PARTY CRISIS.

Dominion, Volume 6, Issue 1645, 11 January 1913, Page 5

PARTY CRISIS.

UNIONISTS AND FOOD TAXEB,

LEADERS THREATEN TO RESIGNA SECRET MEMORIAL. By Telegraph-Press Association-Copyright (Roc. January 10, 10.30- p.m.) London, January 10. _ The ."Morning Post" states that when it was evident that the bulk of tho mem-' bcrs of tho Unionist parly woro unwilling to accept the tariff reform policy onumciated in Mr. Bonar Law's speech at Ash-ton-undcr-Lymo on December 10, both Lord Lansdowno, Leader of tho Opposition in tho House of Lords, and Mr. Bonar Law intimated their intention to resign. '"■ As the policy outlined had previously boon endorsed by all tho front bonohcra of the party in tho House of Commons, and all ex-members of tho Cabinet in the House of Lords, they were therefore debarred from accepting the Leadership. When tho crisis, developed tho /back-, bench Unionists drew up a memorial expressing confidence in Mr. Bonar Law, and 200 members of tho party have, now signed it. It ja still doubtful whether Mr. Bonar Law is willing to withdraw his tion. '•".'." ' ■ •■■ 'v. The "Daily News" (Liberal) declares, that tho memorial is a long and complex document, and its contents are a striot scoret.. '."'' ■ The "Daily Express" (Unionist) protests against the "Daily Mail" interpreting tho memorial as a death blow to food taxes.:' ' '■'•'■■ '■.;.'•'• , "The Times" states that the crisis in tho leadership is now. a thing of tho past. ■ Tho-"Standard". (Unionist) says it is believed that Mr. Bonar Law recognises that the memorial 'has cased the party's and will enable him to continue in the'leadership in the circumstances, with..greater .confidence. ■; ;■, .';. '..]

"UNABATED CONFIDENCE." : . TERMS iOF THE MEMORIAL.\ : ~, London, January 9. ■~ Practically all tho Unionist members of the House of Commons, apart from the front, benches, aro signing a memorial affirming- their belief in Imperial preference,, and their unabated confidence h Mr. Bonar law's leadership. / The..best interests of the party, the nicmorial says, would bo consulted if the question of food duties was removed from the lis); to be submitted to tho electors at the next election. ~'. . Tho "Daily Mail" says that Mr.: Austen Chamberlain's; tact and goodwill have removed tho risk of a division jn tho party. Several -newspapers represents tho Unionists' memorial as expressing the hope that; if a Colonial' Conference dtcides\to tax food tho taxes will not bo imposed before the'general.election. 1 • > :'

EFFECT OF THE FOOD TAXES. , : . ; .LIBERAL CRITICISM. . : Sinco: tho. Unionists have . decided to make tariff -reform tho first plauk in their prograintno there' has been' much discussion'ill the. English press of the effect of the proposals. - Mr., Chiozza Money,' the ■ 'woll-lcno.wn Liberal statistician, in criticising, tho, schenio.'comes"'to the conclusion that food is bound to cost'more under tariff reform.'.Thus:'■'•: , '■.'■-■. ' "Whereas Mr. Chamberlain proposed to admit;colonial food free, the Tariff Commission '. proposed: to tax : colonial; food at dnc-half; the''rate' of duty impdsod on for-eign-food. -We must assume from Mr. Bonur Law's recent utterances that .he. proposes to tax:colonial food, and-it is necessary therefore to recalculate the revenue accordingly;-: : '•' '■'■■: ■'■.' "I have .worked out tho thing carefully for 1907, taking the proposed duties; as i , -'.-,,:'. The; Food Taxes. '■■ "On Corn:-Foreign. 6d. per cwt. (2s. per quarter): colonial, 3d. per cwt. ' "On ,! Meat: Foreign,-5 per cent.; colonial, 21 percent.' ■'i. "On■ Dairy Produce: Foreign, 5 per - cont.; colonial, 2J per cent. '; "The"result is as follows:—. ' . "Summary- of;;tho effect of tho Tariff Commission a proposed new food taxes; '- ..: Duty received - - ; ■;. '',':'■ •■.-.; by Treasury-.'.-". ' •, . (onforeign '/Jfcx pafd on - ; ''; ..' .and colonial entire 6upply ■.;••. .''•■'•; :.';'. : '.: imports), by oonsumor. Foods. ;: , £,'■- '-., ■.•£.■•' Corn .'. 4,400,000 : i .- ■ 9,000,000 Meat r.'...«."...» -2,250,000 . 5,000,000 Dairy produoe -.1,050)000 :'■ 4,100,000 Total, .......U>C8,300,000 .. .£18,700,000 "It will:be seen that tho burden on tho consumer,, instead,of being,£lo,3oo,ooo, as with Mr. Chamberlain's proposals on tho figures of 1912. has risen to nearly J!19,000,000 on the figures of 1907. The revenue received by tho Treasury has risen to «E8;3OO,OO0, chiefly because colonial stuff is now proposed to: be taxed. The net result to the consumer • is almost precisely tho same." Even if iho whole of the' .£8,300,000 bo used to. remit duties on tea, sugar, etc';, the British consumer loses over .£10,000,000 every year, a 6um nearly as great as would enable us to double the number of old age .pensions by lowering thopension age." '; -The argument behind, these figures is that sellers of corn, meat, and dairy produce will charge the samo price for their wares whether they, havo paid duty or not, and the samo price whether they are foreign, Colonial, or Home produce It will be impossible to have, threo separate prices for the three different- places of origin, and tho price whioh prevails will bo tho highest: price, whioh includes tie. duty levied,!i Britain's Meat Supply. ~ Here are tho figures for our meat supply, showing tho three, sources of our meat supply—the proposed duty to bo received by the. Treasury, and the actual tax which the consumer would pay:— , ':/'.. \ Meat Duties: Revonuo and Incidonoe, ~,'■■• 1907. . ■ .! Duty re- ' I ■ ; , -,-'■ ceivedby Tax on Value. Treasury. Conßumor. Supply. :'Million J! . £ ■•-. ,0 Foreign (duty 5 per cent.......' 38 1,900,000 1,900,000 Colonial (duty 2J' , ' ■ per cent :14 850,000 ' 700,000' Homo 00 — ■ 3,000,000 Total ......... 112 .82,250,000 425,600,000 In this case, it -will be scon, tho consumer pays'in increased prices on tho whole supply .£5,000,000, while 1 tho. Treasury receives only .£2,250,000, These proposals of Mr. Bonar Law, eays the "Manchester Qunrdiah," are "a new incarnation of ! Mr. Chamberlain's original proposal to remit existing revonuo taxes on food by moans of tho new taxes on food. - To these proposals all tho old criticisms will apply. If the tariff is going to keep out foreign goods it will produco little revenue. If it is going to produce a rev enuo worth counting it will admit foreign goods., If, again, a tax on wheat causes the prico of tho Homo and colonial product to tho consumer to rise, Will Lord Lansdowno mako up this loss to him or notP If not,.his pledge fails. If yes, ho will have to impose extra taxation somewhere to make good tho difference between a rovenuo and a protective tax, Lord Lansdowno had better not moke too sure that Liberal financo will not find methods of further reducing'the existing taxes on foodstuffs at the expense of fornis of wealth which can much belter affoixl \ to pav than tho slender, purse- of tho work- i man. ' _