The Birmingham age-herald., 1914-08-23
Lewis Nixon, Famous Naval Constructor and Expert, Points Out the Ruinous Results of Our Marine Policy Which Makes Us Lose Instead of Gain By Europe's Tragic Strife.

Congress ana see now commerce WlIh IOTelSn nations was regulated, for surely their authors knew the meaning of constitutional regulation So clear was the course as charted by the Constitution that Jefferson, Madison and Ham, ilton were in perfect accord
 We may safely believe that the men who took part in the framing of the Constitution knew what was meant by it's provisions They were leaders in public thought, so we find many of them members of the First Congress that carried the ideals and intentions of the Constitution into effect by appropriate legisla- tion.
 Then the War of 1912, purposely provided to check our maritime growth, was fought. In 1815, as the price of peace, we abandoned dis crimination in the direct trade, or trade to or from country entirely in the ships of the two countries. But the crowning act of unwisdom and national betrayal was when we, in 1928, threw open our indirect trade to favored na- tions.
 As a result of abandoning preference for our own commerce there has been a constant decline of the proportion of our trade carried in our ships from 92A per cent. in 1926 to about per cent.kat the present t1me
 Of course the losses due to our Civil War, the change from wood to iron, and from sails to steam, discrimination against our shipping sDy foreign insurance and rating companies, the bonded warehouses giving credit for duties, contracts for advance charters, foreign ship ping conferences, trusts, poois and combines and payments now aggregating S50,00O,OO0 an- nually to support their shipping, have supple mented this betrayal of our national legisa- tors of a duty enjoined by the Constitution and their oath to support its provisions
 Before discussing remedies let see whether rehabilitation is worth while.
 We are paying not less than $350, 100000 year to foreign vessels to do the carrying of our people and our products on the oceans We shall double foreign trade in the next twenty-five years We find upon examination of statistics that more and more of our exports consist of manufactured articles that must seek markets through competition and less az on must buy to feed their people and factories.
 In 1907 we exported, in round numbers, S1 1,SO0,000,000, and imported $1,200,000,000; so that, other things being equal this balance of trade statement should indicate a credit abroad of about $600,O00,000, but every time steamer went out taking few hundreds of thousands of gold a shiver went through our financial districts, there must be unaccOunted drain in some quarter This is the vast sum paid for ocean transportation, and as long as this is not kept at home we must dig and delve and sweat to produce an excess of exports over imports; for commerce includes transportation well as trade or barter and baiance of trade statement as ordinarily given is mis- leading would be the statement of mer- chant which did not include his delivery charges. We must add our transportation charges to our imports, they are the price paid for the product of a foreign plant just as much so as if that product were bolt of silk or case of wine.
 It is said that we get value received. But 1t cannot be denied that if we carry our ex- ports in our own ships we increase our credit abroad where we want it increased, while if we bring imports in vessels we reduce our debt at home where we want it re. duced. While our exports may be carried very well, it IS certain that with all trade connec- tions in foreign hands they can largely control the disposition and prices English freight charges, for example, range the highest, while they get our goods at the lowest possible rates Wheat is at times so poured into Liverpool and Bristol and so sags the market that the lowered farm.
 I shall not go into the industrial. economic military and political reasons that force an independent nation to have marine of its own, as the discussion of any would take an article longer than this one; but shall content myself with saying that until we stop this drain of our basic money, we shall be subject to re current periods of depression.
 Without uniform prosperity we can not have cheap money; with the menace of possible call manufacturers not undertake pro grammes covering several years nor extent credits. Naturally this affects our competitiv export trade
 In our early history many adverse baance of trade were turned into favorable balances o commerce by the earnings of our merchan fleet
 nation which depends upon other nation to do it's carrying the sea is tributary to tn nations that do it's carrying, and, as its de pendence increases, so will the tribute
 The merchant marine necessary to make u creditor nation not subject to panic an, bankruptcy in case of foreign wars between ou present carriers is one of from six to seven mil lion tons.
 At present lacking the a,l-pervading mer cantile plant with worldwide connections tha we had in the days of our marine prosperity before we suspended our right to regulat our own commerce., 1t costs more to carr freight under the American flag than unde foreign flags. So much Is this the case tha
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