Appreciating the numerous property and credit connections that radiate from the leading shipping, banking, and insurance interests at practically every center of foreign trade, British commercial interests have long realized the advantages of coöperation between these three complementary factors, since each can be made to serve and hasten the growth of others. Not only have the British insurance companies been encouraged to unite into huge combinations through actual consolidation or community of interests, but they have been permitted, unlike the practice of this country, to write numerous kinds of insurance with a view to reducing their overhead expenses, to enlarging their underwriting facilities to the utmost, and to enabling them to meet the full insurance needs of their clients. Nor is there the slightest hesitancy in cooperating with other commercial agencies to acquire business. English bankers throughout the world, for example, have arrangements with English insurance companies whereby they provide insurance for their clients-fire insurance to protect their loans on goods while in process of production, and marine insurance to protect their loans when the goods are ready for export. Consult the directorates of British insurance companies and it becomes clear how judiciously the leading shipping, banking, and commercial interests are represented. And then consult the directorates of leading shipping, banking, and commercial interests, and it again becomes clear how judiciously the insurance interests are represented. Each factor helps the others through a proper association of business interests, until the whole foreign trade equipment—shipping, banking, and insurance—is judiciously knit together into one great force capable of pursuing a united and intelligent policy.

The benefits arising from such united action are considered and they include, among others, the power thus given in the preempting of leading lines of trade; the advantage of having underwriting facilities always available; the facility in adjustment of losses; and the proper safeguarding of commercial information. In the light of such advantages the writer takes the ground that there is no reason why the United States, with its great wealth and the facilities available, should allow two thirds of its marine insurance business to flow into foreign hands, as is now the case.

The recommendations of the subcommittee covered six pages and are far reaching and ambitious in scope. They are based, it would seem, upon the idea that there is a pressing necessity for foreign trade development on the part of this country and that American marine insurance, controlled by citizens of this country, is a necessary and effective part of the machinery for developing foreign trade. As stated (p. 75):

All evidence leads to the conclusions that a strong and independent national marine insurance institution is an absolute necessity to a nation's foreign trade equipment, that such an institution does not exist in the United States today, and that it is imperative to adopt ways and means to correct the present impossible situation if this country is to meet the strenuous international rivalry that the new era is certain to inaugurate. There can be no doubt, judging from

the manner in which our competitors are now seeking to undermine this branch of underwriting, that marine insurance will be used, as probably never before, as a national commercial weapon for the acquisition and development of foreign markets. Failure to act now in strengthening our marine insurance facilities and placing them in an independent position free from foreign control, cannot be regarded otherwise than as the neglect of a duty and an opportunity. The loss of the present rich opportunity will soon be bitterly regretted, but it will be too late to undo the mischief.

Marine insurance is more than a fundamental agency of commerce, and its importance extends beyond the ordinary service of protecting property and credit. Its use as a competitive weapon in international trade has been demonstrated to your committee in many ways. From this viewpoint, the advantages of possessing strong, independent underwriting facilities are undeniable.

The above sentences and others that could be quoted make it apparent that the congressional subcommittee believes that our present-day facilities for handling marine insurance are entirely inadequate, and that foreign control of two thirds of our marine insurance is a situation to be deplored.

The reasons for such far-reaching foreign control, mainly on the part of the British, are indicated. In a word, British companies are favored by such factors as a world market of long-time development; by a wide spread of business and of reinsurance facilities; by freedom on the part of companies either to combine or to form communities of interest; by freedom to write numerous forms of insurance; by a much lighter tax burden than is borne by American companies; by smaller overhead charges; and by the support of their own merchants and vessel owners.

The conclusions reached by the committee as to remedies for existing conditions in this country embrace several lines of action such as the formation of a comprehensive insurance bureau for the purpose of reinsurance; assistance on the part of the federal government; and state help through the removal of "unnecessary and paralyzing legislative restrictions."

The reinsurance bureau or exchange should be composed of American companies and be open to all willing to agree to conform to reasonable requirements. As a matter of fact, such a bureau is said to be in process of formation. The federal government could assist in remedying existing conditions, in the opinion of the committee, by going out of the marine insurance business itself, and by having all departments of the government which now place insurance with private interests divert such business to the proposed new bureau, especially if the rates offered by it are sufficiently attractive. It is also suggested that federal assistance can be given along other lines, notably by assuring marine un

derwriters of the legality of forming associations and combinations designed to facilitate reinsurance, and by repealing the federal tax of one per cent on marine insurance premiums. It is urged that the state governments should pass remedial legislation notably with respect to taxation and the granting of permission to a single company to engage in several lines of insurance.

Yale University.

AVARD L. BISHOP.

PERIODICALS

The REVIEW is indebted to Robert F. Foerster for abstracts of articles in Italian periodicals, and to R. S. Saby for abstracts of articles in Danish and Swedish periodicals.

Economic History (United States)

(Abstracts by Amelia C. Ford)

BEDFORD, J. R. Tour in 1807 down the Cumberland, Ohio, and Mississippi Rivers from Nashville to New Orleans. Tenn. Hist. Mag., July, 1919. Concluded from a previous number.

