1:3. Mercantile navy and tariff.—The absence of a tariff in Great Britain, except on a few specific arti cles, is of great importance, because not only do for eign goods find a ready market, but it permits British merchants and others to import goods into Great Britain free of duty and export them at their con venience. London and the other important seaports of Great Britain correspond to the freight yards at railway centers. Cargoes consisting of goods of every description pour into these ports from all parts of the world and are there sorted into mixed cargoes to be dispatched to various countries. In other words, London also acts as a clearing house for cargoes.
The United States is so irrevocably committed to a high tariff that it is unlikely that any appreciable mod ification will be possible for some time to come, tho this obstacle in New York's path might be removed in great measure by the establishment of free ports.
Large amounts of British capital have been in vested in the establishment of banks in British colonies and in foreign countries with head offices in London, and these render invaluable assistance in the operation and preservation of British foreign trade and commerce.
Great Britain possesses a mercantile navy second to none in the world. This not only means an immense toll on the world's commerce in the way of freight, etc., but also enables Great Britain to govern to a great ex tent the destination of cargoes. Incidentally, because of her large shipowning, Great Britain is naturally interested in marine insurance, and owing to the ex cellent standing of her insurance companies does an immense business in foreign marine insurance. Lloyds, an association of English underwriters of ma rine insurance, collects and distributes by cable reliable maritime intelligence thru its agencies established in every part of the globe ; it also issues Lloyd's Register, giving the rating, etc., of every British and foreign ship.
British navigation and shipping laws are liberal. A foreign ship is in the same position as a British ship with regard to British trade, and foreign ships engaged in the coasting trade are not subjected to higher port rates than British ships (141 Custom Law Consolidation Act 1876) . British law affords equi table protection both to British and foreign seamen, but avoids emasculating the service by undue pater nalism.
The navigation laws of the United States have al ways been a serious handicap to her shipping business and the recently passed La Follette's Seamen's Law will still further embarrass the American ship owner.
14. England's foreign trade.—Under normal con ditions Great Britain has an immense export and im port trade with every part of the world. This great commerce is not only of material benefit to the country generally but the constant flow of inward and out ward remittances forms an invaluable nucleus for London's foreign exchange operations, and bills of exchange can be bought and sold in London drawn on any place in the world, no matter how remote. For the year ending December 31, 1913, the imports of Great Britain were 1768,734,739 against exports of 1634,820,326 representing shipments from and to every country of the world. At the end of 1915, ex cluding certain goods belonging to the British and allied governments, the figures for which are not avail able, the exports were 1483,444,459 against imports of £853,756,279 a shrinkage of about 23 per cent. It is evident that Great Britain is still able to maintain the bulk of her export trade notwithstanding war con ditions and the shortage of bottoms.
Great Britain has a fully developed banking sys tem, eminently adapted to the requirements of her in ternational trade and finance, which has been ably and successfully conducted flirt' a long series of years by highly trained bankers, in whose judgment and con servatism the British public have every confidence. Consequently the country is practically immune from panics and other financial disturbances. The bank ing laws are simple and impose no unwise restrictions as to legal reserves, etc., leaving such questions to the individual judgment of the banks themselves. Expe rience has shown that good banking is obtained not so much by good laws as by good bankers.
\re have now reviewed briefly the principal reasons to which London owes her financial supremacy. and tho the events of the past two years have brought New York into a position of financial eminence and power. it remains to be seen bow much of this power has been thrust upon her temporarily and how much she has acquired permanently, at the expense of London.