The Waikato Times With which is incorporated Tho Waikato Argus. FRIDAY, NOVEMBER 11, 1921. THE TARIFF

Waikato Times, Volume 94, Issue 14798, 11 November 1921, Page 4

The Waikato Times With which is incorporated Tho Waikato Argus. FRIDAY, NOVEMBER 11, 1921. THE TARIFF

The tariff which 'lias been brought forward has evoked the usual number o f pronouncements from the representatives of various trades and interests, who each look at it from their own point of view. II lias certainly avoided the pitfall of protection, and it is also liberal in ils provisions for reciprocity. It has been pointed out thai Canada and Australia do not extend their preference to New Zealand, but confine it to Britain, and there are those who would have us take the same narrow view of the Empire. We are glad Mr Massey has not done so, and we trust .that he will stand out against any pressure in this direction. The intermediate tariff which is to be leved in those .eases where reciprocity has been arranged with a foreign country is an effort to try and meet the exclusive spirit that is so frequent, and il has the merit of fixing the rate by Parliament instead of leaving it to a Minster, as has so frequently been done of laic. Any comprehensive criticism of the tariff can only be made by a Customs agent, as no_ other man has the opportunity of handling a sufficient diversity of goods. The headings in the tariff convey but little meaning to the ordinary public, who do not. realise that the names of the various lines are often not those by which they are bought and sold, but are ancient phaseology hallowed by long custom. Although the intermediate Tariff has been proposed as a method of inducing concessions from foreign countries, it does not seem to meet with approval by American representatives. They point out that the chief impprts from the United Stales are motor cars, benzine and tyres, and flint no offer of any reduction in tariff is made in any of these- They did not, however, consider it likely that any good would result from any more liberal offer, as' the farming interests were sufficiently strong in the States to prevent the ntroduction of any lines which we might be able to send. This is one more instance of the inability to sec anything but the immediate increase of price which a customs duly causes. The United Slates are in a position which has never before been paralleled. The whole world is in debt to them, both to the State and to persons within the State. The. Americans refuse to accept payment in any shape but gold, and in that shape it is of no use, and is'alreaidy working mischief which their economists and financial men are beginning to recognise. The presence of such unusual quantities of gold is having Dhe invariable result of raising prices, and is thereby cripplng Amercan trade and disorgansing internal conditions- No doubt llus will become apparent in lime, but protection has been preached so long that it will not be easy to teach any different view. In any case America must have suffer ed, for if she had reduced her tariff the influx of good's would have deprived manufacturers of their business. Xo country,can prosper if other countries are impoverished, any more than a storekeeper can flourish in a ruined ! I own. AI ,i low stage of deve logmen I ' smnr euunlries may srlf-eoiifitl'vd. ! hut il means life on a poorer scale than \

Western countries are accustomed to. America has large manufacturing' industries, which require an export trade, and their present condition makes this very difficult The • whole course of development in all progressive countries has been in the direction of a constantly increased exchange of goods, in spite of the utmost efforts of tariffs to hinder that exchange. The interchange will Tiol he entirely prevented, hut Hie imposition of high tariffs undoubtedly depresses trade and causes much suffering. Mm- own tariff halts belwecn two opinions: it is not frankly a revenue tariff or- ,i protective tariff, hut attempts to he both. As is natural, it rails to meet the wishes of those who hoped for protection for secondary industries, while it. affords no relief to the consumer, if we may except the curious lessening of duty on silk. It may be said that those who wanted protection could not have been satisfied, and it is unfortunately true (hat helping one trade commonly injures another. It would probably have given more satisfaction in the long run if the tariff had been strictly a revenue one, with substantial duties upon a limited number of articles that are not produced in the country. Manufacturers are panicstricken at the thought of working without a tariff, yet countries which do without protection arc not without manufactures. When New South Wales was a free-trade State, and Victoria a protected Stale, before Federation, manufacturing was flourishing in the former at least as much as in the latter. To raise a certain proportion of the revenue by Customs duties is a perfectly legitimate method of taxation, hul when the duties are so levied that they benefit one class at the expense (if another it cannot be considered fair or reasonable, and in practice the interest which is protected is rarely successful and never satisfied. A great objection to raising revenue through the Customs is that it penalises the familyman and favours the single man. In the early days of married life a man can rarely hope to save much; he must spend all, or nearly all, his income on his family to do them justice- It is at that time that Customs taxation bears heavily upon him. Later in life when the children are earning or have left home he could better afford taxaton, but is not called upon to pay so much. Customs tariffs are the great foes to family life. At the same time taxation cannot be totally avoided, unless perhaps by (he single man who neither smokes nor drinks, and therefore a certain amount may fairly be taken in the Customs, but it would be well if it were confined to a limited number of articles, with a light ail valorem duty | or. all imports. The liquor interests { are protesting against the increased | duty, but they might as well have taken pattern by the tobacco dealers, and said nothing. When there is a necessity for increased revenue these sources are regarded as fair game and will continue to be until increased duty fails to yield an increased revenue, as happened in England. While it is impossible to regard the tariff as a work of art, it must be admitted that il might have been much worse. The great financiers of 70 and 80 years since increased the revenue by lowering the duties, but the Finance Ministers of to-day have either forgotten this or lack the courage to try it. Short of this is may be said that the tariff leaves little to complain of, and to that extent we may be thankful.