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22 | MARINE REVIEW. [August 2, THE INDUSTRIAL SITUATION IN ENGLAND. While the producing capacity of the country is at the present mo- ment as fully occupied as most manufacturers could desire, and while all returns indicate great industrial activity the future is full of uncertainty. The cost of fuel, of raw material and of labor--all necessaries in manu- factures--is becoming more and more prohibitive, and we have reached the stage when clients find it too hazardous to enter the market. Thus the average value of coal exported in the past six months was 5s. 6d. per ton higher than in the corresponding months of last year--lds. 9d. against 10s. 3d. per ton, and the price for home consumption has simi- larly increased. So also with metals, in the production of which fuel plays so important a part. As regards textiles, although the volume of the raw cotton imported in the six months has decreased 12% per cent., its value is 16 per cent. greater; and in like manner raw wool has decreased 10 per cent. in volume, but thas increased 8 per cent. in value. Stocks, of course, have 'been drawn upon, but they are not inexhausti- ble, and dear raw material must now be paid for as well as more highly remunerated labor, with the result that all along tthe line contract prices for manufactures are necessarily higher. Added to this tangible reason for hesitancy, on the part of the purchasers of shirts as well as ships, there is the unsettled state of foreign affairs. It is an undoubted fact, although not always explicable, that the effect of such international crises, as are now experienced, is more far-reaching than their geograph- ical limits or their material influences, and is invariably a reason for the cautious buyer to delay orders. When the Transvaal trouble even- tuated in war it was of little consequence that the result was a foregone conclusion; the check in the flow of orders was the same, and hopes were set upon a new impetus being given to trade so soon as peace was declared. But there has now come the China disaster, with its appalling crime calling for vigorous punishment. Under ordinary circumstances such a punitive war would not greatly influence the industrial situation; but, like the near eastern question, the problem of China and the jeal- ousy of the powers incidental to it, has lurking around it immense poten- ~ tialities for international conflict. These elements, therefore, aggravate the tendency of the capitalist not to commit himself to any large expen- diture, already arisen in view of the high charges due to the threefold causes we have mentioned. The unfailing adjustment consequent upon the relation, or pre- dominance, of supply and demand must soon make itself felt. Coal, pig iron and steel are all obtainable only at inflated prices, owing to the ex- cessive demand for labor, etc., and adjustment must result. The railway returns afford the readiest means of determining the effect of high coal rates. Enormous increases in gross earnings have been recorded--it is scarcely necessary to quote the figures--but instead of some part of the excess in receipts over previous years being available for dividend, the whole of it and more is absorbed in expenses; and we have this week the first indication in the big decrease in the dividend of the London, Brigh- ton & South Coast Railway 'Co. The effect of dear coal is also in- stanced in the case of the almost universal increase in the price of gas. So with industrial concerns, the pig iron makers find that the margin of profit is vanishing, especially as reduced demand and the operation of large combinations of producers in the States, have tended to bring the price in America down by 20s. to 25s. within the past week or two. This applies also to such structural forms of steel work as are produced by a large number of firms; so that alike for pig iron and steel. makers here there is greater danger of keen competitive rates being quoted to British users, and a consequent sudden increase in the imports from the United States. These exports from the United States to Britain have not grown much recently, owing to the great home demand, but it is* only a question as to how soon there will be a production in excess of American needs. ) These points are of greater importance in view of the many returns all indicating a "boom" in trade; but statistics as to production are retrospective, and the absence of new contracts renders them unsafe guides when considering the future of trade. Of course, it is satisfac- -tory to know that the exports for the past six months are 14.1 per cent., and the imports 7.9 per cent., higher than in the corresponding period, and that exports of agricultural implemenis, steam engines and some other manufactures show almost similarly high rates of increase in value --8 to 9 per cent.; but it would be still more satisfactory to know that the amount of work in the order books now exceeds by 12 per cent. that standing to credit six or twelve months ago. Moreover, there are symptoms in these same Board of Trade returns which are not so reassuring as the general result. Exports which call for a great amount of skilled labor do not show a great increase. 'The value of railway carriages shipped is 40 per cent. less, of railway trucks and wagons 24 per cent. less, of cycles 23 per cent. less, and the weight of steel and iron manufactures 4 per cent.; of iron and steel wire 18 per cent., of railroad iron of all sorts 18 per cent. less, while the largest increases so far as the metallurgical or engineering trades are concerned are to be found in respect of more or less raw materials--pig iron showing an increase of 37.8 per cent.; old iron for remanufacture 59.6 per cent., unwrought steel 82 per cent., tinplates and sheets 26 per cent., and bar angle, bolt and rod iron 19 per cent. Increases in finished manufactures are few and slight. ; In the case of ship building, a representative, if not our staple in- dustry, we have authoritative figures from Lloyd's return. It is shown from the statistical abstract just issued that the tonnage of vessels com- menced with the quarter almost exactly equals the tonnage launched, the former being 379,170 and the latter 378,389 tons, so that the condi- tion of affairs does not seem to indicate any material change during the quarter. The tonnage of merchant ships now in process of construc- tion is 1,265,313, as compared 'with 1,260,422 tons three months ago; but this apparently satisfactory maintenance of orders is illusory. It would be easy to name several firms who have launched ships without having