e was foreshadowed favorable to England, hostile to
the United States. It was the change from sail to steam. The
utilization of iron as a ship-building material, the cheapening of
fuel, the superior speed, all betokened a radical change in
transportation on the principal ocean routes of the world. From the
close of 1856 to the outbreak of the rebellion the average loss to
the Navigation interests of the United States was two per cent
annually. This ratio of loss was immensely accelerated by the course
of events during the civil war, involving the utter destruction of
many American vessels or their change of flag. The natural result was
that in the spring of 1865 we stood in the carrying trade relatively
and absolutely far behind our position in 1855.

Practically, nothing has since been done to recover the lost ground.
Provision was made by Congress for the admission of certain ship-building
materials free of duty. This somewhat improved the prospects and
stimulated the construction of sailing vessels; but the competition
in the world's carrying-trade is in steam-vessels. Great Britain had
for many years covered the ocean with subsidized steamers, paying
heavily for mail service until the lines were self-supporting, and
withdrawing her aid only when competition could be safely defied.
Congress steadily refused to enter upon any system of the same kind.
Fitful aid was granted to special lines here and there, but no general
system was devised, and the aid extended being temporary and
accompanied sometimes by scandals in legislation was in the end rather
hurtful than helpful.

Meanwhile the products we were exporting and importing enlarged so
rapidly that we were giving more cargoes to ships than any other
nation of the world,--furnishing in the year 1879 between thirteen
and fourteen million tons of freight, and this altogether exclusive of
our coasting trade. Some very extreme cases occurred, strikingly
illustrative of the reluctance of Congress to help the American
carrying trade. It was shown by statistics that we were exporting
to Brazil not over $7,000,000 of our own products, and taking from her
over $40,000,000 of her products. We had no steam communication with
Rio Janeiro, except by way of Europe. In 1876 the Emperor of Brazil,
an able and enlightened monarch, visited the United States. As a
result of his inquiries and examinations His Majesty expressed a
sincere desire for closer commercial connect