The Evening Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and Echo. TUESDAY, JANUARY 19, 1392.

Auckland Star, Volume XXIII, Issue 15, 19 January 1892, Page 4

The Evening Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and Echo.

TUESDAY, JANUARY 19, 1392.

Por tio c__so thai lite:;: E;n_!t-.r_c3, Fcr tho TTToniJ t_::t :i:;'2 r;„_„tnr.B For tiif future ia tlio t_r;;a_oo, A_tl tho Eflcd that tro oa_ do.

The commercial treaties just con.

eluded between Germany, Austria, Italy, Spain,' Holland and Belgium are exciting keen attention in Eng-

land, France and Russia, This im-

portant Commercial League has sprung from the "Triple Alliance" betwee" Germany, Austria and Italy. It is probably the direct result of the intensely selfish protective policy of the United States, manifested by the passing in 1890 of the famous McKinley tariff. This Commercial League has taken up the gauntlet thrown down by the United States. It is also a hostile demonstration against France aud Russia, and in a lesser degree against England.

Since 1870 the great Continental Powers have enormously increased their armies, and have ransacked the workshop of the engineer and the laboratory of the chemist to render their munitions of war more intensely destructive than ever before. Appalled at the terrible Frankenstien they have created, the European Powers, with bated breath, now stand on guard, each willing to wound, but afraid to strike; each fearing to discharge the first shot, knowing well what an avalanche of blood and ruin will i'ollow, but not knowing what the end may be. Unable to increase their armaments much further, the Triple Alliance has called to its aid the resources of trade and commerce. As observed by General Caprivi, the German Chancellor, the war of tariffs will supplement and partially take the place of embattled hosts, with the similar object of injuring enemies and helping friends.

The Commercial League is an at tempt to relax amongst the nations of the League the iron bonds of protection, with which almost every European nation bas for many years been industriously surrounding itself. Finding that whilst they have been attempting to benefit themselves at the expense ol their neighbours they have crippled the resources of their own people, they have now established partial free trade amongst themselves and shin out France and .Russia together with o'her nations. This is the most significant example of the partial adoption of a limited free trade since England abolished her Corn Laws, When Cobden declared in 1847 that in a few years free trade wcuid be adopted by the world, he reckoned without his host,- for from that time protection has year by year so widened itc restrictive barriers that now, .after the lapse of h;Uy-five years, Great Dritain is practical)/ {he only free trade country, almost every other nation having become sL'ongiy protective.

Under ibis restrictive influence, England is beginning to find, notwithstanding her manOi.acturing skill, her commercial resource:? and her inventive genius, that her declining trade, is at last showing signs of the. results of K.e hostile protective policy adapted by all nations towards her. She has the remedy ia her own hands. With.it! the

great circle of her empire England possesses the power to produce all the food she requires, and a very large proportion of the raw materials she needs for her manufactures. The formation of' a Commercial Union between the United Kingdom and the British colonies would in no long time render the English world independent of all other countries. It would greatly increase her trade, and if certain natural industries of the colonies were properly safe-guarded by the terms of the union, and colonial products were admitted on exceptionally favourable terms as against foreign products, the union would give the colonies a prosperity to which they have long been strangers. We are glad to see that at a recent meeting in London of the Associated Chambers of Commerce of the United Kingdom, it was resolved to hold a Congress of the Chambers of Commerce of the Empire in London in June next, for the purpose of discussing the formation of a Commercial Union between Great Britain and her colonies.

Hitherto, England's free trade poiicy has placed her colonies and foreign nations on the same level as to trade and commerce, in point of fact treating her colonies in these respects no better than if they were foreigners. Her colonies have not been slow to follow her example, and treat her as if she were a foreign nation, levying high Customs duties on nearly all her manufactures entering their ports.

The recent action of the United States in passing the McKinley tariff, which imposes on most of her manufactures entering the United States, duties ranging from 50 to 250 per cent. ad valorem, together with the still more recent establishment of close commercial unions in Europe which will practically close their ports to English goods, is at length directing the attention of England to the necessity of taking defensive measures to protect and develop her trade, comme.rce and manufactures.

We should prefer, however, to see reciprocal trade relations established between the several colonies of the Australasian group before embarking upon the wider venture of an Imperial commercial union. All the elements are favourable to the abolition of Customs duties between these colonies—wages, conditions and hours of labour, and cost of living, are fairly equal. An Australasian Customs Union, with or without political federation, would give an enormous impulse to.the trade of the colonies, and New Zealand, owing to its superior natural productiveness, would benefit more than any other member ol the group.