THE Evening Star. THURSDAY, JULY 1, 1869.

Evening Star, Volume VII, Issue 1920, 1 July 1869, Page 2

THE Evening Star. THURSDAY, JULY 1, 1869.

The question of tlie proposed Customs Federation of the Australasian Colonies is to form the subject of a lecture at a meeting of the Political Association to-night. We have no idea what view the lecturer holds on the subject, but we think it one worthy of more consideration than has yet been given to it. The Political Association is in its infancy, and has not yet sufficient weight to exert a direct influence upon the Government. Governments do not like such societies, and in almost every country try to put them down or at any rate to ignore their existence. They look upon them much as rogues and swindlers look upon the police ; as men whose political vocation it is to watch their every move, and to bring to light every little departure from straightforward and honest courses. But this covert or expressed dislike on the part of a Government should form a strong recommendation in the minds of the people of a country in favor of such associations. It may be very inconvenient to have every course of action subjected to rigid scrutiny by a number of keen sighted men capable of making themselves heard through the pressor on the platform. No doubt it is unpleasant to have every word uttered in Parliament weighed, considered, and held up to approval or condemnation as it accords with sound principles or proclaims error. But it is a sign of sound political and social health when the people sit in judgment upon their rulers or representatives. It may, in ' fact, be laid down as an axiom, that no country is well governed if its inhabitants are unable to judge of the fitness of things for themselves. Much that has been done in New Zealand would never have been allowed had there been political societies in existence capable of thoroughly sifting every measure proposed, of exposing the motives that suggested it, and of pointing out the consequences. Had there been sounder information generally diffused on the operation of import duties, the quackery manifest in the tariffs of all the Australasian Colonies could never have been perpetrated. Political associations are schools for the education of the people in political science. Such schools are sadly needed, especially in Colonies; for in them it frequently occurs that political power falls into the hands of men whose previous education and habits of thought have been directed only towards a special industrial calling. When therefore, a proposition is made involving a wide departure from customary modes of international dealing, like that for a Customs Union of the Australian Colonies, whatever course is taken, is mere empiricism. By a lucky chance it may prove right; but as truth lies only in one path, and the paths of error are infinite less one, the probability is in favor of the wrong. So accustomed are men now a-days to the collection of the public revenue by taxes on imports, that it scarcely seems to enter into their minds that such a system can be objected to on grounds both of policy and justice. No doubt it is very convenient to collect taxes without the person paying them knowing or feeling that he is paying them. Had it not been for that master stroke of finance-raongering, it is very doubtful whether England could ever have prosecuted the wars that entailed so heavy a national debt upon her. People do not like to pay a tax when they know how much they are paying, and had the revenue been raised by direct, instead of indirect taxation, the imposition of that heavy burden would have been strenuously resisted. But such financial operations present impediments to the development of industry ; and any discussion upon the. question of a Customs Union necessarily opens up the whole question. Professor Hearn, in a very able work published, six years ago, remarks (page 430) The mode “ in which the public revenue of most “ countries is now raised is by indirect “ taxation. This practice is open to “ grave objections. ... It is obvious, “ from the very nature of the case, that “ indirect taxation acts as a disturbing “ force upon prices. It interferes with “ the free action either of labor or of “ some of its aids. It presents an arti- “ ficial obstacle to the attainment of “ the desired object ] and not unfre- “ quently this object is much greater “ than the actual amount of the tax “ would seem to indicate. The spon- “ taneous course of industry is diverted “ into new and less productive chan- “ nels. . . . The effects, too, of these “ disturbances are often felt in some “ remote part of the industrial system,

“ and in some unexpected manner. “ The high duty on coffee (in England) “ was found to check the establishment “ of coffee-houses and to promote the “ sale of intoxicating drinks. In con- “ sequence of the excise upon “ glass, chemists were unable to “ pi’ocure the vessels suited to “ some of their purposes ; and thus “ chemical researches were obstructed “ and an injury done to all the arts to “ which chemistry contributes. The “ duty on paper through the medium of “ the jacquard-cards employed was “ also a heavy tax upon figured silk. “ The brick duties prevented the lining “ of shafts and the tunnelling of work- “ ings, and so, considerably increased “ the danger of mining. When the “ duty on salt was abolished, the manu- “ facture of soda became profitable. “ The regular and abundant supply of “ soda altered the manufacture of soap, “ and extinguished the trades in kelp “ and wood-ashes, which the previous necessities of the soap boiler had called “ into existence. The cost of soap “ which had thus been indirectly “ increased was still further raised “by an excise duty. Its con- “ sumption, consequently, in 1861, “ was four times less than in 1851, and “ its place was in some degree taken by “ injurious and caustic powders. “ Hence an excessive destruction of “ clothes was at least to some extent “ the direct consequence of an excise “ upon salt. Hence, indirect taxation, “ like every other case of State inter- “ ference, propagates a multitude of “ changes, and generally of injurious “ changes, which, previous to their oc- <■' curronce. could never have been an- “ ticipated.” Other detrimental effects on the moral and social condition of the people could be easily enumerated did space permit, but enough has been said to shew that any discussion on a Custom’s Union will be imperfect that does not include within it the whole question of indirect taxation.