THE AMERICAN TARIFF.

Press, Volume L, Issue 14883, 24 January 1914, Page 5

THE AMERICAN TARIFF.

EFFECTS OX AUSTRALIA! DRAWING OFF FOODSTUFFS. (fboii our own coiuiespon'dkxt.) TiONDON. I>ecember 13. The Washington correspondent of "The Times" has been dealing, in a I series of articles, with the probable effect of tho new United States tariff in drawing food supplies from the British. Empire. Tho possibilities of the establishment of an open American market for meat are already evident. It will at tho present rate only bo a few years before tho United States has ceased to bo a nioatroxpoitiiig country i n I'JOO, practically uio wnolo of iier exports, to the value of <j8,000,0U0 dollars, went to Great Britain. By 1910 tao valuo of the shipments had fallen to U4,000,000 dollars, and last year, to quote a Govrnment report: -'Of tho 4ti1,000,0001b of frozen beef imported into tho United Kingdom, in round numbers, tho United States furnished only 206,000it>, against 305,000,000 from Argentina, 1U0,000,000 from Australia, 2U,OtX),UOO from >iew Zealand, 23,500,000 from Uruguay, and 2,900,000 from other countries. Of a total of 435,000,0001b of chilled beef imported into the United Kingdom during tho year 11)12, the United States furnished only 478,U001b, as against Argentina's 133,500,0001b." Despite the increase in the Argentine and Australian trade, it is fairly patent that this falling-off must have already aireeted prices in a country which, like England, relics upon foreign supplies. Already the United States actually competes with England as an importer. Under tho Payne Law the American Meat Trust was active in the Argentine. It has established slaughterhouses and plants for chilling and freezing. It is now, according to, current reports, arranging for us/owri' service of refrigerating ships. Towards Australia, though local conditions there are said to bo unfavourable to an American export trade, the meat interests of this country aro turning greedy eyes. It may coon be the same in regard to wheat, though the growth of ; Russia, Canada, and the Argentino as exporting nations lessons tho significance of the American returns, having raised exports of wheat from 433.000,000 bushels in 1901, to <>38.O!K>,O0O in 1910. In x.,ul tho United States } headed the list of exporting countries with 179,000.000 bushels; u.y 1910. it had dropped to■ seventh, with an export trade of only 24,000,000 bushels. INTERFERENCE WITH IMPERIAL rKEFEREACE. Nor is that all. If tho Underwood Law is likciy to give an impetus to tho upward trend or ■prices at Home, it is bound to interfere with the network, of preferential arrangements-which, in the last decade has grown up across tho Empire. fe In 1898 Canada granted a special rate to British products. Since -liX>7 Bho_ has had a complicated preferential tariff granting an average reduction of duties of about 23 per cent, to tho Motherland. In 1903 New Zealand followed suit, and now Australia and tho Union of South Africa havo similar arrangements. In Now Zealand preference takes the.; form of a surtax upon nonBritish goods. South Africa gives a rebato to British, Canadian, and Australasian imports. 'Australia has .a double tariff, favouring British imports. Latterly, moreover, tho Imperial trade relationship has been strengthened on cais hemisphere by the Canadian-West Indian agreement, the most important part of which provides for preferential reciprocity in Canadian flour and West Indian sugar. How will tho new American tariff nffeet all this? In regaro to Australasia, the outlook is more .speculative. As said above, there has been much talk but little definite achievement towards profiting from the- cheaper meat markets of Australia and New Zealand, and from the cheaper dairy mnrkets of New Zealand. Nor are there any good data about the wool situation, though it is believed that a certain percentage of the Australian wool clip, which , England, Germany, and France now buy. will, when tho duty is removed, be diverted.to tho United States, just as American purchases of Australasian copper, which aro already considerable, will be increased. The possibility of a decided campaign for closer trade relations, especialiv after the Panama Canal is opened, cannot, therefore, bo ignored: and were the growing Australasian trade with Great Britain to be tampered with the result would probably bo still further to increase the cost of things at Home There are, indeed. American observers bold enough to prophesy that, if things work out as they expect, the time may come when Australasian loyalty to Imperial preference may bo tested as severely as was Canadian loyalty in iyi l* *