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is the repeatedly declared policy of the United States.

In this connection I repeat my former recommendations that a portion of
the gold holdings shall be placed in a trust fund from which greenbacks
shall be redeemed upon presentation, but when once redeemed shall not
thereafter be paid out except for gold.

The value of an American merchant marine to the extension of our
commercial trade and the strengthening of our power upon the sea invites
the immediate action of the Congress. Our national development will be
one-sided and unsatisfactory so long as the remarkable growth of our
inland industries remains unaccompanied by progress on the seas. There
is no lack of constitutional authority for legislation which shall give
to the country maritime strength commensurate with its industrial
achievements and with its rank among the nations of the earth.

The past year has recorded exceptional activity in our shipyards, and
the promises of continual prosperity in shipbuilding are abundant.
Advanced legislation for the protection of our seamen has been enacted.
Our coast trade, under regulations wisely framed at the beginning of the
Government and since, shows results for the past fiscal year unequaled
in our records or those of any other power. We shall fail to realize our
opportunities, however, if we complacently regard only matters at home
and blind ourselves to the necessity of securing our share in the
valuable carrying trade of the world.

Last year American vessels transported a smaller share of our exports
and imports than during any former year in all our history, and the
measure of our dependence upon foreign shipping was painfully manifested
to our people. Without any choice of our own, but from necessity, the
Departments of the Government charged with military and naval operations
in the East and West Indies had to obtain from foreign flags merchant
vessels essential for those operations.

The other great nations have not hesitated to adopt the required means
to develop their shipping as a factor in national defense and as one of
the surest and speediest means of obtaining for their producers a share
in foreign markets. Like vigilance and effort on our part cannot fail
to improve our situation, which is regarded with humiliation at home
and with surprise abroad. Even the seeming sacrifices, which at the
beginning may be involved, will be offset later by more than equivalent
gains.

The expense is as no