The Evening Star FRIDAY, JUNE 12, 1874

Evening Star, Issue 3527, 12 June 1874, Page 2

The Evening Star FRIDAY, JUNE 12, 1874

Scarcely more than ten years have passed since Victoria adopted a restrictive policy, and proposed to create prosperity by a system of exclusion. The working portion of the population deluded themselves with the idea that priority of arrival gave them the right to a monopoly of labor; capitalists deluded themselves with the notion that, by prohibitory duties, they could secure a monopoly of supplying the people s wants; and farmers deluded themselves with the notion that if foreign cereals were raised in price, they would enrich themselves by growfood. Some years prior to that period, the leading politicians were professedly Free Traders. But, almost as if by a miracle, a change took place. The idea was mooted that the doctrines of Adam Smith, Mill, and the poll-

tical economists were very sound when applied to old countries, but that newly settled lands fell under different laws ; and that freedom of exchange was not only not necessary to their prosperity, but was positively detrimental to their interests. We do not believe that in any country the masses of the people have realised the advantages of freedom. They are continually engaged in a war against privilege in others, but as constantly impose fetters upon their own order. Over each other they exert a tyranny, that, if attempted by other classes, would result in revolution. Exclusion in one form or other enters into trades unions, limitation of apprenticeships, and opposition to immigration ; and in obedience to their desires, the first step in Victoria's restrictive policy was the stoppage of aided immigration. This at once checked the prosperity of the working classes. They, secured what they sought—a monopoly of the work to be done; but the demand was soon overtaken, and as a consequence competition amongst themselves led to precisely the opposite of what they intended. They thought that by keeping out immigrants of their own order, they would keep up wages; but, as there were already more workmen than were needed for the work to be done, wages fell. Blind to the reason that led to this unexpected .result, it was attributed to foreign competition; and the next step was to exclude foreign manufactures and produce, by high duties, in order that Victoria might become what nature has not fitted her for, a large manufacturing country. High duties were to stand in the place of cheap coal and iron, and abundant, ill paid, and protracted labor. The plan was tried, and under the aegis of protection numerous schemes were put in execution, most of which have failed ; and of those which have succeeded, many owe their success to exclusive advantages granted in disregard of the theories on which the general system of finance was based. Not one jot more successful, as an aid to agriculture, has been the protective duty on food. Although the land has been extensively broken up, and numerous attempts have been made by small farmers to make their fortunes by growing cereals, nature and the unerring operation of social laws beat them. The small properties have been cropped until they are not worth ploughing; and disappointed, and in many instances ruined small farmers are witnessing their properties passing into the hands of mortgagees, or are selling them to capitalists, who are gradually but surely taking possession of the country at their own prices. These consequences have forced themselves so prominently upon the attention of the better educated classes in Victoria, that a complete change of opinion on fiscal policy is gradually and rapidly taking place in the public mind. The last election evinced this, through the return of many members avowedly on the ground of their being supporters of a free trade policy. Constituencies in which, a few years ago, the very enunciation of a policy of free tiade would have ensured defeat, elected candidates because of their advocacy of its doctrines. The mercantile classes almost to a man are converts to it. They have learnt by experience that the trade of Victoria has been crippled by the opposite policy: that instead of Melbourne becoming the emporium forth e South Seas, its trade is rapidly slipping away, and is becoming localised elsewhere. The commercial advantages which commanding position and capital conferred for so many years, have been neutralised by a vicious fiscal policy, and although it is not likely that it will be abandoned without a struggle, it is thought that even Mr Francis would be glad to give it up, if with a good grace he could see his way to reverse the measures he has been mainly instrumental in establishing. Possibly the move made in the right direction by New South Wales may aid materially in hastening a return to sound fiscal principles. Hitherto Victoria has been the exemplar which Colonial statesmen have quoted in support of their theories of exclusion. The policy of New Zealand has been to some extent influenced by it. Because Victoria laid a duty on corn, New Zealand imitated the folly. The excuse was, not exclusion but retaliation : a still more absurd and pernicious doctrine than the other. No duty on cereals can either beneficially or detrimentally affect a country that produces more of those articles than its people can consume ; or, if it is assumed for argument’s sake that the price is at all raised by it, its own people have to pay the tax on what they eat, while there is so much less opportunity of supplying the country against which the blow is aimed. Men do very differently in trade. If they want another’s custom they seldom resort to threats, but offer inducements. But aggregations of men seem to think that which would be folly in the individual is wisdom in the mass. So it was thought in Victoria ; so it seems to bethought on some points in New Zealand ; so it was thought at one time in New South Wales. The scales have dropped from the eyes of the latter; Victoria is beginning to see ; and New Zealand in its immigration policy has acted under a clear light. The tendency is toward a better understanding of the true interests of the Colonies ; and although during the last ten years they have been endeavoring to get rich by internal trade alone, it is beginning to be understood that it is more profitable to have a good customer and obtain a good price out-,

than to depend altogether upon an overstocked Heme market for profit. No nation ever yet became rich by narrowing its field of exchange. Victoria has proved this : the experiment has been tried and has failed; and sooner than the most sanguine could have believed, that Colony has become a warning beacon, instead of a standard for imitation.