to have been an error, if it was expected to have ships and at the same time protect other industries. Had we retained our discriminating duties we should undoubtedly have kept a fair portion of our shipping, but it by no means follows that it would be wise to endeavor to restore that policy at the present time. Since 1830 there has been no protection extended to shipowners either in the direct or indirect trade. The few subsidy measures mentioned simply aided temporarily the small number of vessels carrying the mails, which received them. The United States has never had any policy of subsidies which has extended aid to shipping generally with an aim to build up a marine of cargo carriers, as well as of fast mail ships and auxiliary cruisers. The bills introduced in the last four sessions of Congress, however, contemplate aid to cargo as well as to mail steamers. III. PRESENT STATUS OF AMER ICAN SHIPPING A. IN COASTWISE TRADE THE United States has a fleet of Americanowned and American-built vessels in the coastwise trade of which it may well be proud. This home fleet has increased far more rapidly than the coastwise fleet of any other nation, and now has a tonnage more than three times that of Great Britain in the coastwise trade, and five times that of any other country in that trade. According to Lloyd's Register of Foreign Shipping for 1905-06, Germany, which ranks next to Great Britain in foreign tonnage, had a gross tonnage of 3,546,789. Our coastwise tonnage, including vessels of all descriptions, for the same year was 5,441,688. The American tonnage on the Great Lakes alone is more than twice the gross tonnage which America has in the foreign trade, and earned, according to Mr. Harvey Goulder, an authority on lake shipping, approximately the sum of forty million dollars in freights in one year. Such a volume of shipping has created a demand for shipbuilding, and to it must be attributed whatever shipbuilding interests there are in the United States, since with no ships being built for the foreign trade, the only other source of demand is the construction of vessels for use in the navy. These shipbuilding interests are considerable. According to the United States census returns, in 1880 there were engaged in shipbuilding in this country 2188 establishments, employing 21,345 men, having a capital of $20,979,874 and with an annual output of $36,800,327. In 1900 there were 1116 establishments, employing 46,781 men, with a capital of $77,362,701 and an annual output of $74,578,158. 2. Efficiency Neither is this coastwise fleet lacking in efficiency. Of the tonnage for 1905, 8517 were steel steamers with a tonnage of 3,140,314, and 13,271 were of wood with a tonnage of 2,301,374. That a far larger proportion is not in steel steamers may be attributed to the high cost of domestic steel due to the protective tariff. The size of carriers also has kept pace with the times. While in 1868 the average sailing vessel on the lakes was of but 158 tons, in 1901 the average tonnage of newly built steamers for this trade was 1436 tons. In speed our builders have made great progress, and many of the large cargo carriers of the newer type are faster than ocean carriers of a corresponding type and size. The ownership of all these vessels at home has had great influence in causing to be built local terminal facilities which are unsurpassed anywhere. Every one familiar with our lake ports has looked with admiration at the machinery in operation, which will in a few hours fully load our largest carriers. The coastwise shipping of the United States is adequate in amount of tonnage, efficient in equipment, size, and speed. At the same time supply and demand have kept the freight rates where they will compare very favorably with the rates charged in the foreign carrying trade. 3. Reasons for Growth a. Growth in trade. This growth is of course due to the great commercial prosperity of the United States. Iron ore, lumber, and coal have constituted three fourths of the tonnage carried on the lakes, and grain a large part of the remainder. b. Monopoly. This naturally increasing demand for carriers has been promptly and efficiently supplied under the existing registry laws giving American owned and built vessels a monopoly. The registry law thus restricting the trade to American vessels and liberal appropriations by Congress for rivers and harbors have resulted most fortunately for American shipping interests, all things considered. B. IN FOREIGN TRADE Looking from our magnificent coastwise shipping to the United States shipping in foreign trade, an observer is struck at once with the decidedly sharp contrast. With our thousands of miles of coast line, excellent harbors, and immense volume of exports, he would expect that at least a fair proportion of its own products would be carried to market by a nation which has such unequaled carriage facilities at home. When he found that in 1861, with our foreign commerce amounting to $508,864,375, our foreign trade shipping had a tonnage of 2,496,894, and learned that the commerce had, in 1905, grown to $2,636,074,737, he certainly would expect the increased demand to have had a stimulating effect upon American foreign trade tonnage, which has in fact, during this period, decreased to 943,750 tons. Such a |