Contemporaneous with the awak-
eninE, we have the proposal to
carry our ocean-going facilities to
the great "unsalted seas" which
shall place the farms OF the upper
Mississippi valley on a marked wav
TO the marts of the old world. We
should fail to adjust our vision to
the possibilities IL we halted IN
making for American eminence on
the ocean highways now awaiting
our return.
We have recently Joined the
great naval powers in a program
which not only puts an end to cost