EFFECT OF THE ATLANTIC CABLE ON COMMERCE.

North Otago Times, Volume VII, Issue 158, 27 November 1866, Page 2

EFFECT OF THE ATLANTIC CABLE ON COMMERCE.

(From the United States " EconomUt," August 4.) Tho Atlantic Subnmrino Telegraph is at laat an accomplished fact. Tho achievement is stupendous, considering the difficulties which have been overcome, and still nioro bo in view of its bearings upon the commercial and social interests of tho two countries now united. Three thousand miles of space is annihilated, and we are brought within two hours of the capitals of the Old World. Henceforth tho old and new continents will maintain a closer sympathy of ideas, tending to promote a mutual transfusion of sentiments and institutions. Commerce will bo quickened and exempted from the risks connected with the lapse of ten or twelve days to the transmission of information. Orders can be given here to-day and tho goods received within twelve days ; which if no longer period than is frequently occupied in the transportation of merchandise betweon tho city and the -west. A cargo of breadstuff's can be ordered from Liverpool within the same time that it requires for the completion of a like operation between New York and Chicago. It is impossible to rate the importanco to commerce of such a stupendous achieve* ment. One of the direct results of this new condition of affairs will be the equalisation of values. We have seen this result in the case of 5.20 bonds ; the prico has been adjusted in the London quotation during the past week. The same consequence must follow with reference to cotton, broadbtuffs, and all other articles of produce. Each day every country will be supplied with a price current of values in all other countries. Perhaps we do not flatter ourselves in assuming that no country in the world has advantages equal to our own for the production of the great staples of food and the principal staple of clothing. Hitherto, our advantages in this respect have been rendered to a large extent unavailable to the rest of the world, through the length of time required for communication with our market*. W» snail now have our prices sent to Liverpool and London each day for use on tho day following; and on that day orders can be not only sent here, but actually executed. It is thus easily seen what an immense advantage this rapidity of communication must confer in the competition of our staples with those of other countries. With superior advantages as respects production, and equal facilities as respects marketing, we ought to reap an immense advantage from facilities which this new state of things afford us. While the highest praise is due to the energy and skill shown by the projectors of the Atlantic cable, yet we regret to see a disposition to give the institution all the features of a monopoly. The charges for the transmission of messages are limply preposterous, and are symptomatic of a lack of intelligent enterprise on the part of the business management of the company. The true course for the company would have been, to establish the lowest possible , rates consistent with a fair remuneration, and at tl _ f , same time to lay other cables, so as to accommo'^ the pubh'c to any extent that may be required, 'l. _.s would have tended greatly to prevent a starting of competing enterprises and would have ensured the public sympathy. The existing scalo of charges, however, is sufficient to tempt the creation of now organizations. The company has a monopoly along the ooast of Maine and British North America, covering a period of fifty years, which, for the interests of commerce, is very unfortunate. There are however, other routes, perhaps eten still more pactical, besides which there is the intercontinental telegraph, which is now in course of erection. Ultimately, therefore, we shall not be confined to the exclusive limits and the exacting tariff of the existing line, but shall have an extent of communication commensurate with our commerce, and suited in its charges to the economy of business. Now that the possibility of laying safely a cable on the bed of tho ocean has been accomplished, it may be safely assumed that we shall have the means afforded, within a short time, for cheap communication with any part of tho old world.