The Nelson Evening Mail. THURSDAY, MARCH 19, 1868.

Nelson Evening Mail, Volume III, Issue 66, 19 March 1868, Page 2

The Nelson Evening Mail. THURSDAY, MARCH 19, 1868.

The doctrine that the industry of a country ought at least during its infancy to be fostered by the State i9, it would seem, to receive practical illustration iu the province of Otago, where, as stated in our issue of Friday last, the Govern-, meut, being anxious to promote the introduction into that province of woollen manufactures, either by guaranteeing for a fixed period interest on the capital which may be invested in buildings ana machiuery, or by suitable bonus otherwise, has announced its readiness to receive overtures from any individuals desirous of embarking in such an undertaking. This doctrine is one "of the most insidious forms of Protectionism. It assails the reason by the aid of a false analogy. It cheats the sympathies with its metaphors. It seeks to support itself by the honored names of somo of the most eminent political economists. The concessions, uu for lunate as we regard them, , are, wheu they are examined, of little use to the cause of Protection ; but an adroit adversary, or au unreflecting philanthropist, is oniy too ready to seize upon the fact of the admission, and to keep out of sight the limitations which accompany it. It is said that when in a young country it seems desirable to naturalize some foreign branch of industry, if this new industry be perfectly suitable to the circumstances of the country, and if there be good ground of assurance that this industry will, a ter a time, be able to dispense with any external support, and if it be clearly understood that support will not be continued beyond the time necessary for a fair trial of what those who pursue this novel industry are capable of accomplishing, the State may fitly interpose to secure its establishment. Such are the- conditions under which lhe Provincial Government of Otago proposes to support the introduction of woollen manufactures into that province. It is further said by the apostles of tbis theory that a protecting duty continued for a reasonable time will sometimes be the least inconvenient mode iu which tho nation can tax itself for the support of such an experiment. Even if we were to accept the former of these propositions, we might fairly object to the latter, and if a similar proposition were made by the Government of this province, and we had to pay for the naturalisation of new industries, we should at least desire to understand what we were doing. We would fairly place upon the Estimates every year a specific sum for the purpose, and acknowledge that for the time we were producing at a loss, and were merely engaged in ah industrial experiment. This course is, at all events, straightforward and intellible, and thera is not much danger that the loss that would thus be incurred would ever be very considerable. But we would not tamper with prices, and under the appearance of promoting industry without auy public expense, create a , mischievous vested interest, hostile to the spontaneous growth of industry, laying upon the consumers a burden grievous to \ be borne, aud establishing an interest of which it ia most difficult to get rid.

Apart, however, from the mode in which such assistance should be rendered, the action of the State in su'-h circumstances, if it he not absolutely hurtful, is at best superfluous. Industry is always able to take care of itself. Men do not require the assistance of the Superintendent and his Executive to find out suitable means of employing their labor and their capital. A philanthropist may consider the introduction of a particular branch of industry as highly expedient; but if it be not spontaneously established, ifc does not follow that the labor aud capital which, if that branch of industry had been introduced, would have been employed on it, will remain idle. Our philanthropists may rest assured that they are engaged in some occupation, for which there exists a more urgent public want than for his proposed project, and which is therefore better paid. He waa, in facl, mistaken as to the relative importancs of his favorite branch of industry. Like all other industries, it was very good iu itself, but in our circumstances it was less good than its rival. We need not go far to look for examples of this great principle of the natural growth and succession of industry. We see its operation on every new goldfield. Since the miners must eat, they are compelled to offer such prices for food that men find it more profitable to keep a store than to dig. As the storekeepers must get supplies, they will give large I sums for carriage from the nearest town, and they soon fiud a sufficiency of carriers. Thus, horses and drays, and wheelwrights and harncssmakers, come into request. Blacksmiths are wanted to sharpen tools, and surgeons to treat accidental injuries ; they are paid in proportion to the need for them, and the high rate of remuneration brings them in proportionate numbers. It is the same with every other kind of service. The Government would attempt to disturb this industrial development. The most ardent reformer who was satisfied that the art of shoemaking might be pursued with great advantage on some goidfielu would be content to yield to the miners* preference for blacksmiths ; and, although he might regret the choice, would not seek to iutroduce painters at the cost of a diminished supply of medical practitioners. But there is another objection to the interference of the State with industry, even in the modified form which we are now considering. Its advocates insist, as we see illustrated iu the proposal of the Otago Government, that the protection shall be continued ouly for a definite aud probably moderate time, and should be then withdrawn. But it is much easier to commeuce a system of interference than to terminate- it. In the natural growth of industry the same principle which prevents the growth of any superfluous or permature occupation secures the proper duration of those which last, and provides for their speedy . and complete removal when their utility is gone. New enterprises are daily springing into existence ; if they supply a public want, they succeed, and are enlarged; if they do not supply such a want, they fail ; and, after their affairs are fiually wound up, nothing more is heard of them. But monopolies and the other creatures of perverse legislation do not pass away so easily. Abuses always die hard. If, therefore, auy such hiterest is called into existence, we must be prepared to find that the protected classes will by no means readily acquiesce in the relinquishment of such apolitical experiment. We have in the example of England herself a memorable warning. Heavy, indeed, was the penalty \yhich the mother country paid for its long struggle against a sound commercial policy, and almost inextricable was the network of hindrances whieh a false system and itß consequences

had woven around ifc. The Government of Otago might, we thiuk, take timely warniug against imitating the former errors ofthe mother couutry, aud has the best encouragement to the adoption of her recent aud better example before it bebecomes entangled iu the creation' of artificial interests.