January 28, 1916.

THE COLLIERY GUARDIAN.

175

freight rates. The Scottish coal trade is firm, and
values show a tendency to advance.

A. general meeting of the South "Wales Institute of
Engineers was held at Cardiff yesterday (Thursday),
when Mr. Wm. Stewart, the new president, gave an
inaugural address.

On Saturday last, before the Midland Institute of
Mining, Civil and Mechanical Engineers at Don-
caster, a paper on the uses and markets of coke-oven
by-products was read.

The Coal Conciliation Board for the Eederated
Area of England and North Wales will consider on
Tuesday next the miners’ application for a 5 per cent,
increase in wage rates.

The Vice-Chancellor of the Liverpool Chancery
Court has given judgment in favour of Lord
Ellesmere, in the action brought against him for
damages due to subsidence resulting, it was alleged?
through colliery working.

After the 31st inst., a permit from the Ministry of
Munitions will be necessary for the use of explosives
which contain more than 50 per cent, of nitro-
glycerine.

An important discussion of the position of the coal
trade as affected by the present high rate of freights
took place at a special meeting of the Cardiff
Chamber of Commerce, on Tuesday and Wednesday.

Before the Fabian Society, this evening, Mr. J.
Burgess will lecture on the coal supply problem.

At a meeting of the Institution of Engineers and
Shipbuilders, m Scotland, on Tuesday, a paper,
entitled “ A Suction Gas Producer Using Bituminous
Coal,” was read by Mr. R. V. Farnham.

Mr. E. Kilburn Scott will read a paper on “ The
Manufacture of Ammonium Nitrate, &c., from
Waste Gases,” at a meeting of the West of Scotland
Iron and Steel Institute, on Friday next.

His Honour Judge Moss, the independent chair-
man of the North Wales Joint District Minimum
Wage Board, has issued his award regarding the
wages of colliery “ shifters.”

Prof. Bone yesterday delivered the second of his
lectures on u The Utilisation of Energy from Coal.”
The third and last lecture will be given at the Royal
Institution on Thursday next.

Coal

Exports

from the

United

States

It is quite natural that the coal
shippers in the United States should
be in a jubilant mood with regard to
the boom in coal exports from that
country arising from circumstances
brought about by the war. The

Standpoint, interesting thing both to them and
to us is, how long will these abnormal
conditions last, and how much of the export trade
will they be able to keep when peace is restored,
and markets settle down to normal conditions. At

the present moment the feeling prevalent in the
United States is that the firm footing now gained in
the European coal trade, as well as their increased
hold on South American markets, promise to become
a permanent feature. While not inclined to this
view in its entirety, the British coal exporter is com-
pelled to take a serious view of the situation. The
new conditions that have arisen will undoubtedly
give some trouble. The Americans, having captured
certain positions, are proceeding, in the orthodox
military jargon, to consolidate them. The longer
the war lasts the more complete will be their hold,
and the less easy will be a reversion to the old
^conditions. It will be useful, therefore, to examine
the situation somewhat closely, and there will be no
harm in looking at it from the American standpoint,
which, even if too sanguine for our own taste, at
least will possess the merit of showing us the worst
aspect of the situation.

One of the first essentials of a successful export
coal trade is the quality of the coal that is offered.
Upon this point the, United States is in an
undoubtedly strong position. The eastern portion of
the Appalachian coal field contains an abundance of
excellent coal conveniently placed for shipment from
Atlantic ports. Mention need only be made of such
well-known qualities as Pocahontas, New River, Tug
River, and other varieties of steam and coking coals,
much of which is as good as any that we can export,

but all suffering perhaps from an excess of friability,
which cannot fail to depreciate its value for shipping
purposes. Then there are the " Fairmont and Pitts-
burg gas coals, mined in West Virginia and
Kentucky, all of which are of good quality, the
former especially having for many years past estab-
lished a reputation as a standard gas coal; while the
Pittsburg bed is the vein from which the well-
known Connellsville coke is made. A valuable area
of gas and coking coal, also, exists in the Birming-
ham district of Alabama, handy for shipment from
Mobile and New Orleans. We are not, of course,
inclined to admit that the average quality of these
coals reaches the highest average standard of British
coals, the reputation of which is an asset not to be
easily depreciated by a temporary loss of markets ?
but yet, in countries like South America, or even in
the Mediterranean, the United States can certainly
supply fuel calculated to satisfy requirements.

The coal shippers of the United States are also
taking the situation seriously. Examples are
plentiful. Let us take the case of Spain, almost an
entirely new market for American coal producers.
Previous to the war there was an import tax on
American coal of 70 c. a ton, as against 10 c. for
English coal. This preferential rate was in practice
prohibitive against American coal, especially as
there was also an additional transport tax, making a
total addition of 1*10 dols. to the mine price,
as well as the freight rate across the Atlantic.
When the British Government prohibited exports of
coal to Spain the Spanish Government secured an
Act of Parliament suspending all import and trans-
port taxes where the interests of the country
demanded. What the condition will be after the
war is, of course, uncertain. The suspension of the
import dues is presumably only an emergency
measure, and intended for temporary use. In the
United States an effort is being made to secure its
permanency by taking vigorous measures to con-
vince Spain of the advantages that are being offered
by the American shippers. It is realised that the
supply of something like 3,000,000 tons, or even
more, of coal to Spain may be permanently secured
if America can not only sell the coal,' but also invest
the money in Spain. This is undoubtedly an astute
move, and it will be interesting to watch its develop-
ment. In the meantime, other measures are being
taken to secure the advertisement of American coal-
selling agencies in Spain, a Government official
having been sent to Madrid to look after this busi-
ness, as well as to facilitate the advance of
American loans for the finance of Spanish enterprise-

