the state of the empire's mercantile marine, declared that Russia was
losing a vast sum annually through the lack of a sufficient commercial
fleet of her own, and yet no progress seemed to be making toward
increasing her tonnage. To remedy this unsatisfactory condition the
commission suggested the removal of the duty on ships built abroad for
Russia, and the free admission of all material necessary for ship
construction.[ER]

Favoring laws followed. By a measure of July that year (1898) ships
bought abroad, if destined for the foreign sea-borne trade, were
exempted for a period of ten years from the heavy duties levied on such
vessels.[EQ] The next year (1899) the coasting trade, reserved
exclusively for Russian ships, was extended to include navigation
between any two Russian ports in any seas; and, further to restrict this
trade to subjects of the empire, it was enacted that ships engaged in it
must be manned exclusively by Russian officers and seamen.[EQ]

At this period Russia's shipping industry, outside the Government works
for the construction of battle-ships, was of comparatively little
consequence. In the few extensive ship-yards river steamers, tugs, and
other small craft, built from Russian materials and by Russian workmen,
were chiefly turned out. The materials could be bought cheaper abroad,
but Russian labor was cheaper. According to the United States consul at
St. Petersburg, the wages of common workmen were then from fifty-one to
sixty-four cents a day, while skilled workmen were receiving but
seventy-seven cents to one dollar a day.[ES]

In the decade 1890-1901 the amount of subsidies expended directly to
encourage shipping increased rapidly, and the tonnage increased in
extent and importance. In 1890-91 the total tonnage stood at 427,335