Bisbee daily review., 1913-09-18
BUSINESS METHODS
 WILL BE CHANGED
 BY PANAMA CANAL
English Professor of Finance Predicts That Countries Us ing It Will Work Together in Better Harmony.


 W. Kirkaldy told the British Associa- tion at it's session today that such effects could be easily exaggerated So far as the outside world is con cerned," he said, the greatest effect of the opening Of the canal will prob ably be to get commerce and trade out of the groove, and cause an ali-round modernization of business methods. The old will have to be scrapped, friction among the factors of produc- tion will have to be eliminated, capital and labor in competing countries will have to learn to work harmoniously together. Socially and economically this will effect very great result. Is it what America dreamed of when sne entered upon this stupendous under takings2s'
 wr. Kirlaldy is Professor of Finance at BirbinEham University and a rec ognized authority on economic uues tions. In his address today he treated his subject under the two general heads of local effects and effects on world-trade. From the industrial poirt of view, he said, three questions arose; who shall supply certain mar kets; who shall perform the service of transport, and what routes shah shipping take. The principal factors on the route: freights and the possibil- ity of continuous freight-earning; fuel stations; insurance rates; the po- litical factor: rates of exchange; in- vestments of capital and banking ia cllities; the human factor-maHufac turing and commercial ability, experi- of Ia ent possession
 The canal" he said. will add enor mously to the commercial facilities b.. tween the various regions of the Amer ican continent and the adjacent is lands. hence important developments may be expected. The West India Is- lands will enter upon new period of prosperity. especially when the in ternal combustion engine takes the place of steam and oil replaces coal English business and fiscal methods will have a great effect on making the West Indies important to shipping and thus assist the development of local industries, especially the export of raw material. The comparatively unprogressive states of Central and South America will undergo immigra- tion~ of Europeans and increase trade These local benefits will he the chief. and ample. justification for the con struction of the canal
 Of the effect or world trade, he con tfnues: America realizes the import ance of the coal trade to the United Kingdom: there will be strenuous atternrt to displace British coal Al f~N rAa American shipping the advantages a. present enjoyed by British. + sue cessful this will deal a mortal blow, at our mercantile marine. Thus the British coal industry must realize the situation. and both jEe capital and la bor interested resolve to hold the market at all costs until the fuel ques tion-coal or oii--is finally settled.
 'eThe published scheme of tolls vybich frees American coasting ships raises an international question II tbe canal be worked on business prin ciples. higher tolls will be exacted from other shipping; this will either cause a grievance. or decrease the ton maze using the canal The question might be made domestic instead of iI- ternational if America charged equal toils to all. and gave Dounties to such shipping as it wishes to fagcr." AS 10 the effect of distance, he tbough that on Australasian and Far Eastern markets it would be consider, abie as the mileage run by steam CT was a serious factor in cost of ser. vice. In this shipping offered con. trast to railways. for when trucks were ] loaded. 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-tl) Countries in close proximity to the canal: here the effect will be greatest and. in many cases. the use of the canal a necessity. tz) Australia and | fbe Far East. At present there IS choice of routes to these markets; i; | Panama will offer another alternative. i C3) Ports not directly affected.
 Glass 2 is receiving most attention : from those estimating the efets on | world trade. There is a parallel eqni- distant from London via Suez, and l from New York via Panama On me ! south Coast of Australia this Is PoTt 1 Lincoln. Adelaide being the neares, 1 great pert. All Asiatic ports west or | Jaran will continue to be nearer to 1 Tondon. e. g., Manila will be Z'OV9 miles nearer. But all Japanese ana New Zealand ports and all Australia-I ] norts east of the Adelaide will be near 1 or New York If 1t costs 2s. 10 trans
 port one ton of goods 1000 miles, dis- | tance saved will give American nlahu lecturers an advantage of from 2s. to 1 7s Cd. per ton on all goods suPpiieI to ports between Melbourne and wen ! ington, \. 2. s,a, "TOIis-Panama dfiiSsS i''i'' l.5s.. '2e.s.'
 bere Suez had an immediate mohop olv. with Panama there is in many instances a choice of routes, ana hish tolls will defect tornage.
 i Freight must be available poth o'a' s.S home. To benefit American nisa ufsefSirersrs freights .rnusy be ioN. Al F nreserit Europe supplies Aifssralasi1 !
 with manufactured goods, and me shipping goes via Suezi This route
 gives a maximum of trading possibili' l lies and great facilities for coaling iThe Cape route. too. offers to, faiiy loaded cleaners the advantage ol
 cheap bunker coal For the homeward
 voyage from Australasia a party