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of these articles much more readily in a territory controlled by his own Government than elsewhere goes without saying. The question of permanence of government and thus of the safety of investment is one of the first to be considered by the capitalist or investor, and this is illustrated by the slow development of production through invested capital in the great tropical areas of Central and South America, where frequent revolutions and changes of government render such investments unsafe and profits therefrom uncertain.

Another advantage which capital finds in investment in territory having a permanent and reliable form of government is that in such territories facilities for transportation and communication, which are absolute necessities to successful business undertakings of this character, are more numerous and trustworthy and more likely to be extended as occasion requires. To this may be added the further fact that articles produced in the colony from investments by residents of the home country go more directly from the producer to the consumer, without passing through the hands of as many middlemen or contributing a profit to a large number of intermediate dealers and thus increasing their cost to the consumer.

Still another advantage to the mother country in the control of tropical territory lies in the application of the enterprise, energy, and inventive characteristics of citizens of the Temperate Zone to the soil and natural products of the tropical territory, some results of which are illustrated in the enormous development of tea industry in India and Ceylon, the cinchona industry in Java, Ceylon, and India, the rubber industry which is now being developed in Africa, India, and the East Indian islands; the sisal industry in certain of the West Indian islands; and the development of fruit culture in the West Indies in general. For many of the tropical products required by their people European countries having tropical colonies have come to rely upon their colonies with a certainty of a supply of these important requirements, and by reason of this ample supply have greatly increased their consumption. England's largest importation from the Tropics-tea-come almost exclusively from her own colonies, India and Ceylon, as do also jute, cinchona, and numerous other of her important importations; and with this steadiness and reliability of supply have come a great reduction in cost to her people of those articles. The average price of tea is now but about one-third that of a quarter of a century ago, and this is due almost exclusively to the great production of tea in England's colonies of India and Ceylon; while the price of quinine has fallen in eren larger proportion and is due largely to the introduction and culture of the cinchona tree in the British and Dutch colonies, as described on another page.

The question as to whether the colony offers to the mother country special facilities for obtaining the articles which it proviuces and which the mother country requires seems thus to be answered in the affirmative.

(C.) DOES THE COLONY REQUIRE IN EXCHANGE FOR ITS PRODUCTS THE CLASS OF ARTICLES PRODUCED

IN THE MOTHER COUNTRY AND CAN THEY BE MORE SUCCESSFULLY PRODUCED THERE THAN IN THE COLONY?

The answer to this question is obvious. Naturally the importations into colonies, especially tropical colonies, are almost exclusively foodstuffs and manufactures-provisions, meats, clothing, and agricultural and mining machinery. Add to the difficulty of obtaining reliable and satisfactory labor in the Tropics, the rapid deterioration of machinery by reason of climatic conditions, and the growing disposition to operate manufacturing industries in great groups and with costly plants, and it is apparent that practically all of the manufactures consumed in the Tropics must be drawn from the Temperate Zone, while the fact that nearly all the tropical world depends upon the Temperate Zone for its breadstuffs and a large proportion of its meats adds to the assurance that the tropical colony will remain permanently a consumer of the products and manufactures of the Temperate Zone. This is illustrated in the fact that of the imports of India, valued in 1900 at 960,000,000 rupees, cotton manufactures formed nearly 300,000,000 rupees; metals, hardware, and cutlery 62,000,000; railway plant and rolling stock, 27,000,000; machinery and mill work, 25,000,000; sugar, 33,000,000; and oils, 34,000,000 rupees. Taking an example nearer home-of the £1,660,000 importations into Jamaica in 1898, cotton manufactures constituted in value £208,317; flour, £162,378; boots and shoes, £44,987; lumber, £37,374, and fish, £116,240. Indeed, of the entire importations of Jamaica, practically all were food stuffs or manufactures from the Temperate Zone. Another marked example of the demand of tropical territory upon the foodstuffs and manufactures of the Temperate Zone is found in the class of exports from the United States to the Hawaiian Islands. Among the exports in 1900 to the Hawaiian Islands were iron and steel manufactures to the value of $5,064,306; breadstuffs, $1,024,604; manufactures of cotton, $572,551; leather and manufactures of, $307,270; tobacco manufactures, $332,759; and wood and manufactures thereof, $1,314,957. Of the exportations from the United States to Porto Rico in the fiscal year 1901, valued at $6,861,917, the value of over $1,000,000 was cotton cloths; nearly a million dollars provisions, comprising meat and dairy products; another million breadstuffs; a million and a quarter rice; nearly a half million manufactures of iron and steel; more than a quarter of a million fishpractically the entire $6,000,000 being included within the terms food stuffs and manufactures.

