And now, let me ask, at what are we to estimate the loss sustained by the shipping interest during the past year?

The amount of British tonnage entered inwards during the year ended 5th January 1852 was 4,388,245 tons, against 4,078,544 tons in the preceding year; the entries outwards were 4,147,007 tons against 3,960,764 tons; making a total, inwards and outwards, of 8,535,252 tons in 1851, against 8,039,308 in 1850—an increase of 495,944 tons. I refer to these returns with a view to base upon them my estimate of loss sustained; and certainly am not inclined to follow those superficial observers who are in the habit of taking the increase of tonnage, shown by them from time to time, as evidence of increased prosperity of the shipowner. It is well known that our steamers engaged in the foreign trade have enormously swelled the entries, both inwards and outwards, during the last two years. From this port alone we have now a fleet of five vessels of 300 tons and upwards, making fortnightly and monthly trips to the North of Europe and the Mediterranean, each trip of which counts for as much in the entries as the long voyage of a sailing vessel. The Cunard Line to the United States has been augmented; and we are establishing other lines to the Brazils, to Australia, &c. Our West Indian and Oriental Fleets have been similarly augmented. As a further cause of the apparent increase of sailing tonnage, the more rapid passages made by vessels of the clipper build may be mentioned—some of which, it is well known, have during the past year made the voyage out and home to China, the East Indies, &c., in from eight to ten months; whereas ships of the ordinary build and rig would have occupied above twelve months, and thus have come once only, instead of twice, into the returns. Deducting the steam and clipper ships, a correct return would, I believe, show a decrease instead of an increase in our mercantile marine; for it is well known that a large amount of British tonnage has during the past three years been rotting in the waters of California. Far better would it have been for some of the remainder, if, instead of contributing to swell these returns with a tale of delusive prosperity, it could have been laid up in dock, saving the cost of unprofitable wear and tear and of wages. But our New Navigation Laws have rendered such a course of no avail to the British shipowner. If a portion of our mercantile navy had been laid up for a time, the foreigner would have promptly assumed its place, and benefited by the advance in freights which would have resulted from competition being withdrawn. As it is, during the whole of the past year, the British shipowner, in carrying on the struggle which has been forced upon him by our Free-Trade policy, has been injuriously met by this competition in every foreign port, and especially in the ports of our Eastern possessions and their dependencies, the carrying trade of which, formerly secured to the shipping of this country, afforded such a valuable source of remuneration to the British shipowner. In the ports of China we have been met with the same depressing competition. There is not, in fact, a country on the surface of the globe to which a ship could be sent, in cargo or in ballast, with any certainty of earning a return freight which would pay even ordinary expenses of wages and port-dues—necessary repairs being out of the question. In the attempt, which I propose to make, to form an estimate of the losses sustained upon shipping during the past year, it must be borne in mind that the year 1850, with which I shall have to compare it, was notoriously one of severe suffering to all parties interested in shipping. We had then begun to feel the effects of the ruinous policy upon which we had embarked; and the amount of loss sustained in that year had been previously unparalleled in the annals of our commerce. There was a decline, for example, of the rates current in 1848, of the extent of which the following figures, taken from the June number of Blackwood, furnishes a correct idea. The figures in question, I may remark, were based upon actual transactions:—

Calcutta,March 1848, Jute,£5 5 0December 1850, £3 5 0
"""Sugar, 7 0 0 " "3 0 0 and £3 5 0
Bombay,March 1848, Rice,3 5 0May 1850,1 12 6
Valparaiso, Oct. "Copper, 4 0 0March 1851,3 7 6

