Correspondence

Feilding Star, Volume XIV, Issue 32, 1 September 1892, Page 2

Correspondence

[We are not responsible for the opinions i of our correspondent*.] PROTECTION V. FREETRADE. TO THE KDITOR OF THE STAH. Sir, — In my last letter reference was made to the establishment of permanent industries in the home of local natural resources. The first great essential to this end is coal — without large resources in this direction England could never ', have assumed the supremacy of trade. : There is no reason why the woollen manufactories of this colony should not, at an early period, supply ub with nearly all our requirements, although they can never cover everything, because the secret or perhaps the experience of the French enables them to take the palm in certain textiles, after them come the British, and there always will be certain things it will pay us best to leaye alone. Next, if not equal in importance, comes the manufacture of boots and shoes, then saddlery. Now with regard to these three important branches of trade, it appears to me that the present rates of duty are amply sufficient to cover all risks under experienced management. The bulk of our wool and the surplus of our raw hides are exported to England, Let us now follow in the track of word exported. This will in part illustrate the position of other raw products. Freight, wharfage, storage, merchant's, commission, sale charges, brokers commission, insurance, warehouse charges etc., about 20 per cent of the gross sales. If it is returned to us in a finished form we have the packer, the return freight on the manufactured article, insurance, cartage, wharfage, exchange, interest on capi* tal, and 20 per cent customs. I leave out the British wool scourer, manufacturer, and city merchant's, because charges and profits pertaining thereto have their counterpart in the process of colonial manufacture. The above enumerated items tot up to 54 per cent on tbe gross value of exported raw wool into England. For argument sake call it 50 per cent, and this 50 per cent, sir, represents the additional margin to the colonial manufacturer for extra wages, greater value of money, and circumscribed output partly because of limited population, and partly because our kinsmen in Australia shut us out. la any case, surely this margin of 50 per cent is a sufficient incentive to enterprise. There is no doubt in my mind, that any further protection would lead to most disastrous results, for this reason — so much capital would How into these channels that trade would bo unduly forced, that supply would soon exceed demaud, and keen competition bring failure. This really is the key note to the protection trouble. With a tariff promissing large State guaranteed profits, people rush into certain industries, one follows another, competition grows apace, and the thing is soon overdone ! To prevent ruin and to repair their own folly, promoters cry, " More duty I" •• more Protection 1" And so it goes on and on, until at last, as we see in Victoria, the community as a whole going Protection mad. It is quite certain that no amount of Protection can make up for personal unfitness, want of capital, and unfavourable times. Among the manufacturing industries which if not already, can and will be, established in our midst, may be mentioned, woollens, men's clothing, boots and Bboes, mining, smelting, engineering, saddlery, carpets, pottery, paper making", rope making, soap and candles, agricultural implements, fruit preserving, cabinet making, carriage building, and travelling bags. There are many other manufactures of greater or less importance in addition to the above. I do not quote wool, cereals, frozen meat, butter, cheese, etc., but only those thiasja that have a local home. By reason of the natural sources of wealth peculiar to this country we can, in time, become prosperous in all those channels of industry and many others, if we avoid further Protection and " Paul Pry " legislation. If we are to have a general lowering and vulgarising of the maxims of true legislation we shall probably get more of Protection in response to the persistency of the selfish and misinformed portion* of the community, but if the bulk of the people who are Freetrade in principle, will only speak up and do something to form and guide public opinion, this pernicious doctrine of Protection will go no further in adding to the cost of the necessaries of life. Every patriotic voter should moke this a test question with candidates for Parliamentary honors, as only by a reduced tariff can the wage- earners of the colony dirive the full benefit of their labour. The wage-earners possess equal political rights, they owe it to themselves not to be led astray by political tricksters and false economic teachings promulgated for selfish purposes. I am, etc., H. C. Wilson.