The Temuka Leader TUESDAY, MAY 19, 1885.

Temuka Leader, Issue 1342, 19 May 1885, Page 2

The Temuka Leader TUESDAY, MAY 19, 1885.

FREE TRADE V. PROTECTION. The Christchurch Press —one of the most ably and best conducted papers in New Zealand at trie present time—suffers from the Free Trade hallucination to an extent that is quite lamentable. Ihis World infatuation has gained fcuch a hold on the guiding mind of that journal that it looks very much as if it had reached the monomaniac stage. Wilkins Micawber never waited more anxiously for something to turn up than does the Press for an opportunity to say something concerning its pet subject. The latest example of the benefits of Free Trade noticed by the Press is a speech delivered by the Minister of Justice in South Australia. This gentleman used the stereotyped argument that Protection means taxing the whole of the colony for the benefit of a few, and the Press lauds him up to the skies for the intelligence he brought to bear on the subject—forgetful of the fact that ever since thequestion was first discussed the same argument has been used. Now, a few facts on this subject will, we believe, go further to enlighten people than all the stupid generalities the Press has indulged in. South Australia has seen the benefits Victoria has derived from Protection, and an agitation has been got up in that colony to protect domestic manufactures from competition with foreign importations. The Ministry of the day have opposed the new movement, and, so far, they have been successful ; but that does not prove that Protection is either right or wrong. When the proposal was first made to impose protective duties on Victorian importe, a strong opposition was organised against it, and it was not without a struggle that effect was given to it. The success of the South Australian Ministry in resisting the Protectionists is, as an argument in favor of Free Trade, on a par with the one that Protection means taxing all for the benefit of a few, excepting that the former is ten times more feeble than tbe latter. As regards the policy of Free Trade, the wisest men in Europe admit it to be sheer nonsense. Prince Bismarck tried it, but he found it necessary to revert back to Protection ; the Austrians also have recently adopted a Protective policy, and so, in fact, has almost every country in Europe. The old infatuation seems to have a firmer hold on the English mind than it has anywhere else, with tho result that England is suffering from chronic depression, from which it cannot free itself so long as it adheres to its present policy. In a recent issue of the English Live Stock Journal there appeared an article dealing with the question of trade with America. From the statistics published in this article we gather that while England sends only about £32,000,000 worth of goods to America each year, America sends to England on an average £75,000,000 worth of goods, and that the trade is increasing rapidly. For instance, in 1&71 the value of American imports into England was £63,000,000, and during ten years it increased at the rate of nearly £4,000000 a year, till in 1831 it reached £100,000,000. From this it will bo seen that America has tho best of England by between £40,000,000 and £50,000,000 each year. It is no wonder that English trade is languishing, it is no wonder that some of the population are starving ; it is no wonder that the power and the glory of England are on the decline, whe,n such a nonsensical policy as this is adhered to. In 1866 the public debt of America was £555,785,175. Considering the paralysed state of the country after the civil war, this wa6 thought so enormous that when America tried to raise a loan of 5,900,000 dollars she was not able to do so ; yet almost every penny of that debt has now been wiped off. In 1882 a sum of £26,000,000 was paid off, while there was still a surplus of £27,000,000, and internal taxation was abolished except the impost on spirits and tobacco. In 1866 the public debt of England was £805,962,511, and we believe that it is higher to-day than it was then. At any rale it takes about £30,000,000 a year to pay the interest on the National Debt of England. Now, here is where the question for reflection cornea in. When America was groaning beneath an almost unbearable burden of taxation to pay enormous interest on ber national debt, she was able to compete with England in the English market and sell to England over #70,000,000 worth of goods annually. If America has been able to do this when her inindustries were taxed to a crushing extent what more reasonable conclusion can ba arrived at than that now, when all her debt is paid off and her industries are relieved of taxation, she can undersell England to an extent that will reeult in shutting up English factories completely. Now, if America adopted the policy of Freetrade, is it possible that she would he free from debt and sending £100,000,000 worth of goodß to England annually? And again, when all Europe has resorted back to protection, and England still persists[in adhering to Free Trade, what can any one think but that the day must come when her industries must perish? The industries of England have to pay enormous taxes —it is on them the burden of taxation falls. How is it possible then that they can pay s this, and also from 20 to 30 per

