FREE TRADE AND PROSPERITY.

Hawke's Bay Times, Issue 1530, 2 December 1873, Page 37

FREE TRADE AND PROSPERITY.

The Melbourne Argus compares the progress of New South Wales, under a liberal tariff, with the unsatisfactory state of things induced in Victoria by the system of protective duties : We may cordially congratulate our neighbors in New South Wales on the highly prosperous condition of affairs in that colony, of which the Treasurer's financial statement is such a convincing and gratifying proof. With a revenue of three millions and a quarter sterling, a bank balance of ,£1,688,542, and an anticipated surplus of .£655.280, the Government of New South Wales may be excused for taking sanguine views of the future progress of the country. We must do our fellow-countrymen in Sydney the justice to say, that they appear determined to adopt the soundest and most sagacious policy for giving a character of permanence to the career of prosperity upon which they have embarked. Mr Parkes and his colleagues, wiser in their generation than our own politicians, continue steadfast, in their adherence to the principles of free trade, and propose to revise the tariff in that direction. We need scarcely add this is not and never was protectionist. It was framed for revenue purposes only. About 160 articles were subjected to fixed duties, and thirty-two of these are now to be repealed. On all goods not liable to the foregoing impost, an ad valorem, duty of 5 per cent, was levied, but the free list included 127 articles. It is now proposed that the whole of these ad valorem duties shall be swept away on the Ist of January next. But, with the exception of an increase of sixpence per pound on all kiud3 of tobacco, no alteration appears to be contemplated in the rate of any of the fixed duties intended to be continued. Notwithstanding the repeal of so mauy Customs duties, it is anticipated that the new tariff will yield J 87,000 more in 1874, than it will have done in the year now drawing to a close. Such an expectation is quite in accordance with the experience of the mother country. In the year 1841, no less than 1,163 articles were chargeable with import duties in the United Kingdom, and the Customs revenue amounted to .£21,898,845. In 1862, the British tariff had been simplified to such an extent that only forty-four items appeared upon the list, and these yielded £54,036,000 to the national exchequer. With the abolition of each import duty there was necessarily the removal of a barrier to commercial intercourse, as well as an increased consumption by the people of dutiable articles, owing to the diminished cost of all others. This was remarkably illuustrated by the imports of tea, which rose from 40,742,128 fts in 1841 to 96,577,382f0s in 1861. It may be safely asserted that —other things being equal—the manufacturing and commercial supremacy in these colonies will rest with that member of the group which makes the nearest approach to the establishment of a free port; and this is what is very clearly discerned by Mr Parkes and his colleagues. They are quite prepared to profit not only by the natural advantages which are enjoyed by the colony of New South Wales, but also by the deplorable follies of our own fiscal legislation. If our neighbors should eventually outstrip us in the race, and regain that premier position which they are so ambitious to wrest from us, our relegation to a secondary rank will be mainly the work of our own hands. The indus tries of this colony are hobbled by the operation of a tariff which is a scandal to our intelligence and a serious impediment to our progress. We have only to compare it with that which will in all likelihood be adopted by the Legislature of New South Wales, in order to perceive and acknowledge the sagacity exhibited by the Treasurer of the latter colony in framiug his financial scheme. He has the ball at his feet, and our folly is his opportunity.