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June, 1921 as may be necessary; and to prepare and issue therefor coupon or registered bonds of the Un.ted States in such form as he may prescribe, and in denominations of $20 or. some. muluple at = tae sum, redeemable in gold coin at the pleasure of the United States after 10 years from the date of their issue, and payable 30 years from such date, and bearing interest payable quarterly in gold coin at the rate of 2 per centum per annum; and the bonds herein au- thorized shall. be exempt from all taxes or duties of the United States, as well as from taxation in any form by or under state, municipal, or local au- thority. This: was the. financial basis of a great enterprise which was successfully worked out for the promotion of our national defense and encouragement of our foreign commerce. At this junc- ture it is most interesting, as possibly pointing out the best method of fi- nancing the formative period of our merchant marine. which is aimed at precisely the same objects. Ehe limitations: of the act. as--to amount of issue, denomination of bonds, rate of interest and dates of maturity were of course adjusted to the enterprise contemplated, and the conditions of the time. The points to be noted are that principal and inter- est were to. be guaranteed by the gov- ernment; that the bonds were to be issued only as required; and that the proceeds could be applied only tothe stated purpose. Winn'ng National Attention If our merchant marine is to be es- tablished and, for the 'present, main- tained by government aid, this meth- od seems worthy of careful considera- tion. It would restrict taxation to ac- tual needs; call for the money only when required; keep the taxpayers in- formed as to the cost; and afford a constant. and progressive basis for judging as to the worth of the game, and the cost of the candle. As com- pared with the Panama canal it would have this advantage, after reasonable trial. Another benefit, not to be easily ex- Pressed in dollars and cents, would be this: The distribution of mari- time bonds among the small investors of the United States, would serve to spread among our people a knowledge of, and an interest in, our ocean carry- ing trade. This has been woefully lacking during the decades in which our internal development has attract- ed the energy and enterprise of our ~ People, and diverted them from the ac- tivities of the seven seas. _This Suggests bonds of low denomina- tion Maturing not over 12 years from date of issue, taxable, and bearing a Fate of interest which would attract MARINE REVIEW small investors. Low interest, long maturity and exemption from taxation, would tend to drive the bonds, into the hands of special interests. The bonds could be of a special issue, designated and introduced to small investors as American merchant marine bonds, so that each bondholder would feel a personal interest in the success of the enterprise. This, or some other policy calcu- lated to meet the situation as it stands is now badly needed. No plan is likely to be as costly as a policy of drifting. (To be continued) Beach Ship Without Harm Present-day interest taken in the con- struction and stability of wooden ves- sels recalls an unusual incident that 257 damage, Captain McClain and crew of 12 getting ashore without difficulty. This ship was bound from New York for Hillsboro, N. S., having come to the coast via the Erie canal, her hailing port being Marine City, Mich. On Nov. 26, with the weather becoming un- settled, the Hitt left Vineyard Haven, and steamed toward her destination. Having rounded Cape Cod with condi- - tions none of the best, Captain McClain decided to haul up for Boston and, ac- cordingly, crossed the bay and anchored in Nantaskte roads, in the lower har- bor, The wind freshened from the east and the Hit dropped two anchors. Early the following morning her chains parted. The shores of Quincy bay, with the wind east, was under the ship's lee. It is apparent that the Hit drove be- tween Peddock's and Rainsford islands, just escaped piling up on Sunken ledge LAKE-BUILT WOODEN VESSEL WHICH PILED UP ON A SANDY BEACH DURING A HURRICANE WITHOUT BEING DAMAGED happened 21 years ago. A _ wooden cargo carrier piled up on a sandy beach during a terrible hurricane that swept the Atlantic seaboard in November, 1898. The vessel in question was the Joun J. Hut, built on the Great Lakes for coast service by Morley Bros. & Co. Marine City, . Mich. She was 178 feet long, 40 feet beam with 17 feet depth of hold. Her en- gines were fore and aft compound with cylinders 20 and 40 inches diameter and 36-inch stroke. The Joun J. Hut went ashore at Quincy, Mass., on Nov. 27, 1898, piling each without much structural up on the b plowed midway in the West gut, avoided Hang- an's island in a smother of snow and through mud flats exposed at mean Jow water and brought up on the beach, where there was not sufficient sea even to cause her to pound badly. A deeper vessel than the Hmt would have struck, no doubt, on Sculpin ledge, a reef that makes out from Long island. Capt. R. L. Lavender, a Boston port warden, distinctly recalls that the gale struck in from the east, backing to northeast before developing hurricane 'oportions. The Hitt could not have drifted to Quincy with wind northeast.