Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1902-04-17
Saint Narls Beacon.
Subsidy Pretentions.
Bits FROM Our History OF This
Kind Of Legislation.

prove that some countries pay sub
sides. He declared that these sub
sides are paid for purposes Of
trade and nothing else" Then.
rising to his full oratorical height,
he delivered this curious pronuncia-
mento: Trade cannot precede the
MALL The mail must precede the
tradel''
A more absurd misstatement was
never uttered, even ia the halls Of
Congress.
In order to prove his wild asser-
tons Mr.. Frye would have to show
that the chief delight of the print
tive savage is TO produce and con-
sumo literature. But this utterance
by the leader OF the subsidy move
ment is no more absurd than the
other argument put forth in defense
OF the Frye bill. We are told that
other nations pay s25. 100000 every
year for postal subsidies, and we
are solemnly admonished that we
must pay subsidies, too, If we wish
to escape commercial and industrial
annihilation. To is implied that we
do not pay subsidies. AS matter
Of fact the United States govern
ment pays higher mail subsidies for
the service rendered than any other
country. Yet the subsidy howlers
say that our merchant marine has
declined because we haven't given
subsidies.
Shipping subsidies are not a new
thing to this country. We have ex-
perimented with them several times
and always with results anything
but gratifying to our pride. In
every case the prouoters of subsidy
schemes in Congress have uttered
the ancient and threadbare fallacy
about enormous expansion in trade
to follow the granting of subsidies,
and they have ascribed the failure
Of their forecast to insufficient sub
sidy.
As far back as 1850 Congress voted
o subsidy to the Collins line. The
subsidy failed TO build up a great
steam merchant marine, and foreign
commerce was not noticeably affect
ed. The venture ended i'm o disas-
trous failure, bringing ruin to all
engaged in the enterprise. In the
period from 1S4S to 1858 Congress
expended more than $15, 600 in
subsidies similar to the subsidy
now proposed. During that period
our foreign trade went on increas-
ing exactly as il no subsidy had
been paid. When the subsidy policy
was discontinued, our foreign trade
continued to increase more rapidly
than before. All this goes TO prove
that trade does not follow the mails
nor the mails follow the flag.
From 1853 to 1866 the United States
government gave no subsidies for
ocean mail service. In the year
1866 the Garrison line from New
York TO Rio Janeiro was subsidiz-
ed to the amount of $3.50, 900 per an
mum for bimonthly service. Mr..
Alley in introducing the bill grant
ing subsidy TO this line said, ''Es-
tablish this steam communication
with South America and you will
not q great while longer see Eng
land exporting s2s. 200, 900 worth of
merchandise and taking in return
less than half the amount and the
United States exporting only q, 900,
900, while the import of Brazilian
products is over $50, OOO, OOO."
This line lasted nine years and
cost 81, 100000. When the subsidy
was withdrawn, the Company sus-
pended operations. So ended the
high expectations proclaimed by Mr..
Alley.
The following table shows the
conditions of trade with Brazil be-
fore and after the subsidy:
Imports. Exports.
1866 $16.s16,S03 So, 69l, $50
1875 So. O27, 1853 $7,742, 359
The increase of the import trade
was due not to the steamship line.
but to the removal OF the duties on
coffee and rubber. In 1875 the inn
ports of coffee were SIS, O99, 274 and
of rubber $2,5l9,437. After the
Garrison line was discontinued our
trade with Brazil went on increas-
ing more rapidly than before. Mean
while the commerce of England with
Brazil, without the protection of a
government subsidy, grew much
more rapidly than our own.
In 1867 the government entered
into a contract with the Pacific Mai
Steamship Company for carrying the
mails to Japan and China via Hawaii
The service was to be monthly,
with subsidy of $500. 900 per an
mum. In 1872 the Company offered
TO run another monthly service for
an additional $500, 900 year. With
some difficulty a hin au.hor;v;or