COLONIES AND SEAPORTS

There is another point of economics on which there seems to be some confusion of mind. If mere extension of Trade is the thing sought for, it really does not matter much, in these days of swift and international transport, whether the outlying lands with which the Trader deals or the ports through which he deals are the property of his own nation or of some other nation. The trade goes on all the same. England certainly has colonies all over the world; but with her free trade and open ports it often happens that one of her colonies takes more German or French goods of a certain class than English goods of the same class; or that it exports more to Germany and France than it does to England. The bulk, for instance, of the produce of our West African colonies goes, in normal times, to Germany. German or French trade does not suffer in dealing with English colonies, though English trade may sometimes suffer in dealing with French, German or other foreign colonies on account of the preferential duties they put on in favour of their own goods. Except for these tariff-walls and bounty systems (which after all, on account of their disturbing and crippling effect, seem to be gradually going out of fashion) trade flows over the world, regardless of national barriers, and will continue so to flow. It is all a question of relative efficiency and price. German goods, owing to their cheapness and their accuracy of construction, have of late years been penetrating everywhere; and to the German trader, as a pure matter of trade, it makes no difference whether he sells to a foreign nation or a German colony.

It is the same with seaports. Holland is delighted to provide passage for Germany's exports and imports, and probably does so at a minimum cost. The Berlin manufacturer or merchant would be no better off, as far as trade conditions are concerned, if Germany instead of Holland held the mouths of the Rhine. The same with a harbour like Salonika. Germany or Austria may covet dreadfully its possession; and for strategic or political reasons they may be right, but for pure trade purposes Salonika in the hands of the Greeks would probably (except for certain initial expenses in the enlargement of dock accommodation) serve them as well as in their own hands.

Of course there are other reasons which make nations desire colonies and ports. Such things may be useful for offensive or defensive purposes against other nations; they feed a jealous sense of importance and Imperialism; they provide outlets for population and access to lands where the institutions and customs of the Homeland prevail; they supply financiers with a field for the investment of capital under the protection of their own Governments; they favour the development of a national carrying trade; and, above all, they supply plentiful official and other posts and situations for the young men of the middle and commercial classes; but for the mere extension and development of the nation's general trade and commerce it is doubtful whether they have anything like the importance commonly credited to them.