The Washington times., 1923-08-01
GET TRADE, THEN
|. FLEET, URGES
MERRILL
Merchant Marine Is Effect Not
Cause of Business, Says
Shipping Executive.
By JAMES *. POLLOCK,
Cosmopolitan News Service.

cosmopolitan News Service.
WILLIAMSTOWN. Mass. Aug.
1'-While asserting that the United
states should have within a few
years a large and important mer-
chant marine, r. T. Merrill. Of the
United States Shipping Board, who
is attending the Institute Of Politics,
said today that merchant marine
is the effect and not the cause of
foreign trade" and that to build
up a big merchant marine before
developing foreign markets was
llNe putting the cart before the
horse"
Merrill expressed the belief that
"hen foreign financing is increased
In response to natural economic
causes, healthy merchant marine
VIII develop as a natural conse-
quence.
"A merchant fleet comes after a
great foreign trade is built np."
he asserted. Perhaps nv views
are a bit hGreticaL bu. they at
least have back of them the ex-
per1ence OF nations and the eco.
nomic history of our own country.
CONSIDER the situation Of this coun.
try In 1879 end in 1923. IT, the
seventies there was a great rail-
ROAD boom, and the greater part of
the railroads that were built were
financed with British gold.
U. 3. Was Debtor Then.
AS natural consequence, most
or the rails that We're laid down
were Sheffield rails. England was
the great banker and ut the same
tlrle was the great carrier. This
country was a debtor nation, but
great exporting nation, and
under these circumstances, together
with a few artificial drawbacks we
could not expect to have a mer.
chant marine.
But now, in 1928, we are
creditor nation, and since the war
we have been forced by the huge
supply Of gold in this country to
take up foreign investments. This
favorable financial situation to.
gether with the fact that some of
our great industries are no longer
infants and are ready to compete
for the worlds markets, makes a
situation where 1t is natural for
merchant marine. In other words,
the merchant marine follows the
foreign trade, and is not the first
step.
Take one instance to illustrate
my statement. Mr.. Grace made
great investments in Chile in nj
trate' and soon afterwards built
his own ships to carry his products
to this country. The Standard Oil
Company, the United Fruit Com
pany, and the United States Steel
Corporation have done the same
thing, for they are not going to
miss a sale because of shipping
difficulties which they cannot con.
troll.
Shipping But One Item.
1T must be remembered that
shipping is only one item in for
eign trade. In the year 1920 I
believe there was exported from
this country about one billion dol
lars worth of steel The shipping
board has offered to sell their ten
million tons of shipping at $40
per ton. This figure for all the
American AFOREMENTIONED mer-
chant fleet, Is less than one-third
of one years export of steel This
demonstrated that foreign trade is
the first and most important item.
Again, it is often forgotten that
merchant fleet does not exist for
the navy, but rather the navy cx-
lists for the merchant fleet. It Is
true that in time Of war, the mer.
chant fleet assists the navy, but 1t
does not come into existence for
the sake OF the navy.
The navy has no reason for ex-
istence unless there Is a merchant
fleet to protect.
1t Is also true that our require
ment that all captains Of Ameri-
can vessels must be American citi-
zens Is somewhat of a hindrance.
But the La Toilette seamen's act
could be repealed tomorrow and it's
repeal would not add a ton to
american shipping and the same
is true with other artificial causes.
increased foreign investments
VIII naturally bring in increased
merchant marine"
FARMERS EEEn oN-HENT