THE FISCAL QUESTION.

New Zealand Herald, Volume XLIV, Issue 13490, 17 May 1907, Page 5

THE FISCAL QUESTION.

TARIFF AMENDMENT DEFEATED. MR. BALFOUR ON FOREIGN COMPETITION. By Telegraph.—Pre** Association.—Copyright.^ London, May 15. Mit, Austen Chamberlain's amendment to the Finance Bill in favour of broadening the basis of taxation in the interests of social reform and national and Imperial trade has been rejected in the House of Commons by 376 votes to 108. , " The Bill was then read a second time. '-:. * . -■ ■ '.".. Mr. Balfour, in the course of the [debate, warned the House that they were dealing with a world which was determinedly striving to divert commerce and industries from their natural channels to Great Britain's disadvantage. He contended that if there were sufficient grounds for imposing duties for great national and Imperial objects, the mere tact that the duties possibly involved some small protective effect was no reason for rejecting them.

Mr. Asquith replied: "We have not reached anything like the possible limit of taxation on a freetrade basis." : Ho urged that the basis of Great Britain's taxation was. broader than .that of any..other nation. It consisted of taxes on necessaries ; next on the simpler lururies, and finally on property. He defended the fiscal liberty of the Motherland and the colonies, and said he was sure that after the. frank and cordial interchange of opinions the members of the Imperial Conference had risen from the table better friends than when they 1 sat down. Mr. Asquith added that after the frank discussion on preference the Premiers and the Government had 1 agreed to differ, but he thought they were better friends than ever. Great Britain would be mad to interfere with the colonies in the full exercise of their fiscal autonomy, while the colonies would be acting like t fools ; and flying in the teeth of their own . economic system if they allowed the ; British manufacturers to undermine . their native industries.