The New Zealand Times. SATURDAY, JULY 18, 1874.

New Zealand Times, Volume XXIX, Issue 4158, 18 July 1874, Page 2

The New Zealand Times. SATURDAY, JULY 18, 1874.

The noisy agitation possible to be got up by a most insignificant number of interested persons has seldom received a better illustration than what is now afforded by the two distillery companies on the proposals of the Government to gradually increase the duties on Colonial made spirits. If anyone outside the Colony attempted to judge the extent of the trade from the apparent interest taken in the alteration of duties levied on its products, he must conclude that a large proportion of our population was either engaged in the manufacture or in growing the grain consumed by distillers. The ridiculous fact that all this disturbance is created by the proprietors of two establishments, one at Dunedin and the other at Auckland, there not being another in the Colony, may in some degreeprevent such serious attention being given to the question a* its importance deserves and demands. Looking back to the time when the Distillation Act now in force, and which alone has been acted on, was brought forward, it is surprising to see the utter apathy which prevailed in the House of Representatives. The then Commissioner of Customs (Mr. J. 0. Richmond), himself a free trader of the ex-; treme type, introduced the Bill, granting protection in the most exaggerated form,: without any reference to its violation of the principles of political economy, and in a tone of indifference thoroughly shown when he said, " He had never thought that much good would result from the introduction of a distillation law info this Colony." The Bill passed both Houses almost without discussion,. and certainly entirely without any proof being given that any substantial benefit would result to the Colony. True it was said that the growth of barley would be promoted, but it seems absurd that enormous protective duties should be levied in the supposed interest of the growers of one kind of grain, twenty years after the repeal of the corn laws at Home and in face of the cry constantly repeated here, whenever duties were suggested on imported grain or flour to aid the farmer in his precarious occupation, that the spirit of the age absolutely forbade imports being taxed excopt for revenue purposes. The time is not far dktant when the whole question of protection to Native industries must be thoroughly discussed, and when that takes place, we are inclined to think it will riot be difficult to adduce sound arguments to prove the expediency of a different policy being adopted in a Colony from that which is said to be the best for older countries, though even there doubts are not at an end. After all, the socalled laws of political economy are nothing more than an expression of the belief, that a certain course is most expedient, and they cannot be held to be of universal application. But to select the one article of spirits for protection by a largo difference in duty, is on no ground defensible. So long as people will be spirit drinkers the Government is fully justified in exacting the largest contribution to the revenue possible, without provoking smuggling. At beat it cannot bo contended thab spirits are moro than a luxury, and, without boing tempted to discuss the temperance question, it may not unfairly be contended that their consumption is the most pernicious form of drinking. Tho encouragement of barleygrowing may bo desirable, but tho success

of the attempt cannot be said to warrant tho large sacrifice of revenue the Golony has been compelled to suffer. The number of persons employed in distilleries is far too small to make the interests of the working class any foundation for claims to continued protection; so the whole question resolves into one of vested interests and the proper course to be adopted in reference to them. We have already pointed out that only two distilleries are yet in existence, . and their success does not seem to have been very marked when it is considered that the Dunedin Company suspended operations for nearly four months in 1873, and that at Auckland for more than three months in 1872, and above two months in 1873. The returns show further that the distillers have not confined themselves to grain, but that molasses and sugar have been largely used, so that the argument of advantage to the farmer falls to the ground. The question to be solved is, what is best to be done to prevent further injury being inflicted on the revenue 1 To raise the present excise duty is said by both the companies to bo equivalent to closing their establishments. They agree that they cannet obtain the same price for the spirits they manufacture as is paid for those imported, that the cost of production is much greater than in Europe, and that in consequence their profits are only one shilling per gallon, subject to deduction for travelling expenses and bad debts. The price paid by the consumer for Colonial spirits being the same as for imported, it follows that the revenue is injured without advantage to any one, except the problematical promotion of barley growing, for the companies deny they have as yet made any profit. It would thus appear that the repeal of the i Distillation Act would only amount to the same thing as raising the duty. The complete extinction of the manufacture would certainly give satisfaction to the country and avert a waste of revenue, to bs deprecated even if the consumers obtained the benefit, but utterly indefensible when the sole result is proved to be a reduction of the means of the Colony. It would not, indeed, be fair to punish those who have been tempted to expend money on the faith of an Act of Parliament because it is afterwards seen that a mistake has been made ; but it would be far cheaper to act liberally with the present distillers than to permit our income to be subject to a continual drain. The form in which any allowance for cessation of business should be made, and the amounts to be given, will need to be the subjects of strict investigation. Companies giving it out that they are carrying on business without a. profit cannot expect to be paid any large sum because they may be compelled to quit a calling commercially unsatisfactory ; nor does the amount of capital invested represent the amount of loss. Land will be left, buildings will be of some value, and the plant will bear removal to another country and command «■ certain portion of its original cost. The resolutions adopted last night by the Committee of Ways and Means go to the root of the matter. If the representations of the distillers aro true, they will at once announce the cessation ef their operations from the end of this year, and their claims can be examined by the Select Committee to which the Premier has promised to refer this part of the case. Whatever is done further, a scandal to our finance is put an end to, and the warning now given will go far to prevent the repetition of what is universally admitted to have been a gross mistake.