THE FEDERAL TARIFF.

Star (Christchurch), Issue 7231, 18 October 1901, Page 4

THE FEDERAL TARIFF.

* ITS EFFECT ON NEW ZEALAND, OPINIONS IN SYDNEY. [From Our Special Correspondent.] SYDNEY, Oct. 12. Since I forwarded you my budget on the day' the Commonwealth Tariff was anaounced, the Sydney papers have been iull of the subject, and nothing else has been talked of in the streets or anywhere else. It is interesting to note the views expressed by various merchants in their interviews with the 'local Press on the items affecting New Zealand and the comments of ttoo papers. Thus the "Herald" of Oct. 10 aays: — "In produce circles tho opinions expressed was that the duties would be a fcig blow to New Zealand, especially so far *s New South Wales is concerned,- as the high Tariff would almost; stop importations of both grain and dairy produce into this colony. Considering the quantities of produce imported into New South Wales from New Zealand every year this means a> substantial loss to the New Zealand producers. Island produce, in the way of maize, would also be excluded, as well as Americam maize. European, Japanese and American onions would also thave to pay a duty of £1 per ton. The alterations in prices «s the result c£ the duties were a rise in, oats and New Zealand cheese. Both blue amd grey peas must improve considerably in value, as this 'market Was almost entirely dependent on New Zealand for these articles. Tasmania and; the other State producers would be able to get a 'better price for their products in consequence." In the issue of ito-day, Mr Edward Denha«i > of the firm of Denham Bros., of Sus•ex Street, a well-known produce firm largely interested in the northern New South Wales districts, tells a "Herald" reporter that New South Wales under normal conditions could supply h«r own requirements, and 1 it was only in case of a droughtthat the State required 1 to import in these lines. The quality of butter had vastly improved in late years i while there were many brands of cheese 'made here equal to the best New Zealand article. Under normal conditions, therefore, no revenue might be expected from these lines, and Queensland would be able to supply all the deficiencies in these products. In bacon we were entirely independent of New Zealand, and -supplies, from there for some years past had been very trifling. Then the local and Queensland hams were better than the New Zealand article, which for some years past had been sold at a lower price than the local production. The duty that has besn placed on hams -would, therefore, prov* i» absolute bar" to their importation from New Zealand. In the matter of eggs, the local pi-oducticm has enormously increased during the past year or two. Formerly Adelaide Avas the chief source of supply. The Tariff would be entirely prohibitive to the importation of ..eggs, from China, the chief source of outside supply last year. In, onions the Tariff, Mr Denhami said, would largely benefit Victoria. For some reason ihe onions grown in New South Wales did mot keep so well as those of Victoria, hence the product of this State is required to be used almost immediately. In potatoes, enough could be produced locally for the requirements of this State, but the producers were eo heavily handicapped by the teavy railway charges over the mountanus from .tie New England or Goulbourn districts that the protective duty now might assist them in. sending to Sydney. Wheat, bran, pollard, maize, diaiy and chaff would produce very little, it any, revenue, whilst the oats* with few exceptions, produced in ■New South Wales in the past had not been of good colour or so clean, as the New Zealand oats, which were usually of such even quality tiat they hod to be purchased on a specific grade* Token as a whole, from a. produce point of view, the Tariff was not likely to be productive of much revenue, -while it would sbe of undoubted benefit to the cheese industry, pig-raising, ei«. One thing, however, was very noticeable. The only timber used in, the making of 'butter boxes, If or packing '^he article for local andi export »3e, was the New Zealand white pine, upon which a duty had) 'been placed. As thefce >was no other wood tasteless and void of smell 4hat could be used for such a delicate article as butter, it should aiot be taxed. This wood, known as kahikaitea, ■was Taihieless for any other purposes than butter boxes, und the only source of supply was from New Zealand. There was a tree grown in Queensland that was used, but ihe believed there was bo wood in New South Wales suitable for such a purpose. One ot two had been tried, but abandoned, «s they either gave a smell or taste to the •butter. _ \ In the same issue, "Give and! Take" writes: — " There can be no doubt that in the tariff proposals placed before the public by tho Federal uovernmen't a dead set has been made against New Zealand. The