The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-15
City Faces Crisis in Overseas Bust.
ness, but Solution Is Seen in
Old World Trade Device

1Ew YORK is face to face with
~ a crisis in its economic career.
This great port o has the
chance to be the most won
6erfui commercial centre in the world.
assert the advocates Of establishing
a free port here. Heedlessness or an
unwillingness to adopt the necessary
change. they say, may let this golden
opportunity slip by without hope OF
recovery.
More ships are coming into New
York harbor now than has been the
case for decades. Save for the colors
Of the Teuton allies. the flags OF well
nigh all other maritime nations arrive
here daily. In short. New York has
become a centre for the merchant craft
Of the seven seas, and a veritable
babel Of allen tongues a be. heard
along the city's waterfront. The war
IN Europe, Of course, has contributed
70 tbs state Of affairs, but the Panama
Canal also is playing its part. Indeed,
1t is this shorter trade route that now
brings to us direct steamers from
Japan.
What concerns those vitality inter-
ested in the ports needs is the wisdom
o, promoting facilities that will enable
Us to hold the bulk Of this traffic when
peace Is restored and normal trade re-
iations are reestablished. Indeed. 1t
Is confidently asserted that the indus
trial activity largely stimulated by
strife abroad can be maintained in
this country. and particularly In this
State, If New York so wills it.
The broad question Of a free port
has been preached more than once, but
the average citizen has only the haziest
sort OF "A notion Of such an institu-
ton. Indeed. to most OF them II sounds
Cffhand Ike AN effort to break down
our protective tariff barrier and to
Invite the world to dump its products
here without fear Of duty. This idea
OF a free port is an one n
quite contrary to the purpose inspir-
ing commercial centres of this unique
character. II was to dispel m!sunder-
Standing and 70 widen knowledge that
the Merchants Association OF New
York determined, something less than
two years ago. to obtain Information
a. first hand from a survey Of the free
ports Of Europe. Accordingly this
organization had Prof. Philip B. Ken
ncdy Of New York University make a
trip to the other side Of the Atlantic.
The desire was to find out Just how
o free port worked; what its advan-
tages were where conditions resembled
tbn tur,lt ,an,,iattana In thiS country
and whether or not anything was to
b. gained by urging the organization
Of a free port here. Prof. k~ennedy's
Investigations resulted In a fund OF ex-
tremely valuable data. all pointing to
the conclusion that New York should
lose no time in the establishment
within its gates of a free port area
capable Oc meeting present trade re-
qurCmcn;s and flexible enough to ac-
commodatc the added demands that
would soon follow upon its institution.
For the most impressive example
OF what a free port car be n what
u is apt to promote. Hamburg, Ger
many, is cOnspicuously foremost. ana
this despite the fact that Bremen Is
also a free port. These are the Father
lands biggest shipping centres, and
Germany Is a high tarlfY country, AMI
therefore in this economic particular
very much like the United States Tn.
free port has a historical backSroun !
dating to the days when cities stool
apart from nations and In their indc-
p"ndcnce held their gates open to the
traffic of the world. Thus, as men-
ters ~ tho Hanseat!c League, lam
burg and Bremen fourished COM
merclally more than five centuries ago.
They managed in this fashion to slim
ulate trade otherwise endangered by
N" impositions levied by wilfui petty
mobiles.
As Prof, Kennedy expresses It:
when Hamburg, Bremen and LubecE.
MINED the German Empire in 1877
'hey retained their status as free
CUES. They belonged politically to the
empire, hut they were outside III"
herman Customs Union. In order to
bfing these cities into the German
custom confederation Bismarck pro-
posed a plan which gave origin to
what We now know as free ports. The
cities were taken into the customs
union, but the haVbors were left free.