ending with the middle of September 1915. In all probability, the cotton tonnage via the canal will steadily increase with the certain growth in the demand for the staple in the mills of Japan, China, and Australasia. As regards southern lumber, the canal has apparently not yet opened up new markets. The heavy lumber shipments via the canal have nearly all been eastbound. It can hardly be doubted, however, that a demand for the yellow pine and hardwood lumber of the South will develop in the markets on the west coast of South and Central America. Had there been such a demand during 1915, it could hardly have been met, because the high ocean freight rates would have made profitable shipments impossible.

The industries of the west coast states of the United States made large use of the canal from the outset. The lumber, wheat, barley and canned goods (fish, fruit, etc.) which are shipped in large quantities from the Pacific ports of the United States and Canada were able to reach their largest and best markets at greatly reduced costs. of transportation; and, as Table 2 shows, those articles moved in large volume through the canal, even under the adverse conditions prevailing during the period for which the table gives figures. West coast products entered very largely into the intercoastal trade and also found a ready

market in such European countries as were able to engage in international trade. The Panama Canal, in spite of trade restriction due to the war in Europe, has given the western part of the United States and Canada larger industrial opportunities and a greater measure of prosperity.

THE CANAL AND THE F UNITED

The United States Go construction of the Par work proved to be too g ama Canal Company, th the enterprise. It is ob the United States, in do influenced by the desire sults: The connection o the United States by a m nomical route for the i country, the reduction in eign markets with goods and the removal of the the Atlantic and Pacific can navy from coöperati ing the country.

The purposes of the were by no means entire Canal, like the Suez wa not for the sole use and but that it might be of se

ships of all flags and countries, in accordance with the policy to which the United States has consistently adhered for more than a half century, are to use the Panama highway under like terms, each nation being free to take full advantage of the new "gateway to the Pacific" in carrying on its commerce not only with the United States but with other countries. In constructing the canal and opening it to the commerce of all nations "on terms of entire equality," the United States voluntarily undertook to act as trustee of all nations in order that the world might thereby secure a benefit that could not otherwise have been obtained. To be of service to mankind is a nation's highest reward.

The truth of this assertion of altruism on the part of the United States in the construction of the Panama Canal is not invalidated by a frank admission that the people of the United States expect to derive large benefit from the canala larger benefit, indeed, than is to be secured by any other country. Because of its location, its resources, its assured economic development, and, most of all, because of its use of the Panama route in carrying on its intercoastal trade, the United States will secure greater assistance from the canal than any other single country can hope to obtain; although Canada and Europe, as will be pointed out in a later chapter, will profit

the control of forces di have to be reckoned wit within the country; and the relation of the Panan ment of the foreign co States, it will be a help possibly to the avoidan keep in mind certain co cerning industry and tra First among the facts that international trade. modities, is subject to Except for the limited nu which the particular coun sess a monopoly, success depends upon certain w among which are efficie nomical means of transp sea, skillful methods of investments and adequa facilities. These essenti foreign trade have often lected in discussions of th ama Canal will be to the United States.

Trade begins with pro