The Hawaiian gazette., 1912-06-25
EFFECT OF PANAMA CANAL
ON WORLDS COMMERCE

W, lott Nuuiu NC Ft'"uf anu 20 on IN
definitely.
The question then arises who will
them to carry il. All the Central and
South American states will have
great increase in trade in which the
United States will participate to a
great extent.
In foreign trade outside of the con.
tinent of America, drawing a line
nearly north and south from Hong
kong, Manila and through Austria
liza, il viii be found that to New York,
Manila, and Hongkong is about 500
miles nearer by Panama than by Suez.
The same Is true of the east coast of
Australia, and New England, Japan,
and North China are much nearer by
Panama, but to Europe the Suez is
much nearer from all oriental coun-
tries including Australia and New
Zealand. Then n great factor which
must not be overlooked is the many
ports of call and coaling ports via
Suez, whereas by Panama there is
only the Hawaiian Islands and the
West Indies. As to the Importance of
the canal on commerce, when we con-
slider that during the lives of you
young men the Pacific Ocean will be the
great center of the world s activities
in shipping and commerce just as the
center of commerce changed from the
Mediterranean to the Atlantic so sure
will that center change from the Allan
! tic to the Pacific. In China, the forma-
ton of the new and what promises to
be the greatest republic on earth rep
lresenting one-quarter of the world Is
population is just an indication of
what is coming, and we on this coast
To-. Al -. l.. Al.
ocean are destined to a future which
no man can even estimate. Seeing that
our nation owns and controls the
waterway between the Atlantic and
Pacific will give our country a prestige
and advantage over all Others in the
new developments that are near at
hand. But we can't get that benefit
without a merchant marine.
The cost of fuel is an important
matter, and our government proposes
| to monopOlize the trade of the isthmus
by selling all coal and stores of every
kind, even to running laundry, dry
docking, ship repairing, etc. All
monopolies are bad, not excepting the
United States government, and it is a
fact that our government, on account
of peculiar exactions and conditions,
are unable to buy as cheap as ordinary
merchants of good standing, so that we
must expect to pay more for what we
buy on the isthmus than if there was
good, healthy competition.
Tolls.
good deal will depend to what
extent the Suez canal will reduce
theirs. Two reductions have been
made in the past year; the present
rate is $1.30. We do not know what
the Panama tolls will be, but it is
proposed to give the President author
ity to fix the tolls, the maximum to be
$125. The amount will ultimately be
determined by ordinary trade competi-
ton.
Merchant Marine.
That the canal will be an interna-
tional benefaction is conceded, but it
is a misfortune to our country that
our unwise laws prohibit us from using
it with American vessels in the foreign
trade. AS it is fact that we have no
large cargo steamers available and
none is being built to engage in the
foreign trade, our commercial competi-
tors are making preparations to take
full advantage of the situation when
the proper time comes for ships to en-
, gage in the foreign trade.
, According to the last report from
, the commissioner of navigation we
have only 5S5,730 tons of shipping reg
istered for the foreign trade, and in
the amount was included the Hawaiian
sugar fleet and the Yukon river steam
ers, and the most remarkable fact in
, connection with this is that American
/ citizens own 100000 tons (gross) of
shipping on which they are flying the
flag of foreign nations, being debarred
, by our unreasonable laws from flying
{ the American. flag. The conditions can
: be better understood by stating that
in 1862 American ships carried &C per
/. cent of our foreign commerce and now
: it is down to about per cent.
] All that is necessary for us to get a
< merchantable marine is so plain and
Y easy that our congressman cannot un
Q derstapd or believe it. The whole mat
= ter in a nutshell is: "Permit us tt
: buy our ships where we can get them
: the cheapest and to operate them OF
Q the same conditions as our competi
e tors" The shipowners ask no favors
no advantage, only put us on exactly
i the same basis as our competitors ant
e cur nation will soon have a merchant
y marine that in our country's emer
n gency will be a help to us in foreign
s countries and national defense al
y home.
1t is certainly a sad commentary OF
t our congress to reflect that they hav,
s built canal costing about $500, 000,00I
: and by their laws have prohibited
y American citizens from building ship
n to use it in the foreign trade. In tn
e present session of congress as in pas
C years several bills were introduced {,
d restrict and restrain the operation o
It American ships and none to encourag
N or develop our merchant marine.