THE FISCAL REFORM CAMPAIGN.

New Zealand Herald, Volume XL, Issue 12401, 24 October 1903, Page 5

THE FISCAL REFORM CAMPAIGN.

CABINET SECRETS.

WHY THE RECENT CORN TAX

WAS DROPPED.

STATEMENT BY MR. CHAMBERLAIN.

By Telegraph.—Press Association.—

.London, October 22. Mr. Chamberlain, referring to Mr. Ritchie's speech at Croydon, stated that he (Mr. Ritchie) was perfectly willing to keep the corn tax, but threatened to resign rather than give any preference to Canada. "What was the result?" asked Mr. Chamberlain. "It was that we stood face to face with the colonies and said: l ' Not only will we not impose a tax and give yon "preference, but now that we 'have a- tax which, does not add a farthing "to-the cost of living •we- insist .on its abolition lest we should be obliged to give our kinsmen a real preference.' That made the situation critical. We could not afford to lose the Chancellor of the Exchequer on the day before the Budget was delivered. Hence the tax was abolished, but Mr. Balfour and I decided that we would submit the subject to the electors."

THE ANTI-PREFERENTIALISTS. London, October 22. Lord Hugh Cecil, speaking at Oldham, said that a profit and loss relationship would not unite the Motherland and the colonies, but rather be the cause of quarrels. Money was a-low ideal as a bond of Empire. . .

Mr. Winston Churchill also spoke, declaring that if a wave of protection were not sweeping over the country the Conservatives would probably have endorsed retaliation unanimously. Government interference with business was usually stupid and often corrupt. (Received October 24, 1.12 a.m.) . London., October 1 23. Sir Edward Grey, speaking at Alnwick, said it was impossible to return to protection. Mr. Chamberlain only half understood what protectionists were after. They were trying to establish the same conditions as led to trusts in America. If preference was transferred to the colonies the production of Britain's food would cause a decline, necessitating the reimposition of taxes on tea and sugar. He did not wish to behave ungenerously to the colonies. If by further sacrifices we could draw them near free trade within the Empire there might have been something in it, but since they were protectionists Mr. Chamberlain must be causing them grave misgivings.. Instead of Britain drawing the colonies to free trade they were drawing Britain to protection. (Received October 24, 1.25 a.m.) London, October 23. Sir H., . Campbell-Bannermau, speaking at Stirling, stated that the fiscal question was a one-man policy. But for' Mr. Chamberlain not a hundred men would be talking about protection, and the -question of retaliation would never have been raised. Mr. Chamberlain was playing pranks with the vital interests of the Empire. He ought to table a scheme instead of trading on the alarms, passions, cupidity and credulity of the people. Britain did not need protection with the consequent creation of monopolies and high prices. There was no need to be hysterical about foreign nations if the people of Britain increased in skill, energy,, adaptability, and resourcefulness. Mr. Chamberlain's proposals substituted galling hoods for the ties now sitting lightly and pleasantly on the colonies.

(Bcceived October 24, 1.35 a.m.) Lonbon, October 23. Lord George Hamilton, in a speech at Ealing, said he was willing to face sacrifices to bring the colonies iato closer unity with the Motherland if the political gains compensated for €lie burdens. He would not consent to a crude scheme because it was labelled Imperialism. Mr. Chamberlain's great Imperial idea had degenerated into a protectionist campaign. On the last day of the session, the Cabinet considered Mr. Balfour's pamphlet and proposals he wished to put forward in the name of the Government, including preferential tariffs and taxation of food. The Cabinet agreed to the publication of the pamphlet, but differed from the proposals, adjourning the discussion until September 14, when they again disagreed. Afterwards the Duke of Devonshire, Mr. Ritchie, Lord Balfour of Burleigh and himself (Lord George Hamilton) agreed to resign, all being ignorant of Mr. Chamberlain's resignation, but knowing that preference .would not be altogether dropped while he remained in . the Cabinet. ;" After the" next Cabinet meeting, as they were informed of no ; change in the situation, he resigned, still understanding that Mr. Chamberlain was a member. He regretted that Mr. Balfour had not taken care to regulate the resignations so as to avoid causing a misunderstanding. If the propaganda was continued and the country was committed to protection, or if the Unionist party smashed, either would be a catastrophe.

StDJTBT, October 23. A reply to a resolution passed by the Free Trade League and cabled to Sir Henry Campbell-Baunerman. protesting against the action of Sir Edmund Barton aud Sir John See in cabling to Mr. Chamberlain approving of his policy, has been received by Mr. Reid. Sir Henry expresses his gratification at the resolution, and adds, " We adhere to a revenue tariff.*'