Imperial Valley press., 1922-02-28
HARDING IN
APPEAL To
CONGRESS
Necessary for Second Line
OF Defense Says
President
is AGENCY FOR PEACE
Creation OF $125,OOO Fund
For Construction
Loan Urged
is AGENCY FOR PEACE
Bv RAYMOND CLAPpER

Onited IreSS Sta1f Correspondence
WASHINGTON, Feb. 28.--A great
American merchant marine is neces
sary as the second line of the nation s
naval defense, President Harding told
Congress today in appealing for ap-
proval of his ship subsidy program.
Such II merchant marine is also, he
added, the highest agency of peace and
it bears no threat and incites no sus-
piciOn.
President Harding incorporated an
his speech almost bodily the recon-
lnendations of the United States ship
ping board for q direct subsidy
amounting to about $30,000,000 q year
and calling for various indirect aids.
All these he asked Congress to ap-
prove.
Realizes Opposition
Recognizing the widespread opposi-
tion of agricultural interests to ship
subsidy, which has been II political
bugbear' for many years, President
Harding emphasized that shipping is no
more Il sectional interest than agricul-
ture or manufacturing and that all
sections of the country stood to gain
by Il thriving ocean commerce under
the American flag.
He commended the Great Lakes-St.
Lawrence waterway project as II broad
visiOned enterprise.
IIarding'S recommendations, sum
married., follows:
Creation of Il merchant marine fund
by diverting ten percent of all customs
receipts, netting about %32 100000 Il
year.
All tonnage taxes collected on both
foreign and American ships to be add
cd 10 the merchant marine funds.
Doubling tonnage taxes to yield
about $4,000,000 annually.
One half of all profits over ten per-
cent to be added to the merchant mar
inc fund
Creation of $125,OOO,OOO construc-
tion loan fund, to be loaned at two
percent for shipbuilding. 1
To Deduct From Taxes
Deductions from income taxes of
shippers an amount equal to five per-
cent Of freight on goods imported in
American ships to stimulate use of
American bottoms. More liberal depre-
citation allowances in income tax re-
turns on ships.
All income taxes to be waived when
the amount of such taxes is applied to
half the cost of new ship construction.
FIFTY percent of all migrants must
be carried in American ships.
Creation of merchant marine naval
reserve to the maximum number of
five thousand men and 10000 men EN-
ployed on merchant men receiving q
maximum total of pay from the navy
of $4,000, 900 a wear.
All government freight and passcng-
er traffic to be on American ships
where possible.
Army transport service to be turned
over to the shipping board.
COastwise trade laws to be extended
to the PHILIPPINE Islands, requiring
that all trade with the islands and the
United States be by American ships.
Preferential rail rates on through
shipments Of American ships.
Coordination of rail and water
transportatims, and development of
railroad owned steamship lines.
Only by means of subsidies can the
merchant marinc of the u. s. be made
great and the nation take the place
on the sea which it held in the early
days Of the republic
'Thc merchant marine is UNIVERSAL
ly recognized as the second line of
naval Defense" he declared.