to supply it, there is substantial agreement that it should be supplied by the community itself, acting through its constituted authorities. I am not attempting to state this with scientific accuracy, or in the phrase of the political economists. I am only endeavoring to state what I believe to be the plain opinion of the plain people. They have acted on this principle repeatedly, and in many localities. To take two conspicuous illustrations: It brought about the construction of many miles of municipally built and municipally owned subways, and it has created harbor improvements whose cost run into the tens of millions. Cities went into these enterprises, either alone or in association with private capital to which preferential terms were given, knowing that the direct return upon the investment would not be adequate for a period of years, if ever, but knowing also that they were essential to the health, comfort and development of the community; that they must be provided; and that they could not be provided in any other way. I maintain that the entry of the federal government into ocean transportation is justified on exactly similar grounds.
Let me review the facts:
Fact Two.—Under existing conditions it is capable of mathematical demonstration that private capital can not and will not supply such vessels.
Fact Three.—These conditions can not be materially changed without such radical and fundamental changes in our policies as could only be brought about—if at all—through an educational propaganda continued over a period of years.
Fact Four.—The federal government can fill the void at a direct cost which can not be more than a very minute fraction of the indirect benefit.Believing in the absolute truth of these facts, I am strongly in favor of trying the experiment. I believe that the lines established by the government will greatly aid our exporters, and thereby simplify the problems of our bankers; that their operation will develop trade to a point where, within a few years, it will be possible for private capital to take some of them over; that the facts learned, and the experience gained, will pave the way for such changes in the laws as will permit private capital to enter the field; and that thus there will come about, under governmental initiative, that general revival of the American merchant marine about which we have all been dreaming for a generation, but hitherto failing to translate our dreams into action.
