BOSTON, MASS.
September 1, 1911.






CHAPTER I

INTRODUCTORY


The term _subsidy_, defined in the dictionaries as a Government grant in
aid of a commercial enterprise, is given different shadings of meaning
in different countries. In all, however, except Great Britain, it is
broadly accepted as equivalent to a bounty, or a premium, open or
concealed, directly or indirectly paid by Government to individuals or
companies for the encouragement or fostering of the trade or commerce of
the nation granting it.

Ship subsidies are in various forms: premiums on construction of
vessels; navigation bounties; trade bounties; fishing bounties; postal
subsidies for the carriage of ocean mails; naval subventions; Government
loans on low rates of interest.

In Great Britain they comprise postal subsidies and naval subventions,
ostensibly payments for oversea and colonial mail service exclusively,
or compensation for such construction of merchant ships under the
Admiralty regulations as will make them at once available for service as