The New York herald., 1870-03-25
The Presidents Message ON shc Decline oil
American Commerce.

relation to the decline OF American coiDAtrcc
and on the necessity of adopting measures TO
revive ii, which was sent to Congress on
Wednesday and published in the HERALD yes
terday, shows that General Grant is alive to
and studying the material interests Of the
country This message is an endorsement, to
use the Presidents own language, of the
''yery able, calm and exhaustive report of
the committee of the House Of Representa-
tves which was appointed to inquire into
the cause Of the decline of American COM
merce and to suggest remedy. The Presi-
dent recommends also in general terms the
adoption of some such measures as the COM
mittee has submitted in the form Of bills for
regaining our lost commerce and for building
up our merchant marine.
There are two points which the President
makes worthy of the serious consideration OF
Congress. One is that the carrying trade OF
the country having passed in great measure
into the hands offoreigners, in consequence OF
the decline of our tonnage the freights OF this
| trade, to the amount OF twenty to thirty mil
| lions o year, are lost to us. The sum thus
| extracted goes into the pockets of our COM
| mercial rivals, and Is, as he says, "a direct
drain upon the resources Of the country and
like casting so much money into the sea.
! This is we think a low estimate Of the loss
sustained, though tho President does not in
| clude the vast amount that is paid in passage
money to foreign shippers If we reckon
the freights, the passage money and the cx-
| change in favor of foreigners in consequence
of possessing the carrying trade, the amount
would exceed, probably, fifty millions an
nually. The work done by foreigners,
the President properly remarks, ''should
be done by American owned and American
manned vessels" This state of things is, to
use his own words, national humiliation
General Grant has the right view, too, of
the disastrous effect of American commerce
carried in foreign bottoms on the balance of
trade and exchange, for he says :-"lf fair
proportion of this trade were carried on in
American ships it would diminish the balance
of trade against ns to the extent of the freight
and passage money-that is, to the extent,
probably, Of fifty millions year.
! Another point the President makes is that
the merchant marine ia an important auxiliary
Of the navy in time of war, and that it renders
unnecessary to some extent, a costly naval
establishment. He notices the fact that at
the commencement Of the late war our navy
| consisted Of less than one hundred vessels,
of about hundred and fifty thousand tons, and
a force of eight thousand men, and that we
| drew from the merchant marine, which had
cost the government nothing, but which had
| been a source Of national wealth, six hundred
vessels, exceeding one miliontons, and about
seventy thousand men, to aid in the suppress
sion of the rebellion. This, he observes,
| demonstrates the value Of the merchant
! marine as q means of national defence in time
| of war"
Regarding the means to be used to revive
| our merchant marine and commerce and the
| Recommendation Of the committee the Presi-
dent thinks a direct money subsidy is less
| liable to abuse than indirect aid given for that
| object. Still he holds the opinion that while
subsidies may be given to specific lines Of
steamers or other vessels the policy should
not be adopted as rule for all, but that
while subsidiziug very desirable lines Of ocean
traffic assistance should be given in an
effective way to the merchant marine generally.
Every American will cordially respond to
the Presidents wish to revive our shipping
and commerce. That is what all have at heart.
But the question is, how can this be done?
Is the plan Of the committee and of the Presi-
dent the best one? Very important steam
ship lines, where the mail service is valuable,
might be subsidized, and Congress might
strain point in payment for such service
| beyond the postal receipts if great commercial
| interests are to be promoted; but anything
! like general system Of subsidizing would
! open the door to innumerable evils. II would
be direct tax upon the people at large for
| the benefit of one interest and q limited class
of the community. 1t would establish dan
gerous and costly precedent, and at one blow
would overthrow the long established policy Of
this country. Every special interest--manu-
featuring, mining, commercial, agricultural
and industrial-could make the same claim
for direct subsidies upon this precedent.
There would be no end to special legislation,
lobbying and corruption. Indirect aid to ship
building and shipping interests could be given
by taking off duties on materials that enter
into the construction OF vessels and stores
used on board of them. This would mate
rally assist our shipbuilders and merchants.
Or there may be found other means Of afford
ing incidental assistance. But, after all, the
best and most effective way to increase our
tonnage is to permit our capitalists and mer-
chants to build or buy ships wherever
they can be got cheapest, France and Ger
many get many of their splendid steamships
from the Clyde, and they become just as much
French and German as il constructed at home.
France and Germany get the profits aud adj
vantages Of commerce through these vessels
ll.a.. Lad