Free Ships: The Restoration of the American Carrying Trade Part 1

Free Ships: The Restoration of the American Carrying Trade.

by John Codman.

It may seem surprising that an American House of Representatives should have been so ignorant of the meaning of a common word as to apply the term "commerce" to the carrying trade, when in the session of 1869 it commissioned Hon. John Lynch, of Maine, and his a.s.sociated committee "to investigate the cause of the decadence of American commerce," and to suggest a remedy by which it might be restored.

But, it was not more strange than that this committee really appointed to look into the carrying trade to which the misnomer commerce was so inadvertently applied, should have entirely ignored its duty by const.i.tuting itself into an eleemosynary body for the bestowal of national charity upon shipbuilders. Its Report fell dead upon the floor of the House, and was so ridiculed in the Senate that when a motion was made to lay the bill for printing it upon the table, Mr. Davis, of Kentucky, suggested, as an amendment, that it be kicked under it. Nevertheless, the huge volume of irrelevant testimony was published for the benefit of two great home industries--paper making and printing.

The theory of this committee was that the Rebellion had destroyed another industry nearly as remote from the proper subject of inquiry as either of these. These gentlemen concluded that shipbuilding was becoming extinct, because the Confederate cruisers had destroyed many of our ships--a reason ridiculously absurd, in view of the corollary that the very destruction of those vessels should have stimulated reproduction. Since that abortive attempt to steal bounties from the Treasury for the benefit of a favored cla.s.s of mechanics, Government, occupied with matters deemed of greater importance, has totally neglected our constantly diminishing mercantile marine.

By refusing to repeal the law that represses it, it may truly be said that had every ingenuity been devised to accomplish its destruction, its tendency to utter annihilation could not have been more certainly a.s.sured than it has been by this obstinate neglect.

In the session of 1876, Senator Boutwell of Ma.s.sachusetts renewed the proposition of Mr. Lynch, but his Bill was not called up in the Senate. In the course of intervening years a little more light may be presumed to have dawned upon Congress, and, therefore, it is to be regretted that the Senator did not obtain a hearing, in order that the fallacy of his argument might have been exposed.

If any one cares to study the origin of our restrictive navigation laws, he can consult a concise account of it given by Mr. David A.

Wells, in the _North American Review_, of December, 1877. It came out of a compromise with slavery. The Northern States agreed that slavery should be "fostered"--that is a favorite word with protectionists--provided that shipbuilding should also be fostered, and that New England ships--for nearly all vessels were built in that district--should have the sole privilege of supplying the Southern market with negroes!

That sort of slavery being now happily at an end, shipbuilders still inherit the spirit of their guild, merely transferring the wrong they perpetrated on black men by binding all their white fellow citizens with the bonds of their odious monopoly. Moreover, although the arbitrary law of the mother country forcing the colonists to conduct their commerce in British built ships was one exciting cause of the Revolutionary Rebellion, Americans had no sooner obtained their independence than they created a monopoly quite as tyrannical among themselves. And yet, they were not then without excuse. At the time when the Convention for forming the Federal Const.i.tution convened in 1789, every civilized nation was exercising a similar restrictive policy. But while all of them have either totally abolished or materially modified their stringent laws touching their shipping interests--America, "the land of the free," the boasting leader of the world's progress and enlightenment, stands alone sustaining this effete idea. She persists in maintaining an ordinance devised originally for the protection of the home industry of her shipbuilders, which has now become a most stalwart protection for the industry of every foreign shipowner whom we encourage in the transportation of our persons and property over the ocean--an industry in which this law forbids a similar cla.s.s of her own citizens to partic.i.p.ate!

Whatever may be the arguments in favor of, or opposed to, the protection of industries under the control of our own Government, none of them can apply to those pursued upon an area which is the common property of the world. It is a proposition so evident that no words need be wasted in its demonstration, that, other things being equal, the cheapest and best ships, most adapted for the purpose, by whomsoever owned, will have preference in the carrying trade over the ocean. You may pile the duty, for instance, on iron, and grant bounties on the production of the American article if you please, to any extent; you may, if you choose, prohibit the importation of ploughs, and then a.s.sess farmers ten times the cost of their ploughs for the benefit of the home manufacturer. You would undoubtedly succeed in compelling them to purchase American ploughs. They must have them or starve, and we should all starve likewise if they did not use those protected ploughs to cultivate the soil. Indeed, in a less exaggerated way we are doing something very like this continually under the guise of "protecting home industry."

