But a much more important step affecting the interests of maritime commerce and the progress of mankind was taken in 1854. On the declaration of that unfortunate war, her Majesty in Council, in order to preserve the commerce of neutrals from unnecessary obstruction, waived the belligerent rights appertaining to the Crown by the law of nations, by declining to issue letters of marque or by confiscating neutral property on board of Russian ships, or neutral ships with Russian property on board, provided such goods were not contraband of war. She, however, reserved the right of blockade; a reservation by which I may remind my readers, her Majesty’s subjects were, commercially, by far the greatest sufferers.[170]
Great increase of ship-building and high freights.
The extraordinary demands for shipping on the outbreak of war led to their production with still more extraordinary rapidity, and furnished, at the same time, the most convincing proofs that we had within ourselves resources far beyond all other nations for meeting the emergency of war, without the necessity of keeping up a large and expensive standing navy, especially as such a navy must always be in a state of transition. The high rates of freight then offered for transports, ranging from 20s. to 30s. a register-ton per month for sailing vessels, and from 35s. to 65s. per gross register-ton for steamers,[171] produced not merely all the vessels required for our own transport service,[172] but, also, for the wants of France, whose armies without our aid could not have been conveyed to the Crimea.[173]
With such rapidity, indeed, were sailing ships produced, that the supply not merely soon overtook, but greatly exceeded the demand; the consequence, of course, being a great reaction in prices. Steam-vessels, in the construction of which there had been a large amount of speculation, likewise felt ere long the depression, and before the close of 1855 the rates for these had fallen to 40s. and 35s. per ton per month: the surplus steamers, however, found their way, in the end, to the advantage of all concerned, into trades formerly carried on by sailing vessels.
Reaction.
Although the Russian war had created at first an unusual demand for vessels of every description, and had given an extraordinary impulse to ship-building, prudent shipowners soon foresaw that so sudden a rush of prosperity could not long endure without as sudden a revulsion, and “that it was fallacious to suppose that the same demand would continue even while the war lasted.”[174]
Transport service.
Nor was it less apparent that the number of vessels engaged by Government exceeded what was actually required for the prosecution of the war, and that, if hostilities continued, the number would be materially reduced as soon as something like an organised system had been established.[175] Such, indeed, proved to be the case; for, when a temporary Transport Board was appointed, various vessels were discharged, and the rates of freight for sailing ships, which had averaged 1l. 7s. 7d. per ton, fell to 15s. 10d. per ton. Indeed, there can be no doubt that, had there been a well-organised board in operation when war was declared, the sea transport service, which cost this country 15,000,000l. sterling during that brief and unhappy war, would have been far more efficiently conducted for two-thirds that amount.[176]
Great and unusual depression naturally followed the cessation of hostilities. Although wars and famines, however unfortunate and disastrous to the nation, afford rich sources of emolument to shipowners, the adverse reaction is frequently sudden and severe. Before the close of 1857, our markets had become so overstocked with vessels of every kind, that it was hardly possible to obtain for them, in any branch of trade, remunerative freights.
Depression in the United States.