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6. The trade in Arms and Ammunition and Gunpowder is monopolised by Continental manufacturers, owing to the much cheaper prices at which they can lay them down on this market.

7. Certain branches of trade, such as those in Wire Nails and Window Glass, have always been in Belgian hands, the prices charged being apparently beyond the competition of all other producers. Not so, however, the trade in Candles, which has been completely wrested from England by Belgian makers, this being to a great extent due to superior packing,

8. The competition of Japan is only just commencing, but it promises to provę serious later on. Already the Japanese have secured almost a monopoly of the trade in Cotton Waste, Washing Soda, and Sulphuric Acid; they are competing in Cotton Goods, Paper, Ship's Lamps, and cheap substitutes for Cretonnes, Blankets, Towels, Soaps, etc. Among other items, they are exporting really well made Cotton Half Hose fifty per cent. below the cost of similar goods from Germany; and their Cement, though inferior in quality, is cheaper than any European cement that can be imported, competing even with the local product, which has the advantage of paying no freight or marine insurance.

9.-The causes to which the displacement of British Goods in this market are to be assigned may be briefly stated :—

1.-Lower cost of production of rival foreign goods.

2. Disinclination of British manufacturers to study taste of consumer.

3. The steadily falling value of silver since 1873.

4.-Lower freights outwards from foreign as compared with British ports. 5.-Cheaper railway transit to foreign ports of shipment.

and

The last two pained causes apply more especially to inetals and heavy goods, No. 4, the Committee regret to say, is due to the action of the Shipping Conference (consisting chiefly of British steam-ship owners) which, while maintaining freights from British ports, carry cargo at a much lower rate from Continental and American ports, thus giving foreign manufactures a virtual subsidy in their competition with British products.

In this connection the Committee wish to make special reference to the advantages conferred on American Cotton Piece Goods in the China market by the rates of freight charged by the Conference steamers from New York to Hongkong and Shanghai, which average from 25/- to 30/- per ton as compared with 57/6 from London and Liverpool outwards. The same remarks apply to the shipment of machinery from the United States to China, the freight for which is about forty per cent. lower than that from British ports.

In considering this phase of the subject the question seems to arise how far the Imperial Government would be justified in requiring of the 'onference a modification of their tariff before continuing a subsidy or other support to any shipping company which is a party to a compact that places British manufactures at a disadvantage with foreign rivals.

10.-The Committee, moreover, feel bound to record their conviction that several of the witnesses were indisposed to speak freely on this subject of the Shipping Confer- ence; and they are of opinion that it is a question of such paramount importance to British Trade that it might fittingly for the subject of a searching investigation on the part of the Home Government.

11. The Committee are satisfied that, apart from this preference to foreign cargo, shown by Conference steamers, the competition encountered by British goods is for the most part a fair business competition. There are occasional infringements of British Trade Marks and more frequent imitations of British goods by Continental makers, but in the majority of cases the imitation is sold as such on its merits, and in some instances