The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-09-29
The Worlds Trade and British Fedora
ton.

The Worlds Trade and British Fedora |
ton.
That imperial. or, as Prof. FREEMAN pre- |
fers to call It, Britannia confederation. ia im-
practicable seems now generally to be nd
mitted by those competent TO discuss tho
subject. Some Of these. however. have
fallen back on what they term a United
Empire Trade League"--a Zollverein or
customs union OF all the peoples under
the British flag which. while enjoying
free trade with each other, should
impose dlscriminatlve duties on tho prod
ucts OF all other nations. It was re-
served for Mr.. ANDREW CARNEGIE to show
in the last number OF the Nineteenth Century
TINT the latter scheme Is every whit Us uto-
plan as tho former. This no does by put
ting the plain business question whether
Great Britain and her colonies would make
good bargains by banding together against
the outside world and giving TO each Other
more favorable terms than to outsiders.
Tho answer Is simply n matter Of figures.
At present the United Kingdom exports
about $50 millions sterling OF her products
yearly. or these. all the British dependencies
take but 81 millions, or less than one-third OF
the whole. What. then. tho United Empire
Trade League proposes Is to discriminate
against customers who consume 169 mil
lions sterling In favor OF those who consume
less than onc-half that amount. The same
proportion Is encountered in British ex-
ports, onc-third being received from British
dependencies against two-thirds furnished
by foreigners. Ifthcre werc prospect OF the
colonial and Indian trade growing more rap
Idly than tho trade with foreign nations 1t
might be held that the future would justify
the sacrifice. But there Is no such prospect
the former trade tending to decline while
the latter is increasing.
There Is another fatal objection to n Pan
Britannia Zollveren. Tho advocates of such
Q scheme assume that foreign nations would
remain passive In the face OF a severe dis
elimination against their products. But Is
It likely that tho United States which are
Great Britain's greatest customer. would
abstain from retaliation II they saw their food
staples subjected to customs duties in British
ports from which the corresponding staples
Of the Canadian Dominion were exempt2 Is
It probable. again, that Germany, which now
takes an amount OF British products valued
at some eighteen millions sterling, would
endure discrimination against her exports
In favor OF those from tho British colonies
Again how would 1t be with tho Argentine
Republic, which now buys British goods to
the extent Of from ten to eleven millions
sterling per annum2 Would she permit her
products to be taxed by British Custom
Houses when she has standing invitation
to reciprocity with the United States2 There
can be no doubt that II Great Britain should
discriminate against foreign products in
favor Of those colonial tho whole Of her
South American trade eventually would DO
transferred to the United States provided
Mr.. BLA1NE's system Of reciprocity should
be adhered to.
In view OF these considerations 1t is OBJ
vious that q Pan Britannia Zollverein would
mean grave loss. II not commercial ruin, to
Great Britain. Mr.. CARNEGIE goes on to
show that for the colonies also 1t would DO .
bad bargain, To begin with Canada, 1t Is
pointed out that at present she finds mar
ket for more Of her products In the United
States than in the mother country, and
fnds 1t, moreover. to her advantage to pur-
chase more from tho former than from tho
latter. Now. II, In pursuance of tho policy
contemplated by tho United Empire Trade
League. our commodities were subjected
In Canadian ports to heavy duties
while competitive British wares wero
admitted free. wo should undoubtcd-
ly exercise the power Of retaliation.
Nor would this DO confined to the i'm
position OF suoh.duties upon Canadian prod
ucts as would effectually bar them out OF
the American market. 1t is also In our
power virtually to bottle up Canada during
slarge part Of the year. We could refuse to
permit tho transit through American terri
tory OF goods In bond destined for tho
Dominion. We could refuse to permit tho
Canadian Pacific to connect with American
railways, and thus compete with
them on equal terms for tho traffic
to and from tho great West and
the Atlantic soaboard. We could refuse to
allow Canadian vessels privileges in Amori-
can ports which nre donisd to American vcs-
sells In Canadian ports. Face to face with
the Canadian Dominion wo possess giants
strength, but We do not use It like a giant,
nor should we do SO unless our noghbor die
eliminated against our products. There is.
indeed. no danger OF any such dlscrimina-
taon. It IL much more likely that, II tho l. lib
eral party shall triumph In tho approaching
election. as 1t may DO expected to do. tho
Canadian Dominion will discriminate against
the products OF the mother country in favor
OF the United States.
II we turn TO AUSTRALIA we again encounter
objections OF o probably insuperable order
TO Pan-Britsnnic Eollveroin. The Austria
4, liam colonies are all protectionist with tho
exception Of New South Wales. whore free
tradeis daily losing ground. They rcly upon
customs dutieo to defray largo part OF
their public expenditure. They even hest
tate to enter into en- Australian confedera-
ton. lest they thereby lose tho customs
revenue derived from goods imported from
one another. II under q Pan Britannia Zoll-
verein they should also lose the income now
forthcoming from imports from Great
Britain. they would DO bankrupt; for the
Australian people would not tolerate the
imposition OF direct taxes to the extent that
would be requisite.
In q word. Mr.. CARNEGIE has demon
strated that . customs union between Great
Britain and its dependencies Is as purely
la ~, 81 SaIa