The Daily News. WEDNESDAY, JULY 2, 1919. IMPERIAL PREFERENCE.

Taranaki Daily News, 2 July 1919, Page 4

The Daily News. WEDNESDAY, JULY 2, 1919. IMPERIAL PREFERENCE.

It was in 1903 that the late Mr. Joseph Chamberlain started in Britain that movement for tariff reform which was destined to bear good fruit far sooner than its author could have ever conceived would be possible owing to the firmly rooted principle of free trade having become a mighty pillar of the State. Had it not been for the War and the consequent welding of a closer bond of unity between the Motherland and the Dominions, as well as the need for making the Empire as far as possible self-contained, it is probable that many years would have elapsed before the ramparts of British free trade were laid low. But the war came and altered, many things, not the least important being the fiscal policy of Britain. It o was peculiarly appropriate, therefore, that on Mr Joseph Chamberlain's sois (Austen) should devolve the duty of introducing into the House of Commons in May last a Budget that will stand out as epoch-making in the; history of British finance, by reason of its re-introduction of the principle of Imperial preference on consumable commodities, such as tea, cocoa, coffee, dried fruits, sugar, and tobacco by a one-sixth reduction of existing duties; one penny per .gallon off motor spirit; sixpence and one shilling per gallon off wines, according to quality ; a surcharge of :two shillings fcnd sixpence a gallon on foreign spirits, which wUlnbt be paid by Dominion spirit^;'and a third off the duty on motor-cars, motorcycles, kinema films, clocks, watches and musical instruments. These proposals were limited to the carrying into effect the decisions of the War Conference of ;1917, The total loss to Britain by this instalment of preference was estimated at two and a half millions sterling, and though this is but an insignificant sum when compared with the revenue of £1,201,100,000, it represents a new principle and the opening of an era that presents endless possibilities.' .It is worthy of note that, in his Budget speech, Mr Austen Chamberlain said he regarded Imi perial preference as the important I feature of the Budget,, aad was tc J?« applied by refoqiaj; the vxinfr

ing duties on manufactured articles to consumable commodities from the overseas Dominions, rather than by a surcharge on similar imports from foreign countries. It is, however,"" obvious that he regarded the initial proposals as being the introduction of the wedge, for he said: "Prom the small beginnings of to-day, I hope that many members of the Houße will live to see raised a really wide structure of inter-Imperial trade," and he expressed his gratitude that it had fallen to his lot to make the first proposal in the House of Commons for the statutory embodiment in the British financial system of that policy of. Imperial preference with which his father's name would ever be associated. Although the preference proposal will not to any extent affect New Zealand, none the less will they be welcomed as being framed with the object of cementing that Imperial partnership which is destined to become a source of strength to the Empire, and an outward and visible sign of that community of interest on which the future of the Empire must rest. It is extremely probable that the time will come when the Motherland has recovered from the severe war strain and normal conditions once more prevail, that the system of merely reducing existing duties on articles from the Dominions will be supplemented by surcharges on all imports from foreign' countries in connection with similar goods produced within the Empire. In view of the fact that Britain's national debt has risen to £7,669,;000,000 and that all the Dominions have suffered heavily in the same direction, it is urgently necessary that Britain should materially alter her fiscal policy by means of import duties on foreign goods, and that she should protect all the productions of the Dominion that find their way to her markets and thus keep as much money as possible in the Empire. The Dominions have made enormous sacrifices, and though they regard these sacrifices from the lofty standpoint of duty, yet they are entitled to expect that the produce and manufactures they export to the Motherland shall be given preference over those coming from foreign nations—allies and neutrals alike—if only on the ground that the ties of blood and loyalty justify such expectation. The Imperial "War Cabinet and the Imperial War Conference recognised the justice of Imperial preference and Mr Austen Chamberlain has reduced an abstract resolution to a concrete proposal. The ball has been started, and, in conjunction with the advent, of peace, a new era has dawned for the people of the Empire wherein the bond of union can be strengthened year by year in such a way as to ensure the fruits of victory and the building up of mutual prosperity on a sound, durable and businesslike basis.