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the sword and cemented by blood, this conception of an invisible kingdom of truth seemed but the baseless vision of a religious enthusiast. But, though he lacked moral, he did not lack political, penetration. It was clear that this Galilean rabbi was no rival to the Cæsars. The suspicions which he had from the first entertained of the motives of his old-time enemies were confirmed, and from this brief interview he returned to the accusers of Jesus to announce his judgment of acquittal. Then commenced the battle which waged for certainly an hour or more.

Consider the three figures in this battle. First, the priesthood: resolute, earnest, determined, clamorous, inciting the gathering mob, in order that they might wrest from the unwilling judge the condemnation which they could not expect from his conscience or his reason. Second, the prisoner; no pen can venture to picture him-calm, unmoved, silent, interposing to the false accusations nothing but a solemn and witnessing silence. Third, Pilate: a Roman; who believed neither in God nor in immortality; whose moral sense had in it no religious inspiration; whose only support in an hour of trial was that sense of honor so much vaunted and so feeble; who would have resented with wrathful indignation the charge of cowardice, and yet who proved himself a coward in an hour that tried his courage. He endeavors by various devices to appeal to the sympathies of a mob that have no sympathies. One thing he does not do. He does not say to that gathering mob: "Though the heavens fall, justice shall be done. Though he that

stands before me is but a weak enthusi- a divine law, Vox Populi; Vox Dei.? ast, without friends, though his execu- Whoever in political life consents to be tion can do no harm and his deliverance a partner in putting into effect the pasmay do much injury, still I will do jus- sions and prejudices of the crowd, or by tice, come what may." And when, at public act justifies their action which in last, the priests cry out in feigned in. his own conscience he condemns, or puts dignation, “If thou let this man go thou his own safety or the safety of others art not Cæsar's friend," and he foresees or the preservation of peace above doing his own office taken from him by the justly, repeats the sin of Pilate. Nor is most jealous of the Cæsars, he yields it only in political life that Pilate is to the mob and Christ is led away to be

The broader lesson of this partcrucified.

ner in the crime of the crucifixion my

father has stated with characteristic "To do a great right do a little plainness of speech: wrong." If there ever were a case in "Very few men ever think of comparwhich this principle might be invoked ing themselves with Pontius Pilate, or to justify an act of injustice, Pilate with the soldiers who executed his ormight have invoked it. In order to save ders, when perhaps there are not any. the life of one whom he regarded as a where in the Bible delineations of charharmless enthusiast he would have had acter which might be more universally to hazard the lives of a score or more of appropriated than these. Neither of Roman soldiers, imperil the peace and them had any special hatred for thie order of the entire community, and per- Saviour. Pilate would have done his haps sacrifice his own office. Was it duty if he could have done it by any worth so great a cost to do justice to a common sacrifice; but, like multitudes, single man? Safety for himself, for the probably, who will read this examinasoldiers under his command, for the tion of his character, he was not willirg community which he was appointed to to make the sacrifice that was necessary protect, all seemed to call for Pilate's in taking the right side. The reader judgment: “I do not condemn him; but fluctuates, perhaps, just as he did, betake him and execute your own sentence tween conscience and temptation, yieldupon him."

ing more and more to sin, and finding Are there no Pilates in America? no the struggle more hopeless the longer it mien who have no other standards of is continued. A religious book, an right and wrong than the consequences afflictive or a warning providence, or u which they can foresee from a proposed hour of solitude, quickens conscience course of action? no men who have been and renews combat; but the world turned from the straight path by public comes in with its clamors, and, after a clamor? no danger that we shall bow to feeble resistance, he gives way again the will of the crowd despite the pro- Pilate exactly, in everything but the tests of our conscience? no tendency to mere form in which the qe on of duty write across the sky, as though it were comes before him."

