THE TARIFF REFORM CAMPAIGN

Evening Star, Issue 14495, 21 February 1911, Page 7

THE TARIFF REFORM CAMPAIGN

ITS PRESENT POSITION. The following letter from Professor Hewins, secretary of the Tariff Commission set up by Mr Joseph Chamberlain, shows the progress made in Great Britain by the Tariff Reform party in the prosecution of their propaganda in favor of the establishment of Imperial Preference and Fiscal Reform : Sir, —In the course of political discussion we are apt to lose sight of the fact which, after all, governs the situation. In the history of decisive movements such as that which brought Freetrado into existence, and that which is now working for Tariff Reform, there is little evidence that the mere spasmodic incursions of politicians into the controversy have much effect one way or the other. The course of such movements is determined far more by industrial and commercial factors not confined to this country, which are brought home to ordinary men and women by their day-to-day experience. Mr Chamberlain’s speech of 1903, which initiated tho present phase of the Tariff Reform movement, was in fact related to much that had gone before. In the King’s Dominions outside this country, as the Tariff Commission has shown in its memoranda, there had been a steady and persistent movement in the direction of Preference extending generations, for, the economics of Freetrade notwithstanding, the Dominions never broke away from the F-nglish traditions and always retained that conception of organic unity which is the cardinal feature of tho Preference movement at tho present time. Hero in England inroads had been made on Freetrado doctrines by the criticisms of economists and the progress of social reform, trade unionism, cooperation, and other movements ; and long before the events of 1902 and 1903 changes in the fiscal system opposed to current doctrines had become inevitable. The question was whether these changes should take effect in tho practical application of Socialistic doctrines, which had boon carefully worked out and widely popularised, or whether wo should keep close to British tradition and restore to the fiscal system tho elements which the Freetrado extremists had managed to expel. It was also clearly seen that any extension of the system of indirect taxation must in existing Imperial conditions precipitate a movement for bringing tho United Kingdom into lino with the colonics in regard to Preference. —Canada’s Lead. — Subsequent developments have shown the accuracy of this analysis. Mr Chamberlain's courageous action was at once followed by an organised movement more rapid in its growth than any that had hitherto taken place in British politics. When Mr Chamberlain initiated the present movement Canada alone of all the Dominions gave us a Preference. Now every one of the self-governing Dominions has made Preference a cardinal principle of its policy, and, as the present situation in Canada shows, Preference provides the best means of securing their own industrial and commercial development, while also strengthening the organic unity of tho Empire. Moreover, the report of the Royal Commission on the Trade Relations between Canada and the West Indies indicates that Preference is the best available system for knitting colony with colony. The practice of Preference has also grown more and more in an Imperial direction. Thus, while Canada began with a flat rate of 25 per cent. Preference in favor of Empire products, in her revised tariff the Preference has been increased to an average of about 33 per cent,, and the rates of duty have been specialised to secure an exceptional advantage to particular British goods. The principle of an Empire free list has also been permanently embodied in her fiscal system. The other Dominions have followed suit. Turning to the home industrial side, it will be recalled that when Mr Chamberlain began his campaign there was a general disposition even amongst Tariff Reformers to accept the Freetrade view of tho effect of Erectrade policy upon British industries. But as industry after industry lias come under observation the crude application of Board of Trade totals to support the optimistic view oi British, industry has been discredited except in purely partisan circles, and no attempt is now made to contest the general soundness of Mr Chamberlain’s warnings as to the comparative decline of British industries. The fiscal controversy has, indeed, brought into clear relief tho insular insufficiency of the United Kingdom to cope with all the problems which rest upon tiic possession of greater comparative resources. —Effect of a Campaign.