OUR PREFERENTIAL TARIFF.

Dominion, Volume 3, Issue 654, 3 November 1909, Page 8

OUR PREFERENTIAL TARIFF.

"FAIITJBE}W;ITS,,PROFESSED OBJECT.. ■■.■".;:■'.. ..-FTIRTHEE EVIDENCE;/. .-':.'-. ' ,! ■:'-■'''.'.V(To : THK EdITOBJ ti Si:r,-rWhile preferential trade - is'- a . dry subject, -and .your readers may-think that thejr-' have, hail '.enough of. it,' yet it is still, a question bf' much- public, importance,, and-so I' triist you will spare /me space : .f or: reply : to Mr.[Allen's -letter in* your issue of October -29. In'-a' former letter I stated; that the Act had beenjv'a:failure!" This' did not mean, that tlfe Act jiad been altogether without effect, but that it. bild 'glaringly bailed in /'its prof essed object to transfer the supply of: the selection of goods, as set:'oiit in. the ..schedule :-of; : the-..Act, from foreign to British'sources. If a fair proportion, even half' the.valuer of such goods, had been transferired, then success roignt. with : some, deceniiy.have been claimed, but it has not been so, and its," failure, is' clear, by; all; the .tests applicable.,. To, summarise .the .arguments:—v 1. By< : the table which. I- supplied from, theVCufitpms. returns, the ; goods subjected . to preferential, duties had "not declined on'i 'the first five years under the Act, as pro-" '.-'. fessedly. expected, but had increased •• with ~'• trivial,.fluctuations/tho lowest ratio of such. : goods, to' other , imports being 3.94 in 1904,.,' '.rising to 5.473. in-1908, or, on the avorago . . ./.of ~4.Gi5: overVthe. termi ' ' ■~.- '- ; , • J ■;. 2. 2n comparing the value of all'foreign as " , against British' goods 'imported within the ' five years'term prior.to the Act, with that : /of' the; five years under it, the :pro- • -duced by. preferential' duties) 'is .Vjnappre- /. liable, the ratio .of /all , foreign ' goods v ■ iiiiported. being. 15.4-per cent; for. the prior. tiirm and-lG^per.cent...fpr the .latter....; ';.: 3. the ,':, total ./preferential /duty-paid, the amount collected in'l9o'i is " ,i shown : ,to■ have' been -and despite : ■ .this tax, instead i'of. cliecMng the. import < of .'foreign goods, these-imports have steadily: - risen, until/ in-' 1908 the'- duty collected:: /-amounted- t0; ; >E90,173./':■. ; ' " :.- '. ~; :Thes'e 'facts are surely- abundant .proof;of. the" failure "of the' Act in its professed: inten'i t<S transfer trade to British makers, and this although)the;gofids',were carefully selected by experiencediofficers '.beiilg,,.the/'best possible selection divertible.out' ijf-'tbb goods.wliich'.were. being/prbcureoV from other, countries. Mr. , ; Allen l'.cxttmtroduces-cpinparisbns.frpm. rather remote periods, and' iipbh th' 6 results of selected; years'; but 'Btotistical/'c'pmparisons.are of little.value. unless: where /reasonably' reliable''- averages • can be deduced. He ha? also ransacked the returns, ani/'qufttes ..various: items- where, .a .decline/ of the '/imported value/ has '.taken/ -jjlace..-. These iUustrations,- : :h6weveV,':'d6'iptlsuppptt .far.;Vns' : 'instahce.:v:.pver;.the. decline ■claimed yon' this/'m'a'iiufactiirei^Wasia.t/fir§t : 'JarE[ely Araeritiiri;.