OUR KAURI GUM.

Auckland Star, Volume XXXIV, Issue 229, 25 September 1903, Page 4

OUR KAURI GUM.

It (is not likely that the suggestion made by the Minlister of Lauds as to a.n export tax on kauri gum wi.il have to be taken seriously. Mr Baume's proposal for a tax on unsortc. gum mig'-t be worth considering, if it were shown that any large amount of gum is sent away uuso-rted. Nio doubt a certa'n amount of loss is i_n_Kc_ed upon gum-scraper.-whien gum is'sent away uiisortcd. But there arc, we understand, less than one hundred men working at, this branch of the gum industry, and

the total quantity of un.orted gum exported annually is very small. On the other hand, it is not easy-

to sec how an export tax ou an article which can probably be superseded by cheaper _iib.._i_t-t._ w.uld be paid by tho consumer. It would necessarily fall upon the producer, and tihe last state of t'iie gum-sorter would lie worse than the first. An industry employing nearly

5000 hands would be imperilled in the attempt to help perhaps SO or 90 men. But under any circumstances we fail to see how Mr Baumc's scheme would benefit the gum-workers; and we are convinced that .Mr Duncan's proposal for ah export tax on all kauri gum would, if carried into effect, inflict ir-

i .mi. liable injury upon on._ of our most valuable industries.

It does not require much (argument to prove that an 'export duty is not much use to the producer of the taxed commodity unless he can raise his selling price correspondingly. Bi_ he. :C&_. ot do this unilc.-_ he has a .monopoly of Lite taxed product, and mile . tins particular thing is indispensable for the purposes of tine buyer. In one sens:*, we have a monopoly of the kauri gum trade; but, on live other hand, we oai. nott prevent the use of cheap substitutes for kauri gum which are already dangerous rivals to our own product. Just now kauri gum has reached a Very high level of pr'ee, and lit is certain ...at it could not be forced higher without affecting the demand. This faci has, of course, stimulated thi. eompetitiion of other inferior gums, which, as'the supply of kauri is worked out, must __.nti._-Uv take 'its place. An export duty oiri our own gum would merely act as a bonus on Manila and other foreign gums, which have already ga.in.ed a finri footing in the market. The only (thing we can do with kauri gum is to export it. and any fiscal check imposed upon the trade "n its present condition can do nothing but harm, a. it would alt once compel our customers to fall back upon lower grade gums. All this must be perfectly clear 'to anyone at all fanii'uar with the facts and possibilities of tlie gum trade; but unfortunately Mr Duncaji. knowledge of kauri, whether .as gum or timber, is lobviiously limited. We do not suppose .it 'is necessary to argue the case in all its fimancM aspects. No other product in this colony ■ has ever been subjected to an export duty, .and as the industry is entirely confined to Auckland the loss would fall upon us alone. We presume that it he moniey obtained from the duty wonfld be expended in Auckland Provincial . District; for we cannot .imagine that even five Minister for Lands would propose to penalise a purely local industry for 'the bemeifiit of the whole colony. But we can afford bo neglect this side of the ease, sdnee the general! argument against .he levy of

a.ny such. impost as. so strong. Mr Baume's duty on uns.rted gum might

harm -the trade withtout benefiting the workers, but Mr Duncan's general ex-" port duty would in all probability rub' tlie (industry at- once and B/r ever. Kauri gum is so _-_rec now that tne large body of diggers engaged iki collecting it barely earn a living wage. They certainly cannot stand tlie deduction of an export 'tax from their earnings: and as there is no m-eansp'of forcing the consumer to pay more than h;:> is now giving, the consequences of such a tax would, as we have said, in all probability prove most disastrous.