The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men, Of whatsoever state or persuasion, religious or political. THURSDAY, DEC. 18, 1896.

Waikato Times, Volume XXXV, Issue 2876, 18 December 1890, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men, Of whatsoever state or persuasion, religious or political. THURSDAY, DEC. 18, 1896.

The passing of the McKinley Tariff Bill by the United States Legislature lias naturally caused muck comment, and serious uueasiness in the manufacturing centres of Great Britaiu, and has raised a limited cry for a retaliatory policy, ill th<? form uJ: taxing American imports. This policy is not in the least likely to bo pursued, but judgiug from tho writings iu several of the leading journals, there is a strong failing gaining strength, that in the case of goods admitted free into the United Kingdom a small duty should be imposed on all, not the province of a colony or dependene} , of the Empire. It is also suggested that all the colonies should impose slightly higher duties on goods or natural products of similar origin.! Thh, of course, could uotbe carried into effect until existing commercial treaties expire by effluxion of time. A.South African statesmen made the proposition some time back as regards that colony and further proposes that the sum fhus raised .should be applied to an Imperial Defence Fund. Great Britain imports from the United States to the value of about ninety- tive millions per auuum. Of the goods making j up this value there is no reptson whaLuvur why tin; whole and ofciher i imports should not be produced within, the borders ot the Empire. We have every kind of climate :uul soil in the world. Tin: writer points out that by dogrnes ('aiv.ula, India, Australia, New Zealand, tho Falkland Islands, and South Africa would provide a sullieienuy of meat, wool, canned fish and fruits, and those motfds which are not produced within the United Kingdom. For Iropical products such as cotton, sugar, tea, coffee, etc., ho writes th.it India, Malaysia, Ceylon tho Wost India Islands, British Guiana, British Honduras and our possession in Coutral Africa, should give ample supplies Tn othor words tho proposal is thai; Fvoe-trado shall l>o established

within tho Empire and fair trade without.

That Free-trade can be established within a limited period appears to us at this end of the world an impossibility. There is much education of public opinion in all the colonies to be prosecuted before the existing Customs duties of tho different divisions will be substituted by direct taxation. This fact does not, however, prevent a slight _ preference being: given in o;mh division to British goods over those produced on alien territory. There can be no question that the first step towards the federation of tho whole Empire for offensive and defensive purposes would be commercial federation or mutual monetary benefit. We are in no sense in favour of

a protective tariff, we maintain that Customs duties should only be imposed for purely revenue purposes. In Jfew Zealand we are dependent for prosperity on our power to export the produce of the soil, and be able to compote, leaving a margin of profit to the producer, in the markets of the world against all other exporting countries. To export at a remunerative, rate means a low cost of living; protective duties have the direct effect of increasing the cost of living, and in consequence reduce proportionally the uliance which our pastoralists, agriculturalists and miners have of disposing of their surplus produce at a profit. This is the fact that will make the American occupiers of tin? soil wince under the burden of the McKinley tariff, the cost lof living is now very high indeed, and the margin of profit on the staple exports very narrow. The j eyes of the American farmer will be thoroughly opened to the position when ho discovers that owing to the increased cost of production he is unable to export at a profit, with the result that so soon as the home demand is satisfied the balance, is only to be disposed of at a loss. It is an accepted axiom that interchange of goods between countries is the secret prosperity of both. America has acted on a contrary hypothesis and a people who pursue an unnatural cour.se whether as regards their commerce or their habits of lifo arc certain to suffer for their perversencss.

' It is uaid that extremes meet, or are in such close neighbourhood that only a small i;ausn will bring them'together. The Americans are riding the Protection horse at such a pace that there is every probability of its foundering at a very early date, and almost a Free-trade animal be found running on the track at a pace likely to last. iUanopolist manufacturers have brought all thw power into tho field and have gained a temporary victory, but when the farmers of the country awaken to the true meaning of the movement, there will bo a. reaction that all their skill, diplomacy and numbers will be unable to resist. The lesson should be of such benefit to us in tliis colony that there should be no possibility of the protection-lute being sounded without its strings being immediately cut and compulsory silence imposßcl.