TOPICS OF THE DAY.

New Zealand Times, Volume LXXV, Issue 5024, 23 July 1903, Page 4

TOPICS OF THE DAY.

Assuming that the issue of protection Vei'ous ires trauo is rciuly PHOTiiCTiON ratsea Oy me pieXeieiiu.ia-i VEKSUS trading proposals. that nine xuAXtK. havo oeuxx oiiLliinxt by xvlr Oiuiuineriaiu, there us a good deal to bo s;ud m Xavour ,ot Groat .Britain reverting to that liscal policy upon u'lucJi nor inuustr.-.U bupxcmucy Win built. Wo have always ueld that tliu usual policy of any uatiou numb bo detcniunod Dy the particular conuitious prevailing at t-ac time. The same view, wo imd, has been most ably advanced by one of rbo shrewuesL financiers and statesmen of the present duly. iVi. do ill tie. the Ihussiaai Finance Minister, in ibo course of an address delivered at a congress called to consider the trade of idussia, said ‘that the State, in tho province cl consumption, should furnish the population with cheap and suitable produce; aud in the province of production, develop the productive powers of the country. A protective policy endeavours to attain this object by creating advantageous condibioiis for developing tho natural wealth of the country, and by this moans gradually iuciting home competition, which must necessarily reduce the price of jiroducts to tho normal cost of properly-managed production, pins a normal profit for capital. Free trade speedily furnishes a population with cheap produce by opening their frontiers to the entire world; but the history of tho economical development of nations gives Itiu'dl"/ any instance in which such a policy has brought abcr.it a development of the productive forces of a nation. In any case, the selection of a policy of protection or free trado depends upon cond-tions wh.ch occur at a given period, Hence we find mat nations have frequently altered their commercial -and industrial system in the course of their historical development, England created her industry by rigorous protection, and when by this means she had become industrially and commercially stronger than any, other nation, and therefore feared no competition, she adopted a policy of free trade, and her talented writers began to assure tho world that a policy of free trade was baeod upon invariable and Indisputable scdentimo principles, and ought, therefore, to be followed in practice by all nations. And yet; now that soino countries, having turned a deaf ear to tho theory of froo trade, have developed their industries by protection and so become serious competitors to British trado in tbe world's mara certain tendency may be noticed in England towards protectionism. America was one of those countries which were not allured by tho theory of free trade. She has acquired unprecedented industrial activity through protection, and now a voice is board there calling for free trade, as in England at the beginning of tbe last century.” The correctness of these observations has been demonstrated by experience. England, with her producing industries ruined by free trade and her manufacturing supremacy menaced by the protocrivo policy of other nations, must adopt discriminating tariffs, not that she is ro’'vmced_ of tho unsoundness of free trade principles, but because something must be done to combat the rivalry of those countries that refuse to , reciprocate. Retaliatory tariffs would Iki wasteful, irrational and disturbing; but something like equal protection all round is required in order to future about fair trading conditions. wb".t, le really the goal of the freetraders, .

Whilst many of us hsivo.becn talking, thinking and dreaming of A cheat an Imperial Zoiivcroin, Mr YANKEE L. W WaiTOll, of Kew notion. Y*. , has beau preparing a piquant and mugiuhcojit scheme for “Uio Commercial Co-ordina-tion of the United Kingdom and Ujo United States.” This scheme is elaborated in a pamphlet, which at hist blush has somewhat of the appearance- of a glorified company prospectus, for it sets forth particulars of the Commercial Syndicate (Limited), with a tduvro capital of £120.000,000,and a debenture capital of i-‘GO,OUO,UIK) > and ot the Atlantic and Ginlf Company, with a share capital of £020,000,000 and a bonded capital of a like amount,. But here tho resemblance to tho ‘ .(Unary propped u.> ends, for no board., of directors are nouuesatocl, and there is no invitation to subscribe tho modest sums mentioned. The scheme has i<yx. got beyond Ujo stage of suggestion, but in case anyone should be inclined to take ifup, its author has spared no paiins in providing bucli arguments and details as many bo required for the persuasion of the capitalist. The figures, if not suiTictent to stagger the American financier, are at- least portentous enough to arouse curios.ty as to what purpose is to bo achieved by such an investment of capital. This can bo indicated very briefly. The Mississippi va-llcy is tho great food-producing country on which, it ;vs urged, Groat Britain .should mainly ro-ly for supplies. At present Britain imports much produce from other regions, but there are various drawbacks connected with transport, market charges and delay that apply to tho present system. Those would not, says Mr M arron, exist uf the natural resources of tho Mississippi wore developed, if a ship canal wero cut through Florida and a harbour established, so that the fleet, which might be specially built and organised'for tho transport of produce over the Atlantic, would not havo to fu-co tho dangerous navigation of the Gulf of Mcx ico and tho delay of, rounding the Ponliiisula of Florida. It is to supply those deficiencies that tho capital is needed. There is another aspect of the matter. In case of war. tho British Navy could not afford to detach warships in .vufficf.ent number to escort tho vessels bringing food to this country. Therefore, without tho assistance of America, tho people of the British Isles might havo to subsist at famine prices. By it America would never consent to having fond that was carried in ships under her flag declared contraband of war. So Mr Warren suggests that tho fleet of transports should be established, and the ship canal and harbour made, with British capital, constituting a company registered in America., so that though tho slifps would reailly bo British they would sail under tho American flag, and thus bo able to keep England plied with food even if she wore at war with a European • combination. What would happen if America- should chance to join tho anti-British combination is not discussed: but, as we all know, a few years ago some people thought war with America not only passible hut probable. If such a, state of things arose again, there might, to say tho least, be a feeling of hrsecurity as to the position of tho British merchant fleet under the American flag. And if America went to war with anr* other country, what would England's position be? Apart from these consVlnrntioTiK. it does not appear that the scheme takes any account of the British colonics: and as those are now loading the "Mother Country, the Yankee project is not likely to be seriously entertained.