Another precaution that is being taken by the
United States is to simplify the exchange. Before
the war, foreign coal credits could only be converted
into dollars through the agency of London. Bayers of
coal in South America, for example, had to transform
their cash into sterling on the London Exchange,
before it could be converted into dollars. The war
has upset this arrangement, and for a time the
United States dollar was regarded as being more
stable than even the British sovereign. Bankers
came to look with favour upon the dollar, and the
United States has lost no time in introducing into
the export coal trade methods of payment whereby
the purchaser has only to pay into his bank the
current coin of his country. This has been assisted
by the establishment of selling agencies abroad,
representing the leading coal companies of the
United States. The result, for the moment, is that
exchange on New York in favour of the dollar has
been as easy as exchange on London in sterling, a
not unimportant factor in the development of foreign
trade.

In endeavouring to perfect a coal - exporting
organisation, attention is also being given to shipping
facilities. Coal exporters are making efforts to
improve the supply of tonnage suitable for this class
of trade. New ocean-going coal-carrying vessels
have recently been built, capable of carrying 7,500
tons of coal, self-trimming and capable of rapid
loading and discharge. Still larger vessels are under
construction or have been recently completed, the
biggest having a capacity of 12,650 tons. The present
state of the shipping industry has stimulated American
shipbuilders enormously, and the present feeling

seems to be that this activity is only now in its
initial stages.

The question of future freights, however, is the
black spot in the highly-coloured picture, as seen cn
the other side of the Atlantic. Before the war,
freights were heavily against the American coal
shipper. The range of rates between Atlantic sea-
ports and the Mediterranean was from 12s. to 14s.
per ton, whereas the rate from Cardiff to Bordeaux
was only about 4s. 8d. America is hoping for some
advantage by diminishing the loss of time in dock,
which adds materially to the cost of coal shipping.
The case is thus argued: — The distance from
American coal ports to Genoa is about 4,200 miles.
At 10 knots per hour this journey would take about
18 days. Taking 12 days to discharge, the ship
would consume about 40 days on the trip if returning
in ballast. At the present rate the cost of the ship
would be nearly 3,000 dols. per day for a 6,000-ton
cargo. Any saving in time of discharging would be
highly profitable at the inflated tonnage costs of the
present time. It is the American hope that the
element of distance may be partially eliminated in
the future by more efficient organisation, quicker
passages and the more extended application of
mechanical appliances for loading and discharging
cargoes. As against these ambitious aims, however,
it has to be remembered that the United States
possess no monopoly of trading facilities, and they
will be competing against the most highly organised
of British trades upon terms which, after the war,
will be weighted against them by long-established
reputation. It remains to be seen whether the
friable American coals will arrive at their destination
in a condition equally pleasing to their customers,
when once again it will have become possible for
buyers to pick and choose their market. The success
thus far achieved by the United States was inevitable
under the circumstances. The temporary loss of
British trade is to be deplored, but we look forward
with confidence to the future, despite the present
advantages that the chances of war have given to
our amiable competitors.

The activity that is being displayed
Trade Policy by the Chambers of Commerce of
and	this country is a welcome sign that

the War.	our future commercial policy is

seriously being considered by our
captains of industry, who alone can assist the
Government in framing a clear-cut plan, whereby
we can not only further secure our own supremacy
in trade but also destroy for ever the footing in our
industrial concerns which Germany has hitherto
gained and grossly abused. The London Chamber
of Commerce has just issued a report containing a
record of the resolutions passed by affiliated bodies
not only in this country but abroad. It is to be
noted, also, that a great commercial conference has
been fixed by the Association of Chambers of
Commerce for the last day of next month. In the
meanwhile a meeting is to be held at the Guildhall
on the last day of the present month, at which the
Lord Mayor will preside over a great meeting of
business men, including representatives of more than
a hundred chambers of commerce and other trading
associations. It is generally understood that the
main feature sought to be brought about by these
conferences will be the establishment of an offensive
and defensive commercial alliance of the Entente
Powers.

What practical methods of accomplishing this end
will be adopted cannot yet be foreseen. It is,
however, generally recognised by politicians of every
shade, as well as by practical business men, who
may or may not possess political leanings, that in
this question of framing a new commercial policy,
we possess a powerful weapon of offence, which it
would be imbecile not to use to the utmost against
our unscrupulous foes. The present isolation,
also, of the Central European Powers, affords an
admirable opportunity for putting an end, once and
for all, to those possibilities of industrial warfare
which, to our grave danger, our enemies had so
sedulously employed. The President oe the Board
oe Trade has expressed himself in general sympathy
with this programme; and Sir George Cave has