This one ship-subsidy law now on the statutes was in its original draft one of two proposed measures, termed respectively the Mail Ship Bill and the Cargo Ship Bill, both reported in the Senate by Senator William P. Frye of Maine.  The Cargo Bill provided for navigation bounties to sailing-ships and steamers.  The objects of these measures, as stated by the promoters, were “(1) to secure regular and quicker service to countries now reached; (2) 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 maritime commerce.