The daily gazette., 1879-02-01
From the ". y. Herald.
FalIacy Orlhe Arguments Agaist
FPee Trade I'm Ships.

We have watched with some care both
the debates In Congress aud leading
articles in the press 10 find the ground Of
opposition TO free trade in ships. The
reasoning I'm favor of permitting Ameri-
can citizens to buy ships in the cheapest
MAJ kets and sail them under the protec-
ton of the American flag is so coeent and
convincing that we have been curious to
see what could be said in reply. What
would be the effect of lonnage duty on
foreign ships heavy enough to deprive
them Of any share in our carrying trade?
Why, the obvious effect would be simply
to raise the price Of freight. 1t would
give an advantage to foreign producers
IN all the mal kets of the world. 1t would
operate as a tax on the producers of
American grain, cotton, provisions, and
manufactured goods. For example, the
price of grain in Liverpool regul ates its
price on our Western pralries. The
highest price which the American far
mers can receive Is the price in Lverpsr -
minus the cost of transportation. The
effect OF increasing the cost of ocean
freight would be To diminish the price of
In America. A discriminating tonnage
duty, such as is advocated by Senator
Blame, would operate as tax on Ameri-
can producers and woald diminish Ameri-
can exports. 1t Is for the advantage of
the coun ry to increase its exports, but
business Is done OH 20 narrow a margin
| that a difference in the cost of freights
would enable our competitors to com
mand the foreign markets.
Nothing could be more utterly and
wildly absurd than Senator Blaine's no.
tion that heavy tonnage duty on for
eign bottoms Is the best means of reviv-
ing our navigation interest. Such a mea-
sure would enable our rivals to undersell
us in foreign markets in consequence of
the great advantage of cheaper transpor-
tatioH. There are many classes of goods
which we can produce M chcaply as any
nation in the world, but If we add hea-
w cost of transportation to the original
price of the goods, and our rivals can
send their goods at less expense, they
will easily take away the market by un-
derselhng US. Discriminating tonnage
duties are a little too absurd to be advo-
Gated In this age, when the great want of
producing nations Ia cheap access to the
markets of the world.
1t has also been said, In opposition to
| free trade In ships, that several of the
great foreign lines are on the verge of
bankruptcy. Admitting this to be true II
Is an argument, not against, but in favor
of free trade In ships. The fact that the
business has been overdone by nations
which are permitted to buy ships in the
cheapest markets, attests the stimulating
effect of perfect freedom.
Our complaint Is not that We have In.
vested too lavishly in ocean going steam
ers, but that We are nearly destitute Of
this description OF property and the fact
that freedom of purchase has Over.stim
ulated the business in other countries IL
n pretty good argument to prove that the
same freedom would relieve 1t from its
utter prostration in the United States
IL Is further TO be said that If, as Is alleg
ed, some of the great European ocear
steamship lines are on the brink Of bank
ruptcy, a necessary consequence of theil
bankruptcy will be a sale of their ships
at great sacrifice, and that our absurd
; navigation laws will prevent Americans
from reaping the advantage of thes,
great bargains. Why should an Ameri
can merchant be precluded from buyinl
ships at less than half the cost of buildinI
them in any country, and thereby under
bidding all competitors and giving Amer
ican producers the advantage of chcal
freights? But we doubt whether tn
foreign steamship companies are on til
verge of bankruptcy. Their business ha
undoubtedly fallen off within the tast fe
years, in consequence of the universi
depression oftrade throughoutthe worlt
The inability of the United States to Civ
full employment to their own laborer
q has arrested emigration and deprived tn
steamship lines of one source of the
profits, and the great falling off of i'll
ports has diminished another lucrativ
source of their business. But the gene
al business of the world will sooner {
a later revive, and on its revival there wi
}. be full employment for all existing line
of steamships.