Poverty Bay Herald. PUBLISHED EVERY EVENING. GISBORNE, TUESDAY, DEC- 23, 1913. THE AMERICAN TARIFF.

Poverty Bay Herald, Volume XL, Issue 13263, 23 December 1913, Page 2

Poverty Bay Herald. PUBLISHED EVERY EVENING. GISBORNE, TUESDAY, DEC- 23, 1913. THE AMERICAN TARIFF.

Though the new American tariff has not yet had the effect which was anticipated m '^stimulating a demand for New - Zealand wool, and on this point our Bradford correspondent, m his latest wool report, takes a somewhat ■doleful view, there can be no doubt, m our opinion, that ultimately, and m the very near fvtture, this country must' benefit from the/ economic changes that ar© m progress m the United States, of which tariff- revision forms a part. The subject of the influence of the American tariff on British trade is reviewed m a most interesting manner by "United Empire," the journal of the Royal Colonial Institute. Business drones, both at home and m the overseas dominions, states the writer, have lately beep much occupied* with speculations as to the probable effects on trade of the new Anierichn tariff Jaw, A oareful examination of its provisions shows clearly that any sweeping descriptions of its oharacter, indulged m m some quartejis, from political motives, are largely tleoeptive. ; While the new tariff has, been, built-up mote largely qn. $i WyeJHje basis than any previous, one since the CHyil War, arid the highly pror tectiye character of the \McKinley and" Payne laws has been.irr great measure abandoned., there f.'|a Uttle ground tof Inference that it has made the United

Slates a Freo Trade country. Throe classes of commodiities, broadly speaking, still receive differential treatment. Tlie schedules for tobacco and spirits, silk, chemicals, and '.sundries" — a, large assortment of miscellaneous articles — remain practically at their former hr ' level. Significant and far-reaching reductions have, hoMevor, becji made m the case of import t'uties on sugar, woollen and cotton goods, flax and hemp, and the heavier products of iron and steel. This lowering of the tariff wall should afford considerable opportunities for increased' trade to British merchants and- manufacturers. . Reports from the States., .already fchow that severe competition from Britain is expected by American spinners and manufacturers. Freight rates m the case of the heavier metal goods, and industrial conditions m the textile industries, will affect the ultimate result of *the tariff changes hut (for a time at any rate) British manufacturers and the shipping interests stand to gain from the easier access afforded to the great American markets. General •- business relations will certainly be made smoother by jthe delation of the., clause empowering the President to impose' retaliatory maximum rates. Witt the admission to ' States of free raw materials America will enter even more strongly armed into the field of competition, for foreign markets and the possibility of obtaining forward and return freights must m the long run serve to revive the shipping of the States, which has so long langjUished under their highly Protectionist regime. While, on the whole, the interests of British producers will be favored under the changed^conditions, 1 ' the consumer must almost-rinevitably lose by the ' general rise In prices of commodities m universal demand. Rut whatever the result may be on the industry, commerce, arid ; food suyply of the United Kingdoinj l says' the United •Empire writer, so far as the JJominioiis ■are concerned, the freer trade m .the raAv products of^ their forests, : fieicTs/^and mines must, have an Vhose "pignificance cannot 'be ignored. ■ The agricultural, fishing, mining, . and lumberipg interests of Canada cannot fail to reap an enormous advantage, conferred by her vast resources' and the nearness of the market across the border. ' The gain will probably be offset somewhat by^a still further rise m the cost of hying; and -already there are signs of •a renewal of the agitation m favor of a tariff' reduction on .foodstuffs front 'outside sources. Canadian manufacturers' are probably now on a sufficiently strong footing to- hold their own against the competition of their southern neighbors. The exten sjjpn of the free list so as to cover nieat, wheat, leather, and j wool will, there can be no doubt jvhatever, be of great profit ialso to New Zealand, Australia, ( and South Africa. The local prices of 'these commodities, produced for export, are ruled by worjd demand and will rise m accordance with the increased competition for a supply which is relatively stationary. Large numbers of American buyers on the sppt "will niake this hardening of prices the more evident, but the higher values jof produce will also probably stimulate wider- production, and m acase t*he consumer's of the Dominions will bo repaid amply by the general prosperity which higher prices for their products will bring about. '