THE PANAMA CANAL.

Dominion, Volume 3, Issue 924, 17 September 1910, Page 12

THE PANAMA CANAL.

WHAT WILL IT MEAN TO NEW. ; ZEALAND? TRADE.WITH AMERICA.' In a special supplement of the London "Times," issued on July 80, devoted to the, commerce and- outlook of the.South American countries, there ,is an i article on the Panama Canal. Portions' of it are of interest to New Zealand. It is. pointed out that for the trade r between Britain .and New Zealand the Panama route will have an advantage of 1320 miles over the Suez route, or, say,' 'six days by an ordinary cargo 6teamer. -Very few, vessels from' British ports, however, '•■ carry trade' between . Great Britain and New Zealand only.- ■ "The , new order of things," says the writer of the article, "will' favpur New York most ' in the trade with New Zealand, because it will bring.Auckland,within 8550 miles steaming distance, - while the route from English ports is 12,670 miles by Suez, and will be. 11,350 miles even by Panama, The, effect of tho . Panama Canal upon - the import trade of Australia and New : Zealand will be that it'rwill render these... markets much more accessible to the manufacturing, States of > America, and will therefore make American competition more keen in these colonial markets than • it is uf present. i - , "The opening, of the new-.waterway will draw .the- attention of- the American ex- ■ port trade- and stimulate its activity, in these fields. We may therefore expect a tu" 01 ? ?® or t f° r Australasian traae by the United States within a few: years;Ihe opening of, the Panama Canal will be the occasion for the start of legions -,ol commercial travellers who'will; invade the Antipodes in the search for business. A good deal of; futile effort will • be - expended. The attack will be fierce at first, ' but it will not;be sustained. As . a warrant for our prediction wemay recall •' the: attempts made by' British manufao turers to recapture Canadian trade when tariff iwas grafted upon the Canadian fiscal- system. As in the' Canadian case, it will Vbe found that' for many reasons the trade .cannot be won# : and- the -besiegers will retire 1 from the field. The United States, lioweyer, will be. left with a residue; of increased An . tralasian trade; and tier: proportion will' thereafter .stand at a kigner-level. than it 'does at -present..', Abouti-lij.. per cent' 'of •; Australia's imports Vreach /her / from ' the United, States direct, the value of this: proportion-being about > 26,000,000' annually. In addition to ' this,•; about ' .81,000,000 worth of American ■ manufactures '.reach 1 Australia through other countries, chiefly Great Britain/-, Wo may"expect that the latter trade, or the greater : of it,,-will seek its.destination, direct and will no longer reach • the-Australian • ports, via Liverpool, .This 1 will mean a loss, of revenue to the- British ships at present , earning,, the goods,; ' and ■ a loss - ' of profit to. the British merchants through whose, hands the goods pass on their way to the points of distribution. The effect thus anticipated' is_ conditional .upon .tho of non-British - shipping to secore' ■ the opportunities placed in its path, by ; the Panama Canal. * About-' one-third ' of the export trade from the United States' to Australia comprises kerosene and., oils, ■ naptha, , turpentine and resin, timber, tobacco, barley, meats,, and glucose—all goods' in : which Great.'Britain 1 cannot compete.'. . _ The, principal competitive v goods supplied to the Australian' market, by tho United. Statesare: boots and shoes, '. textiles, ammunition, and explosives, .clocks and, -watchesi, fish, furniture, .glasa: and glassware," rubber, and leather' ■ goods,: iron and' steel, . bars,,.: tubes, platesand ' sheets, tools and .machinery, .stationery, : vehicles, and cycles. '. . -' ■ "Increase of trade will naturally take placo 'in American shipments of these goods,; and 'here keener 'American, .coes petition may' be expected in Anstraiia. \ "Ne\j> Zealand vrill be, proportionate '.to its'; trade,-'a', more favourable field for American/ exports than. Australia: • .The imports,. of New. Zealand • have' ; a : fttal 'V annual value of . about;-.337,000,000,">'. ibfi which about i 1,500,000 go from the Unitid States.- Thus .the American share has a " smaller ..proportionV of. the' total 'than' tho. ' " . American',share,.ofi Australian trade.'-jTho,? figures- are.imodified;-'by the .fact that- 25 ' Eer; cent, of New.Zealand's:imports'reach : - er . from Australia, : 'ahd consist'! largely-i'-of - European \ and American - goods; j. It .isf. reasonable"to'.espect tHiit the 'trade' from :; . America to . New Zealand ,will assume a' ' 'new phase under the facilities. •of the Panama . Canal.. \ The ; .economic. -. andeconomical advantages of - a direct trade •. will : create now' ' agencies . • which -will- ■ gradually eliminate tho indirect trade in SAmerican exports'to New Zealand- th'rough Great Britain 'and , Australia, ■ Moreover, thfe American activity .to'be. exacted in ;. Australia iwill also, find expression' in ' .New Zealand, with the result of a 'serious';, challenge' to British prominence in the, ; markets of .the latter colony; The classes ■' .of merchandise.' that New Zealand im- ' porte from the United States are the. same as . those imported by ' 1 Australia. -She .has. a much smaller population, and V she .will, therefore be unable: to ■■ assume the.'position'that' Australia o is:fast taking .as .'manufacturing nation..- Thus'. in : the "." departments of, • manufacture, such "as iron; and, steel' goods, .machinery, . and textiles, where large' output'is. necessary,: for,-low .nianufacturing : costs, New -Zea, land will:.not for 1 a 'long time supply her ' own; requirements,': so '•■ that- the : "market;,, will • remain' a fair, field for international '■ competition; with .'the United States in the better geographical- position. I'or .thesa ? - reasons we must '.be! for:a'.rela.' : tive decline in British trade in New:. Zealand." ,:-.: r