The Hokitika Guradian THURSDAY, AUGUST 3rd, 1922. REDUCING TARIFF BARRIERS.

Hokitika Guardian, 3 August 1922, Page 2

The Hokitika Guradian THURSDAY, AUGUST 3rd, 1922. REDUCING TARIFF BARRIERS.

A vhry practical step in-general progress has Iteoii by the proposed treaty of reciprocity l>etwoen Australia and New Zealand. It was a very stupid procedure that two countries so closely allied by liotli blood and trade interests, should be rearing up tariff walls between themselves for no i practical good. Customs tariffs are priI miarily revenue producing machines, I but between Australia and New Zealand they were a distinct barrier operating to the detriment of each country. There was a loss of prestige, too, by such methods of procedure, which did not count for good statesmanship. The late Mr Seddon in 1906 laid the basis of a reciprocal treaty, but his untimely death lost a golden opportunity to both countries in the matter of adjusting customs differences. It is a reflection on the, statesmanship of both the Commonwealth and the Dominion that tlu- matter has remained so long in abeyance i since Mr Seddon had the draft condij tions for mutual reciprocity prepared. I No doubt war conditions and the afteri math has directed attention more and ' more to the fallacy of customs barriers : between countries. In Europe th re is I u striking bad example of the eondi--1 tion of affairs. Financial authorities I are taking the matter up spiritedly just | now. Even American financiers are realising what the upward race in tariff is meaning to European States already sadly embroiled, financially. An American financial journal reviewing the p isition points out that there is a degree of justice in economic law. The political economist knows that there is little chance of there being a return of prosperity to this wnr-brulsed earth of our* as long ns we continue ps nations to regard each other narrowly, meanly, ploiouMy. a«. commercial rivals instead >

1 of broadly, generously, openly ns neighurn and friends exchanging c miiuuclitics for epch other’s good. There was n time when trnde could not mo e ; long the rends from one locality to another without numerous, octroi duties being payable. One smiles to-day at anything so archaic, hut in view id the tendency in many lands to mj crease tariffs one may wonder whet* or 1 we have advanced much along the road 'of economic enlightenment. It were well if we would' give heed to those economists whose voices are raised from time to time in protest against the insane comnetitinn in tariffs. Professor

uustnv Cns«el, the great Scandinavian economist, who has done much to recall us to the fundamentals of political economy. wrote just before the Assembling „| the Genoa Conference the following profound statement, ns quoted in the Economic Review of the 3lst. of March from a Norwegian paper: “A great common interest for the world is the restoration of international free trade. The policy of mistrust and domination which has prevailed in Europe since the armistice, has brought with it a sundering add a stagnation which take us hack to the worst days of mercantilism and have brought to nought much of the positive progress made in the previous century. The most hardened protectionist could hardly deny t hat the world would be vastly letter off if communications between different countries were Freer. Protectionism in any one country is always supported by the argument that other countries pursue a protectionist policy. Rut the only possible outlook for a world conference like that shortly to assemble is a world-outlook aiming at the common benefit of all. the ueutials nave a particularly strong interest in working against the recent unreasonable raising of tariffs, and, above all, against the monstrous i abuse of leaving the rate of tariffs to he arbitrarily settled by administrative authorities.”