The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-09-20
Kirkaldy Tells Britons That
Opening Of Panama Canal Will
Modernize Business Methods

.- ~"AA hAAi5AAoAAS ILi6v 0SpL. 9Us-CpSdh-
ing on Some of the Economic Effects
of the Panama Canal. Prof. A. w.
Kirkaldy told the British association
that such effects could be easily ex-
aggerated. $50 far as the outside
world is concerned" he said, "the
greatest effect of the opening of the
canal probably will be to get COM
merce n trade out Of the groove,
and cause an all-round m~odernization
of business methods. Friction. among
the factors of production will have to
be eliminated n capital and labor
in competing countries will have to
learn to work tremendously together.
Socially and economically this will eff
America dreamed Of when h enter
ed upon this stupendous undertake
ing" ~
Mr.. Kirkaldy is professor Of finance
at Birmingham university and q rec
ognized authority on economic ques-
tions. In his address he treated his
subject under two general heads of
local effects and effects on world
trade. From the Industrial point Of
view. he said, three questions rose:
Who shall supply certain markets,
who shall perform the service Of
transport, and, what routes shall ship
ping take. The principal factors on
the balance Of advantages on which
the foregoing questions would be de-
cided$ were: Distance, tolls on the
route, freights and the possibility Of
continuous freight earning, fuel sta
tions, insurance rates, the political
factor, rates of exchange, Investments
of capital and banking facilities, the
human Notwithstanding and
commercial ability, experience of trade
and markets, and present possession.
West Indies to Benefit.
"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 developments
may be expected. The West India ISL
ands will enter upon a new period Of
prosperity, especially when the inter-
nal combustion engine takes the place
of steam and oil replaces coal. Eng
lish business and fiscal methods will
have a great effect on making the
West indies important to shipping,
and thus assist the development of
Of law material. The comparatively
unprogressive states Of Central and
South America will undergo remark
able developments owing to increased
immigration Of Europeans and in
creased trade. These local benefits
will be the chief and ample justifica-
ton for the construction of the canal
OF the effect on world trade, he con-
tinues: America realizes the i'm
,J~ortance of the coal trade to the Unit
ID Kingdom; there will be a %strenu-
)us attempt to displace British coal
throughout the world in order to give
American shipping the advantages at
present enjoyed by British. If sue
cessful this will deal a mortal blow at
our mercantile. marine. Thus the
British coal industry must realize the
situation, and both the capital and la
Dor interested resolve to hold the
market at all costs until the fuel ques-
tion-coal or Oils finally settled.
Toll Question international.
1.-The published scheme Of tolls
which frees American coasting ships
raises an international question. If
the canal be worked on business prin-
ciples, higher tolls will be exacted
from, other shipping; this will either
u a grievance, or decrease the
tonnage using the canal. The question
might be made domestic instead of in
ternational if America charged equal
tolls to all, and gave bounties to such
shipping as it wishes to favor" h.
AS to the .effectNo of distance, he
thought that on Australasian and far
eastern markets 1t would be great, as
the m1leagettru by: a steamer was a
serious factor in cost of service. In
this shipping. offered a contrast to
railways, for when trucks were load
ed, length of haul had but little effect
on cost of service.
Taking London and New York as
the typical European and. American
ports" he said, "the markets Of the
world fall into three classes:
"First-Countries in close proximity
to the canal; here the effect will be
greatest and, in many cases, the use
of the canal a necessity.
Observation-Disclosures and the far
east. At present there is a choice of
routes to these markets; Panama will
offer another alternative. -
"Third-Ports not directly affected
Asiatic. Ports to Be Nearer.
GLASS 2 is receiving most attention
from those estimating the effects on
world trade. There is a parallel
equidistant from London via Suez, and
from New York to Panama. On the
south coast of Australia this is. Port
Lincoln, Adelaide being the nearest
great: port. All Asiatic ports west Of
Japan will continue to be nearer to
London e.. 6. ,%.Manila will be 1000
miles nearer But all Japanese and
New Zealand ports. and all Australian
ports east of Adelaide will be. nearer
New York. If it costs Is to transport