TARIFF AND WAGES

Evening Post, Volume CXVIII, Issue 33, 8 August 1934, Page 4

TARIFF AND WAGES

(To the Editor.)

Sir, —In his letter to you of August 2, regarding Mr. Poison's proposals for (lie abolition of tariffs, "W.S.L." has given a very creditable crop of fallacies. Tlic main cause of his lament seems to bo that were- tho tariff removed, wages would drop most alarmingly, and iv onk'v to make up tho Government's deficiency in revenue tho body of work-, lira would have to bo taxed cm what was left of their wages after they had benn lowered to uioct foreign competition. Tlien lie claims Unit if w«g<-s as

a whole fell tho farmer would have to lower the price of his produce for the home consumer.

Firstly, if tho tariff were, removed, what would be tho result save a lowering of prices and a consequent increase in purchasing power? Tho farmer's prico to the homo consumer would not need to bo lowered. Surely it is desirable that tho majority should benefit rather than tho minority; further, if tho minority benefits, then tho majority must suffer by having to pity higher prices. Yet your correspondent assumes that because foreign goods were coining into the country wages must drop to moot tho competition, which gives one to conclude, in spito of all tho talk of New Zealand's secondary industries, that unless unnaturally protected they must collapse. Perhaps we have all been living in a fool's paradise and our industries are unsound.

Finally,- can "W.S.L." work this out? Tho interchange ol! money represents tho interchange of goods. Why in the namo of Freo Trade (natural trade) should tho citizens of a country bo fined to exchango what belongs to them? A tax on an industry can do no more than cripple it. Is there not some other means of obtaining Government revenue'?—We are, etc., THE COMMONWEALTH LAND PARTY, COMMITTEE ON PUBLICATION.