Soon after the United States became independent, its Govern ment established a policy of industrial protection. This policy was extended to shipping and resulted almost immediately in a rapid increase of the volume of seagoing tonnage under the American flag. This is indicated in the table at the bottom of the page, authority for these figures being the division of research of the United States Maritime Commission.
The table in col. 2 of the preceding page shows United States shipping reached a peak at the time when sailing vessels were at the height of their development. In this type of shipping, United States shipowners and shipbuilders enjoyed advantages in the cost of construction of vessels which did not continue with the incom ing of the steam ship. Almost simultaneously with this latter de velopment, came the development of the railroad, large increases in the population, and a natural instinct, fostered by the govern ment, to explore and settle the interior regions of the United States ; all of which combined to divert national interest away from the sea. In the table below is shown the percentage of United States cargoes carried in United States vessels over a period of about one hundred years.
The outbreak of war in 1914 indirectly resulted in a severe dis location of ocean traffic through American ports due to the diver sion of European vessels regularly operated in the United States trades to military usage. This situation gave rise to Congressional consideration of the shipping problem which resulted in the passage of the Shipping Act of 1916. This act was designed to create a board which would regulate shipping passing through American ports and make researches which would lead the way for further development of a national shipping program. With the entrance of the United States into the World War and following the call on its Government for ships to assist the Allies in convey ing troops and supplies across the Atlantic, the shipping board was utilized by the president of the United States as an agency for carrying out the largest shipbuilding program of history.
In the course of this program covering a period of four years, a total of 2,314 ships, aggregating 13,636,967 deadweight tons, was built. In addition to the construction of vessels, much tonnage was secured from other sources. The entire program is indicated in the following table: Hostilities ceased prior to the time construction on the majority of the new tonnage was completed, but most of it was well on the way before the signing of the armistice and contracts for its corn pletion had been made.
To solve the problem presented by this fleet's existence the Merchant Marine Act of 192o was passed. Trade routes necessary to the foreign trade of the United States were established and then without dislocation of service were transferred to the owner-. ship of citizens of the United States for private operation. To further facilitate this private operation and to better meet the foreign competition on many of the trade routes, Congress passed the Merchant Marine Act of 1928. Under the terms of this Act 42 new ships were constructed and 4o ships were reconditioned.
By 1936, both as the result of the world wide depression and certain inadequate terms of the 1928 Act, it was found necessary to both replace the former mail pay contracts under which most of the private operators in the foreign trade were operating, and also to speed up the replacement of obsolete tonnage, and Congress passed the Merchant Marine Act of 1936.
Under the terms of this Act the former United States Shipping Board Bureau and the Merchant Fleet Corporation were abolished and they were replaced by the United States Maritime Commis sion.
Also the former mail pay contracts were cancelled and in their stead were given direct ship construction and ship operating subsidies.
There was formulated a 1 o-year replacement program calling for Soo new ships or 5o ships per year. The first of these new ships was launched in 1939.