8. Trade custom to pay higher prices in British markets for cargoes by British ships.

9. Coöperation of British steamship and American railway interests the former intent on engrossing the carriage to England. Our laws should forbid, and break up such coöperation with a foreign interest against the welfare of the Union.

10. Rings and combinations of British shipowners, merchants, and underwriters, linked in mutual self-interest, to control the trade and transportation of the United States with the other countries of the world. A part of their plan may be to mislead our statesmen into "subsidy" legislation.

From this array of protective expedients it appears that England has "retaliated" in advance on any nation ambitious to "follow the sea." None of the nations that accepted the principle of "reciprocity," and entered into conventions with us, antedated Great Britain in resorting to a protective policy. She has been the leader. Her system seems well-nigh perfect. The counteraction of this system cannot be a " National sin.”

The "Treaty" Hindrance. We will be told, however, that regulations of trade are "not practical measures," because, "we are bound by treaties not thus to encourage our navigation. The agreements referred to are conventions limited in time. (This matter has been discussed in chapter xviii.) There is nothing in this apprehension. Nicaragua has lately (Oct. 24, 1901), noticed for annulment her "treaty" of 1867 with the United States, by which she had granted substantial benefits. This treaty was subject to abrogation by a year's notice of either party after fifteen years of force. Our shipping conventions all be terminated in like manner. may It is utter nonsense to plead the bonds which we self-impose from day to day. Let us not forget that we were twenty-six years without a single one of our shipping agreements; that they contributed nothing towards our success in navigation; on the contrary, they have been the ruin of it in foreign trade. Nor should we ignore the fact that foreign nations have violated, and every day are violating, the spirit of these agreements, by resorting to protections of various kinds, thereby reinstating substitutes for

that protection which was set aside, thus taking advantage of our navigation. The result has demonstrated that if we make and keep such agreements, we shall never have an adequate marine, no matter what the policy or measures adopted.

We now find ourselves under a false policy, imposed by foreign influence, that has operated to create dependency in navigation. Shall this condition be continued? In the day of our weakness we were imposed upon. To continue our false policy is to impose upon ourselves. Our forefathers broke their foreign yoke. Can we be worthy of them, and perpetuate our subordination? We are able at any time to break our fetters off and to cast them away. We can build and sail shipping for ourselves and conduct our own commerce. We have not to beg permission of any nation that American ships may sail the ocean, nor have we to tax our people to buy our way into any commercial mart. We have only to provide by law that ships of our flag shall enjoy their RIGHT the PREFERENCE in carrying American commerce, and back up our law by the sentiment of the American People. And, relying upon this sentiment, may Congress have the wisdom to exercise its legal power at an early day.

APPENDIX.

The Usefulness of Shipping. In commerce a ship serves two purposes: First, that of transportation for the merchant; second, that of earning and saving for its nation a competence of wealth and power. The merchant's use of shipping is highly beneficial, but the national service is invaluable: First, in balancing foreign trade; and, second, in providing means for maritime defense.

A shipless nation is generally in foreign debt. Its exports and imports may balance, while its commerce, as a whole, is shortcoming, the balance to be paid in coin. The explanation is this: Commerce consists of transportation as well as trade. The charge for freight follows the cargo; it is a virtual export, or import, as the case may be. By our own ship abroad, it increases our credit there. By our own vessel home, it saves debt here. Thus, transportation must needs be balanced as well as trade, either by trade itself, by transportation, by exports or imports of precious metals, stocks, bonds, or investments—perhaps bankrupt paper. Where alien merchants, underwriters, and bankers, as well as foreign vessels, are employed in a nation's commerce, as now in ours, only a very large excess of exports over imports can or will prevent an adverse balance of COMMERCE. (See pages 18, 19, and 20.)

By WILLIAM W. BATES.

TRANSPORTATION.