The Evening Star THURSDAY, JUNE 25, 1874
The memorandum of the Colonial Trea surer regarding arrangements for reciprocal exchanges of products with other Colonies opens up the whole question of fiscal regulations in their relation to trade. On this point there can be no •doubt that the honorable gentleman at the head of the Administration holds erroneous views. There is something very specious about the theory of encouraging trade by manipulating tariffs: it sounds very well to say to Victoria, “If you will take my beer or my corn free of duty, I will take your wine on the same terms.” Bub even when all is done, the trade of Victoria in beer may not be secured, as it is quite open to that Colony to make precisely a similar arrangement with Tasmania or even Great Britain herself; for no one would suppose that the power of entering into reciprocal arrangements with other countries would be abandoned for the sake of the trade of New Zealand. The same view would be taken by New Zealand. If Victoria demanded, as one condition of the concession, that no similar arrangement should be entered into with New South Wales or Queensland, as a matter of course the negotiations must fail, as it is equally our interest and our object to extend commercial relations with them as with that Colony. Nor does it follow by any means that the advantages sought could be secured. Although there may seem to be something gained by removing impediments to trade with one Colony, the position seems to illustrate the old proverb, “You may lead a horse to the water, but you cannot make him drink.” We are sufficiently in love with beer brewed in Otago to imagine that it would be preferred to the apology for beer produced in Victoria; and if the import duty were continued on the malt beers of other countries, there would be a premium offered by the country on drinking Otagon beers. But we are not so sure that the wines of Victoria would meet with such general acceptance here. The probability is that in that particular instance, and under those conditions, a reciprocity treaty would be. favorable to this Colony, and that the exchanges would be in our favor. But Victorian politicians are apt to find such things out, and are not likely to make a one-sided arrangement. Giving a premium upon the consumption of beer from New Zealand would be equivalent to cancelling import duties on all beers; for quality being equal, that offered at the lowest price would be preferred. Precisely the same argutnent applies to every article of consumption. Reciprocity, like protection, is a delusion and a snare. It is a high-sounding word; but, applied Jbo commerce, it means restriction, and restriction implies injustice. We do not .think that either of those theories of reciprocity and protection would .ever find acceptance amongst men, were both sides of the question fully and impartially examined, The fair side is, If we can secure the trade of a .certain Colony by giving specific advantages, it will be so much profit to us. It may be sp—there should be profit in all trade; but what is the other side ? —the cost of the advantages conceded. The benefit, if any, is usually seen in the enrichment of a few: the drawback, is the cost of the concession which is paid by the many, and is for the most part unseen, or, if seen, attributed to other causes. The cost of the concession to New Zealand by Victoria might be the whole sum derived from an impprf duty on beer. Such a plan followed out in eveiy item of commerce would ultimately annihilate the Customs revenue ; while the price of the articles would scarcely be reduced, because of the exclusion of competition with one country or another. The whole difference would therefore have to be paid by additional taxes on all consumers. It would be a positive boon to a few for a time, but even their profits would be grasped at by competitors ; so that ultimately there would be no gains beyond those obtainable in other employments. The unseen, so far as New Zealand would be concerned, would be the amount of duty remitted : a sum that would have to be made up in some way or other by taxation; or, through the non-receipt of it, some useful work calculated to prove highly productive might have to be postponed, or altogether abandoned. We often read of the mummeries of “rain-makers” in Africa—a class of politicians who make a living by professing to be able to command the forces of nature. The experience of all time has proved the inefficiency of their efforts. A chance shower may have followed their incantations, and all their failures are forgotten. We laugh at those poor Africans for trusting in their superstitions ; but we are not one jot wiser when we put our trust in political an,d financial trademakers. There are laws of exchange as inexorable in their operation J as the physical laws on which de-i pends a fall of rain : no reciprocity i or protection can over-ride them. Every effort to drive trade in a particular direction may crush it, but can never render it profitable if there is not within itself the germ of profit. The duty of a Government is the removal
of impediments to commerce, not the enactment of them. If heavy duties ate laid on imports from a particular country, trade and all the profits derivable from it cease with it j and supposing that like classes of geods are brought in from other lands, there is only a transfer of trade from one to the other—there is no increase. New South Wales has hit upon the only solution of the question—free trade. The true policy of a country is to raise the necessary revenue at as little. cost to the community as possible, and not to trouble its head with the fiscal concerns of other lands. Adopt the nonintervention principle, and we may be fully assured we shall have as much trade as we have goods to give in exchange for.
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Evening Star, Issue 3538, 25 June 1874, Page 2
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1,030The Evening Star THURSDAY, JUNE 25, 1874 Evening Star, Issue 3538, 25 June 1874, Page 2
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