THE QUESTION OF PREFERENCE.

Te Aroha News, Volume XXVI, Issue 43092, 14 May 1907, Page 4

THE QUESTION OF PREFERENCE.

In connection with the question of preference, regarding which many opinions exist, it has been pointed o'ut that theoretically the effect of imposing a, tax on foreign goods competing with colonial goods would be to permit colonial goods to be .sold at the less price and so to capture- the market. Practically the effect of granting Customs preference to the colonies would be rather different-.

[The articles imported into the Motherj land from the colonies are in the main foodstuffs and raw material for clothing. In 1905 the United: Kingdom imported foodstuffs valued at £172,913,000 from foreign countries a-nd £59,205,000 -from British possessions, so that about one-fourth would, under a preference system, be- admitted free and three-fourths would be taxed. It stands to reason that the price to consumers would be determined by the 'taxed - three-fourths and not by the untaxed fourth, so that the effect

of taxing foreign imports would undoubtedlv be to raiV the m-ic-e to the British consumer. In wool the bulk of the imports are from British possessions, but here again to he of any real benefit t-o- the colonies the preferential treatment would Wave to raise prices generally. Considering that- there are a million paupers in England and Wales in receipt of relief and ten million neoole living on ■the verge of starvation, the colonies cannot seek to profit, b- nnv scheme that would raise the cost of food. This is the crux o-f the matter. There

might he some prospect- of reaching an enrlv commercial understanding Mvit-h the Mother Country if the co- 1 - I onial representatives <bd not insist- so strongly on a Customs preference. Few Zealand ami r *‘--,-1 have granted the Motherland preferential treatment- without seeking any special concession in return, but- Air Den-kin, who appears to he sulking, wants more than this. But, if it- is necessary to strike a- bargain, the- Mother Country

could greatly encourage colonial trade -by a system of shipping subsidies as suggested by our Premier. Sir

Joseph Ward. If the Australasian colonies could send their produce to Europe at little more than nominal rates the need for tariff preference would disc "near. The Mother Country could secure us these cheap freights without adding a fraction to- the cost

of food, without disturbing her settled fiscal system and without- even consulting the electorates, and the results would be even more beneficial in the wav of encouraging British trade and British shinning than Customs preference would be.