The Government control has taken ships out of the long voyage trades and placed them in the Atlantic trade, where they are required as transports and for the conveyance of food. This policy, which was perhaps inevitable, may involve far-reaching consequences. The long voyage trades have been built up by shipowners at a heavy cost, and are also the creation of generations. These services involve costly adjuncts in the shape of docks, piers, barges, repairing shops, branch steamers, and through traffic arrangements. It may be said all this will be recovered after the war; but this loses sight of the difficulty of regaining a trade once its associations and connections are severed; and also of the probable competition of America and neutral countries. Certainly, the Blue Book rates give no compensation for such a disturbance. The Government are making huge profits out of shipping, but what becomes of these profits we have been unable to discover; they do not appear in any returns we have seen. But the time has arrived when the "Blue Book" rates require to be revised--this, in view of the heavy cost of the repairs which will be necessary when the war is over, and the necessity of placing the shipowner in a position to replace his tonnage at the enhanced prices which will prevail. 3.--PROBLEMS TO COME WITH PEACE We can now proceed to consider what will be the position of shipping after the war. This involves much clear thinking, and the discussion of several questions upon which no definite statement can be at present made. We start with a tonnage deficit as compared with 1914 of approximately 3,000,000 tons. The output of new tonnage at present falls short of our losses; last quarter to the extent of 367,296 tons. This is serious, but we are gradually overtaking it. We built last quarter 320,280 tons, and other countries did still better, turning out 864,607 tons, and it would appear as if we might now claim with some confidence that while the curve of the destruction by submarines is decreasing, the curve of the output of tonnage is increasing, and we may reasonably hope that at the end of the year our gains and losses of tonnage will balance. This will leave us still to make good the losses by submarine prior to this year. We have also to keep in mind that our shipbuilding yards are still much occupied with Admiralty work and with the repair of ships damaged by submarine attack. After the war the Government will have to demobilise, and the repatriation of armies comprising 5,000,000 men, with their munitions and impedimenta, can scarcely occupy less than two years, and will engage probably one-third of our available tonnage. Europe will be very short of raw materials of every kind; the importation of them will be very urgent, and food will also be short for some time.