Evening star., 1935-03-05
Shin Subsidy.

President Roosevelt mas gwen Nou-
gress excellent reasons for the main
tenance Of an adequate American
merchant marine. He has made
clear, also, to that body in his special
message on shipping the need OF
Government aid to the merchant
marine. And finally he has advocated
that the Government do openly and
frankly that which it has sought to
do by indirection-grant such aid to
American shipping.
Three reasons for the maintenance
of the merchant marine are given by
the President. The first Is that IN
time Of peace American ships are
needed to carry fair share Of Amer
ican commerce that might be discrim-
mated against by reason Of subsidies
and combines permitted by foreign
nations to their own shipping. The
second argument for an American
merchant marine is found in a con-
dition which arose when the World
War began in 1914 and which could
easily arise again In the event of an
other conflict in which the United
States was not engaged. American
merchandise sought in vain for ships
to transport II overseas. and may do
so again If there are no American
ships. The third reason for the MAIN
tenance Of q merchant marine Is
found in time Of war to which this
country Is q party. Ships are then
needed for national defense purposes,
as auxiliaries for the Navy, as trans
ports for American military forces
and for the shipment Of supplies and
Of American goods.
Because Of the opposition which has
arisen in this country, and particu-
larly in the interior Of the country,
to subsidies" for shipping, it has been
impossible to deal honestly with this
question Of the merchant marine.
Therefore Congress has since the
World War undertaken to grant Gov
ernment aid to American shipping
through loans to ship companies and
through excessive payments for carry.
ing the mails. President Roosevelt
proposes to Congress that this kind
Of subterfuge be cast aside and that
direct subsidies be granted American
shipping. Why not?
The late President Harding, almost
Immediately following the World
War, sought to have the Congress put
through a ship subsidy bill. He
failed, largely because of the opposi-
ton of the Representatives from the
interior sections of the country, who
saw in the proposition only Govern
ment expenditures to benefit the sea-
coast States. They were too short
sighted, apparently, to realize the
benefits which accrue to the entire
Nation through an adequate merchant
marine. Whether the present pro-
posal Of President Roosevelt will fare
better remains to be seen. In the
light Of the hundreds of millions of
dollars which the farmers are receiv-
ing in subsidies of one kind or an
other from the Government today,
the opposition to such Government
aid to shipping may not be so pro-
nounced.
An American merchant marine Is
an American tradition, coming down
from the earliest days Of this coun-
try. American ships carried the
American nag and American COM
merce to the seven seas for years.
Gradually, however, American thought
and industry turned to the interior
development Of the Nation, and the
carrying business was allowed to slip
into the hands Of foreign nations.
Now when the Nation again becomes
ship minded 1t is found that the
building Of ships costs less In other
maritime nations, that their oper-
alton costs less because of the Ameri-
can laws relating to crews and wages.
It is found, too, that other nations
are subsidizing their shipping so as to
give them advantages in competition
for the carrying trade. Under all the
circumstances, Government aid to