With the heavy weight of taxation which we shall have to bear, an increased output of manufactures will be necessary if the prosperity of the country is to be restored. This will not be possible without an abundant supply of raw materials. The repatriation of our armies and the urgent need for raw produce would indicate that the Government will retain their control of shipping for some time after the war. The British and American Governments are building standard and wooden merchant ships, but they will not last long, and will have to be replaced by more substantial and suitable vessels. The prospect before shipowners, therefore, is that there will be a prolonged period of Government control and of high freights, which will greatly benefit neutral shipowners. And the serious question arises, how is the British merchant service to be built up again? The position is one full of difficulty. Prices of new ships will probably rule very high, and the Blue Book rates afford no encouragement to build. In America, France, and Germany the difficulty will probably be solved by the granting of subventions; but in this country we have a profound distrust of subventions, as they are invariably associated with Government control, which has always been destructive of enterprise. Nothing could be more unfortunate than the prolongation of the shipping control one day longer than is necessary. It is undoubtedly paralysing the industry, and any attempt, such as has been fore-shadowed, to nationalise shipping would be most disastrous. How could a State department administer the shipping industry of this country in competition with foreign private enterprise? The national control of our shipping and other leading industries may be expedient in the present war crisis, but it has taught us that the nationalisation of any industry penalises it with so many restrictions, and surrounds it with so many unnecessary difficulties that it is foredoomed to failure, and would inflict infinite damage to the prosperity of the country. Advances of money by the Government at a low rate of interest would no doubt be an encouragement--and those shipowners who can afford to be bold and accept the position will probably be rewarded; but to go on building ships at the very high prices may be beyond the prudent reach of the average private shipowner. This rather points to the creation of large companies. In shipowning, as in every other department of industrial life, "scale" may be the dominant factor, and the shipowning companies who, during the war, have been able to lay by large reserves, will find themselves in a position of great advantage. In view of the necessity for strengthening the hands of shipowners and enabling them to carry on in the difficult times before them, the Government is making a mistake in not giving more encouragement to shipowners.