THE New Zealand Herald. AND DAILY SOUTHERN CROSS. TUESDAY, AUGUST 6, 1889.

New Zealand Herald, Volume XXVI, Issue 9436, 6 August 1889, Page 4

THE New Zealand Herald. AND DAILY SOUTHERN CROSS. TUESDAY, AUGUST 6, 1889.

As we have never been of the number of those who contend that the best way to enrich the country is to enter into a war of tariffs with our neighbours, we are at liberty to express regret at the ciction of Victoria in raising the duty on certain articles which we export largely with the deliberate and avowed intention of excluding New Zealand from its markets. The Protectionists have been successful "ill New Zealand, and Sir H. Atkinson accepted a tariff which had been drawn up for him by a committee of the Protection Association, of which Mr. H. M. Shepherd, of Auckland, was the chairman. The history of the late tariff changes in Victoria is, we are sure, amusing to everyone, as an exhibition of almost incomprehensible childishness— r it would be purely comical if it did not show that people in the nineteenth century were more foolish than their forefathers six generations ago. Last year we had a Great Exhibition in Melbourne. The purpose was, that each colony should be able to show to all her sisters her natural products— what she was specially fitted by Nature to produce which might be made matter of exchange with other colonies to the mutual advantage. New Zealand was invited by the Government of Victoria to show what she could do in every department. Her manufacturers were specially called on to exhibit. They did so with pardonable pride. Our woollen manufacturers made a strong display. The Mosgiel Company in particular went to a great expense in order that the goods the} 7 made might be seen in Melbourne, in order that they might push their trade, and have an export market for their goods. They were successful. The woollen manufactures of New Zealand were acknowledged to distance all competitors. We have, it would .seem, special advantages in the manufacture of certain classes of woollen goods. We have more suitable wools, and have better water to work with. At all events, New Zealand got great kudos, and not a few first-class prizes, testimonials that our woollen goods were superior to any that Australia could produce. Asa consequence of all this, New Zealand goods began to come into consumption in Victoria, notwithstanding that there was a duty of 15 per cent, against them. The Geelong manufacturers at once took alarm. They went to the Government, and demanded that in the new tariff a prohibitory impost should be put upon New Zealand woollens. If the Premier could have said what lie thought he would have replied to their request thus :— " The manufacture of woollen goods was protected in Victoria ' to give the industry a start.' It was said by yourselves that you did not ask for permanent protection, that all you asked was protection for a few years till you had got your establishments going. You have had protection for many years, and your industry is as thoroughly established as ever it will be. To increase the duties to a prohibitory rate against New Zealand is simply to give you a monopoly of the Victorian market, to do what you like with. We got up an Exhibition at an enormous cost, which has been a dead loss to the colony of more than £200,000. The object of that Exhibition was that it might be found what each colony surpassed in. New Zealand has shown that in certain classes of woollen goods it excels you, notwithstanding that you have been running for years, and have had substantial protection. It is surely the height of absurdity for us to call for a competition, to praise and give prizes to the winner, and then to pass a law excluding all his manufactures from our markets." This is what the Premier should have said, and is probably what.lie thought ;. but the effect of what he did say was : —" Yes, those New Zealanders no doubt pan beat you, and if allowed to send t' sir goods here, even with the present protective duty, would take a considerable portion of the trade. They must be excluded, and therefore the Government will impose a duty of 25 per cent." Can anything more absurd be imagined than the holding of exhibitions, when the sole and entire effect is that, when a colony shows its superiority in any particular class of manufactures, the others straightway specially prohibit that class of article from entering their borders 1

Before leaving the matter of Exhibitions we may refer to a telegram in our Saturday's impression which shows that this aspect of the question is attracting attention elsewhere, as well it might. The Government of New South Wales has been asked to take part in the Exhibition to be held in Dunedin, and has consented to show. The Sydney Daily Telegraph is quite sarcastic on the subject, and considers it a mere farce on the part of New South Wales to exhibit. It says : "We are New Zealand's best customers, and yet the deliberate policy of that colony is to exclude our produce. New Zealand protects itself against New South Wales, yet a weak Government has promised to contribute to Mr. Twopeny's Exhibition." New South Wales is as yet a free-trade colony, and last year took an enormous quantity of our produce. As a matter of course there are many people in New South Wales to whose interest it would have been that all New Zealand produce should have been shut out. They are agitating for protection and they play upon this string, that New Zealand excludes them, and that therefore they must retaliate, if only for the purpose of bringing New Zealand to its senses. They will probably be successful; and where will New Zealand be 1