Other freights bore a similar ratio of decrease. During the past and present year we have had sugar brought from Calcutta at as low as 30s. per ton, and cotton from Bombay at £2, 5s. From China we have had tea as low as 40s.; whereas, in 1850, "The Oriental," American clipper, got £6 per ton, an ordinary British ship being able to command about £4. From the west coast of America we have lately had guano brought to this country for as low as 30s. to 40s. per ton. In March last the freight actually realised was £3, 12s. per ton. These, however, it will be said, are extreme cases. I give, therefore, a more general statement, although it is almost impossible to arrive at a fixed rate of freights for any portion of our long-voyage trade. Throughout the whole of our Eastern ports, and of China, as well as in the ports of the west coast of America, the rates have depended, as they did in 1850, upon the number of American vessels arriving in ballast from round Cape Horn in search of freight, after having earned a very ample remuneration from their previous voyage from the Atlantic ports of the United States—a voyage in the benefits of which British shipping is not allowed to participate;—and these have been most arbitrary and uncertain in amount. As a rule, I find that I may safely put down the long-voyage freights, both from the East and West, as having fallen 30 per cent during the past twelve months. This is the case even with regular traders; and with transient ships it is much more. With respect to Mediterranean and other European freights, the reduction is over 10 per cent for British vessels. In Canadian timber freights there has been an average fall to large ports of from 33s. to 30s. per load in 1850, to about 25s. in 1851. With respect to these ships, the bulk of the tonnage is taken up by timber-importers, some of whom are also owners; and the result of the voyage, so far as the profit to the ship is concerned, is mixed up with the result of the sale of the freight. The Australian voyage has been a set-off against the general loss on shipping. Emigrants and goods for these settlements have been in abundance, but ships' expenses have been increased. Only for great and costly precautions, these settlements threaten to be the grave of as large an amount of shipping as that which is now rotting idle in the waters of San Francisco.

In endeavouring to arrive at an estimate of the gross amount of loss to British shipping during the past year, I avail myself of a calculation made by a gentleman who occupies the position of secretary to the Underwriters' Association—the Lloyd's—of Liverpool. In an estimate of the amount to be put down as the freight paid to British shipowners upon the imports of 1850, that gentleman considered that a fair average earning of freight upon long and short voyages would be £2 per register ton. The total entries inwards of 1851 have been 4,388,245 tons, the freight upon which, at the estimated rate of the year 1850, would have been thus, in round numbers, £8,776,490. Bearing in mind that a large portion of British shipping goes out in ballast, and that the earnings outwards are considerably less at all times than inwards, I shall not estimate the outward freight in 1850 at more than 25s. per register ton. Taking the tonnage outwards of 1851—4,147,007 tons—at this rate, the amount would be £5,183,750—making a total, inwards and outwards, of, in round numbers, £13,900,000. I have already said, and shown from its antecedents, that the year 1850 was a year of heavy sacrifice of British shipping. It is much if the bulk of our shipping during that year earned more than would pay for necessarily-occurring repairs, which in many cases were postponed until better times—which were hoped for—should arrive. Taking all things into account—the actual reduction of freights, and the necessity which has accrued for executing those repairs—I cannot set down the loss to the British shipowner during the past year at less than 20 per cent upon his freight, or £2,700,000 sterling. In addition to the shipping engaged in the foreign trade, I have to estimate as well the loss sustained upon our coasting tonnage, which amounted, in 1851, to 12,394,902 tons inwards, and 13,466,155 tons outwards. Upon the earnings of this class of vessels there was a reduction, in 1850, of fully 30 per cent. In fact, during that year, it brought to the owners only loss and annoyance. During the past year it cannot be said that the freights earned have been materially reduced; but they have been earned only whilst the vessels were in rapid course of being thoroughly worn out, repairs bestowed upon them, being felt to be hopeless outlay. I take, as the basis of my calculation, a tonnage about half of the aggregate "inwards and outwards"—viz. 13,000,000; and estimate the freight both ways—and it is not much over the average of one way—at 5s. per ton. We have thus a gross amount of freight earned, of £3,250,000. I might treat the whole of this sum as absolute loss; for it is notorious that, as compared with former years' earnings, it is so. Not one in a hundred of our coasters are paying interest and wages. Cost of necessary repairs they do not pay; and, in fact, they are only sailed either in the fallacious hope of better days to come, or until they go to pieces, and are destined to be broken up for the timber and the copper and iron bolts which they contain. I shall only estimate them, therefore, at the probable amount of their deterioration, which cannot be less than £2,000,000, making a total loss upon British shipping of £4,700,000 sterling. This may appear an extreme amount of loss to those who do not take into consideration the peculiar nature of shipping property, its constant deterioration, and the large proportion which expenses upon it ordinarily bear to the freights earned. With respect to the estimate which I have made of the loss upon our coasters, it will probably be exclaimed against as very vague and incapable of being proved. It must be borne in mind, however, that this class of property has been injuriously affected by a combination of causes, some of which it is only fair to refer to, as, to a certain extent, removing it out of the scope of my general arguments. Our coasting vessels have had to encounter severe competition with steam craft, particularly with respect to the traffic in merchandise and produce capable of bearing the higher rates of freights. Our internal railway communications have also interfered seriously with their traffic coastwise. A considerable amount of our coal and iron carriage has been abstracted from the small vessels formerly employed by it. For example, I heard within the last few weeks, of a government contract for engine-coals from the northern coal-fields having been entered into, such coals to be laid down at one of our dockyards for a little over 16s. per ton per rail—if I remember right, the Great Northern. Still, much of the deterioration in this property is attributable to our new system, which virtually hands over a portion of our coasting trade to the foreign shipowner. Cargoes of Baltic timber, grain, and other produce from Europe, are constantly arriving in the Irish and the British Channel, to be ordered thence to whatever port they may be required, and be most marketable at, rendering a portion of the voyage to all intents and purposes a coasting voyage. And it is much to be feared that, not only as respects this class of shipping, but our ocean-going vessels as well, the British shipowner has not seen the worst, and that he will have to regret the expenditure which he is now making in the attempt, by increasing the sailing qualities of his ships, to compete with his active and more favourably situated rivals. The screw will shortly supersede the "clipper" in carrying merchandise, as the paddle-wheel has superseded every other mode of propulsion in carrying passengers and correspondence. And, in the meanwhile, the latter neutralises the advantages of early arrivals of merchandise, by preparing the consumer to expect it, and to make his arrangements accordingly. A cargo of tea, advised of by steamer and overland mail, although at a distance of two or three months' voyage, exercises nearly the same influence upon the market price as if it was already being landed in one of our ports. The building of expensive vessels calculated for speed in carrying would be an undoubted good under ordinary circumstances; but it is not a paying speculation. Moreover, other countries are rivalling us in this effort to improve our position; and in the mean time we are adding to a mercantile marine, which is unprofitable enough at its present extent.

