"Under all
circumstances," they concluded, "we are of the opinion that, considering
the already large and continually increasing means of communication with
the United States, there is no longer any necessity for fixed subsidies
for a term of years in the case of this service."[AS] This
recommendation, however, was not accepted, and the contracts were duly
ratified.
The report of this Parliamentary committee is significant in the
evidence it indirectly affords, confirming the declaration of
1853,[AT]--that the postal subsidies were not as assumed, payments
solely for services rendered, but in fact were concealed bounties.
In 1871-72, when a renewed effort was made to establish an American
line of American-built ships,[AU] the British subsidies were again
increased. Then, also, was instituted by the Admiralty the naval
subvention system--the payment of annual retainers to certain classes of
merchant steamers, the largest and swiftest, in readiness for quick
conversion into auxiliary naval ships in case of war, and to preclude
their becoming available for the service of any power inimical to
British interests.
At the expiration of the Cunard and Inman seven years' contracts the
postmaster-general applied the principle of payment according to weight
throughout for the carriage of the North American mails.
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