The Washington herald., 1917-01-17

nasions that the difference was enough
merce.
Lastly there was the question Of sub
sidies. The American government, with
brief exception or two, has not given
its shipowners the ARTIFICIAL assistance
which several other governmsnts have
oeiieved to be necessary to the growth
end ascendency OF their nations. The
great German shipping interest was built
up on the subsidy basis
The war has. however, for the time
peing. changed the situation. German
shipping has been forced TO retire from
business. The British mercantile marine
mas been, In large part. commandeered
TOT military use. Neutral bottoms have
peen attracted to the periious but ex-
ceedingly remunerative business of car
rying food to the allies. German sub
marines and mines for moro than two
years have been sinking both belligerent
and neutral vessels 90 that the number
anoat has been decreased by several
hundred As result the freight carry
ING tonnage of the world has been re-
uuced py at least 40 per cent.
sttmulant to u. 8. shipping.
The situation has given us a tremen-
dous advance In the earnings of ocean
carriers and been a great stimulant to
American shipbuilding interests. Freight
rates have risen SO that three or four
tunes the ante-war charges are now ex-
acted. As much as $50 a ton has been
paid for services that would have cost
no more than 50 ton In 1914 A vessel
pays Tor itself now in a single voyage.
snip. Tor instance, that was bought
Tor slb,ooo In July. 1914, was recently
chartered for a round trip that will net
x39, UDD. three times he ORIG mira
OF the ship. Another instance Is that OF
the sale of an old naval collier few
months ago for 100000, which was for
merly appraised at $4,000 and another
ship for ss5o,ooo which had been ap-
praised at s75.0oo. The international
Merchant Marine. bankrupt In 1914, IL
now earning s5ooo0.ooo q year
These conditions have so reacted upon
American shipyards that they are nov
enjoying a prosperity unknown since
1880, when our carrying trade was at its
highest. At the present time there are
more than go ships OF 1000 tons or more
capacity under construction and the WELL
known shipySrds have contracts that
will keep them operating at capacity for
more than ywo years. However, halt
this tonnage Is for Norway and the
United States will retain but a small
fraction of It.
- shN bi'othA tiHHc tHcft put1fltSs
for all the ships we can produce. With
In the past two years the balance oi
trade IN favor of the United States has
increased enormously. New York hal
become the leading port of the world
with an aggregate foreign trade of g..
l2S 100000, which excels by $500 900 900 the
commerce OF London, formerly first In
rank and now second. In the matter OF
exports alone the pre-eminence of New
YORK tnnhon e.. b.
total for the fiscal year 1915 being a,1sI..
100000 as compared with 1854, 900 900 for
London.
When the war ends conditions will
change somewhat, but there will still be
| ample profits for all during at least q
year or two. The ships that are now in.
termed In American and other ports will
at once return to service. The vessel,
now in military use will gradually bt
have gone to the bottom will never re-
turn. There will be a shortage in the
tonnage of the world that will probably
take some time to replace.
Dull Times Ahead
But after this period of reconstruction
has been passed through one must con.
clude that duh times lie ahead. Present
profits and future prospects will lead tc
great overbuilding of ships When
normal conditions return the world will
find itself with great fleets of new ves-
sells for which there is little business
Then rates will be cut and ships will &c
in ballast half around the world for a
cargo. ... ...
When this point is reached what is to
become of the new American mercantile
Meet? Under the marine law of 1914 we
have brought thousands of tons of ship.
ping under our flag that formerly sailed
under alien colors. We have added
thousands of tons OF new construction
We have also added new requirements in
pay and conditions of labor that, with a
restoration OF ante-bellum competitive
conditions, will make 1t impossible for
our ships to stay on the sea
will the American merchant fleet then
pass into alien hands or will we be able
TO retain 1t and to keep our flag flying
in the ports of the world? Without sub.
sides and other discriminatory laws this
Is impossible. The people in the past
have always rebelled at these legislative
stimulants to the shipping trade. VIII
the voters In future acqulesce7 II seems
doubtful II they have been sufficiently
educated to the needs of the situation
The prediction is made that the present
revival of American shipping is but tenn.
porary and that within half a dozer
years after the war we shall have re-
turned to our former position and the
American flag will again become a curl