" Scrap and Build" It is evident that the President
of the Board has been surprised at the opposition to the proposal that owners should send their older and less efficient tonnage to the shipbreakers and that the Government should advance funds, at not more than 3 per cent. interest and repayable over a period of twelve years, to enable them to build new tonnage in the proportion of one new ton to three old tons. The scheme also embraces the modernization. of existing ships. Mr. Runciman's case rests on the advance in ship design and equipment which the metallurgist, the marine engineer and the naval architect have brought about. A vessel can be built today of twice the tonnage and using only the same amount of fuel for the same speed as a ship of ten or fifteen years ago. Germany, Italy and Japan have adopted scrap and build policies, the respective Governments giving financial aid. The proportion of old tonnage in the British Mercantile Marine is small, but the breaking up of the least efficient ships would raise the standard of efficiency of all British shipping. On the other hand, many owners have written down the old vessels in their books to a nominal figure, and claim that if new ships are not built conditions in the freight markets may enable those ships to earn a profit. There are others who are only nominally owners of such tonnage. The real owners are the banks. During the past year or two, they have forced a good many ships on the sale market.
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