THE NEW AMERICAN TARIFF.

Press, Volume LXI, Issue 13411, 1 May 1909, Page 3

THE NEW AMERICAN TARIFF.

IS. NEW ZEALAND A FAVOURED NATION?

A DOUBTFUL CLAUSE

WOOL DUTIES REDUCED. HIDES AND FLAX FREE.

(BY OVR SPECIAL COKBESr-O.VDE.VT.)

SAN FRANCLSCO, March 26. If the Tariff Hill now before the United States Congress had passed in the form in which it was introduced. New Zealand and other British dominions would have been among the disfavoured nations; that is, their exports to America would have been subject to the maximum rates. These special rates are provided in retaliation against those nations whose tariifs make a discrimination, against American goods. In most cases tho maximum rates are higher than the minimum by 20 per cent., so that New Zealand would have been placed at a great disadvantage. But an amendment has been suggested by Representative Payne, wiio has charge of tho Bill in the House of Representatives. He proposes, according to a telegram from Washington, to extend the benefits of minimum rates to colonies of other - nations whose only discrimination is in favour of tho mother country. Such a proviso would be only consistent, since the Payne Bill itself provides for free trade with the Philippines (and possibly Cuba), while maintaining tho tariff wall against other countries. But will the proviso apply to New Zealand? There is nothing in it at present to save a colony which makes a discrimination in favour of another colony; nor even i 3 it clear that such is the intention of Payne. lb will depend on the final wording of this section whether New Zealand is to bo placed in a better o.: a worse position than at present in seeking American trade. FAVOUKABLE REDUCTIONS. Provided New Zealand is granted minimum rates, her export trade to America should bo assisted by the proposed reductions of duty. Hides and ilax aro to be admitted free, and the duties on wool are to bo reduced, notably in the case of the cheaper grades. Tho proposed reductions in tho wool schedulo are these :— Third Class Wools (known as carpet wools). —The o!d rate was 4 oents (-a) per pound if tho wool was worth not more than 12 cents, and 7 cents if the wool exceeded that value; the new rato in 3 cents per pound if the wool is worth not more than 10 cents, and for every additional cent of value over 10 cents there is an additional half oont in tho duty up to a maximum of 7 cents. Top Waste and Roving Waste.—Reduction from 80 cents to 25 cents per pound; slubbing waste and garnoted waste, reduction from 30 cents to 20 cents per pound. Shoffy.—Reduction from 2o to 20 cents per pound; noils and all other wastes, reduction from 20 to IS cents per pound.* • • Woollen Rags, Mungo, and Flocks.— Reductions from 10 cents to 6 cents p?r pound. Top-3.—The old rate was 33 cents rrer pound and 50 per cent ad valorum for wool worth not more than 40 cents per pound, and 4-1 cents per pound, and 60 per cent, ad valorum for wool worth from 40 to 70 cents; the now rato is "tho duty imposed on 6coured wool and 6 cents per pound in addition." (Tho present duty on scoured wool is from 33 to 30 cents per pound, according to standard). Another remission affecting a New Zealand product is the removal of tk> duty from tallow. Not one of these remissions of duty on raw material will pass through Congress unopposed. Since there is no provision for a corresponding big reduction of duty on manufactures (though there ore slight reductions), the Democrats claim that the whole of the benefit will go to the big manufacturing firms; the consumer will be in statu quo; tho farmer will bo worst* off than heretofore. One. Senator has already announced that he will oppose the removal of the duty from hides unless shoes also are placed on the free list. IS IT A "FAT MAN'S" TARIFF? Throughout the country there aio pt oplo who compluin that tho new tariff .s designed in the interests of the big business corporations. Tho slight reductions in the duties on steel and tinplate mean nothing; new duties will bo just as effective in protecting the steel trust and the tin-plate trust from foreign competition. The Standard Oil trust is also well cared for. While oil is nominally en the free list, it te really given a protective duty of 99 per cent by th© paragraph known as tlie "joker" which is adopted from tho Dingley tariff. On the other hand the consumer is to bo further mulcted by a duty of 8 cents (4d) per pound on tea. An attempt was made to ta-i crffee also; but, coffee being the popular drink in this country, there was an immediate outcry; and when it was discovered that some New York .speculator* were expecting to make a bn; sccop by holding huge supplies of coffee until the price could be raised with the aid of tho tariff the newspapers cried "Job." and tho proposal w«3 Kj'led. Most of this criticism of the tarilf however, comes from the Democratic party. It is not regarded very seriously. Already divisions have appeared in the party. As on former occasions the Democrats as a party demand lower tariffs for the sake of the poor consumer, but as representatives they strive severally each to gain as high a tariff as possible on tho things that his own district produces. In thorn circumstances the criticism of tho tariff is likijlv to be for tho most part demagogic. FEATURES. The duty on timber is decreased by one half, the parties being agreed that the time has oomo when the country's wood should be conserved. An effort will probably be made to plp.ee timber on the free list. fhere is certainly one clause in the bill that favours the primary pro-d-cers of the country. That 'is the provision that, if an American manufacturer uses materials produced in this country in equal proportion with imported material, he will be entitled to a drawback of one per cont. ■\Vorks of art are to be admitted free. Tt is said that the effect of this will be the immediate importation of pictures and statuary worth between four million and six million pounds. The present duty is 20 per cent. What will bo the effect of tho maximum and minimum provision? Many members of congress believe it will lead where it was never intended to. Under this clause existing commercial treaties are to be terminated as soon as possible, and thereafter any conntry which does not give as good rates on all goods to the United States as to the rest of the world will be made subject to the maximum rates. It is claimed that very few countries will be entitled to the minimum rates. Accordins to the Democrats and some others, the net result will be a general increase of tariff although the present revision is ostensibly a "revision downwards." The stated purpose of the new tariff is to raise more revenue to wipe off the present big deficit. This it is hoped to do by the paradoxical method of , lowering the duties. Importations which are barred by the present prohibitory rates would come to the country if the rates were but slightly lowered, and so revenue would be gained at the expense of the protected' indus-

trio*. That this will be the result is doubted. The duty on tea, however, will be a sure aid to the revenue. Outside its tariff provisions the bill has two proposals for raising money. •It provides for an inheritance tax. which is expected to produce about four million pounds a year. Also it authorises the issue of a loan of eight mitlion pounds to reimburse the Treasury for the cash paid in the purchase of "the Panama Canal. To nid the Government in dealing with financial crises, power is given to issue notes to the value of fifty million pounds, tc run one sear. At present the issue is limited to twenty millions.