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In inset—Capt. Herbert Hart- ley, commander of the Levia- than since her entry into ser- vice in the American merchant marine, June, 1923 Above—Bangor, first iron sea- going propeller steamer in the United States. Built by the Harlan and Hollingsworth Co., Wilmington, Del., in 1843-4. When bought by the govern- ment, renamed Scourge At left—S. S. Leviathan, though built in Germany, was elabo- rately rebuilt, rearranged and redecorated in the American manner. Conceded the equal of any foreign liner What Can Be Done To Build Up a Merchant Marine? ANY shipping authorities and tariff ex- perts contend that the early American merchant marine was considerably helped and encouraged by the preferential tariffs which were allowed to goods imported into the United States in American bottoms and some of these authorities are of the opinion that if the same preferential tariffs were in effect today that the American merchant marine would be considerably benefited. Early Colonial Laws Aided Shipping History records that in most of the American colonies before the Revolution there were dis- tinctive enactments designed to aid shipping. Of these the earliest was passed in Virginia in 1631, twenty years before the date of the English navi- gation act. In most of the colonial charters dis- criminating duties were authorized. That of Vir- ginia was typical, with a duty of 214 per cent on all goods imported by British subjects and 5 per cent on all goods imported by foreigners. Government statistics show that in 1789 of the 600,000 tons of shipping engaged in the foreign and domestic trade of the United States, 400,000 was American and 200,000 foreign, of which three-fourths was British. Although the coast- wise trade was not exclusively confined to Amer- 11 _ican vessels until 1817, few foreign vessels could participate in it after 1789. The statutes of 1789 provided for discriminating duties 10 per cent below the general tariff rates when the goods were brought into the country in American-owned ves- sels. A tonnage duty of 6 cents per ton was levied on American-owned vessels, 30 cents per ton on American built but foreign owned vessels, and 50 cents per ton on foreign built and foreign owned vessels. It is the contention of those who have made a study of conditions at that time that the pros- perous condition of the American merchant ma- rine was due in large part to these preferential tariffs. Difference in Import Duties Effective In addition to this discrimination, the act of 1789 gave the maximum protection to American trade engaged in the Orient. An import duty ranging from 6 to 20 cents per pound was laid on tea imported direct from India or China when shipped in American bottoms. When exported from Europe to the United States in American vessels the rates ranged from 8 to 26 cents per pound. The duties on tea shipped in foreign vessels ranged from 15 cents to 45 cents per pound. All other oriental products carried to