The Dominion. WEDNESDAY, DECEMBER 27, 1916. A NEW SHIPPING POLICY

Dominion, Volume 10, Issue 2961, 27 December 1916, Page 4

The Dominion. WEDNESDAY, DECEMBER 27, 1916. A NEW SHIPPING POLICY

The losses of British mercantile shipping through the depredations of enemy submarines have been discounted by the fact that the great shipbuilding yards of the Motherland have been turning out new vessels practically as fast as the older ones have been destroyed. In a cable message published yesterday it was stated on the authority of one writer that tho total British shipping losses since the commencement of the war had not been more than 12 per cent, of the pre-war ooaan-going ships, and bo added the usual consolatory remark that new ships have already replaced the greater part of the losses. In spite of these cheering attempts to paint the shipping situation in_ as pleasant colours as possible, it is apparent from recent decisions of the British Government that the losses suffered through the operations of enemy submarines are not to bo lightly treated. It will be noted for one thing that in future no notice is to be cabled to America of tho arrival or departure of British ships. Another and very significant step is the decision to raise tho rate charged by tho British Government for War Risk Insurance on oversea vessels and cargoes from 21s. to 425. per cent. Private insurance companies have been' v charging much higher rates than thege from time to time, 1 and the flat rate of 21s. charged by the British Government has been freely criticised. Why, it has been asked, should the British Government carry an unprofitable risk for the benefit, say, ; . of people in 1 China 1 The importer has to pay the insurance on the goods no purchases abroad, and adds this to the prico at which he sells them to his customers. ' Therefore, the argument ran, the people of China or any other country 1 that bought 'the goods should be charged" with the cost of a fair insurance rate, and not the people of Britain, who have to pay through tho Government insuring at a rato that entails a loss. -There is, of course,, another side to the cpiestion, and that is that the British Government wished to keep' trade in British-made goods active, and also to'maintain the supply of inward cargoes of foodstuffs and war material. But tho point with which we arc concerned at the moment is that the reported increase in the rate charged for War Risk Insurance on shipping is duo to the increased losses in our mercantile fleet caused by enemy submarines.

It has been declared by neutrals who have recently visited Germany I that the policy of submarine piracy practised by the German Admiralty is dictated not only by a desire to cripple Britain in tho prosecution of the. war, but with a view to dominating tho freight carriage of the world after tho war. , This, of course, assumes an inconclusive result to the war, for a German victory is not now expected at any rate in official circlcs in Germany. The victory which the Entente, Powers are fighting for will in all probability result 'in Germany's mercantile fleet being taken over to replace tho vessels of _ the Allies sunk by German submarines. _ But in tho meantime it is gratifying to note that with tho advent of the

new British Government and the changes that have recently taken place -in the.constitution of tho

French Government, there arc unmistakable signs that the shippinig situation is to be dealt with more actively and on raoro practical lines than heretofore. The introduction of business men into the British Ministry purely on the ground of their special qualifications for given offices is already showing definite results in the' very important proposals put forward by Sir Joseph Maclay, Minister in Control of Shipping, for accelerating the building of mercantile vessels.' The steps he is taking may bo expected to materially lessen such advantage as ' Germany may expect to gain from the depredations of her submarines. But what is of still greater importance in its immediate effect is the evidence coming to light of a more systematic and determined policy in the matter of the protection of our mercantile shipping against submarine attack, and the utilising of the available vessels to the best advantage. It is not clear from the reports to hand what the exact nature of the arrangement between the French and British Governments as to the transport of stores may be. We are told, however, that under the agreement arrived at the British Government is to be tho sole transporter of stores, and also that tho commissariat and supply fleets will proceed to the different ports convoyed by warships. Probably this will bo found to bo part of a great scheme under which a large part of thoyshippihg, of tho nations wilt como under a single control, and waste a.nd risk be minimised.

Tho convoying of fleets of mercantile vessels by warships has been

suggested on many occasions as tho best possible safeguard against submarinc attack, but in line past it has been received with little favour. The chief objection has been that tbero were not sufficient warships to spare for this work; ancl there was also tho objection that a fleet _ of steamers travelling together might lead to disastrous consequences should submarines succeed in springing a surpriso on them and their escorts. It is probable that tho first difficulty exists no longer, while the second objection stated may not involve the heavy risks suggested. Tho proposal to arm ail merchantmen is a further precautionary measure which may bo expected to bo pushed ahead with all speed under the new conditions. A great deal of criticism—some of it very strong criticism—has been directed against the late First Lord of the Admiralty (Mr. BALi?ouR)/on account of the naval policy pursued under his regime. The critics almost invariably took the line that the Admirals of the Fleet had been fettered by a policy formulated at Whitehall, which rested oCntent with the containment of the German High Seas Fleet within German coastal waters. • Too little attention, it was complained, was given under Me. Balfour's rule to the vital question of keeping open the sea communications with the rest of the world, which after all is as much a part o£ the duty of the Fleet as the protection of the coasts of Britain from invasion. The departure of Me. Balfoue from the office of First Lord of the Adwould in all probability, in spite of his many high qualities of statesmanship, be generally approved. His successor (Sie Edward Carson) is of that daring an 3 aggressive type which we associate with the British. Navy, and in cfne course it may be expected that wfETI this change and the appointment of Ad.mieal Sir John Jelucoe as First Sea Lofd, tho Navj will get a freer hand in dealing with tho enemy submarines.