LIBERALS AND FREE TRADE

Waikato Times, Volume 108, Issue 18166, 3 November 1930, Page 4

LIBERALS AND FREE TRADE

Mr E. D. Simon, M.P., and Mr C. G- Renold , expressed their doubts about Free Trade at a recent meeting of the British Liberal Summer School. Mr Simon asked how, if protection were ruled out, the export trades could be expected to recover, and whether it were certain that a 10 per cent, duty on all imports other than raw materials must do more harm than good, even though the proceeds were directed in some way to helping the export trades. Protection as an aid to exports is a new idea. The more usual suggestion is that whatever other harm it may do, it will conserve the home market. The essential question for this generation is whether, it will give more employment in the home market than it will destroy in foreign markets. Mr Reynold suggested one or two cases in which it might do this. It is always possible to construct hypothetical cases in which protection might be used to advantage—the in- | l'ant industries argument is the com- | monest, but there are several— and if j Britain’s poltioians were perfectly wise : and perfectly honest it is possible that even in real life occasions might arise when a temporary tariff would be useful. The chief difficulty—out of a great number—arises out of the word temporary. Tariffs, practically

speaking, never are temporary. Nor, certainly, are Governments . wise and honest in the sense and to the degree that the argument requires. But it is a good thing that Liberals should look at free trade reasoning afresh and see whether there is anything in the protectionist claim that modern developments have in some way invalidated the old arguments.