INDEX United States shipping services in 1914... The United States Merchant Marine after the war. Contraction of the number of United States services following the post-war slump in shipping after 1920- - - New construction during the period 1920 to 1936. The vessel construction program of the United States Maritime Commission____ Adequacy of present sailings to meet the needs of inter-American trade... Subsidized and nonsubsidized United States flag services in inter-American trades.. Other American flag services. Foreign flag competition... Inter-American trade... Inter-American passenger traffic___ Anticipated inter-American trade in the post-war period.. TABLE IV. Statement showing United States imports of specified com- TABLE V. Statement showing United States exports to 18 American TABLE X. Statement showing number of passengers disembarking at 294448-41 6 67 Page TABLE XI. Statement showing the number and net registered tonnage of vessels entering United States ports from ports in the 18 American Republics each month during 1939, and the first 8 months of 1940.... TABLE XII. Statement showing the number and net registered tonnage of vessels clearing United States ports for ports in the 18 American Republics each month during 1939 and the first 8 months of 1940-----TABLE XIII. Statement showing United States exports of dry and tanker cargo to South American countries, for calendar years 1931, 1933, 1935, 1937, 1939. TABLE XIV. Statement showing United States imports of dry and tanker cargo from South American countries, for calendar years 1931, 1933, 1935, 1937, 1939_. TABLE XV. Statement showing a break-down of United States exports to the other American Republics carried by United States and foreign lines operating on regular services, as well as those operating on irregular services during 1938 and 1939 and the first 6 months of 1940................ TABLE XVI. Statement showing a break-down of United States imports from the other American Republics carried by United States and foreign lines operating on regular services, as well as those operating on irregular services during 1938 and 1939 and the first 6 months of 1940__. APPENDIX I Foreign trade of Argentina with selected countries for the years 1938 and 1939-estimated in dollars_ _ _ _ 84 85 86 86 87 888 89 Foreign trade of Bolivia with selected countries for the years 1938 and 1939 -estimated in dollars.. Foreign trade of Brazil with selected countries for the years 1938 and 1939estimated in dollars____ Foreign trade of Chile with selected countries for the years 1938 and 1939estimated in dollars... Foreign trade of Colombia with selected countries for the years 1938 and 1939-estimated in dollars. 91 Foreign trade of Ecuador with selected countries for the years 1938 and 1939-estimated in dollars___ 92 Foreign trade of Paraguay with selected countries for the years 1938 and 1939-estimated in dollars___. Foreign trade of Peru with selected countries for the years 1938 and 1939estimated in dollars... Foreign trade of Uruguay with selected countries for the years 1938 and 1939-estimated in dollars.. Foreign trade of Venezuela with selected countries for the years 1938 and 1939 estimated in dollars___ 94 Foreign trade of Mexico with selected countries for the years 1938 and 1939 estimated in dollars__. 94 THE DEVELOPMENT OF SHIPPING BETWEEN THE UNITED STATES AND THE OTHER AMERICAN REPUBLICS Dislocation in the world economy as a result of the conflict in Europe from 1914 to 1918 caused the center of economic activity to shift from that continent westward, and the United States gradually took over a substantial part of the services in international trade and finance previously performed by the United Kingdom and, to a lesser extent, certain continental European countries. Moreover, new trading facilities were developed, making possible a direct interchange between the United States and other raw material producing countries. In view of the disruptions caused by that war and the consequent changes in the international economy, it was to be expected that the other American Republics should turn to the United States to an increasing extent for their manufactured products, and conversely, that a greater quantity of raw materials should flow northward to the latter region. UNITED STATES SHIPPING SERVICES IN 1914 For the fiscal year ended June 30, 1914, the United States exported to the 20 American Republics movable goods amounting to $280,000,000 and imported from those countries commodities valued at $468,000,000. As of June 30 that year, out of 116 United States flag vessels engaged in regular services in foreign trade, 80 were employed in the trade between the United States and the other American Republics. These 80 consisted of 39 passenger ships and 41 cargo vessels. They were operated by 12 United States companies, all but 1 of which served nearby points in the Caribbean, Panama Canal, or the west coast of Central America region. There was no United States flag service to the important east coast South American markets; and the Grace Line, which maintained a service between New York and ports on the west coast of South America, was still operating on the long route around Cape Horn. The Panama Canal was not opened until several months later, and the largest enterprise operating in the intercoastal trade was that of the American-Hawaiian Steamship Co. which employed 24 vessels in a water-rail-water service by transshipment overland via the Isthmus of Tehuantepec in Mexico. When hostilities