THE FISCAL QUESTION.

Otago Daily Times, Issue 13519, 16 February 1906, Page 5

THE FISCAL QUESTION.

LEADERS EXCHANGE VIEWS. MR BALFOUR AND MB CHAMBER. LAIN. Press Association—By Telegraph—Copyright. LONDON, February '15. (Received Feb. 15, at 9.50 p.m.) Mr Balfour yesterday wrote to Mr Chamberlain as follows:—"The fiscal controversy lias produced, not unnaturally, an impression, which I constantly combated, that the practical difference between the fiscal reformers was much deeper than was actually the case." Tho recent exchange of views between us leads me to hope that the • miscoheeption may be- removed, and therewith much friction injurious to the party. My own opinion, which I believe is shared by the great majority of the Unionists, may be summarised as follows:—'Fiscal reform is and must remain the first constructive work of the Unionist party. Its aim. is to secure to British trade more equal terms of competition, and, secondly, closer commercial union with the colonies. While it is at present unnecessary to prescribe the exact methods for the attaining of our object, and inexpedient to permit the difference regarding tlicso methods to divide the party, though other means may be possible, the establishment of a moderate general' tariff on manufactures, not imposed for the purpose of raising prices artificially or protecting the country against legitimate competition, and a small duty 011 foreign com are not- in principle objectionable, and should be adopted if it can be shown that they are nccessary for the attainment of the ends in view or for purposes of revenue.'" MR. CHAMBERLAIN'S REPLY. (Received Feb. 15, at 10.15 p.m.) Mr Chamberlain replied as follows:— "I cordially welcome your letter, and entirely agree with your description of the objects which both of us have in view. I gladly accept the policy indicated, and consider it- wise and desirable that the party should adopt it. In endeavouring to give effect to this policy, and defending all the Unionist principles, any services I can render are entirely at your disposal." Earlier in the day Mr Balfour issued the following election address:—"l have no misgivings as to the party's, future; but we must not forget that in pursuing the duties of tho Opposition wc must prepare the way for those fiscal and social reforms •which the country will ultimately require at our hands." The City Conservative Association adopted Mr Balfour's candidature with enthusiasm. Mr Balfour, in responding, said the only thing needful was a cheerful unanimity to enable the minority to earn the right to be again a .majority by showing some perspective and some power in balancing great matters wherein they were agreed against small matters wherein they might differ. He anticipated a certain kind of enjoyment- in a struggle wherein they might gradually convert the thinking part of the community to their view. NEWSPAPER COMMENT. LONDON, February 15. (Received Feb. 16, at. 0.14 a.m.) The newspapers, commenting 011 the correspondence between Mr Balfour and Mr Chamberlain, recognise that an important step has been taken in the direction o[ merging the two policies as a result of Mr Balfour's skilful opportunism, in the better sense of the word, as it means tiie immediate unity of the bulk of tho party and a. gradual constructive policy. The Liberal organs emphasise his reservations. The Morning Post says that. Mr Balfour has crossed the bridge, and will retain the leadership of the party, while Mr Chamberlain inspires the party's policy. The Free Fnodcrs are left 011 the other side of tho gulf. Tho Times slates that the correspondence Icavts no excuse for misunderstandings, within the party or persistence in an attempt, to divide its allcgiance. The impression produced on the rank and file of the party will ho marked' and salutary. The Daily News says that. Mr Balfour has paid the full price for the leadership, as he accepts Mr Chamberlain's mandate. The Daily Graphic' says that Mr Balfour's change is as dramatic as it is disagreeable, and it produces a distinct impression of a journey to Canossa as a condition of the confirmation of the leadership. If the policy is adhered to it. will be years before the Conservatives return to power. The new Liberal newspaper, the Tribune, says that, apart from Freetrade, the. stalwart Unionists arc definitely committed to Protection.