consensus of opinion is that Ihe effect of the proposed tariff will be to shut out the New Zealand producers . from the Australian market. There as no question here of revenue combined with protection. IE is a policy, as far as New Zealand is concerned, of absolute restriction, and this apparently because New Zealand refuses to come into the Federation, lucre .is a combination of petty feeling and shortsightedness about this policy that? one would hardly expect. Already we hear «f retaliation, the. usual result, by the way, of prohibitive tariffs, and already we hear talk of an effort to make New Zealand independent of Australian produce;. This is the first step towards hostility, and nothing could show more clearly the Tinstatesmanlike attitude of the Federal Government. If we cannot have New Zealand in the Federation, and there are various reasons why we cannot, let us at least Uiave their goodwill. We have enough natural enemies "without snaking special efforts to turn our friends into foes. It is to be hoped that the Federal Parliament in its •wisdom will see fit to take back this palpable affront to our neighbours and friends, the 'New Zealanders." The Parratnatta correspondent of the ** 'Herald "writes: — "The general opinion regarding the Commonwealth tariff is that sit will have a crushing effect on me "working man, his purchasing power being Teduced from 20 to 25 per. cent. The fruitgrowers hardly know how it will, affect them. At present, however, they do not ■ consider that the duty imposed on Sicilian lemons will Oiave the effect of keeping them out of the market, and it will take a higher duty than Is 2£d on a 601b case to knock it out of ithe market. In regard to the New Zealand market, which is a profitable one, in spite of the present duties, fears are entertained that New Zealand will adopt reprisals "that will totally bar. our fruit from entering their . ports. The Parramatta Woollen Mills consider that the tariff will benefit them largely, and with the tariff against outfide of Australia and inter-State Freetrade, they expect shortly to double the output and find employment for a large numDer of hands." The "Evening Ne\*>," of yesterday, says editorially: — "In regard to the tariff it may be noted that what we said cu Wednesday about its being in some portions specially aimed at New Zealand has come to be the general opinion ; -at least that is the view taken in New Zealand itself, where the papers are demanding on export duty on baulk timber so as to get even in regaird to the duties on sawn timber, which are rega-nled as mining 'the New Zealand sawlnilers for the .'ake of those on the Continent. Cheese exporters are also growling, as are maize growers, and Mr Scddon is mure than ever set upon hk island schemes *-r> as in be independent of Australia in regard to sugar and fruit. The Federal Government and its Department of External Affairs seem in a fair way to «ni up a ymall tariff war to inaugurate ihe new Commonwealth. The Government has bungled so much thab there can be little doubt that if it were running on its own it would manage to geb into « war of another sort before a. year wais out." The i'Uews- thus compares this tariff

with the Dibbs or protective tariff -which once obtained in New South Wales, and had a bad effect on the New Zeaa-nd trade: — Animals (cattle, sheep, 'table pigs and poultry) — Federal 20 per cent ad valorem, New South Wales free. Arrowroot — Federal Id per Ib, New South Wales Id. Bacon and hams — Federal 3d per lb, New South Wales 2d. Butter and cheese — Federal 3d psr lb, New South Wales, butter 2d, cheese 4d. Candles— Federal l^d, New South Wales lid. Eggs— Federal 6d per dozen, N«w South Wales 10 per cent. Grain and pulse— Federal Is 6d per cental, New South Wales, barley, maize, oaits,- peas, wheat, beans lOd per cental. Bran and pollard— Federal Is per cental, New South Wales Is. Hay amd chaff— Federal Is per cwt, New South Wales 10-s per ton. Jama and jellies— Federal 2d per lb, New South Wales 2d. Potted meats — Federal 20 per cent ad valorem, New South Wales Id per lb. Preserved meat, tins — Federal 2d per lb, New South Wales Id per lb. Preserved milk— Federal l£d per lb, New South Wales Id. Potatoes— Ff^leral Is per cwt, New South Wales 10s per ton. Apparel and; attire, woollen and silk — Federal 25 per cent ad valorem, New South Wales 10 per cent. ■ Blankets, carpets, etc.