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New Zealand Times, Volume XXIX, Issue 4121, 5 June 1874, Page 2

Though to Tasmanian statesmen mnst be attributed an earnest desire and some energy in the same direction, to the Now Zealand Government must bo attached the credit of . being the first in Australasia to take a practical step towards bringing about intercolonial free trade. Wo say intercolonial, although there are really no degrees in free trade. When people talk of ultra-free trade they make use of absolute nonsense, for trade is either free or restricted. This latter it may be to a greater or lesser extent, but if free it cannot bo more so. And there may be free trade, even though there be heavy Custom House duties. If the Excise bo commensurate with the Customs there cannot be protection : and the revenue- that accrues from the Customs cannot, in any country, bo dispensed with. The London Times of March 24 was perfectly accurate when it urged in favor of the income tax, that "direct taxes are the only taxes which excite in taxpayers a desire to promote, economy. Indirect taxes are complained of by those who think their trade or business hampered by their existence ; but taxpayers generally are very slow to raise any cry against thorn—they are stirred only by direct visits of the tax-gatherers." But, if it were true that the income tax could not be wisely dispensed with, not the less so was it that the Custom House might not be abolished. The aim of every wise Government is not to cut off sources of revenue, but to so adjust taxation that its incidence shall be felt as lightly as possible. This is what protection cannot and does not do. The Australian Governments have shown a sort of blind consciousness of this by having what they term a Conference nearly every year, at which their representatives have usually passed resolutions that intercolonial free trade was very desirable. But then, as it was speedily pointed out* to them when they placed themselves in communication with the Secretary of State for the Colonies, what they wanted was, not free trade, but protection in disguise—a wolf in sheep's clothing, in fact. They were trying to bring about a scale of difl'erential duties, by which British products should be taxed heavily, whilst Australian of a similar description should pass scot free. It was intended that Queensland rum and Now South Wales tobacco should be taken into Victoria and South Australia duty free, whilst such articles coming from abroad should bo heavily handicapped by a duty that would really be of a protective nature The Secretary could not soo the beauty of such free trade as this. It was in the very naturo of things that Conferences working on such an untenable basis should end in nothing ; and the New Zealand Government has therefore desired, whilst not declining to meet delegates from other colonies, bxit r-ather suggesting they should meet on neutral ground in Wellington, if at all, to attempt to bring about the desired result by express negotiation. About this desirability there can bo no question. Absurdity can scarcely go further than the South Australian on one side of the Murray having to pay Customs duties on Now Sorith Wales products brought from the other side of the river, and vice versa. There would be just as much reason in the residents of ono English county paying duty on goods grown in an adjoining one. Such would be peculiarly a case when the exciso duty is the only one that should be paid, and this, we may presume, would be of equal amount with that charged at tho Custom House. The Now Zealand Government has steered clear of any complication that might result from this. It is proposed that certain products, which may well bo recognised as not fit subjects for taxation, should come in free, and others, which are allowed to be proper objects for heavy taxation, are omitted from tho schedule. Colonial wines, and ale and porter, a taste for which it is desirable to encourage rather than one for ardent spirits, may very well be permitted free access, but Queensland rum will remain- subject to duty, as also will Auckland whiskey if it be sent to tho other colonies. This limitation, which is in accordance with the most advanced principles of political economy, is, without doubt, a wise one ; and tho whole scheme contrasts very favorably with tho absurdity that the Australian Governments have been in tho habit of calling intercolonial free trade. As it has been remarked in tho memorandum that has been forwarded, neither Great Britain nor any other country would be likely to complain of tho colonies freely interchanging the products enumerated in the schedule as being injurious to their trade or commerce. Possibly tho Australian Governments, and particularly that of Tasmania, may wish to insert in the schedule the item of vegetables. Wo have touched upon tho almost annual wasto of time . and money that Australian Conferences have involved. It will bo ono merit of the proposition of the Now Zealand Government if by it these farces are brought to an end. Tho triple mail sorvice now being worked was voted desirable at a Conference held many years ago. At one held about three years since, South Australian delegates tried to obtain a remission of the Victorian duty upon their wheat and flour. This they were not able to accomplish, and, out of spito, they imposed a duty upon Victorian potatoes. The Victorian Government retaliated by increasing tho duty upon South Australian wheat and putting a differential ono upon flour, by which it became impossible for South Australian millers to export other than tho raw material, in placo of tho manufactured article thoy had boon accustomed to send. Tho duty on South Australian wino was also increased. Those things wero dono by men who wont yearly to tho Intercolonial Conferences, and spouted platitudes by tho yard about tho blessings of intercolonial free trade and reciprocities, after which thoy would pass resolutions to tho same effect. If there were no bettor reason for tho proposition of the New Zealand Government to be carried out than that of rendering crooked Australian

statesmen a little' consistent, this'one would carry quite sufficient weight with it, to any one conversant with the state of affairs.