Hawke's Bay Herald. MONDAY, NOVEMBER 24, 1879. THE CUSTOMS TARIFF.

Hawke's Bay Herald, Volume XXI, Issue 5545, 24 November 1879, Page 2

Hawke's Bay Herald. MONDAY, NOVEMBER 24, 1879. THE CUSTOMS TARIFF.

No part vi the Colonial Treasurer's financial proposals will bo regarded with more widely varying views by different people than will the suggested alterations in the tariff. The Custom-house lias from time immemorial been the first resort of distressed financiers* Customsduties are so indirect in their operation that they are after a time hardly felt. When sugar or any other commodity is suddenly raised a penny or twopence a pound, house-wives have their growl, but they soon become accustomed to paying the increased price, and forget that it is due to import duties. It is different with a direct tax, which is demanded from everyone each year or half-year. The sum is required " all in a lump," and the taxpayer growls and grumbles as often as he has to pay. A penny paid on lOOlbs of sugar, and twopence on 701bs. of tea in a year would amount to £1, but it would have boen paid in driblets, and would not be felt as would a demand for the £1 all at once. This accounts for Major Atkinson's proposal of an increase of Customs duties, and if this were the sole reason actuating the changes proposed, the only question to be considered would be wb ether a direct tax would not be better. The Colonial Treasurer, however, tells us distinctly that he has another object in view in re-arranging the tariff. This is to protect and encourage local industries. Put simply, he wishes to take the first step in the direction of a Protective tariff. It is just as well that we have this assurance, for without it we might have come to the conclusion that Major Atkinson's object was to harass local industries. He uses the words <( local manufacturers," but he appears to consider that our manufactures are confined to the making of saddles, buggies, and cakes with almonds in them. First we are informed that " the Government proposed to admit many articles free, so as to encourage local manufacturers as much as possible," and with this view they propose to remit the duties on " carriage makers' leather, buggy shafts, bent carriage timber, hickory, hatters' material, fine wire for brushwork, sheet zinc, plain galvanised sheet iron, sulphate of soda, almonds such as are used in confectionery, phosphorus, and oil of rhodium." This is the whole list. Our carriage-makers tho doubtless appreciate tho remission of duty on the articles used in their trade. But how about the local ironfo under who makes some of the carriage-makers' ironmongery ? How about the leather tanner P How about the timber-getter and saw-mill ! proprietor? What is protection for the carriage-maker is the opposite for them. We arc not finding fault with the remissions on principle, as we look at them as really steps in a free trade direction, theugh it is questionable whether it is wise to remit any duties just now. But it seems curious to "protect" one trade at the expense of two or three others, and, as Major Atkinson specially says he has protection in view, his action is somewhat extraordinary. It is, however, illustrative of the difficulties of Protectionists. What is raw material to the coachbuilder and saddler is manufactured to the ironfounder, the currier, and the saw-miller. Again, what is raw material to the ironfouuder is manufactured to those who seek to xitilise our iron deposits. The Colonial Treasurer next increases the duties on a large number ef articles — almonds, nuts, chaff, corks, dried fruits, fresh fruit (other than oranges and lemons), window£glass, grain and flour, malt, split peas, hops, iron (fencing), tanks, matches, and vestas, preserved milk, nails, perfumery, patent medicines, timber, salt, stearine, spirits, tobacco and cigars, wines, and all goods at present charged with ad valorem duty. Here again the information that the c'lange is to encourage local manufactures is necessary. If we can grow nuts or dried and fresh fruits with a protective duty we can grow them without, and a merely protective duty is absurd ; but as these articles are all more or less luxuries they may be fairly taxed. The duty on window glass, corrugated iron, nails, and other building materials is largely increased, and this must make the erection of dwellings moi"e expensive. With the increased cost rents will be increased. These articles cannot fairly be classed as luxuries, nor can the duties be defended on Protectionist grounds, for no one can pretend that we can compete with imported glass or nails or galvanised iron. The re-imposition of the grain, flour, and timber duties is pernicious or useless — one of the two conclusions is inevitable, If the duty in-

creases the price of the arttetes ft Is pernicious ; if it does M\ increase the price it is usdoSs. There is no objection to the on malt or hops. The re-imposi-tion of the duty on fencing wive will tell more heavily on the smalt iiolder 'tW on '. the large. oii^ because oii small 'holdings there is far m<6re fencing iii proportion to j the area. Matches and vestas nrast be imported, and the high rates of freightage for this class 6f gdods make them in- I sufficiently dear without an increased ! import ditty. Perfumery is a luxury j fairly taxable, and the duty on salt will still leave it sufficiently cheap\ None of these duties, however, will encourage local manufactures. The increase in the '. tobacco and spirit duties will perhaps cause more controversy, th^in any other 1 of the tariff proposals, and .already petitions against the increases are being signed and forwarded to Wellington.. We are amongst those who think that luxuries should be made to contribute largely to the revenue, and if any of the proposed tarift' changes are justifiable those are the increase in the tobacco and spirit duties. The Colonial Treasurer, however, might just as well have considered the subject a little more, and imposed a duty more readily calculated oil the selling price of the articles. A shilling a pound on tobacco means that the public will be charged a penny an ounce more, Or sixteenpence a pound. The revenue might fairly take fifteen-pence of the increase, and leave the other pennj' to the tobacconist, to make up for any diminution in his sales. The duty on patent medicines is essentially a tax on the poor man, foi 1 of the wealthier classes ever purchase them. And then Major Atkinson makes a huge sweep* and proposes to add 50 per cent, to all present ad valorem duties. This means taxing drapery, ironmongery, and food-stuffs too numerous td mention. The price of living, already so high; will be increased about four per cent, by all those duties. Cannot some easier and readier and more fairly adjusted method of raising the revenue be suggested ? AnY income-tax, which Major Atkinson re*J jeets, would, in conjunction with thej property-tax, supply the deficiency. An income-tax would fall ority On those whose incomes exceeded a fixed limit. It would make cveiyono pay in proportion to their means of paying. Four-fifths of the increase in the Customs tariff will fall upon the working-classes, who are now taxed far more in proportion to their means' than is the rich maii. Ah income-tax would fall solely xipon those able to pay it, and the incidence of taxation would be fairer and more equal.