THE LIMITS OF PREFERENCE

Dominion, Volume 8, Issue 2420, 27 March 1915, Page 13

THE LIMITS OF PREFERENCE

VIEWS OF PRESIDENT OP CHAMBER OF COMMERCE. The president of the Wellington Chamber of Commerce (Mr. C. W. Jones) gave tho following interesting interview to a Dominion representative:— "The questions upon which the compliment is paid me of asking for an expression of opinion are practically, I understand, these two• (1) Should efforts be made to keep . foreign productions, especially German, from coming into _ the British Empire in competition with our own ? ' (2) If so, what is tho best way of going to work?

"I am, of course, asked for my views only-becanso I happen to be president of the Chamber of Commerce, but that fact unfortunately does not mean that I am necessarily better informed or more capable of forming an opinion than the next man.

"As regards the first question it may be doubted whether at the present time, when the whole Empire is filled with righteous wrath against German military mot-hoda and conduct, it. is possible iar us. to considtt tks subiccl -will} tta.

calmness which it deserves. Just now in the heart of conflict everything German is anathema. But let ns imagine iu the not far distant future a Germany defeated, humiliated and burdened with an Atlas load of indemnity; what then is going to be, or what ougnt to be our attitude ? .' ,

"Some distinction may perhaps- be drawn between Britain herself and the self-governing colonies. Britain herself as a manufacturing country dependent upon, foreign trade is not likely to ercct punitive tariff -barriers against any nation (Gorman or otherwise) with whom she can do business. This would truly be biting off the nose to spito the face. Moreover, there is the British tradition of generosity towards a defeated foe, which will 110 doubt bo as active in thefuture as in the past. . It. may be taken for granted that when the war is over English ports will be as open as they ever were to German goods, though it may be long before the latter recover: the ground they have lost, if they ever do so. ; "But as regards the colonies the case is somewhat different. As importers of. manufactures they have found it possible to offer some assistance to the British manufacture by means of a preferential tariff. Such a tariff might do adjusted so as to amount to total prohibition of-foreign floods, and just, at present pnbjic-sentiment mights endorse such a prohibition as against Germany. But are we.going to try and "maintain.a Serpetual boycott against her, and inefinitely exclude her .from the comity of nations? Such an effort would not be British and. would inevitablv fail. -

"And .it must not be forgotten that Customs .duties are paid by, the country that imposes them. If a.New'Zealander. buys a German piano under a preferential tariff,, he .either pays; a higher, price' than he would'have done if-there>had been no such tariff, or he gets an inferior article. ■ If the tariff is so high khat the foreign artiole is entirely excluded, the British manufacturer reaps the benefit of a closed market. In either case the consumer, pays, and in view of present agitation over the cost of liv-. ing, there are obviously limits to what can be, done in the way of tariffs, preferential or otherwise.

"We are no doubt all agreed that it is very desirable that Britain should get most, if not all; of the trade of the colonies ; but that is not going to. be done permanently and satisfactorily by any artificial restrictions. We may do all we can to inculcate a national preference for British goods, but wo are not likely as a nation to continue consciously to pay more for an article beoause it is British. If there is one tiling more than another to be proud of in our Empiro it is our policy of the open door, and our practical belief in the maxim of a. fair field and no favour. "By all means let our importers, and still more our Government and . local bodies, -exhaust every means of supplying their needs from Britain or from British colonies, before applying to foreigners; but the main burden, lies upon the British manufacturer, if he wants our- trade, to; study our requirements and see if he cannot supply us at least as well as anyone else can, assisted perhaps by wbat we can stand in the way of a preferential tariff, and certainly by our cordial goodwill. If we are not afraid militarily to stand up to the Germans either on land or. sea, why not meet them fairly in the area of commerce, instead of trying to put a ringfence round our Empire ? If by indusfrTi thrift and ability the Germans can hold their own with us, shall we not allow, when the bitterness of war has passed, that they are entitled "to try? "A political economist, might treat this question from his dry point of view and adduce weighty reasons to show the great desirability of foreign trade for our own sakes; but this, I take it, is not what is wanted from the ordinary commercial man when his opinion is invited." ...