BRITISH FISCAL POLICY.

New Zealand Herald, Volume LVI, Issue 17110, 15 March 1919, Page 8

BRITISH FISCAL POLICY.

It is not surprising to find the British Government moving with extreme caution in the matter of fiscal policy. The reconstruction of British industry is a colossal undertaking. Britain's mechanical effort was one of the marvels of the war. It was a wonderful achievement made possible only by the sacrifice of the great industrial connection which the United Kingdom had built up through a century of keen competition. While British plants and British skill were concentrated on the production of war materials trade rivals, allied and neutral, were busy supplying the markets which British manufacturers had vacated. Now Britain's attention is turned to reconstruction. Of necessity every action of the Government must be directed to fostering trade and assisting in the re-establishment of the manufacturing industries upon which Britain's prosperity depends. The Paris resolutions of June, 1916, were framed principally to enable, the Allies to face the difficulties of the period they are now passing through. Owing largely to the action of the United States, and to the course which has been followed in the peace negotiations, these resolutions have been" allowed to lapse. In the circumstances it remains for each State to protect its own industry and no trade rival can reasonably grudge to Britain the full and unrestricted right to look to her own industrial future by whatever means may bo considered expedient at the moment. The temporary arrangements now announced are to be reviewed six months hence! It is a (air criticism that this leaves the country in doubt as to what the future fiscal policy is to be, but the cablegram on the subject gives tho impression that the foremost of the critics are the free traders who have already made up their mind to fight against any tariffs whatever may be tho fate of British industry or of the labour depending upon it. This much at least is known of the British Government's fiscal policy that it intends to prevent dumping and to give such preference to colonial goods as is possible without imposing fresh taxes on food. In the keen competition upon which British manufacturers are now entering other steps may be necessary, and it is well that in such a crisis Britain has a Government which has shown that it is not lacking in the courage which may be called for in the Cabinet room, as in the count-ing-house and in the workshop, before British trade is placed firmly on'its feet again.