It is a legitimate business for the advocates of that doctrine. If they believe in it they are quite right in "trying it on," and in making the people at large pay as much as can possibly be got out of them for the benefit of a few.

But fortunately they cannot build a Chinese wall around the country.

We are necessitated to have intercourse with other nations. We have a surplus of agricultural products to dispose of to them which they cannot pay for unless to a certain extent we take the merchandise they offer in exchange. This exchange, with all due respect to Mr. Lynch, his committee and the House of Representatives appointing those astute investigators, is commerce. The carrying trade is the means whereby commerce is conducted, and this carrying trade, an industry once of vastly greater importance to our people than all shipbuilding has been, is now, or ever can be, is a business that Congress by its supine neglect has deliberately thrown into the hands of Europeans, and sacrificed American shipowners at the instigation of American shipbuilders.

In face of the prosperity achieved in consequences of the abandonment of a ruinous system by other nations, in face of the lamentable decadence its maintenance has brought upon ourselves, we still persist in packing this Sindbad of prohibition, the worst offspring of protection, upon our back, and then we wonder that we alone make no progress!

Certain political economists are in the habit of raking up records of the past wherewith to justify their theories for the present age. They tell us of England's protective laws in Cromwell's time, and say that as by them she then established her mercantile marine, we should endeavor to regain what we have lost, by a return to the policy of that period, from which by the by, we have varied only in a small degree. Upon the same principle we should abandon steam, which, like the progress made by our compet.i.tors, in free trade, is merely another improvement in the train of advancing civilization. When such men talk of the steamship enterprises which have triumphed in spite of their antediluvian ideas, they tell us that England supported the Cunard line by subsidies, and thus put her shipbuilding on a firm basis.

The inference is that we should go back to 1840, build some 1200 ton wooden paddle steamers and subsidize them.

That this is no idle supposition is shown by the fact that long after England had abandoned that cla.s.s of vessels in favor of iron screw steamships, we did build and subsidize the unwieldly tubs, some of which are still in the employment of the Pacific Mail Steamship Company. We became the laughing stock of the rest of the world who cla.s.sed us with the Chinese, and our steamships with Chinese junks.

The j.a.panese just emerged from barbarism exceeded us in enterprise.

They now own one line of fifty-seven steamships, more of them engaged in foreign trade than all the steamships we thus employ upon the ocean! At a late day we did commence the use of iron screw steamships of such description and at such cost as one or two domestic ship-yards chose to supply, and thus we were as far from resisting compet.i.tion as ever.

Now, if there was no ocean traffic of which we should be deprived, the hardship to our shipowners would be comparitively trifling, although the tax upon ships of inferior workmanship and higher cost would, like all the operations of the tariff, be felt by the community at large.

This is evident enough.

The Pacific Mail Steamship Company, for example, in order to pay expenses, to say nothing of profits, are obliged to charge a higher fare to pa.s.sengers, to exact higher rates of freight from shippers and to demand a larger postal contract from government than they could afford to take, if by being allowed to supply themselves with ships in the cheapest markets of the world and of the best quality that competing shipyards could turn out, they might save one-third of their cost and have better steamers. If, therefore, we had only the coasting trade to consider, we might say that the prohibitory statute would not pinch the shipowner particularly, but its evil would be generally distributed. We are actually carrying on the coasting trade in this way, and as it is all that shipowners have left, of necessity they oblige the community to pay them the excess of cost in order that protection may inure to the benefit of the few monopolists who build iron steamships and are able to force the quality and price upon their unwilling purchasers. We can, and do without considering the pockets of the majority, make whatever laws we please for our own coasting trade.

But now let us look at the ocean rolling from continent to continent, unfettered by the chains with which "protection" can bind the lands and coasts upon its borders appropriated by nations to themselves. It is independent of an American tariff and of them all, as it was in the days when--

"It rolled not back when Canute gave command."

