New-York tribune., 1890-05-05
LESSONS FROM T1LPARATSO.

The fact that foreign commerce cannot be
dovcIoped without the establishment of steam
shin communication is again revealed by our
staff correspondent in Valparaiso. That port
is the commercial metropolis of the west coast
Of South America, and has been for many
years n great centre of European trade. In
1863 the imports received there and at other
Chilan ports from England France and Ger
many amounted to Sl3,16f,l42. BY the
latest Government yearbook these imports are
shown to have run up to S46679, 23l. 1hcre
has been corresponding development OF the
exports TO each of these countries. The I'M
ports from the United States have increased
during the same period from Sl,635,5 ,59S to
S3133173, while the exports shipped III cX-
change show an equally meagrc gain. The
cause of this remarkable extension of European
trade and Of the relative decline OF American
commerce is disclosed by the navigation re-
turns of Valparaiso The tonnage OF the ileetS
under the three European flags is 9I3,263 IN
the foreign and cOaSting trades, and onc-half
Of this is steam tonnage. The tonnage OF the
fortv-thrcc American sailing vessels calling at
VALPARAISO is 33.7j3 The bulk of Chiian
trade has fallen into tho hands of the three
maritime Powers which have established reg
uIar lines of steamship communication with
VALPARAISO. The United States, which is the
only maritime State in the modern world that
Systematically negcctS its commercial marine,
has steadily been losing ground during the last
twenty-five years of European competition for
the carrying trade.
The pioneer steam line on the West Coast
WAS the Pacific Navigation Company, which
was organized in England after incifectu9l
effort, had been made by a far-Slghted Amcr-
can merchant in Valparaiso to interest New
York and Boston capitalists in scheme for
an American line. The English company was
established under the operation of a large sub
sdy. and in the course Of few years secured
a monopoly of the carrying trade OF the west
coast. extending its route from Valparaiso TO
the T>thmuS. That powerful corporation has
opcned and enlarged the market for English
manufactures from the Straits to the lsthmnS,
and the subsidies paid 10 it by the British
Government have been returned 10 the nation
a hundred times over. Although it has been
in successful operation for over twenty years
il still receives effective Government support.
Out Of 4 net profit OF over S9OO,OOO reported
in It's balance sheet for 1883, over SiOO,OVO
was derived from subsidies and mail contracts.
If Mr.. Whcclwrigh' had hecn properly sup
ported by NcwYork capital and the nlted
states Government when he demonstrated
twenty five years ago the practicability OF con
trolling the commerce of the West Coast by
Steam communications with Ncw-Iork and
san Francisco there would have been mag
nifccnt Development of American commerce
with Chill. Peru and Ecuador.
The most remarkable change effected in ro-
cent years in tho carrying trade OF the est
Coast has been produced 10y the establishment
of a Chilian limo of steamers in direct COM
petition with the English company. Aided ty
Government subsidy of c225,00O, this line
has been extended To Panama. and is now
dividing the coaSiing trade with is powerful
rival. That subsidy has been earned many
times over in the reduction of frcightS and IN
the opening OF new markets for Chilian prod
nee. The establishment Of the line has i'm
paltcd - grca, IN impulse 70 commercial en-
tcrpri>c and national industries that the Eng
li,h company j. making desperate efforts to
crush and destroy il. These efforts will fail
because the Chian Government will not suffer
| the commercial marine, which is doing a great
voll, for the nation, 10 be run off the Pacific
! Ocean by It's powerful rival. If the United
| states Government had shown aS much IN
iclligcncc and spirit in protecting and develop
ing the shipping interests of the Nation as
| Chill is now displaying. there would have been
40 decline OF American maritime supremacy