ORDER AT STAKE IN INDIA

SPECIAL CORRESPONDENCE BY P. W. WILSON

N

TOT since the Mutiny has India a Jew, not even as a convert to Chris- pressed by Lord Reading, there are two

been confronted by a crisis so tianity, but as a Jingo who made Queen , views even among Montagu's Liberal

serious and uncertain as "the Victoria an Empress in Asia. Montagu, comrades. Disciples of Gladstone, who show down" which is challenged to-day. on the other hand, is a Liberal, trained wanted Turkey to be driven bag and In the ordinary course of nature, coali.' as Asquith's private secretary, and at baggage out of Europe and delivered his tions, even when led by Lloyd George, the first blunder he fell at a blow. His last oration on Armenia, will find it difficome to an end, but few were so pessi. departure weakens Liberalism in the cult to believe, especially after Bryce's mistic as to anticipate that dissensions Cabinet. But it is doubtful whether he report on the Near Eastern massacres, in Downing Street would extend from has helped himself or hurt the Prime that Lord Curzon, of all men, who as Ireland and the reform of the House of Minister by his embittered apologiu. It Viceroy in Calcutta so carefully cultiLords to the illimitable battle-ground of may be true that, under Lloyd George, vated the Moslems even at the expense an aroused Asia. There could not have many graver improprieties have OC

of the Hindus, is now, as Foreign Secre. been a worse moment or a more perilous curred than the publication of Lord tary, indifferent to Moslem sentiment, topic for Ministerial differences in Lon- Reading's opinion of Turkey without merely because he does not outbid don, and if politics be now played, it'the consent of the Cabinet. But, on the France in her bargain with Kemal. will be playing with fire.

other hand, if Lloyd George unmade Imagine what might be Lloyd George's First, we have the dismissal of E. S. Montagu, it was Lloyd George who first rejoinder. Do not the Mohammedans in Montagu, Secretary of State for India in made him a figure in history. And, in India, so he might ask, enjoy full liberty London. One factor in his situation is any event, the issues involved far tran- of worship, and even of marriage-a that, like his cousin, Sir Herbert Sam- · scend the wounded feelings of a politi- liberty more complete in domestic matuel, in Palestine, and the Viceroy of cian somewhat roughly displaced. The ters than the laws obeyed in the United India himself, he is a Jew, and it has very emergency will tend to rally the States by the Mormons? When the Sulnever pleased the Tory Die Hards of the nation to the man at the helm. If there tan of Turkey ruled over Christians, “Morning Post" that Imperial responsi- is really to be rebellion in India, Britain why did he not grant the same religious bilities so vast should be so intrusted. will be one unit.

equality? With the Moplas in Malabar After all, Disraeli won his place, not as On the claims of Islam, so vigorously making Moslems by massacre and muti. lation, are the Greeks in Thrace, are the Armenians, are the pilgrims who throng the birthplace of Christ at Bethlehem, are the Arabians, to be handed back once more to Ottoman misrule? This is not Indian Nationalism; it is Pan-Islam. In Tripoli and Morocco there are the echoes even to-day of conquest by the sword. And Europe cannot surrender her statesmanship to the Prophet.

If Montagu had based his challenge on the arrest of Gandhi, he might have found himself on stronger ground among Liberals. For the law to touch one who has been compared with the Christ is an ominous act that requires justification. Has not Gandhi opposed caste? Has he not restrained the violent? Has he not done penance for disorders? Is he not poor and of a blameless life? Will he not fast in prison, like Terence MacSwiney, and die a martyr? The answer of the British Government would be that Gandhi's influence has been welcomed as long as he preached social reform and

a common citizenship in India. But
when he is compared with the Christ, it
must be remembered that even under
the Roman Empire the Christ never in-
sisted upon non-co-operation, but, on the
contrary, set himself to feed the people
and to heal them, which are the very
tasks undertaken by Westerners in In-
dia when they deal with plague and
famine and disease. In declaring that
the established Government is wholly an
evil thing, even as carried on by Indians
themselves, Gandhi cannot escape re-
sponsibility for the effects of his own
language. He denounces; others strike.
And his name has been openly used as
a plea for attacks on Europeans, women
as well as men, and even on mission-
aries. No native prince would permit
Gandhi to reside within his territory.
Such men as he quickly disappear.

The arrest of Zaiglull in Egypt came
as a relief to the community. It is by
no means certain that the reaction on
Gandhi will be otherwise. India has
now her Parliamentary system. Her

ablest citizens are seeking patiently to solve her problems. Yet their efforts are stultified by a constant succession of strikes, boycotts, and attacks on life and property. The official demand of the extremists in the United States is that this country shall supply arms for a revolution in India and call upon the British navy to allow their importation. Even Gandhi admits that his movement means "seas of blood." The opinion of Sir Pertab Singh, himself a Moslem, is that if Britain withdraws from India there will not be a virgin or a gold piece between Calcutta and Peshawur. Disarmı the Government and arm the crowds, and this must happen. Sir Henry Raw. linson, the Commander-in-Chief, has therefore insisted on the importance of the army.

