Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-11-10
ABOUT OUR MERCHANT MARINE

i al -SStlHS pSoPiC nav AoAS SP
.preciated the need of a merchant
marine transporting our products
Under the American flag. They
have also recognized the desirability
. Of closer trade relations with the
: countries of South America, the
products Of which we use in large
Quantities but to which we do not
sell the quantities We Should, not
having established the best facilities
. Tor credit in those countries and not
making adequate attempt to meet
the competition of the European
countries. Germany, Italy, France
and England, that have resident
representatives, banking affiliations
and every facility for securing and
handling the South American trade.
: When the war was on, this coun-
try had an advantage. What the
South American countries could not
buy abroad they turned to us for.
This was not due to our enterprise
but to the conditions. Notwith-
standing our merchants made COM
paratively little effort to make the
most out of the situation an i'm
provement was noticeable. There
came along with this, as always
comes along with honorable BUSINESS
relations, better understanding and
increased appreciation of our prod
ucts. Further contribution to good
feeling was the generous attitude
shown toward Columbia under the
Harding administration. But are we
, making the best of these favorable
conditions? 1t has been said that
the American Shipping Board by
means of the Government owned
vessels are formidable competitors
Of the privately owned lines COM
. ing into competition because their
. continuance doesn't necessarily de-
pend on profits. as is the case of
those owned by private enterprise.
Presumably. largely as a result of
this, The American Marine Confer
"sence passed resolutions calling upon
the Shipping Board to get out of
business.
This conference.-the aSsociat ton
as we recall has not always favored
Herbert Hoover's views-listened to
an address from him, Thursday, and
it is interesting to note what he had
to say. In the beginning he re-
marked that it simply is truism to
hat CT eric IN
Overseas Marine. We did not have
that to any degree of consequence
prior to the war, though he did not
remark on this. 1t was then we
learned the great need of it, from
which we have not as yet really
profited. He did not ask them what
they would or could do to that end.
He emphasized the fact which is
patent to all, that I'VE must have our
own ships for the protection of our
foreign trade; that We must have
ships if we would expand our ex-
ports on sound lines and must have
them as an auxiliary to our national
defense" He dwelt on the need of
sure us against combinations in
rates, on the experience merchants
have had with competitors taking
advantage to learn the details Of our
trade in foreign bottoms.
''To-day there are many COM
modities upon which We are de-
pendent by import from foreign
lands in which there are combina-
lions in control of price in those
foreign lands" MIR. Hoover con-
tinued: Combinations in control OF
sea rates are the commonest thing in
the world shipping fabric. Many OF
our raw material exports, such as
wheat, are sold in the world market
in competition with those Of other
countries and the price level in these
cases Is the result of competitive
streams that flow into these world
markets. In wheat the farmers
return is fundamentally the price
which he receives at Liverpool less
the cost of transportation and handl-
ing. Therefore, any increase in ship.
ping rates is in fact deduction
from the price to the farmer. 1t Ii
just as important to him to be-
guaranteed reasonable rates of sea
transport as of land freight. The
real security is an American owned
Merchant Marine, In the long view
the expansion of our foreign trade
must take place in the export oil
larger proportions of manufactured
goods The primary requisite fol
such expansion is the assurance o.
regularity In transportation. -
I'VE will never have a real Ameri.
can Merchant Marine until We have
much larger complement of mer.
Quoting our commerce in foreign
ports. Our raw materials are largel,
sold at our shores to foreign mer.
chants. They dictate the shipping
Again most of our purchases of raw
materials are for delivery at Oul
shores: The foreign merchant agar
controls the shipping. = -
the situation Is just as insecure
Tor our exports as for our shipping
# we would make sure of the con.
tinuous flow of good we mush havs
the American on the ground dis.
tributing to the foreign retailer
securing business by his services a:
well as his price. Many an American
merchant has seen his establishes
trade disappear because he depended
upon foreign merchantmen to SHOW
- patriotism to his own country. Thi.
situation has been contributed to b,
the tendency of some of our manu-
u Iacturers to regard export as a han
py hunting ground in times of do
- mestic depression, to be abandoned
times OF domestic demand. ",
cannot have q Merchant Marin,
without IN army Of American mer
chants IN foreign ports. This is tn,
$ounqauon Ct our British com,
we are asking our people to ex,
NRs.rs@ss 41smeslyes in order to sci