possessions unless they had been especially authorized to do so
by an Order in Council.

8. Powers were given to the Queen in Council which enabled her to
impose differential duties on the ships of any foreign country
which did the same with reference to British ships; and also to
place restrictions on importations from any foreign countries
which placed restrictions on British importations with such
countries.

Finally, in 1849, with the adoption of the commercial policy founded on
freedom of trade, came the repeal of the restrictive code, excepting
only the rule as to the British coasting trade; and in 1854 the
restrictions on that trade were removed, throwing it also open to the
participation of all nations.

Meanwhile the British ocean-mail subsidy system for steamship service,
instituted with the satisfactory application of steam to ocean
navigation, in the late eighteen-thirties, had become established: the
first contract for open ocean service, made in 1837, being for the
carriage of the Peninsular mails to Spain and Portugal. Although
successful ventures in transatlantic steam navigation had begun nearly a
score of years earlier, the practicability of the employment of steam in
this service was not fully tested to the satisfaction of the British
Admiralty till 1838.

In this, as in so many other innovations, Americans led the way. The
first steamer to cross the Atlantic was an American-built and
American-manned craft. This pioneer was the _Savannah_, built in New
York and bought for service between Savannah and Liverpool. She was a