But the use of force is not enough, and it is to be hoped that Lord Derby, or whoever succeeds Mr. Montagu, will resolutely persist also in the development of representative institutions and in broadening the work of education.

FINISHING BEFORE IT BEGINS

SPECIAL CORRESPONDENCE FROM EUROPE

BY WILLIAM C. GREGG

E

see

UROPE looks bad. A manager of a large American banking com

pany said to-day, “Things are getting worse."

The franc and pound are advancing in value-probably as the result of Germany buying exchange to make a few payments of about seven million dollars each, ten days apart.

In the last two weeks the dollar has dropped ten per cent in purchasing power. Prices have not changed. The American tourist is not happy about it.

The fog over Genoa has lifted a little. We now an indefinite Conference delay and trouble about admitting Russia.'

Lenine and Trotsky are leading members of the Executive Committee of the Third Internationale. This Committee recently sent out appeals to radicals to foment revolution in the armies and navies of all countries. It is hard to see how these countries can work up much enthusiasm about sitting around the same table with the Bolshevik.

Many speeches and interviews are coming from the Russian radicals now. They have much to say about the strength of their army of two million men. They warn others to be on their good behavior at Genoa. They have no word of thanks for food and transportation from outside to save the starving from the sins of the Soviets. At the first gesture of world willingness to help them at Genoa they sneer and brag.

The proposed economic conference her wealth as a basis for foreign loans. with its thirty-odd nations, including (4) Incomes from national industries Germany and Russia, will rrobably be (tobacco monopolies, railway revenues, the antithesis of the Washington Con- etc.) which are now used for national ference in every way, beginning the con- revenues, cannot be pledged for internatrast by probably never happening.

tional loans; that is, Austria cannot It has all the elements to make up pledge the revenues of her street raila rough-and-tumble fight. It has none ways for foreign loans (although she of the elements of cohesion to a con- may be doing it), because she must keep clusion.

such revenues to live on. At Washington we found a small To follow this line of thought suggests board of directors called together to vote that the Conference is finished before themselves dividends. The programme it is begun. But we are overlooking one of the chairman went through with possible feature of the meeting at Genoa cheers. Mr. Balfour said, in substance, of considerable importance-its political “Now that the German fleet is destroyed, possibilities. If Mr. Poincaré remains disarmament is delightful."

Premier of France, I do not think it will At Genoa the first thing heard from be possible for the old political hacks to the chairman will be, "Every nation keep the Conference alive only for their must balance its budget." What a possible personal prestige. Lloyd George merry “Ha! ha!” that will create. Then is charged by his English opponents from thirty-odd throats will come, with planning the Genoa Conference to "How?" With this splendid start, they carry the British elections this fall. I will never get down to the answering do not know about that; but we must details. There will be committees ap- remember the recognition he gave Ruspointed and many reports made. Will sia a year ago. England made a trade any be unanimous? We can hardly agreement with the Bolshevik Krassin, imagine it.

who spent several weeks in London. If the Conference formulates a pro- The trade agreement was demanded by gramme, it will only be reported to each the labor element in England. Perhaps respective country for its consideration. it did no harm. Little came of it, be Each country has already been consider- cause the Russians had no money or ing the only conclusions that can be goods for a trade. There was no reason reached: (1) Expenses must be reduced why as intelligent a man as Lloyd to income. (2) No loans will avail be- George should go into it except for some tween bankrupts. (3) No securities can such reason as politics. be pledged internationally which cannot Europe, willingly or unwillingly, is be reached for national taxes; that is, running behind. Every country has a if Germany cannot tax the wealth of her deficit. No one has worked a miracle business men, there is no use pledging by which deficits can be stopped. You and I know the only way-quit spending. You will say that Europe must reduce her armies.

1 This

was written some time before the American Government declined the invitation to (ienoa. Later events have confirmed Mr. Gregg's words. --The Editors,

Now listen, brother; those armies that are dangerous to-day won't disband. Russia and Ireland are still belligerent. America doesn't want France to disband. Why? Because if she does, we may have to come back and police Europe ourselves; or at least help settle matters which we put in France's hands when we left.

