THE THREATENED BREAD TAX.

Hawke's Bay Times, Volume 14, Issue 711, 23 August 1869, Page 3

THE THREATENED BREAD TAX.

Although the Oamaru Times is favorable to the threatened Bread Tax, it cannot shut its eyes to certain difficulties in the way of bringing it into operation. It says : " The farmers generally, especially in this district, where so large a breadth of wheat is annually sown, will rejoice with us to see that it is proposed to place an import duty on grain and (lour. This will be an immense boon to them, and indeed to the whole country; and while every man who feels the importance of giving the local producer a fair footing in the market, will be glad to see the wheat-growers of this and other countries placed ou even terms, there will not be less satisfaction at the care which is evident on Mr Vogel's part, that the weal of the bulk of the people shall not be sacrificed for the benefit of one sole class. While, on the one hand, the measure will prevent wheat and flour falling below a certain minimum, it will also not enhance its price when a certain fixed maximum has been reached. In effect, the object of the measure is to prevent wheat falling below a price which will pay the grower, by putting a tax on imported wheat; but not to increase the price of the poor man's loaf beyond a certain point, as the moment wheat reaches a fixed limit per bushel, importation is to be free. We foresee, however, certain possible difficulties arising out of this. Suppose, for instance, that 4s were the maximum indicated (we do not sa) that it is), and the market price in Hokitika were 4s 61, and in Dunedin 3s lid on any particular day, would importation be allowed free of duty at the former port, while dutiable at the latter ? Then, again, how is the value at each port to be ascertained ? Who is to give the market value ? Is an average value to be taken for all the colony, or is the price oi wheat at the paiticular port at which the vessels enter in to decide whether the cargo is dutiable or duty free ? Is there to be an arbitrary Government value for wheat or fluur telegraphed daily to Customs officers, or are the Customs officers to fix it day by day? If wheat co day be 4s, and a cargo is admitted free of duty, but this day week the price rises to 4s Id, —is a cargo then arriving to pay duty ? There seems to us to be considerable difficulty here, and we shall be curious to know how is is intended to work the matter." The Wellington correspondent of the Dunedin Echo, writes thus ou the subject:— ** Mr Vogel took pains to make it appear that Protectionism is not involved in the proposal to impose an import duty on grain and flour, —although what else it is, in fact, all but those who are Protectionists at heart, ivill fail to discover. Even those who are Protectionists, don't like to avow it; and they weave a mist of words as to "temporary encouragement to native industry " —" a real reduction in price to consumers," and so on, which may deceive themselves, but which is real Protectionism, nevertheless. It may be a good thing for agriculturists that there should be a prohibition to the introduction of foreign grain and flour; but, despite any amount of sophistry as to 'steadiuess' of price being secured —and being the greatest possible good to the consumer as well as to the home grower, an import duty, if it is operative at all, must operate in making dearer to the consumer whatever is affected by such a duty. All such fal lacies are really exploded; but Protec tionism appears to come to colonies as measles come to children, and so New Zealand will probably go through th*delusion and the general loss which must result from prohibitive duties on articles of necessity. That Australian colonies impose a duty upon Netf Zea land grain and flour, may be a reason, in the interest of our growers, why a duty should be imposed here; but it is not a reason why the people of New Zealand should desire to see such a duty imposed. Mr Vogel stated that, • by adopting the rates imposed in Victoria, the duty i* likely to yield .£14,000.' Even in the present state of the finances of New Zealaud, such a sum is not worth getting by a departure from sound principles. It is especially not worth having, when it must come out of the pockets of the colony, as it assuredly will, if it is raised. What Mr Vogel asks the House to assent to is * the imposition of a small duty on

grain and flour, to continue only whilst the price of these articles does not ex ceed a ra-tximum to be stated —which maximum will represent the price a) which they can be provided in the colony without loss.' If the colony wants revenue, it is an open question what articles shall be included in the tariff, and at what rates of duty, in order to raise that revenue : but if the colony does not want revenue, its legislators had better not muddle themselves about duties not to be imposed after price has reached a limit, which is to he that at which somebody estimates that an article of food cannot be pro duced without loss in the colony. Such attempts at a regulation of prices seem ridiculous when read in history ; yet one is bound to suppose that, somehow, those who propose them do contrive to conclude that their proposals are made in the interest of the public good, and not for the good of a class. Such delusions are, fortunately, not now common : they never could be classed amongst ' popular delusions.' It is further to be noted, that Mr Vogel was caudid enough to say, that as to * the question of protection or free trade,' the *time will come when it will surely be raised.' It is to be hoped that when the colony does come to be afflicted with the disease of protection, the attack will be short, sharp, and not dangerous. In the true interests of the colony, however, it is to be hoped that the Legislature will check the present premonitory symptom of the disease."