FOREIGN MARKETS 137 



south of Shanghai and the ports in French China. Her nearest 

 European rival, Hongkong, she need not fear, for Hongkong 

 has no warehouses and no local products, and is commercially but 

 a city of office buildings. Her vast shipping trade is a mere paper 

 record of tonnage passing by but rarely discharged. Hongkong, 

 moreover, is at a point slightly off the direct route of the most im- 

 portant lines of trade; Manila at a point where many lines of sail and 

 steam travel naturally converge or pass, and directly on the main 

 route from northern Asia to Australia. Imports into the Philippines 

 via Hongkong dwindled from $4,600,000 in 1900 to $500,000 in 1903 

 under the influence of direct steamer connection with northern 

 Asiatic ports. A day for a ship in Hongkong Harbor waiting for 

 orders usually means a day lost in idleness of men and capital, an 

 item of necessary expense, perhaps, but with nothing directly to 

 offset it on the profit side of the account nevertheless; while a day 

 in Manila Bay, by contrast, is one of busy activity and with a distinct 

 profit to offset expense. With rice and cotton goods inbound, abaca, 

 copra, and sugar outbound, Manila has business for a steady stream 

 of vessels; and as a collecting-point for spices, for Chinese table deli- 

 cacies, such as beche de mer and birds' nests, and for shell and similar 

 valuable items all northbound, she has no rival save Singapore, and, 

 although for silk, coffee, and spices westbound she has to compete 

 at some disadvantage with Singapore and Bangkok, she has no rival 

 when the same wares are eastbound. Tea is the only great staple 

 of Oriental export in which Manila cannot deal with advantage. 



It is obvious that Manila can again be made a very great emporium, 

 and whatever tendency there may be under the flag to turn these 

 valuable wares which can be assembled there over an eastbound 

 instead of a westbound route tends to increase its importance. In 

 this respect it is a great pity that the exigencies of the revenue sys- 

 tem have not allowed the United States Government to make Manila 

 a free port like Singapore. To be sure, the methods of modern trade 

 do not demand, to the same extent as in the past, the gathering of 

 wares by small ships at great ports to be finally transported to their 

 destination in larger vessels. The large steamers of to-day have so 

 many ports of call that the territory contributing to any one depot 

 is limited. But Manila is so situated that the territory naturally 

 tributary to her is large. The entrepot business of Manila at the 

 present time is limited to products of the Philippines, and though 

 large, is but a small fraction of what it should be. The existence of 

 a custom-house, with the necessary inspection, delay, tonnage-duties, 

 port-charges, etc., even though duties are remitted on goods intended 

 for re-exportation, involves such a burden that a port so afflicted 

 cannot become a collecting center, save for goods produced within 

 the tariff wall. To afford Manila a chance to rehabilitate herself 



