THE SUEZ CANAL.

New Zealand Times, Volume XXXIII, Issue 5247, 17 January 1878, Page 3

THE SUEZ CANAL.

(From the London Daily Neva.) Professor Leone Levi delivered the introductory lecture of Lis winter course at King’s College, taking for his subject ” The Commercial Importance and Economic Value of the Suez Canal.” He commenced by observing that we were rather too prone in these days to magnify modern achievements, and to ignore or forget the legacies of the genius and enterprise of past ages. It would be bold to assert, however, that either in loftiness of conception, or the power to overcome difficulties, we excelled all that had been done by our predecessors. But what really placed us in advance was our better knowledge of the world and our greater command of the means of communication in railways and steamships ; and every advance made in the means of communication had been and ever would be so much added to the wealth of the world and good done to the human family. India had ever been the Eldorado of commercial ambition, and to facilitate communication between East and West, the Mediterranean and the.3led.Sea, by piercing the Isthmus of Suez with a canal, had long been the earnest desire of the remotest times. The firstNapoleonpredictedthatthetime would come when the Turkish Government would glory in carrying out such a work, and M. de Lesseps had in our days fulfilled the prediction, spite of all opposition, detraction, and evil prognostication. -The canal, it was said, would be a stagnant ditch, silted up with the deposit of the Kile and the sand of the desert, that the lakes through which it was to pass would be filled with salt, that the navigation of the Bed Sea was dangerous, that there was a difference of level between that sea and the Mediterranean, that shipping would never be able to approach Port Said, and that in short the whole thing was a foolish proposal. Next political objections were urged, especially by Great Biitaio. The canal, it was said, was intended expressly to transfer the trade of the East from England to France. The Pasha of might sever his connection with Turkey, and erect Egypt into an independent State; and surely England could not allow the severance of Egypt from Turkey ! It was not to the interest of .England that there should be water passage between the Mediterranean and the Indian Ocean at the command of any other Power than England. Lord Palmerston declared that the project could never be carried out except at an enormous loss of money and human life, and that as a commercially remunerative enterprise it was a mere bubble. And then came the engineering difficulties and objections of the late Mr. Stephenson, who wondered at the idea of cutting a canal through a desert eighty miles long, argued that so far as the transit of passengers and merchandise was concerned the project would lead to no saving of time, and expressed the opinion that, if not absurd, it was impracticable. With remarkable pertinacity, M. de Lesseps gave heed neither to contumely nor opposition ; and our merchants and chambers of commerce had the wisdom to see that trade would benefit by it, and commended the scheme to the active support of our Government. So M. de Lesseps triumphed; the canal has proved a decided success, notwithstanding all the evils that had been predicted, and the hopes and expectations of M. de Lesseps, except in the matter of capital expended—for from first to last the cost of the canal had been nearly double the amount originally contemplated had been fully , notified The canal was opened to traffic in 1869, and from 1870 to 1876 the net tonnage passing through it rose from 486,609 tons to 2,096,772 tons, whilst the receipts rose from £200,000 in 1870 to about £1,21)0,000 iu 1875 ; and, in 1876 after the share and debenture holders had received their 5 per cent, dividend, a small balance of profit was still left to become larger in subsequent years. The result was, therefore, in every way satisfactory. The relations between the Suez Canal Company and the Khedive had, however, not bean very smooth, and no final judgment had yet been given as to whether the Canal Company was international, French, or Egyptian. Having next described the circumstances under which England had acquired the Khedive’s shares in the° canal, the professor said he should say nothing about the unbusinesslike manner in which "the purchase was made or the extravagant commission paid upon it; but he asked whether it was becoming of the British Government to enter into such a transaction purely from political motives, and whether there was not reason to fear that those shares bein" in the hands of one State might prove inconvenient and dangerous in the future; and if the British Government swayed the counsels of the company.it might not give rise to serious dissensions aad jealousies ? Then, sup posing that other Governments were to buy the remaining shares, would there be securities for the maintenance of the canal and against the dangers of political complications ? A»ain, could England alone assume a paramount right over the canal if her co-partners objected ? Nor should it be forgotten that the possession of the Khedive's shares would not give ua an absolute majority in the administration of the canal, whilst French influence must always exist so long as the principal director was French and the bulk of the capital was supplied by Frenchmen. At the same time, as. three-fourths of the receipts came from British shipping,, no other nation could have so great an interest in the management of the canal But whose fault was it that England had not acquired a supreme influence in the undertaking? It was in her power to have acted otherwise, hut she would not do so though she had the deepest interest in bringing East and West into connection. The canal had been the means of saving an immense amount of time, and time was money. Already 2,000,000. tons of shipping was passing through it iu a year, and this, at the low estimate of £SO a ton for the value of ship and cargo, represented £1,000,000 of capital, noon which there was a saving of two months’ interest or from £300,000 to £500,000 a year. Descanting upon the particular, commercial advantages of the canal, Professor Levi stated that by shortening the line of: navigation, and with’ the abolition of the export duty, an important trade had sprung up in wheat between this country-and India, and wheat was always a valuable cargo, and acceptable in the English market The opening of the canal had also,

oiven an enormous stimulus to the building ot steamships. In 1869 'we had 943,000 tons of steam vessels, whilst in 1876 vve had 2,005,000 tons. Hence the supremacy of England in the Suez Canal. On the other, hand, France had only 200,000 tons, Germany 180,000, ami all other European Ststes , together perhaps 400,000. The trade of the United Kingdom with India, the Straits, Ceylon, China, Japan, the possessions ot the Dutch in the East, the Philippine Islands,. Australia, &c, all of which, sooner or later, would have to use steam ships, amounted in 1876 to £154,000,000, or 24 per cent, of the entire trade of the United Kingdom. Add to this the trade with continental ports nearer home, and a great part of the American trade, and it was easy to see that the days of sailing ships were fast passing away. It was to be expected, once the long sea voyage was superseded by the shorter and more direct route, that Austria, Germany, France, Spain, and other European countries would find it in their interest te get the Kastern products they required direct through the canal; and this they were doing now, and would do to a yet greater extent, but returns show that British trade has not thereby suffered. What better evidence of the success of the canal commercially could they have, however, than the fact that 51.49 per cent, of the whole trade with British India,, and two-thirds of the trade of India with America was carried on through the canal. The future of the canal was practically in the hands of its administrators, and there was war in the East. Let them therefore be careful not to imperil a commercial undertaking with political movements. Whoever were the shareholders, the transit dues were too heavy ; let them be mindful that a maximum revenue was quite consistent with and was often better obtained from a minimum rate of charge*. The canal would need watching ; let them seek the best scientific means of maintaining it perfectly free for navigation, and expanded both in depth and width. At present sailing ships were practically excluded ; let them consider what could be done to render the navigation of the Red Sea safer and more reliable for sailing as well as steam vessels. In short, let the council bo true to their trust, and they might be sure of increasing and continued success. lu closing his lecture, the professor said we were marching further and further daily in the path of economic progress, and we might expect yet greater and more rapid progress were it not that the plague of war destroyed our hopes. We were on the eve ot a great exhibition of industry aud art in Paris ; but what expectation could be entertained of its success whilst Germany abstained from intercourse with France, whilst war desolated the East of Europe, and famine stalked abroad in Southern India, not to speak of the heavy clouds that hung in the political atmosphere of France herself ? Let us not despair, however, but see whether,- by increasing industry and perseverance, we might not hasten somewhat the returning tide of success and prosperity.