The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1913-10-16
ECONOMIC EFFECT OF PANAMA
CANAL
Prof. KIrkaIdy Of England Foresees
Possible Loss OF Brltain's Suprem-
acy as Worlds Ocean Carrier.


The greatest interest was taken at
the meeting of the British Associa-
ton in Birmingham. Eng, recently. In
A paper read by Prof. Adam W. kirk
aldy on the Economic Effect OF the
Panama Canal. in the course of which
he treated the subject with great
thoroughness.
$50 far as the outside world Is con-
eerned." he said, the greatest effect
of the opening of the canal will PROB
ably be to get commerce and tfaoe
ont of the groove, and cause an all
round modernization OF business
mothods The old will have to be
ecraDpod. friction among the factors
of production will have to be elimin-
ated capital and labor in competing
countries will have to learn to WORK
tremendously together. Socially anu
economically this will effect very
great result. Is 1t what America
dreamed of when she entered upon
this stupendous undertaking.
Mr.. Kirkaldy is professor OF FL
nance at Birmingham university ana
a recognized authority on economic
questions In his address Iuesday
he treated his subject under the TWO
general heads of local effects and ef-
fects on world trade. From the III
dnstrial point of view. he SAID, three
Questions arose: who shall perform
the service of transport, and what
routes shall shipping take. The prin-
cipal factors on the balance of adyan-
tages on which the foregoing ques-
lions would be decided were, diss
lance; tolls on the route; freights and
the possibility of continuous freight
earning; fuel stations; insurance
rates; the political factor; rates OF
exchange; investments of capital and
banking facilities; the human factor
manufacturing and commercial abf1-
ity. experience of trade and markets,
and present possession.
1.-THE canal" he said, will add enor-
mously to the commercial facilities
between the various regions OF the
American continent and the adjacent
islands, hence important develop
ments may be expected. The West
India islands will enter upon new
neriod of prosperity, especially when
the internal combustion engine takes
the place of steam and oil replaces
coal English business and final me-
thods will have great effect on max
ing the West Indies important tc
shipping, and thus assist in the de
yelopment of local industries, espec'
ially the export of raw material The
9 comparatively unprogressive states
of Central and South America will un
dergo remarkable developments OWNS
to increased immigration OF Europe
ans and increased trade. These 10
} cal benefits will be the chief and am
pie justification for the construction
of the canal"
or the effect on world trade, he
continues: America realizes the i'm
portance of the coal trade to the Uni
ted Kngdom there will be a siren
uous attempt to displace British Goa
throughout the world In order to give
American shipping the advantages al
present enjoyed by British. II sue
cessful this will deal a mortal bio"
at our mercantile marine. Thus the
British coal industry must realize the
situation, and both the capital and
labor interested resolve to hold the
market at all costs until the fuel
question-coal or Oils finally set
tied.
"rhe published scheme OF tolls
which frees American coasting ships
raises an international question. II
the canal be worked on business prin-
ciples. higher tolls will be exacted
from other shipping; this will either
cause a grievance, or decrease the
tonnage using the canal. The ques-
ton might be made domestic instead
of international IL America charged
equal tolls to all, and gave bounties
to such shipping as it wishes to ia
vor."
AS to the effect of distance, he
thought that on Australasian and Fai
Eastern markets it would be consid
cradle, as the mileage run by steamer
was serious factor in cost OF SER
vice. In this shipping offered con-