The Waikato Times AND THAMES VALLEY GAZETTE. TUESDAY, MARCH 17, 1891.

Waikato Times, Volume XXXVI, Issue 2913, 17 March 1891, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE.

TUESDAY, MARCH 17, 1891.

Equal and exact iiisticc t<. all men, Of whatsocv<:r state or persuasion, religious or political.

The speeches which have Won delivered bv tho delegates to tho Federation Convention have boon so lougthy, and tho speakers have covered so much ground that it is iuipossiblo within tho necessary limits of an article- to follow them. Thoro was however, a concensus of opinion that thoro must, in the first placo, bo frse-trado throughout the whole group, and that tho probable policy of tho Federated States would bo highly protective. Hitherto, of course, only generalities have beon dealt with, tne detailed scheme it is hoped to formulate in committee. It appears to us that it will bo difficult for New Zealand to stand aloof. It may bo true that sho would probably not gain so much by federation as the Continental colonies, but wo cannot overlook the fact that it is to them welookto take our surplus farm and dairy produce. If sho romains outside, the federation her produce would bo equally taxed as that of any foreign power, and thoro can bo no question but that tho fanning intofuut would bo sufficiently strong to aocuro that tho tax shall bo a, sufficiently heavy one to aocuro to them tho highest possible prices compatible with tho gross production within tho borders of the federation. The time for considering the question from a sentimental point of view has passed. Sentiment has spoken, and ha 3 emphatically pronounced tho sentence, federate and bo great* AVo have now tho much more difficult task before us of settling details, so that each division shall equally participate in the material advantages which are anticipated. Wo must confess to a feeling- of alarm at the prospect of a " highly" protective tariff. That the necessities of the different colonies will compel somewhat high Customs duties is beyond a doubt, but if those are fixed on a higher seale than is absolutely necessary from a purely revonuo point of view evils will rosult. In connection with this Customs question and internal free trade, the representatives of the smallor colonies must be careful to securo that tho import trade is not concentrated in the large centres amd the imports distributed therefrom. This would not bo ;ui evil unless tho importing State ro roivod au undiH' prupurtinn of the duties paid at its port. Some arrangement will have to be arrived at by -which tho consuming Stato shall benefit by the Customs duties levied on foreign go.id-,. _ Tho tendency at the present time is to build vosscls ot increasing tonnago, it having been found in practice that tho larger the vessels the less is tho cost of carriage per ton, presuming of course that a full freight is carried. Melbouruo and Sydney are nearer Europe than Now Zealand and are already largo commercial centres, and it may therefore be fairly anticipated that under a common Australasian tariff

a proportion of tho foreign tra.lo' of tho whole foilfra'.mn ' would ]iii>3 tlios'j two ports in tUo iirst instance, and tlio iliflLculty of turning- tho course of tnidn from its ii(;ciistoiiu!(l channols has bci'U fn.'qupntly demonstrated. As regards tho niiticijK.V-1 highly protective tariff it will of course lie to tho interest of Victoria move particularly to secures its imposition. •<lio has pursued tho policy for some years and is beginning Id feel the evil consequences,. Five ports for her manufactures and heavy penalties on foreign producers is all she requires. It has always been erroneously urged that the United States has mainly attained its present position in consequence of luT protective* duties. It is much more correct to state as did one of our statesmen : " She has , lieco.r.e ij.Tat in spite of them." .Mr T. ('<■ Sherman, who is accepted as an authority, writes as follows in the Forum :—-'The consequences are alarming of protection and the concentration of wealth in the hands of a small number of persons, and the diminishing portion of it held by the farmers and wageearners of the nation. Jiotween 1870 and 188:2 the middle and poorer classes were compelled to disburse IGO millions sterling in the shape of indirect taxation or of enhanced prices of articles of home production occasioned by the tariff. The 250,000 rich families own three-fourths of the wealth of the country, receive annually 40 millions sterling as profits from the tax system, and their annual savings are five times greater than those of all other classes. The interference of indirect taxation alone, causes the richest class to gain upon thf other classes at the rate of L'OO millions sterling per annum. There arc tho 11,670,000 families iu the States whose average iiieoim , is less than .£2 per week. If this system continues the coming of the billionaire on the one hand and a million paupers on the other is of course inevitable. Happily it cannot continue. The surplus of national revenue is gone, and has been replaced by an annual deficit of ten millions sterling. New taxes must be imposed aud nothing further can be obtained from the Customs. In the reaction which has already begun all taxes imposed upon the poor for the direct benefit of the rich will be swept away. Everything points to the adoption of a tariff for revenue only and to tho institution of a general Income-tax. It is one of the demands of tho Farmers' Alliance everywhere." The above is a picture of the result of a policy similar to that threatened by the Federation, if it is ever whipped into life. Its contemplation should have considerable weight in deciding whether or not this shall be.