IMPERIAL PREFERENCE

Dominion, Volume 18, Issue 55, 29 November 1923, Page 8

IMPERIAL PREFERENCE

OVERSEAS DOMINIONS’ DEMANDS

“SOMETHING FOR NOTHING”

DANGER OF STRAINED RELATIONS

The president of the New Zealand Employers’ Federation (Mr. T. S. Weston), in addressing tho annual meeting of that body yesterday, made reference to the subject of Imperial preference.

“It is not the simple matter that many think,” he said. “England has sacrificed her agricultural industries in order to feed at the cheapest possible rate a large manufacturing population. To Ask her to increase food prices by imposing preferential duties is a request which she has in the past refused her own agriculturists. Inasmuch as the colonies at present cannot supply England with all thp meat, wheat and dairy produce she requires, tho colonial supplies would be less than the English demands. A preferential duty upon these imports from foreign countries would have to be faced by the English consumer. As there can be only one price in a market for articles of the same kind and similar quality, the inevitable result of imposing preferential duties upon food would be a strong tendency to increase the prices of these to the English consumer. The latter would have to pay in order that the present prices of colonial rural lands should be either increased or maintained.

“It is true that the colonies are prepared to grant preference on English manufactured goods, but this is subject to the clear condition that this preference should not interfere with any tariff in favour of local manufactures, and tho strong tendency is for this preference to British goods to cost the colonial consumer nothing. The colonial demand for English goods, even to tho exclusion of foreign goods, would not be equal to what the English manufacturers , could supply. Hence the supply being greater than the demand, the competition between English firms would prevent the amount of the preferential duty being added to the price. The colonial demand for Imperial preference means, therefore, asking Great Britain to give the colonies something which in all probability will imnose upon her an increased cost of living in exchange for something which will cost the colonies nothing. The same argument applies to the suggestions of shipping and other subsidies. These have to be paid for out of the British revenue, and, hence ; n part by British manufacturers. Taxation is an item in their cost of production in reducing which their one hope of salvation lies. What Britain Gives. “The attitude of the colonial .Premiers at the recent conference is in striking contrast to that of the late Right Ron. R. J. Seddon, when at his instigation New Zealand gave Great Britain preference. From his hands it was a free gift made without any expectation of return, and, indeed, as a small return for many benefits conferred on us in the past. For. after all, even if preference to Great Britain did impose some small pecuniary sacrifice on the colonies, which I contend it does not, is* there not the fact that Great Britain has provided us with an Imperial Navv, Consular and diplomatic services free of cost in the. past, and still, allowing that the colonies do make some small contributions towards naval defence, continues to do so? Tn addition, the British market is the colonies’ befit and freest market, and the British Government for many, years past has permittee! colonial loans to be floated on equal terms with its own. The truth is. 4 John Bull has watched his stalwart New Zealand. Australian, South African, and Canadian sons (a little hard up) endeavour to sell him, their fathir, a nup, and like the nice kindly old gentleman he is, he has humoured them by taking one, though a little one. “Tlmre is this further danger, too, in reciprocal Imperial preference. Nations are T'kg individuals —they have the same feelings and prejudices. Few families can conduct business deals between their members without quarrelling. Mav not n demand for reeiprooab and preferential treatment between Mother Coiintrv and colonies and the various colonies themselves cause strained relations? For example. Bradford merchants n few months back comnlaincd when Canada, after granting Croat Britain prefereneo. offered n> modified amount of preference to Wreime ip oxoham-e for trade opportunities. To-dnu. Canadian pane- merchants note with disfavour that Anst.rolm n'r>rl Vow Zoolond have imposed duties on noner which favmfr tho Eno*Ijsh manufacturer as against the Canadian. F r «n Trade Within FniPire.

“As to free trade within the Empire. the British Empire, unlike the States which form the United States or the German Reich, does not consist ol contiguous territories. Under free trade within a federation of adjoining States, industries' centre in the. localities most suited to them, and it is comparatively easy for the population to distribute and redistribute itself according to where the demand for labour is greatest. Within the widely distributed British Empire it would be much more difficult to redistribute population accordingly as one country produces more cheaply a particular commodity. Each nation’ desires to bo self-supporting as regards main essential industries, yet the natural facilities for . such industries vary as between various nations. Hence it is difficult to see how free trade within tho Empire can be a question of practical politics in tho near future. At the same time it is an ideal to bo sought. “The present movment towards protection in Great Britain appears to be more a method of defending tho English local market from the dumping tactics of manufacturers in foreign hcavilv protected lands. A Cambridge professor of political economy 30 years ago summed up tho effect of free trade upon Great Britain by pointing out: ‘lt had left her absolutely dependent upon foreign countries for the necessaries of life for her people, and at the same time, powerless to force a market for her own wares.’ Since tho armistice. France, Spain, the United States, the Argentine, and even Australia have increased their protective duties on the homo manufactures, tho first four nations to such an extent as almost to amount to prohibition of the articles intended to be protected. India has celebrated her attainment of a substantial degree of self-government bv the adoption of a protective policy. The sufferings of the Nottingham English lace trade, the English silk trade, the Bradford woollen trade, and branches of the Sheffield steel trade, not to mention other industries, through dumping tactics of foreign competitors during the last year, have undoubtedlv brought home to English statesmen that unfair competition may do a iradtf such mischief as ihe

subsequent removal of that competition will not undo. Effect of Foreign Tariffs. “The interesting trade statistics extending over many years in respect of England’s main manufacturig trades complied for and appearing in the English ‘Times Trade Supplement’ about twelve months ago, show very clearly how English industries have had to shift their ground in the face of new foreign protective tariffs. The counter moves have been towards manufacturing machinery and trada tools instead of the articles these' latter produce, creating a market for goods by reason of exceptional superiority in quality and opening up entirely new avenues of sale in new and less advanced countries. The conclusion forced on the reader, however, was that the growth of foreign industries and the continued increases in foreign protective duties were straining the versatility, initiative and thoroughness of English industry to the utmost. Apparently the English Premier, himself in close touch with manufacturing conditions, considers the time has come when the English Government must use its right to protect its own home markets, as a moans for bargaining and defence. Un till now England has been the most reliable market in the world for the surplus nrodnebs of every country. Its great advantages through being free to all are not valued bv her customers If they chance to lose them thev mav be glad to enter into reciprocal trade agreements in order to regain them. Actually at the present time some of England’s trade rivals are obtaining favoured treatment from England’s customers by the offer of a reduction merely in their protective duties on articles which England has always admitted free.”