History of merchant shipping and ancient commerce, Volume 3 (of 4)

by W. S. Lindsay

Repeal Act unsatisfactory to the French Shipowners.

But the law of the 19th May, 1866, was very far from giving general satisfaction in France. Many French Shipowners were as loud in their complaints against it as the most noted Protectionist had been in England against the repeal of her Navigation Laws, and with, perhaps, more valid reasons. The new law did not give to them that freedom in the purchase or construction of their ships they had a right to expect. And though the duty of two francs per ton levied on every ship they purchased from a foreign country was insignificant, the restrictions, imposed on all materials necessary for the construction and equipment of vessels in their own country, were of a harassing and vexatious character. The measure in itself was good, but various classes of Protectionists, fearing that numerous articles might be imported which could be used for other than shipbuilding purposes, and thus interfere with their own particular branches of trade, had influence enough with the Legislature to obtain the issue of another decree[230] on the 8th June following, which nullified in some important respects the operation of the law of May 1866, and rendered it less beneficial to the people of France.

Under such vexatious restrictions it was impossible for the shipbuilder of France to compete successfully with those of other countries, as they were nearly as prejudicial to his interests as they would have been by the maintenance of the duties on all the articles he required. Competition in every branch of commerce throughout the world is so close, that, wherever the Legislature imposes not merely taxes but conditions, which, from their nature, must necessarily interfere with the course of business, and occupy a considerable portion of the shipbuilder’s time, which is a part of his capital, he cannot successfully compete with those of other countries where no such conditions are imposed.

Another Commission of Inquiry appointed, 1870.

Such restrictions, though in themselves comparatively unimportant, afforded the Shipowners of France a lever which they worked incessantly, hoping with the aid of the other Protectionists, to overthrow in time, the wise and liberal Act of the 19th May, or at least to abrogate its leading principles. At last the complaints from the seaports, and some changes in the administration of affairs, led to the appointment of a Commission or Parliamentary Committee, with powers to inquire not merely into the effect of these restrictions, but into the state generally, of the Commercial Marine of France, and on the best means of affording it assistance, should any be deemed necessary or desirable.

Although this Committee, which sat early in the year 1870, never concluded its labours, its minutes are interesting and instructive, from the depositions and discussions they embodied, and, more especially, from the important fact, that not a few even of the Shipowners themselves, who had previously doubted the policy of Free-trade as applicable to their own interests, had, within the previous five years, become converts to the advantages to be derived from unfettered commerce. But the larger portion of them were, as, in fact, Shipowners have long been in all countries, Protectionist. They contended that the French commercial marine was both absolutely and comparatively in a state of decline, caused, as they argued, mainly, by the abolition of the protective duties, which they held were necessary to prevent them from being ruined by foreign competition. Among the various causes they alleged, as rendering them unable to compete successfully with the vessels of other nations, was the want of “bulky freights,” in consequence of which their ships had frequently to leave France in ballast, or with incomplete cargoes; and, moreover, that “France, being at the western border of Europe, English, German, and other northern vessels, called at her ports, when not fully laden, to complete their outward cargoes, and compete for French freight with French shipping.”

Views of rival parties.

On the other hand, the partisans of Free-trade denied that French shipping had declined either absolutely or in comparison with the commercial marine of other countries. While conceding the point that the rates of freight had diminished, they maintained that such was the case in all other parts of the world; that this, therefore, was not in any way peculiar to France, such diminution of freight being, in fact, the natural consequence of a competition which, in the interests of the community at large, it would be as impossible as it was undesirable to prevent. Moreover, they showed that, where their Shipowners had kept pace with the movements of the age, by substituting iron for wood, and steamers for sailing vessels, whenever the requirements of the trade necessitated a change, and in cases, where the masters of these vessels themselves were enterprising and disposed to seek for freight, wherever it could be most advantageously procured, they had increased. Thus proving that the French commercial marine was fully able, if relieved from needless restrictions, to hold its own against that of any other nation. What they required was to have the “system of liberty more completely and logically applied” by the alteration or abolition of certain oppressive burdens; and by the removal of all troublesome, onerous, and, frequently, frivolous duties imposed by the French laws, besides a few other reforms which they specified.

But those Shipowners who favoured the Free-trade movement were, as has been the case in other countries, assailed as traitors by the adverse party, who taxed them with having selfish views, at variance with the true interests of French shipping, owing to their position of commission agents or shipbrokers, as well as of Shipowners; and, no doubt, these two interests were conflicting, inasmuch as the profits on the vessels might be made subservient to other and more lucrative sources of gain. But this is an old story, which has been frequently told, and those persons who, in this instance, used it as an argument, did not perceive that it was double-edged. Nor was it, indeed, conclusive, as, whatever the motives which prompted the arguments of the partisans of Free-trade, these arguments were good and sound in themselves. Besides, there were many shipowners in France in favour of Free-trade who had no other interests to serve.

M. de Coninck.