The Evening Star TUESDAY, JULY 26, 1870.

Evening Star, Volume VIII, Issue 2252, 26 July 1870, Page 2

The Evening Star TUESDAY, JULY 26, 1870.

Kbw circumstances necessitate new arrangements. It is not therefore surprising that a cluster of new Colonies, In immediate contiguity, having diverse productions, should desire to make the best of their position, and contrive a system by which they may mutually benefit each other. The benefit derivable from markets to which access is easy has boon experienced by each Colony. The discovery of gold, and the consequent sudden addition to the number of consumers, gave an impetus to settlement and cultivation of the soil in Tasmania and Zealand, which has received a check since so many in Victoria and New South Wales have turned their attention to similar pursuits. Tasmania has been

the first to Bee the way to a remedy. Whether through being the first to suffer from the altered state of Colonial industry that has been gradually taking place for years, or whether through having the most to gain by the opening of the markets, the Government of Tasmania have taken the lead in the endeavor t?> repiove restrictions \ and have had influence sufficient to obtain an Intercolonial Conference on the subject. Although it has not been, strictly speaking, a success, it has opened up a question that may in the end lead to the best results. The primary object of the Conference was the extension of intercolonial trade. In order to this, it is assumed, and very correctly, that exchange would be facilitated by a uniform tariff, assimilated excise regulations, and a Customs Union. Then came the more debateable question of distribution of revenue according to the population; and finally the Conference found it impossible to agree upon the list of articles to be admitted duty free. This is not to be wondered at. The wonder really is that they should have got so far in their task as to overlook the equally difficult adjustment of apportioning revenue to population. Wo are not in possession of the arguments used by the delegates either for or against the propositions ; but there are some that are sufficiently obvious to render the scheme, in its present phase, impracticable. The Colonies are not only in different stages of development, but in different social conditions. They are consequently not equal consumers of imported goods ; and ns the Customs revenue is raised by duties on imports, the population _of one Colony ‘contributes much more in proportion to its numbers than the others. The Colonists of New Zealand, supposing in the end this Colony had become one of the Federation, are more heavily taxed than those of Victoria; and this not altogether because of the higher tariff, but because of consuming more imported goods. So that instead of being an advantage to New Zealand in that respect, a portion of its revenue would he transferred to the more self-supply-ing people of Victoria or New South Wales. Then with regard to what articles should be taxed and what be admitted free, a greater difficulty presents itself on two grounds :—First, certain Colonies have determined upon making the Custom House a regulator of social industry, and have decreed that certain classes shall have privileges conceded to them in the shape of protective duties, in consideration of their following stated employments. This cherished, though suicidal notion would have to bo abandoned ; and nothing is so difficult to uproot as superstition religious or political, because it is founded on ignorance. This, therefore, is one impediment. Next;—supposing such a miracle to be achieved as the falling of the scales from the eyes of Ihe protectionists, and their seeing clearly the advantages to all classes of unrestricted exchanges, the list of articles to be taxed for merely revenue purposes, forms an almost insuperable difficulty. What would be merely a revenue duty for one Colony, would be protective in another. It does not appear to be generally acknowledged that the object to be attained in imposing Customs duties must determine the articles to be taxed. Nothing is more common than to hear it asserted that as a revenue is to be raised, it does not matter whether the duty is paid upon aidicles that we can and do produce, or upon those which we cannot. Yet in this fallacy lies the distinction between duties for revenue and duties for protection. A revenue duty must be laid upon imported articles of general consumption, that cannot be produced in the country, if it is intended to bring money into the Treasury : for otherwise, just in proportion to the Home produce consumed, will be the decrease in the revenue. To this circumstance is owing the gradually failing revenues in proportion to the populations of Victoria and New South Wales. The latter country is producing sugar and its accompanying spirits. Victoria is manufacturing wines and other articles. In New Zealand duties on wine and sugar are revenue duties. In Victoria and New South Wales they will be protective duties. These are some of the difficulties that lie on the surface of the scheme. We believe them, in the present state of Colonial opinion, insuperable ; but wo have faith that in the course of time the attention now drawn to them will tend to point out the folly of the restrictive system, and to show that not only a Colonial, but an Imperial or even universal abolition of all duties on imports is the end at which all nations ought to aim ; and that the cheapest, fairest, and ultimately the easiest mode of raising a revenue is by direct taxation.