BRADLEE, F. B. C. Some account of steam navigation in New England. Essex Inst. Hist. Coll., Apr., 1920. Pp. 32. In this number, an account of steamers running to Maine, New Brunswick, and Nova Scotia. A continued article.

BURNS, L. The national road in Indiana. Indiana Hist. Soc. Pubs., vol. 7, no. 4, 1919. Pp. 28. Traces the history of this road, its location, construction, the traffic over it, inns, etc.

CONDICT, L. Journal of a trip to Kentucky in 1795. Proc. N. J. Hist. Soc., Single issue-Jan. to Oct., 1919.

CUNNINGHAM, C. H., editor.

A group of four financial reports relating to Louisiana, 1766-1788, in the section of documents. Miss. Hist. Rev., Dec., 1919.

DENSMORE, B. Journal of an expedition on the frontier. Minn. Hist. Bull., Nov., 1919. Pp. 43. A surveyor's record of the extreme difficulty of travel in the Minnesota wilderness in 1857, and of the occasional settler and claimjumper found there.

FOGLE, L. Journal of Ebenezer Chamberlain of a trip from Maine to Indiana, 1832. Indiana Mag. of Hist., Sept., 1919. Pictures travelling facilities, social customs, and variety of settlers found on the journey.

HEPBURN, A. B. New York and the national banking system. Quart. Journ. N. Y. Hist. Assoc., vol. 1, no. 2, Jan., 1920.

INGALSBE, J. L. Northwestern Iowa in 1855. Iowa Journ. Hist. & Pol., Apr., 1920. Pp. 30. Includes an account of the prices and methods of surveying the public lands, the instruments used, and hardships encountered. IVEY, P. W. The Père Marquette Railroad Company. Mich. Hist.. Comm. vol., Univ. series, V. Pp. 59. A study largely from the financial side. JOHNSON, I. A. The Michigan fur trade. Mich. Hist. Comm. vol., Univ. series, V. Pp. 203. Surveys the rise and growth of the fur trade within the boundaries of Michigan under the French, British, and American régimes, with a study of the respective policies, and describes the life of the traders, their relations to the red men and to each other.

LANDIS, C. I. Captain William Trent, an Indian trader. Papers read before The Lancaster County Historical Society, Dec. 5, 1919. Pp. 10.

LEWIS, W. S. Francis Heron, fur trader. Wash. Hist. Quart., Jan., 1920. An account of Francis Heron, fur trader in the service of the Hudson's Bay Company in the Northwest from 1810, and a chief trader from 1828 to 1838, and of his son George Heron, born in 1834 and still living. Luz, A. N. Philippine economic development under American sovereignty. Bankers Mag., Apr., 1920. Pp. 6. A presentation of statistics showing chiefly the commercial development of the Philippines, with some reference to industry and finance, during the last twenty years.

MARSHALL, T. M. The miners' law of Colorado. Am. Hist. Rev., Apr., 1920. Pp. 14. Gives the substance of the various codes of law enacted by the miners in 1859-1861; shows they dealt mostly with lode claims, mining rights, lawsuits, organization of government, crimes, etc.

PERRING, T. C. The New Albany and Salem railroad. Indiana Mag. Hist., Dec., 1919. Pp. 21. Sketches reminiscently the origin and primitive characteristics of this local road during the fifties.

RECORDS, S. Pioneer experiences in Pennsylvania, Kentucky, Ohio, and Indiana, 1766-1836. Indiana Mag. Hist., Sept., 1919. Pp. 31. Contains a few scattered references to primitive economic conditions on the frontier. SHIPPEE, L. B. Steamboating on the upper Mississippi after the Civil War: a Mississippi magnate. Miss. Valley Hist. Rev., Mar., 1920. Pp. 33. Ably describes the Jay Gould methods of business as carried on between 18651875 in transportation on the Mississippi, the attacks on the steamboat monopoly, relations between the railroads and river lines, and reasons for the decline of the latter.

YOUNG, F. G. Spain and England's quarrel over the Oregon country. Oregon Hist. Soc. Quart., Mar., 1920. Pp. 8. Refers briefly to the fur trade on the Pacific coast before 1800, telling of the prodigious profits, the ships engaged in the business, and the evasions practised.

Economic History (Foreign)

BYRNE, E. H. Genoese trade with Syria in the twelfth century. Am. Hist. Rev., Jan., 1920.

DEWAVRIN, M. L'industrie minière et métallurgique au Canada. Journ. Soc. Stat. de Paris, Apr., 1920.

LEPELLETIER, F. Le mouvement économique et social. Réf. Soc., Mar. 1, 1920. MARTIN, P. F. The finances of Mexico. Finan. Rev. Rev., Mar., 1920. MORET, J. La question du change vue de Suisse. Rev. d'Econ. Pol., Mar.Apr., 1920.

MORGAN, J. K. Industrialism in Wales. Edinburgh Rev., Jan., 1920.

PAYEN, E. La Belgique: sa situation économique et financière. L'Econ. Franç., Apr. 3, 1920.

RAFFALOVICH, A. Quelques aspects économiques et financiers de l'Allemagne. L'Econ. Franç., Apr. 24, 1920.