The Seward gateway., 1923-01-04
SUBSIDIES

AS an amendmenL to the penulue shipping bill, Senator Brooknart, or Iowa. this week proposed that subsi- dies be granted to American 'produc- CTS" both industrial and agricultural. Dispatches do not make clear whether he defined the producers whom he would aid from the federal treasury, but it is evident at least that he had the farmers in mind as the second half of the amendment.
 Brookhart was an ultra-radical re- publican, or rather an utra-radical el- ected on the republican ticket. He won by a strapping majority in Iowa. He is a farmer himself and he played on the farmers misfortunes in his campaign. He played to win and did win.
 As a principle, the American peo- ple have not cottoned much to the subsidy idea. Their policy has been to protect American industries from foreign invasion, where such prorec- ton is needed but not to grari any specific subventions. The principal ar gument against the administration shipping bill-the one which is being used with greatest effect by Lafolletre and others of the radical bloc-is that it violates the anti-subsidy policy Of the country They argue that the plan is to take money from the treasury 10 promote the interests of the ship owners. The administration counters that condition and not a theory is faced-that we are losing money now at the rate of $50 100000 a year, whereas if the merchant fleet were to be subsidized in private hands at most be would disburse only about s30.000.- 800 a year, while we would stimulate merchant shipping, be able to sell ou1' government-owned fleet at something like it's real value and place it in such position that within a decade it prob ably could not only make a reasonable profit, but pay back what the govern ment has advanced in loans.
 Notwithstanding that this program sounds like good business, there is no certainty that the bill can be passed because of the widespread opposi ton, played upon by its opponents, that private interests should look af- ter themselves without bringing into the government a policy of paternal- ism.
 The subsidy idea is involved large ly in the practice of the government in extending credits and loans to far mers. During the past two years sever- al hundred million dollars have been advanced for the relief of sections in hard straits. The revived war finance corporation has made these loans and through them thousands of farmers have been tided over serious financial difficulties. Because of the low price of farm products additional aid will have to be given and better credit machinery will have to be set up. The government now is struggling with the problem, but it is trying to avoid straight subsidies wherever possible, realizing that they constitute only an expedient. The president throughout his term has advocated strong CO., operative marketing organizations as the ultimate solution. of the problem and it is evident that his suggestion is favorably received in farming com munities.
 Paternalistic government, whether it applies to shipping interests or farm CTS. is an anochronism; and while the subsidy theory must be accepted in one form or another under certain cir cumstances, it cannot be regarded as other than a temporary elief measure.