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no doubt that in some, perhaps in many, cases cheaper means of transport and of supplying raw materials to manufactories, combined with better arrangements for the housing of those who are employed there, can be obtained through the employment of water-ways.

Carriage by sea has recently been much hampered through fear of enemy submarines, a fear which has caused the cost of moving coal from the mine to the concerns where it was needed to approach, and in some instances, we learn, even to exceed, the cost of the mining operations by which the mineral was extracted. Though we trust that this obstacle to carriage by sea will shortly disappear, water-carriage by means of canals will always be very useful, if it can only be better arranged; and, when we say better arranged, we mean better than it has ever been before. When the canal system of the country has been brought into such order that one class of canal-boats can travel to all parts of the island, just as the carriages of one railway can travel on any of the railways of the kingdom, we shall know what our canal system is worth, and wonder that it was never put into order before. As is well known, it has become useless through many and sometimes small hindrances which, generally speaking, no very large outlay will be needed to overcome. Yet, when this work has to be commenced and also while it is continued, many of the companies concerned-most of them comparatively unimportant institutions whose shareholders will probably be poor -may find it difficult to arrange for the supply of the credit which they will require. These advances, at least in many cases, would not be loans which our banks as at present constituted would desire to make, even if they could properly do so, but they would be well within the scope of the British Trade Corporation.

We may mention also another branch of industry in which a credit institution might be of great service. A large and increasing part of our manufactures and trade is now carried on by limited companies. Some of these are comparatively small, though in the aggregate their operations mount up to large figures. The stocks and shares of the larger companies are readily saleable on the London Stock Exchange, but it is different with the smaller companies. These often have to issue their

ordinary shares in the first instance in their own neighbourhood; and they have subsequently to obtain in the same way the funds that they need for the renewal and the enlargement of their works, when the gradual growth of their business compels an increase in their capital. The dealing in, or the issue of, these securities, which are often perfectly substantial, is often almost, if not quite, impracticable. Not unfrequently they are held by the relations and friends of those who started the original business. When any of these securities have to be sold, as is frequently necessary owing to the death of a holder, or when the need arises to transfer the capital so invested to some other employment, it is generally a very troublesome and lengthy operation to find a purchaser. It is difficult, if not impossible, to deal with these securities on the London Stock Exchange. In the larger towns and more active business neighbourhoods, where local stock exchanges exist, it is, as we understand, more easy to obtain purchasers, but in many districts, where the population is thinner and less wealthy, there is, as we have said, in a general way, a very great difficulty in disposing of them. It is true that there are no less than twenty Stock Exchanges in England, Scotland and Ireland, including Birmingham, Dublin, Edinburgh, Glasgow, Liverpool and Manchester, and at most of these places there are also local clearings; but, even so, a very large part of the country enjoys no facilities for the disposal of local investments.

This state of things is very disadvantageous to these local industries, which, though they may not be very important in themselves, are of great service to their own neighbourhoods by supplying occupation to persons who would otherwise have to migrate to some distant centre, and by keeping business alive in some otherwise stagnant district. Old inhabitants in country towns sometimes can surprise those who come to visit them with the long list they can give of industries formerly carried on there, but now extinct.

In the first place, those who wish to establish a new industry or to revive a stagnant one find it difficult to obtain the ready money they want, and are put to considerable inconvenience. Hence the local business withers, and the concerns themselves, which have already

issued the securities and yet require more capital for the purposes of extension of their operations, are hindered in obtaining this by the fact that securities, such as Bonds or Preference Stock, which they have already issued are at a discount, and consequently there is no encouragement to issue more. These securities are at a discount not through any inferiority of their own, but through the inability of those who possess them to find the right market for their disposal. This is exactly a case in which the Trade Corporation could fill the gap, by simply holding the security, the value of which they would be able to appreciate, till the natural turn in the tide comes, and there is again a local demand.

