The Dominion. FRIDAY, MAY 29, 1914. THE CANAL AND THE TARIFF

Dominion, Volume 7, Issue 2161, 29 May 1914, Page 6

The Dominion. FRIDAY, MAY 29, 1914. THE CANAL AND THE TARIFF

Two events of first-rate importance from the commercial point-of view— tho new American ■ tariff and tfao opening of the Panama Canal—were mentioned by the chairman o£ the Wellington Chamber iii Commerce in his annual address. Both, these events are sure to have faivteachmg cftnsfenuences, though the results arc not likely to be quite so revolutionary as some people appear to think TJis changes made in the United States tariff are undoubtedly very great; but they are not equivalent to an unconditional invitation to- British manufactures .and the agricultural produce of Australasia to come in and possess the land. The amended scale of duties is probably o f mfm direct advantage to Australia and New Zealand than to Great Britain , owing to tho wider opening which it gives for our principal avfcieks of ex* port, such as wool, meat, and fejry produce, whereas special "ureeautiong have been taken to help tho American manufacturers in competing with their foreign rivals. The total Abolition of the duties on raw woo! is a most acceptable change fs:om the point of view of the 'New Zealand farmer, and, though some imposts still remain on agricultural ami dairy products, the opportunities fee trade in these commodities' tin™ greatly improved. As Mil. C. W. Jo.veh told flic Chamfer of Commevcc on Wednesday, New &mknd is already beginning to reap some o! the advantages which the new tariff ha? given. Our exports of dairy produce' to the United States ar« expanding rapidly, and several shipments of wool to iSow Yovfc and Bo»tea have been made. Considering the shai'fc

time the now scale lias been in operation,' ■ it has not ham iiossibfo so far to do much more than the necessary preliminary .work, but the, foundations are 'wing.laid of what promises to l&comc in the near future a very important 'branch of : our export trade. ■ ■ ■ V ; It would, of course, bc ! a great mis* take to imagine that the recent tariff legislation established a system of .Pree-trnde, or anything Hk« it, in the United States. In an jirticlo in the hiti'riuii'wiwl Efi'icti' of Commerce, and Industry, Uα. J. A. HuSfEU points out that "to raise money, to ciK'apcu necessities, and to revive competitive effort, sinerge as tho thveo deelarcij aims or the men who carried the revision into effect." One of the special objects wne to cut the nite on trust-rid don articles, and this has to seme extent been acajmpKslWid; but, taken as a whole, "the revision' is one of compromises alt round between the forces that would lock in American trade behind its own dioors and those that would allow it to find its natural level in the world." From the point of new of Enriish and European tt>aav.ifactureirs the position is rather nncertala, and it will take time Iα discover feovr the new arrangement will work out. The American Biaaufactuters are still shielded from the full for« of foreign competition, the tanff wall having only been partlv brown down. ' * « As the 'date for .the opening of 'the Panama .Canal draws neater," people who. study the possibilities o-f infanatienaJ commerce are giving close attotitiea to the probable" effect this event will have noon commercial relationships and the trade routes of the world. As Mn. Jokes wsnmrkf-, it \s difficult -to forecast; whfct in&nonce the Panama route will have Hpoui the- trade of Kew Z«?ftland. He thinks that it will afford n.s a better entry for our aprioirltivral prodweo into the Eastern Stafes, btit he points out that wo will still have to face I the competition of t-bo nieat-protlue-!mg countries of South America How the existing thtifo pontes wijl bo j afected by tlic Canal is discussed by ■ MB, vv, L. LjviN-ftSTOjf in the aitovem&ntaonod Review, attd he states that excluding the countries of tUo Wo Americas which haTa Paoifje soiithere is no rogion of eegimcif" cial importasce brought nearer to Mntam via Panama,' with the excoption of New Zemlaad. aiid our disknec is roiuced fo? only 900 miles : Mr. Livimmm sons em to Ba.vthft.fc ilia Caps of Good Hope and Marian roiit.es ftre o-nly a little furtlwr, and arc -mors advantagcoKS as regards eaten, in view of th<j fact thnt vessels going that way to Britain will cEcafjc ■ the paytiwctt of canal dues; but in considering the question of passenger traffic weight to be given to other flcnsiderations. As far as New Zealand is conccvjtcd th.fi fitfuetpal tcßftfit ni ike cn&nl ft-ill he the facilities it will afford for nio*o rapid trade CDnnnunjcitions With the eastern ports (if the tTmietl States. Tins may result in the openmg of aft important flew market for our produce, which may prove capable of great dxpariejon; but our chief easterner is', aad, probably ti,l- ■ ways will be the United Kingdom i and st dons net seem lifely that, at. any mte for, the present., ".any great i ftfteratu* will take pJaeeift our lifts i of tracfe eomimmicat-iott with' ths Mother OoM.iitry. Allhougliit is in), Boss.il)lrt at preseiifc fo say. with any-' t ung life certainty what alteratic-na the opening of the canal will eatosc in the world's trade mi. trade, routes, tho following fljnircs show the swWr Ift mileago that will result as. compared wkh -f;he vgyage through' Mitgeliati Straits:—. Pmm Nuw sTo.vk. Sail Tho. . ifej. Orient. Vjilpfwaisa. liftanie.' !\S<3 3,708 , 2,100 , JWa Liverpool. 5,« I.GGI 1,51.0 ; J59 From th.0.8.e $gur«s one may form some idea of the. readjiistmciits which will probably take place in the principal shipping routes of tte world.