The Temuka Leader. THURSDAY, JANUARY 24, 1884.

Temuka Leader, Issue 1130, 24 January 1884, Page 2

The Temuka Leader. THURSDAY, JANUARY 24, 1884.

That prince of inane literary effusions —the Christcburch Press—in its issue of last Monday indulges in its customary drivelling'. In 1880 a lioyal Commission was appointed to inquire into how colonial industries might be fostered and encouraged, Amongst others, the cultivation of tobacco was considered, and it was found that the North Island, at any rate, was admirably adapted fcr it. To encourage its growth and manufacture, the duty of 3s 6d per lb, which is the tax the imported article has to bear, was reduced to 2s but on it becoming apparent that this would not be sufficient, at any rate until the industry was properly set on foot, it was agreed to charge only Is per lb on all tobacco manufactured from a New Zealand grown plant. The result of this is that the tobacco industry has been started in Auckland, and that there is every prospect of its proving exceedingly successful. And it is this prospect of success, which causes the Christcburch Press to shed salt tears, and bemoan the havoc it will work on the revenue. It savs that in 1882 the. quantity of tobacco imported into this colony cost L 107.655, and that the Customs duty on that amounted to L215/775. Prom this it argues that the rerenue would lose L 160,000 a year and the gain would be the creation of a monopoly which would yield LIOO,OOO to the company engaged in the industry. We have seldom come across such utter rubbish, It betrays the pitiable imbecility of its author, as well as a slavish attachment to that miserable superstition—Freetrade. If

the suggestions of the Press were adopted no concession should be given to encourage the development of this industry, and if it could not afford to pay duty as well as the imported article, it should not be started. To give it assistance is to create a monopoly. Now let us look at this from a common-sense point of view. In the first place how could it be called a monopoly when every man in this colony can start tobacco making on the same terms. In our opinion it is a step towards smashing up' the monopoly which foreign countries that supply us with tobacco have hitherto had. These countries were receiving about LIOB,OOO a year of our money, and the Press Would continue to send that sum away for the sake of securing to the treasury L 160,000 a year. Would it not be better to place the taxation on something else—large estates for instance ? Oh, no ! The Press would never think of such a thing. Tax anything, but let the large estates escape scot free, is the political creed of the Press. This is a short-sighted policy. This colony is languishing for want of industries, and unless it starts them the next generation will find it necessary to emigrate to some other countries, for there will be nothing for them to do here. We think that we ought to make greater sacrifices than the shifting of a portion of the revenue from one commodity to another to establish industries. Let us suppose for instance that this concession had not bpen accorded to the tobacco industry and that consequently it could not be started. We should always continue to

send out of the colony £IOB,OOO a year, Let us look us it now from the other point of view. Through the reduction the industry promises to be very successful, and if so is it not reasonable to suppose that before very long we shall be doing a large export trade in that commodity. There is no reason why we should not do so. It has been proved that the climate is adapted for its growth, and if so why could it not be produced here as cheaply as elsewhere. Labor is as cheap here as in America, from which country the bulk of the tobacco we use comes ; the climate is better, and we should also have the advantage cf our contiguity to the Australian markets. There is therefore room to hop* of being able to export it, and if so is it not likely that the revenue would be the gainer by the reduction. At the present time we import about 550 tons of tobacco in the year, and this at 3s 6d yields about L 215.000 to the revenuu. If the industry ever comes to anything it will net be confined to 550 tons a year. It is more likely to grow to 2000 ton 3, and if it does, and the duty of Is alb is retained the 20u0 tons will yield more revenue at Is a lb than the 550 tons could yield at 3s 6d a lb. In that case the revenue would be benefitted, and an important industry established which would not only keep the LIOS,OOO we send annually away, in the colony, but would perhaps bring L500,0C0 more into it, and create a field in which hundreds of people would find employment. To encourage the developemenl of an industry like this is what the Press calls monopoly, but in our opinion to crush industry by means of taxation is to create a monopoly for foreign countries. It is very probable the industry may, when properly started, be able to bear more taxation, but let it start ; give it a fair chance, and if it is found capable of contributing to the revenue more than it does, by all means let it pay it. Tobacco is a luxury and a fit subject for taxation but we must have it. and if we can produce it ourselves, and it is likely to create a labor market, by all means let us give every assistance to develope it. The principle of taxing industry is wrong, and no nation that does that can ever come to auythiag. This the Press would do, but we are glad to say its power in that way is limited. It was not by free trade the industries of America have developed to be the wonder of the world, it was not by tree trade America reduced a most crushing national debt to a mere trifle in a few years. It is by free trade that England is finding herself cut out of the market now, that her national debt is yearly increasing, and that her industries have to bear a yearly burden of about L 30,000,000 to pay interest on her borrowed capital. Now, is this not parodoxical ? The cost of labor is two or three times more in America than England, and yet America can pay freight and sell goods in England cheaper than they can be produced in that country. England will continue to tax industry till she will have none left to pay it, just because a few old fogies, from whom the Press has picked up its ideas, believe in the Preetrade superstition.