THE EFFECT OF THE FEDERAL TARIFF.

New Zealand Herald, Volume XXXVIII, Issue 11825, 30 November 1901, Page 1 (Supplement)

THE EFFECT OF THE FEDERAL TARIFF.

The Sydney Daily Telegraph, in a leading article on the Federal tariff, says: —

The boast of Mr. Barton that the tariff would not bo destructive is being unpleasantly falsified hero by the disastrous operation of the new fiscal policy on shipping. This, it need scarcely be said, is Sydney's greatest industry, and one in which New South Wales far exceeds any other or any two other Australian States. Of the oversea vessels on their way to Australia by sail and steam at present, nearly half are bound for this State. For Melbourne, which practically means for Victoria, 160 are listed; for Sydney and Newcastle 270. The industry is pre-eminently and absolutely a natural one. Its growth to its present great dimensions is not due to any fiscal assistance oxcept by way of leaving it alone. No taxe3 have been levied on its behalf or high prices made compulsory, such as have- been collected in Victoria for 25 or 30 years in aid of those so-called " substantial industries" which after all their expensive propping up cannot stand alone yet. It has flourished because of the incomparable superiority of tho port and because the free trade policy made it profitable for ships and steamers to come here both to bring cargoes and to take them away to the world's markets. The tariff will change all that, has, in fact, already begun to do so. Its restrictive presture has so far only had time to make itself felt on the inter-Australasian trade, on which, however, it is visible enough. Our correspondent in New Zerland cabled the other day that the big steamer Mokoia had left the colony with a tiny cargo of 30 tons aboard. The Zealandia sailed from Auckland on Monday lightly loaded with 102 tons, though her average before the tariff was 550 tens. Yesterday the Hauroto, which usually brings fruit from the islands, arrived from Fiji without bananas. The duty is prohibitive of the Fiji banr.ua. The tariff restrict-, consumers of that fruit to the sorts grown in Queensland. •This, however, is only the preliminary pinch. The report that fewer New Zealand steamers are to run to Sydney is merely a small hint, of larger reductions of that kind to be made when the blessings of the tariff make themselves more generally felt. The vital purpose of a protective tariff is, of course, to restrict importation and stimulate consumption of locally-made or grown commodities. The Barto'n-Kingston-Turner instrument has been drawn with a special view to this end. Consequently oversea shipping to Sydney will have to undergo a great reduction. Ocean steamers will arrive here in fewer numbers, because there will be less cargo for them to bring. Such as do come will have to raise freights on exports to compensate them for the loss of inward cargo which formerly paid a part of the expense and profit. In fine, Sydney's importance as a port will necessarily fade to a certain extent. To this there will be farreaching consequences. Consideration of tho effect on closely allied industries will show that there, must be a great falling off in both employment and trade. There will, beyond question, be less work for the docks and ship-repairers generally. There will as certainly be a sharp slump in employment for wharf-labourers and the men of other trades who in such great numbers rely on the shipping lor their livelihood. The shopkeepers who do shipping business will in many cases find their occupations gone. All the waterside industries and businesses, not to speak of (lie many others dependent on shipping and flourishing so far on the great untrammelled trade of the port, will have to suffer. To this loss of trade and employment there has to be added an all-round incrca.se in the prices of almost everything that a human being wears, eats, drinks, or uses in any other way. Then an idea ran be formed of the destruction the tariff will wreak on Sydney shipping and the thousands of people who have been getting their bring from it.