But can't France reduce?

She is doing it--perhaps too fast for world safety.

The most foolish thing America and England can do is to tire France out by nagging her, resulting in her saying: "Perhaps you are right. I am very tired. I will disarm and rest." Better far to back her up in every reasonable measure she takes to furnish a center of control, a police headquarters in a bad neighborhood.

Deficits can be disbanded by discharging the hordes of surplus office-holders and employees. To do that in several countries is a harder problem than to disband armies. Public improvements can be stopped. That will create unemployment. The problem is enormous and cannot be solved by a Genoa Con. ference; but the necessities can be emphasized. Let us hope for that much.

Paris, France,
February 24, 1922.

SHIP SUBSIDIES

I---ALL DRESSED UP AND NO PLACE TO GO

BY FREDERICK H. CHASE

NCLE SAM has a stately fleet of obviously, but two methods of opera- that openly advocated and used the sub

merchant ships, "all dressed up tion: the payment of subsidies or Gov- sidy idea, including mail, construction I and no place to go," while cable ernment ownership and operation. Be- and navigation subsidies, and fisheries reports state that the British Cunard fore the war seventeen of the great bounties. Line is about to begin the construction nations of the world were either wholly Holland paid liberal subsidies for carof 100,000 tons of new shipping, and is or in part committed to the former, while rying her mails at a given rate per voyalso about to revive services discontin. the latter was an untried experiment. age, and this practical little nation ued on account of the war. The great Great Britain, as the leading ocean ranked eighth among the maritime naShipping Ball is on, and our ships are carrying nation, hid her subsidies under tions of the world. wallflowers. What prevents them from the title of "subventions," conveying the Austria-Hungary subsidized mail getting into the swirl of world trade? impression that she did not believe in boats, paid construction and navigation

This question is answered by those the former. She subsidized mail-carry. bounties, and refunded Suez Canal tolls, who claim that competitors would not ing and other steamers built in accord- while Hungary paid a direct bounty to accept our ships as a gift if compelled ance with Admiralty plans for quick Hungarian ships. to operate them under American laws-- conversion into auxiliary cruisers in Italy and Spain subsidized mail boats laws which impose excessive operating time of war, and from 1840, which was and paid construction and navigation costs, which in turn demand high freight approximately the time when our ship- bounties, while Portugal cloaked her rates and leave us with idle ships. ping had begun to disappear, up to 1900 subsidies under the guise of "mail sub

Any foreign sailor will admit that the she expended $283,000,000 on various ventions” to steamship companies. food, quarters, and pay are better on subsidies. When the Lusitania and the Norway and Sweden made both conAmerican ships; and yet the La Follette Mauretania were built by the Cunard tributions and loans to steamship comSeaman's Bill, no matter how good its Line to take the speed record from the panies, and Norway, in addition, granted intentions, only increased the cost of German liners, the British Government trade subsidies. Denmark's subsidies operation, without providing any means loaned the money on terms which made took the form of trade subsidies and of meeting the increase. it practically an outright gift.

exemption from harbor dues. The La Follette Bill further requires Most of England's colonies granted di- Russia paid mail and mileage subsithat seventy-five per cent of the crew in rect subsidies, and did not circumvent dies and assisted with Government each department must be able to under- the act by “subventions."

loans. She also granted direct steamstand orders in the language of the offi- Canada granted mail and steamship ship subsidies and refunded Suez Canal cers, and that an average of fifty per subsidies, and also paid fisheries boun- tolls. cent of the crew shall be rated as able ties. A line of boats plying between Japan extended direct state aid to seamen. As a contrast with these re- Montreal and Africa received $5,000 per steamship companies, granted mail subquirements, when an English ship ar- boat each trip from both terminal coun- sidies, paid coast, navigation, and fisherrives from the Orient her crew is com- tries, and yet an average of seventy per ies bounties. Even China granted state posed mainly of Chinese coolies, while cent of the freight shipped from this aid to steamship companies and subsiAfrican ships, even to oilers and fire- end was American made or grown. Can- dized her shipyards. men, are manned principally by African ada believed in carrying Canadian goods Chile allowed mail subsidies, and Negroes. No American seaman would in Canadian ships. She did not worry Brazil and Argentina have even subsisubmit to such food, quarters, and pay over this subsidy to deliver American dized foreign steamship companies. as are provided for such crews, which goods. Her foreign trade was growing, Uncle Sam subsidized a few mail. are recruited from the cheapest ranks and would some day require the entire carrying ships, but the great bulk of our of labor on earth. Real Americans will cargo space of her ships. In the mean- enormous foreign mail and commerce not expect him to do so, or be willing time Uncle Sam's freight bills were a was carried in foreign bottoms. that foreign crews should man our ships. big help in the cost of operation.

