THE FEDERATION COMMISSION

Lyttelton Times, Volume CV, Issue 12422, 11 February 1901, Page 4

THE FEDERATION COMMISSION

The Federation. Commission is yet young, and generalisations as to the evidence Sfc has heard are therefore hardly warranted; but judging from, the statements made by Mr A". S. Peterson, a well-known merchant, in Dunedlin on Saturday, we should say 1 hat the desire* of commercial men to see New Zealand joined with Australia is only half-hearted. Mr Paterson admitted, fou instance, that reciprocity between the Commonwealth and New Zealand would give us all the benefits of Federation. These, front to point of view, are purely commercial. He is attracted »y sfahe prospect of having another four millions of people to trade with, and he seam's to regard Australia solely as a market. Tuese is a tendency on the part of some exporters to ignore the fact that our own markets Would be thrown open to Australians, and that for every pound's worth of produce> we sell in Australia we shall probably buy a pound's worth of manufactured goods in Melbourne or Sydney. Mc Patersoni did adtrrtifc that Federation would tend to cause a levelling of wages as between New Zealand and Australia, but "he did not think the effect, would be serious in the long tub." We may as well look this question fairly in the face. If there is any levelling at all, it well be down and mot up. From the point o'f view of the local consumer, therefore, tie prospect Is not a pleasing one. The price's of coal, of wheat, of tea, of sugar, and of tin© necessaries of life generally are mot likely to ifall to any great eitent, and unless the cost of living is reduced l a decrease in wages would be disastrous. The President of the Dunedin Trades and I/about Council, who also gave evidence on Saturday, expressed what we believe to be the general opinion of the workers, of the colony when he declared that Federation would mean the reduction of wages. He did not diWus® the probable effect of our union with Australia, upon the special conditions created by our j labour legislation, but there is little doubt ! that the wh'ole basis of our industries would have to be reviewed. At present we are a small self-contained community, and the ■difficulties that have occurred in the working of the Conciliation and Arbitration Act and isiniilar mea Hires have been easily adjusted ; but when our labour market is subject to the influence of conditions ruling en Sydney and Melbourne, the problems that arise will not be capable of such ready solution. Australia, for 'instance, already 'has a considerable alien population, and our workers will hardly regard with equanimity the prospect of competing with the Queensland Kanaka or the Melbourne Chinaman. The great question upon 'which we are in need of guidance can be very simply .stated. If we find a market for oun produce in Australia, will we not dn turn be asked Ito supply a market.for Australian manufactured goods? And will not the advent of Australian' articles compel us to readjust the relative proportions of . our manufacturing and producing populations? Thus far the commercial aspect of Federation has occupied the greater part of the Commission's time ; but we must_ not forget 'that a large number of important political questions have still to be discussed.