71G . REPORT— 1901. 



seaboard, but no others. The importance of these advantages is well illustrated 

 by the great magnitude and the remarkable constancy in the relative value of 

 the British entrepot trade, and also by the rapid development and continued 

 pre-eminence of our chief textile industry, that of cotton. 



Such being the essential nature of British commercial advantages, all improve- 

 ments in connection with shipping, the change from wood to iron and steel as 

 ship-building materials, the change from sails to steam as a means of propulsion, 

 the improvement of marine engines, the enlargement of ships, the improvement 

 and enlargement of harbours, the improvement of the means of communication 

 between the seaboard and the interior in all parts of the world, have tended in 

 the aggregate more to the advantage of this country than any other. 



On the other hand, all improvements in the means of communication between 

 inland centres of production and inland markets have tended to diminish the 

 relative value of the commercial position of this country. This consideration is 

 illustrated by reference to some facts in the history of the trade of Germany with 

 surrounding countries, and that of the United States with Mexico and Canada. 



The industrial advantages of the United Kingdom depend on the great 

 abundance of coal and iron ore in convenient situations. It is obvious, however, 

 that the development of similar resources elsewhere must reduce the relative value 

 of these advantages. With reference to this point the position of two rival 

 countries is of peculiar interest for difl'erent reasons. Germany is so favoured, 

 both in its coal and iron fields, that one is led to ask why that country was so 

 long in becoming a rival in industry of the United Kingdom. The United States 

 is even more favoured, and in the case of that country the interesting point to 

 note is how the advance of time is tending to increase its industrial advantages 

 relatively to those of our own country. 



Another circumstance tending to lower the industrial advantages of this 

 country relatively to those of others is the development of water-power. Formerly 

 the use of this power was restricted by natural obstacles, but now these obstacles 

 are, to a large extent, removed by the employment of electricity as a means of 

 transmitting that power. All this must obviously tend more to the advantage of 

 such countries as Switzerland, Norway, and Italy in Europe, and Canada and the 

 United States in America, than to that of this country. Under this head the case 

 of Italy is of peculiar interest. Water-power is there getting very largely applied 

 through electricity. Now, it is to be borne in mind that Italy has an extremely 

 advantageous commercial situation. That was shown by the whole history of 

 commerce in the middle ages. The opening of the Suez Canal has restored, to 

 some extent, this advantage, which, however, has not yet been fully or even 

 largely turned to account. But in commerce the great law is that to him that 

 hath shall be given. If, then, Italy, through her water-power or in other ways, 

 is able to develop very greatly a trade based on her own resources, all the more 

 likely will she be to add to that trade a great transit and entrepot trade such as 

 she once possessed. 



5. Tlie Influence of GeograjMcal Environment on Political Evolution. 



By Alleyne Ireland. 



The influence of geographical environment on political evolution in the tropics 

 and sub-tropics is a subject which must assume for us an increasing practical 

 interest as time passes. In order to emphasise this point it is only necessary to 

 observe that, taking the tropics and sub-tropics to mean the heat-belt lying 

 between 30° N and 30° S., the sea-borne trade of these regions is increasing at a 

 much greater rate than is the sea-borne trade of the temperate lands. 



We know that commerce to-day demands for its best development certain 

 conditions of government which must in the main conform to the usages of what 

 we call Western Civilisation. Thus the construction of the Suez (!!anal involved 

 the Europeanising of the Egyptian Government, as the Panama or Nicaragua 

 Canal of the future will involve the establishment, under one authority or another, 



