FISCAL REFORM.

Taranaki Daily News, Volume XXXXV, Issue 209, 19 September 1903, Page 2

FISCAL REFORM.

SPLIT IN BRITISH CABINET. MR, CHAMBERLAIN AND TWO OTHER MINISTERS RESIGN. UNIONIST PAR?Y PARALYSED. UNSCRUPULOUS USB OP "DEAR LOAF" CRY BY LIBERALS. PREFERENCE TO COLONIES UNACCEPTABLE.

PEE PRESS ASSOCIATION. Received 18, 9.58 p.m. London, September 18. Official.—The KiDg has accepted the resignations of Mr Chamberlain, Colonial Secretary, Mr Ritchie, Ohancellot of the Exchequer, and Lord George Hamilton, Secretary for India. Received 18, 10 58 p.m. London, September 18. Mr Chamberlain, in a letter to Mr Balfour on the 9th inst,, in anticipation of Monday's Cabinet meeting, said " I have most carefully considered the situation as it affects the Government, and the great question of fiscal reform When you, in replying to a deputation with reference to the corn tax, and I, at Birmingham, called attention to changes in the commercial position during the last half century, and suggested an enquiry into the I do not think either of us intended to provoke a purely party controversy. We raised, not for the first time, a | question of the greatest National and Imperial importance in the hope that ;it would be impartially discussed by friends and opponents, and an enquiry initiated which would lead to con-j elusions that would he accepted by the i raijority of the people and represented accordingly by results at the next general elections. Whether that view was reasonable or not, it certainly is not shared by the Liberal leaders, who scouted the idea that the system generally accepted in 1846 could possibly require any modification in 1903, their whole party organisation being directed against the attempt to alter, or even to enquire into the foundation of tbe fiscal policy. Advocates of reconsideration, meanwhile, have ta grant them the advantage. Owing to admitted differences of opinion, the Unionist party's organisations being paralysed, and our opponents in full possession of the field, they placed in the forefront of their arguments their objections tbe taxation cf food and even to any readjustment of the existing taxation towards the mutual advantage of ourselves and the colonies, and the Empire's closer union. The unscrupulous use made of the old cry of 11 a dear loaf," ani in the absence of full publio discussion, sari >us pre judice has been created. The pople are generally alive to tbe danger of unrestricted competition on the part of foreigners who close their matkets Bgaihst usf while they find in ours an ou lot for their surplus production. Still they do not appreciate the imp'irtaSnce of the colonial markets to our tr»d.', nor the danger of losing them, Unless we meet in some way their natural patriotio desire for preference, the result, for the present at anyrate, is that preference to the colonies, involving any new duty, however small, on articles of food, eviin if accompanied by a reduc ion of taxation on othi-r articles of fo >d of > quaUy universal consumption is not Hccopiablu to the majority of conßtituanciea. However regrettable or mistaken this decision might be, no Government of a democratic country can ignore it."

seems paradoxical that you leave the Cabinet at the moment when other* are leaving on account of disagreeing on this very point, yet I reluctantly admit there is some force in the arguments based on your special personal relations to preference. You have done more than any man living or dead to bring home to the citizens of the Empire the consciousness *>f Imperial obligations and the inter-dependence of the fragments whereinto the Empire is divided. I beieve you are right in holding that inter-dependenoe should be expressed by commercial, equally with political and military relational | And I believe with you that closer fiscal union between the Motherland and the colonies will be good for both, and, based on fitting terms, the advantages will increase as the colonies grow in wealth and population. If ever there were any difiereneet between us tiny mtrely related to the practicability of the proposal requiring a colonial limitation in an all-round development of protection, and tbe Motherland's part in the establishment of preference to important colonial products. I say notbiog about the limitation, but with regard to a preference involving taxation, however light, upon foodstuffs, I am oonvinced with you that publio opinion is not yet ripe. Reasons are discoverable in the put battles and in the recent political misrepresentations.

I am deeply concerned at your in* ability, UDder these very speoial circumstanceg, to remain a Minister. I do not venture to raise an objection, and, if you think you cm beat serve the interests of Imperial unity by freely pressing your views as to preference in an independent position, I will not criticise your determination. The low to the Government will be great indead, but the gain to the eauw yon bave at heart miy be greater still If so, what can I do but acquiesce!

PttESS COMMENTS. BIGGEST FIGHT OF THE AGE THE IIOST ORIGINAL RBBKMUTIO* ON HKOORD. j— Beoelw) 19,0 SB a.m. LONDON, September 18V Tho newspapers prediot that the resignation", espsoially Mr ChamberlaioV, will startle London and the pro* vinces, although the Birmiogbamites for sometime bave been convinced he would doff his coat for the biggest fight of this generation. The Morning Post says it is the most original resignation in historical memory. Mr Chamberlain and Mr Balfour remain the best of friend?, and there is not even a political or party breach. The resignation will win the hearts of the bes; of his countrymen and admirers, as the act of a statesmen who m*de a daring risk to himself, and his prospects, on his convictions.

