The San Francisco call., 1904-08-06
THE MERCHANT MARINE INQUIRY

mission developed the three lines of opinion on
the subject which divide the friends of American
shipping both seaboards First of these is in favor
OF direct subsidy. which is better called bounty.
The stands for free ships-that is say per-
mission put the American flag foreign built ships
and grant dierental duties all imports carried by
them The third wants export bounty per ton ad
valorem on all domestic goods carried by American
ships.
These three opinions are represented the com
mission itself AS they all aim at the object it
is proper to inquire into the difference between the
they propose for reaching it. The object be
attained IS the encouragement to be given by the
money of the Federal Government the revival of
American shipping The proponents of the three plans
will. differ materially to the annual of
such money required to effect the purpose.
The first plan is to take it directly from the treasury
and apply the purpose under such rules of over
sight will protect the expenditure The second is
to pay the amount of money by taking it of
the before they reach the treasury The third
is to put in the treasury imports and pay out
as bounty on exports The first and third plans have
the merit of requiring the building of ships by Ameri
labor that part of the bounty by whichever
secured will go pay the wages OF American mechanics
With this exception the plans all merge into the
issue of a bounty This being true, that should
be adopted which will the easiest and economically
apply that bounty the object sought 1t is an
augury of success that the friends of the proposition
have nearly reached agreement that either plan
may be adopted with the substantial hope that it will
attain the object sought.
1t is the belief of many practical men and thinkers
that the best of the three plans is the direct bounty
because of its superior economy and its mme-
date effect differential import duty will require
costly special system of custom house accounting for
entertainment of the rebate and will impart great
certainty to the volume of revenue which will prevent
accuracy of estimates the prospective Of
the treasury The export bounty is open to the
objection, it will require the addition of special
facilities in the cusomhouses to verify the exports and
apply to each its ad valorem share of the bounty. This
also leaves the of the treasury in doubt,
since it is quite impossible estimate the that
will be required pay the bounty the volume of which
will uctuate with the foreign demand for products
After all, both these plans to effect the
thing the frst-the provision of money bounty to
revive merchant marine. We can understand that
there is natural desire to get the money in such
way shall excite the least popular prejudice, and that
causes resort to an indirect bounty system, which
may in the end the people than if the
bounty direct If this be so, will be better for
the proposed policy approach the solution squarey
in the beginning by direction and not ndrecton
One other merit of direct bounty is that there
no mysteries about it. 1t is not half concealed and
half disclosed It's features all in full view from
the beginning. If it necessary to change after
tried is easy go from it to either OF
the other pans but change from either to it would
be difficult and So if they prove defective and incom
petent accomplish the purpose there would be danger
of a collapse the whole policy.
If free ships adopted the permission to put them
under American register should have time limit.
Free ships would in judgment put an end to Amer
lean ship building 1t would dsuse and dismante every
yard in the country 1t goes without saying that
revival of merchant marine MEANS shoald mean,
not only the owning of ships but also the capacity to
build them To this end the bounty should flow both
ways 1t should put ships the stocks in American
yards as we'll the under the American flag.
If we have to foreign builders to buy ships
we will have taken but short step out of our present
SYSTEM which compes to resort to the foreign owners
of ships to transport commerce.
Any system that is adopted should provide the pay
ment of part of the bounty the apprenticeship
of American boys in seamanshp. Our people have
lapsed in the seafarng habit. To such extent has
this occurred that nearly all of merchant
foreigners are large percentage of our naval
This is caused by the decline of shipping. Sea
going offers no career satisfactory American ambi-
ton 1t is necessary that this be changed.
Much is said about protective policy a
of the decline of our merchant marine and the deep
sea prn1acv of Great Britain is cited effect of
free trade This superficial view. We have followed
policy of protection land and free trade deep
water Great Britain has reversed this by having pro-
lection on deep water and free trade land Her
subsidy and bounty system has given her merchant flag
primacy of the Our protective system has given
us primacy in production land.
The japanese have insisted upon the deportation of