their present rights. But on their seaboard 
they are open to injury, and they have 
there, too, a commerce which must be 
protected. This can only be done by 
possessing a respectable body of citizen 
seamen and of artisans and establishments 
in readiness for shipbuilding.” 
This expression of the essentiality of a reliable mer- 
chant marine to the commercial and security inter- 
ests of the Nation has been a dominant theme 
throughout the history of U.S. maritime policy. 
Although the new U.S. Government took imme- 
diate steps to promote, protect, and regulate U.S. 
shipping and Se ue most_early _fovernment 
assistance in support ¢ 
ment in the United | me was provided by Rea 
local_ governmental_units—However, by the early 
1800s serious consideration was being given to the 
idea that the Federal Government should assume a 
primary role in developing a national transportation 
system.° In 1808, Albert Gallatin, Secretary of the 
Treasury, proposed that the Federal Government 
undertake a comprehensive program of highway and 
waterway development to promote economic expan- 
sion and provide needed communication links be- 
tween populated areas. Although this concept re- 
ceived considerable support, and led to the 
construction of the Cumberland Road, most early 
waterway and highway projects remained the exclu- 
sive province of State and local governments. 
Despite the central role of State and local aid in 
this pericd, two important Federal programs were 
imitiated which have persisted in various forms 
throughout our history. In_1790, the Reven a- 
vine _(a predecessor of the Coast Guard) was estab- 
lished _as_a Federal maritime law enforcement 
agency, and in 1824 the Army Civil Works Progra m 
was begun in order to provide technical assistance 
in developing a national waterway system through 
the Army Corps of Engineers. Although these activ- 
ities have changed substantially over the years, the 
conceptual foundation oe at_least_partial Federal 
responsibility for = tation regulation and 
development was firmly Teanihed by these early 
actions. As is oe case with other modes of U.S. 
transportation, the water transport system is char- 
acterized by a general sharing of responsibility 
among private interests and State, local, and Federal 
governmental entities. 
Another important general characteristic of the 
U.S. water transportation system is the prominence 
of ocean shipping as a major component of both our 
domestic and international trade systems. Although 
it is the ccean component of the U.S. water trans- 
portation system which will be the focus of this 
study, it should be emphasized that this does not 
preclude consideration of domestic water carriage. 
Today coastwise, intercoastal, and noncontiguous 
domestic ocean commerce accounts for about one- 
fourth of all tonnage conveyed by water in the U.S. 
domestic trade. Furthermore, this domestic ocean 
movement is about one-third the size of total U.S. 
foreign trade. It is evident, therefore, that Govern- 
ment policies relating to the transportation uses of 
the sea affect not only our foreign trade transporta- 
tion system. but domestic transportation as well. 
Conversely, both foreign and domestic trade consid- 
erations must be included in the development and 
implementation of U.S. ocean transportation policies. 
Various dimensions of Federal ocean transporta- 
tion policy are examined in the following sections. 
For this assessment, the body of U.S. policy relating 
to ocean transportation is divided into three broad 
categories of Government activity. The first section 
examines Federal infrastructure policies, including 
activities relating to port and harbor development, 
aids to navigation and safety. and activities designed 
to improve the e compatibility ; of rater transportation 
with other national obj objectives. Whe second section 
reviews the economic regulatio on of ocean shipping, 
including an examination of both domestic and for- 
eign trade regulatory activities. | Finally, promotion 
of U.S. shipping and shipbuilding is analyzed. This 
last section assesses both direct and indirect Govern- 
— 
ment promotional activities. Each section includes a 
consideration of the background and major justifi- 
cations for Government involvement, an assessment 
of current policy, and a description of the present 
policymaking system. In addition, a brief discussion 
of some of the major contemporary policy issues in 
each area is included. 
The Marine Transportation Infrastructure 
maintenance of the marine transportation infrastruc- 
ture was a natural and early development in the 
United States. The importance of efficient trans- 
portation to economic expansion and communica- 
Government participation in the development al 
* Dudley F. Pegrum. Transportation Economics and Public 
Policy, 3rd ed. Homewood, Ill.: Richard D. Irwin, 1973, p. 67. 
tion, together with the large investments associated 
with port and harbor development, led inevitably to 
a substantial Government role in this area. The 
related need to assure safe, reliable operation of the 
water transport system compelled early Government 
Participation in the development o of standard naviga- 
tion procedures, | the provision of navigation aids aids, 
and the imposition of “marine 1c safety requirements. — 
V-2 