— Federal 20 per cent, New South Wales, blankets 10 per cent. Woollen piece goods — Federal 20 per cent, New South Wales 10 per cent. Shirtings, coatings, trouserings, flannels, ■etc. — Federal 20 per cent, New South Wales 10 -per cent. Messrs H. Prescott and Co., whose views I sent you, told a " Herald " reporter that with regard to grain New Zealand had previously practically supplied this market with oats. With a duty of about 8d psr bushel importations would be few and faf between, and while our own, prices will advance to such an extent that oat^ would not be such a .common feed as formerly they would not advance sufficiently to allow of our importing from New Zealand. The tariff, therefore, in this case could scarcely, it was pointed out, be called revenue producing. Potatoes and) onions were about the only items in produce which appeared to be in any way revenue producing, because at certain periods of 'the yean: it was quite possible that our own State may not be able to supply our markets, at least that was the ease when. New South Wales was under protection before, although the duty •was only 10s per ton on potatoes instead of 20s as now. Still, in a season such as we Ibave had during the year drawing to a close £1 per ton on either potatoes, or onions would mot have interfered in any way. with New Zealand pveduca finding a. lucrative market here. In the "Daily Telegraph" Mr James Pemmell, the proprietor of an extensive milling plant and produce business, said that he thought that the result of the duty on potatoes, onions, and .oats would have tbe almost immediate effect of com- ] pelling New Zealand to enter the Federation. That country, he considered, depended so largely on the Commonwealth, for a market for her agricultural products, her chief mainstay, that she will be forced to federate. New Zealand, he said, grows about nine-tenths of the quantity of oats produced in Australasia, and Australia, is her principal outlet. Just now she exports largely to South Africa, but as soon as the war is over, and it cannot go on for ever, that market will be denied her, for there iii ordinary times maize is almost solely used for the feeding of stock, and it is only because of the English officers, who have been accustomed to feed their horses on oats, that the demand is made. In this State also maize is th* natural food for stock, and is chiefly used by owners of horses, and they are not likely to pay the higher price which will have to be charged if a. duty is placed on oats. In to-day's "Telegraph" a Parraniatta special writes his interview with fruitgrowers. "What has to be considered," said another grower," ".is the effect on trade generally. Outside our own boundaries our best customer for a long time has been New Zealand. Just now we are doing all we can to induce her to admit our crrapes. If she removes her nonsensical prohibition, which has nothing really to do with phylloxera, the benefit to New South Wales will be more in a year than all she will pay in duty under the new tariff, but will she, in view of the unneighbourly way in. which we. are putting on duties on all her produce? Your paper published an interview with Mr Moritason, in which he was pretty plain on this poiufc. I know Mr Moritzson, and he would not speak rashly on such a matter. You recollect he hinted that the dealers over there would not be likely to .co-operate in getting any : restriction removed unless we were con- | siderate in our treatment of their produce, and as a matter of fact we are deliberately shutting the wfcole lot out, or something , near it, instead of increasing facilities. I should be more than surprised if she does j not increase her present light, duties on our fruit. So far as fruit-growers arc concerned, we stand to lose a good cus- ! tomer or pay heavily for the retention of '• the trade. At the present time New Zealand admits oranges, mandarins, passion fruit, bananas, cocoanuts and pineapples free. There is a duty of Id per lb on apples, pears, . plums, cherries, peaches, nectarines, apricots, medlars, quinces, and tomatoes — that on apples and pears being reduced' to a. halfpenny from July 14 to the end of the year — and a. halfpenny per lb on currants, raspberries, strawberries, blackberries «nd lemons. This is too small to restrict trade to any appreciable extent, and is not considered a hindrance to developing our trade. If, however, by way of retaliation, or to induce concessions, the duty is raised on summer fruit and anything sarious put on citrus and passion fruit. New South Wales stands: to lose heavily', since island-grown orange? are becoming moire and more popular. The continuance of the prohibition of grapes, however, would in itself be revenge enough, and this could be, as heretofore, disguised «s a precaution against phylloxera." A representative of the "-Australian Star," which is the only protectionist daily here, and upholds the imposts, says: — " Oaten foods will be affected, and the explanation of this is simple. At present New Zealand oats are most largely used .simply because the locallv-grown article is not available. The conditions are against it. -We can produce in parts of this country as goodj if not better, oats than are imported from anywhere, but while the railage runs into a, big sum the freight from New Zealand is only a matter of shillings."