Another interesting question is the probable effect of the canal on the American mercantile marine. The ocean-going merchantmen of the United States engaged in the foreign trade are practically non-existent, though the "coasting" trade, which includes the trade of Hawaii and the Philippines with the United States, is strictly reserved to American vessels, ships flying foreign flags being entirely excluded. But these latter, which are in the main British, carry on all the foreign trade of the United States with South America, New Zealand, Australia, Northern China and Japan. It is almost unbelievable that in 1908 there was not a single steamship flying the flag of the United States between the United States ports and those of Brazil, the Argentine, Chile, or Peru. The mails from New York and the other Atlantic ports of the American republic go, or went until quite recently, _via_ Europe, though New York is 370 miles nearer Brazil, etc., than the Old World coasts.[19] The reasons for this want of a foreign-trade mercantile marine are chiefly the greater cost of shipbuilding in the United States and the requisitions with regard to wages and food of the American trade-unions. The result of the high standards of comfort thus imposed has been that the cost in wages and food to run American ships under American conditions across the Pacific is double that in European or Japanese steamers. It is scarcely to be wondered at, therefore, that some people in the United States regard the Panama Canal as a very disinterested gift from the United States to humanity at large, especially perhaps to Great Britain and Japan--as an example of altruism run mad. But while the United States may not be ready to reap the full advantage of the canal at the start, it is highly probable that its opening will lead to a rapid growth in the United States merchant service. A larger coasting fleet will be required with larger vessels, and this will lead to a general development of the larger classes of shipbuilding. At present no vessels are permitted to fly the American flag unless American-built. A large number of American-owned vessels are therefore registered under the flags of some foreign nation. As the United States begins to compete in cheapness and efficiency of shipbuilding with other countries, the chief motive for this foreign registration will be removed. Great Britain cannot expect to be the chief carrier of United States trade for ever. This is indeed one of many directions in which the opening of the Panama Canal may tend rather to the disadvantage than to the benefit of the United Kingdom. There is no reason why the United States should not build up a mercantile marine as swiftly as Germany and Japan have done. England will have to consider seriously this and many other probable effects of the canal closely touching her most important interests.