Another element which in the case of the British Merchant Marine gives it a very great advantage over the American Merchant Marine-an element which emphasizes the need of appropriate aid to our merchant marine-is the splendid organization which has 'been developed by the English nation through the several centuries it has been on the ascendancy in the world's carrying trade on the high seas. We refer especially, not to the organization of the individual shipping company, but to the development of trading agencies all over the globe, proper terminal facilities, and well developed international insurance and banking systems. Great Britain has more than 325 coaling or bunkering stations distributed over the globe. This last item is a significant one. It makes it possible for an English cargo vessel, when it has no general outward cargo, to load with coal for delivery at the bunker station nearest its destination where it is planned to procure return cargo, and thus procure freight both

ways.

The United Kingdom is a thickly populated and, in normal times, a busy manufacturing country. On the one hand, large volumes of products are available for distribution all over the world. On the other hand, her vessels must necessarily bring large volumes of food stuffs home, for her small area permits a very limited production only, of her needed supplies. These conditions are great factors in the success of her merchant marine, furnishing both outward and return cargoes.

The usual principle which has been applied in providing direct aid from the Government to its merchant

shipping has been a navigation bounty in one form or another, under which the vessel receives an amount computed upon its tonnage either as a flat annual sum, provided it engages in foreign trade a definite percentage of the year, or, without any reference to proportional periods of time, computed on the basis of the number of miles it travels. In the bill recently introduced (1922) into Congress at the instance of the United States Shipping Board, a third element is used in determining the amount the vessel will receive as a subsidy. It is the element of speed. It seems logical that speed should be used in the formula for the computation of the amount, for vessels of fair speed and some vessels of very high speed are extremely essential as naval auxiliaries in time of war, and the expense incident to the operation of these vessels increases in a ratio out of all proportion to the mere increase of speed. If, therefore, investors are to be induced to build vessels of a type which shall be of exceptional value to a nation in time of war, this item should be considered in the application of the general formula for the payment of subsidies. In the bill to which we have referred, it is provided that vessels having a speed of less than 13 knots shall receive one-half of one cent per gross ton for each 100 miles traveled in foreign trade, and in addition it is provided when the vessel has a speed exceeding 13 knots but less than 14 knots, the unit of computation shall be greater than half of one cent, and if it has a speed greater than 14 knots but less than 15 knots, the basic rate is further increased, and thus continuing on an ascending scale until a maximum speed of 23 knots is reached. For

vessels of this highest speed the compensation shall be 2.6 cents per gross ton for each 100 miles traveled in foreign trade. There are many practical safeguards and administrative provisions which are provided by the bill, such, for instance, as that the mileage on which the vessel is to be paid the subsidy is not to be determined by the vessel's log and the uncertain deviations may follow as it sails from port to port, but is to be computed on the distance between ports on the route ordinarily followed by vessels engaged in that trade. No doubt, also, the mileage for such route would vary according to season as the route may be changed be

it

tween seasons.

CHAPTER XII

AMERICA'S PERSISTENT DESIRE FOR A MERCHANT MARINE

THE last formal expression of the American people in their attitude toward the merchant marine is found in Section 1 of the Merchant Marine Act, 1920, in which Congress definitely states: "That it is necessary for the national defense and for the proper growth of its foreign and domestic commerce that the United States shall have a merchant marine of the best equipped and most suitable types of vessels sufficient to carry the greater portion of its commerce and serve as a naval or military auxiliary in time of war or national emergency, ultimately to be owned and operated privately by citizens of the United States; and it is hereby declared to be the policy of the United States to do whatever may be necessary to develop and encourage the maintenance of such a merchant marine."

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The First Congress of the United States, on July 4, 1789, equally emphasized its zeal and interest in the development of the merchant marine by the enactment of discriminating duties and tonnage taxes in favor of American vessels, to which we have before referred. When the tonnage tax bill was before Congress, James Madison, then a member of that body and subsequently President of the United States, said: "I admit,"

he continued, "that laying fifty cents on foreign vessels, and but six cents on our own, is a regulation by which the owners of American shipping will put a considerable part of the difference into their pockets. This, sir, I consider as a sacrifice of interest to policy; the sacrifice is but small, but I should not contend for it, if we did not stand in need of maritime improvements. Were it not for the necessity we are under of having some naval strength, I should be an advocate for throwing wide open the doors of our commerce to all the world, and making no discrimination in favor of our own citizens. But we have maritime dangers to guard against, and we can be secured from them no other way than by having a navy (marine) and seamen of our own; these can only be obtained by giving a preference. I admit it is a tax, and a tax upon our produce; but it is a tax we must pay for the national security. I reconcile it to the interest of the United States that this sacrifice should be made; by it we shall be able to provide the means of defense, and by being prepared to repel danger, is the most likely way to avoid it."

In another address that eminent citizen, speaking in favor of the bill providing for import and discriminating duties, referred to the effect of Great Britain's policy then being applied. He said: "Let us review the policy of Great Britain towards us. Has she ever shown any disposition to enter into reciprocal regulations? Has she not, by a temporizing policy, plainly declared that until we are able and willing to do justice to ourselves, she will shut us out from her ports, and make us tributary to her? Have we not seen her tak