In 1826, when our shipping reached In times of trouble, like the recent Germany paid mail and other steam- its maximum strength, our vessels carWorld War, we want the feeling of se- ship subsidies, besides granting to her ried 95 per cent of our imports, and curity which comes from the knowledge shipyards preferential rates on her Gov- 89.6 per cent of our exports. Until 1830 that our ships' crews are Americans. ernment-owned railway for ship-building the American ship-owner had the advan

If it is fair to conclude that we want materials. When she first entered the tage of preferential duties. our great fleet of vessels to become a ocean carrying trade, she bought ships. In

1861

foreign commerce permanent American Merchant Marine, In a few years she competed with the amounted to $508,864,375, with manned by Americans working happily world in building them.

American tonnage of 2,496,894 tons. under American conditions, there are, France was one of the few countries In 1905 our foreign commerce had

our

an

I"

,

as

increased to $2,636,074,737, while our

abolish our Post Office Department when ship tonnage had decreased to 943,750

it shows a deficiency? tons.

Our foreign commerce is a rich prize We have seen that the leading na

for the carrying nations of the world. tions of the world believe in and prac

The great international game of chess is tice the granting of subsidies in one

on, and our opponents will try to check form or another.

every move we make. Even with our Under our present tariff system, the

great tonnage of new ships, backed Government grants a "regular, allow

either by subsidies or Government op ance" to our manufacturers and farmers

eration, can we hold our own in the as a protection against foreign pro

game? In a commercial sense, it has ducers, which "allowance" is supposed

been many long years since American to be reflected in the higher rate of

ships enjoyed “the freedom of the seas.” wages paid to American labor. A higher

Prior to the war the ocean trade of cost to the consumer naturally follows,

the world was controlled by the lines of making each one of us a supporter of

a few nations through verbal and writ. this subsidy.

ten agreements, the former known as Subsidy bills have been defeated in

conferences. By these lines the high seas Congress on the ground that they gave

were arbitrarily divided into a Mediterdirect grants to “special interests." The

ranean, a Continental, a North Atlantic, National Association of Manufacturers

and various other Conferences, each is certainly a pretty healthy combina

mutually pledged not to encroach on the

Photo by Fred II. Rindge, Jr. tion of "special interests," and is keenly

waters of the others. on the job whenever Congress proposes

Six German lines formed an organiza. to tinker with its tariff subsidy.

T isn't often that E. V. Lucas ap

tion known as the Syndikats Rhederer, When our transcontinental railways

pears in the role of an indignant which maintained four small steamers were building, the Government encour- citizen. His whimsical observations ready at all times to crush rivals by aged them with liberal land grants- on men and manners have accus- sailing from the same port at the same land belonging to the people, now worth

tomed the public to think of him as time and cutting rates. an enormous money equivalent and con

a keen but sympathetic observer of

In South America control by England stituting a direct "gratuity."

the world and his wife.

and Germany was made effective through We expend millions annually to im

In his article on the Spanish bull

a system of rebates on all goods shipped prove our rivers and harbors, and subsi

by their lines. American ships found it

fight, which will appear in an early dize the users of the same by exacting

difficult to secure a return cargo from

issue of The Outlook, he has drawn no tolls. This is also true of our inland

South American ports. The English and canals.

the glove from his hand. But his

German lines paid the rebates at the end The Agricultural Bill usually calls for ungloved hand wields bis pen

of the year, and for one offense in shipmillions of dollars each year, and money skillfully as when it writes in a less ping on an American vessel the shipper is freely appropriated when the South trenchant nood. For vigorous de- would lose all accumulated rebates. faces the cotton-boll weevil, when the scription, vividness of utterance, and The English and German Conference West must fight the cattle tick, or some narrative power we commend to all

lines also maintained service between other section the hoof-and-mouth dis

our readers his forthcoming article:

