SUBSIDISED SHIPPING.

Auckland Star, Volume LXIV, Issue 114, 17 May 1933, Page 19

SUBSIDISED SHIPPING.

The sub-leader in your issue of Oth hist, draws attention to a question which, is euro to be raised at the World Conference. But those subsidies will not be discontinued simply because British shipping interests desire it. The principle * from our national viewpoint appears to be wrong, but the Americans have their national viewpoint also. When America entered the war, a nation of 125,000,000 people found it necessary to transfer the bulk of their troops to the seat of war in foreign ships—a position which naturally raised a feeling >f national inferiority—and the cry ,vent up to heaven, "Never again! Since then the people of the United States have determined to have a merchant marine equal to the- national .mportanco of their country. After alundering badly in attempting. a Gov-ernment-owned fleet, they discovered ;hat a highly protective country could lot economically build ships at a prico it which they could compete with Euro-Dean-built vessels, nor could they run ;hem as cheaply—hence the necessity for subsidies. The United States is wedded 0 Protection, and consequently it may 3e assumed that her Government is jnlikely to abandon a national effort to :ontrol a fair share of the world's freight Dusinese; for her it is a question of subsidies, or the extinction of her mer■antile marine. American shipping people ieclarc that the subsidies they receive ire only sufficient to place their ships >n the same economic level as their \hief competitors; on the other hand, ,ve are informed by British shipping mthorities that their ehips are being mfairly handicapped and", that, in any jase, subsidies are wrong, notwithstandng the fact that the British mail lines ;o the Eaet have received substantial subsidies for many years past, and that nany millions have been advanced to Sritish shipping companies by the Sritish Government at very attractive •ates to the borrowers. However, this a as ifc may be; I merely state these : acts to show that this particular question—like war debts—has more than mo side to it, and it ie not one that :an be settled by any one government, :ertainly not by xnirs. Meanwhile, the jolicy, of this country should be to velcome all the competition it can get. 3nly by competition are we likely to ret any reduction in freights.' Wool is iown to 3id per lb, but freight rates ,o England are as high as they were ,vhen the prices of wool and other of >ur products were more than twice what ihev are to-day. Indeed, freights are richer, as rates have been largely increased owing to the rise in exchange •atce. New Zealand should welcome any service which will bring about competi;ive rates of freight. By no means >ther than competition can we secure 1 reduction. WAIKATO.