THE FEDERAL TARIFF.

Evening Post, Volume LXII, Issue 87, 9 October 1901, Page 6

THE FEDERAL TARIFF.

<> ITS EFFECT ON NEW ZEALAND. A BIG BLOW TO OUR PRODUCE TRADE. It was somewhat difficult to obtain opinions this morning as to the probable etfecfc of the new Federal tariff on the products of this colony, the day being a close holiday, and the (representatives of many of the firms affected out of town. Then, again, the meagre character of the cabled information then made it difficult for any one' to venture a positive opinion. The general view of the new tariff, judging it on the information to hand, seems to be* that this colony has been specially singled • out for heavy imposts, and that the result will be practically to kill the export trade in a number of lines of produce. OPINIONS OF A WHOLESALE TRADER. Mr. H. Beauchamp, of the firm of W. M. Bannatyne and Co., unhesitatingly declared that the tariff was a direct aim at New Zealand, especially in relation to such items as butter, cheese, eggs, and timber. All things considered, it appeared to him a very short-sighted, policy, for the reason that it seemed almost certain that Australia would have to come to this colony for large quantities of its products from time to time, when adverse climatic conditions prevailed in the Commonwealth States. In Australia itself there would in all prouniJiiity be an outcry from New South Wales in particular, which might end in the overthrow of Mr. Barton, and give an opening for Mr. Reid, because the new proposals appeared to be so very extravagant. As regards the effect of the tariff on this colony, Mr. Beauchamp points out that there are only one or two of the Australian States that can produce in any quantity similar goods with the exception of wheat to What we produce in this colony. The climatic conditions are against them. Thoy are bound: at certain interval to come to us for supplies, and the additional tax will therefore fall upon their own shoulders. They haye 1 , for instance, no timber that can replace our kauri. White pine they have been wise enough to let alone, but tawa, another soft wood, they take in large quantities. As for hams and bacon, now proposed to be made subject to an additional impost of 3d per lb, Mr. Beauchamp is of opinion that for quality there is no part of Australia, that can produce an equal to the New Zealand product. There is a big demand for hams and bacon from this colony in all the Australian markets. Mr. Beauchamp gave an instance. A local curer had an. order from one Sydney house to "send all the hams you oan produce," and in other respects was so busy that he was unable to undertake contracts from local people anxious to arrange for supplies ' tor the Christmas trade. "It means," said Mr. Beauchamp, "an immediate check on our trade, whether the tariff passes or not, but I can't believe that it will be confirmed! in its present condition." The item 20 per cent, atl valorem duty i^on mineral water seems to him rather a paltry smack at our Te Aroha 'and Puriti waters, for the protection of 'the one mineral water obtained in Queensland. The effect of the new tariff as a whole, Mr. Bea-uchamp thinks, will be to produce a howl from our farmers, but he does not anticipate that this colony will be affected to the extent that many people will imagine at first sight, for he points out that our export trade with Australia 1 ' excluding specie, only represents 10 per" cent, of the whole of our exports ; 90 per cent, goes to other places. i Undoubtedly Australia acts as a distributing centre for a great deal of our produce, but the duty will not affect that trade. 'Goods -will simply be shipped under bond for' re-export to the East and elsewhere. New South Wales is the chief Australian consumer of our product, and has also been used as a dumping ground for large quantities of produce' consigned for sale. Victoria will benefit by the tariff, as it will encourage her to go ahead and increase her productions. Weighing the question whether, in view of the new tariff this colony ought to seek a remedy by federating, Mr. Beauchamp remarked that what we have to consider is whether the advantage of having the trade with Australia, even up to the extent of 15 per cent, of our total exports, is worth the sacrifice of our political independence. Mr. Beauchamp, it^may be added, was a member of the New Zealand Federal Commission. A PRODUCE MERCHANT'S VIEW. The new tariff, as will be seen from the cabled information published above, affects the produce merchants to a greater extent than the general merchant. Mr. F. B. Farmar, of the firm of Laery and Co., to whom the new duties were quoted, remarked that as far as New Zealand butter, cheese, tea, hops, potatoes, and some other items were concerned, the new duties would probably be found absolutely prohibitive. Take hops as an example. H,op-growing in this colony at the present tima was languishing for want of a market. We were growing more than we could use,, but had found a ready market in Australia. The effect of the new tariff would be to shut up half the hopfields, unless other markets could be found. Then as to fi3h. We exported a considerable quantity of fresh fish to Australia, and the market was growing. Both Sydney and Melbourne consumed a good deal, and would take more if it were available and the price within their means. The fishing industry in this colony was only- just being developed, and Australia was going to be the market. The extra' duty would affect that trade. As to meals, Queensland could produce sufficient 'to compete against outsiders. The duty on potatoes would probably stimulate Tasmania to put greater areas into crop, and endeavour to supply Australian markets that heretofore drew their supplies from New Zealand. New South Wales would feel acutely the new duty in this respect, having been a free port, as if she absorbed further supplies from this colony it would mean that she would have to pay the difference between present prices and the extra duty. The probable, effect in this colony would be that the, farmer -would suffer, and less potatoes would be grown than heretofore. The farmer, as v, matter of fact, would be the sufferer all round, as the Australian markets to a very large extent controlled the price of produce in the local markets. There was nothing in particular as to which we could letaliate, except, perhaps, fruit, ' bark for tanning purposes, Newcastle coal, and a few other minor products. AN OPTIMISTIC MERCHANT. Mr. Nicholas Reid, of W. and G. Turnbull, and Co., was also of opinion that the new tariff would kill trade in hams and some other foodstuffs, but he did not think that it would affect this colony very materially in the long run. It had long been recognised that the time was coming when Victoria, in particular, would be able to compete successfully with New Zealand in her own particular line, and the new tariff would help that on. Increased protective duties'* nad been anticipated, but they were heavier than it was supposed would be imposed. Other opinions gjven were to the effect that the duties' on grain would be

felt by tho Southern portion of this island, and that we shah have to look elsewhere than to Australia for markets for a number of our foodstuff,?. Another phase of the question pointed out was this — that if the new tariff is adopted and the effect upon the exports frgm this colonj/is as anticipated, it will seriously affect the two shipping companies ■which control the intercolonial service — the Union Steam Ship Company and the Huddart-Parker Shipping Company — in the matter of cargoes carried from New Zealand.