This one ship-subsidy law now on the statutes was in its original draft
one of two proposed measures, termed respectively the Mail Ship Bill and
the Cargo Ship Bill, both reported in the Senate by Senator William P.
Frye of Maine. The Cargo Bill provided for navigation bounties to
sailing-ships and steamers. The objects of these measures, as stated by
the promoters, were "(1) to secure regular and quicker service to
countries now reached; (2) to make new and direct commercial exchanges
with countries not now reached; (3) to develop new and enlarge old
markets in the interest of producers and consumers under the
reciprocity treaties completed and under consideration; (4) to assist
the promotion of a powerful naval reserve; (S) to establish a
training-school for American seamen."[HL]

Both bills passed the Senate, but the House rejected the Cargo Bill and
passed the Mail Bill only after amending it essentially. The subsidy
rate was cut one-third on steamers of the first class--the highest class
of ocean liners,[HM]--and was reduced on the second class. The act as
finally approved comprises the following features:

Empowering the postmaster-general to contract for terms of from five to
ten years with American citizens for carrying the mails on American
steamships between ports of the United States and ports in foreign
countries, the Dominion of Canada excepted; the service on such lines
"to be equitably distributed among the Atlantic, Mexican Gulf, and
Pacific ports." Proposals to be invited by public advertisement three
months before the letting of a contract; and the contract to go to the
lowest responsible bidder. The steamships employed, to be
American-built, owned and officered by American citizens; and the
following proportion of the crews American citizens, to wit: "during the