THE TARIFF.

New Zealand Herald, Volume LIX, Issue 18174, 21 August 1922, Page 9

THE TARIFF.

Sir,—Replying to my letter re the proposed duty on gla'ssware, Mr. J. Findlay says that the company " offered to give a guarantee that the present prices of glass bottles etc., would not be increased if a duty were imposed," and asserts that this assures that there will be no increase in cost to tho consumer. Does it? Note the word " present" in the guarantee. Increiise in costs may be either actual or relative, so that if on a falling market present prices are maintined then the cost of living is increased. Will the company guarantee that their prices will never at any time exceed the duty free landed cost ol imported glassware? That is the crux of the question, and if they were prepared to give such a guarantee, obviously the tariff would bo of no use to them. It is nonsense to suppose that protective duties are wanted save for the purpose of raising prices locally so that the local industry may carry on. I am glad that Mr. Findlay inferentially admits that exports depend upon imports, I think it is the first time I have known a New Zealander to concede this obvious point. He says, however, that the point* is 4t not a matter of moment as the present volume of imports are of greater value than is good for the country." How does he know? The only way to be sure of this is to let them have free plav when, as all economists agree, they will (subject to necessary reservations) exactly balance tho exports. If, as J. L. Garvin admits, " every import must develop an export" how can we be in dancer of over-importing? I know of course that trouble occurred some time ago over the double banking of wax-time orders but this was an exceptional case and really mounted to the sending out'of goods which had not been (intentionally) ordered at all. The banks can, and do in normal times regulate the balance of trade. Note again, Mr. Findlay's words, " present volume of imports "... What is going to happen when the conditions (as he sees them) alter, and imports recede to what he would think advisable!. Will the gla» duty corns off then ! p.H.N,