NEW ZEALAND AND PANAMA CANAL.

Taranaki Daily News, Volume LIII, Issue 137, 19 September 1910, Page 3

NEW ZEALAND AND PANAMA CANAL.

TRADE WITH AMERICA. "A CHALLENGE TO BRITISH PREEMINENCE." London, August 5. Wliat will be the influence of the Panama Canal on New Zealand trade! The problem is discussed in the course of an interesting article on the trade possibilities of the canal in the Times on July 30. For the trade between Great Britain and New Zealand (says the Times writer), the Panama route will have an advantage over the Suez route by 1320 miles, say six days' voyage by an ordinary cargo steamer. But very few vessels from British ports carry freight between Great Britain and New Zealand only. Most of them depend for part of their cargoes upon 'shipment to and from Australia as well, so that even the saving of time by the, Panama route will be no inducement to use that route. The paucity of coaling stations in the wide Pacific will also be a) factor which fill modify the use of the trans-Panama route. Much of the wool imported from the Antipodean colonies copes in sailing ■ ships, although the proportion is becom- • ing smaller every yeiir: 'Sailing ships will not use the cafial. The Panama route may be tp SPme extent bv wool steamers keen .to. cjatch the season's market in London, frut' this will be only a small part of tii'e "total. ' It may thus be anticipated with confidence that Europe in its trade with Asia and Australasia will not any (material advantages from the. new cp,nal. The point that c'oii&ftis European traders with the maijkets'AamedMs that the Panama Canal will pla<re .Nfw York and the manufactui'ijicrj-eastfji'n. States of the American Union nearer to some of these : markets. . ; 1 'Tile new order of things will favor York most in the trade with New Zealand, because it will 1 i ibring Auckland within-$550 miles steam-1 ing distance, while the route from Eng-| lish ports is 12,670 miles by Suez and' 11',350 miles even by Panama. The ef-| feet of the Panama Canal upon the im-i port trade of Australia and New Zealand' will be that it will render these markets much more accessible to the manufacturing States of America, and will therefore make American competition more keen in these jnar : k,-ets than it is at present. ; v It is reasonable, continues the Times, to expect that the Wade from America to New/Zealand, will; assume a new phase tinder the facilities of Panama Canal. The economic and economical advantages of a direct trade will create nerve agencies which will gradually eliminate the indirect trade 'in American exports to New Zealand through Great Britain and Australia. Moreover, the American activity to be expected in Australia will also find expressions" New Zealand, with the result of a serious challenge to British pre-eminence in the markets of the latter Dominion. The classes of merchandise that New Zealand imports' from the United States are the same as those imported by Australia. In one respect New Zealand will offer a better market than Australia. She has a much smaller population and she will therefore be unable to assume the position that Australia is fast taking as a manufacturingi nation. Tfhus departments of manufacture, such as iron and steel goods, textiles, where large output is nepesgary for low manufacturing costs, JNjpir Zealand will notj for a long time fupply her ( own require-; ments, so that the market will remain aj fair field for international competition,! with the iSjtates in the better geographical position, Eor these reasons we must be prepared for a relative decline in British tijade in New Zealand.