74 



Social Welfare^ in explanation of the causes which have brought 

 about a temporary depression of particular trades in England, 

 two immediate causes of depression in all machine-using coun- 

 tries. The first is the changes produced by science in the 

 economy of distribution. By the opening of the Suez Canatl, 

 the old route round the Cape of Good Hope has been superseded 

 by the shorter and more economical route through the Suez 

 Canal. The time occupied during the voyage — from six to 

 eight months for sailing vessels — has been shortened to thirty 

 days. By the substitution of iron steamers carrying the com- 

 merce of the Western Hemisphere through the Suez Canal, a 

 tonnage estimated at two millions was practically destroyed, and 

 vast arrangements in commercial industry were displaced. In 

 the old system of long voyages, large storehouses of goods had 

 to be provided for the shipping interest, not only in foreign 

 ports, but also in England, which became the centre of bank- 

 ing, ware-housing and exchange. All this was altered by 

 electricity. The discoveries and appliances in the science of 

 electricity — the telegraph, telephone and electric lighting — 

 have created new labour, but have at the same time displaced 

 a great amount of other labour. In the United Kingdom 

 upwards of 42,000 persons are employed on work depending on 

 electricity, while probably throughout the world more than 

 300,000 persons win their subsistence by the recent applications 

 of this science. The amount of labour which it has displaced 

 cannot be calculated. The whole method of effecting exchanges 

 has been altered, because communication with other countries 

 is now immediate ; the consumer and the producer in opposite 

 parts of the globe making their bargains in a single hour 

 without the intervention of mercantile agencies or the large 

 ware-house system, which former methods of commerce required. 

 The Suez Canal and improved telegraphy made great demands 

 for quick and economical distribution of material. Numerous 

 steamers were built between 1870 — 73 for this purpose, but so 

 rapid were the improvements that they were all displaced two 

 years afterwards (1875-76) and sold at half their cost. Iron 

 has been largely substituted by steel, both on land and at sea, 

 Bessemer's invention having destroyed wealth; but like the 

 phoenix new wealth has arisen from its ashes. A ship which 

 in 1883 cost £24,000 can now be built for £14,000. The 

 economy of fuel has been very great. Shortly before the 

 opening of the Suez Canal, the best steamers crossing the 

 Atlantic expended 200 tons of coal to carry an amount of cargo 

 which can now be driven across for 35 tons. The application of 

 compound engines to steamers has also produced an enormous 

 economy of fuel. In 1850, the fine steamer the Persia carried 