CABINET BEOONSTRUOTION MOT DIFFICULT. Reoelved 11,1 a.m. ' London, September 18. Mr Austen Oh&mbeilaia does not resign. The Times says that while Mr Balfour is backed by the Duke of Deronnhire and the rest of the Ministry, czthe Oobdepite eeeedeia, and bad Mr OhftmbrnkiuV I yal and indepsndent support, the r. opatruction oi the Cabinet will not idvoivb s tious diffi* culty; adding that tb- o >rre-pondenoe reflects the highest credit on both, and that Mr Chamberiaiu's retirement may, paradoxically, strengthen the Government's policy and position in some respects. The Daily Chronicle s\ys that Mr Chamberlain, in proposing the particular line the Oabiuet has actually adopted, Ins won a conepiouou* victory in me Cabinet*, though suffering a startling reverse in the country; but the Cabinet has not r. jected, merely p-6'pocel the preference proposals The Standard, while not anticipating the adoption by the country of Mr Ohambeiliin's proposals, confesses bis inevitable retirement is an administrative misfortune, and declares that his ungrudging admission regarding the constituencies is creditable to his sense of honour and political discernment, chough he does not believe the drift of public opinion is permanent.

CLOSER UNION POSSIBLE TO-DAY. MAY BE IMPOSSIBLE TO-MORROW. MR OHAHBERL&TN'S LOYALTS TO •fHK COLONIES. HE RESIGNS TO PROMOTE THE CAUSE. Received 19, 0.4 a.m. London, September 18. Mr Oliamberhin continued : —Therefore I feel as the immediate practical policy of preference cannot be pressed hopefully at present, although there ii> a very strong feeling in favour of the other branch of policy—that cf giving fuller discretion to the Government to negotiate with foreigners for freer exchange, and enabling them to retaliaw in the absence of concessions of jus claims to greater reciprocity —and as I believe you thare with mo these view* it seems to me you will be absolutely justified in adopting thetn as the policy of your Government, although they involve some changpsin its ion.

As Secretary of State for the Colonies I have been in an especial sense the representative of the policy of closer union. I believe it possible) to day, but it may be impossible tomorrow to make arrangements for eucli a ur.ion, I have had unexampled opportunities of watching the trend of even's, and appreciating the fteling of •our kinsman beyond the seas. I stind in a different position to my cilleaguts, and I would be fully blamable if I re miined in office and accepted the exclusion of so important a part in my programme.

A COUNTER MANIFESTO. FURTHER PRESS COMMENTS. For Press Association. London, September 17. Tbe Free Trade Union, in reply to Mr Balfour's manifesto, has issued a statement declaring that it will be time to consider the proposals dead when Mr Ohamberlain has withdrawn them. If retaliation becomes the accepted policy of the Government Free TtaHers will iu no wise slacken their resistance. The Times agrees with Mr B .If iur •in emphasizing tbe contention that coal und machinery, two main nrUciee of export, are used in fostering foreign protected manufacturers' competition ugaitist oursnlves. Th.i Financial .Yews says Mr Balfour ,«8 to Tbt, heart of tbe question in hi* i tjteivnce to the permauuuey of proteo',lo:l I-.buiad, lit;d Ullll-rK Wc' pmtact our-oslvi-h w« los i the cliuce o f producing economically: otiier.ivi~e wh»t is the me ciing uf his hint.oi message, whicb iloia nut Huppo:v. the supp:«iti:>n that Mr Balfour is hostile to incidental protection accruing from an Imp.r'al pri'ftror' iil tariff. Tne Financial Times declares that Mr Balti<ur'n pmi >■ - ill bu eudutrei >y tho bulk ot t) uioi.is'a.

I think that with abrolu'e loyalty to the Government and its general policy, and with no fear of embarrassirg it, I cm best promote the cause outsid-'. I cannot but hope that in an independent position my arguments will mni't with less privjudice than as coming fiom >i pirfcy leider. Accordingly I snggi sr that, you limit theG 'venmi'jnt'H p: < s«nl policy to !h> a'-s'stion of our freedom in connection witli all commercial relations with foreigners, and agree to my resigning, I will devote myself to explaining (\nd populatising Imperial -union. Kx perience has cinvitee! me it is essential to our future *elfa. u and prosper ity."

MR BALFOUR'S REPLY. THE BESEFJT OF CLOSER FISOAL UNION, TAX Olf FOCnSTU 'Ffl NOT YET ACOEVI'ABLK. ACQUIESCENCE IN RESIGNATION LOSS TO GOVERNMENT-GAIN TO CAUSE. Received 19 0 "0 a.m. London, September 18. Mr Balfcur replied an the 16th ns follows " J ann't-ft wit.!-, yoti th ;t tho -into Inn coiii" lor it l in ♦ he Hmm.l wiioioy wo Ijom.d u.ilti'i'.VLD in f our dealing 10 other Governments, It

Canadian FEELING. AN AUSTRIAN VIEW. London, September 17. Thn fust edition of Mr Balfcur'# p-r.mphM '>a« sold in two houra, A larger edition is being printed.

Canadian feeling resents the absence of reference ta preference. It sounders that Mr Balfour subordinates the Empire for locil party purposes. The St. James Gazette announces that if his full programme for Imperial union is not adopted Mr Chamberlain will resign. The Standard's Vienna correspondent states that exporters admit that tlra adoption of Mr Chamberlain's' policy would rum Austria's trade with I the Australians. The Times implies that some Minis•terial resignation have been tendered, though not announced. Other papers point to Mr Bitchie, the Duke of Devonshire, Lord George Hamilton, and Lord Balfour of Burleigh.