The Waikato Times AND THAMES VALLEY GAZETTE. THURSDAY, JULY 2, 1891.

Waikato Times, Volume XXXVII, Issue 2959, 2 July 1891, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE.

THURSDAY, JULY 2, 1891.

K.jual and exact justice to all men, Ot whatsoever state or persuasion, religious or political.

Tin-; well-known Auckland solicitor and political writer, Mr R Burton, has been contributing an able paper to our contemporary the Herald, untitled " A phiti for Australian Union." After dealing with the Inborn- problem, and the difficulties which may arise owing to an influx of the pauper and de graded offscourings of other nations, who would certainly prove with us. as ihey h.tTO already in the United .States, anything but desirable colonists, Mr Burton devotes considerable space to Federation questions, pointing out, with much force, that the pib'cy of isolation, upheld at the Melbourne Conference by the New Zenland delegates, is a mistaken one. We quote Mr Burton's words : —

Political isolation will entail fiscal isolation <\\°-r. Tn some quarters it is arg'ied

that economic law will mote out the penaltics due tn its infraction should the cumin!; Federation be protectionism Unfortunately this species of retribution is si jw, and d' en not pruvent tho infliction of great losses upon free trade communities. Whilst protective tariffs finally work mischief In the / countries imposing them, they meantime dislocate (perhaps permanently) the external commerce of other States. Nona of these colonies can remain outside tho proposed federal union without playing int.i the hinds of some of those that may join, and being placed at a commercial disadvantage with such competitors us may enter. The dissentient must nscessarily bo heavily handicapped in competition with colonies within the common customs union. An oxtensivo market, free to kindred communities, but closed to the rest of the world, has in small attractions. Certainly a colony cannot remain outside the union without remaining outside the barrier rawed by the tariff, and can hardly hope to be considered in such a reciprocity treaty as the United ritates may, for example, negotiate with the federated colonies, or in such treaties as may be negotiated with oilier powers. In fiscal warfare the expeiienco of other countries — of the Great Republic and Canada, for instance—seems to indicate that in such baneful struggles the weakest suffers most. Commercial question!) aro most vital to States. The contingencies of war and fiscal i may deeply atfect a nation's trade. Isolation affords none of tllofn guarantees and safeguards which are most requisite It is only strong and united peoples that can possibly remain commercially isolated. Union grants comj mercu greater immunities than are otherwise attainable. Tho dictates of common sense and the natural desire for Felf-pre-sorvation unite in raising a warning note ig»initl )c»lism, There i 3 one matterrequira, passing uotice—that is the possibility of obtaining economic relief by the consolidation of colonial debts aimed at by section 13. chap, iv., of the Commonwealth Bill. The interest on some colonial loans is aB high as 4 and 4.J per cont., in some cases 5, and evrn (i. The exact average rate for New Zealand is £1 I'm <Ji per centum. It should bo possible by a great scheme of debt conversion on federal guarantee to secure relief against such comparatively heavy burdens. Tha Oouinonwcalth's guarantee shonld enable the colonies to convert tho respective loans to bonds beariug not more than threo per cent, interest, The consequential saving would, ill the case of Xew Zealand, for example, be £7(13,470 2s Id per year on the net debt of f37,501.415, upon which is charged, as interest and sinking fund, t'1,807,002 12s 10.1, but upon which there would then have only to bo paid £1,134,132 10< !)J.

Tlii! tirgumonts hue adduced by Mr Burton aro very powerful, Evon were we to put nsido tho grout ailvmitagos wliioli a commercial reciprocity witb the Australian colonies would certainly give us, by allowing our produce—now almost crushed out by tbeir tariffs—free entry into their ports, there can be no doubt that the question of Australasian indebtedness could be better dealt with upon such a basis, as that suggested oy Mr Burton than upon any other. No one questions that the rate of interest now paid for the bulk of Colonial loans is, in viuw of the ample security, far too high ; and idso from the success which has hithsrto followed the inscription of Colonial debentures, though issued at a lower rate of interest. It seems feasible that if all Colonial loans could, as Mr Burton proposes, be consolidated, and their soundness guaranteed, the same money could be obtained at a very large reduction in the interest. Mr Burton has certainly opened up the strongest line of argument iu favour of Australasian Federation we have yet seen, and his thoughtful paper will well repay perusal.