NEW ASPECTS OF THE FISCAL ISSUE.

New Zealand Times, Volume LXXV, Issue 5023, 22 July 1903, Page 4

NEW ASPECTS OF THE FISCAL ISSUE.

Erery clay brings fresh intelligence concerning tho groat fiscal campaign that is notv being waged by business men and politicians in Great Britain. Various aspects of the case for the preferential treatment of British goods have been presented. Tlio discussion litis boon marred by party acerbity, but now and then wo come across on expression of opinion on this momentous question that is unsullied by either .social Jealousy or political differences among tho disputants. When men like Mr H. W. Wilson aro found discussing the subject from the workers’ and manufacturers’ standpoints, wo aro forced to the conclusion that something favourable to both has been discovered in Mr Chamberlain’s opinions. Then comes Mr Benjamin Kidd, tho author of the ‘‘ Principles of Civilisation,” who unfolds several now thoughts upon the tries 1 debate that must prove of interest to all who take a large and comprehensive view of “ Tho British Commonwealth ”; and, finally, Sir Robert Giffen, the well-known economist, lifts the whole problem out cf the hands of politicians and presents it in a light undiinmcd by mystifying and interminable debates upon free trade and protection. Those who have given any attention to this subject, and few men have not, will bo struck with the insight and iutalligcnco Hr Wilson displays in his observations. In modern industry everything depends upon tho scale of manufacture, and tho manufacturer points out that “where ten erticlos can lie produced and sold at a prolit for ton shillings each, a hundred articles can bo produced and sold at a profit for five shillings, fifty thousand for tivo shillings and so on.” Thus it happens that tho manufacturer who commands tho largest market, who can supply fifty thousand customers, can in tho end drive from the field the manufacturer who can only command a market of ten thousand purchasers. This is Mr 'Wilson’s contention, and no man with any knowledge cf modern business will contest tho proposition. Obviously, then, if .the American manufacturers, with their wonderfully organised “ combines,” are able to monopolise tho trade of the United States with eighty millions of people, and are also able to enter tho British market without lot or hindrance, the British manufacturers aro handicapped, and a.ro unable to pay as high wages to their operatives or to compote in the markets of the world.

Unlike the German, tho British manufacturer has no market reserved to him, and Canada alone of all the British possessions has mitigated her tariff to favour British trade. Under preferential trade, Britain’s trade with Canada has increased from £5,900,000 in 1897 to £9,000,000 in 1902. Germany retaliated and injured Canadian trade. So far Great Britain has dbno nothing to recoup the people of tho Dominion, although it is admitted that tho policy of Canada has resuscitated tho manufacture of woollen, cotton and leather goods in tho North of England. Great Britain stands alone as a freetrading country, and her export trade is practically stagnant. In 1872, doducting coal and ships, Britain’s export trade mas two hundred and fortysix millions. In 1990 it was five millions short of that figure. Meanw-hlle tho export trade of the United States and Germanyi rcso from oigh ty-nilae millions and one hundred and eight millions, to two hundred and seventyfour mil..ions and tiro hundred and twenty millions respectively. With all this, it is being homo in upon tho minute of the British manufacturing community that profits have decreased along with wages, on account of the foreign competition. Viewing the aggressiveness e. Germany towards Canada, and writing as a freetrader, Sir Robert Giifen observes that tho question to bo considered is “whether it may not be expedient politically to assent to the wishes of some of our colonies and follow their method of binding the Empire together for political reasons, though we may dissent from their economic arguments. In other words, the question now before the country is more political than economic.” Sir Robert Gxifon, as a fros-Jbrader, considers that though Canada has made a mistake economically, she is honest and quite within her rights, and if need be, the whole force of the British Empire should bo exerted to vindicate tho right of Canada to trade with Groat Britain on better terms than she is prepared to offer to any foreign country. We may not all agree with the view obtruded for consideration in the “New Liberal Review” by Mr Benjamin Kidd, when ho advocates the formation of a British Common wealth, in which the several self-governing States will accord to each and all equality of trade among themselves and protection against tho world. There are many economical as well as political difficulties in tho way of its immediate realisation. Time may remove some and development others, but on the genius of tho Anglo-Saxon people will depend its final consummation. Tot Mr Kidd ought to bo hoard. If,” ho says, “we aro to retain not tho formulas but the essence of our freotrado policy in the past, we must, in tho present tendencies of tho worlds consolidate and organise tho broad economic basis which wo have in tho States within the Empire. It is, I believe, destined to ho tho only basis from which tho groat war against tho present monopoly tendencies in production will bo successfully waged. . But wo must organise and consolidate with some degree of intelligent anticipation of the future. e must think of what we are to bo. as well as of what wo have been.” Tiro nature of British trade and tho character of the fiscal system of Groat Britain offer peculiar facilities for the arms of American and Gorman commercial organise' ions, arfd viewing the conduct of tho Tobacco Trust, Mr Kidd fears that the real danger to the British Empire is that England’s industries may ho absorbed by organisations proceeding outwards from tho United States. From Germany comes the foar of organisation by tiro State, and her system affords moans of resisting the

tendencies of American industrialism. Will tho British Empire discover a method of successfully opposing the monetary and State-created monopolies of these two This is the question “which lies on tho knees of tho future.” The establishing of a British Commonwealth and tho instituting of an Imperial Council of Trade seem to Mr Kidd steps towards the solution of tho problem. Whatever happens, Britain’s trade must bo preserved, for ours is an Empire founded on trade and by trade it must bo maintained.