South America and Europe, and under ease.

the same rebate agreement. A South A prominent Indiana banker once told

WHENEVER I SEE

American shipper would lose all accrued me that he didn't care what nation car

European rebates by shipping one ried our commerce as long as it was

A GRAY HORSE

America-bound cargo in an American carried. He is but one example of why

bottom. This was a pretty hard nut for we lack the necessary "pull together"

us to crack, for, while we might prohibit spirit. Too much take, and too little

rebating on all ships entering our ports, give.

Fisheries bounties made Gloucester, the English and German lines could Free raw materials is a special privi. Massachusetts, the fishing port of the hold the carrying trade between South lege or subsidy to those manufacturers New World and furnished the hardy America and the United States by needing such materials.

sailors for our early merchant ships and doubling the rebates on shipments from Churches and other religious institu- navy.

South America to Europe. tions, when exempt from taxation, enjoy Our merchant marine seems to be The captains and deck officers of for. a subsidy, and we all help pay it about the only exception to the general eign carriers are naturally partial to the whether or not we approve of the ex- rule of granting subsidies, bounties, or interests of their own countries, and are emption. One-seventh of New York gratuities to privileged properties, pro- trained to promote the market for home City's real estate pays no taxes, without prietors, or persons.

goods. asking grace of the other six-sevenths. There is considerable to be said in Finally, we must consider the relative

Cheap Government water for irriga- favor of Government ownership and cost of building ships here and abroad. tion purposes, as an inducement to set- operation, but we must bear in mind If Uncle Sam elects to stay in the ship tle on arid lands, is a direct subsidy, that on the ocean we are competing with ping game as owner and operator, he bounty, or gratuity. The Homestead every maritime nation of the world—a can't expect to charge higher freight Laws, which gave away our public lands competition much more complex and rates than his foreign competitors in for little or nothing, were the applica- exacting than that between domestic order to justify the excessive cost of tion of the subsidy on a tremendous utilities, and perhaps requiring the building. Unless he can reduce these scale, and resulted in the phenomenal initiative and vision of private operators excessive costs, the difference will have growth and development of what are financially interested in the ships; how- to be charged off against preparedness now our great grain-growing States. ever, we score a point for Government or the public welfare or something else.

Mail subsidies, or subventions, ownership if we divest our minds of Commercial sea power is the great some call them, are nothing but direct the opinion that all Government enter- prize of the world to-day. It was early subsidies. If the amount paid is in ex- prises must show a profit. The Public won by the prowess of American ships, cess of the regular rate on so much Health, the Revenue Cutter, and the and then surrendered with hardly a freight, it becomes a gratuity or grant Life-Saving Services are indispensable, struggle. to a “special interest."

and yet yield no profits, Should we For many years following the coming

[graphic]

as

of the steel screw-propelled ship we of American ships, maintain a large We must have a sufficient foreign marseem to have lost sight of the fact that number of shipyards on repairs alone, ket to absorb our surplus production, the day would come when our virgin re- especially stimulate the iron and steel and there will never be any certainty of sources would develop far beyond local trades and all other trades allied to our getting it as long as we depend on consumption, and that we would become ‘ship-building, employ thousands of the other fellow to deliver our goods; an export nation on a scale undreamed American sailors whose wages would furthermore, American ships should of. A few years ago ex-Secretary of the support American homes, and, finally make every dollar to be made in deliverTreasury McAdoo stated that $300,000,- and of most vital moment to our own ing this surplus and bring to American 000 annually was paid to foreign steam- internal peace, American ships would be producers the colossal advertising value ships for carrying our commerce. This a big factor in insuring regularity of of sending the Stars and Stripes into all sum ought to support a magnificent fleet employment in American industry. the ports of the world.

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A

MEASURE is now pending under which a substantial appropriation

is to be made from the Treasury --that is to say, by the taxpayers--to provide a subsidy for the maintenance and the development of American shipping.

Those who are believers in the importance of freedom of trade among the nations, on ethical as well as on economic grounds, may properly object to any use of the money of the taxpayers for the promotion of one business interest or another.