cent. Customs dues to a foreign country in order to be allowed to enter its ports? For instance, Amorican manufactures pay little or no taxation,! and they ore allowed into England free of cost : English goods mupt pay taxes to the English Government, aud also to the American Government in the shape of Customs dues before they can be placed in the Amurican market. They cannot do it, and they must eventually perish. Now, this Free Trade policy is adhered to in England for the ostensible purpoie of giving the .English people cheap goods. This is a laudable desire, no long as it is not carried to the extent of destroying the people's means ot getting money to buy the cheap goods with. If it is carried to that stage, then it becomes mischievous and destructive of national prosperity or greatness, The first consideration Bhoold he: What ought to be thejprice of the goods ? This it seems never enters into the calcula tion of Statesmen when discussing the subject. The natural price of goods in any country is the coit of their production. For instance, if it costs 3s in England to produce a yard of cloth therefore 3s is its natural price. To allow foreign importations to bring the price lower lhan that is to ruin the cloth-making trade, and by thus ruining it leprive ! thousands of their means of earning a ! livelihood. The policy that enables foreigners to sell at less than the cost of production certainly secures to the people cheaper goods at the cost of ruining the country. The question of taxation should always be considered as second to that of fostering domestic industry, and that cannot bo done except by taking care that foreign goods cannot be sold in the country at less than it would cost the Home manufacturer to produce them. As regards this question so far as it applies to ourselves in this colony : we are protected in a mild sort of way, but not sufficiently. Farmers ought to look about them now, and see what is going on. The price of wheat in this colony is 2s 6d ; the price of wheat in Melbourne is 3s 8d to 4s. Now, Why should there ba such a difference between the two places ? Why should Melbourne people be able to give for wheat almost as much as is given in London for it. Ths cause is this. Victoria is a protected coantry, and consequently its industries have rapidly developed ; and with their development the population has increased to an extent that it consumes most of the home-grown wheat. The result is that Victorian farmers have a local market for their products, and they are able to get a higher price for them. For instance, farmers know very well that Bruce's Mill has been giving the best price for wheat for the last couple of years, and that only for it the price would have been even lower than it is. Let us suppose that there were three or four such institutions as Bruce's Mill competing with each other, would not the price be higher still ? Most undoubtedly it would; but we cannot have them until our population increases, and that can best be increased by developing the natural resources of the colony. The question, therefore, for us to consider is, Are foreign goods sold in this colony at less than it would cost us to produce them ? If so, their price is unnatural and destructive of national prosperity, and matters ought to be altered by placing on them such duties as would enable the goods produced locally to compete with thm on even terms.

CHARITABLE AID.

The Rev. Mr Hamilton has received from the Government a letter which states that if a Charitable Aid Society is established in Temuka, the Government will give towards its funds £1 for each £1 it can collect. It appears to ua that this ou jht to offer a sufficient indacement to form the society at once. It is, we believe, generally admitted that thera are people in our midst who are absolutely in want of the necessaries of life ; that there ia a good deal of distress at present, and that the look-out for the winter is anything but hopeful of better thinga. It is therefore our duty to assiat the unfortunate, and this cannot be done mora efficaciously than by establishing a Chiritable Aid Society. It is to be regretted that a necessity for it should exist —it is due to Governmental mismanagement that tt does exist—but when the cry for help comes from the sick and poor our duty is to assist without any regard as to the cause of the distress. The question has already been introduced to the public. The Rev. Mr Hamilton, with the zeal that characterise? all his actions, some time ago invited the public to his house for the purpose of establishing a Charitable Aid Society, but only two or three responded to his call, and he had to abandon it. Mr Gray brought the matter before the ratepayers of the Temuka Road Board recently, and a general desire was expressed that he, as Chairman of the Town Board, should call a public meeting to discuss the matter. We have been requested to remind him of this, and also to state that it is desirable he should do ao as soon as possible. We have no doubt but that he will comply with the request, and we trust that when he does it will be well attended and well patronised.

ADDING INSULT TO INJURY. The Gladstone Ministry have swallowed a largo quautity of leek and feasted sumptuously on humble pie lately; but the pill which the Uzar has just given to them appears to us to be the least palatable of all. It will be remembered that when General Komaroff committed a wanton and most unprovoked attack on the Afghanistan army, a great deal of indignation was expressed at it; but the Russians excused it on the ground that General Komaroft was not aware of the negotiations pending between England and Russia and also that the Afghans were the aggressors. It has since been proved that both assertions were false, and England suggested that Komaroff should be recalled to mark the Czar's

regret for having thus given causa for open hostilities. The latest news, however, shows that instead of condemning KomarofFs action the C'zjr fully approved of it, and his sent him a letter of thanks and a diamond-bilted sword. He has thus taken the responsibilities on his own shouldeis; he has shown England that Kotnaroff did nothing except what he would have done himself, and has thus thrown down the gauntlet in the most arrogant and provoking manner he could possibly assume. It is evident that the Czir is adopting this " tread-on-the tail-of-my-cout" demeanour, because of the hesitancy shown by the British Government, and that he is just bullying them when he cannot provoke them to fight. What has General Komaroff done to entitle him to such recognition '/ Nothing, and the present has been given as an insult to England, more than in recognition of his services. Prom all this we must conclude that war must come before long.