POLICY OF AMERICA.

New Zealand Herald, Volume LXIV, Issue 19798, 19 November 1927, Page 11

POLICY OF AMERICA.

VALUE OF TARIFF SYSTEM. "MORE SHIPS FOR NAVY. STATEMENT BY PRESIDENT. By Telegraph—Press Association—Copyright. A. and N.Z. PHILADELPHIA. Nov. 17. An address was to-day delivered to the members of the Union League at Philadelphia by the President, Mr. Coolidge, on various points of the policy of the Government, both internal and foreign. Mr. Coolidge said: Wo have adopted anrl very generally maintained for a period of more than 100 years a system of protective tariffs. This has enabled us to develop our natural resources, to build up great industries and to furnish employment for our increasing population, and to find markets for the various products of the farm and the factory. This policy has lately been extended to include the restriction of immigration. Without the influence of a protective tariff it would never have been possible for our country to reach its present stage of diversified development. Any material reduction in the general tariff rates would ultimately result in a drastic deflation of agricultural and industrial values, and in the standards of living. Under the present system our foreign commerce has reached its highest peacetime record, and the national income has steadily increased to enormous proportions, being £18,000,000,000 in tho last calendar year. We are in a position to have further moderation in taxation, and we can consider our internal developments. On sea we shall round out the Navy with more submarines and cruisers, and private ownership should provide it with an auxiliary merchant marine of fast cargo boats. On land we shall build up our air forces, especially by encouraging commercial aviation. We are more concerned than ever with our foreign affairs. Tho wealth of our people is going out in a constant stream of record dimensions, for the restoration and development of all parts of the world. We want our moral influence to be on the side of liberty, education, fair elections and an honest constitutional Government. Where our obligations to our own citizens under international law have so required, we have extended Kelp to those attempting to secure these results, but we have refrained from meddlesome interference. because we recognise not only the right, but the' necessity for each people to work out its own salvation.

The future of the American mercantile marine, which has been under the President's consideration for some time, is one of the most important matters for the consideration of Congress. The Washington correspondent of the Times wrote recently :—"TTie members of all parties are agreed on the necessity of its maintenance ; for f hose who are disinclined to bother with the economic aspect of the question there is the. significance of the merchant fleet as an auxiliary in war time still floating in the backwash from Geneva. About the end, then, there is no dispute, but the method of achievement is likely to bring forth various dissenting doctrines. The President himself is inclined to attribute the failure so far as much to the indifference of importers and exporters, as to the nationality of the ships carrying their cargoes. In assigning the cause, therefore, he indicates the remedy which he feels would obviate the necessity for further Government support. He is greatly averse from adding to the existing loss of £600,000.000 which the Government has incurred since its entry into the shipping business. On the other hand he realises and shares the strong feelings of those who hold that it is the duty of the Government to maintain the marine in one way or another, and the demands made in some quarters for a further appropriation of £60,000.000 for replacing obsolete ships will certainly be met if no other adequate solution of the problem may be found. The London Observer recently said the facts of the American shipping during the last 12 years were astounding, but the American public had never known or cared about them. Since 1917 the losses incurred while generally put at £600,000.000 were probably considerably more. The President if he could, would make it a test of patriotism that American goods should be shipped in American ships, but that doctrine was far too drastic for business men.