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12 MARINE REVIEW. [December 7, VIEWS OF THE PRESIDENT. NO DOUBT OF HIS POSITION REGARDING SHIPPING LEGISLATION--EXTRACT ON THIS SUBJECT FROM HIS MESSAGE--THE BILL IN CONGRESS--COM- MUNICATIONS FROM HARVEY D.GOULDER AND PRESIDENT SEAROH OF THE AMERICAN ASSOCIATION ' OF MANUFACTURERS. Questions Submitted by the Marine Review. 1. Shall the United States continue to allow its mer- chant marine in foreign trade to fight a losing battle until it entirely passes out of existence and foreign nations absorb the ocean carryiilg of our entire import and export trade? 2. Shall the United States decide, as its permanent non-partisan public policy, that an equitable share of its im- ports and exports must be carried on vessels of the United States, built in our own ship yards and flying our own flag, and that congress will enact whatever national legislation may be needed to stimulate and encourage our citizens to create, maintain and operate the vessels this policy calls for? 3. if it is recommended that congress shall enact re- medial legislation, what shall it be, and why? PRESIDENT MCKINLEY'S RECOMMENDATIONS. The value of an American merchant marine to the extension of our commercial trade and the strengthening of our power upon the sea in- vites the immediate action of congress. Our national development will be one-sided and unsatisfactory so long as the remarkable growth of our inland industries remains unaccompanied by progress on the seas. There is no lack of constitutional authority for legislation which shall give to the country maritime strength commensurate with its industrial achieve- ments and with its rank among the nations of the earth. The past year has recorded exceptional activity in our ship yards and the promises of continual prosperity in ship building are abundant. Advanced legislation for the protection of our seamen has been enacted. Our coast trade, under regulations wisely framed at the beginning of the government and since, shows results for the past fiscal year unequaled in our records or those of any other power. We shall fail to realize our opportunities, however, if we complacently regard only matters at home and blind our- selves to the necessity of securing our share in the valuable carrying trade of the world. Last year American vessels transported a smaller share of our ex- ports and imports than during any former year in all our history, and the measure of our dependence upon foreign shipping was painfully mani- fested to our people. Without any choice of our own, but from necessity, the departments of the government, charged with military and naval oper- ations in the east and west Indies, had to obtain from foreign flags mer- chant vessels essential for those operations. The other great nations have not hesitated to adopt the required means to develop their shipping as a factor in national defence and as one of the surest and speediest means of obtaining for their producers a share in foreign markets. Like vigilance and effort on our part cannot fail to improve our situation, which is regarded with humiliation at home and with surprise abroad. Even these sacrifices, which at the beginning may be involved, will be offset later by more than equivalent gains. The expense is as nothing compared to the advantage to be achieved. The re-establishment of our merchant marine involves, in a large measure, our continued industrial progress and the extension of our commercial triumphs. I am satisfied the judgment of the country favors the policy of aid to our merchant marine, which will broaden our commerce and markets and upbuild our sea carrying capacity for the products of agriculture and manufacture; which, with the increase of our navy, mean more work and wages to our countrymen, as well as a safeguard to American interests in every part of the world--From message to Fifty-sixth congress. One of the first measures introduced in the Fifty-Sixth congress was the shipping bill, which is the same in all essential particulars as the Hanna-Payne bill of the last congress, except that the new measure con- tains a provision that the bounties shall not exceed $9,000,000 annually, and that foreign-built ships having American registry, shall have only 50 per cent of the bounty rates provided. In case the total bounties earned exceeded $9,000.000, a pro rata allowance is to be made. There is every prospect that this measure will be passed. A new force in its favor is the influence of the Sailors' Union, now in national convention in Chicago, and which will probably adopt resolutions in favor of the measure. The boiler makers and metal workers employed in the ship yards will also en- deavor, at the convention of federated unions of their kind, which will be held in Detroit shortly, to secure endorsement of the bill. FROM HARVEY D. GOULDER, COUNSEL OF THE LAKE CARRIERS' ASSOOIATION. Editor Marine Review: Replying to your inquiries on the subject of our foreign merchant marine: That the people of the United States should have, for so long time, tolerated a policy which has permitted the steady decadence of our for- eign merchant marine is surprising. Not so much, perhaps, when it is considered that but comparatively few have given the subject any thought, the great body of the people, and not a few in official station, regarding it, if at all, as a matter of concern to only such as seek that investment for individual gain. Others regard it as a mere matter of sentiment, desir- able, but of no particular consequence except as a matter of national pride. The persistent endeavors of a few to bring the people to a realizing sense of the magnitude of our foreign trade, and the pitiable inadequacy of American bottoms to care for it; the manifest possibilities of develop- ment, and a growing feeling of belittlement that a giant nation should be content with a pygmy's portion of its own carrying trade; the creation of new interest in foreign affairs and trade