The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-07-11
NEW BOOKS.
,,,u,cr,aIn Scheme ImpractIcable.

A., fh,,nberlain's proposal to tax imported
,,aodsnl(Ts in order that preference may
w. given TO Colonial grain, attentionshould
=" gG,r.cted to a lucid discussion Of the sub
Il, n volume of The Victorian Era
gS s.si entitled "The Free Trade Movement
I'd I,s Results" by G.. Armitage-Smith
III c Stone & Coz. The author, who is
Juror on economics for the London So
Dio,,, for the Extension of University Teach
W., berins with reviewing the history OF the
S.eo trade movement in the United King
,,or, and, after explaining why free trade
,ao NOT been adopted in other countries,
..ooeeds TO comment on the reaction against
s.oo trade in England itself, and concludes
,'.,b an examination Of the project which
10 now advocated by the Secretary for the
Colonies.
The author points out that the project
% n customs union or common system OF
cnstom duties for the British Empire. has
hoen nut forward in three forms, every one
- which is confronted by objections SEEM
;r,lv ips,lrmountable. 1t is conceded that
, simple customs union based upon the
sxistiur British system OF taxation for reve-
mo oulv. would be a decided benefit to
British manufacturers, but such scheme
woud necessitate the adoption Of free trade
bv fine Colonies. a change for which they are
NOT prepared second suggestion, based
an the protective idea Ia that Great Britain
and her Colonies, following the examples OF
the German "Zollverein" and Of the United
States. should adopt free trade within the
Empire, coupled with common protective
tariT against other nations. This policy,
as involving the adoption OF the protective
principle by Great Britain, is open to the
same objection on her part as was the for
mer proposal on the part Of the Colonies.
Az a middle course, it is now proposed by
Mr. Chamberlain that some arrangement
should be made for placing trade within the
Empire on more favorable footing than
that possessed by the traffic which is car
ried on with foreign countries, Or in other
words, that the Colonies should reduce their
tariffs on imports from the mother country.
and that Britain. in her turn, should place
high duties on all commodities coming
from foreign countries which her Colonies
are able TO produce. the Colonial products,
of course, being admitted free Of duty.
This policy rests on the application of the
protective idea in a modified form by the
mother country.
Il is only tho third and last-named pro-
posal that need be considered at this time.
Keeping this project exclusively in view, Mr..
Armitage-Smith reminds us that Britain's
trade with the Colonies and India amounts
TO only about a third of her total commerce
with foreign countries. The effect. there
fore. of adopting Mr.. Chamherlain's plan
would be TO tax rs per cent. OF Britain's
imports, in the hope that these might be
ultimately supplied from Colonial instead
Of foreign sources. Our author considers
the consequences of such tax, bearing in
mind that Colonial producers Of raw ma
terials would demand, and, II the mother
country is to be consistent, would receive,
a preference equivalent to that granted to
Colonial producers OF breadstuffs. In the
end, therefore, the taxation OF foreign i'm
ports not only would raise the price OF
food products to British consumers, who
would, accordingly, suffer. but would also
prove equally disastrous to British indus
tries, by raising the cost Of raw materials.
further calamitous outcome OF the new
fiscal programme would be a reduction Of
British exports to foreign countries, and a
resultant shrinkage Of the industries which
manufacture these exports. Moreover,
such dscriminative taxation being an act
of commercial warfare, disordering trade
and damaging foreign industries, would
provoke unfriendly feelings, and, perhaps,
acts Of political hostility. The established
order Of traffic between the United King
dom and foreign countries would be dis
located Our author also recalls the fact
that had Great Britain in the past retaliated
upon all who placed hostile tariffs on her
goods, the Colonies would have been among
the chief sufferers and he deems it I'M
reasonable now to expect Great Britain to
impose duties in their favor by which she
would suffer loss, while they are still, "a they
have been, free to tax her goods, and to
buy in other markets.
Equally difficult would it be for the Col
oncs to abolish their duties against Great
Britain, or even to give the mother country
a preference of substantial value. The
prime difficulty in the way of any form of
commercial union resolves itself into con-
fict of commercial interests The Colonies
are mainly producers Of food and raw ma
terals; they send to Great Britain vast
quantities Of grain, beef, mutton, butter,
I cheese, &c, and it is proposed that they
should increase these exports, until they
become the chief external sources Of Eng
lands supply. This form Of progress, how
ever, even if it were ultimately beneficial to
the non-agricultural population of Great
Britain, would not be viewed with favor by
British agricuturists who want protection
against all external supplies to the British
farmer, who desires the encouragement of
his industry, it would be no consolation to
know that, ultimately, all the supplies COM
petlng with his native products would come
from the Colonies On the other hand, the
Colonies have nearly all adopted protective
,arIt's against manufactured goods for the
purpose of establishing manufactures in
Their own lands They are committed to
The protective principle, and the duties are
IN iul operation; capital and labor have
been diverted to manufactures dependent
upon duties Preferential treatment on
Doth sides will, therefore, require the duties
imposed by the Colonies on manufactured
articles to be reduced so as to admit on a
greatly increased scale the goods OF the
mother country, which already, in Austral-
ASA at all events, are the chief competitors
Oh Colonial manufactures. Are the col
ohlSts, asks the author of this book, who are
Engaged in these fostered trades, willing
Io make such q sacrifice; to reduce their