The Republican journal. [volume] (Belfast, Me.) 1829-current, 1871-12-14
SECRETARY BOUTWELL'S REPORT.
he Death kneil of American Shipping.

SIS'fI Hht poO VEIL hCFUhl.
The Death KneiI of American Shipping.
We copy below that portion of the An
nual Report of the Secretary Of the Trea-
sury which relates to American shipping
and the prospects Of its restoration
Returns for the fiscal year 1S70-71 show that
The ocean commerce OF the United States is
passing rapidly into the hands of foreign mer-
chants and ship-buildars. In the year 1860,
nearly seVenty-one per cent. of the foreign com
lneree OF this country was in American ships;
IN 1864 it had fallen to forty-siX per cent; in
1865, to forty-four per cent; and in 1911 it is
reported at less than thirty-eight per cent.
The loss of the shipping Of the United States
is due chiefly TO two causes-first, the destruc-
ton of American vessels by rebel cruisers dur
ing the war; and, secondly, the substitution of
iron steamships for the transportation of freight
and passengers upon the ocean, in place of sail
ING vessels and steamships built of wood.
When the war opened English builders Of
ron steamships had acquired considerable pro-
hcency. and since that period the art has been
carried to higher perfection in Great Britain
than in any other part of the world. 1t is stat
ed that the superiority of British machinery
and knowledge of the business by British me
rhanlcs give an advantage over American ship
builders equal at least to ten per cent upon the
cost of construction. They possess additional
advantages in the cost of labor, the cost OF iron,
coal, and other materials, and in the rate of in
terest upon the capital employed, equal in all
10 about twenty per cent. more, so that the diff
ference in favor of British shipbuilderS is at
least thirty per cent.
In considering the means for the restoration
v our ocean commerce, two facts must be ac-
copied First, that it is useless to attempt to re-
HNe 1t with wooden ships; and secondly. tn at
ships moved bV sails cannot compete with iron
ships propelled by steam. Hence, the only
practical questions for consideration are these
tan the construction of iron steamships be es-
!abshed in this country, and, il 50, by what
means:
The trans ocean commerce of the United
states would employ about six million tons of
shipping, if each vessel made but one round
VOYAGE ID year. The value OF our exports
ana imports has already reached the sum of
nearly eleven hundred million of dollars, and
during The present decade it will exceed fifteen
hundred millions of dollars annually. The
annual returns for freight and passengers are
about one hundred millions OF dollars.
Tie history of the less OF our commerce, As
shown in the statistics already given, renders it
certain that without some efficient action on the
part OF the Government, the entire foreign
trade of the country will soon pass into the
hands of our rivals.
The monopoly of the trade between the United
States and Europe by foreign merchants and
shipbullders, carries with it the monopoly of
shlpbullding for the entire world, and, a. a con.
sequence. the Atlantic trade, the trade of the
Pacific, and the seas adjacent thereto, will he
carried on in English-bullt steamers.
An alteration of the law by which foreign
built vessels may be admitted to American
registry viii furnish no adequate relief. On
the contrary, the change would stimulate ship
building in England, while the prospect of es-
tablishing it on this continent would diminish
III proportion to the prosperity Of the business
in The ship-yards of our rivals.
In view of the facts of our extensive coast
upon the Atlantic and Pacific cans, and our
position with reference to Europe and Asia, the
country ought not to bo satisfied with any policy
which does not loo; to the establishment and
continuance of shlp-building in the United
States, the encouragement Of our own seamen
and merchants, and the control of so much at
least, of the commerce of the world as is derry
ed from the export Of our products and The i'm
portation Of articles required for domestic con-
sumption.
The removal Of duties upon foreign articles
used in the construction Of iron steamships, or
the allowance of a drawback equal to the
amount of duties paid, will not, in the existing
condition OF things. secure the reestablishment
oi the business. But were it otherwise, the
removal OF duties or the allowance of draw back
raises practical questions of great difficulty.
While any concession by an indirect process is
likely in the end to prove unnecessarily eXpen-
aiye 10 the country. Several of the existing
lines of European steamers We're established
by the and of Government subsidies. They are
still encouraged by the same means; and it is
unreasonable to expect that our merchants and
ship-buders can successfully compete with this
formidable combination, unless they are sup
ported by the power of their own Government.
After careful consideration OF the whole sub
iect am prepared to advise the passage of
iaW guaranteeing TO persons who may employ
in the foreign trade American built tirst-class
iron steamships of not less than two thousand
tons burden each. an annual payment, for the
period of five Years, Of the sum of thirteen
dollars per ton. The subsidy should be pro-
port0natclv less to vessels of lower classitica-
ton.
In making this recommendation, do not as
sumo that there is no other practicable method
or restoring our commerce, but present it as
the method which appears to Inc to be the most
efficient and economical.
Connected with this plan, it will be wise to
consider whether the ships may not be so con-
structed as to be available for naval purposes,
and, in case Of war, subject to the right of the
United States to take them upon payment of
their appraised value similar suggestion
was made by the Secretary Of the Navy in his
report for the year 1869. They should also be
required to carry the mails upon moderate
terms, or in consideration OF the subsidy.
The use Of sailing vessels and steamers built
OF wood may be continued successfully in the
c0asting trade the trade with the British pos
sessions, and upon the rivers and lakes Of the
country; but any effort to regain our former
position upon the ocean by their agency must
end Gisastrously.
entertain inc DplHlOn lndt lDc pOllcy su9-
sested will be effectual, and that in IA compare
lively short period our mechanics and artisans
will acquire equal skill with those of England
and thai we shall not only have the aid Of the
best machinery now in use elsewhere but that
important improvements will be made, cacu-
lated to place the country in position of SUI
periority
We shall also be able to test practically the
quality of American iron, which, for the pur-
pose Of shiD-building, is represented as better
than that used in Great Britain.
If it shall appear, as is claimed, that Ameri-
can iron is about ten per cent. better than the
iron used in England, an advantage will be Sc
cured, not only in the diminished cost of vessels,
and also in the increased tonnage capacity of
American ships of equal dimensions over those
constructed with inferior materials.
Accepting as a truth, established by expert
ence, that the ocean commerce of the world is
to be carried on in iron steamships, we must
consider and decide whether the United States
shall disappear from the list of maritime nations,
or whether, by determined and practical
effort, we can regain the position which we
occupied previous to the late rebellion.