ifference in cost of British and American steamships _of the same
quality_. I do not deny that a teakettle may be cheaply rivetted
together anywhere.

Naturally, in this line of argument, I shall be met by the
oft-repeated question: "Do you then advocate the reduction of the
wages of our mechanics to the level of 'pauper labor' in Scotland?"
By no means but while explicitly in favor of such free trade in
general as will make a dollar go as far in the United States as four
shillings now go in Great Britain, I maintain that in the particular
industry of ship owning, so long as the necessity for higher wages is
imposed upon us, we ought to avail ourselves of any labor, "pauper"
or otherwise, by which steamships are built, because other nations
are so doing and are prosecuting for their manifest advantage this
vastly more important business upon the ocean, which we are forbidden
to engage in, because we cannot build ships. The homely illustration
at the close of the parable on the concluding page, is certainly
applicable. We are not allowed to whittle, because we cannot make
jack-knives.

On the other hand, my friend Mr. Roach will, if he is not engaged for
the moment in asking for subsidies for the very reasons I have just
adduced, most confidently assert that, on account of the superiority
of his machinery, and the energy of his workmen, attained by
"breathing the pure air of liberty," he can overcome all the
difference in wages, that he has already done so, and that he "can
now build steamships cheaper and better than they can be built upon
the Clyde."

Mr. Denny sends the following memorandum under date of February 5th,
1878:

"_Prices of steamers of various sizes similar to those at
present employed in the Atlantic passenger trade._

1st, 2,000 gross tons, speed on trial, 13 knots, cost L44,000
2d, 3,000 " " 13-3/4 " " 62,000
3d, 4,000 " " 14-3/4 " " 96,000
4th, 5,000 " " 16 " " 147,500

The whole of these prices include the builders' profit, which
has been put down at the usual one we expect for our work.

I enclose rates of payment our men get while employed on time,
but our boiler-platers work almost wholly by the piece. Also
rates paid to men in the ship-yard while on time, but this
system of payment has been almost entirely abandoned there in
favor of pie