THE PREFERENTIAL TRADE PROPOSALS.

New Zealand Herald, Volume XL, Issue 12303, 22 June 1903, Page 6

THE PREFERENTIAL TRADE PROPOSALS.

NEWS BY THE MAIL.

MOMENTOUS DEBATE IN HOUSE 0 COMMONS. SPEECHES BY PREMIER AND MR. CHAMBERLAIN. FEELING IN ENGLAND. [from our own correspondent.] San Fhaxcisco, Juno 4. A despatch from London, dated May 2! says: Mr. Chamberlain has again prove I himself the strong man of the Cabinet. In ■ debate, which may prove the most momei tous of the present Parliament, he has in frank and bold speech further developed th policy which will be- regarded as an entir reversal of Great Britain's fiscal position, an at the same time he proved he lias been abl to carry the Government with him. Impressions left on the minds of th crowded Chamber was that the country is o the eve of a. dissolution, and as in 1900 Mi Chamberlain carried the country with him o the South African resolution, he will no' bo able to carry it again on the policy c : preferential trade within the Empire. I addition to asking for a mandate to tax foot ho asks for power to engage in a tar! war with Germany on Canada's account, an to fight American trusts. It is safe to sa that no such revolution in political affair has been experienced for man)- years, no anything so sensational. The debate prat tically ended with Mr. Chamberlain's speech and the House emptied into the lobbies Nearly a hundred Conservative members in dicated to the Government Whip and t< Mr. Chamberlain their intention to take th opinion of their constituents on the ne\ policy during the Whitsuntide recess. jit present Great Britain is the only free trading country in the world, Mr. Balfou pointed out. If the prevailing tendency con tinuod th© time must come when the onl; r.eutral markets where she could dispose o hoi experts would be her own protectorates her own Crown colonies and India, leaving the country helpless in the hand's of th ether nations. With respect to tariff regu la tic nB, the Premier continued, if foreigi countries wero to be allowed to treat Britisl colonies as foreign nations Great Britaii would be forced by patriotic interest and re gard for her colonies to retaliate. Canada Australia, India, and New Zealand wen parts of the Empire, and it was absurd t-ha they should be treated as separate aggrega tions because they had been given self-go vernment. The Premier added that if pre ference- were given to imports from the colo nies they would in exchange mitigate thei tariffs against the Motherland. Mr. Bal four concluded by saying he did not thinl it would be wise to tax raw materials, an< did not know whether a tax on food wouh bo accepted, or that the colonies would ac cap*; the proposed tariff modifications. H< knew the traditional objection of the work ing classes to food tax, and was aware of th< objection of the colonies to abandoning protection. If these could not be overcome, th< plan would collapse. It was not true thai the policy was started by Mr. Chambsrlair as a plan of his own and without consultint his colleagues. He (Mr. Balfour) was in agree ment with him, and if his scheme or ©th-ei similar schemes were impracticable, the Empire could not be brought to the same plan' of fruition-as had occurred in the case oi the United States. After a question put by Mr. David Lloyd George, Mr. Balfour intimated that the Government did not propose to deal with the question before the dissolution of Parliament. Mr. Chamberlain expressed surprise his speeoh at Birmingham on May 15 aroused such attention. It was, tho Colonial Secretary said, absolutely the same in substance as speeches delivered by Lord Salisbury and Mr. Balfour. There was absolutely no difference of opinion between himself and Mr. Balfour. All the critics of his position had fallen into the error of supposing than an absolute reversal of England's fiscal policy was involved. Nothing of the kind had been proposed. Everything depended on the definition of "free trade," and if Cobden's definition, "to bring about free interchange of commodities at their natural price," was accepted, then neither he nor any member of the Government sought to depart therefrom. Although nothing 'was now suggested in the nature of a reversal of Great Britain's fiscal policy, it was certain a mandate must be given the Government if the suggestions he had thrown out were to be carried into effect. Mr. Chamberlain said ho wished to make his position clear. He would do his utmost to bring this question in all its bearings before the people. Thus far he had only raised a principle, and had not formulated a plan. It there was to be no change in the fi.-cal system the country would have to give up hope of closer fiscal relations with the colonies. If the Government received a mandate it would formulate a plan. He would call another colonial conference, but he could not negotiate with the colonies before the people had given the Government a mandate. Everything would depend upon what this country had to offer. In the first place, however, he must learn from every manufacturing district what articles in those districts could be largely sold if (hero were preferential rates in the colonies. What Great Britain should have to give was preference on groat colonial products, and that preference would have to be in raw materials, in food, or in both. He agreed that it was undesirable to tax raw material, because Great Britain would be required to give drawbacks on finished articles, which was a complicated system, and lie preferred the simple method of taxing food. The vvorkingman's dislike to taxes in food had no terrors for him. He was prepared to go into the homes of labouring men and nrgue the subject with them. He would give them a table shelving them how much bread and bi i er they used, ar.d' exactly how much duty they would have to pay if this policy was carried out. He. would also give them a- •table showing how much extra wages they would be required to earn. If the Opposition wore able to show that it meant greater cost of living, with no increase of wages, their optimism would, be justified. But if he was able

