The Globe. MONDAY, NOVEMBER 6, 1876.

Globe, Volume VII, Issue 743, 6 November 1876, Page 2

The Globe. MONDAY, NOVEMBER 6, 1876.

The question of free trade and protection, although occasionally referred to in this colony, has not of late occupied much attention at the hands of the public. Other and far more pressing questions have to be solved before our statesman can turn to this one. It is nevertheless a moat important matter, and is sure sooner or later to give rise to many a warm discussion in our House of Representatives. It is commonly urged that however beneficial such a fiscal policy may be to a country like Great Britain, where certain leading industries have been long established, it does not apply to the Colonies, where all kinds of industries require the fostering and protecting care of the Government, in order to give them a fair start. It is useless to point out to such, that the prosperity of a country is best fostered by the establishment of those industries only, which can flourish in it without assistance. The welfare of the world at large, as well as of each particular portion, is best promoted by the free interchange of the products of each part at a natural price. Each country has facilities superior to the rest of the world, for producing something useful, and at a less price than it can be made elsewhere. The advocates of free trade urge the universal application of this great law, and that any violation of it is a loss to all those who are compelled to purchase the protected article. Unfortunately it requires the possession a certain amount of reasoning power—though not much certainly —to understand the first principles of free trade. It is much easier to raise an unmeaning cry about keeping the money in the country instead of sending it away, which is repeated with parrot-like persistency in spite of the arguments of the free traders. They vainly point out, that if every individual in a community is forced to pay so much per cent more than he would otherwise have to do were free trade in force, for the goods he consumes, the country is poorer just bj that amount. As no argument therefore has any weight with the protectionist, the stern logic of facts may help to convince him of the fallacy of bis position, Two of the great Aus*

tralian colonies are at the present moment testing, by actual experience, the results of free trade and protection, under circumstances particularly favorable for such a trial. Both colonies, in point of wealth and population, are nearly on an equal footing, the advantage to begin with being in favor of Victoria. The latter colony has, for years past, been the paradise of protectionists. Every industry is studiously fostered by the State, and immigration is discouraged. New South Wales, on the other hand, has been wiser in her generation. Some few years ago she adopted the free trade policy, and she has never since had cause to regret it. It is admitted on all hands that the trade of New South Wales has been developed of late years with rapid strides, and that before long, unless Victoria reverses her fiscal policy, Sydney will occupy the premier position in the commerce of Australasia. But even in manufacturing industry the progress of New South Wales is rapid, as well as healthy. The Sydney Morning Herald publishes some figures to show the progress she has made in this respect. In 1866 New South Wales boasted of 2389 local industries ; in 1875 the number, notwithstanding the adoption of free trade, had increased to 9744 ; that is, there had been four-fold increase. In Victoria, in 1866, the manufactures amounted to 965; and in 1876, they numbered 2406, showing only an increase of about two and a half. The contrast is an instructive one, and will not, we hope, be lost sight of in New Zealand, when we come to discuss the question of free trade v. protection. Notwithstanding the strenuous efforts of Victoria to pamper and encourage local industries in her midst, the attempt has been a comparative failure; while in New South Wales, where production was left to natural laws, the result has been a great success.