During the recent Congressional debate on neutrality, the slick shipping lobbies worked with might and main to modify the ironclad "carry" provisions backed by the Administration. They got nowhere, but they didn't give up. So, as soon as the Neutrality Act was passed, they bobbed up again with a plan to transfer U. S. ships to Panama registry and sail them into war zones.

If this plan is put into effect, it will nullify the protection of the "carry" legislation. The ships would be transferred to a country completely under U. S. domination, and utterly unable to defend them in war zones, while the vessels would still be owned by U. S. corporations. Change of registry would be not only a capitulation to war profiteers, but an unneutral act with grave possibilities of U.S. involvement.

Since it is clear to most observers that the President wants to help the Allies in every way short of war, it seems likely that his heart was never really in the cash and carry law. To him it was no more than a quick way to drive a shrewd political bargain. And now the Panama registry plan has evidently appeared to the President an easy means of retrieving a part of the price he had to pay. With it, he can not only do the Allies a good turn, but also placate the aroused shipping interests.

As Professor Payson Wild states elsewhere in the Crimson, there are strong indications that Congress will smother the Panama plan. Congress and the people, unfortunately for Administration strategy, have taken the President's promises in good faith, and will demand enforcement of the law in letter and in spirit. To regain the confidence of the people, the Administration might well turn its attention to pushing in every way possible American trade interests in Latin America.