[ESTABLISHED 1875.] Manawatu Daily Times The Oldest Manawatu Journal. PUBLISHED EVERY MORNING. THURSDAY, APRIL 10, 1913. NEW AMERICAN TARIFF.

Manawatu Times, Volume LXV, Issue 1892, 10 April 1913, Page 4

[ESTABLISHED 1875.] Manawatu Daily Times The Oldest Manawatu Journal. PUBLISHED EVERY MORNING. THURSDAY, APRIL 10, 1913. NEW AMERICAN TARIFF.

England is apparently very much alive to the probable effects on trade of the new Customs tariff proposals of the United States. The impression is current that certain manufactures of Britain, paxticularly clothing, will find a ready market there with the tariff barrier removed. ! The Daily Telegraph, we notice, j predicts equalising economic results, ilt predicts that with the reduced j cost of living in the United States I through the free admission of foodi stuffs, there will be a corresponding ■' cheapening in production of manuI factures. This in return will lead to 1 the development of America's export I trade and increase her competition !in the world's markets. The advantages that Britain would gain would thus in time be neutralised. It is S impossible, however, in the space of a brief article to pursue thesa I probable economic effects npon the j world's trade and upon America's industries, though the subject offers | an extremely interesting study. But j in passing it is worth noting the ' Daily Telegraph's prediction as to the probable cheapening of the cost of production in the States. This cheapening will come through the reduction in the price of raw mate- , rial, but if the cost of living is I lowered there may be a tendency to | reduce wages. Rates of wages are ] extremely high in America at pre- ' sent. If reduction in wages is i attempted we have to consider the probable effects on the industrial , circles. How will the powerful

labour organisations receive any such suggestion? America certainly would pass through trorblous times until equilibrium was attained. But the most momentous aspect of the new Tariff Bill is the probable effect on the Australasian trade. British newspapers predict enormous trade avenues for our raw materials. Canada, of course, will be the natural source of supply of food stuffs, but (Janada, we know, has little to spare in those articles which we chiefly supply. There is therefore an undoubted opening ahead for our butter, meat, and cheese. At present our export trade with the United States is not very great. In 1911 it aggregated £434,000 though it has previously reached £714,000. But (excluding Australasia) it ranks next in importance to our trade with Britain, which in 1911 was fifteen millions sterling. It is 2.28 per cent, of our total export trade. We sent to America butter valued at £8658, kauri gum £209,000, phormium £19,242, sheepskins £89,256, wool £96,000. These are all lines easily diverted. The wool tariff of course is being dealt with separately under special legislation. It is obvious that promising times are ahead of this colony. Fresh markets are opening ia Europe as well as in America. The increased competition will enhance prices. Early effects may be disastrously felt in England, where prices of foodstuffs and raw material will rise, but the history of economics teaches that in such instances compensating influences soon restore normal conditions.