orders for steamers to fill the vacated berths; and still more easy to prove that the number of orders booked has shown a very serious decrease during the past four months. Prior to this cessation some of the firms booked well in advance, and thus they still "commence" vessels in lieu of vessels launched; but, nevertheless, the orders going are now very few in number and of little importance. If the total work under construction is compared with the aggregate at the same period last year there is found to be a decrease of 10 per cent. Thus against the total of 1,265,313 tons now there were at the same time last year 1,386,367 tons, and at the beginning of last year 1,401,087 tons; so that the decrease from the highest point is 135.774 tons, and there is almost a certainty of still further reductions. The diminution is very largely in vessels for British owners. : ; The decrease is widely spread, Hartlepool alone showing a contin- uance of the figures of recent periods, while the neighboring port of Sunderland has only a slight decrease. On the Clyde there is a marked falling off. At Glasgow there are 103 ships of 238,794 tons on hand, while a year ago there were 294,684 tons, and eighteen months ago 306,041 tons, a decrease of nearly 25 per cent. At Greenock the condition is equally unfavorable. The builders in the district have fifty-six vessels of 169,090 tons, against 200,749 tons a year ago, and 214,859 tons at the beginning of last year. It is worth mentioning here that there are two sailing ships of over 3,000 tons building, and three others of over 1,000 tons. Recently no large sailing ships have been built. The tonnage in the Belfast yards is fairly well maintained, there being twenty-four steam- ers of 193,804 tons, as compared with the same number of steamers of 215,069 tons a year ago, when the highest total was touched. It will be seen that the average size of the steamers has decreased; throughout the United Kingdom there are building fifteen vessels of over 10,000 tons, and five between 9,000 and 10,000 tons--rather fewer than was reported in immediately preceding records. We have indicated that Har- tlepool and Sunderland compare well with previous periods. At the former port there are under construction twenty-six steamers of 94,160 tons, and at the latter forty-eight vessels of 168,057 tons. Even at the two other northeastern ports, Newcastle and the Tees, the decrease is well under 10 per cent., the total being at the former seventy-nine vessels of 242,038 tons, and at the latter thirty-two vessels of 107,114 tons. In warships, too, there is a considerable decrease, although the admiralty have several large ships to give out soon; but, on the other hand many of the vessels now classed as under construction are approaching completion, so that the prospects are that the four arm- ored cruisers to be ordered will barely make up the tonnage completed: The state of affairs is as follows. July, 1900. July, 1899. No. Tons. No. Tons. Mevchant Shipss:c.2ei.c sn. ir ee ce 499 | 1,265,318 568 | 1,386,397 British warships (contract)......... 38 210,550 40 183,230 British warships (dockyards) ae 16 158,000 18 166,970 Foreign warships (contract).............seeeeees 18 63,525 27 101,875 MOtal o.oo. nee a ce ee ea 571 1,697,388 653 1,838,442 It will be seen that there is a great decrease in the foreign war- ships building, and altogether the labor value of warship work is much less even than the comparison suggests. The decrease in ship building is only typical of nearly all industries, and our review of the prospects enables us to agree with the opinion of the president of the board of trade, expressed the other day at. Liverpool, that as regards the em- ployment of the people the highest point has been reached and that the prospects are not altogether exhilarating.--Engineering, London. NAVAL MATTERS. 'Rear Admiral Royal B. Bradford, U. S. N., chief of the bureau of equipment of the United States navy, visited Norfolk navy yard last Sunday. This Sunday visit is-regarded as significant of the purpose of the government to begin preparations for active operations in China. There is now employed at this yard a force exceeding 2,400 men, about as many as were there during the Spanish war, when exceptional activity prevailed. The principal work now in progress is the refitting of colliers, of which four are being practically reconstructed. These steamers, in case of need, may be utilized for conveying stores and in certain con- tingencies might be used to some extent as transports. They will, how- ever, probably be used as colliers, and they are being put in condition as quickly as possible. The purpose of the government to send the troops bound for China overland to the Pacific coast, there to embark, is evi- dent. It is stated that several steamers have been chartered for use as transports. These are to be delivered to the government at the Pacific coast ports, one, at least it is said, at Seattle. Orders have been issued by the navy department to fit out the old cruiser Mohican for a cruise. The intention of the department is to use the Mohican as a training ship for landsmen, and it is admitted that if the situation requires it the vessel will be sent to China and her crew in training, consisting of between 300 and 400 landsmen, transferred to other American vessels in Chinese waters. The U. S. S. Mayflower, while passing under the Brooklyn bridge last week en route from the New York navy yard to Boston, had her main truck light carried away by contact of the main mast with the bridge. The mast was supposed to clear the bridge by 1 foot, but never- artes ihe collision occurred. It has been decided to shorten this mast y : _ Orders have been received in Mare island to fit up the U. S. steam- ship Mohican for duty on the Chinese station and to have her in condition to sail in seven days at the most. She will not arrive in Asiatic waters until the end of October. The board of inspection and survey have examined the Alliance and recommended that her machinery be removed and that she be turned into a sailing ship. The work will cost $75,000, and will be done at the New York navy yard. The navy department has just made the second payment on account of the construction of the 'battleship Missouri at Newport News, and ne eee payment on work done on the battleship Maine at the Cramp yard, The United States government is now negotiati i ' a : gotiating with the owners of the steamers Australia, Zealandia, City of Sydney, ee, of Para, Ohio, Senator and City of Puebla to charter them as transports. Ieee RESTS ORE EO ER eS RE | LIP ae ree <a aad 450 oe aes ak