PREFERENTIAL TRADE

Otago Witness, Issue 2572, 8 July 1903, Page 15

PREFERENTIAL TRADE

LONDON, June 29. The Standard's advice regarding Mr Chamberlain's scheme, which is to wait until the cards arc on the table, coupled with its comments on the probable attitude of the colonies, i» cou&idered at Berlin to be significant.

June 30.

The. president of the Liverpool Working Men's Conservative Association wrote to Lord Stanley, president of the Liverpool Constitutional Association, that in his view it was actually impossible to judge of the merits of the fiscal question, and that no resolution should be accepted or motion committed regarding Mr Chamberlain's proposals until the inquiry was complete and the evidence thoroughly studied* Lord Stanley replied stating that he approves of this attitude.

Mr Chamberlain informed Mr Labou■cliere that no suggestion had been made to any of the self-governing colonies that they should .surrender the liberty which they now have of framing their Customs tariffs, or that any alteration should be made in the practice of negotiating comanercial treaties. The coloaies would btill decido whether the Imperial Government should give an adherence to commercial treaties on their behalf. Since the Colonial Conference no communications had passed between the Imperial Government and that of any colony with regard to penalisation by foreign countries, nor liad any colonial suggestion been forthcoming as to the manner of protecting the Empire's fiscal freedom.

Lord Portsmouth, in the House of Lords, having inquired what proposals had been suggested with a view to inducing Germany to treat Canada reasonably, Lord Lans-downe described th© objects of the fiscal inquiry. What was wanted was closer union with the colonies, and the means of protecting them aaul the Motherland from unfair and inequitable competition. The proposals would come up for discussion.

Lord Ro.sebery a«ked whether the inquiry was intended to inform the nation, or as a mere piece of mechanism to keep it together. He denounced the inquiry a-, impalpable, holding that a Royal Commission might publicly inquire into the issues raised, and the nation thus be taken into the confidence of the Government. Lord Selborne declared that the inquiry must be framed in the interests of the. nation, and participated in by all classes and parties and the whole preps. The examination taking place in a period of national prosperity would provide a safeguard against hasty conclusion I.1 '. Lord Gopchen inquired a.s to the elements of the inquiry, and asked whether the facts would precede the coming politic.il speeches or the campaign prccedo the facts. The Duke of Devonshire interpreted the recent speeches delivered by Mr Balfour and Mr Chamberlain as indicating the objects of the discussion, ■which would include the question of old-age pensions, inasmuch as there would then be a considerable amount of money available. Lord Jersey: "The campaign opens in October. Will the Government meanAvhilo announce their policy " The Duke of Devonshire : "It will bo impossible to make any announcement before the end of the session." The subject then dropped, but the debate clearly showed, on the authority of Lord Lansdcwne and the Duke of Devonshire, that the Government were not committed to any tariff resolutions. July 1. The Leeds Chamber of Commerce parsed a resolution to the eitect that the li-cal relation-* must be considered ii! connection with the preferential trade propo.-aK, and urged the Government to collect information on which to form an impartial judgment.

The South Wales Iron and Steel Workers' Sliding Scale Committee h.is adopted a resolution supporting Mr Chamberlain* recommendation as a

reasonable alteration, and placing the* iron and steel industries on an equality with their competitors abroad.

Lord Carrington presided at an urgency meeting of the National Liberal Club. A resolution was adopted viewing Mr Chamberlain's proposals with alarm.

Sir E. Grey a-serted that the present suspense was unfair to the country, and could not last.

Sir C. Dilke said that the issue was so stupendous that unless the Radicals were able to sweep the country on this question he was willing to support a Government of Freetrade Tories or a coalition. The country must tell Mr Chamberlain that it would not consent to a tax on food, and also tell Balfour that while the cry of retaliation might mislead the unwary it would build a wall of Protection, and introduce under shelter of the wall protected industries which the country would never get rid of.

(Received July 2_, at 9.25 a.m.)

