The Conservative.
coming into general use in the construe-
tion of merchant vessels and this can be
manufactured cheaper here than abroad.Cl
After reviewing these interesting facts ,
THE CONSERVATIVE it strengthened in
the belief that an American merchant
marine is possible without subsidies of
any kind. All we need is to let the
natural tendencies of trade alone. As
we once supplied the wooden vessels for
the world's commerce so we will in the
near future supply the modern steel
ships for the very plain and logical
reason that no one will be able to under
bid us in their manufacture.
Strol Ships.
"Steel has , " says Mr. Windmuller ,
"in turn superseded iron , and materials
for building steel ships are cheaper here
than they are any where else. Machinery
is not yet as low as it is on the Clyde ,
simply because we have" not had the
opportunity to make as much of it.
That it must become cheaper is evident
from the fact that great quantities of
similar machines , for which there is a
larger demand , are already exported by
us. Labor remains dearer here , and it
is claimed by some that it still costs
I fifteen per cent more to build a fast
*
ocean carrier in America than it does in
Great Britain. The claim of others that
our shipbuilders , if so inclined , could
already compete successfully with
European builders , is sustained by the
fact that one of our leading yards came
near securing an order recently for an
ocean liner from abroad , its bid being
less than ten per cent above that of a
German competitor. Old builders have
more orders than , for some years to
come , they will be able to fill. Until I
additional shipyards furnish more ves
sels capable of satisfying a larger pro
portion of the enormous demand of our
export trade , the cost of American
steamers will not be lowered. The
following figures demonstrate the ex
pansion of this export trade , which has
resulted in an average increase of rates
of fifty per cent for outward freight.
Of the exports of domestic merchandise
for the first nine months of the years
1898 , 1899 and 1900 , respectively , $29-
595,262 , $48,599,280 and $50,408,689 were
carried in American steamers , and
$707,451,899 , $718,128,868 , $819,786,677
in foreign steamers.
"All measures which will foster the
important industry of building ships
deserve serious consideration. The title
of the bill ( H. R. 64) ) which is now
before congress claims that 'it will pro
mote the commerce and increase the
foreign trade of the United States , ' and
that 'it will provide for the national de
fense. ' For years to come it proposes to
subsidize owners of certain ships to the
extent of $9,000,000 each year.
Merchant Marine.
"As to all United States built ships , it
is provided that one-fourth of the crew I
, shall be American citizens , except in'
cases where the United States consul or
port officer judges that such proportion
cannot 'reasonably bo obtained , ' and ,
as to subsidized vessels , that , if the
secretary of the navy or of the treasury
require , each vessel shall carry 'one
American hoy' for each thousand tons ,
as apprentice , a reasonable sum to be
paid for his services ; that subsidized
vessels shall carry United States mails
free of charge ; and that they may be
taken by the United States 'as cruisers
or transports , ' the United States paying
the 'fair value * of the same.
"I heartily approve of the avowed
objects of this bill ; but I claim that , in
its present shape , it will fail to accom
plish them. The subsidies for which it
provides would chiefly accrue , for some
time to come , to American Hues which
cross the Atlantic and Pacific for the
purpose of carrying passengers and ex
pensive freight. What the country
really needs is carriage at reasonable
rates for the immense yield of our agri
culture , and for the bulky products of
our mines ; if that were readily obtain
able , exports could further be increased.
Take , for instance , our coal , which is
being exported to supply demands from
almost every quarter of the globe.
"The annual exports of coal and ( Joke
from Great Britain aggregate nearly
fiif.y million tons. Our exports , probably ,
will reach eight million'tons for 1900 ,
against five million for' ,1899. , We ex
ported in the first nine months of 1900 ,
to Europe alone , some 500,000 tons of
coal , against 19,816 tons during the same
period in 1899. In 1900 , the cost of our
coal was about $2 50 , and the freight to
the Mediterranean ports , where we have
begun to compete with Englandamounts
to $5 in some cases $5.75 per ton.
These freights have been especially
high , because the demand for steamers
to carry coal has been greater than the
supply. If a sufficient number of ves
sels could be found gradually to reduce
the freight to normal rates , not only
could we , in all probability , satisfy the
urgent demand which prevails now , but
the export of coal , which we can mine
for less money than English operators ,
might permanently be extended to
countries which heretofore have been
supplied by England , and which Eng
land now finds it difficult to supply ,
since the demand for English coal by
English manufacturers has increased.
The price for English coal has gradually
advanced in consequence.
Bounty on Coal.
"If a bounty of twenty-five cents per
ton were to be paid by the government
on American coal exported in American
bottoms to foreign countries where it
does not conflict with commercial
treaties ( except to Canada and Mexico ) ,
it would stimulate the exportation of this
article , foster the building of colliers suit
able for the trade by our shipyards , and
bring about a reduction in rates of
freight which might enable us to sell
coal in England. It would take some
time before such a bounty could involve
the country in any considerable outlay.
Long before the export could increase
to one-half of the present British
exports , the trade would become inde-
pendent of assistance. Similar bounties
have often been paid by older countries
for similar objects. Whenever , during
the eighteenth century , cereals went
below cost of production , England
assisted her farmers by an export bounty
on wheat. The premiums which the
northern countries of Continental
Europe have , since 1892 , paid on exports
of sugar , have resulted in a remarkable
extension of beet-root cultivation.
Although the United States , once their
best customers , impose upon their sugar
an additional duty equal to that bounty ,
the production has continued to increase.
Now it is proposed to abolish these
export bounties , since over-supply has
begun to cause stagnation.
Danger of Bounties.
"But bounties are dangerous stimu
lants , which must be cautiously ad
ministered and carefully watched. They
should be paid for services only as long
as services are rendered , ceasing when
their objects have been accomplished.
"When subsidies which are not earned
are paid for the carriage of mail , they
lead to extravagance and defeat the
objects for which ostensibly they were
granted. Shortly after 1852 , when the
subsidy to the old Collins Line of steam
ers was increased from $885,000 to
$850,000 annually , the line met with one
disaster after another , the service
became inefficient , and when the subsidy
was withdrawn in 1858 the company
failed. The experience of our Pacific
Mail Ster.mship Company , which from
1865 to 1876 received an annual subsidy
of $500,000 , was similar. The line lost
in nine years nine steamers ; its managers
became careless , so that they could find
no means to build the additional steam
ers necessary to obtain a further subsidy
of $500,000 which was offered , in 1872 ,
for additional service. Shares in that
company , which paid large dividends
before 1865 , became almost worthless.
"It was shown by congressional in
quiry that the mo 'ey which should have
been used for building Eteamers was
wrongfully spent to influence legislation.
If the directors had attended to their
legitimate business , instead of lobbying
in Washington and of speculating in
Wall Street , they might have left a
better reputation behind them. The
few German and English lines which
receive subsidies for carrying mails
depend for their success , not on these
comparatively small contributions , but
on economical and prudent manage
ment. Their tonnage forms but a small
portion , less than five per cent , of the
aggregate tonnage which , without
assistance , carries on the foreign com
merce of these nations. The Hamburg
Line furnished an example of self-help
when , three years ago , it celebrated the
fiftieth anniversary of its existence.
Without ever having received a penny
for subsidies , it had increased its fleet
since 1847 from .a few sailing ships to
890,000 tons thus becoming the largest
steamship company in the world. On
the other hand , a French line of steam
ers which received last year more than
one million dollars , is not in a flourish
ing condition. France is almost the
only nation which pays large direct
subsidies , similar to those contemplated
by this bill , to its merchant marine ; and
France is the only country whose mer
chant marine has declined in the last
ten years , as shown in the foregoing
table. "
