ON THE HIGH SEAS

President Harding in his address to Congress finally admitted what most of the United States has known for the last three years: namely, that government operation of merchant ships is "fundamentally wrong and practically impossible." Moreover he has declared himself as favorable to a government subsidy for shipping--a plan which built up Germany's merchant marine and for which shipping men have long been asking.

It took a terrific jolt and cost the United States many million dollars to bring the government to realize the justice of their request. At last a generous subsidy bill has been introduced in Congress. It is yet to be seen how favorably the bill will be received. Even the expectation of such a subsidy, however, will unquestionably cause an immediate increase in the number of merchant ships operating in both coastwise and foreign trade.

If the bill is passed it will form a strong foundation on which the United States may build, for the first time in its history, a merchant marine of a size proportionate to its domestic and foreign commerce.