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Question: "Resolved, That foreign-built ships should be admitted to American registry free of duty."
Brief for the Affirmative.
W. R. PEABODY and W. L. VAN KLEECK.Best general references: D. A. Wells, Decay of our Merchant Marine; J. Codman, Free Ships; Report of Committee on Merchant Marine, House Report No. 966, 52nd Cong., 1st Session; Speech of Mr. Fithian, Cong. Record, 51st Cong., 2nd Session, pp. 1044 ff. (Jan. 8, 1891).
I. A change in our present navigation laws is necessary.-(a) Under their restrictions American shipping has suffered.-(1) Through heavy duties on ships.-(b) Though heavily protected shipbuilding industry has not thrived.- (1) Cost of labor too great.-(c) American capital forced abroad: House Report, as above.-(d) Present provision for limited admission of foreign ships inadequate.-(e) Prevents development of inventive genius.
II. Free ships furnish the only practicable remedy. - (a) They enable Americans to compete on equal terms for world's commerce.-(1) Ships can be bought at lowest price.-(b) Carrying trade should not be sacrificed to shipbuilding.-(1) It employs fifty times as many men: Kelley, Question of Ships, p. 31.-(c) American shipbuilding not seriously affected.-(1) Only iron ships concerned.-(d) Success of plan well illustrated by Germany's policy: D. A. Wells, as above.
III. Subsidizing schemes impracticable and inefficient.-(a) Subsidies large enough to be efficient would be too great tax on the people.-(1) Cost of building ships one-third greater than in England: Codman, as above.-(b) They must be permanent: House Report, as above.- (c) They have already been unsuccessfully tried in U. S.-(d) They have failed in France.-(1) Shipbuilding not built up in ten years' trial.-(e) England's supremacy not due to subsidizing: D. A. Wells, as above.-(1) No payments made to sailing vessels.-(2) Compensations only for carrying mails, and for building according to admiralty requirements.
Brief for the Negative.
A. H. NEWMAN and J. ROBBINS.Best general references: W. W. Bates, American Marine; H. Hall, American Navigation; No. Amer. Rev., Vol. 154, p.p. 76-83 (Jan. '92); Admiral Porter, Our Merchant Marine, 8-48.
I. Lack of free registry was not responsible for the decline in American shipping.-(a) Under present laws our merchant marine reached its height.-(b) Decline due to-(1) Destruction of commerce by English-built cruisers: Bates, Chap. 9.-(2) Commercial depression following war.-(3) Mechanical changes-(x) Wood to iron.-(y) Sail to steam.
II. Free registry offers no material advantages.-(a) American capital does now invest in foreign-built ships- "Whitewashed" sales: Hall, p. 75.- (b) Advantage of flying American flag subject to abuse.
III. Free registry involves grave evils.-(a) Economic. (1) It would annihilate ship-building in U. S.-(2) It would withdraw millions of capital from the country.-(b) National.-(1) It would cripple us in time of war.-(x) No trained workmen.-(y) No shipyards to build in emergency.
IV. There are better alternatives than free registry.-(a) Removal of duties on materials.-(b) Sufficient mail subsidies to American built ships: Hall, p. 77; Porter, p. 14, et. seq.-(c) Change in taxation from principal invested in ships to net profits.
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