FISCAL ISSUE.

Dominion, Volume 3, Issue 780, 1 April 1910, Page 5

FISCAL ISSUE.

CANADA AND AMERICA. PREFERENCE RECOGNISED. MINIMUM TARIFF EXTENSIONS. By Telegraph—Press Assoclatlon-Oonyrlent (Roc. March 31, 11.35 p.m.) New York, March 31. President Taft has invited the Canadian officials to a conference to consider closer trade relations and a, goneral readjustment of duties. Ottawa, March 31.. Mr. Fielding, Minister for Finance, speaking in the Dominion House of Commons and referring to the tarifi agreement with the United States, said that one result had been a tacit recognition of 'the right of British colonies to give mutual preference. Retaliation was sometimes necessary in self-defence, but a tariff, war would be deplorable. Canada was now able to give preference to Jamaica and' other colonies. He emphasised that an honourable compromise- had been reached, and acknowledged the unfailing co-operation aud support of the British Ambassador, Mr. Jas. Bryce. Mr. Fielding added that he had firmly refused to. givo the United States the wholo of tho list of benefits in the Franco-Canadian commercial treaty, but said ho had offered to reciprocato for special reductions in favour of Canada below the minimum United States tariff. NEW ZEALAND UNDER MINIMUM.

AND AUSTRALIA. (Rec. March 31, 5 p.m.) Washington, March 31. President Taft has issued a proclamation extending the United States minimum tariff to Australia and ■ New Zealand. SUBTLE MANIPULATION OF RATES. The Payne Tariff, which was pessed on August 5, 1909, and went into operation on the following day, so far as the schedules are concerned, does not display an earnest desire to secure reductions. All the 481 articles of the "Dutiable," and the 237 articles of tho "Free List," bear evidence of examination, and many of them of a meticulous and subtle manipulation of rates and figures; but, throughout, the spirit of the M'Kinley Tariff of 1890, to "oncourage the industries of tho United States," is prominent. The Listian method of nursing internal trade, or. rather production, is adopted throughout Hence the iron and steel industry appears in 1909 not to require the "encouragement" which it had enjoyed for many years;. and ore, iron, bars, and other forms show a reduced rate, some of the rates substantially lower! Tin-plates were reduced lid. to 1 2-10 d. per lb.; but wool, even in the raw, woollen cloths, blankets, etc., sugar and confectionery, show no reduction. In some cases the labouring mountain has resulted in. reducing' the duty upon tho lower grades of an article, while maintaining the rate on higher grades. There are many'instances where the rate has been increased from 40 to 45 per cent.—as "willow furniture,": an industry requiring, more encouragement presumably. .' A few instances show a transfer from the "free list" to the dutiable, such as briar wood and zinc ore. But everywhere the principle just recalled will be found to be obsorvedj and, even now/ hero is lace advanced from 45

and 60 per cent, to CO and'7o per cent, ad valorem, with a general proviso that such lace articles as curtains, nets, pillows, etc., shall in no case, in spite of specific duties, pay less than 50 per cent, duty. Statement by the President.. On August 5 President Taft issued a statement, in the course of which 1 he stated: ' "■ . "The power granted to the Executive under the maximum and minimum clause 'may be exercised to secure the removal of obstacles which have been interposed. by foreign Governments in the way of undue and unfair discrimination against American merchandise and products. i'■ "The authority of. tho President to use agents to assist him in the application of the maximum and minimum section of the statute and to enable officials to administer tho law gives a'wide latitude for the acquisition, under circumstances .favourable to its truth, of information in respect to the, price and cost of production of goods at home and abroad which will throw much light on the operations of tho present tariff and be of primary importance as officially collected data upon which future Executive action and Executive' recommendations may be based." Mr. Taft; speaking, in September, 1909 said that the Payne Bill was the best Tariff Bill that was ever passed by tho. Republican party, that it was a substantial achievement in the direction of down'-, ward revision; and that '.k was utterly' useless to talk of another revision during tho present Congress. He demonstrated that the tariff had been increased on

articles tlio consumption of which amounted annually to 051,000,000 dols., of which amount 359,000,000 represented luxuries, leaving a balance of 272,000,000, representing articles which were not luxuries. : Against this he showed reductions on articles, mostly necessities, the consumption,of which amounted annually to 5,000,000.d015. . The Mihimuni Tariff. "The-United . States tariff, by Section 2 of Paragraph 829, provides that from and after March 31, 1910, • there shall- ho levied, collected, and paid on all articles when imported from any foreign country into the United States the rates of duty prescribed by the schedules, and in addition thereto 25 per cent., which rates shall constitute, tne general tariff of the United States. . "VVlienover after.that date, and eo long thorcafter as the President shall be satisfied, in view of the character of the concession' granted by the minimum tariff of the United States, that tho Government of-any foreign country imposes no terms or restrictions, ho may issuo a proclamation to this effect, and thereafter all articles when imported into the United States or any of its possessions from such foreign country shall he admitted under tho terms of tho minimum tariff. Increases or Decreases. Tho, "Times" summarises some of tho increases 'or decreases on each schedule thus:— . •, _ Agricultural Products and Provisions.— Tho average rate of duty on imports during 1907 was 30.18 per cent., and under the new tariff is estimated at 32.42 per cent. The rates have not beon changed on J210,200,090 worth of imports, have been increased on .£2,300,000 worth, and decreased on JG35,700 worth. Flax, Hemp, and Jute, and Manufactures of.—The average rato of duty on imports during 1907 was 43.71 per cent., and under tho new tariff is estimated at 44.10 per cent. The rates have not been changed on X 21,713,000 worth of imports, have beon increased on .£1,000,000 worth, and have been decreased on .£120,548 worth. Wool and Manufactures.—Duties of 150 per cent, on finished products may be found, tho duty on the raw material ranging from 35 to 45 per cent, on points where the importations are heavy. 'Where thi imports reach into millions of dollars, tho foreign importer finds a barrier ranging from 95 per cent, to upwards of 100 per cent '