Arizona republican., 1914-06-04
C0L0NY'S
 NEW TARIFF
While It Will Avoid an In- crease of the Cost of Liv- ing the Principle of Pro teotion of Industry Will Be Recognized

CAPETOWN, s. A., June 3.-The new tariff about to be introduced in parliament by General Smuts, min ister of finance. is notable f'rst for the absolute rejection of all tariff changes likely to increase the cost of living, and secondly, for it's frank acceptance of the principle that tar ifs should be used for the encour- agement of local industries. The eX- ceptional circumstances now obtain ing in South Africa discount all or dinary high protection arguments. The cost of living is higher than in any other civilized country The ar gument of free traders that this is due to the eXis 'pg tariffs is not
 borne out by the facts. One of the chief causes of the sparsity of popu lation is the distance between mar kets and the length and cost of transportation. Another cause is the | high rents. those in Capetown, for i example, being double those existing in Manchester and Birmingham. This | is attributed by the economic com
 mission to local causes.
 The fact of the extremely high cost of living is, however undeniable, and
 the government therefore holds that tariff increasing it would do more harm than good to local industries,
 more especially as the country can
 not hope for many years yet to be , independent of the importation of l many commodities of necessity for general utility General Smuts takes the point of view that free food is not an automatic principle, but that 2 tariff policy depends upon local requirements. He has there fore rejected the main recommends tons of the Cullinan Commission, 1 which reported in favor of d general ! increase of protection, including the duties on wheat flour, sugar, tea, boots, shoes clothing. and furniture.
 MT Macintosh, the chairman of the minority, estimated the cost of these increases to the consumers at $5,000,- 900 annually. These were rejected
 wholesale by General Shuts, in view
 of the circumstances already referred
 to.
 l The proposed increases in the du- ties affecting the cost of living are only trifling, and it is not unlikely that they will be abandoned. There
 gre increased duties for revenue on
 plate. jewelry. motor spirit, and a 1 few other commodities. The in f crease most likely 70 affect English
 exporters is that on high class con- | fectionery. While it is intended | chiefly for revenue, this increase is likely to tell heavily in favor of
 South African chocolate makers. Lo- cal industries are also favored by i tke additional sixpence per ID. on 1 imported cigarettes and unmanufac- tured tobacco, and the increase in i the duties on leather manufactures.
 except shoes. and on saddlery and
 bespoke clothing
 The encouragement of local indus 1 tries, however, is chiefly to be secur-
 ed by reductions of the duties on raw material and partly manufactured l goods. Thus the tariff indicates i which nascent industries the gov ernment considers worth while fos- 1 terlnS. The QutleS are reduced on
 raw cocoa, amber for pipes, hair for
 brooms and brushes, canvas for tents
 and sails. saddlery and harness, fur
 niture, dye stuffs. and unrefined gly cerine. The tariff changes are in no
 way revolutionary. Except in the
 case of those specially for revenue
 they are generally downward in tend
 ency, but they are based on frank
 recognition of the utility of tariffs
 for fostering home industries. The
 protective effect of reducing the duty
 on raw material, while not changing
 the duty on the finished article is equivalent to raising the duty on the 1 finished article
 The new tariff has been well re-
 ceived.