Having thus given a rough sketch of some of the ways in which such an institution may be of service, a few words may be usefully employed in describing what has already been done towards the establishment of the new British Trade Corporation. A capital of 10,000,0007. has been authorised, of which 2,000,000l. has already been issued. A strong Board has been formed, the Governor being Lord Faringdon, to whose energy and judicious direction the enterprise owes much. Many of his fellow-directors are men well known in the City. We may mention, among others, Mr W. H. N. Goschen, a Director of the National Provincial Bank of England and a partner in Frühling and Goschen; the Right Hon. F. Huth Jackson, who is also a director of the Bank of England; Sir James Hope Simpson, General Manager of the Bank of Liverpool; and Mr Harold Snagge of E. Boustead and Co., East India Merchants, who is also a director of Barclays' Bank. Besides those we have mentioned, there are also men who are associated with our business life in other ways, as Sir Algernon F. Firth, President of the Association of Chambers of Commerce; Mr F. Dudley Docker, President of the Federation of British Industries; and Sir William B. Peat, late President of the Institute of Chartered Accountants. The General Manager is Mr A. G. M. Dickson, formerly a Sub-Governor of the National Bank of Egypt, a very powerful bank with a capital and reserve of more than 4,000,000l., and large deposits. It possesses the exclusive right to issue notes payable at sight to bearer in Egypt, and has an

actual issue at present of over 22,000,000l. The London Manager is Mr Percy C. West, who was Sub-Manager in London of the Banco de Chile. Mr West has had great experience of the ways of the London money market, and also of similar business in South America. We have gone into this detail of names and particulars as it indicates the manner in which first-rate men, employed in very varied occupations, have been chosen. In the published statement it is declared that the Corporation will specially devote its energies to the development of the trade of the British Empire in every part of the world. It will

'provide financial facilities, the currency of which may extend over a longer period than is covered by the usual advances made by Bankers; and it will be prepared to assist in opening up new channels for enterprise, where it is demonstrated that financial aid can be afforded without undue commercial risks. . . . The Corporation proposes to appoint representatives in the chief cities of the world, who will be domiciled with the Banks holding the Corporation's agency; and various arrangements for such agency have been provisionally negotiated. Where similar arrangements are not practicable, it is intended to open branch establishments in important centres abroad.'

Proper arrangements have been made in the deed of settlement for maintaining British control of the Corporation.'

It will be seen that a very good beginning is thus made for the development of the trade and industry of the Empire throughout the world; and arrangements are being made for an adequate organisation of our great industries with each other and with similar trades in different directions. The representatives who are to be appointed in the chief cities of the world should be of great service to British manufacturing and industrial interests, and they should effect an extension of business. Besides this we learn that the Corporation will establish Information Bureaux to collect reliable data upon openings for foreign trade, new contracts, State and other loans and issue proposals, and generally upon all matters relating to foreign trade and the status of merchants and traders.' This outline of the arrangements for

carrying on the business appears to be very complete, and gives good promise of success.

It may seem a truism, but it is well to note what care will have to be taken by the British Trade Corporation in making the advances which they will be invited to make. They will have to see that the borrowers are solvent and honest people, and that the advances requested are justifiable. The German banks, some of them at all events, have had severe and unpleasant experience of what trusting unsuccessful undertakings means.

The recent arrangements of the Government to organise a larger number of qualified persons than has been the case hitherto to enquire into the best methods for improving our trade abroad may be an assistance to the undertaking. Although it has not been expressly said that the persons to be appointed as Trade Commissioners in various parts of the Empire by the Civil Service Commissioners will be connected with the British Trade Corporation, yet, we cannot doubt that their efforts and their work will be of great service to that institution as well as to the business men of the country generally.

For several years past there have been official representatives of the Board of Trade resident in the four principal self-governing Dominions. These trade-commissioners, four in number, were appointed in 1907 by Mr Lloyd George as President of the Board of Trade. The valuable results of their work in Canada, Australia, New Zealand and South Africa have been commented on in the various Reports made by the Dominions Royal Commission. So much advantage has accrued from their work, that it was suggested that similar officials should be sent to all parts of the Empire without delay. It is understood that steps have been taken to appoint twelve more Trade Commissioners at once. The most important qualifications for these appointments are stated to be a good knowledge of import and export trade, and commercial experience at home and abroad. A knowledge of foreign languages will also be essential; and we are glad to understand that some of our Public Schools are beginning to be aware of this. Our trade abroad has certainly suffered in some degree from the war, and, apart from this, there is plenty of room for expansion.

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