SIR HERBERT SAMUEL

Evening Post, Volume CXIII, Issue 31, 6 February 1932, Page 11

SIR HERBERT SAMUEL

BASIS FOR BARGAINING

SCEPTICAL OF SUCCESS

LONDON, sth February. In the course of the debate on the tariff proposals in the House of Commons the Home Secretary, Sir Herbert Samuel, said that the Government went to the country not pledged'to tariffs, but to consider without prejudice every icmedy for the adverse balance of trade, including tariffs.

Mr. Chamberlain had stated the case not for a temporary redressing of the balance of trade, but for a permanent, seiontific system of protection. He proposed, a tax of 100 per cent, on imports in the hope of excluding 5. 6, or 10 per cent.

Of the total, not more than 6 per cent, of the taxed foodstuffs would be excluded, and about 4 or 5 per cent, of raw materials, also a possible 10 per cent, of manufactures.

The scheme had to be permanent, because it would be the basis for bargaining with the Dominions at the Ottawa Conference.

It was a serious thing to tax foodstuffs in view of the present poverty of the people with 2,500,000 unemployed. Price's had not risen since the departure from the gold standard, but only because in the same period world prices in terms of gold had dropped by 6 per cent. In terms of sterling prices had risen by 8 per cent.

Nearly half of Britain's importations of flour, butter, cheese, and eggs, twothirds of her rice, and four-fifths of her condensed milk and margarine came from foreign countries, and would be taxed.

If for these things Britain could obtain real Empire Tree Trade, with the full entry of her manufactures to the Dominions, the matter would deserve consideration, but nobody anticipated such a policy. The proposed 10 per cent, would only be a beginning. The Advisory Committee would be empowered to increase the

duties, and Britain would be forced into the ranks of tho protectionist conntries.

Colonel .T. C. Wedgwood (Labour) said the effect of the tariff -would bo an appreciation of sterling which ivoulcl injure exports. Tho Government, driven by the Beaverbrook company, had taken another stop on the road to ruin.