FREETRADE AND PLENTY.

NZ Truth, Issue 59, 4 August 1906, Page 3

FREETRADE AND PLENTY.

* TO THE EDITOB.

Sir,— As an interested reader of the discussion m your paper of Protection v. Freetrade, I crave your indulgence for a few remarks. In the first place I am a Freetrader and believe as "Old Freetrader" does that that policy would be the best for this colony. "Old Freetrader" has stated his case with force and clearness. On the other hand, "J.Y." and "Maorilander" have not approached the question m a fair and dispassionate spirit. In the discussion of a question of such interest and importance as the fiscal pplicy of a country all personalities are irrelevant and should be avoided. What people want to get at are facts that bear directly on the question at issue. The remark "J. Y." makes to his opponent about "Dunghill Crater" and "Whisky bottle" being familiar to "Old Freetrader" is ungentlemanly and shows bad taste on "J.Y.'s" part. Such tactics will no doubt appear clever and crushing to some minds, but people who desire to get at the truth of a question will see through it and appraise it accordingly. Coming to "J.Y.'s" contention that the industries of this colony will flourish under Protection and that wages will be high. £t is not denied that industries may be artificially developed by high protective duties, but we must not forget that it is at the expense of consumers ; and even if wages be higher, the higher wage is only nominally so. The value of a man's wage is really what its purchasing power is, so that if he gets more money here than m Freetrade England he pays considerably more for rent, clothing and living. ;'J.Y." imagines that Protection means high wages, but high wages m protected industries are really only secured by unionism. Henry George, m his "Protection and Freetrade," exposes the fallacy, that Pro-

tection and high wages always go together. In the United States manufacturers m the highly protected industries paid very low wages. Thousands of foreigners are imported to oust their dissatisfied hands. The United States is the ideal of the Protectionist, but there is no country m the world where labor is more dissatisfied or where more strikes occur. Look at its gigantic trusts and comj'bines, the fell fruit of Protection. As I to', its great wealth it is controlled by a comparative few. "J.Y." says he wants to see the money, that is sent across the sea kept m this colony. Now, as a matter of fact, little or no money is sent across the sea to pay for imports. As every political economist knows, exports are paid for toy imports unless a loan or debt has to be wiped off by the country: exporting. Protection lessens ouir pay&ent m the way of imports and taxesl the workers for buying what they' nfced, thereby reducing the purchasing power of their wages. "J., Y.s" notion is for the colony to- make every tiling we require, tout he overlooMHfce fact that if we do not import asd employ England's millions they cannot buy our frozen meat, wool, 'wheat, etc. And what can' we do with! our superabundance of products ?' We have not enough people here to consume all Aye can produce ! It is ridiculous for him to talk of a market here being better than one twelve thousand miles away. We have not^got that market and never will have under Protection. As to Freetrade m England and the prevalence of poverty there, there is no connection between the two. Poverty arises from many causes. Over-popula-tion, land monopoly, drunkenness, fluctuation m trade, etc., all contribute to poverty and unemployment. Freetraders do not claim for Freetrade that it will prove a panacea for all social evils. What they do advocate is the removal i'of . all artificial restrictions between nations,- believing that all countries are beriefitedv-by-be-ing 'able to exchange commodities to the greatest possible extent. The more trade, the more employment for the workers. "J.Y." complains of the raw material wool being sent away to some distant country infe-tead of: being made " into clothing here. Surely, he is not so blind but that he can see that the colony cannot take up half the wool »we produce. HMaorilander's" letter shows that he stares "J.Y.'s" delusion that wages are sent out of the coldny, for !he tells us that that will happen if Freetrade is ever adopted- by New Zealand. He has i; , vision, pf our factories ruined, thousands of ' men uneriployed and at last obliged to cle'£r out of the colony. Well! if that dire state of things happened there would bt a poor market hece for either America or Germany. 1 would ask both. "J.Y." and "Maorilander" how it was that when New South Wales ac ; . opted Freetrade years ago that it did not lead to .ruin. That, instead of losing population ,- its population has trebled m 35 yeats. From 1866 to 1901 its exports" and imports have [increased nearly threefold. On the other hand, Protectionist Victoria only, increased its total trade m the sa aie period one third, its population i is barely doubled, and it? revenue little more than doubled. If one colony can develop under Freetrade, why shouldn't New Zealand ? If NewZealand is fairly prosperous it is m spite of Protection.— Yours, etc., ARTHUR TALBOT. Wanganui, 24th July, 1906.