very serious slide, and remained closed for six months, until March 16, when three American colliers, with a maximum draught of 21 feet, were reported to have passed through. A large number of ships which were waiting at the entrances had to be diverted; and the length of the voyages of ships trading between this country and the west coast of South America, and between the Atlantic ports of the United States and the Far East, was immediately increased. The closure came at a critical time, and probably exerted a greater influence on the upward movement than is generally realised. The longer voyages necessitated further reduced the carrying power of shipping during the past six months.

Then, although the percentage has been small, the work of the enemy submarines has, of course, made a substantial hole in the tonnage available. All the while vessels were being lost through marine perils, which, in consequence of the war, were rather more serious than usual. Many of the ordinary coast lights have not been used, aids to navigation have been removed, captains have departed from their customary routes, and a large number of the most efficient officers have been drafted into warships. Further, the inaction of the German mercantile marine has left more work for the neutral ships. Happily, both Italy and Portugal have lately decided that the German ships interned there must do their share-a step which, no doubt, will be welcomed by the German companies, who will be relieved of continuing the heavy port charges and expenses of maintenance. It is right to add that another factor which assisted the upward movement of the closing months of last year was the diversion of a number of steamers (which had been chartered to load grain from Argentina) to the west coast of South America to bring nitrate home. The time required for this programme was itself increased by the closing of the Panama Canal. All the subsidiary causes of high freights would have been minimised if it had been possible to keep new construction up to the pre-war level. But with every yard employed to its fullest capacity on Government work, there was a very serious setback to new mercantile construction. Only within the past few months have many of the yards been able to turn their attention to private

orders; and, even so, the resumption of work started before the war, and put aside for naval construction, has been hindered by the increased cost of labour and materials.

As illustrating how these conditions synchronised with the sharp upward movement in the autumn months, some typical quotations may be given. Chartering for wheat from North America did not begin in earnest until September. On Sept. 20-the day before Mr McKenna announced the new excess profit taxation and two days before the Panama Canal was closed-the rate for wheat from the North Atlantic ports to the Bristol Channel was 9s. a quarter; by Oct. 20 the rate had risen to 12s., and by Nov. 20 to 13s. The advance continued steadily. By Dec. 20 the rate had risen to 148., by Jan. 20 to 16s., and by Feb. 20 to 18s. This was the highest point reached. The rate remained on the same level until the beginning of March, when it began to decline and by March 18 had fallen to 15s. Another representative rate is that for wheat from the River Plate to this country. On Sept. 20 the rate was 57s. 6d. a ton, and by Oct. 20 it had risen to 70s. The subsequent movements to the highest point reached were as follows:-Nov. 20, 858.; Dec. 20, 120s.; Jan. 20, 140s.; and Feb. 20, 157s. 6d.

Freights for coal exports from this country showed much the same movement. Thus, the rate from Cardiff to Genoa on Sept. 20 was 32s.; it advanced to 42s. 6d. by Oct. 20, to 518. by Nov. 20, and to 65s. by Dec. 20. By Jan. 20 the rate had risen to 80s., at which it remained until early in March, when as much as 95s. was paid. The enormous rises in coal freights naturally brought about great increases in the price of bunker coals. By the middle of March the price of bunker coals at Port Said was 6l. 5s. a ton. At Buenos Aires and Montevideo the rate was 51. 58. a ton.* Rises such as these obviously affect very seriously the working expenses of the Liner companies, which may perhaps require eighty tons for each ship every day. The Liner companies are forced to raise their freights on the

The high cargo rates just quoted compare with a rate of two or three shillings per quarter for wheat from the United States to the Bristol Channel in the few months immediately preceding the war, with 12s. 6d. per ton from the River Plate to the United Kingdom, and with seven or eight shillings per ton for coals from Cardiff to West Italy.

different commodities they carry to compensate them for the increased cost of coal, stores and labour. It is of interest to note, in this connexion, that passenger rates have been advanced very little since the outbreak of war. This really confirms the shipowners' contention that the rise in cargo freights has been mainly due to the law of supply and demand. Cargo freights have risen because, speaking broadly, there have always been two or three merchants anxious to charter a ship for every vessel available. Passenger rates have not risen, because, although working expenses have been higher, there has, as a rule, been accommodation enough.

