The Feilding Star TUESDAY, JUNE 9, 1885. Free Trade and Protection

Feilding Star, Volume VI, Issue 152, 9 June 1885, Page 2

The Feilding Star TUESDAY, JUNE 9, 1885. Free Trade and Protection

The discussion which was continued in Mr Goodbehere' s letter of last Saturday, published in these columns, although under the heading of Free Trade and Protection, has drifted unintentionally into the consideration of questions of political economy which have only a relative connection with that of Free Trade. Our readers may remember it arose from our comments on a critique in the Christchurch Press on a speech made by Mr Holmes, M.H.R., in which he said— "The more the exports of a nation exceed its imports the greater is the measure of prosperity which that nation must be enjoying." We contended that Mr Holmes was correct in this view, and that he had not given utterance to a " time worn fallacy." We have carefully considered the position taken up by Mr Goodbehere, and the arguments quoted from authorities in support, but we are yet unconvinced that Mr Holmes was wrong. Mr Goodbehere quotes Mr Mongredieic, who concludes his argument by saying — " Instead of a persistent excess of exports being a matter of pride, it is a proclamation of indebtedness to other countries ; and, on the other hand, to view with regret the increased excess of imports over exports, is to view with regret the increase of national income arising from foreign investment." Now this means, if it means anything, that the commerce of a wealthy nation is this most remarkable paradox : The more a nation produces and sells, the poorer she is ; and the more a nation buys and consumes, the richer she is. We do not believe it. It appears to us that what are merely the evidences of the existence of wealth in a country are accepted and brought forward as the causes of its wealth. This is starting at the middle instead of the beginning of the subject. We still hold to the commercial belief that the " balance of trade must be in favor of every country, or the merchants must in time retire from it." That balance ought to be, and is, created by the margin of profit on the exports. There can be very little analogy between a wealthy nation like England, which may be said to hold the capital of the world in her hands, and with new colonies just starting into existence ; a point which will have to be borne in mind when New Zealand is the scene of the battle which is close at hand between the rivals — Free Trade and Protection. The two great examples which will be held up as guides will be America by the Protectionists and New South Wales by the Free TradersIt is safe to assume that the hardest contention will be between those theorists who, without the ability to assimilate the experiences offered in the history of this colony, will blindly follow the axioms laid down by political economists, why are admitted autho rities in countries whose circumstances are so different to those of New Zealand, and those still more objectionable " practical men," who will view the bearings of the question by the glimmering light of their own self interest.