FALLACY OF PROTECTION.

Waikato Times, Volume XL, Issue 3207, 14 January 1893, Page 2 (Supplement)

FALLACY OF PROTECTION.

It lias, always been contented by Free-, traders that import duties are borne by the' consume!. This the Protectionists strenuously deny.'' Acwdiajr to them nil duties are paid by the foreigner. In vain is it pointed out tint the importer, who pays thorn to the State, clnps on an extra price, plus an extra profit, and charges the whole to his customer.*, Often the imported : article pa«es : through several hands, eaoh taking toll, before it reaches the public. ■ All this is so apparent (says "Nemo" in thb Pnncdih Star) that one wonders how the many-headed can be deceived by the specious plea of'" encouragement to native industry." How-; over, tho truth seams to have dawned on the unwilling mind of at least one of the champions of Protection. The fact was evolved in a rather curious manner. The Victorian Parliament, under the guidance of Sir Giaham Berry,, has bsen busily engaged in welding and ptrdnjthoning trade fetters in the gnis6' : bf inorea«cd import duties, and, in accordance with the usual practice, the extra rates were levied pending' the deoision of the. House. SomO; of these increases were rejected, and when the tariff bill was brought in it was proposed that the dues: which had been so levied, but, not sanotionod, should be refunded. To this the Protcolionists objected ; and their companion, Mr Trenwit'i, assigned the excellent reason for so objecting that "tho duties hadi' already been collected .by the merchants from their customers," and that to refund them would only bo''making a present to tho merchants and tho foreigners." 'So' tho customer does pay the duty after all! Mr Trenwith.fairly gave himself: and., tho. Protectionists. away by, this inoiutions admission, ' Tho fact is that every penny levied on imports is eventually paid by the consumer. Protection is just a subsidy, levied on tho many for (j tho benefit of the fow~a tax paid by the whole commnnity for, tho gratification of a part; and so ingeniously intricate are'its workings that in the long run everybody suffers from its operation, ~,..... >