(D.) WILL SUCH INTERCHANGE OF THE PRODUCTS BETWEEN THE MOTHER COUNTRY AND THE COLONY

STIMULATE PRODUCTION IN THE COLONY AND INCREASE THE MUTUAL DEMAND AND INTERCHANGE?

The answer to this is readily found in the very rapid growth in both the exports and imports of all successfully managed colonies. Increased earnings are always accompanied by increased wants and increased consumption, and this is especially true in communities in which the consumption is in the beginning small and confined to the articles of absolute necessity. This is noted in all colonies and especially those of the Tropics in which the native element forms a large proportion of the population. This fact, which is a subject of frequent comment by those who have had experience in tropical colonies, is fully sustained by the statistics of the imports of the colonies which always keep pace with the growth in exports. The exports of Java in 1870 amounted to 61,000,000 guilders, and in 1898 nad increased to 203,000,000 guilders, an increase of 230 per cent; in 1870 the imports of merchandise amounted to 44,000,000, and in 1895 to 160,000,000 guilders, an increase of 250 per cent. The exports of India in 1858 amounted to £28,000,000, and in 1899 to £78,000,004, an increase of 175 per cent; while the imports which in 1858 were £31,000,000, were in 1899 £64,000,000, an increase of more than 100 per cent: The total imports of the British colonies have increased from £144,000,000 in 1864 to £246,000,000 in 1899.

INCREASED PRODUCTION AND CONSUMPTION OF THE BRITISH COLONIES.

The production and consumption of the British colonies have more than doubled since 1867, as shown by the following table, which gives the total imports and exports (including bullion and specie) of the British colones in 1867 and 1899:

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INCREASED PRODUCTION OF THE HAWAIIAN ISLANDS UNDER ADVANTAGEOUS COMMERCIAL RELATIONS

WITH THE UNITED STATES.

Another marked instance of the increase of production under the stimulus given by a steady and reliable market in the Temperate Zone for the products of tropical communities is found in the phenomenal growth of the sugar industry in the Hawaiian Islands since the reciprocity treaty which admitted the products of Hawaii free of duty into the United States, and American breadstuffs and manufactures free of duty into Hawaii. The conclusion of the reciprocity treaty in 1876 assured to the producing interests of Hawaii a permanent market in the United States free of tariff restrictions, and assured to the United States producers, manufacturers, and exporters an equally permanent market in the Hawaiian Islands, free from tariff restrictions, in most of the articles required in those islands. As a consequence the production of sugar in the Hawaiian Islands has increased from 26,072,429 pounds in 1876, the date of the conclusion of the treaty, to 545,370,537 pounds in 1899, the growth being twentyfold.

ENORMOUS INCREASE IN TRADE WITII THE UNITED STATES.

The stimulative effect of this increased production upon the purchasing power of the islands is shown by the fact that exports from the United States to the Hawaiian Islands increased from $662,164 in 1875 to $13,509,148 in the fiscal year 1900, and the collector at Honolulu estimates the figures for 1901 at $20,000,000.

The tables which follow show the production of sugar in the Hawaiian Islands in each year from 1875 to 1899 and the importations into the United States from and exports from the United States to the Hawaiian Islands from 1875 to 1900. They indicate the growth of production in the Hawaiian Islands under the stimulus of a steady market in the United States, with the advantages of free entry to that market, and the accompanying increase of consuming power and increase of mutual interchange between the Hawaiian Islands and the United States.

PRODUCTION OF SUGAR IN THE HAWAIIAN ISLANDS FROM 1875, THE YEAR PRECEDING THE RECIPROCITY TREATY, TO 1899:

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MERCHANDISE IMPORTED INTO AND EXPORTED FROM THE UNITED STATES IN ITS COMMERCE WITH HAWAII, FROM 1875 to 1900 (GOLD AND

SILVER INCLUDED PRIOR TO 1880).

YEARS ENDING

Imports from

Hawaii.

Exports to
Hawaii.

YEARS ENDING

Imports from

Hawaii.

Exports to
Hawaii.

June 30

1875.
1876.
1877.
1878..
1879.
1880.
1881.
1882.
1883.
1884.
1885
1886.
1887.