began in 1914 several hundred foreign vessels were withdrawn from their normal routes. Almost immediately the trade of the Americas with other world geographic regions was severely restricted and even inter-American commerce by water was badly disrupted. None of the American Republics was adequately equipped to care for its ocean transport needs much less to care for the expansion of inter-American trade which developed as the war became more intense. Mutual dependence upon shipping was emphasized to a marked degree and every effort was made by the United States to augment its vessel tonnage in order to facilitate the carriage of raw materials and finished manufactures moving in inter-American commerce. THE UNITED STATES MERCHANT MARINE AFTER THE WAR The efforts of the United States to provide the necessary transportation facilities to carry on its foreign commerce and to provide transportation for the wartime personnel and material needed in the prosecution of the war took the form of a very extensive shipbuilding program. Unfortunately this program had to be carried out under the stress of circumstances which called for construction in the shortest period of time. As a result, the vessels built under this program were designed for speedy construction rather than for the special requirements of particular trades or for economy or speed of operation. Shortly after the armistice the United States began to place in service on routes which were considered essential for the maintenance of its foreign commerce the large number of vessels which had been completed and were rapidly being delivered to the Government. The foreign trade of the United States with the 20 other American Republics had increased very materially during the war and immediately subsequent thereto; in 1920 it approximated $3,254,000,000, or about 24 percent of the total foreign trade of the Nation. This trade was clearly a very essential part of the foreign trade of the United States and it was so recognized in the allocation of the new ships. Approximately 135 of this Government's vessels were placed on 41 so-called "general cargo liner services" to continental South America alone. It is estimated that about one-fifth of the available tonnage of the United States merchant marine was utilized in serving all inter-American trade. CONTRACTION OF THE NUMBER OF UNITED STATES SERVICES FOLLOWING THE POST-WAR SLUMP IN SHIPPING AFTER 1920 As a result of the process of elimination and stabilization during the 1920's, the Government-controlled lines between the United States and South America and the Lesser Antilles were reduced to six; two operating between the Atlantic coast and the Brazil-River Plate ports, two between Gulf ports and the same area, one from the Pacific coast to the east coast of South America, and one from New York to the Lesser Antilles and north coast South American ports. In addition, the Government was also operating a service from North Atlantic ports of the United States to the Panama Canal and Caribbean region. At the same time private capital of the United States was operating vessels registered in the United States between North Atlantic and Pacific coast ports and ports on the west coast of South America. Meanwhile, United States flag services to the Caribbean and the Panama Canal region which had operated on these routes prior to the war continued their services without interruption and in fact expanded to some extent. There were also corporations of the United States who were offering transportation services between the United States and destinations in the other Republics and in the Caribbean with vessels flying foreign flags and under charter to those corporations. The United States Government made every possible effort to divest itself of the ownership and operation of the six services under its control and to place them in the hands of private capital. Efforts were also made, not only by the United States Government, but also by private capital interested in this American traffic, to improve the service both in number and design of ships and to increase the number of sailings. NEW CONSTRUCTION DURING THE PERIOD 1920 TO 1936 Under the Merchant Marine Acts of 1920 and 1928 the United States endeavored to bring its merchant fleet up to a standard suitable to meet its trade requirements. Between 1920 and 1936 special attention was given to the shipping lines serving the Western Hemisphere and there were constructed for the established private lines 20 new combination cargo-passenger vessels. In addition, 2 special car ferry type ships were built for the New York-New Orleans-Habana trade. The construction cost of these vessels was approximately $80,000,000. During this period only 2 new dry cargo ships were constructed in the United States and these were privately financed for the New York-Puerto Rico trade. In the meantime, European and Japanese transportation companies had been active in building new, speedier, and more economical vessels, many of which found service in inter-American traffic. THE VESSEL CONSTRUCTION PROGRAM OF THE UNITED STATES MARITIME COMMISSION With the creation of the Maritime Commission in 1936, a detailed study of the United States merchant marine was undertaken in 1937, and a report was submitted to the Congress. The result was a program for the rehabilitation of the merchant marine of the United States through the replacement of its wartime constructed vessels, which were rapidly becoming over age and which had been for some time more or |