If there is to be any contribution from the taxpayers for the support of an individual business interest, or of a group of such interests, free-traders for the most part take the position that a subsidy is the least objectionable form for such contribution. A subsidy makes provision for a specified payment, the amount of which payment is a matter of public record. The taxpayer is in a position to know what is to be the payment from his own pocket and for what the money is to be utilized.

We hold, however, that the burden of proof rests very decidedly upon the business concerns, or groups of concerns, which make application for such support from the Treasury—that is to say, from the taxpayers—to show that their industry is absolutely essential for the safety, or at least for the welfare, of the Nation, and to prove further that such industry cannot be established, or cannot be maintained, without help froin the taxpayers.

It is possible to believe that there are certain industries (the number of these is, in my opinion, at best restricted) which may be called "essential" for the welfare, or possibly for the safety, of the State.

I have suggested, looking at the mat. ter from the point of view of a free. trader, that the concerns, or groups of concerns, which are carrying on such industries, or which want to establish such industries, should be called upon to go before a commission (a commission which should be entirely outside of politics) and submit proof that must be accepted by the commission as adequate, first, as to the importance of their industry or its necessity for the safety, or

at least for the welfare, of the State, sufficient to cover the ordinary business and further proof that the industry can- risks, say fifteen per cent, should, as was not be maintained, or possibly cannot be done in the case of the war industries established, without help from the referred to, be paid into the National State that is to say, from the tax- Treasury. payers. They should then be called Further, irrespective of the term for upon to state what amount of co-opera- which the subvention had been given, tion or support from the taxpayers will the managers of these industries would be required to put their industry on an be at liberty, whenever they wanted to assured foundation and to enable its free themselves from the Government operations to be carried on. The com- inspection of their books and from the mission having accepted the view, after necessity of paying over excess profits examining the evidence, that the indus- or proceeds beyond a certain fixed rate, try is to be classed as "essential," and to resign the subvention and to give up having arrived at an estimate of the or get rid of the inspection and the pay. amount of the subvention required,

ment of excess profits. would recommend the payment from the The schedule of the assisted indus. Treasury of the amount decided to be tries should be a matter of public recnecessary-say, five million dollars or ord. Every citizen would be in a positen million dollars.

tion to know what manufacturers or The amount so paid would be a mat- producers throughout the country had ter of public record. The taxpayer taken the position that they could not would know which were the industries carry on their business without help that were securing in this way the help from their fellow-citizens. of the taxpayers. Every citizen could Payments of this kind, which are a know what the money was being used

matter of public record, payments to for.

be classed as subsidies or subventions, We consider that a subsidy, made a are, in my judgment, infinitely pref. matter of public record, is very much erable to the hidden assistance in the preferable to assistance given in the form of tariff duties, because, while they form of a tariff or duty. A voter very do constitute a burden upon all of the seldom can know what amount the coun- consumers and upon all of the taxpayers try is called upon to pay, and in the in the country, the precise extent of the end the individual citizen is under the burden or the amount secured by one necessity of paying, for assistance given favored trade or another can be known. to an industry in the form of a tariff. The makers of the tariffs do not inProvisions in the tariff are, in fact, not tend that the extent of the tariff burinfrequently framed so as to make suci

dens should be known. knowledge difficult to understand. The If the interests that are now pressing amount of the contribution is hidden, for a ship subsidy can make clear to the and is meant to be hidden.

members of an impartial convention A commission, under my suggestion, that such subsidy is "essential,” that would recommend that the subvention the ship-carrying trade is essential for should be limited to a term of years-- the welfare of the Nation, and that say a period of five years—which might, Americans cannot conduct this business with sufficient evidence presented as to without aid from the Treasury (i. P., the necessity or advisability of such ac- the taxpayers), and if a subsidy is made tion, very probably be renewed for a for a limited time, subject to the condifurther term.

tions above proposed, I, as a free-trader, During the years in which a business would not be prepared to oppose the was receiving this help from the tax- measure. payers the accounts should be open for The voters will be in a position to de. the inspection of representatives of the cide whether the subsidized industry is Treasury, as was done during the years of sufficient advantage to the country to of the war with certain "war indus- be worth what it costs, and how long tries." All proceeds secured by the the taxpayers should continue to provide business beyond a certain percentage the money.

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