Dollars.
1,373, 681
1, 227, 191
2, 550,335
2,678, 830
3, 257, 938
4, 606,414
5,533,000
7,616,294
8,238, 461
7,925, 965
8,857, 497
9,805, 707
9, 922, 075

Dollars.

662, 164

779, 257 1, 272, 949 1,736, 099 2,374,918 2,086,170 2,778, 072 3, 350, 775 3,776,065 3, 523,333 2,787, 922 8,192, 698 3,622, 029

June 30

1888.
1899.
1890.
1891.
1892.
1893.
1891
1895.
1896.
1897
1898.
1899.
1900.

Dollars.
11, 060, 379
12, 817,740
12, 313, 908
13,895,597
8,075, 882
9, 146, 767
10,065, 317
7, 888, 961
11, 757, 704
13,687, 799
17, 187, 380
17,831, 163
20,707, 903

Dollars. 3,085, 203 3,375,661 4,711, 417 5, 107,212 3,781, 628 2,827,663 3,306, 187 3,723, 057 3,985, 707 4,690, 075 5,907, 155 9,305, 470 13, 509, 118

PHENOMENAL GROWTH IN COMMERCE OF THE UNITED STATES WITH HAWAII.

A study of the above table shows a phenomenal growth in both the imports from and exports to Hawaii under the reciprocity treaty by which Hawaii was commercially annexed to the United States, its principal products being admitted to the United States free of duty, and the principal products of the United States admitted to Hawaii free of duty. It will be seen that the imports from Hawaii were in 1900 fifteen times as much as in 1875, and the exports to Hawaii twenty times as much as in 1875.

(E.) WHETHER THE COLONY MAY ALSO PROVE VALUABLE AS A DISTRIBUTING STATION FOR THE

PRODUCTS OF THE HOME COUNTRY.

This question is perhaps most satisfactorily answered by an examination of the record of the exports from the United Kingdom to the Orient since the establishment of those two great distributing stations of the East, Hongkong and the Straits Settlements. Hongkong was ceded to Great Britain by China in 1841, confirmed by the treaty of 1842, and the charter issued in 1843. The Straits Settlements passed finally into the hands of the British under the treaty with Holland of March, 1824, in exchange for the East India Company's settlements in Sumatra and remained under the control of the Indian government until 1867, when they were transferred to the care of the secretary of state for the colonies and made a separate colony. Hongkong became a distributing center for British goods destined for China, Japan, and the Philippines; while Singapore of the Straits Settlements became the distributing center for Australasia, Siam, Burma, Indo-China, the Malayan Peninsula, and the East Indian islands. In 1840, prior to the acquisition of Hongkong, and the establishment of the Straits Settlements as a separate colony, Great Britain's exports to the entire section tributary to those points (omitting the Australian colonies, where the growth was largely due to other causes) amounted to £2,009,535; by 1850 they had grown to £3,055,384; by 1860 to £9,748,206; by 1870 to £16,146,478; by 1880 to £18,436,805; by 1890 to £19,751,884, and in 1900 to £24,074,533. Thus British exports to the territory for which these points prove a distributing center are now twelve times as much as in 1840. During that period British exports to the colonies grew from £17,000,000 to £87,000,000, or five times as much in 1900 as in 1840, while herexports to all countries other than the colonies grew from £34,000,000 to £167,000,000 in the same period, or about five times as much in 1900 as in 1810. It must not be understood that the entire distribution of the £24,000,000 of British goods now sold in the Orient is from these two points, but it seems reasonable to assume that they proved the vantage points from which British merchants gained their foothold in the trading communities since opened to them—the adjacent countries of China, Japan, Indo-China, Burma, Siam, Malayan Peninsula, and East Indian islands. The exports to Australia, much of which goes to Singapore and thence is reshipped to Australia, are not included in this calculation, since the market in Australia has been created chiefly by the natural development of the country, the growth of English-speaking population, the gold discoveries, the great agricultural successes, etc.; and to include them in the figures presented as related to the growth of commerce through the control of distributing stations and their influence would not be justifiable. While the colonial trading station does not bear as important a relation to the extension of the commerce of the mother country to-day as it did before the introduction of modern facilities for intercommunication, the above facts seem to justify the conclusion that its value to the commerce of the governing country is, and must remain, very great.

