THE CUSTOMS TARIFF.

New Zealand Herald, Volume XXXV, Issue 10835, 19 August 1898, Page 5

THE CUSTOMS TARIFF.

PREFERENTIAL DUTIES ON ENGLISH MANUFACTURES. THE EFFECT ON FOREIGN NATIONS. IMPOSITION OF RETALIATORY TARIFFS PROBABLE. . Considerable attention is being paid to the proposal of the New Zealand Government to adopt preferential duties on English 'nanufactured goods. The views of several of the local importers are to the effect that the proposed remission of 5 per cent, on such goods does not go far enough, and that to bo if any appreciable benefit it would be necessary to remit 10 per cent.; while the opinion has also been expressed that a remission of, say, 5 per cent., on English manufactured ooc and a corresponding increase on the duty on foreign manufactures, would bo more advantageous. Recognising that there are two sides to every question, and that such action as contemplated by the Government might raise a spirit of hostility among foreign nations, and cause retaliatory tariffs to be imposed, a Herald reporter yesterday interviewed Mr. Carl Seegner, of the firm of Seegner, Langguth, and Co. THE OTHER SIDE OF THE QUESTION. Asked as to what his opinions were oil tie broad principles of preferential duties, Sir. Seegner, who has had a lengthy commercial experience in the colony, in Germany, and elsewhere, replied:—"We have no prejudice in favour of any country, and we will take orders fo. goods from the moon if you toll us how to get them down, but it seems to mo that the Auckland merchants interviewed generally take a very narrow-minded view of the case. It it quite natural, at the first blush, British colonies should give the British manufacturers a preference, but how is it to be done? It could have been done 30 or 40 years ago easily, and without much disturbing the general trade, but not now. Most of the articles imported from foreign countries, like Germany, the United States, and France, are not manufactured any more in Great Britain, and cannot bo kept out by any differential duty. In fact, if all the foreign manufactured goods were shut out entirely, Great Britain could not possibly provide these goods. I know what lam saying, and I will give you one article—pianosv Suppose all German pianos were shut out, there would not be any pianos, except for the bloated capitalist; and so it is with numerous other art idea." HOW OTHER NATIONS WOULD RETALIATE. " And what do you think the effect of the establishment of preferential duties would be on foreign nations?" "The remarks I have just made are but one phase of the question. The more important one is this: The export trade to the Australasian colonies is only a small part of the trade of the world, and many countries would not miss it very much, but manufacturing countries like the United States, Giimany, France, etc., would be sure to drop the ' most favoured nation clause' foi the produco of any colony that put on differential duties in favour of any other country, and such produce would have to pay an extra j duty. For example, in the United States, Germany, France, etc., wool from the Argentine, Uruguay, and, in fact, any country enjoying the 'most favoured clause,' would come in free, whilst the produce of a colony such as New Zealand, giving preferential duties to any country, would be subject to a duty, barring to a great extent these markets for that colony's produce." MARKETS SHOULD NOT BE RESTRICTED. " You think that retaliatory tariffs would be imposed?" " Decidedly. Ig it unreasonable to suppose that any nation other than Great Britain could look upon preferential duties in New Zealand in favour of English manufactured articles as equivalent to an increased duty on their own products? These are not- the times for restricting tho markets for anyone's pioduce in the world. Tho more buyers jou have for ail artiolc the bettor prices you obtain. The tendency of the world all over is to buy direct, and to do away with the middleman s profit, and the interest of this colony is to keep their markets on tho Continent and America open. It is a mistake to think foreigners must come to London to buy. There was such a time, but that is gone, and no preferential duties will bring them back. .Neither colonial producers nor foreign buyers will stand 'London oharges,' of which ail shippers will know something by experience." AND NEW ZEALAND. "Take Germany, for instance: what would be the effect on her of such an alteration as has been proposed?" " Germany at the present time allows New Zealand products to enter free of duty. You have here the Customs tariff as imposed there and you will note that all articles—such eg wool, limber, gum, tallow, which might bo exported to Germany, aro allowed _ to enter free. In 1896 Germany imported 326,000 bales of wool from the Australasian colonies—indirectly, because there woro no direct steamers. Now, if the manufactures of other nations are to be shut out! of New Zealand by part of tho duty on English manufactured goods being remitted, Germany, in all probability, would retaliate by imposing a corresponding duty on New Zealand articles, so as to equalise matters. Tho manner in which the import and export statistics of Germany aro kept enables the Government to at once ascertain tho value and importance of their commercial relations with any other country. And I may here remark that if the same methods were adopted in New Zealand, and the commercial value of their trade connections with nations other than Great Britain ascertained, it would be a great advantage, and would mayhap speedily put a stop to any action in the direction of establishing preferential duties with any particular nation. The United States, France, and other countries would not quietly submit to preference being shown to English manufactured goods in such a manner as has been proposed, and would also retaliate, of that I am certain." CERTIFICATES OF ORIGIN WOULD BE INSISTED UPON. "Assuming that Germany did impose a duty on New Zealand products, ana these wore shipped to London, and from there forwarded to Germany, how could New Zealand articles bo distinguished from others?" "Easily, In tho.first case, Germany would insist on all artioles imported into Germany being accompanied by a certificate of origin. And oil New Zealand goods, whether forwarded direct or through London houses, the differential tariff would be imposed. The proposal is anything hut a step in the right direction. It is tho opposite, and a more inopportune time could not have been chosen, for England is at present endeavouring to arrange a commercial treaty with Germany, and such action as has been proposed would not, I am certain, tend to facilitate such an arrangement. So far as tho importation of goods 'made in Germany' is concerned, I may say that we import from all countries— from England, Belgium, Russia, France, Germany, Scotland, America, and other places. A trade connection must be maintained with all, and no particular leaning shown to any country. lam satisfied that the effect of the remission of duty on British manufactured goods has not been fully considered, and that the carrying out of such a proposal would not benefit, but would injure the New Zealand export trade."