— In contrast, take the West Riding. where l the industrial conditions might be supposed to he more favorable to the Tariff Reform campaign than in Lancashire. There has been an improvcim-i,i in tho votes recorded far Tariff Itolorm. but that improvement has not go no 1a enough to lead to the transfer of any swats’to Tariff Uofminers. The explanation is to be found in the absence in Yorkshire of a Tariff Reform campaign at all comparable with that in Lancashire, Where Tariff Reform has been most emphasised there the change has been most decisive. Again, in the rural counties, where the campaign has been carried on over an even longer period than in Lanca shire ami T aiiif Reform vote is pre dominant, and actual experience show.that obstacles attributed to vague cries about food taxes have been more than counterbalanced by the presentation of a constructive policy for agriculture, linnet result of the movement so tar as it is measured by votes is that 48 per cent, ol the total electorate of the United King dom voted for Unionist and Tariff Reform candidates, while of the 52 per cent, who voted for the Coalition a large number, as, for instance, _in _ Ireland and amongst British trade unionists, aro not hostile to Tariff Reform. —Retrospective.— Glancing back over tho whole field, what impresses the observer most is tho con tinuons growth of opinion in favor ot Tariff Reform. It has acquired such a momentum that nothing can now proven; its ultimate adoption—a momentum duo to tho realisation of the inadequacy of Freetrade to tho needs of the United Kingdom and the Empire. Tho determining 'factors to which I have referred arc in the nature of the case certain to be come more numerous and more insistent. They will not be met by tho introduction of one comprehensive measure at some one groat dramatic moment of time. The critical step will necessarily bo the first Unionist Budget—that is to say, tho first Tariff Reform Budget. But, just as it took many Budgets and many other measures to fully establish what is called Freetrado, so now the effective establishment of a new fiscal system will involve a series of successive and related measures of organisation. And this series of measures can only bo carried by fully responsible Ministers acting as they have always acted, not by the methods of primitive democracy, but with the complete authority conferred by tho English system of representative Government. —Last Relic of Freetrado.— Similarly with regard to the necessity for tariff negotiation with foreign countries, recent treaties with Roumania, Sweden, Servia, and, still more lately, representations to Franco and Japan, prove unmistakably that the automatic operation of meet-favored -nation treaties is less advantageous to British trade than direct negotiation. With the destruction of tho Freetrado illusion as to Die effect of tho mosb-favorod-nation clause goes the last relic of Freetrade principles as they were accepted by our grandfathers. Mr Lloyd George’s Budget, so far from safeguarding the Freetrade position, is its formal surrender. He has abandoned the principles of Pitt, Husk icon, Cobden, Peel, and Gladstone in favor of those of Mr Kcir Hardie and Mr Snowden. Whether tho revenue obtained by his Budget is “sufficient” depends entirely upon tho view taken of the necessities of tho country. Only by blinding ourselves to our real national and Imperial needs can we suppose that these new methods will provide tor the large measures of social reform long overdue, increased naval expenditure, more generous provisions for education,

the development of agriculture, industrial insurance, and other great objects of public policy upon which all parties aie more lor less agreed. Tho realisation of these permanent factors in the fiscal problem has steadily advanced under the prac-tical-experience of business men and the working classes, coupled with the persistent education of tho people by tho Tariff Commission, Tariff Reform League, Women’s Tariff Reform Association, and the general political associations. —Tho Lesson of the General Election.--In illustration, take the recent election. The results in the Lancashire and Cheshire area stand out over and above the smaller fluctuations which arc incidental to every general election. Taking contests, 18 Unionist seats became 26, 46 Coalition seats became 38, and a Coalition majority of 74,000 fell to 24,000. Nor is it without significance that three of the Lancashire seats won by Unionists were previously held by Labor candidates. Now, it is in this Lancashire area that tho most vigorous Tariff Reform campaign has been in progress since the election of January, 1910, and it would be easy for those responsible for tho movement to make a day to-day recoid of tho progress made, of difficulties overcome, and gains secured <m the side of Tariff Reform, so systematic ■iid so regular has tho campaign been. And it should be noted that the Lancashire campaign has been particularly aided by recent commercial developments, such as tho now Japanese tariff, which has brought home to Lancashire men more Rian any other recent event the growing instability of the conditions upon which they hold their trade.