TARIFFITES BEATEN.

Dominion, Volume 1, Issue 21, 4 June 1908, Page 7

TARIFFITES BEATEN.

DIVISION IN COMMONS. MR. BALFOUR TALKS CORN DUTY. FREE TRADE REVENUE. PATENTS ACT AND PROTECTION. lIY TELE3RAPII—PREEB ASSOCIATION" —COPTHIQn7 (Rec. June 3, 10.24 p.m.) London, June 3. In the House of Commons the debato was resumed on tho tariff reform amendment to the Finance Bill, -moved by Mr.' Laurenco Hardy (Conservative member for South Kont): That, in view of the growing liabilities and the need of further reducing tho burdens cast on tho ratepayers for national purposes, the House regrets that no attompt is being made to increase .the revenue by broadening the basis of taxation.

A TARIFF REFORMER'S VIEW OF GERMANY. Mr. A. Bonar Law, Conservative momber for Camberwell (a Chamberlainito and tariff reformer), said that'nobody proposed prohibitive duties on imported goods with a view to manufacturing everything . ourselves, whether wo are able to competo with our rivals or not. He was not a Protectionist in the crude sense of tho Patents Act (passed by. the present Government), which withdrew the patent of an article unless the article is manufactured in tho United Kingdom. What he' desired was to givo manufacturers and workmen preferenco in their home market, onabling them to compete better with foreign rivals there. He rebutted' the criticisms made by the Chancellor of the Exchequer (Mr. LloydGeorge) on German finances. Tho fact was that in Germany unification and centralisation wero not complete, and particular taxes were only possible with tho consent of tho different German States. People in Britain would know what that meant if they had homo rule all round. Ho emphasised tho fact that Germany was sponding borrowed money ih naval construction. Tho Board of Trade's figures showed that tho rise in wages in Germany for tho two decades preceding 1900. exceeded tho rise iu any other country, and that there, had been a great fall in the cost of living. , / Mr. Churchill, President of the Board of Trade, replied that' since a patent was a restriction on Free Trade, tho Patents Act was a reversion to Free Trade. He contended that tho taxation of food and of manufactures went together. The Government protested against broadening taxation by making it press moro heavily on tho threadbare shoulders of tho poor. ;

MR. BALFOUR ON FOOD TAXES. Tho Leader of the Opposition, Mr. Balfour, expressed disappointment with tho attitude of Ministers. Even if he did not believe in establishing some bond with tho colonies and in safeguarding British manufacturers against illegitimate forms of competition, ho would still consider a broadening of, the basis of taxation necessary and inevitable. Tho situation in which the coun--1 try stood—faced by a vast. expenditure for which no provision was foreshadowed—was unprecedented. " Regarding food, if the country's,financial necessities demanded it, he would not shrink from roimposing tho corn duty, but he would be no party to increasing ■ the working classes' proportionate burden. Mr. Balfour added that if tho Government intended to use tho income tax aild tho death duties in a way tho authors of those taxes never intonded, it would bo inflicting a gross injustice on a few, and—what was more important—a serious injury to the industrial interests of the many.' PRIME MINISTER IN REPLY. Mr. Asquith, Prime Minister, said that while tho amendment attacked tho Budget, his two cardinal proposals—reduction of the sugar duties and' establishment of old ago pensions—wore not contested. What had become of colonial preference? The colonial .Premiers having gone, had the'Opposition'so soon forgotten them? Nothing had been said regarding a tax on wheat, moat, and dairy produce. '• 'Mr. Asquith added .that if' the Government foreshadowed their revenue plans for 1909, their expectations would bo defeated by astute anticipations. Ho strenuously denied tho recklessnoss of improvidence attributed to his financial policy. Free Trade finance had produced;a condition of stability on which thoy were ontitled to pride thomselves, enabling them to more than meet all coming charges. Tho amendment was rejected, tho voting being as under: — ! For Amendment 12c Against Aniondment 367 Majority against 243

Three Unionist Free Traders voted for the amendment. The second reading of the Finance Bill was carried. . GERMAN TAXATION. In most fiscal debates a controversy crops up as to what Gormany's tariff experience proves. Mr. Lloyd-George emphasised the cost of living in Gormany and hor borrowing for current expenditure. Mr. Bonar Law . controverts him on the former point; and endoavours to explain tho latter bv referring to the navy-building boom und the peculiar relations ef German Federal and State Governmental More light is thrown on Mr. Bonar Law's point as to the imperfect taxing powers of Germany by the new book writtoii by German State Councillor Martin. While admitting tho dangerous state of German finance, tho borrowing for current expenditure, etc., State Councillor Martin, points out that the coexistence of Federal and State Governments costs an additional .£50,000,000 a year;'and he declares that, under tho present system, "the German taxpayer is far less burdened than the British taxpayer. In Germany each citizen pßys an average sum of ,£1 4s. gd. per annum in taxes, while the British citizen pays an average of X 3 6s. sd. per annum in taxes. The author argues that these figures prove the possibility of a great increase of taxation in Gormany without imposing excessive burdens on tho population, and that it is tho lack of sound financial administration alone which has plunged Germany into her present difficulties." Within a few years the German Empire will havo a regular annual deficit of ,£30,000,C00, and tho author considers that tho revenues of the Empire mnst be increased by <£35,009,000 per annum to avert financial catastrophe, Thoro ave 25 sopavato States and 22 ruling Monarchs in Germany, and the aggregate amount of thoir respective civil lists is an enormous financial burden on tho country. Owing tho fact that the individual States of .the Empire maintain thoir own wsparato Governments, Germany ' possesses more than a hundred Cabinet Ministers and a corresponding proportion of Govornmont officials of iower grades, and their maintenance involTos a heavy financial sacrifice.