It welcomes the people of all nations on equal terms to its bosom, and Commerce is the swift-winged messenger ever travelling from sh.o.r.e to sh.o.r.e. Look at it, and if our eyes could scan it all at once, we should see the smoke darkening the air as it rises from hundreds of chimneys, telling of fires that make the steam for propelling the mighty engines that bring the great leviathans of commerce almost daily into our ports and into those whom we supply and by whom we are supplied with the products of mutual labor. The flags of all nations are at their peaks--the British, German, Dutch, Danish, Belgian, French--but among the three hundred and more there are only four that carry the stars and stripes, and these were put afloat mainly at the cost of the Pennsylvania Railroad Company. Three hundred steamships, employing fifty thousand men earning a million and a half of dollars monthly; these men supporting and educating families, and themselves becoming reserves for their respective countries to call upon for naval service in time of war! Look at the ports from which these vessels wherever built, now hail, and which they enrich by the capital they distribute. Behold the warehouses, repairing shops, foundries, and other various industries connected with these enterprises, and the shipowners engaged in promoting them pursuing a legitimate business.

Then look at home. First calculate the sum of one hundred and thirty millions of dollars that has been annually paid by us to those foreigners for transporting ourselves and our merchandise. Then go back in memory to the time when in the days of sailing ships, our packets almost monopolized the ocean on account of the skill of our officers and seamen.

Reflect that if a policy of ordinary foresight had prevailed in our national councils when these sailing ships were killed off by the compet.i.tion of the newly-invented iron screw, their old commanders and their n.o.ble crews would have kept their employment, and as they died would have been succeeded by men as worthy as themselves, adding to our revenue in time of peace, and, when needed, supplying a navy now maintained at an immense expense--G.o.d save the mark!--for the protection of an extinct merchant service!

See how few American steamship offices, how few repairing shops we have need of for these foreigners, who employ their own agents instead of our merchants, and naturally endeavor to do all the work required upon their vessels at home. Then search for the American shipowners engaged in trade beyond the seas. Look for them in their deserted counting-rooms of South street, in New York. As their old captains have retired in poverty and are begging for such offices as that of inspector or port warden, or for same subordinate place in the Custom-House, while the seamen are mostly dead with none to come after them, so South street is abandoned by its honorable merchants, who have, in too many cases, moved up to Wall street, and become gamblers by being deprived of their original business. When you have done all this, finish up your investigation by estimating how much sooner the rebellion might have been overcome, if in years past we had owned our share of the world's shipping, and multiply the $130,000,000 of freight money we annually pay to foreigners by the number of years we have been engaged in this suicidal policy of protecting them in earning money that of right belonged to our own people!

Having sketched this result of American legislation, let us glance at that of other nations in late years for it is as useless to dwell upon what it was a century or two centuries ago as it would be to study the navigation laws of the Phoenicians, or to inquire if Solomon exacted that the ships bringing his spices from India and his gold from Ophir should be of Jewish construction. Old things did not pa.s.s away and all things did not fairly become new until the discovery of gold in California and Australia revolutionized values, created universal national intercourse, and by thus giving a sudden impetus to commerce, made the carrying trade an industry of far greater importance than it had ever been before.

At that epoch, our restrictive laws were productive of no harm to us, because it so happened that most of the business of the seas was done in wooden sailing ships, and it also happened, fortunately for us, that we had the faculty and the means of constructing them better and cheaper than they could be produced elsewhere. Accordingly our shipyards became wonderfully active in supplying the demands of our shipowners, and the _personnel_ as well as the material of our merchant fleet being of the highest character, it was consequently in active employment. In the ratio of the increasing value of our carrying trade there was a corresponding decrease in that of Great Britain, simply because her restrictive laws, which were the same then as ours are now, prevented her people from owning such magnificent clippers as we were able to build, on equal terms with us.

But British statesmen were not inattentive to the situation. They wasted no time in appointing committees to investigate the cause of the difficulty, for it was as clear to them as the noonday sun, as clear as the occasion of our "decadence" should have been to the House of Representatives that appointed Mr. Lynch--as clear as it should be to the Congress now a.s.sembled.

