The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo. FRIDAY, AUGUST 14, 1925. STILL HIGH PROTECTIONIST.

Auckland Star, Volume LVI, Issue 191, 14 August 1925, Page 6

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

FRIDAY, AUGUST 14, 1925. STILL HIGH PROTECTIONIST.

■ 11 For the cause that lack? assistance, For the wrong that needs resistance. For the future in the distance, And the good thai we cun da-

News of yesterday and to-day shows that in one respect at least Germany has not changed. The fiscal policy of the country is still high Protectionist. The tariff that has just been put through the Reichstag after heated debates carries on the tradition of pre-war Germany. It is framed to help the farmer and the city manufacturer. The agrarian interest, which in Junker hands ' was exerted so potently in the old days, is still powerful. The new agrarian tariff is based, says the "Manchester Guardian's" Berlin correspondent, on the Bulow tariff of 1902. The rates are nominally equal to the old rates, but in reality they are lower owing to depreciation in the value of gold. They are, however, minimum rates, that is to cay, unlike some of the new rates on other products, they cannot be reduced. Some of the new duties on foodstuffs have a practical interest for countries like ours which may wish to develop trade with the Contiuent. On imported frozen meat 20 marks on 100 kilograms (something over a penny a pound) will be levied for the next twelve months, and then the duty will be raised to 45 marks (about 2id a pound). Fresh meat is to be taxed 35 marks and 45 marks respectively. The duty on canned meat begins at 20 marks, and will be raised to 30, and that on condensed milk will be 75 marks in twelve months' time. Minimum rates for rye, barley, and oats are from two to five marks, but these will .be raised to the old levels if no treaty agreements are made witli other Powers. The tariff is a bargaining weapon. "Free Trade as a doctrine," says this correspondent of one of the greatest Free Trade newspapers, "has never taken a deep hold on German public opinion. Free Trade versus Protection as a German election issue is almost incon- ' ccivable."' This correspondent contends, nevertheless, that the new tariffs are I simply the work of interested minorities. j The agrarians and the industrial i magnates have made a political deal, and the agrarians were supported by the Foreign Minister, Dr. Stresemann. who promised them food duties if .' they would vote for the Dawes j Plan. According to this writer, I German agriculture, which has benej fited by inflation, and has prospects of a bumper harvest this year, is better situated than trade and industry. He also says that the new industrial tariff has been framed to benefit special interests that are politically influential. Textiles as a class are not strongly protected, but the pre-war duty on certain silk fabrics has been increased fourfold ; and twelvefold, because manufacturers > particularly interested in these are i influential in the Federation of German Industries, which "has the Ministry of Economics in its pocket." The tariff has been opposed mainly on the ground that it will raise the cost of living, and wages are said to' be, on the average, lower than those in England by one-third. The Socialists and the trade unions have been using this argument, but Protection is the old policy of Germany, and the political arrangement for the passage :of the tariff is too strong to be defeated. '■■ The tariff is another proof that the world refuses to follow the English lead in Free Trade. It remains to be seen firstly what the effect will be on imports from Britain, and, secondly, whether Germany's exporting capacity will be strengthened or weakened. -The correspondent of the "Morning Post" writes of industry settling down to develop the aggressive export trade rendered necessary by the Dawes Plan. The "Manchester Guardian's" correspondent, on the other hand, thinks that the new tariff can only tend to decrease exports. ■ Whichever view may be correct, it is safe to say that Germany will continue to be j a formidable competitor in the world's I markets.