THE New Zealand Herald AND DAILY SOUTHERN CROSS. SATURDAY, MAY 11, 1895.

New Zealand Herald, Volume XXXII, Issue 9817, 11 May 1895, Page 4

THE New Zealand Herald AND DAILY SOUTHERN CROSS. SATURDAY, MAY 11, 1895.

«fr. It would be rash to hazard any prediction as yet as to whether Mr. Reid, the Premier of New South Wales, will be able to carry the very extensive scheme of tariff reform which he has laid before the Legislature. He has several interests and sections to deal with, and especially a labour section, who have certain objects in their view, f and who do not see that a wholesale abolition of customs duties is all in their interests. Mr. Reid will also have against him, as a matter of course, all those who have been placed in such a position by the tariff that their interests are opposed to any change. There can be no question, however, that Mr. Reid has placed his fortunes on the hazard of the greatest reform that has been proposed in the colonies. He lias shown an example to all colonial statesmen. As a rule they pother along, looking at this interest and that interest, watching "how the cat will jump," sitting on a rail, so as to fall off on the side where they will secure office. Mr. Reid has proposed a really great reform, and if he is successful in getting it brought into practice the result will have momentous consequences. It will rescue New South Wales from all financial embarrassments, and give it a tariff which will need no further tinkering. Thus every industry in the coun try will feel secure from interruption and change. These industries will be based on a natural growth and a natural demand, and will not merely be creations of the tariff, and dependent on the maintenance of certain rates of duty. And the example of New South Wales must in time be followed as far as possible by all the other colonies of Australia, whoso tariffs are at present destructive to the growth of industries. Even Victoria, which clings to high tariff, has recently had to acknowledge that the policy has been a mistake, and to propose various modifications, If Mr. Reid is successful, we have no doubt that within a year or two, the Victorian Premier will follow his example. The difficulties of Mr. Reid'a position are increased by the fact that he ha?! to remodel tin; tariff, and remove a number of duties, and at the same time has to deal with a serious delicit. But he bravely grapples with the problem, and so far as we can judge from the details given in the cable message, his proposals are adequate in both of the directions which he has to take. Formerly, New South Wales was in | the main a colony, but uudcr

the administration of Sir George Dibbs a protectionist tariff was constructed. Mr. Reid proposes to abolish the whole of these duties on the Ist of July, thereby sacrificing revenue to the amount of £555,000. It is intended to replace this by a hind tax of Id in the pound realising £400,000, and an income tax with exemption up to £300 —realising £180,000. The duties imposed by the old tariff, in force before the Dibbs changes, are to be retained till June, 1890, after which these are to be removed with certain exceptions, which are to be gradually abolished. It would, indeed, be a blessed thing for New Zealand if we could at once follow the example of New South Wales, and rid ourselves of the incubus ot our oppressive and cumbrous tariff. But New South Wales can afford to sacrifice £555,000 of Customs taxation at once, and another large amount in the future, and more than recoup the loss by direct taxation, New Zealand had to impose a greater amount of direct taxation, while at the same time she had actually to increase the Customs. At the present time a Tariff Commission is taking evidence all over the colony. In all probability the changes they will recommend will be in the direction of increasing the taxation, But, at all events, it will bo impossible for them to materially reduce any of our duties, because the colony cannot afford, even temporarily, to give up any revenue. In the reform of the tariff in England, the loss of Customs revenue was made up by direct taxation, and the result was a splendid one. New South Wales aims at following this example, and if Mr. Reid can carry his plan through, he will have achieved a great work for his colony. With such a tariff as Mr. Reid proposes, New South Wales will soon be far ahead of all the colonies of the Australasian group. The new system will stimulate the commerce of Sydney and of the whole colony. New Zealand will participate in the benefit of freer commerce with the parent colony, but we must regret that it is hopeless for us at the present time to think of following her example.