The table which follows shows the exports from the United Kingdom, at quinquennial periods from 1840 to 1900, to the Orient, exclusive of Australia, to all British colonies, and to all countries other than the colonies. They show, as above indicated, that in the territory in which Great Britain established these two great distributing stations, Hongkong and Singapore, upon barren rocks, which of themselves sustain no consuming population, the exports to those spots and to adjacent territory have increased elevenfold, while those to the colonies and to all other countries have increased but fourfold.

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The value of the markets of the great semicircle of countries and islands to which Hongkong, Singapore, and Manila may form convenient distributing points is more than a billion dollars annually, or, to be more nearly exact, about $1,200,000,000 annually, an average of $100,000,000 per month. The annual importations of Japan, Korea, Asiatic Russia, China, Indo-China, Siam, the Malayan Peninsula, India, the East Indian islands, and Australia, which aggregate the enormous sum above named, are chiefly of the classes produced only in the Temperate Zone. Breadstuffs, provisions, and manufactures of all kinds form the large bulk of this great importation, and it is in these articles, especially manufactures, that the United Kingdom has built up her commerce with the countries adjacent to her great distributing centers in the Orient from £2,000,000 in 1840 to twelve times that sum in 1900.

The table which follows shows the importations, in the latest available year, of the countries commercially adjacent to the three great distributing points above mentioned—Hongkong, the Straits Settlements, and Manila:

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(F.) WHETHER THE TRADE OF THE MOTHER COUNTRY WITH THE COLONY GROWS MORE RAPIDLY

THAN WITH OTHER COUNTRIES.

This question has naturally been one of constant discussion in conjunction with the broad question as to the advisability of the control and maintenance of colonies by the great nations of the world. Naturally the question of the benefit to the commerce of the mother country likely to ensue from the control of the colonies has been and continues to be one of the important subjects discussed in considering the wisdom of acceptance or rejection of colonial responsibility. The question is elaborately discussed by Adam Smith, by Mill, and by other early writers on political economy, while by more recent students of modern commercial and colonial affairs the question of "trade and the flag" has been much discussed.

“The chief advantages of colonization to the mother country, economically speaking,” says Merivale, in his seventh lecture on colonization and colonies, delivered before the University of Oxford in 1840, “are the opening of new sources of production, whence articles may be obtained more cheaply or more abundantly than heretofore, and the opening of new markets for the disposal of the commodities of the mother country, more profitable and more rapidly extending than those previously resorted to, by reason of the speedy growth of wealth in new communities.

The first is only useful as a means to the last." “An advantage which a dominant community may derive from its supremacy over a dependency," says Sir George Cornewall Lewis, in writing of colonial management in 1841, “consists in the trade which she may carry on with it under circumstances more favorable to her traders than if the dependency were an independent state.

The most plausible opinion respecting the commercial advantages derivable from dependencies seems to be that the dominant country, by securing to itself an unrestricted trade with them, can prevent them from establishing the protecting and prohibitory duties which, if they were independent states, they would probably impose upon imports.” This advantage, which the writer believes would be temporary by reason of a growing disposition toward free trade, has failed of realization through the absolute freedom of action which the British Government has given its colonies in determining their tariff, and which, as shown elsewhere, forms an important factor in the revenue-producing systems of nearly all of the colonies.

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TRADE WITH MOTHER COUNTRY GREATER THAN IT WOULD BE IF THE COLONY WERE CONTROLLED BY ANOTHER COUNTRY.

Writing upon this question, Mr. C. P. Lucas, in his introduction to the reprint of Lewis's Government of Dependencies, 1891, says: “The advantage of trade with colonies alluded to by Sir George Cornewall Lewis partly exists, partly has disappeared. It exists in the sense that if India or Singapore or Hongkong were owned by another European power, British trade would no doubt be seriously crippled by hostile tariffs. On the other hand, it is hard to see that Great Britain derives any trade advantages from her connection with the self-governing colonies, seeing that these colonies treat her commerce no better and no worse than that of foreign nations. It is impossible to prove that “trade follows the flag.'”

