States of this Union. Another could well be devoted to the history of lake navigation, which it is no overstatement to pronounce the most impressive chapter in the history of the American merchant marine. In this volume, however, but brief attention can be given to either. The figures show how honorably our whole body of shipping compares in volume to that operated by any maritime people. Our total registered shipping engaged in the fisheries, coastwise, and lake traffic, and foreign trade numbered at the beginning of 1902, 24,057 vessels, with an aggregate tonnage of 5,524,218 tons. In domestic trade alone we had 4,582,683 tons, or an amount exceeding the total tonnage of Germany and Norway combined, or of Germany and France. Only England excelled us, but her lead, which in 1860 was inconsiderable, in 1901 was prodigious; the British flag flying over no less than 14,261,254 tons of shipping, more than three times our tonnage! It is proper to note that more than two-thirds of our registered tonnage is of wood. [Illustration: THERE ARE BUILDING IN AMERICAN YARDS ] I have already given reasons why, in the natural course of things, this disparity between the American and the British foreign-going merchant marine will not long continue. And indeed, as this book is writing, it is apparent that its end is near. Though shipyards have multiplied fast in the last five years of the nineteenth century, the first years of the new century found them all occupied up to the very limit of their capacity. Yards that began, like the Cramps, building United States warships and finding little other work, were soon under contract to build men-of-war for Russia and Japan. The interest of the people in the navy afforded a great stimulus to shipbuilding. It is told of one of the principal yards, that its promotor went to Washington with a bid for naval construction in his pocket, but without either a shipyard or capital wherewith to build one. He secured a contract for two ships, and capital readily interested itself in his project. When that contract is out of the way the yard will enter the business of building merchant vessels, just as several yards, which long had their only support from naval contracts, are now doing. There were built in the year ending June 30, 1901, in American yards, 112 vessels of over 1000 tons each, or a total of 311,778. Many of these were lake vessels; some were wooden ships. Of modern steel steamers, built on the seaboard, there were but sixteen. At the present moment there are building in American yards, or contracted for, almost 255,325 tons of steel steamships, to be launched within a year--or 89 vessels, more than twice the output of any year in our history, and an impressive earnest for the future. Nor is this rapid increase in the ship-building activity of the United States accompanied by any reduction in the wages of the American working men. Their high wages, of which ship-builders complain, and in which everyone else rejoices, remain high. But it has been demonstrated to the satisfaction, even of foreign observers, that the highly-paid American labor is the most effective, and in the end the cheapest. Our workingmen know how to use modern tools, to make compressed air, steam, electricity do their work at every possible point, and while the United States still ranks far below England as a ship-building center,