the existence of the China Merchants' Steam Navigation Company plying under the native flag, that flag which owes its recognition and existence to a convention with the Admiral of the foreign navies in eastern waters concluded not a score of years since. The Company now owns the purchase of Russel & Co.'s American steamers having largely increased its fleet-33 steam vessels of 22,910 tons. The establishment of this Company and the extension of its operations, for it is not content with merely the greater share of the local trade, but proposes to extend its communications to foreign countries, are signs of the altered policy already alluded to.

Li-Hung-Chang, the Govenor-General of the "home" province of Chih-li, is the patron, and probably the real founder and supporter of this important association. He is a Chinese by race, and, as such and by the exalted position at which he has arrived, the leader of the Chinese or national party-if parties exist in our sense of the term in the middle Kingdom-in contra-distinction, or perhaps even opposition to the Tartar party of the Palace, the concrete ideal of conservatism and reaction. This eminent Mandarin has had the wisdom to perceive that the true way to rid China of the foreigner is, not to attempt to drive him thence by force of arms, but to struggle with him persistently in trade and harass him by sharp commercial competition. How he has succeeded in this the history of the American and German shipping trade tells us.

The late degradation and sentence of the ex-Ambassador ChungHow and the reversal of the latter, exhibited the conflict between the two policies; the "Anti-barbarians" policy of the Palace Eunuchs and the Tartar Kinsmen of the Emperor, and the commercial policy of Li-Hung-Chang favoured by the Tsungli-yamên. Chung-How's liberation and the mission of the Marquis Tseng to St. Petersburg mark the triumph of the more pacific party. For some time to come, at all events, the plans of the Chinese Government will be laid to stimulate the rivalry of their countrymen with the trading nations of the west, and to provide the Empire with a system of defence which may secure it against wanton insult and aggression. Whilst the Japanese have been ordering in Europe sea-going ironclads and unarmoured cruisers,

the Chinese have contented themselves with coast-defence gunboats and guns for their river fortresses.

The attitude of the United States' Government with regard to Chinese immigration and shipping can hardly fail to further the schemes attributed to Li-Hung-Chang and his friends. The negotiations for the abrogation, or at least modification of the Burlingame Treaty, still proceeding, must give the Chinese authorities a chance to win for their countrymen a further share of the declining American trade. Left to itself, that trade shows but little sign of recovery; if further hampered by artificial restrictions nothing can save it from extinction. The Chinese have already begun to run a line of vessels bearing their flag to San Francisco, and the question is still discussed whether the discriminating duty of 10 per cent. ad valorem is to be levied on their cargoes. It seems that the President has statutory power to relieve, by proclamation, goods carried in Chinese bottoms from such discriminating impost. That if the relief be not granted the Peking authorities will reply in kind can hardly be doubted, and the result will be that the trans-Pacific trade will fall into the hands of some third marine.

There are lessons to be drawn from the present state of affairs in China which we certainly ought to learn. The real struggle for the advantages of the inter-treaty-port trade is now between the Chinese and ourselves. The former have defeated and practically driven off all competitors except us. The changes in the economic condition of the coast-provinces have hitherto been in our favour. The substitution of water for land-transport, and of steam for junk-navigation, conferred immense benefits on our shipping interests. The question is, Can we stand the competition to which we are now exposed? Time alone can supply an answer to this. The enormous resources of the Chinese as regards population give them great advantages in providing a supply of cheap labour on board ship. In this we also may share, and, indeed, have long shared. Artificers and stokers of Chinese race have for many years been employed on board the vessels both of our great steam companies and of our Royal Navy. It should be remembered that we have many thousands of Chinese fellow-subjects,

many of them of nautical habits who gladly engage beneath our flag. Fortunately we are not. simply carriers; the cargoes of our ships entering and leaving the Chinese ports largely consist of commodities shipped on British account, and these we shall, almost of a surety, continue to entrust chiefly to vessels entitled to the protection of our Navy and supported by the commercial repute of the British name. Nevertheless it behoves us to watch carefully the movement of commerce in the far East, and especially that branch of it in which our shipping interest has so much concern.

