THE Wairarapa Age MORNING DAILY. SATURDAY, AUGUST 18, 1906.

Wairarapa Age, Volume XXIX, Issue 8214, 18 August 1906, Page 4

THE Wairarapa Age MORNING DAILY. SATURDAY, AUGUST 18, 1906.

Mr Elihu Root, the American Secretary of State, whose visit to Buenos Ayres is referred to in our oable sews this morning, is making a round trip iu South America, and his journeying is invented with a significant dignity. He travels on the cruiser Charleston to the Straits of Macellan, and th»re tranships to a Chilian man-of-war, ia which be goes to Valparaiso, Uallao and

Panama. He will then cross the isthmus and xeaoh New York by October Ist This tour will, remarks the New York oorrespondent of the Sydney Morning Herald, give the diplomatic world ample cause for reflection. What would be said if a European statesman of- the first magnitude were thas to make a state progress around the most important of the undeveloped nontinents? Mr Root's real mission is to warn South America of the peril involved in granting territorial privileges of any kiad to Europe, and he may go so far as to suggest that the self-interest ofthe continent peremptorily forbids theaoqaisition by au alien power of eren the smallest additional foothold. The United States is becoming alarmed at the growth of trade between South America and Great Britain ana Germany. Almost three-fourths of tbecomirerae with South America is in the hands of Great Britain and Germany, and it is recognised that a friendship of the pocket between producer and consumer may count for much in the] friendship of nations. Chili's friendly altitude to wards Mr Root is particularly significant, because hitherto Ohili has been as frank in her preference for European support as in her desire to become the chief State in the continent. Evidently something has happened recently to change Chili's view. Tne ultimate aim of the PanAmerioan Congress is said to be "to mould the formless strength of the continent into a definite FanAmerican Union against the socalled 'predatory Powers, 1 to be dissolved only the subjugation of all alike." To Mr Root personally suocess in this tour is said to be of paramount importance, for it is an open secret that he is Mr Roosevelt's first; choice for the succession to the Presidency, and a brilliant record as a Pan American will be useful in drawing attention from the face that his large fortune was made as a corporation lawyer. A United Soiiih America under United States protection would no doubt appeal strongly to the American nation in an election campaign.

Whether the newly discovered diamond island off the ooast of Afrioa, of whioh mention was made in a recent oable message, will have the result of reducing the price of these precious stones remains to be seen. But at the present rate it is no exaggeration to say that in a few years diamonds will b& at suoh a fabulous price as to be beyond the reach of any but the richest of the rich. During, the past two years the price of diamonds has jumped up 25 per cent.; during the past si\ months the price has risen 10 per cent., and in another two years diamonds will be another 20 per cent, dearer. Two years ago 2-grain stones oould be purchased for £ls a carat. Now they are £22 10s, while 4-earat stones have gone up from £2l a carat to £32 or £33. Several of the largest London firms, with sufficient foreeight and capital, have for the last two years been steadily buying as many diamonds as they could get to safeguard themselves against this rise. "Our stock of diamonds is worth now between £350,000 and £400,000," said Mr H. Smith, of the Association of Diamond Merchants, Jewellers, and Silversmiths, j Limited, reoently, "and we are j still buying." But it i 3 exceedingly difficult to , buy diamonds at all. First of all, an introduction has to be got to the syndicate that controls the South African diamond market, and when this difficult matter is arranged the buyer' awaits his turn—generally he has to wait about six months. On the appointed day he goes to tbe offiuea of the syndicate and is shown a paroel of diamonds. There is no bargaining; tbe buyer can either take tbe diamonds or leave them. One buyer asked for half-au-hour to consult his partner before taking a lot worth £IOO,OOO. When he caoie back they had been sold. Won have been offered £I,OOO for Iheir "turn," and have lefused it. Tho reason for the rise in the price of diamonds is that tbe mines are becoming leea productive, although producing finer —whiter and more brilliant. Emeralds up 50 per cent., and there has also been a big increase in the price of pearls and rubies.