In an appendix to the same work, Mr. Lucas says: “The question so often discussed at the present day is a very different one from that which troubled writers and thinkers on colonial subjects fifty years ago, being whether, under existing conditions, the trade between the mother country and the colonies is greater in proportion than that between the mother country and foreign countries; in other words, whether trade follows the flag. It is really impossible to give any satisfactory answer to this question, and no attempt is now made to do so, but the following remarks may prove useful. It is very difficult to make out that there has been any marked change of any kind of late years in the percentage of British trade with the colonies and with foreign countries, respectively. In the case of those colonies which, if not dependencies of Great Britain, would certainly be dependencies of another European power, as, for example, India, trade follows the flag in the sense that British trade with India would be in a great measure annihilated if India belonged to another, and therefore, under present conditions, a protectionist nation. Again, in the case of the self-governing colonies, it is difficult to suppose that the fact of the colonial governments having their agents-general in Great Britain doing business in or through Great Britain, raising their loans mainly in Great Britain, and being represented abroad by British consuls, does not determine the course of trade to some extent in the direction of the flag. It is difficult to doubt that community of race, language, customs, and associations has some effect in making peoples deal with each other.”

Professor Seeley, of the University of Cambridge, in his lectures on the expansion of England, points out that England's expansion has been largely due to her rela ns with new countries. “In manufactures,” he says, “our success depends upon our peculiar relation to the great producing countries of the globe. The vast harvests of the world are reaped in countries where land is wide and population generally thin, but those countries can not manufacture their own raw materials, because all hands are engaged in producing, and there is no surplus population to be employed in manufacture. The present industrial greatness of England is composed only in part of her greatness in manufacture; she has also the carrying trade of the world, * which implies great sea traffic, and the great sea traffic did not bein until the new world was thrown open.”

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Mr. Alleyne Ireland, writing in 1900 upon the question of trade and the flag, says that the history of the trade of England in recent years does not indicate a more rapid growth of commerce with the colonies than with other parts of the world. The value of importations into the United Kingdom from British colonies and possessions, he says, has increased during the past forty years at about the same rate as the value of the total importations of the United Kingdom. The value of exports of produce and manufactures of the United Kingdom to the British colonies has increased at about the same rate as the value of the total exports of the produce and manufactures of the United Kingdom during the past forty years. The imports into France from her colonies and possessions, however, are steadily increasing. In 1877 the value of colonial imports was 4.5 per cent of the value of the total imports; in 1896 the proportion was 10 per cent. The exports of produce and manufactures of France to French colonies and possessions are also steadily increasing. In 1877 the value of such exports from France was 5.1 per cent of the total exports of French produce and manufactures, and in 1896 the proportion was 9.8 per cent. To this it may be added that the 1899 figures show that the percentage of French produce and manufactures exported to the colonies was 11.4 per cent of the total exports of France.

COMMERCE OF THE PRINCIPAL COLONIZING NATIONS WITII TIIEIR COLONIES.

An examination of the table of exports of the three principal colonizing nations of the world at the present day to their respective colonies and of their total exports in each case shows that the exports of the Netherlands to her colonies have not increased as rapidly as her exports to other parts of the world; that those of the United Kingdom to her colonies have increased in about the same proportion as those to other parts of the world, and that those of France to her colonies show a much larger proportionate gain than those to other parts of the world.

The following table shows the exports from the United Kingdom to her colonies and to all countries other than British colonies at quinquennial periods from 1810 to 1899. It shows that exports from the United Kingdom to the colonies have increased at about the same proportion as those to other parts of the world, the total in 1899 being in each case about five times that of 1810:

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The following presents the imports into French colonies from France and the total exports of France in 1887, 1896, and 1899. It shows that the imports into the French colonies from France have during that period increased 94 per cent, while the total exports of France have meantime increased but 30 per cent:

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The following table shows the value of imports of French colonies during the year 1896, by principal articles: Textiles

$10, 104, 917 Live animals ...... Spirits, wines, etc.

4,858, 154 Vegetables, fruits, and seeds. Cereals and flour

4, 654, 325

Arms and ammunition. Colonial products..

3, 144, 032 Furniture and woodwork. Machinery, hardware, etc

2,977, 700 Dressed skins and furs... Building stone, combustibles, etc.

2, 477, 472 Drugs Animal products, hides, etc....

2, 162, 551 Coloring matters Yarns and threads....

1,812, 207 Clothing.... Oils and vegetable essences.

1,536, 537 Matting, wickerwork, etc. Metals....

1, 485, 202

Dyes Chemical products.

1, 268, 507

Vegetable fibers, etc... Fish......

917, 754

Musical instruments Paper, printed matter, etc

862, 504

Sundry products and manufactures. Pottery and glassware..

$728, 252 614, 388 606, S18 520,75+ 488, 985 322, 814 184,518 119, 638 119, 594 111,375 99, 174

38, 110 3, 290, 253

747, 621 Timber...

733, 011

Total...

46,917, 236

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