SHIPPING PROBLEM

Southland Times, Issue 17654, 11 February 1916, Page 6

SHIPPING PROBLEM

LONDON FIRM’S SURVEY'. STEAMERS LYING IDLE. GERMAN IMPROVIDENCE. A striking survey of the “dauses of vexatious delays in deliveries” is given in a letter received in Auckland , from Messrs McDonald, Seales," and Cb., of London. ’ While recognising the needs of the Imperial authorities, the firm declares that as a result of official ignorance the shipping problem has been more acute than it need have been, and "millions of pounds” have been wasted. “One of the most striking developments in the financial situation during the last week or two has been the further remarkable depreciation in German currency,” the letter states. “There has been a fresh break in the German exchange representing a depreciation of over 20 per cent., and the probable cause of this is to be found in the large orders which Germany is placing with the United States for copper, cotton, and other commodities —200,000,0001b of copper have recently been ordered, the idea being that this will be required immediately after the war. The financial policy of Germany bears all the marks of recklessness and improvidence. None of the money required for the war has been raised by increased taxation. Each loan means a fresh inflation of the currency, and the more this procedure is persisted in the more do prices rise, and all attempts on Germany’s part to fix minimum prices will be powerless to meet the situation. The Government of this country has not resorted to these unsound methods, and there is no attempt at concealment of the truth in financial matters in London. Weekly records of treasury disbursements and receipts, together with the Board of Trade returns, are regularly published, and in sharp contrast with this we have the fact that Germany dare not disclose either her trade figures, federal revenue, or the total of her gold reserves. War expenditure has amounted to over £1,000,000,000, for which no provision has been made either as regards payment of interest or sinking funds except by further loan operations.

MANUFACTURERS’ DIFFICULTIES. The subjects of shipping facilities and freight charges are reviewed at length in the letter. “Although the tonnage of merchant ships using the Port of London during the six months ended September 30 shows a substantial decline.” the letter proceeds, "the import goods total 1,472,060 tons against 1,117,683 tons for the corresponding months of 1914, so that the vessels reaching London must be in nearly every case full ships. To some,extent this is owing to the closure of such ports as Hamburg and Antwerp. A very large quantity of the increased imports represents additional arrivals of wool, meat, and other Australasian produce. The business of manufacturing exporters, and, to a certain extent, of merchants, is to-day, however, in a chaotic condition. For example, a firm employing some 12,000 hands has on its books, orders for export to the value of nearly £400,000. Almost its entire resources are devoted to turning out munitions, so that export orders have to stand aside. Many firms who are not engaged on munition work, cannot produce for export, because of the Government control of labour and raw materials. In regard to transport—goods are held up on the railways for weeks at a time, and though the importance of facilitating export trade is recognised, yet the establishment of a Government Export Departme.nt is the only way for solving some of these difficulties. In regard to shipping, rates have been raised to such a figure as to make export trade unprofitable in many lines. Export licenses are withheld on foolish pretexts, and the situation bristles with difficulties with Customs and excise. MONEY WASTED THROUGH IGNORANCE, “It is of course a difficult matter to consider the interest of exporters when tlie needs of the Admiralty, the ar Office, and the Munitions Department are so heavy, but Lord .Toicey stated four weeks ago that if four or five shipowners had been appointed to deal with transports, many millions of pounds might have been saved. Huge sums of money have been squandered by officials, owing to their want of shipping knowledge. Thousands of steamers have been requisitioned in an indiscriminate manner, so that ocean freights have now reached the highest level within living memorv; c.g.. before the war. the rate of freight on grain from the Argentine to the United Kingdom was 12s Gd per ton, a fortnight ago it had risen to 90s, and on Saturday last 117s Gd was paid for a ready steamer. The highly technical business of handling thousands of cargo and passenger steamers is in the hands of officials who have not been trained to the work, and you would be astonished if you could see some of the difficulties which meet us at almost every turn. We repeat that the Government has handled this matter in a reckless manner. Expensive passenger steamers have been sent 10,000 miles in ballast to load heavy cargo, instead of suitable cargo vessels ready to hand near the port of landing. Innumerable vessels arc kept four months or more lying practically idle, bunker coals have been bought at Gibraltar at 57s Gd. which could be purchased later on in the voyage at 14s per ton.