to show creator increase of wages than loss on food, "then, ho said, "I think I shall have a chance." It was inevitable, if prefcren--1 tia- duties were levied, that a tax should bo [ placed on foodstuffs, and as the working classes would pay three-quarters of such tax. it was only fair that this money, and the onequarter paid by the richer classes, should be. 1 applied to social reforms, like old age pensions. Such a tax was not protective in intention, but incidentally would be protective, lie said to workingmen, "Met only do you get back in benefits the whole sum you pay, but also what is paid by the richer classes. In addition to that you receive higher wages, arid it wi'l be possible to press forward other social reform- which arc at present impracticable for lack of money." Me admitted the km in tax had incidentally protected the fanner. If food were taxed in future it would not be an unmixed evil, because it would 'help the depressed industry of pgrieuUure and increase Great, Britain'- supply of food. More, than that, it j would enable Iku* to dcrd. with Germany in ' defev.e: of ('•■.•ad:.-. "'.'-.' should not enter, on 'i war of i*iifit. but 1 v.-n'i'.d say to Ge-r- ; many. '1 am iiffild ii you e.-Minot ne'er, us I in this ni'sft-r ■.•.-,<■ may In- c.'.npelied to put ! a duly on h.n.' ' 'J. he Colonial Secretary , said i'-i,-::.iV.' d •' pr: , .-'>n' , hnil been made to (Term.'tny i" ,■■:•»;•.: ;o Can. hue he did not :- " wi;;'d > ■ei , |,);;tiv "O.'.l'i do to meet British vi'>v.s until (heat V-\ re,in was in a; po«,it:«n to t.i".-Ji tlio r "<•!.-■•::- of the German } people'. " WiiS it not also conceivable. | Poked. M'-. Chamberlain, "that Groat HriUin would have to defend her trade against unjust competition. <>;(h as that of the trusts of Am;ri"s and the Continent? At present Britain was 'he only open market of the world, and thore.fere the general dumpingground. If dull trade :a;n<> trusts would flood our markets and the markets in which ! wo compete with iron and steel, with prices ; that we cannot meet. If that happens, noi tiling will proven the people from putting j on duty to protect our staple industry." j Mr, Chamberlain concluded with the emI phatic assertion that ho intended to press the ! matter on public attentioni After some further discussion the House ; adjourned until Juno 8. | The supporters of Mr. Chamberlain are deI pending on him to devise a scheme of tariff i preference so skilful and moderate as to sot in motion tho Imperial unifying forces without subjecting the heart of tho Empire to calamitous pressure. A cable to the New York Tribune dated London, May 30, says:—The largo l>ody of Americans and Canadians now in London are taking the warmest interest m Mr. Chamberlain's great fight. The Canadians are most eager to induce him to visit- Montreal and Toronto in the autumn.