THE TARIFF IN RELATION TO INDUSTRIES.

New Zealand Herald, Volume XXV, Issue 9088, 23 June 1888, Page 6

THE TARIFF IN RELATION TO INDUSTRIES.

[By Enlim.]

In a previous communication I called attention to the very serious effect produced upon trade by the increase of our tariff in 1879 from a 10 per cent, ad valorem one, at which it had stood for many years, to a 15 per cent. one. In 1878 the population, including Maoris, was 475,338, and the imports £8,755,667, producing in duty £1,344,943. In 1887 the population is given as 645,330, and the imports were £6,245,515, producing in duty £1,280,586. Had the imports kept pace with the population, even taking into account depreciated values ruling at present, they should not have been less than £10,000,000. This difference of three and three-quarter millions Hterling less trading wo have done with a continual increase of our expenses, and the two combined are largely responsible for our present depression. Had we purchased this extra quantity of goods without increasing our borrowing it would have stimulated industry all over the colony to produce something to pay for these extra imports. Let us look at our neighbours. Victoria, which is always lauded for taking care of her own industries, increased her imports from £16,160,000 in 1878 to £18,530,000 in 1886 ; New South Wales from £14,768,000 in 1878 to £20,973,000 in 1886 ; Queensland from £3,080,000 to £6,103,000, whilst South Australia decreased from £5,014,000 to £4,852,000. It is rather remarkable that the two colonies which have most to say about depression, and have felt it the keenest, viz., New Zealand and South Australia, are the two which have gone back in their external trade. It is known that New South Wales suffered enormously three or four years ago owing to the protracted drought, which destroyed enormous flocks of sheep numbered by millions, yet she has been able to recover, and is still leading in external trade. Things are improving in South Australia, but not in consequence of her largely-increased tariff, but from better harvests and larger yield of corn. * #

In order further to illustrate the effect increased duties have on imports I give the following table of values of imports and duties produced at the two periods of 1878, the last year of a ten per cent., and 1887, the last of a 15 per cent, ad valorem duty.

Totals .. £2,793,595 £300,873 £1,490,820 £236,302 My idea in compiling this list was to take the articles chiefly affected by local industry. I do not put it forth as a complete one, but taking only the principal industries. There are many lessons to be derived from a study of it. It will be seen that it just about accounts for the difference, viz., £64,357 of the total produce of the Customs in 1878 and 1887. In some items, such as silks, which are not manufactured here, it shows the effect an increased tariff puts on consumption. The great economical lesson which consumers will learn is this—that the increased population of 1887 would consume in the aggregate at the least as much as the lesser jxipulation of 1878, that is they would use up £2,800,000, value of these articles. The difference between those imported in the two periods, viz., £1,300,000, represents what local industries have supplied, by which the revenue has suffered to the extent of £200,000, which amount consumers have had to pay an extra value extracted by manufacturers, without giving an equivalent. I do not wish my argument to be understood that I am opposed to local industries. This is I not so. I should like to see as many estab-

lished as possible, bub on the sound basis that they pay their own way, and not rely on tarifts to raise the price of their productions. There are two or three other items taken from the imports of the two periods which show the stimulating effect of abolishing duties or lowering the tariff which I here give :— L ; . 1878. 1887. • Imports. Duty. Imp Duty. * Carriage materials £7,423 ; £742 £12,946 made free Cotton goo .. 112,085 13,671 182,838. made free 18,157 £2,818 Sugar, at Id pro- At Ad produced cfuced duty .. 128,205 duty 107,014 Tea, at 6d pro- _ At 4.1 produced duced duty ■.. 72,417 duty SO,-o4

I do not think anything can be more convincing than these figures to show that free imports and low duties stimulate consumption., What it seems to me, Sir H. Atkinson required, in order to produce a tariff to suit the circumstances of the country, was a sort of sheet anchor tax, to produce certain from £100,000 to £150,000 a year, and that, I think, might easily have been supplied. Then relying on this he should have boldly gone in for a 10-per-cent. ad valorem. That, I think, would have extricated him from his difficulties, and at the same time stimulated all the industries in the country worth stimulating. Such a bold step would bo worth making some sacrifice to accomplish, and would have rallied his best supporters round him, instead of which he has elected to put the largest industries in a strait jacket, and has put them to work in that form.

Tariff of 1878. Tariff of 1887. Articles. Pop'tion 475,338. Pop'tion 645,330. Apparel and £ £ £ £ slops .. 252,731 25,845 169,186 25,952 Beer .. 115,186 29,267 61,086 22,314 Boots and shoes .. 231,044 21,281 159,275 15,720 Brassware .. 5,857 586 1,802 275 Brush ware and combs 19,634 2,004 7,145 1,109 Candles .. 103, 11,947 28,599 8,140 Carpets and druggets .. 43,553 4,260 17,498 2,647 Carriages and carta .. 13,228 1,322 4,145 622 Drapery .. 1,223,947 122,054 685,018 102,585 Furniture .. 85,494 8,525 32,441 4,992 Hardware and iron .. 295,383 29,591 128,547 19,308 nats <fc caps 68,094 6,812 28,475 4,290 Hosiery .. 32,299 3,284 39,778 5,921 Hops.. .. 17,083 4,204 2,596 1,283 Jams & jellies 44,660 5,894 7,326 2,425 Saddlery and harness .. 72,386 7,316 19,928 3,052 Silks.. .. 32,541 3,252 7,342 1,109 Woollens .. 108,424 9,829 79,806 12,033 Win. blankets 28,783 3,620 16,827 2,525