THE FISCAL CAMPAIGN.

New Zealand Times, Volume LXXV, Issue 5118, 10 November 1903, Page 5

THE FISCAL CAMPAIGN.

CABLE NEWS. CMIXED PKES3 ASSOCIATION'. —BY ELECTF.IC TELKCEAPU. —COPYIUCET.

SPEECH BY THE LIBERAL LEADER. “AN UNEXAAIPLED SCANDAL.” LONDON. November 8. Sir Henry Campbell-Bannerman. the Liberal loader, in a speech declared that Mr Chamberlain had not succeeded m explaining how a food-tax did not increase tho cost of living. Ho had only pledged his word for it. which. Sir Henry said, was an insufficient security for so great a change. Ho added that it was high time the Government declared whether it was with or against Air Chamberlain. Tho individual members of tho Government held divergent views. Air Austen Chamberlain was Ins father’s son, and i 1 was difficult to- say whether be was in tho Government as hostage or scout. Tho present position was an unexampled and unprecedented scandal. Britons wore not accustomed to sco their public affairs dealt with by manoeuvre!, borrowed from a cunning game of cards. Air J. E. Ellis, a member of the llouso of Commons, speaking at the Liberal League mooting, declared that tho party would have no. success at the polls as long as Sir Henry CampbellBannerman was loader. Lord Rosebery was, *io said, the only possible leader. VISCOUNT GOSOHEN. CRITICISM OF AIR CHAAIBERLAIN’S POLICY.

PROBABLE EFFECTS OF TAXING FOOD. (Received November 10, 0.13 a.m.) LONDON. November 9. Viscount Goschen, cx-Chancellor of tka Exchequer, in addressing the Liverpool Chamber of Commerce, claimed that ho waa as alive to. modern thought, to the facts of the day and to the trend of commerce as his great protagonist in tho course of protection. “ I do not theorise,” said Lord Goschen, “but only point to facts. If Air Balfour moans ho wishes the returns of tho next election to give him supporters to retaliate in exceptional cases, ho may possibly get a mandate; but- if ho moans a mandate authorising the Executive Government,' without further appeal to Parliament, to meet tho foreigner with a retaliatory tariff under tho general powers conferred by a general election, lam totally opposed. Ido not think ho means that, but Air Balfour ought to clear up all. existing ambiguity. I entreat him to say distinctly that ho does not desire such an unconstitutional mandate.”

Dealing next with Mr Chamberlain’s proposals, and how far they were likely or not to increase the bonds of sympathy between tho Motherland and the colonies. Lord Gosohon said; would, indeed, affect tho country to an extent we scarcely like to imagine or believe, if the colonies slip away unless this policy is adopted, but I deny—and most colonists will deny—that they would thus slip away. Besides, it is unfair, somewhat dangerous, and jrerhaps not quit® statesmanlike, to declare that tho largo portion of tho electorate which is not yet prepared to accept this policy is unfriendly and unsympathetic to the colonics.

“I do not endorse the views of Mr Reid, of Australia. Ido not imply that England is doomed the day she will not impose a tariff on corn.” Lord Goschen quoted Mr Reid’s remarks to show that ho was not asking a return for preference. Lord Goschen continued : “ Our critics ask, Will you do nothing for tho colonies?’ I answer, Yos; I would defend them. If I saw a colony in danger I would give tho Treasurer tho assistance necessary to keep that colony. That is England’s policy towards the colonies for all time to come. (Cheers.) I do not bcliovo that fiscal tics are necessarily coming.” As to tho business pa :t of tho proposals, said Lord Goschen, there was no part whereon they bad less information than whether a tariff of 2s would increase corn-growing in Canada and other wheat-growing portions of the Empire. Supposing there were no rise in price in England, the Canadian farmer would get only the 2s, and tho expansion of trade would not occur. Owing to Canada’s great expansion already, tiro progress of economic causes at work, farmers wore “proceeding to O.v a and increasing wheat-growing tlhr but tho idea that unless Britain was able to rely on Canada for wheat, other nations might starve tho British people was baseless, because what one refused others would supply. It would bo ninwiso to break their connections with other corn-grow-ing countries and to rely simply upon tho colonies, because the advantages of drawing supplies from neutral States in war time , would relievo tho navy of anxiety.

Converging then, Lord Gosohcn asked: “Will 2s bo final? Supposing the Canadians want more, will they get it? I am doubtful, considering Mr Chamberlain’s pledge not to increase tho cost of living. Some of ns contend that 3s would raise tho price of food, bonce wo may impose the 2s without helping Canada, whilo increasing the price in Britain. I beliovo same of -Mr Chamberlain’s agricultural allies in Britain aro disappointed at a trifle like 2s, whereby not an additional acre would be cultivated. Who will pay tho 2s? Such an additional tax outers among the burdens increasing tho cost of production and increasing tho prico to the consumer.

“Who in the main,” asked Lord Gosolien, “pays the tax. As shown in a concrete case—the American duty on tin plate—the prices in America nary according to the changes in duty. The manufacturers there formed a monopoly in _ 1892, and maintained the English price of tin pln+e, plus the amount of duty. On 386,000 tons manufactured in 1903, the people of the United States paid millions above English rates. Trusts are impossible where protection Is not introduced. I suggest to our critics that the effect of the tax upon wheat prices in Germany and Franco should bo extracted from the Blue Book and circulated in a cheap form, without comment by the Tariff Reform League or by ourselves.”

Regarding Mr Chamberlain’s duty of ten per cent, on manufactures, Lord Goschen said it was a startling allegation that industries were bleeding to death. The excess olj imports oyer exports consisted of ninety millions of freight and ninety millions of interest on investments. Imports were paid for not in gold. They were paid for in exports and services rendered. He would be sorry if everything came back without profit and without anything being paid for ships. They must not look at this

test of declining exports alone, though it was doubtless an important element in a country where food imports were of such supremo importance. It was sometimes said, continued Lord Goschen, they did not want cheaper goods, but they wanted tho ability to buy. He was glad to say tho masses showed a fine ability to buy, and that tho prosperity of tho country was not confined to one class. Tho system of dumping was unremunorative, and could not last. There was no need for the nation to bo in a panic and reverse its whole fiscal system. Lord Goschen proceeded :. Although Air Chamberlain in his Glasgow speech promised the workers much from tho ninety millions imported in tho shape of manufactures, in an earlier speech lie mentioned a revenue of nine millions from those imports, but if tho ninety millions were kept out there would be no nine millions forthcoming. “Ho forgets also,” said tho speaker, “that if there, aro no such imports you destroy employment upon tho goods manufactured hero and exported in paymoat.” Tho question of pauperism, ho said, would not bo solved by touching the tariff. It was marvellous that India —whereupon Lancashire was largely dependent—was not mentioned in these discussions. A tax on machinery cmplovcd in cotton mills would hamper exports. Ho urged that British shipping was expanding, but admitted tho existence of grievances, though these, ho felt, ought net to bo hitched on to tariff reform. It would be a bad bargain for tho sako of a cloudy idea of what was gainablo for tho people to subject themselves to the undoubted disadvantages tariff reform would involve, though it was legitimate to push grievances in Parliament. Ho urged a closer consideration of everything underlying Mr Chamberlain’s proposals. Ho urged it. ho said, in a spirit as sympathetic with the colonies and with tho same interest in the welfare of tho Motherland as Mr Chamberlain did. Ho admired tho ability wherewith Mr Chamberlain was conducting tho campaign, hut hoped the firo wherewith ho was warming tho heart of tho nation would not lead them astray. (Cheers.) Lord Goschen was cordially thanked for his address.