The law enacted that year had for its declared purpose
the encouragement of American ocean steamship-building and running. With
this act, therefore, the real history of Government aid to domestic
shipping in this country begins.
At the time of the adoption of this policy America was still leading the
world in ocean sailing-ships with her splendid fleets of fast-sailing
packets and "clippers", while England had taken the lead in steamships.
The law of 1845 was the culmination of a move begun in Congress in 1841,
the year after the first Cunarder had crossed from Liverpool to Halifax
and Boston. Its aim was to parry England's bold stroke for maritime
supremacy with her State-aided steamship lines, and directly to "protect
our merchant shipping from this new and strange menace."[FU] The first
move of 1841 was for an appropriation of a million dollars annually for
foreign-mails carriage in American-owned ships.[FU]
The law of 1845 (March 3) authorized the postmaster-general to contract
with American ship-owners exclusively for this service to be performed
in American vessels, steamships preferred, and by American citizens, for
a period of from four to ten years, with the proviso that Congress by
joint resolve might at any time terminate a contract.
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