THE Evening Star. PUBLISHED DAILY AT FOUR O'CLOCK P.M. Resurrexi. WEDNESDAY, JULY 10, 1878

Thames Star, Volume VIII, Issue 2933, 10 July 1878, Page 2

THE Evening Star. PUBLISHED DAILY AT FOUR O'CLOCK P.M. Resurrexi. WEDNESDAY, JULY 10, 1878

I " Orjß Merchant Marine aud War Eisks," j is the liiio of an article in The Times of | May tlie 6th. In the same issue appears I a letter from Sir Julius Vogel on the subject, with a practical suggestion for the Government to undertake the insu-ance of Great Britain's Mercantile Marine, on the grounds that as war is enteredupon by the State, and the StalJ largely depends upon its commerce for support, the Slate should bear the burden of any damage inflicted upon its mercantile marine through its being involved in war. This sabject is one tbat concerns us all, and its consideration has not been neglected, although perhaps no large amov.nt of serious thought has been given to it outside of circles likely to be most atfectetL We know that cargoes of British manufactures and productions are daily arriving at one or other of our co'onial ports. We also know that the productions of Australia and "New Zeakad, in the shape of gold, wool, gum and the rest, are beiji£ sent away to the great market of the world—some port in Great Britain. In. case of England becoming involved in war with such a power as Russia, it Ins all along been pointed out that the latter would endeavor to injure England by preyinguponhercomraerce, especially that portion of it to be met with, in the Pacific Ocean. Now, it has been already shewn that in case of the Mother Country being involved in war, the insurance rates would be. very much increased. Consequently, the British productions we now depend upon to such an enormous extent would be proportionately increased in price. On the other liaod, our gold and wool would decline in pi ice. from the fact that do buyers would be found to give a fair value for these produits fend pay the rates of insurance that would be demanded for their exportation. A Government gm.vAAee, however, such as that suggested by Sir Julius Vogel, wo aid give confidence to exporters and importers at home and in the colonies. It would not embarrass the Government in any degree. Should American citizens engage in privateering, or the American Government permit the fitting out of cruiser's in their ports, the Geneva award stands a prominent precedent for exacting compensation. We subjoin Sir Julius Vogel's letter on the suoject, and in another portion of this issue may be found the article from The Times referred to above : It THE EPITOB OF THE TIMES.

Sir,—The suggestion I anif about to make origDated with the Horn Mr Waterhouse, of the - Legislative Cpuncxl of New Zealand. It seems to me to possess so many arguments in its favour that I have pleasure in submitting it to you. In the event of war with Hussia becoming an unfortunate necessity the greatest risk England runs is a loss, more or less permanent, of her trade. In any case, if war break out the insurance office' will charge a war r'sk, and should Russian cruisers or privateers succeed ri capturing a few English merchant vessels, the inST^ranre would be largely increased; in fact, tbe rate might become prohibitive. A war risk would enable foreign ships to ca:ry goi :1s or produce cheaper than English vessels, and thus not only would our own caivying trade be injured, but an advantage would be gained for the goods and produce of foreign countries. In short, a orolcnged war would mean a seiions injrvy to the merchant s* ipping, and \o that which co largely de; nds on the merchani shipping—tbe fyreign and ooloT-ial trade 6f threat Bril^a and her Depenciencies. Consumers in this corntry wou'd nlso suffer by the enhrnced price of gor.'ls and productions.

The one remedy to these great evils seems to be iret in lac su^gesiilon I have alluded to—namely, that the Government should itself under'ake the war risk and promptly pay all damage sustained by merchant shipp'ng from acts of war. The proposal scorns at first sight startling, but it bears examination. It removes, to begin with, all prospects of the greatest injury Russia could do this country. It is likely also to prevent the very evil it is designed to meet. It would be of great importance.to Eussia to make the people of Greo.fc Britain feel, by the injury to their trade, and by the enhanced price of the articles they consume, the serious effects of war, and proportionately to encourage a pressure upon iheir Governmeut to end it. But if injury to merchant shipping will mean merely a little more demand on the practically inexhaustible credit of tho T:)i;ish Government, the reflection must cur::> home to Russia that no advantage can arise to, her by inflicting wanton injury on shipping compared with the risk she runs of a large addition to the cost of the compensation she may be called on to pay if she have to ask for peace. On broad grounds, too, it may be argued that losses consequent upon war should fall upon the State rather than upon individuals. In this case the loss of individuals would by its reflected action on trade, commerce, and supply inflict a greater loss on the nation than the country could possibly sustain by d'rect responsibility, so that an argument based on the ground that it is not the duty of the State to help individuals would be fully met. The lo.s to the State, too, would be inconsiderable, because, apart from the contingency of recovery, the motive would be wanting to Eussia to organize attacks on our merchant shipping. . . Probably the Goverment mirht arrange with the Governments of India and the Colonies to bear the risk of homeward freights from tteir shores. 1 venture to think that if tho plan suggested be adopted this country will go into war, if war unhappily becomes a necessity, with the assurance that for however long a period it may be necessary to continue hostilities, the trade and commerce of the nation will not greatly suffer. It may be that some foreign countries which complacently regard the probability of England being dragged into a great war'are

not altogellieiv unmi'idful of the contingenoy that a considerable portion cf her trade and shipping may be diverted to them. They may naturally think also thai it is ea&ier to lose than 'oregain. It is not unpatriotic to hope that if war is forced upon us we may be able to disappoint these expectation. I am, Sir, your obedient servant, Julius Vogel. 127, Cromwell-road, S.W.