, 1921-08-12
WHY NOT SEEK OUR OWN ADVANTAGE,

The lessons of the war should have taught the
American people the value of having ships of our own,
not only for emergencies, but for the business of
transportation for the 365 days in the year.
Along with the general protective tariff law that will
later be enacted, the discriminatory duty in favor of
goods imported in American ships should be made n
feature just as certain as the customs duty covering
the difference in cost of production in the United
States and in the countries of Europe and Asia.
The history of tariff law and merchant shipping en-
couragement are linked to very great extent and to
provide a better understanding to the two subjects it
is here given.
The first tariff law, passed by the American con-
gress July 4, 1879, allowed a discount of 10 per cent
of the tariff duties upon imports brought to this coun-
Try in ships owned and built by American citizens. On
July 20, 1889, congress allowed American built ships
owned by American citizens to enter our ports OH the
payment OF 6 cents per ton tonnage dues, but de-
manded 30 cents a ton from American built ships
owned by foreigners, and so cents from ships built
and owned abroad.
In 1874 the method of discriminating duties was
changed SO that the general tariff rates were applied
to foreign goods entering in American ships, but those
goods imported in foreign ships paid 10 per cent ad-
dftionai duties In 1907 our ships were carrying 90
Per cent of our foreign trade. This percentage was
reduced somewhat in 180s-e due to the Jefferson, en-
barge; again in 1s11-12 by Napoleon's seizures Of our
ships; and stil more in 1914 because of our war
with Great Britain. In 1915 our ships carried IA per
cent OF our foreign trade.
By q commercial treaty framed some months after
the treaty of Client, the United States and Great
Britain bound themselves to impose no DISCRIMINATION
on ships or products in the trade between this coun-
ty and the United Kingdom. But Great Britain stipu-
iAteo tnat snouiQ commune TO control her trade
with the West Indies and Canada as she might desire.
After we had agreed to that treaty, Great Britain
proceeded to exclude American ships from the West
Indies as a result of which $4,000 tons of our ship
ping was put out of active service.
In 1881 the steamship became a factor. Three years
later Great Britain granted a subsidy of Ss5, 900 a
year to the otterdam-Hambu steam packets and
another of $4,000 to the Gibraltar packets. In
1889 the British government handed Samuel Cunard
and his associates a yearly subsidy of $425, 900, hence
the Cunard company, born a protected industry. This
subsidy was increased by successive jumps to $780,
600. to $75o,ooo, to %ss5o,0oo, and finally to over a
million a year for 20 years. In 1S41 Great Britain
granted a subsidy of 81, zoe, 900 to a company of Brit
ish merchants for a steamship line to the West Indies
and the Gulf of Mexico. When this company showed
a deficit of $500 900 on the first years operations,
the British government reduced the required. service,
but retained the subsidy, and later raised it by
$150,000.
1t was somewhere about this time that VIM. Wheel
wright of Newburyport, Mass, our consul to Guyaquil,
Ecuador, conceived the project of a steam line up and
down the west coast of South America, and he came
home to enlist the assistance of his friends in making
it a reality. They agreed as to its usefulness, but de-
clared it would be necessary to secure from the United
States government a subsidy like that paid the Cum
ard line by the Britishers. But congress rejected the
suggestion and Wheelwright went to Liverpool, where