Parliament deputed no half dozen of its members to spend six months in running around among shipbuilders, asking them what bounty they required to build clippers like the Americans, and how long it would take them to equal American shipbuilders in skill, material and cost.

But, realizing that the interests of commerce and ship owning were of infinitely greater value than that of mere shipbuilding, they did not propose to lose them, while the latter industry should endeavor to gain a new life. Regardless of any such consideration as that which solely actuated our investigators, Parliament at once abolished the prohibition to purchase foreign built ships. The greatest good of the greatest number was the motive of this wise decision.

As soon as they were thus allowed to do so, English shipowners ordered clippers from our shipyards, and putting them into profitable employment under their own flag, kept on with their business, sharing with us the supremacy of the seas, which but for the timely action of their government they would inevitably have lost. In this way they maintained it until there came a new era in shipbuilding, when circ.u.mstances becoming reversed, their mechanics were enabled to accomplish what ours could not, in the construction of iron screw steamships. Had Congress then been as wise as Parliament was in 1849, our shipowners would, in their turn, have maintained their prestige by supplying themselves from abroad with the new vehicles of commerce they could not procure at home, and we should never have heard of "decadence." Instead of such obviously judicious action, it has done nothing but condemn us year after year to enforced idleness in the name of "protection." So we have endeavored to compete with these new motors on the sea by means of wooden sailing ships and paddle steamers, until they are of service only in our coastwise monopoly or rotting at the docks, if not broken up. We have gone on steadily protecting ourselves to death, and protecting England and Germany, the chief of our rivals, to life at our own expense of vitality. England's justice to her shipowners, which at first seemed harshness to her shipbuilders, was eventually the means of their prosperity. It set them to "finding out knowledge of witty inventions," and now they have one hundredfold the capital invested and labor employed in iron steamship building, more than ever found occupation in their old shipyards.

In a recent address before the New York Free Trade Club, Mr. Frothingham humorously described a visit made by him a few years ago to the studio of an artist. He found him seated in despair, amidst a gallery of his unfinished pictures, his pallet, brushes and colors scattered about upon the floor, complaining bitterly of his lack of business. "This importation of French pictures," he said, "is ruin to American artists.

Something must be done for our protection; we intend to get Congress to raise the tariff on those productions so that we shall not have to contend with the cheap labor that takes the bread out of our mouths."

It may be noticed that this common phrase is very generally employed by those who are too lazy to supply their own mouths with bread.

"Something," added the desponding artist, "must positively be done, and that very soon, or our occupation will be gone!" "I thought," said Mr. Frothingham, "that I could more easily convince him of his mistake by entering for the time into his humor, and so with apparently deep sympathy, I condoled with him and promised to exert my influence in behalf of his profession. He thanked me heartily for my good will.

But then I continued, "I want you to do something for me and for my profession in return." "How can I!" exclaimed my friend with some amazement. "Why," I replied, "We must get up what they call an omnibus bill, including relief for painters and preachers. Don't you know that one of the Presbyterian churches in New York, has imported, duty free, the Rev. Dr. Taylor from England, another, the Rev. Dr. Hall, from Ireland, and the Princeton Theological Seminary has brought over, without Custom House charges, the Rev. Dr. McCosh from Scotland? Now that is "taking the bread out of our mouths." There are plenty of American clergymen who would be glad to obtain these positions, and what right, therefore, have those congregations and that inst.i.tution to supply themselves from abroad? The wants of the people ought not to be considered, but an art monopoly, a pulpit monopoly, a monopoly of any kind should be protected." In a style of satirical reasoning, of which the foregoing is an abstract, conviction was brought to the mind of the painter. Changing his tone to one of serious advice, the clergyman counselled him to go to work, to let compet.i.tion become an incentive to action, instead of paralysing his energy. He then told him how the advent of these foreign divines had been a stimulus to him and to his brethren in the ministry. The result was that to-day there is a higher standard of pulpit eloquence in New York than in any other city of the Union.

