SUBSIDIES

Wanganui Chronicle, Volume 79, Issue 64, 16 March 1936, Page 6

SUBSIDIES

—— The American people are entitled to ask themselves til following question: “When is a subsidy not a subsidy? Senator Glass has said that the members of Congress “are tire of explaining to the country why it pays 75,000 dollars to cart 124 dollars’ worth of mail to a certain South American R public.” The dictionary definition of the term “subsidy” is “Pecuniary aid directly granted by Government to an inc vidual or commercial enterprise deemed productive of publ benefit.” The term carries with it the implication that it is n the main payment, but a subsidiary contribution to the cost the enterprise, otherwise the use of the prefix “sub.” mean! under, would be fliappropriatc. If this interpretation be c rect, then the application of the term “subsidy” to Gove mental payments for American mail carriage is wrong. It not the American shipping companies that are competi against the nou-American lines, it is the American Governnu Seeing this is so, the Governments of Australia and New 2 land should take action to counter a foreign Government in venfion in the domestic interrelations of the members of British Commonwealth. And the sooner the better!