to make new and direct commercial exchanges
with countries not now reached; (3) to develop new and enlarge old
markets in the interest of producers and consumers under the
reciprocity treaties completed and under consideration; (4) to assist
the promotion of a powerful naval reserve; (S) to establish a
training-school for American seamen."[HL]

Both bills passed the Senate, but the House rejected the Cargo Bill and
passed the Mail Bill only after amending it essentially. The subsidy
rate was cut one-third on steamers of the first class--the highest class
of ocean liners,[HM]--and was reduced on the second class. The act as
finally approved comprises the following features:

Empowering the postmaster-general to contract for terms of from five to
ten years with American citizens for carrying the mails on American
steamships between ports of the United States and ports in foreign
countries, the Dominion of Canada excepted; the service on such lines
"to be equitably distributed among the Atlantic, Mexican Gulf, and
Pacific ports." Proposals to be invited by public advertisement three
months before the letting of a contract; and the contract to go to the
lowest responsible bidder. The steamships employed, to be
American-built, owned and officered by American citizens; and the
following proportion of the crews American citizens, to wit: "during the
first two years of each contract, one-fourth thereof; during the next
three succeeding years, one-third thereof; and during the remaining time
of the continuance of such contract, at least one-half thereof." The
subsidized steamships are ranked in four classes: in the first class,
iron or steel screw steamships, capable of making a speed of twenty
knots an hour at sea of ordinary weather, and of a gross tonnage of not
less than 8,000 tons; second class, iron or steel, speed of sixteen
knots, 5,000 tons; third class, iron or steel, fourteen knots, 2,500
tons; fourth class, iron or steel, or wooden, twelve knots, 1,500 tons.
Only those of the first class eligible to the contract service between
the United States and Great Britain. All except the fourth class to be
constructed under the supervision of the Navy Department, with
particular reference to prompt and economical conversion into auxiliary
cruisers, of sufficient strength and stability to carry and sustain at
least four effective rifled cannon of a calibre of not less than six
inches; and to be of the highest rating known to