The Washington herald., 1921-03-29
u. S. RESUMPTION
] OFFoREICN TRADE
VS.SHIPPINGCRISIS
Merchant Fleet and Com
nerce Depend One
Upon Other.
IDLE SHIPS ABOUND
SIC Vessels, Aggregating g.
725,000 Deadweight Tons,
Awaiting Assignment.
IDLE SHIPS ABOUND

A prosperous merchant marine
goes wing and wing with flourish
ing foreign trade. Gen. George W.
Goethals said In a recent interview
thar a country's shipping and Its
commerce were dependent one upon
the other and upon the vitality OF
both depended that country's gen.
eraI prosperity. A nation that
would enjoy continued affiuence
must develop foreign trade to the
peak of it's possibilities, and this
cannot be done without a great
merchant feet. Stating II another
way, a great merchant fleet cannot
be maintained without free-how-
ing foreign commerce.
IDLE ships Mean Unemployment.
Naturally. such a close relation
ship holds true in adversely. The
merchant marine of the United
States. like its commerce. is Ian
gushing at the moment. Idle ves-
sells are everywhere-in New York
harbor. in Boston harbor. at New
Orleans and on the Pacific Coast.
For, every idle vessel. II may be
taken for granted. there are idle
lctories and unemployed workers.
Ne surplus production of the past
honths.
G1s Vessels Idle.
The shipping slump. superinduced
the dropping of of foreign
Fade. has compelled the United
States Shipping Board to tie up or
Schedule for retirement. waiting as
signment. a total of GIG vessels, ag-
gregating 3.725.00O lightweight
tons At the beginning of March
sos vessels had actually been tied
up. while Ill steel ships of approxi-
mately $50. 900 lightweight tons
were to be added at the completion
of their current assignment Fur
thermore. ii is generally admitted
that the ocean liners, which must
be kept in service because. of pas
senger traffic. are now being oper-
ated at a loss because of the low
freight rates and the scarcity Of car
goes. II was recently estimated
that the average cargo now obtain
able by any of the steamships on
the big routes was only so pea cent
OF capacity on the Eastbound voy-
ages. and far less than that on the
westbound trip.
Commerce slump Responsible.
To explain the figures Of the ma
rine slump one need only consult
the figures for American exports
and imports in January. Trade with
Europe and South America for the
first month in 1891 showed a marked
falling on. compared with the last
month OF 1920. Our exports to Ger
many decreased nearly S1o,o0oeoo
In the month. and oar imports thence.
fell OF about s1,o0o.000. Exports
to Great Britain were down s2s,-
100000 and our imports nearly s2.-
100000. The slump is great also in
our commerce with France, Italy
and Spain. and with South Amer
lean neighbors.
The real danger in the situation
lies in the rapidity of decline of
the imports into the United States.
These are dwindling to such an ex-
tent that many of the vessels come
back to American ports in ballast.
This means a radical drop in reVe-
nue..
Steamers Also Hard Hit.
American and foreign steamship
lines are facing a still further loss
of revenue from third-class passen-
ger traf1c in the event that the
Dillingham; bill. restricting immigra-
tion to the United States for If
teen months beginning April 1, Is
passed During 1890 there were 5oo,-
200 persons whs reached these
shores in the steerage out of a
total OF 100000 westbound passen-
gers. Steamship agents estimate a
carrying capacity of 100000 persons.
but with the Dillingham; measure
In enect they estimate that not more
than 100000 cabin and steerage pas
sengers could be brought to Amer
lean ports.
shippers Not I'm Despair.
While American shipping men are
depressed. they are not in despair
at the situation. for they know
wherein lies the remedy. This, OBJ
is more cargoes. But the
real question is how to obtain the
necessary cargoes. when exports are
milling rapidly and the almost alb
soiute stoppage of imports offsets
any profit obtained in carrying ex-
ports The remedy for this situa-
lion. too. is apparent to the average
shipping man. as is indicated in a
recent issue of the Nautical Gazette,
which stated in an article on pres
,nt conditions:
Cargo offerings have been linn
tied. and few outgoing ships have
carried more than 30 per cent OF
heir capacity, while in many cases
voyages have been made
In ballast. Business has been dull
IN all trades. and in the opinion OF
exporters this is likely
10 continue until some system OF
Iong-term credits to foreign buyers
,as replaced the short-term credits
hat exist at present"
The opinion thus expressed by the
Gazette Is held by the lead
srs In all American Industries at
he momen6 It seems to be the con-