Although 150 Unionist members of the House of Commons favour the fiscal inquiry, 50 per cent, of the party, chiefly those representing combined urban and rural constituencies, decline at present/ to participate either in concerted movements or an electoral campaign during the recess. July 2. The Council of the Colonial Institute unanimously and heartily concurred in Messrs Balfour and Chamberlain's suggestion that "the Imperial fiscal relations should be thoroughly examined. - Mr Hobhouse, presiding at a meeting of 54 Freetrade Unionist members cf the House of Commons, explained that their aim was to assist the Government and ensure a frank and fair inquiry. A committee was appointed to examine the probable effect of the suggested fiscal changes on the unity of the Empire and the social and industrial welfare of the United Kingdom, and to explain to the country the objections to the protective taxation of imports.

Sir M. Hicks-Beach stated that the meeting wished to save the party from a crushing defeat. The conference of Unionists on the 24th ult. was evidently organised by Protectionists. Mr Chamberlain's scheme, if adapted, would provoke a strong struggle between colonial and Home interests. He criticised Mr Chamberlain's proposals with a view to showing the impracticability of compensating consumers for the increased cost of food by readjusting the tea, sugar, and tobacco duties.

Lord Goschen doubted whether Mr Chamberlain would be able to sweep the country, as so many Unionist members were against him. He denounced Mr Chamberlain's fiscal policy ah most dangerous, and urged the necessity for restricting the inquiry to statistical information having the Government stamp. A private compilation was not sufficient authority.

The Liberal Freetrade members of the House of Commons have formed a committee of colleagues associated with commerce to secure adequate ventilation of views connected with the present controversy.

Mr Asquith, in moving the National Liberal Federation's resolution re Mr Chamberlain's scheme, said that it would endanger the relations of the colonies and threaten the Empire's stability. He protested against the use of a rusty blunderbuss as a weapon of retaliation, and urged his countrymen to choose the weapons of precision which science had formed. The British were on an equality with the UermnnSj and able to handle weapons which were truly. arms of quick fire and long range, fit for a modern industrial campaign. What the colonies fail to purchase from Britain probably consisted of commodities the Motherland was unable to supply. Preference would excite mutual jealousies in the colonies and lead to taxing all raw materials coming to England.

Mr Augustine BirreU, K.C., in moving a resolution calling on the Government to declare their fiscal policy, said that a Government without a fiscal poflcy was unfit to remain in office five minutes.

The resolution wai> adopted.

Mr W. Runciman (L.), M.P., in a letter to the chairman of the North of England Steamship Owners' Association, recommends them to inquire into the effect of the proposed fiscal changes on tramp shipping, which represents an investment of 120 millions of genuine unwatered capital and six-seveutLs of t3ie total British steamers. He emphasises the possible increase in the cost of shipbuilding, instancing America, where the difference is 30 per cent, in the cost of steamer.s as compared with" England, an excess which had killed the American tramp shipping trade.

Mr Balfour, replying to many questions, was unable to say when the fiscal inquiry would be completed, but he was >ibl<> to assure questioner^ that there was no probability of any dislocation in trade.

Lord Strathcona asserted that Canada would very shortly be able to provide every pound of foodstuff that Great Britain required. Canada in 1902 received 104,000 immigrants, the majority of whom came from the United States.

July 3.

Sir M. Hicks-Beach has been fleeted chairman of the T"nioni<-t Freetraders' Committee.

The Chamber of Commerce of Burnley, by 47 to 23, earned a resolution against a fiscal change.

IWHWM*W ii-- , , •«< PARIS, June 30. ' Senss&or Pauliat, a prominent- economist, declares fhat Mr Chamberlain's poiicy is a dangerous menace to France's export trade. Unless Britain adopts a policy soon she will lose her industrial trade, only retaining the carrying trade. It is ecsential that Great Britain should keep her own markets for herself.

OTTAWA, July 2

Sir W.'Laurier (tiie Premier), on being interviewed, said that Germany must initiate negotiations for a' fiscal settlement. Canada would accept a reasonable agreement, though she would not move auother finger, since her previous advances had been rejected.