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 Swettenham, who was long connected with the government of the Straits Settlements, and has an intimate knowledge of trade and shipping questions, that certain foreigners, notably the Germans and Japanese, have improved their trade very much more rapidly and very much more efficiently than we have improved ours. He adds that these nations, who have had this large increase of trade, at the same time have granted to their merchant shipping a large accession of Government subsidy, and if the increase of trade is not largely due to the accession of subsidy, it seems only explicable by attributing 'want of go' to the British. A reminder of such examples does not seem to be out of place.

Shipbuilding in Great Britain is in a sound position for constructing any class of vessel at very moderate cost, but British shipowners must not rely too much upon present superiority, and must be continually seeking for newer and up-to-date methods, and unremittingly aim at adopting the most scientific principles in the conduct of their business. Practical labour-saving appliances, such as automatic and electric machines, are an immense gain in the long-run, although perhaps naturally they are not always at first acceptable to trades unions, who are sometimes apt to take a short-sighted view of economic development. Shipbuilding materials are duty-free in Germany, as in England, and no stone should be left unturned to keep pace with such honourable competitors as the Germans, or, indeed, such commercial maritime power as may be prophesied for the Japanese.

Turning now to the future, two main questions arise with regard to the steps required to maintain the efficiency of our commercial fleet as a link of Empire. In the first place, what can statesmen do for shipowners and traders? Secondly, what can they do for themselves?

In reply to the first question, statesmen can render material assistance, both by directly encouraging adequate