Problems of the Pacific

by Frank Fox

But debarred from colonisation the Asiatic has still two other chances of competition:

(1) In the home markets of his White rivals in the Pacific;

(2) In such neutral markets as are open to his goods on equal terms with theirs.

The first chance can be swept away almost completely by hostile tariffs, which it is in the power of any of the White nations to impose. There are no Free Trade ideas in the Pacific; the United States, Canada, New Zealand, and Australia, all alike protect their home markets against any destructive Asiatic competition. If Japanese boots or Chinese steel work began to invade the markets of Australia or America to any serious extent, the case would be met at once by a hostile tariff revision.

The second chance, open to the Asiatic industrial, that of competing with White labour in neutral markets, of cutting into the export trade of his rivals, is greater. But even it is being constantly limited by the tendency to-day which makes for the linking up of various nations into groups for mutual benefit in matters of trade; and which also makes for the gradual absorption of independent markets into the sphere of influence of one or other group. Some students of tariff subjects foresee the day when a nation will rely for export markets on dominions actually under its sway and on a strictly limited entrance to foreign markets paid for by reciprocal concessions. They foresee the whole world divided up into a limited number of "spheres of influence" and no areas left for free competition of traders of rival nations. Under such circumstances a Power would have free and full entry only into those territories actually under its sway. Into other markets its entry would be restricted by local national considerations and also by the interests of the Imperial system having dominion there.

Present facts certainly point to the dwindling of neutral markets. An effort is constantly made by "open-door" agreements to keep new markets from being monopolised by any one Power, and great nations have shown their appreciation of the importance of keeping some markets "open" by intimations of their willingness to fight for the "open door" in some quarter or other of the world. Nevertheless doors continue to be shut and events continue to trend towards an industrial position matching the military position, a world dominated in various spheres by great Powers as jealous for their trading rights as for their territorial rights.

Imagining such a position, the Asiatic industrial influence in the Pacific would depend strictly on the Asiatic military and naval influence. For the present, however, there are many neutral markets, and in these, without a doubt, Asiatic production is beginning to oust European production to some extent. In the textile industries, particularly, Asiatic production, using European machinery, is noticeably cheaper than European. Yet, withal, the cheapness of Asiatic labour is exaggerated a great deal by many economists. It will be found on close examination that whilst the Asiatic wage rate is very low, the efficiency rate is low in almost equal proportion. Some effective comparisons are possible from the actual experience of Asiatic and other coloured labour. In the mining industry, for instance, Chinese labour, the most patient, industrious, tractable and efficient form of Asiatic labour, does not stand comparison with White industry. In Australia Chinese labour has been largely employed in the Northern Territory mines: it has not proved economical.[9] The Broken Hill (silver) and Kalgoorlie (gold) mines in the same continent, worked exclusively by highly-paid White labour, show better results as regards economy of working than the Rand (South Africa) gold mines with Kaffir or with Chinese coolie labour.

The Chinaman has a great reputation as an agriculturist, and at vegetable-growing he seems able to hold his own in competition with White labour, for he can follow in that a patient and laborious routine with success. In no other form of agriculture does he compete successfully with the White farmer. In Australia, for example, where the Chinese are still established as market-gardeners, they fail at all other sorts of farming, and it is an accepted fact that a Chinese tiller will ruin orchard land in a very short time if it comes under his control.

In navvying work and in dock-labouring work the Asiatic coolie is not really economical. To see four coolies struggling to carry one frozen carcase of mutton off a steamer at Durban, with a fifth coolie to oversee and help the voluble discussion which usually accompanies coolie work; and to contrast the unloading of the same cargo by White labour, with one man one carcase the rule, is to understand why low wages do not always mean low labour costs.