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

by W. S. Lindsay

Burdens to be removed from Shipowners.

The debate was adjourned to the 13th of March, when it was resumed by Mr. Gladstone, with his usual ability, in an elaborate speech. He supported the second reading of the Bill, as furnishing the only opportunity of inducing the House to agree to a change in the Navigation Laws. He denied that this change would be the destruction of the shipping interests, and thought it was a fitting time for effecting numerous alterations. Mr. Gladstone, however, differed from many who supported the measure. His doctrine was still that they should not abandon the path of experience. In his opinion, it was only on principles analogous to those of Mr. Huskisson that we could safely depart from the system of navigation we had so long pursued, interwoven as this had been, for centuries, with our national policy. There were several demands the shipowner might fairly make upon the Legislature when about to be deprived of protection. He was entitled to the removal of every peculiar burden by which he was now hampered. If we exposed him to unrestricted competition with foreigners, we should give him a drawback, or a remission of the duties on the timber he required for the construction of his ships. He should also be relieved from the restraint with respect to the manning of his ships. There was another compensation to which the shipowner was entitled. By repealing the Navigation Laws, he would have to undergo competition from the Baltic, sharp as far as it went, and from the United States, all over the world. He was therefore entitled to ask that he should be admitted to those fields of employment from which he was then excluded. The policy pointed out by experience, Mr. Gladstone contended, was that of conditional relaxation. He had never entertained the notion that we should proceed by treaties of reciprocity with foreign Powers. There were difficulties in the way of doing so which a wise Legislature would avoid. The American system, so far as it went, should be our model. By adopting it, he considered that difficulties inseparable from the system of reciprocity treaties would be avoided.

Conditional legislation recommended.

The immediate effect of conditional relaxation would be to give vessels of such States as conferred privileges on our shipping corresponding advantages in our ports. Such a course would be in accordance with precedent and experience; was demanded by justice, and would be found easier of execution than the plan proposed by the Queen’s Government. There was in his mind an insuperable objection to any form of retaliation. Every word urged against the system of reciprocity told with augmented force against that of retaliation. He would join in opposing that feature of the plan, regarding it, as he did, as a material defect. But if Government would not consent to legislate on the subject, conditionally, he would advise it to do so directly, without the accompaniment of retaliation. In fact, the conditional system was that on which we now, practically, acted with regard to many of the maritime nations of the world.

Views on the subject of the coasting trade.

Americans not Free-traders.

Smuggling in the coasting trade.

There was another feature in the Government proposition Mr. Gladstone regarded as defective. He was of opinion that the mode in which it proposed to deal with the coasting trade would be found ineffectual. Before we could expect to get the advantage of the American coasting trade we must throw our own unreservedly open to that country.[110] Any chance we could have of getting from America a share of her coasting trade must depend upon our offering her our entire coasting trade, leaving her perfectly free to accept it or not, under the regulations now affecting British ships engaged in it. But we must not expect of America that she would fetter herself towards other countries by those particular regulations which it was proposed to lay down, and which do not give up the whole coasting trade, but only portions of it; to any such regulations we could not expect that America would agree. “If we proceed by unconditional legislation, and offer up our colonial trade instead of giving up our coasting trade, I believe she will get our colonial trade, and may then be ready to give up some comparatively insignificant advantages in return; but America is not a lover of Free-trade in the abstract. The Protectionist principle is very strong in America,” he continued, “although it is not so strong with reference to shipping as to manufactures.”[111] For these and other reasons Mr. Gladstone insisted on the expediency of throwing open the coasting trade to the foreigner, “if he could find his way into it.”[112] At present the uniform and invariable rule, he added, is to insist on the strictest possible separation between the outward and inward-bound goods, between foreign trade goods and goods coastwise; and, in point of fact, with a system of drawbacks and high duty goods, there would be the greatest danger to the revenue, or we must undergo the most enormous expense, if we do not insist on the separation of cargoes. But if a vessel is allowed to take in goods to carry coastwise, duty paid, she might be taking in tobacco in Liverpool, duty paid, to carry it coastwise, while at the same time she was discharging tobacco at Liverpool, not duty paid. This would be fraught with great danger. Mr. Gladstone then pointed out the conflicting interests of various colonies; and that the only way to render justice to all was by conditional legislation.

Mr. Robinson.

The substance of the speech of Mr. Robinson, Chairman of Lloyd’s, who followed Mr. Gladstone, was, in the event of the Bill passing, to claim indemnity for the shipowner. Would Government, he asked, take the duty off timber; the duty on the timber for a vessel of 200 tons being 300l.? There was also the duty on marine assurances; and, indeed, all the taxes now pressing on the British shipowner, but from which the foreigner was free. Would Government relieve the shipowner from the apprenticeship restrictions, and allow him to man his ship with foreign seamen? Government, he felt sure, could not give any such assurance, and if they did and the promise was realised, Mr. Robinson doubted if, even then, the British shipowner could compete successfully with the foreigner.