The advances in the coal freights have undoubtedly meant a great deal to the Italian people, who are entirely dependent upon Great Britain for coal. The Italian Navy, the Mercantile Marine, the Railways, the Gas and Electricity Works, and all the manufactories require British coal. It would be grossly unfair, as has been pointed out in Parliament, for British shipowners to be saddled with the whole responsibility of the enormous rise in freights and the consequent rise in coal prices in Italy, since a large proportion of the coal imported there has been carried from this country in Italian and neutral ships. At the same time a certain responsibility does rest with Great Britain as owning the greatest mercantile marine. This the Government has recognised by requisitioning a large number of British ships on the Admiralty Blue-book terms to carry coals to Italy. Large numbers of ships have also been requisitioned to carry coals to France, who, with her minefields in German occupation, has been mainly dependent on British supplies; and this has involved a further strain on the British Mercantile Marine.

The Government, in its efforts to relieve the situation, has proceeded slowly, step by step. Its first action was to requisition the services of shipowners in assisting the Transport Department of the Admiralty. These owners constituted an Advisory Committee; and their duties seem to have been to advise the officials as to the suitability of tonnage for particular work, and to vary so far as possible the proportion of the tonnage taken up according to the size of the fleets belonging to the

different companies. One of the most successful of the Government measures was the requisitioning, just a year ago, of the whole of the refrigerated space in the meatsteamers trading between this country and Australasia, which was followed a few weeks later by the requisitioning of similar space in the steamers trading with South America. At the same time an arrangement was made with the meat companies for a certain amount of their weekly production at stipulated prices. The result has been that the meat freights have shown a rise of only about 50 per cent. on those ruling before the war, and that there has been no serious advance in the prices of imported meat, in spite of the fact that the consumption by the British Army has been enormous, and that for the first time the meat has been introduced on a large scale into France and Italy, where it has greatly simplified and improved the rationing of the armies.

At about the same time British owners were asked to keep the Admiralty informed of the movements of all their ships. In the early summer a successful scheme was carried out on behalf of the Indian Government for buying and importing and selling in this country the exportable surplus of the Indian wheat crop. By judicious management the freights were kept on a level which at the time seemed moderate, and, compared with those current to-day, was low.

It was not until the early autumn that the Home Government again acted vigorously. Three Committees were appointed within a short space of time. One was for licensing ships for voyages between foreign ports; the second was for requisitioning ships for the carriage of foodstuffs; and the third was for dealing with congestion at the ports. The Ship Licensing committee was from its inception very successful in a quiet way. Its principle was that, as ships were urgently needed in the home trade, voyages of British ships between neutral ports should be carefully scrutinised. Great Britain has been in past years the carrier for the world; and there was a natural disinclination to impose restrictions causing inconvenience to neutrals and at the same time depriving owners of earning credits in foreign countries which, as

a

means of assisting foreign exchange questions, are especially valuable. But it was obvious that, as great

hardship was being suffered by the British people through high freights, the employment of all ships should be carefully examined. One effective way in which the committee was able to relieve the situation was by refusing licenses for voyages to foreign ports where there was known to be great congestion. The principle of licenses was extended this year so as to require that all ships of over 500 tons trading to and from the United Kingdom should be licensed as from March 1. As in the case of trade between foreign ports, the licenses could be granted for whole services or for particular voyages. The system has enabled the committee to discriminate between the more or less congested ports of the United Kingdom, and has worked efficiently without friction.

The methods of the committee for requisitioning ships for foodstuffs were to direct owners to load in trades where tonnage was particularly wanted, and to leave them to accept the full market rates. Ships which the Admiralty found it could spare were released on condition that they loaded wheat in North America for this country. The committee dealing with congestion at the ports evidently found its task a difficult one, but there have been various signs lately of its efforts. It has been able to arrange for the employment of the military at ports in case of urgent necessity; and a few weeks ago it prevailed on three leading railway companies to agree to a mutual interchange of trucks, a concession which has been one of the burning inland transport questions, and it is hoped may be conceded by other railway companies and also by private owners. The Committee has also issued directions to the Port Authorities to impose heavier additional charges on all goods which merchants after warning did not remove, thereby impeding the through traffic. A new shipping note has lately been introduced, with a view to preventing the delays caused by Customs examinations after certain modifications had been made in deference to strong representations from owners.

In February last a new committee, described as the Allocation Committee or Shipping Control Committee, and presided over by Lord Curzon, was appointed. It is apparently to take a bird's-eye view of all the numerous shipping questions, and to proportion the tonnage in