AMERICAN SHIPPING

Hokitika Guardian, 1 December 1930, Page 2

AMERICAN SHIPPING

A CHALLENGE TO BRITAIN. Shipowners throughout the world as well as shippers of goods, are face to face with a remarkable movement on the part of the United States, which threatens to disorganise ocean transport, states an article by Sir Archibald Hurd, managing-editor of “I he Shipping World,” appearing in a recent issue of the Svdeny “Morning Herald.” About one-third oi all the cargoes which enter and leave American ports are carried in British ships; onethird in the ships of twentv-n ne other nations; and only one-third in Amer.ean ships. At one time the American percentage whs much smaller. After the Great War many Americans rebelled against this state of things, which they condemned as one o'f humiliating dependence. The American revolt began among ship-owners and shipbu Iders. For a long time the rest of the people of the United States took no interest in the matter. But once the naval ambitions of American naval officers had heen, in some degree, recognised in the Washington Nnval Treaty, they threw in their lot with the shipowners and shipbuilders. The naval officers claimed that a great merchant navy was complementary to a war fleet, “second to none,” and essential to national defence. Then politicians came to the conclusion that votes were to he obtained by supporting the cry for a merchant navy second to none.” They, in due course, became m'ssianaries, Tho crusade has now enlisted no 'mean part' of the population qf 120,000,000 people, President Hoover, as well as his predecessor, Mr Calvin Coplidge, is an enthusiastic adherent of what may- be described a the “blue water school,”

TAXPAYERS’ HEAVY SACRIFICE

Sacrifices, are being made in order to increase America’s prestige by sea. It is estimated that the taxpayers have already about £800,000,000 on merchant shipping, and now further sums are being distributed by way c'f State loans for shipbuilding and extravagant mail subsidies for ship operating. The policy which is beipg pursued my be judged from the fact that a vessel operating between New York and England will'receive a .subsidy of upwards of £BOOO for each voyage, while the payment of a .ship trading between New York and Singapore will exceed £24,000 on each “run.” In the next ten years it is intended to spend £53,600,000 in this way. In order to earn this “easy money,” the various , companies concerned have had to agree to build new vessels and already arrangements have been made for constructing 68 cargo and passenger ships, which will cost upwards of £55,000,000, Down to. the eve o'f the Great . War the ocean-going tonnage of the United States never exceeded 3,000,000. Then owing to.the threat of submarine and mine, the American shipyards wore set .to work, and by 1022 no lees than 14,738,500 toils gross were op the American register, Mapy of these ships had been SO hastily constructed—=some of wood and others of concrete—that they were uneconomic- ' Hundreds of the have since been broken up as useless but the Americans still possess 11,388,367 tons gross, end rank as the second commercial marine power of the world. The British ’ proportion of ocean-going tonnage—that Is vessels of large size and good speed—is 38.47, ana the American proportion 19,80. Remarkable as has been the progress, the people of the United States are not satisfied. They are determined to perserve until they own as much shipping as is ui)der the British flag.

FAILURE OF 7 STATE OWNERSHIP.

The first phase in the shipping movement was admittedly a failure. The State having built and paid for 2500 ships, it was decided that the State should operate them. So the Shipping Board concerted plans for placing as many of the vessels as possible on the trade routes. But the greater number of vessels commissioned the heavier the loss. At last the deficit became so heavy that it was decided to abandon this experiment in State Socialism. The Americans, rich as they were, rebelled. Orders were issued that the ships should he sold to American shopowners at very low prices, and that the unsalable tonnage should be broken up. This dual operation is nearing completion, and a beginning has been made with the new policy of assisting the private shipowner with State funds to build and operate shipping on all the trade routes of the world.

During the interval which elapsed between the admission of the failure of State ownership and the inauguration of the new policy of subsidised private ownership, little or no shipbuilding took place. Of the sea-going vessels under the American flag only 4.1 per cent, are less than five years old, as compared with 22.5 per cent, in the case of the British merchant navy. So though 25 per cent, of the ships of the United States are laid up in idleness because there are insufficient cargoes available, the American shipyards, in addition to the many men-or-wnr which are now under construction, are active-

ly engaged in turning out merchant ships. They have on the slips about 300,000 tons, ranking consequently second to the British yards, and many more vessels are about to be laid down This movement in the United Statas, supported by the lavish expenditure of State funds, is a serious challenge to other merchant navies, and especially to the British merchant navy, which receives no assistance in any shape or form from the Government.

THE BURDEN OF THE AMERICAN DEBT. British shipping, in common with other industries, is burdened with national. taxation three times as heavy as American taxation. That disparity is due, in .some degrees, to the payment of £32,000,000 which is being made each year to the United States on account of the munit ons supplied to the Allies. The Americans d d not lend money, but supplied munitions, which were .sold at fabulous war prices. What the outcome of this shipping competition will be it is too early to prophesy. A great deal will depend on, first,, the maintenance of the efficiency ■of British shipping, which was never higher than’ to-day; second, on the sol id nr ty of 'the British peoples, who shoul dregard themselves as copartners in the task of supporting the supremacy of the British merchant navy, which is the lifeline oi the Empire ; and, th’rd, on the ability of the Americans, now confronted with dark days, to spare the vast sum which their shipping plans involve.