THE INFLUENCE OF DUTIES.

Auckland Star, Volume XXXVIII, Issue 163, 10 July 1907, Page 8

THE INFLUENCE OF DUTIES.

(To the Editor.) Sir, —Your correspondent "WJ5.," on freetrade and manufacture, asks, fir3t, would it diminish the export of tbe finished goods if a duty was placed on the raw material of which they were made. Answer, '•Yes," but such a duty would stimulate the export of other commodities to the same extent. If a duty was placed on all raw material in proportion used in every trade then all trades would go on as before the duties were levied, unless the duties were so heavy that it was found advantageous to employ the country's labour in doing their own work, and less foreign trade. An export duty on goods will have a similar effect on foreign trade to an import duty; all foreign trade will ultimately balance whether duties are levied or not, that is the exports and imports will be equal.

''W.S.s" second question, "Would a duty on food increase the cost of living?" is not so easy to answer. I understand "W.S." to a.sk if such a tax is levied on the working classes will it be ultimately removed to other classes of the community, or will it stop where it is levied. All taxes arc ultimately paid by labour whether they are charged directly or indirectly; it is of little consequence to the working classes whether they pay their taxes on their food, clothing, or through the channel of rent. It is, however, important to labourers that taxes both for the Government and local bodies should be collected in a manner that will cost the least to collect, and at the time that will be the most convenient to pay. The. net wages of labour, that is the standard of living enjoyed by the working classes of any country does not so much depend on the amount levied in rates and taxes as upon the productivity of labour. If the whole community of labourers were working in co-operation instead of in conflict there would be more to divide. The reason that the demand for labour is so often less than the supply is that we have too much capital, too great an accumulation of the necessaries and comforts of life, or, in other words, the incomes of all are not spent." I can assure "W.S." that local industries cannot be stimulated without diminishing our exports either of butter, gold, wool, or mutton, etc.—Yonrs, etc., JOSS. JOHNSON.