But besides woollen goods there is an. article of New Zealand produce which must be excluded from the Victorian market, namely, oats. We have not the complete figures before . us, but probably value of this article exported during 1888 was of the value of £330,000, most of which went to the Australian colonies. A few years ago it used to be a common joke in Otago and Canterbury, when a farmer could afford to have a liquor at a hotel, for him to say " Here goes a bushel of oats !" the price then being about 10d or Is. Recently we have been getting 5s and 5s 6d a bushel in Australia for our oats. We have been paying our indebtedness in London by our sales in the Australian markets. But apparently a stop is to be put to that. v ictoria cannot grow oats to compete with New Zealand. The South of this colony is one of the best oat-growing districts in the world, while no part'of Australia is at all suitable. But a number of the farmers grow an apology for oats, and they go to the Victorian Premier and say : " We cannot stand this competition from New Zealand any longer.

You protect ail ' •and We demand thatfrffifejj culture, which is at fhe ~ bask % gn, industry." The Preirg should W said : «It is quite grow thatabsolutenece&ty Jtfl * not times the crop is almosttottl f e ' At the best of times, yield A' 6' toria is absolutely tribal com k \ with New Zealand, whilf tt 6 quaffs the.article you p'roduc, £ **$ put side by side with that from V* sister colony. Under these S r ° Ur stances does not plain ;ornmon ** dictate that you should employ v land, your capital, ; and ;ur labours something in which" yoi have arkV tages over New Zealand, or areV ' nearly on a level, and alley the nenn' 6 of Victoria to get good oa* at a cl, P ,* rate i Protection was mean-/to give industry a start; protectioi wasmoaS to give our people a.begin i ri w i" the colony was naturally fited for "t was not meant to create here exot industries, or to stimulate the culti™ tion of crops for which ourclimate a soil are not suited. It will b> absolut ] ruinous if we commence,;, war v'h Nature." But instead of tiat ] )e K av the growers of oats all thy wanted The duty was 2s per 1001b which h< increased to 3s per 1001b, an! this it'! believed, will effectually "do for"'\o' Zealand. • ' w

Now all this is not for revenue nu r poses. Victoria has a surplus. In jLi ing with the revenue it gives -in J vantage to foreigners for the ev>r e -' purpose of doing an injury to &* v Zealand. Victoria has made itself » markable for its anti-Chinese Wul "I tion. While they raise the dutv oi such articles as woollens and oats to the purpose of excluding New Zealand from their trade, they reduce the duty on tea from 3d to Id. The duty 0.1 coffee was formerly 3d per lh; now it is to be admitted free of duty. $q\ further to "smash New Zealand "the duties on all kinds of dairy produce ate to be increased.

And yet we are holding anexhibitior where all the colonies are to show theii produce! Well may the Sydney p,W exclaim that the whole thing is a faro in tlie circumstances. Hitherto the* exhibitions amongst us have resultet not in the promotion of mutual trad/ but in its stoppage. The Victoria/ have used theirs, not that they mis]; see in what their neighbours excelfe and thereby improve their own man i facture. Ihey have simply watched b see in what the other colonies wen better than themselves, and then Itavi immediately excluded those articles b law. Undoubtedly we shall do tfe same. There is absolutely no hopq oi amendment. * i We see that the cry has already lien raised that the Government oughj ai once to adopt " retaliatory measure.' 1 In this enlightened age we are reduced to this pitiful kind of talk. In short we must go to war—virtually war, just as much as if each colony maintained armed cruisers to blockade the enemy's ports. It is difficult to see how we an to adopt " retaliatory measures 1, coif sidering that on all the articles we import from Victoria we levy the highest duty possible. We have had a year of trade with Australia, and liavi reaped handsome profits; apparent!} it will be our last chance. We mar re taliate, of course, if we can find any thing to retaliate upon, but with oil! own tariff, which may be roundly stated as placing a duty of 25 per cent, on every; thing, and a primage tax of 1 per cent! in addition, we cannot say a won} against the policy of Victoria,