PREFERENTIAL TRADE.

Dominion, Volume 1, Issue 133, 28 February 1908, Page 6

PREFERENTIAL TRADE.

New Zealand interest in the fiscal problem of the Empire generally wanes or waxes according as the fiscal controversy in Great Britain is stagnant or active. For some time past there has been a gradual slowing of the tempo in the fiscal issue, and at present it is quite in tho background of a stage occupied by the disputants on the Irish and Education questions. The conditions are, therefore, favourable here for a quiet consideration of Mr. Jeffray's report of Anglo-New Zealand trade, summarised .in The Dominion on Monday, and of the useful memorandum of the Tariff Reform Commission, of which we print a summary in this issue.

Mr. Jeffray's conclusions were wholly favourable to the value of our preferential tariff in protecting 'the British.' exporter against his ...foreign rivals in the New Zealand market. The marked increase of the total imports into this country in 1906 was accompanied by a nearly equal increase in the imports from the United Kingdom. In - 1906,, that is to say, the United Kingdom and British possessions generally were enabled to secure the whole of the increase in the import of the commodities affected by the preference. Mr. Jeff ray was, moreover, led to the conclusion that "it is clear that the slow decline. which was taking place [in the British preeminence in trade] has been "checked, and that in the last five years, British traders have held their ground, and secured in 1906 their-full share of the striking expansion which characterises that year." The statistical tourneys of the Tariff Reformers and Freetraders in. Great Britain have taught the bewildered public to exercise, the 'greatest.caution in accepting the suggested lesson of even the plainest figures, ■ and Mr.' Jeffray was, therefore, wise in pointing out that, the condition of steamship, communication is a large factor in determining the share of Great Britain in our import -.trade.' Obviously it is impossible to claim for a : preferential tariff'. the credit of crowding out, a supplier who has no communication witlv the country imposing. that tariff.

The Tariff Commission's memorandum goes more deeply into details than tlio Board of Trade ■ report. ; It is pointed out, for instance, tliat the preferential principle has. enabled British iron to be landed in New Zealand at a lower price than the Continental article./ The import of American hoots, too,'fell off by over 40, per cent, between the years 1903 and 1906, while the import,.of British /boots increased by/over 75 per cent. The new tariff, moreover, has extended the area of prcfcrence, and it is calculated that, whereas' under the old tariff 2j millions' worth of . imports into New Zealand received preferential treatment, the value of the goods receiving preference if the new tariff had been in force would have been £4,000,000, ornearly 50 per , cent, more,'than was actually the. case. It is satisfactory to know that our preferential tariff is really assisting to conserve' the , Empire's trade for the Empire itself. Our chief concern'is to encourage our own industries, and to' do 'it by striking a balance' between the 1 free admission of Imperial food's qn .the one hand, and an impossibly high: protective tariff on the other. The protection given to local industry, as, is made clear by the figures quoted by. Mr. Jelfray to show our, industrial development, is quite adequate, 1 and sufficiently' high to allow a margin, for the working of the preferential:principle.'. ', ;i