-but /betimes ;.the .British ( ;havo ..o.vertaken T theini ,"ahd !.pn ,'raerit:". have •'■■, over;,.. yeajs steadily)' won ■;;tliis'vtrade,';'and of j-.'this ;■-shoes,'- v'o.Ve'r protection ■ ■ o£-'.th'e; New'-J Zealand; -malaufdctiire*, and'--.wne.n::'the;'4.ctK'pf''l9o3;'di'd-restricting:"iinports, 'the>'mbre.'■.'jehalj'.tanff-Jl'pf; 1907-was'passed,-not to'-ekcludo forbigii- alone,but'also 'British manufactures... The value, of candles; imported -is? 'small-,, /and they 'are > also taxed'tb protsct the'.lbiialmanijfatture.'.vln re; spect :to : W\attd; ; Bheet/iron, '.foreign ■ irnports .have 'ever:been,'very'nominal, , ,and.'- depend, on the: flUetta'tions;'in/, prices" -in the several.- su'pplying^ionntriiffl?''.'Printing paper; it : is:.tfue, ; lias : been '•larg'ely''!,tran'sferred to /.Canada,■ but /not so'.'m'h'ch'by tne;duty,a9 fromi their/inore abundant and Cheaper.supply^of timber.'-.lnyrespect iam ; not; acqnaint: vasrtb/the s cause of Hhis small/ 'transfer, but these";-and jail other;-items quoted <■ are' pver- : the' : 'retuttie\'show,. . .by. / further ,gopds :; got -from ; abroad../. I -am, -.however,: especially indebted to Mr/ Allen; whose repute .for /thoroughness adds'^'.much ./.value -.to 5 ,- his criticism:/fl'e has-.probably/said all -that, can ,be,:said,;,nridi>h'as ; .riot seeriVhis "ii&j:,\o /question 'the "accuracy, of-those: main.,'fa'ctsi:up'on iwhich i i'my-/cbnt'ehhpna■ rp'st.-':I/much -regret'his--ap- , parent :lap.se;.frbm'the/"6ourid- ■ principles'- of .free'trade,'but unfortuiiately. .'he '-appears, to .share';th'at;passing hallucination ,'df, too ; many.:' ' '; Converts veiled ,"cause/>of-, pTbtec.; i'ti6n;'':-w}H r '-mth..Sir';Av:SpicM/.ptobably.,,ileiid' 1 M that/fiye/yea,rs / is an. insufficient- test of such'ian.; ;ie'xperimentnoi\Cl\is"may .appear 'to a' stranger. i to..hayelfprce:;.: SHll, ; all..that tho late Premier,: rMr.-'; t|.offer'■ in ■'■ ■of.his;proinises'/'inade.when,'"visiting England aniounfe, :as.;these viottris .show,; to : . only. -five per xentl/bfv.bur/'tijtal: imports, and .his tariff ; has .not succeeded in-reducine this-percentage. ;Dufing. these Ifive fjl'ears, N e ,w. Zealand /imports have-had a 'phenomenal '.increase-through,, ex'-' Tcessive.borrowing,-'.probably: relatively beyond-, .that of Cariadaor.Australia, .But the 'experience; in/ New, Zealand is,: a safe indication of .all that may:bo, expected -in-!those countries, and with .amazement ;ono-wonders howi'this craze got so strong a hold- upon'the British imagina--.tion., /-Why, iif .even' the' earnest; apostles' .of. •preference got the /whole of.the trade of-these' 'countries transferred ' that..'.England: : could supply, in amount it would only add a mere if|ef>bite: to - her exports; yet this petty; failure' 'with.-'-rio 'future- -flppears' tbrhave become ,the question-of,the, day; ,'a ..question;: strong. , enough ■ to /wreck,.party"''relatioiis and: upset 'the 'political '-/.icpnyioaons .^of ■;. responsible rrfen. Thanking/you for the space you have .'afforded :me,—l/am,/etc;, !/■/,; .-■'/: w* 1 v '•' -, ; . ■■ >'./ "-:-':;,./: .:/•//• '■ ; - ; ;-,-v-'JNO.'.:DpTHIE. /■November...'2;/ ■&'■ ■■ "■■■•'•■' .;■ ./■'/..':'/;;.'./,:, - :/