In the later 1890s and into first decade of the 20th century, structural changes occurred in the operation of the Pacific trading companies; they moved from a practice of having traders resident on each island to instead becoming a business operation where the supercargo (the cargo manager of a trading ship) would deal directly with the islanders when a ship visited an island. From 1900 the numbers of palagi traders in Tuvalu declined and the last of the palagi traders were Fred Whibley on Niutao, Alfred Restieaux on Nukufetau, and Martin Kleis on Nui. By 1909 there were no more resident palagi traders representing the trading companies, although both Whibley and Restieaux remained in the islands until their deaths.

What operational changes caused a decline in the numbers of palagi traders in Tuvalu?