The lecture of the preacher was serviceable to the artist who is now at the head of his profession, caring no more for French rivalry than for that of a tavern sign painter. The appositeness of this ill.u.s.tration will be evident when it is applied to the subject under consideration.

Almost immediately after the repeal of the British Navigation Laws the revolution in shipbuilding to which I have referred had its commencement, and we have seen how British shipowners availed themselves of it. Nor were they alone in adopting the change from sail to steam and from wood to iron. We can remember what a large trade we had with Germany twenty-five years ago, although it was small compared with that of the present. At that time it was chiefly conducted in American vessels. But when iron steamships came into vogue, wooden vessels, both American and German, were abandoned. If we had been permitted to do so, we should have still kept the greater part of that important carrying trade in our hands. But we were shackled by our navigation laws, while the Germans were unconstrained by any such impediment.

The _personnel_ of our mercantile marine was, in every respect, superior to theirs, but it was consigned to annihilation by our protective government; while Hamburg and Bremen took their old galliot skippers in hand and educated them to the responsible places they now fill in command of the splendid lines of iron steamships, making their semi-weekly trips across the Atlantic, having absolutely monopolized the whole American trade!

Thus our government protected the Germans as well as the English.

By citing other examples, we might show how the "fostering" hand of protection has been extended by our government to every nation choosing to trade upon the necessities of prohibited Americans.

Now, if the United States persist in maintaining a policy long since abandoned by Europeans, South American and Asiatic nations, even by j.a.pan, leaving us only China as a companion, there must surely be some arguments to support it, and to account in some other way than has been pointed out for the decadence of our carrying trade. It was the theory of Mr. Lynch's committee that we were going on very successfully until the civil war supervened, and then the Confederate cruisers destroyed our "commerce," as they termed the industry we have lost. If this is not disposed of by what I have already said, permit me to quote from my sc.r.a.p-book an extract from a letter addressed by me to the New York _Journal of Commerce_, in the spring of 1857, _nearly four years previous to the commencement of the rebellion_:

"In an article, written some months since, it was a.s.sumed that steam was destined to be the great moving power for emigration, and that it would supplant, almost entirely, the use of sails. Experience is every day justifying this view, and still more, it is becoming evident that in proportion as steam can be economized, it will serve for the transportation of very much of the merchandise now carried by sailing vessels. In fact, the time is not far distant when the latter cla.s.s of ships will be required only for articles of great bulk and comparatively little value.

"The only question now is, who are to be the gainers by this revolution in navigation?

Figures are very convincing arguments to American minds. Let us use them:

In January last it was stated that less than eighteen years have elapsed since the first steamship propelled wholly by steam crossed the Atlantic; and now there are fourteen lines of steamers, comprising forty-eight vessels, plying between Europe and America."[A] Upon looking into this with a view to test its correctness, it was found to be within the truth; for, including transient steamers, the number was greater than stated. And it incidentally appeared that of them all, there were but seven under the American flag--all seven, side wheel ships--and, on the average, unprofitable, even with the support of government, upon which they leaned."

[Footnote A: In twenty-one years the number of our transatlantic steamships has decreased from seven to four, while those under foreign flags have increased two hundred and fifty.]

Maintaining then, as now, that the screw must supersede the side-wheel for all purposes, excepting perhaps those of mail carriage, and that iron screw steamers are, in all commercial respects, preferable to wood steamers, the argument was adduced that England, being able to construct this cla.s.s of vessels more economically than we can, must of necessity have the monopoly of building them. Her monopoly, in this respect, we cannot prevent; but it depends upon ourselves and our government whether she shall share with us the monopoly of owning and sailing them.

I have taken a bold, and it may be, _apparently_, an unpatriotic stand, in a.s.suming that the only way in which we can partic.i.p.ate in ocean steam navigation is by adopting a system of reciprocity with England in so changing our laws that we may buy her steamers as she now buys our sailing ships, because she finds it for her interest to do so."

These views, _entertained twenty-one years ago_, were applicable then.

They have been applicable ever since--they are applicable now. They have been the staple of all that I have ever written on the subject before the war, during the war, and since its termination.