by the achievements of the navy, have all tended to awaken the public sense, and, let us hope, arouse the people to the determination that the decadence of the merchant marine shall cease, and some policy formed and followed which shall bring about such development of our merchant marine as will enable the major part of our foreign trade to be carried in American bottoms. It fires our hearts to speak or hear others speak of the successes of the navy, the evidence of our development as a sea power, but if there is nothing to follow but the boast of victory, our position as a nation will be very like that of a vaunting bully. Whatever we ought to have done (in an abstract sense), the fact is that we have been drawn into definite interests in world affairs outside our ancient boundaries. We have the material resources and present opportunity to supply to the full measure of one nation's share, the markets of commercial nations. It has never been successfully argued that this can be well or adequately done in hired ships. A nation seeking this commercial advantage, can not secure it with ships flying a flag foreign to itself. There is some- thing more than a mere sophism in the expression, "Trade follows the flag." This is not the occasion to argue out such proposition, but my settled conviction is that the lasting value of naval victories lies in the respect accorded the flag as an emblem of power and resource. Flying over a ship engaged in peaceful trade, the flag and ship and all their con- cerns command attention and respect. If experience shall show that the goods she carries are entitled to the like attention and respect, her full share of the market is at her command. American goods reaching for- eign markets in ships flying the American flag, is the best basis of trade extension. It will bring the greatest advantage to the purchasers, the manufacturers and merchants of America, an advantage in which the whole people fully share. I would put this above the direct advantage in the earning of freights by our own citizens, the increase of ship building and cognate industries. -- We can see what lake commerce has done for the lake cities. The prosperity of the ship building plants; the enormous sums they have paid and are paying to an army of employes and for materials fabricated by another army of men; the employment of large numbers of officers and seamen in navigating the vessels, furnish an object lesson plain enough for any understanding. The direct benefit in building, supplying and manning our own ships, and the earning of freights are sufficient to jus- tify much effort and any reasonable expense. The indirect benefits, deeper and more widespread, which would come to the whole people as a nation, are such as, in my opinion, make the question of expense in- curred to bring this about a matter of secondary consideration. To your first question, therefore, my answer is "No"; to the second, "Yes, it is one of the most important subjects congress has to consider." Third. From a careful study of the Hanna-Payne bill, I believe its enactment would cover the ground intelligently and well. It may be argued that aid is not necessary; that in time our foreign marine will de- velop. If this be true, surely it can do no harm to hasten it somewhat. It has not, however, been developing, but if it shall have help over the hard place it is now in, it will be in the better condition to profit from all natural means as they shall come. Cleveland, Dec. 1, 1899. Heep: GOwrDl Rk. A LIFE-GIVING FORCE TO AMERICAN SHIPPING SAYS MR. THEO. OC. SEARCH, PRESIDENT OF THE AMERICAN ASSOCIATION OF MANUFACTURERS. Editor Marine Review:--The ocean shipping question is one that has engaged the attention of Americans for many years. The facts about it are familiar to all men who read and think. That the American ship is rarely or never seen in foreign ports is common knowledge. That we once hauled nearly all our imports and exports, but now convey less than 10 per cent in American bottoms is notorious. That we are among Lord Salisbury's "dying nations" in the shipping business there is nobody to gainsay. We lost the high position enjoyed by us as ship builders and navigators when the wooden ship went out of style and the iron ship from England came in to take its place.. We have been going down hill ever since, and, although some fine yards have been developed to build vessels for the lake and coasting trade and battleships and cruisers for the "new navy," the merchant steamer for the ocean carrying trade is constructed Oversea, is owned oversea and comes to our shores under a foreign flag to earn money for its foreign proprietors. Here is a business that would be as profitable for Americans as for Englishmen or Germans. It would employ great bodies of our people, put life and impulse into many native industries and be a permanent source of income to hundreds of thou- sands of our countrymen. It is admitted that the hour is now at hand when something must be done. Further argument is needless. Knowing what to do the next thing is to do it, and the remedies are in full view. They are to be found in the experience of other governments. New or original schemes need not be sought for and congress will find its task well mapped out for it. There are only two propositions of first-rate importance and these are (1) for subventions, that is annual lump payments to shipping lines, and (2) for bounties or premiums to be paid by the government according to tonnage or the distance sailed. The discriminating duty on imports in other than American bottoms, which was recommended rather urgently a few years ago as a means of rehabilitating the merchant marine of the United States, has now gone into discredit. As a possible policy it is not likely that it will soon be resurrected. If the government desires to encourage its shipping industry it must do so by those methods which have been employed and have been found to be effective in other countries,