ON COMPASSES, AND THEIR ADJUSTMENT IN
IRON SHIPS.

(Continued from p. 740.)

T has already been shown that the magnetic character of a ship depends upon the magnetic direction of the hull while building. If the magnetism were no other than that of the permanent magnetism of a steel bar, it might be easily dealt with. Its effect on the compass would be this: as the ship's head was moved in azimuth round an entire circle, there would be found two points of no deviation, one being that of the ship's head when on the stocks, the other its opposite; between these two points are two semicircles, in one of which the deviation would be Westerly, and in the other Easterly, the maximum, in each case, occurring at that point where the disturbing force was perpendicular to the direction of the deflected needle: for the intermediate parts or points of the semicircle the deviation would be proportional to the sine of the azimuth of the ship's head reckoning from the points of no deviation in the direction of the maximum. Also to put it in another way, supposing yourself to be standing in the centre of the compass, looking towards the direction of the ship's head when building, the semicircle to the right of you would have the Westerly, and that to the left the Easterly, deviation.

This, then, is the semicircular deviation, and its total effect is that which has just been considered.

But since the ship's force generally acts in a direction making an angle with the axial line of the ship, it has been deemed more convenient to substitute, for this single disturbing force, two disturbing forces -one acting fore and aft (represented in the formula p. 740, by the coefficient B), and the other acting athwartship (represented by the coefficient C). See also, Fig. 9.

FIG. 9.

That part of the semicircular deviation represented by the coefficient B may be experimentally illustrated as follows:

A magnet placed before the compass with its S. end (blue pole) directed towards the compass, will draw the North end (red pole) of the needle to the ship's head, then, as the ship is turned round there will be, in the Eastern semicircle, a deviation of the North point of the compass to the right hand or East; in the Western semicircle, a deviation to the left hand or West.

A soft iron rod placed vertically in front of the compass, with its upper end at the level of the compass, this end, which will be a blue pole, will attract the North end of the needle, and produce a deviation of exactly the same kind as the magnet described above as having its blue pole pointing to the compass. It will, therefore, simply increase the semicircular deviation caused by the magnet.

If the N. end (red pole) of the magnet, or the lower end of the rod, be nearest the compass, or if the magnet or rod be abaft the compass, an effect of the same kind, but in an opposite direction, will be produced.

For the other part of the semicircular deviation, represented by

You require the form of a ship's deck cut out of paper, a pocket compass 1 to 2 inches in diameter, two small magnets about 2 or 3 inches long, and a soft iron rod; these you can so manipulate as to illustrate the phenomena of a ship built in any direction, if you previously determine the cardinal points in respect to the table on which you place your imaginary ship, and move the latter on a centre.

the coefficient C, place a magnet to starboard or port of the compass; it will produce an effect similar to that already described, except that a deviation of one kind will be the result when the ship's head is in the Northern semicircle, and of the other kind when in the Southern semicircle.

The effect of the two magnets and the one iron rod make up the whole of what is called the semicircular deviation; for which d = B sin z + C cos z

B being the semicircular deviation on the East course or point by compass, and

C the semicircular deviation on the North course.

It may also be noted here that the sign + is used for East, and the sign for West.

Each of the coefficients B and C may have the signs plus and minus, as significant of the direction in which the ship was built, and the character of the semicircular deviation produced therefrom. B is the representative of a force acting fore and aft.

+B indicates that the ship was built with the head in some Southerly direction, and that the ship's force attracts the N. (red) end of the needle towards the head, the consequence of which is that, in respect to the compass, it produces E. deviation in the Eastern semicircle, and W. deviation in the Western semicircle, as shown by the signs in Fig. 10; also with the maximum at East and West.

B indicates that the ship was built heading in some Northerly direction, and hence has a force attracting the N. end of the needle towards the stern, from which it results that, in