Omaha daily bee., 1917-04-22
COTTON MILL MEN
GREATLY AROUSED
Action of India in Placing Pro-
tective Tariff is the Cause
for Alarm Now.
FOUR PER CENT PROPOSED

Correspondence of The Associated Prcss)
London, March 25.-The worlds
greatest cotton manufacturing COM
munity, Lancashire, is tremendously
aroused by the action of the govern
ment of India in placing protective
tariff on cotton goods. The spokes-
men for the cotton interests call it a
disaster and declare that it will prove
the worst hardship the industry has
suffered since the blockade of the
southern states during the American
civil war. Entirely without warning
to them came the announcement by
Sir William Meyer, the financial sec
retary of India, of a straight duty OF
4 per cent which operates against
other parts of the British empire as
well as against foreigners.
That the object OF this increased
taxation was to cover the contrlbu-
ton of l00,000,000 pounds which India
will make toward the war expenses OF
the United Kingdom does not seem to
soften the blow. Sir William Meyer
announced that this step had been
taken with the approval of the home
government and when members OF
the House of Commons proposed de-
lay Austen Chamberlain, the secretary
ior India, informed them that the new
rate had already gone into effect.
Cotton a Great Asset.
The Indian cotton trade is one OF
England's most important and most
carefully murtured commercial assets.
Lancashire imports yearly some t7O,-
100000 worth OF cotton from America
in normal times aud its mills turn
out about El70,000,000 worth of FIN
ishcd fabrics. In the last year before
the war 9j7000,000 worth was abb
sorbed by the Indian market. China
has been Lancashire's second best
foreign customer, but Japanese COM
petition has been steadily absorbing
the Chinese markets during the last
few wears and has also been gaining
ground in India. Lancashirc's chief
rival has been the cotton mills of
Bombay, but for twenty years the
Lancashire exporters have enjoyed
practical free trade with India. To
insure this situation and at the same
time produce revenue the Indian tar.
if of 3l per cent had been bal
anced by an excise tax of ~ per
y cent on domestic goods, which left
the Indian product without any ad-
vantage oveK the imported. Now the
government OF India by raising the
tariff to ~ per cent, without any in
crease of the excise taxes, gives the
native factories a protection of 4
per cent.
Through this reversal Of policy the
Lloyd George government and the
government of India, between them,
have set ablaze a controversy smoul-
dering for many years which con-
Germs the basic principles of British
colonial rule and have kindled it at
an hour when tariffs are political fire.
brands.
Justi6es the Duties.
Mr.. Chamberlain in the House OF
Commons justified the new duties by
India's decision to contribute 9100,-
100000 to the costs of the war. The
Manchester Chamber of Commerce
replied Immediately by passing reso-
lutions which applauded the Indian
contribution to the war, but asked
for the postponement of the tariff
question until after the war, or un-
til the forthcoming imperial confer
ence has considered the fiscal policy
of the empire. All the other organi.
cations are following its lead. The
Employers Federation of Bleachers,
in resolutions, learns with alarm" of
the tariff and urges the Chamber of
Commerce to oppose it unless a cor
responding excise duty be placed upon
Indian manufactures"
Meantime the new tariff is the
law and it is not likely to be repealed.
The cotton manufacturers of Lanca-
shire, as we'll as those of Japan and
of the United States, whose interest
is not small, will probably have to
accept the fact that the Indian mills
have 4 per cent protection and make
their business arrangements accord