THE FEDERAL TARIFF.

Motueka Star, Volume I, Issue 19, 15 October 1901, Page 4

THE FEDERAL TARIFF.

A BIG BLOW TO OUR PRODUCE TRADE.

The Wellington Post of Friday says : —lt was somewhat difficult to obtain opinions this morning as to the probable effect of the new Federal tariff on the products of this colony, the day being a close holiday, and the representatives of many of the firms affected out of town. v Then, again, the meagre character of the cabled information then available made it difficult for any one to venture a positive opinion. The general view of the new tariff, judging it on the information to hand, seems to be that this colony has been specially singled out for heavy imposts, and that the result will practically to kill the export trade in a number of lines of produce. OPINIONS OF A WHOLESALE TRADER. Mr H. Beauchamp, of the firm of W. M. Bannatyne and Co., unhesitatingly declared that the tariff was a direct aim at New Zealand, especially in relation to such items as butter, cheese, eggs, and timber. All things considered, it appears to him a verv short-sighted policy, for the reason that it seemed almost certain that Australia would have to come to this colony for large quantities of its products from time to time, when adverse climatic conditions prevailed in the Commonwealth States. In Australia itself there would in all probabiliy be an outcry from New South Wales in particular, which might end in the overthrow of Mr Barton, and give an opening for Mr Reid, because the new proposals appeared to be so very extravagant. As regards the effect of the tariff on this colony, Mr Beauchamp points out that there are only one or two of the Australian-States that can produce in any quantity similar goods with the exception of wheat to what we produce in this colony. The climatic conditions are against them. They are bound at certain intervals to come to us for supplies, and the additional tax will therefore fall upon their own shoulders. They have, for instance, no timber that can replace our kauri. White pine they have been wise enough to let alone, but tawa, another soft wood,, they take in large quantities. As for hams and bacon, now proposed to be made subject te an additional impost of 3d per lb, Mr Beauchamp is of opinion that for quality there is no part of Australia that can produce an equal to the New Zealand product. There is a big demand for hams and bacon from this colony in all the Australian markets. Mr Beauchamp gave an instance. A local curer had an order . from one Sydney house to "send all the hams you can produce," and in other respects was so busy that he was unable to undertake contracts from local people anxious q.o arrange for supplies for the Christmas trade. "It means," said Mr Beauchamp, "an immediate check on our trade, whether the tariff passes or not, but I can't believe that it will be confirmed in its present condition." The item 20 per cent, ad valorem duty on mineral water seems to him rather a paltry smack at our Te Aroha and Puriri waters, for the protection of the one mineral water obtained in Queensland.- The effect of the new tariff as a whole, Mr Beauchamp thinks, will be to produce a howl from our farmers, but he does not anticipate that this colony will be affected to the extent that many people will imagine ot first sight, for he points .out that our export trade with Australia excluding specie, only represents 10 per cent, of the whole of our exports; 90 per cent-goes to other places. Undoubtedly Australia acts as a distributing centre for a great

deal of out produce, but the new duty will not affect that trade.' Goods will siispßy be whipped under bond for reexport, to the East and elsewhere. Newt- South Wales is the chief Australian, aonstiiner of our product, and has also been used as a dumping ground for--large quantities of produce consigned for sale. Victoria will benefit by the tariff, as it will encourage her to go head and increase her productions. • - iJ Weighing the question whether, in • view of the new tariff this colony ought t > seek a remedy by federating, Mr .Beauchamp remarked that what we have to consider is whether the ad- i vantage of having the trade with Australia, even up to the extent of 15 per cent, of our total exports, is worth the sacrifice of our political independence. Mr Beauchamp, it may be added, was a member of the New Zealand Federal Commission. The new tariff, affects the produce merchants to a greater extent than the general merchant. Mr F. 33. Farmar, of the firm of Laery and Co., to whom the new duties were quoted, remarked that as far as New Zealand butter, cheese, tea. hops, potatoes and some other items were concerned, the new duties would probably be found absolutely prodibitive. Take hops as an example. Hop-growing in this colony at the present time was languishing for want of a market. We were growing more than we could use, but had found a- ready market'in Australia. The effect of-the new tariff would be to hut up half the hopfields, unless other markets could be found. Then as to fish. We exported a considerable quantity of fresh fish to Australia, and the market was growing. Both Sydney and Melbourne consumed a good deal, and would take more if it were available and the price within their means. The fishing industry in this colony was only just being developed, and Australia was going to be the market. The extra duty -would affect that ti-ade. As to meat, Queensland could produce sufficient to compete against outsiders. The duty on potatoes would probably stimulate Tasmania. to put greater areas into crop, ana endeavor to supply Australian markets that heretofore dre w their supplies from New Zealand. New South Wales would feel acutely the new duty in this respect, having been a free port, as if she absorbed further supplies from this colony it would mean that she would have to pay the difference between present prices and the extra duty. The piobable effect in this colony would be that the farmer would suffer, and less potatoes would be grown than heretofore. The farmer, as a matter of fact, would be the sufferer allround, as the Australian markets to a very large extent controlled the price of produce in the local markets. There was nothing in particular as to which we could retaliate, fruit, bark for tanning purposes, Newcastle coal, and a few other minor products. AN OPTIMISTIC VIEW. Mr. Nicholas Reid, of W. and G. Turnbull and Co., was also of opinion , that the new.tariff would kill trade in Mams and some other foodstuffs, but he H|id not think that it would affect this HRdony very materially in the long run. It had long been recognised that the time was coming when Victoria, in particular, would be able to compete suecessfullyw th New Zealand in her own particular line, and thenewtariffwovdd help that on. Increased protedtive duties had been anticipated, but they were heavie r than it was supposed would be imposed.