MR GLADSTONE ON PROTECTION.

Waikato Times, Volume XXXVI, Issue 2887, 15 January 1891, Page 4

MR GLADSTONE ON PROTECTION.

Si'KAKrxci at Dundee in reference to tlie "MeKinley ta.i-ifF, Mr (Jlndstoue siiicl:—

'■Though. the national oi>inion of this country is in favour of Free Trade, yet we have among us u certain number ot' people who believe tlic. injurious effects of Protection are chiefly felt by the countries that 'leal with a, protected cuuntrv. The argument is that, Protection fosters their trade. Now, that L believe to be fundamentally a mistake. Ido not mean to say there are no injurious effects -as a great deal of displacement and disturbance, what we may call demoralization of trade, and a great deal of inconvenience is felt by individuals and even by classes, but. taking a larger view, it is not true than any tariff in any country on earth can interfere seriously with the prosperity of Great Britain or the United Kindom. And why !' If you will simply follow me, in a few words I shall show, I think, how it is that this operates. Let us suppose that there are 20 great markets in the world and that tltose, for the sake of argument, are all the markets in the world, and that in one of these markets a stringent Protection law -such as the McKinlev Tariff—is passed. 2*o doubt, the iirst effoct is to injure us ill the market and to restrict ourdealings. But, then what is the larger and wider effect r The larger and wider effect is to increase, to raise the standard of prices in the United States of America. Raising the standard of prices in the home market means a diminished power of exportation, and a diminished power of exportation means that while wo are damnified in one of our 20 markets we derive benefit in the other 1 f) from the diminished power of the United States to compote with us in any one of them, a diminished power due to the augmentation of prices and to the imposition of restraints under which she has to work. And so even if wo go all round the world it still remains that each country that gives greater stringency to Protection within its own borders is thereby—though damaging us in its own market —giving us a freer and a broader field and a commanding power in every one of the other 1!) markets of the world. The consequence of this is that it is not possible for us to receive vital or profound injury from any of these operations abroad. You see the alarm that prevails ill Germany. They threaten retaliation against the JJcKinley tariff. Gentlemen, do not let, us be led for one moment upon any consideration into the suicidal policy of talking or of dreaming of retaliation. Our trade has been hit again and again, as far as it has been in the power of anyono to hit it, by the reaction towards Protection which has marked the legislation of some countries during the last 10 or 10 years. Gentlemen, we do not deal with this country or with that country, we deal with mankind—nothing more and nothing less than with mankind.