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TRANSACTIONS OF SECTION F. 585 
2s. to 7s. 6d. per ton on all goods supplied to ports between Melbourne and 
Wellington, N.Z. 
2, Volls.—Panama differs from Suez here. Suez had an immediate monopoly ; 
with Panama there is in many instances a choice of routes, and high tolls will 
deflect tonnage. 
3. Freights.—To benefit American shipping freight must be available 
both out and home. To benefit American manufacturers freights must be low. 
At present Europ2 supplies Australasia with manufactured goods, and the 
shipping goes via Suez. This route gives a maximum of trading possibilities 
and great facilities for coaling. The Cape route, too, offers to fully loaded 
steamers the advantage of cheap bunker-coal. For the homeward voyage from 
Australasia a partly loaded steamer goes via the Horn to pick up cargo at ports 
like Monte Video. The Canal would not attract these ships. When Panama 
is open will all-round-the-world services be organised? Great Britain is in a 
better position to do this than any other country. The rumours current recently 
that an existing shipping combine was trying to arrange an amalgamation with 
one of the oldest Far Eastern shipping companies were probably due to the hope 
of being able to commence such a service, having some of the chief trades of 
the world as tributaries, from the moment that Panama is available. America 
hopes to open up new markets, e.g., wool. This now concentrates at London, 
but there is a tendency towards decentralisation, and if America develops the 
woollen industry, she will get a wool market without necessarily constructing a 
Panama Canal. 
4. Fuel Stations.—This will be one of the decisive factors, and lead to the 
keenest commercial rivalry. The American Government are planning to supply 
good coal at either end of the Canal at 19s. per ton. The English coal on the 
Suez route is at present much dearer; to maintain the Suez route in its 
integrity the supply of cheaper coal is a necessity. When oil replaces coal the 
British Empire resources will be ample to maintain our commercial position, but 
this must not in the meantime be piaced in jeopardy, or disaster may ensue. 
5. Insurance Rates—will probably be the same on both routes. 
6. The Political Factor.—The working of the Imperial ideal in Great Britain, 
America, and Germany should be noted. 
Preferences granted by the Dominions have materially assisted British trade. 
The possession of the Philippines has displaced Spain from the position of chief 
trader there in favour of America. The importance of this factor can be traced 
in the case of Japan, and China, when settled government comes, will be another 
notable instance. 
7. Rates of Exchange.—The Far.East has a silver, Europe and America a 
gold, standard. Rates of exchange affect trading relations. The whole question 
should be carefully studied. About seven years ago, when a Chinese merchant 
could get exchange on the west coast of America at the rate of 119 taels for 
$100 gold, it paid him to import thence timber and flour; but at present rates, 
namely, 160 taels for $100 gold, this ceases to be profitable business, and he can 
trade to greater advantage locally. This factor works independently of trade 
routes. 
8. Investments and Banking.—Gveat Britain is a great creditor nation. Her 
advances have been really made in goods, and though the interest has to be 
paid in gold, it comes in goods covered by bills in terms of sterling, so that 
investors get their interest in gold. The British, too, have banking estab- 
lishments all over the world. London is the great settling-place for international 
trade. All this gives England a very great advantage. Germany has followed 
England in this. Finally, the Englishman is, roughly speaking, the man in 
possession, and though at one time he seemed somnolescent, at present he is 
very wide awake. He has many advantages: (i) for the transport services; 
cheap, economically worked ships, carefully organised trading facilities through- 
out the world, and the knowledge and experience which enable him to retain 
old trades and be the first to enter new ones. (ii) So far as retaining the 
markets for manufactured goods is concerned he has an unrivalled labour force 
endowed with hereditary skill, he can get the pick of the raw material, thanks 
to his knowledge of markets, and a fiscal policy which favours England as a 
buyer of raw and semi-manufactured materials; finally, British goods are 
