FREE TRADE.

Hawke's Bay Times, Volume XII, Issue 537, 26 December 1867, Page 1

FREE TRADE.

fFrom the Sjtocy Homing Tit raid,) The question of free trade, which at this moment is one of the leading topics of political interest in nearly all the Australian colonies, is being discussed also in important centres of civilization, bo ill lii iiie old aud UcW Woiiu. The genius of protection, which has allied itself to imaginary national interests, and sought to shelter its inherent selfishness under the guise of patriotism, is challenged to prove its virtue. And it was never more hard pressed than it is now to stand secure within its old lines of defence. We reprinted the other day the pro gramme of the Free Trade League of New York. While America was peaceful and prosperous the financial aud commercial loss of its protective policy was disguised. A rich and growing country can afford to spend and even to waste and not feel the loss. And what the continental countries spent in keeping up immense

armaments, the United States spent in patronising manufactures—and to much better purpose. But in addition to its peaceful development, the Great Republic has now won the glory of being the greatest military power on the face cf the globe. It has raised, clothed, equipped, drilled, and encamped more men at one time than any other nation had ever done before. It has fought bigger battle?, fired off more muskets and caunons, and laid prostrate in one day more human beings, than there is any previous record of in history. The world has duly rendered its tribute of admiration and fear. But to achieve this honorable prize in the competition of nations has cost a great deal of money. The nation has to pay for war and protection at the same time, and the two accounts being rendered together come rather heavy. Indisputable facts show that the shipping trade of America is being ruined by the high prices that result from the tariff, and is passing into the hands of English rivals. National pride is making the

Americans see truths to which national pride had previously blinded them. The very jealousy of England which had prompted the public patronage of manufactures, is now keenly touched by the consequences of protection, and the great commercial fallacy is being attached in its bead-quarters. The American mind is beginning to get a little loosened in its prejudices on this question, the soundness of the accustomed theory is being doubted, and a great collision and ultimate change of opinion is obviously commencing.

On the continent of Europe war has lately made Prussia the rising Power, and in this now important centre of Europe the free trade theory is pushing its way to prominent recognition. Discussions there, of course, take place according to the genius of the people and the rigor of the administration. "We do not read of mass meetings and of popular harangues. Bat we read of a Congress of German political economists.

Such a congress took place in Hamburgh just prior to the election of the North-German Parliament, and was attended by over three hundred learned men, many of them being University professors or editors of the leading German newspapers. Amongst the topics that came under discussion was the reform of the Zollverein tariff. The Zollverein, though a great benefit to the different German States, has been a great buttress to protection. The tariff’ was conceived in a very jealously protective spirit,

and considerable vested interests have grown up übJer it. But now that the national iceling is partly satisfied by the growth of unity, there is an increasing desire for more freedom both in political institutions and commercial laws. The results of the free trade policy in England have been noted, and notwithstanding the sore feeling against England that has lately prevailed in Germany, the Congress has selected England as its model for commercial legislation. Two of its members, Dr Wolff, from Stettin, the editor of the Oslen Zeitung, and Dr Michaelis, the editor of the Deutsche AUgemeine Zeitung, had at a previous session been appointed to bring up a

report on the question, and they produced the following resolutions us tlx® result of their labors :

1. The problem of a revision of thetariff of Cnstom-lirjiisrj duties in the Zollverein consists in the abolition of the protective system, and the elimination of aUf articles from the tariff except those few I absolutely required tor Dnaueiai rtaaous.

2. Xiltf iyss O'jCc&lOucd to tliO rcTwt.liS at first by a reduction of the duties may with confidence bo expected to be more than replaced eventually by an increase in the production and consumption, and also by reducing the duties and taxes on sugar to moderate financial rates, so as to render the consumption of that article more accessible to the mass of the inhabitants of North Germany. 3. To cover the temporary deficiency iu the revenue, temporary duties on certain articles of consumption are admissible, but with the exclusion of duty on all indispensable necessaries of life. 4. its far as the article of tobacco may be considered as belonging to the lastnamed category, the principle of a moderate tasalion on the consumption may safely be recommended, tut to the exclusion of all violent measures and vexatious control as regards the growers and manufacturers.

Nothing can be more explicit than the tone of these resolutions. They are moderate, and quite unrevolutionary, so far as immediate practial measures are concerned, but they takeafirta and intelligent position, and mark with emphasis the policy towards which it is expedient in the opinion of the Congress that the Parliament should strive. The resolutions were carried with, very slight amendment. One speaker objected to any increase in the duty on tobacco, and objected to the vagueness of such expressions as “ moderate duty,” and “ necessaries of life.” But the amendments were immaterial and did not touch the principle of the resolutions. The new Parliament of North Germany may not respond immediately to the programme put before it, but when these opinions are intelligently and earnestly adopted by editors and professors, aud taught constantly in the Press and from the University chairs, it is quite clear that the general public opinion must soon become indoctrinated with thorn. The only power that could effectively arrest such an influence over public: opinion would be an equally intelligent and earnest preaching of the opposite opinion. No doubt the vested interests will find their utterance, but they will have to speak as vested intereststhat is, as private and not as public interests. They will, doubtless, be treated tenderly, but they have no claim above that of the whole community.

Every new commercial treaty is now an advance in the direction of free trade. Several have been made daring the last half-dozen years, and every one of them has relaxed somewhat the rigid bonds of national hostility and suspicion. They are far enough from a perfect free trade, and indeed the mere fact of there being treaties at ail is of itself a sufficient proof of the incomplete triumph of the free trade principle over the minds of men. But there is no mistaking the drift of European opinion.