I shall not trouble your readers by referring to the condition of more than one of the great internal trades of the kingdom—The Iron Trade—the manufacture of which employs a vast amount of labour both in England, Wales, and Scotland. On this article I find the following remarks in the Circular, dated January 17th, of an eminent Liverpool house, whose means of acquiring information are very great, and their care in compiling it acknowledged. You will perhaps be inclined to suspect, from the commencing paragraph, and you will be right in doing so, that they are Free-Traders.

"Whilst the year 1851 has been one of peculiar misfortune to a large section of the mercantile community, it has been generally one of prosperity to the manufacturing interests of the country. The low prices of produce of all kinds, which have entailed such serious losses upon importers, have highly advantaged the manufacturer's department, and contributed to the comfort of the operative classes, whose condition was never better than at present. The iron manufacturing interest has not participated in the prosperity referred to, the trade having been depressed throughout the year, and totally unremunerative to those engaged in it. The anticipations of improvement which were indulged in at the beginning of the year have been disappointed, and prices have declined to the low rates stated in our accompanying quotations. It will be found that, as compared with the rates current at this period last year, the fall upon Welsh bars is about 10s. per ton; upon the inferior makes of Staffordshire iron, 7s. 6d. to 10s. per ton; on Scotch pig-iron, 5s. to 6s. per ton; and on tin plates about 4s. per box. The depression must mainly be attributed to the excessive production, which the demand has not yet overtaken."

I append the make of the year, and the number of furnaces in blast, with the prices opposite, as given above, to show the total amount of the decline during the year:—

Furnaces
in blast.		Estimated
make per
annum		Rate of
decline		Amount of
decline
Scotland,114800,000tons.5s. 6d.per ton.£220,000
North and South Wales,147805,000"10s. 0d."402,500
Staffordshire,127720,000"8s. 9d."315,000
Other counties,83385,000"say 7s. 6d."144,375
—————————
2,710,000 "
Total decline in the year, £1,181,875