AMERICAN TARIFF.

Evening Post, Volume LXXVII, Issue 99, 28 April 1909, Page 16

AMERICAN TARIFF.

IS NEW ZEALAND A FAVOURED NATION? A DOUBTFUL CLAUSE. WOOL DUTIES REDUCED ; HIDES AND FLAX FREE. (From Our Own Conespondent.) SAN FRANCISCO, 26th March. If the Tariff Bill 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 tariffs make a discrimination against American goods. In most cases the 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 Mr. Payne, who has charge of the Bill in the House of Representatives. He proposes, according to ar telegram from Washington, to extend the benefits of minimum rates to colonies oi other nations whose only discrimination is in favour of the Mother Country. Such a proviso would be only consistent, since the Payne BiU itself provides for free trade with the Philippines (and possibly Cuba), while maintaining the tariff wall against other countries. But will the proviso apply to New Zealand ? There is nothing in it at present to save a colc*y which makes a discrimination in favour of another colony ; nor even is it clear that such is the intention of Mr. Payne. It will depend on the final wording of this section whether New Zealand is to be placed in a better or a worse position than at present in seeking American trade. Provided New Zealand is granted minimum rates, her export trade < to America should be assisted by the proposed reductions of duty. Hides and flax are to be admitted free, and the duties on wool are to be reduced, notably in the case of the cheaper grades. The proposed reductions in the wool schedule are these :—: — Third-class wools (known as carpet wools) .- — The old rate was 4 cents (2d) per pound if the wool was worth not more than 12 cents, and 7 cents if the wool exceeded that value; the new rate is 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 cent in the duty up to a maximum of 7 cents. Top waste and roving waste. — Reduction from 30 cents to 25 cents per pound ; stubbing waste and garneted waste, reduced from 30 cents to 20 cents per pound. Woollen rags, mung'o, and flocks. — Reduction from 10 cents to 6 cents per pound. Tops. — Tlie oid rate was 33 cents per pound and 50 per cent, ad val. for wool worth not more than 40 cents per pound, and 44 cents per pound, and 50 per cent, ad val. for wool worth from 40 to 70 cents ; the new rate is "the duty imposed on scoured wool and 6 cents per pound in addition." (The present duty on scoured wool is from '65 to 36 cents per pound, according to standard.) Another remission affecting a New Zealand product is the removal of the duty from tallow. «£rofc one of these remissions of duty or raw material will pass through Congress unopposed. Since there is no provisioi for a corresponding big reduction of duti on manufactures {though there are sligh reductions), the Democrats claim tha the whole of the benefit will go to tin big manufacturing firms ; the "consume: > will be in statu quo ; the farmer will bi worse oft than heretofore. One Senato: has already announced that ho will op • pose the removal of the duty from hidei , ■ unless shoes also are placed on the fr» I lis , t ' \ Throughout the country there an people who complain that the new ta'r'if is designed in the interests of the bi< business corporations. Most of this criticism of thei tariff however, comes from the DemVcratl Party. It is not regarded very seriously Already divisions have appeared in thi party. As on former occasions, thi Democrats as a party demand lowe tariffs for the sake of the poor consumer but as representatives they strive several ly each to gain as high a tariff as possibl on tho thing 6 that their own district produce. The duty on timber is decreased b; one-half, the parties being agreed tha* the time has como when the country' ■wood should be conserved. An effor will probably be made to place timbe on the free. list. There is certainly one- clause in thi Bill that favours the primary producer, of the 'country. That is the piovisioi that, if an American manufacturer use materials produced in this country ii equal proportion with imported material he will be entitled to a drawback of om per cent. Works of art are to be admitted free It is said that the effect of this wil be the immediate importation of picture and statuary worth between four miSHI and 6tatuary worth between £4,000,(XX and £6,000,000. The nresent duty is 21 per cent. Existing commercial treaties are to bi terminated as soon as possible, and there after any country which does not givi as good rates on all goods to the Unitec Statas as to the rest of the world, wil be made subject to the maximum /ates It is claimed that very few countries wil be entitled to the minimum rates. The stated purpose of the new tarif is to raise more revenue to wipe off th< present big deficit. This it ie hoped tc do bj»- the paradoxical method of lower ing the duties. Importations which art barred by the present prohibitory rate; would* come to the country if the rates were but slightly lowered, and so revenut would be gained at the expense of th( protected industries. That this will be the result is doubted. The duty on tea however, will be a sure aid to tht revenue. Outside its tariff provisions the Bill nab two proposals for raising money. •"' 1 provides for an inheritance tax, whicli is expected to produce about £4,000,00( a year. Also it authorises the issue of a loan of £8,000,000 to reimburse the treasury for the cash paid in the purchase oi the Panama Canal. To aid the Govern ment in dealing with financial crises : power is given to issue notes to the value of £50,000,000, to run one year. At oresent the issue is limited to £20,000,000.