THE New Zealand Herald. AND DAILY SOUTHERN CROSS. SATURDAY, JANUARY 6 1894.

New Zealand Herald, Volume XXXI, Issue 9401, 6 January 1894, Page 4

THE New Zealand Herald. AND DAILY SOUTHERN CROSS. SATURDAY, JANUARY 6 1894.

The news from the United States by the mail is important and interesting. The great Republic has taken the first steps towards the cancellation of the vast system of protective legislation which has been created, but what is now taking place shows how great may be the difficulty of regaining a sound and reasonable position, and what loss and suffering may attend the process.

The Act inforoing the purchase of silver by the Treasury from the mines at much greater than its market value has been repealed. One would have thought that the ruinous folly of this measure would have been so amply demonstrated that the resistance to the repeal would have been slight. But in reality it was very great. Rich interests count for much in America, and the plunder of the public treasury is a familiar spectacle. The silver interests mean several States, and by interfering with their monopoly President Cleveland and the Democratic party have made enemies of them for ever. And not only are rich mineowners affected. The existence of the Silver Purchase Act kept mines working that should have been closed, and of course all the men employed strenuously resisted the repeal. One invariable effect of doing an economic wrong is to erect a power hostile to a return to safe principle. Another effeot is, that to enter again upon a right path means a very large amount of suffering to all concerned. President Cleveland has shown what amounts to heroic firmness for an American statesman, and should be held in honour for it all over the world. When a deputation of his own party, the Democrats, waited upon him during the silver discussion complaining that the conflict would disrupt the party, he replied, " I should not care if it lost every State in the Union to the party; this is not a question of politics, but of finance,"

And now the President is in difficulties about the Tariff Bill, and these threaten to be very great. In his message to Congress he says " While we should staunchly adhere* to Ice principle that only the cecsaiity of revenue justifies the imposition of tariff duties and other federal taxation, and that they should be limited by sibrict economy, we cannot close our eyes to the fact that conditions have grown up among us which in justice and fairness call for discriminating care in the distribution of such duties aad taxation as the emergencies of our Government actually demand." The Wilson Tariff Bill, which it is proposed shall come into effect on March 1, substitutes whenever practicable ad valorem instead of specific rates. It enlarges the free list, particularly as regards what the committee class as raw materials; of manufacture, in which are included wool, coal, lumber, salt, and iron ore. The sugar tariff is reduced, and provision is made for the gradual extinguishment of the bounty now paid. Finally, in most of the schedules, there are a number of reductions of rates. Sawn timber and boards are free, and the rate on manufactures of wood is reduced from 35 to 25 per cent ad valorem. Fruit, eggs, and like products are free, « Cotton manufactures are substantially reduced, especially cheap cloths and prints. A sliding scale has been made reducing each woollen duty five points in five years. 1 The new woollen duties take effect on July 1. Flax hackled, known as " dressed line," is, reduced from 3c. to ljc. per lb. Hemp rated at 25d015. per ton under the present law is made free. Hemp hackled is reduced from 50dols. per ton to lc. per lb. Mr. Wilson, the author of the Bill, estimates that it will decrease the revenue on the basis of the importations of 1892, A cable message in yesterday's paper.in-, formed! us that to recoup the Treasury to some extent it is proposed that a tax of 2 per cent, should be imposed on all incomes of over 4000 dollars (£800) per annum, also a similar tax on the net earnings of all corporations. But the autumn elections have shown decided gains for the Republican party, and although these do not alter the position of parties in the Legislature, they are very discouraging to the tariff reformers. All the northern States have been carried for the Republicans where there was cray active conflict. Pennsylvania gave 138,000 Republican majority, Ohio 35,000, Massachusetts 35,000, lowa 35,000, and the Democratic supremacy was overturned in New York and New Jersey. The causes of this chancre are pretty dear. Trade and commerce throughout" the

States are - ill'?» wry " bad condii tig* ; and the cry V r*mi that it -is J all owing to the * nff reformers, who are unsettling ever /-. thing ~by i the oha»g®B; they propose, The tariff uncertainties, it was claimed, vera the chief reasons why mills were stopping and merchants curtailing their business; that, i while there was continual fear of tariff- changes, nobody could safely ooadcjot business. Engagements cottld not be made nor goods ordered alwad for fear a reduced tariff would destroy all chance of profit. The Republican opposition to the tariff reduction will be strong, and' they will report to ever expedient to resist the measure in Congress. "" They will have the assistance of - the " Silver party,. who are anxious to avenge their recent defeat. The difficulties to be overcome are enormous. ' ~ We need scarcely say that we sympathise strongly with President Cleveland and the Democratic. party, By moving in the direction of free trade they are following sound economic policy, and acting for the benefit of the whole people, as against the monopolists, who have ever exercised such baleful in* fluence in the States. But we have a much closer interest than this. The adoption of such a tariff by America would mean the commencement of a commerce between ; that country and New Zealand, which would be of immense benefit to us. The San Francisco mail service was established 20 years ago to foster trade. In that respect the line has been a failure, and in consequence has been maintained with much difficulty, and at considerable cost to us. Now there is a chance that it will vindicate itself, and be the means Of muoh benefit to all concerned. ' ■ ■ ■' <'