American ship-building was planned on grandiose lines, partly to make good the losses by submarine, partly to provide transportation for American troops to Europe, and partly for propaganda purposes in friendly and in enemy countries. The American program was an ambitious one. Inflated figures were offered for popular consumption and undoubtedly they were consumed and had their influence in securing a successful close to the struggle. While reports were coming from Great Britain telling of constant labor troubles on the Clyde and other ship-building localities, every item of news from Washington spoke of the marvelous achievements of American ship-building. One message read after eight months of the war had passed: "For the first time in history America has outdistanced England in her ship-building output." Foreign critics called attention to the fact that American figures of ship-building (1918) had a different basis of valuation from those of other countries. In one case there were vessels completed and entered for service, and in another there were vessels launched. The situation is presented by the London _Economist_: "British shipping, still in magnitude far beyond that of any of the Allies, is declining; it is still being sunk faster than it is being replaced. American shipping, on the other hand, is rapidly expanding, and has already turned the scale against the U-boats. The American Army in France as it is reinforced must become more and more dependent upon American ships for transport and supply. Up to the end of July the net loss in British shipping due to enemy action and marine risks since August, 1914, had been 3,851,537 gross tons. During the current year to July 31 we have lost 583,600 gross tons more than we have built. British sea power, the power to use the sea as measured in merchant shipping, is wasting. On the other hand, the net gain since August, 1914, in Allied and neutral shipping--to which the United States have largely contributed--was nearly 1,100,000 tons at the end of June this year, and was showing a very remarkable rate of expansion. Thanks chiefly to the United States, the Allied and neutral monthly gain now more than offsets the British loss. The critical corner has been turned. To those whose eyes look beyond the war, and who already anticipate a great American mercantile marine in competition with depleted British lines, we would point out that after all its losses British merchant shipping still amounts to over 14,000,000 tons gross, and that America's ocean-going tonnage built and completing--exclusive of captures--is as yet little more than 4,000,000. What the relative positions will be a year hence--or two years hence, should the war last so long--we do not venture to predict." THE FOURTH OF JULY SPLASH