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But, against all this, the Admiralty recommended the route strategically, and efficiency demanded it. Against this, no doubt, is the miraculous expansion of Japan with her gold standard. I find that the gold exchange of the silver Haikwan tael fell steadily, with the exception of five short upward fluctuations, from 6s. 6d. in 1870 to 3s. 83d. in 1894. In the next ten years, up to date, it has fluctuated violently, but, on the whole, in a downward direction, attaining its minimum of 2s. 4¾d. in March, 1903. If silver, the wholesale currency, thus varies in relation to gold, so copper, the currency of the people, varies in relation to silver. Taking one of the small private commercial codes actually in use, I find that the whole code gives an average of 27· Now she was determined to recoup that loss, and to find her Indies in the Far East. Thus Germany, too, has accomplished her desire of obtaining cable connection with the Far East independently of British cables.

It was this deep-seated feeling, stimulated by the Boer War in South Africa, and skilfully fomented by Germany, which has induced Holland to obtain cable connection with her Indies viâ America and the Pacific, in assertion of her independence of the British cables viâ India. Thus the much-desired independence of Holland has been effected, but only by exchanging the control of one nation for the control of two. An examination of ten pages of one of the most popular public codes of this nature, the A. B.C. In all, six attempts had been made to capture the runaway river before the last and successful one. This is an enormous sum to dump into a river, it seems, but since the river is captured and all interests immune from further trouble, the two companies feel amply rewarded. It was completed on November 4, 1906, and on the night of December 7, 1906, during the flood, the river again ate its way through the barrier of willow matting, piles, rocks and dirt and once more wended its way toward Salton Sink. For twenty years previous-since the negotiation of the treaty of 1878 with Samoa for an American coaling-station in the Pacific-the United States had been looking, ever more ambitiously, to the Far East.

Our cables, become unprofitable, will be sold to our American and German rivals, and British enterprise will vanish from that ocean, which now, in the phrase of Gibbon, is the scene of the world's debate. If, while Germany and France use the funds of the State to subsidize and support German and French cables, Great Britain similarly uses her national credit, as is the case of the Pacific cable, against her own people, then British enterprise, hopelessly overweighted by such an overwhelming combination, will roll up its cables and sell them for what they are worth. Hence a double-lever state of disturbed equilibrium exercising a prejudicial effect on foreign trade. It would necessitate the proximity of a ship to effect repairs. On the contrary, it has two instruments in its hand capable, if moderately employed, of controlling the cable companies with complete effect. Cable communication with the new American Empire was indispensable. These do not include works of the Organization of American States, United Nations, or any of the UN specialized agencies.

Assuming, however, that China and Japan, together with the other Eastern nations, do maintain a fair trade with ourselves, the telegraphic route from the East appears to be either across the Pacific to America and thence to Europe, or else across Siberia by land-line and thence to Europe. How was it possible for British citizens, now actively attacked and depleted by the Pacific cable enterprise of their own Government, to make headway against the conditions of trade, the facts of geography, and the ambitions of foreign nations thus briefly enumerated above? Thus her trade, which was £2,700,000 in 1868, was £54,000,000 in 1902, and, reckoning at the same ratio of progress, will be £109,000,000 in 1909. But here, again, the adverse point for Englishmen is that Asia will deal principally with the Asiatic. The Asiatic coast was thus linked up continuously in 1871 from Vladivostok to Singapore, and the Danes had filled the area north of Hong Kong.

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