tons of which 156,070 were steam and 271,265 sailing ships. In 1902-03 a
total of 800,334 tons was reached, of which 556,102 were steam and
244,232 sailing ships.[ET]

In 1902 the granting of bounties in the form of loans to ship-owners was
proposed, with the object of inducing them to buy Russian ships built of
Russian materials instead of foreign product. The scheme contemplated a
mortgage on the finished ship at fifty per cent of the actual cost,
without interest, to cover a period of twenty years, the loans to be in
equal yearly payments. The amount of the bounty was to depend upon the
difference between the cost of home-built and foreign-built ships. The
loans were to be made only on first-class sea-going steamers. The plans
and specifications were to be approved by the minister of finance before
building; and steamers of over one thousand tons register must show an
average speed of not less than ten knots on a six hours' trial; those
under one thousand tons, of not less than eight knots. In addition to
the loans the Government was to bear part of the expense of insurance.
To facilitate the export of Russian goods in Russian-built ships, a
rebate was allowed of half the expense of Russian coal used in steamers
carrying less than three-fourths of a full cargo on export, and one-half
cargo on import. It was estimated that this scheme for fostering
domestic shipbuilding would entail smaller drafts on the national
treasury than would the granting of direct construction and navigation
premiums.[EU]

Progress was checked appreciably by the war with Japan (1904-05). But
the year after, the empire was active again in advancing her interests
in the East, by systematically granting subsidies to steamship lines to
various Asiatic points.[EV] By 1909 the tonnage had been brought to a
total of 700,959 tons, approaching that of the year before the war. Of