HOW PROTECTION PANS OUT.

Evening Star, Issue 8716, 7 January 1892, Page 1

HOW PROTECTION PANS OUT.

The ' Trade Review,' published in Wellington, in a recent issue gives a most interesting summary and analysis of certain results of the census in regard to local industries in New Zealand. The bladder of Protection is effectually pricked, in that the facts and figures unmistakeably demonstrate that the high tariff of 1888, which was to do such wonders in the development of manufactures, has proved to this end a total failure.. There can be no question as to the burden entailed upon the community at large, and especially upon the. great producing classes, engaged in the various branches of agriculture and in mining—even if it be admitted that under any circumstances Protection is justifiable, or that in the nature of things it ever can bp permanently beneficial. In this Colony the game is clearly not worth the candle. All conditions point to the. desirability of our trade and commerce being as free as is practicable, consistent with the exigencies of a finance unfortunately based upon the unsound fiscal policy which looks to the Customs as the main source of revenue. What a future would be before New Zealand did her people but realise the advantages of Freetrade ! This country was never intended to be a mere hothouse, maintained, at vast cost to the community, for a few sickly industries, but to be supreme in agricultural production. Her staple exports are capable of practically indefinite extension, and she should command the markets of the world. Were the ports free there would soon be no cause to complain of the scarcity of population or the slow progress of settlement. It would pay so well to cultivate the land that every acre would be occupied and made the most of. In 1886, when the previous census was taken, there "were in the Colony 2,268 industrial establishments, employing 25,655 hands. In April, 1891, 2,570 establishments, with 29,880 hands—an increase of 17| per cent. ; whilst in the interval between 1871 and 1886, under comparative Freetrade, the increase was 43 per cent. ; and this increase appears to have been steady year by year in proportion to the growth of population. Subsequently to 1888 there is to be observed a positive check, which can only be attributed to the effects, or the anticipation of the effects, of the tariff of that year. The value of the goods turned out in 1886 and 1890 respectively was £7,436,949 and £9,422,146. The great bulk of the industries are, and have been, on a very small scale, for we find that in 1886 26 establishments employed 19,895 hands, and in 1891 23,025 out of the totals given above. The increases have been almost entirely in meat freezing, preserving, and boiling down, and in flour mills—all being industries unaffected by the tariff There has certainly been a marked improvement in the agricultural implement business; but this had made good its footing previously to 1888, and the development, so to speak, has been natural. Coach building, especially favored by high duties, only shows an advance of 2 per cent, since 1886; whilst furniture - making has declined one-seventh. Iron and brass foundries have also retrograded. Sixtythree other classes of industries are represented by 442 establishments, employing G,885 hands, against 5,802 in 1886—an increase of about 14 per cent. Woollen mills, however, and boot factories account for 597 of the additional hands, leaving only 456 among the other 61 classes; and of these "employees, 146 are in biscuit factories and 83 in a sugar refinery. Tne four industries named paid, in 1890, £256,644 in wages, leaving only £166,111 to divide among 59 classes of manufactories in 364 establishments. Looking specially to certain highlyprotected industries, we find remarkable results. The clothing factories have increased in number since 1886, but they only employ 21 more hands; while the value of the output has steadily decreased. There were in 1886 20 fruit-preserving and jam factories, employing 216 hands, and a product valued at £38,292. In 1890 the number of factories was 15, with 117 hands, with produce valued at £27,256. Confectionary works show a snnll increase in number, but employed considerably fewer hands, with a slight increase in the value of produce. The new industries started since the last census include 8 saddlery and harness factories, with 184 hands; 3 paint and varnish factories, with 8 hands ; 1 textile bag factory, with U hands; 5 wooden ware factories, with 54 hands; and a number of others, carried on on a very small scale, employ between them 35 hands. The ' Trade Review' very properly concludes from these figures that verylittle real good has accrued from the imposition of a tariff "complicated, vexatious, and harassing in a high degree." Our contemporary proceeds to state, as the result of an inquiry specially instituted, that the mercantile houses in the Colony connected with the import trade- actually pay more in wages and salaries than the whole of the classes of industries carried on under the ajgis of Protection. " This is, of course, apart from " a large number of houses with smaller " establishments in other centres, and "the whole range of retail houses "who are importers, besides the "large shipping trade and other "interests connected with the import «teada" And yet, the 'Trade Beyiew' goes on to say, " for the sake of "endeavoring to foster a number: of

f' weakly hothouse industries the whole " mercantile classes are to be treated " as the enemies of the community; " while the manufacturer is spoken of "as if he were the only employer of " labor." As an illustration of the practical workiug of Protection in New Zealand, it is pointed out that " candle " factories have added five hands in five "years; and for this the whole population have had to pay |d per lb "extra for their candles. For the s'years 1889 and 1890 the extra duty f'paid on imported candles amounted "to an average of £2,384 per annum. "This is at the rate of £477 16s 8d " each for those five hands, who, how- " ever, earn an average of only £lO2 " 7s 3d ! "