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Without going too much into detail it may be useful to take a general survey of those sections of the tariff which are of most interest to British manufacturers and exporters, with a view to noting any changes likely to have a material effect on the import trade :-
209. Cotton Piece Goods. The ad valorem duties on cotton piece goods have, with one exception, been increased by 23 per cent., and the specific duties have evidently been dealt with on the same principle, but in their case the fact that the duty is expressed in gold units but collected in silver at the current rate of exchange renders it impossible to say in any particular instance what per- centage of the actual value of the goods the duty represents. In itself the ratio of increase appears to be hardly sufficiently high to affect the market very materially, but coupled with the great advance in the landed cost of the goods themselves owing to the heavy fall in silver even a moderate addition to the duty will restrict still further the capacity of the market to absorb the more expensive cloths.
The duties on raw cotton, cotton yarn and the cheaper grades of thread remain practically unchanged, with a slight increase in the duty on the higher-priced embroidery cotton and a considerable reduction in that on cotton waste.
In made-up cotton goods, however, we find the first examples of the introduction of much heavier duties, presumably designed to protect home industries, the rates on laces, trimmings, socks and stockings, towels, clothing and other articles having been approxi- mately doubled, that on blankets increased by 150 per cent., and in the case of handkerchiefs an ad valorem duty of 15 per cent. has been substituted for specific duties on a 73 per cent. basis.
The alterations in this section of the tariff are likely to affect the trade very considerably, but Japan is the country chiefly concerned, British interest in the importation of these articles—handkerchiefs only excepted being already negligible.
210. Wool and Manufactures Thereof.-With the exception of wool, woollen yarn and felt hats, the commodities comprised in this section have fared badly in the present revision, the general advance in the rates of duty being very substantial. The effect has been greatly accentuated in the case of woollen piece goods by the substitution in item No. 97 (which covers the bulk of the trade) of specific duties, based on weight per yard, obviously calculated without any regard to current prices and equivalent in the case of some cloths to well over 100 per cent. of the value. The Chinese Government has now decided to give importers the option of paying duties on an ad valorem basis, at the rates of 30 per cent, and 35 per cent. respectively, in the two classes into which this item is divided.
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211. Silk and Manufactures Thereof.-Artificial silk has been still more heavily penalised, presumably as the result of agitation by Chinese silk producers. The specific duty of Gold Units 58 per picul (about 8.58d. per lb.) imposed on yarn, representing an ad valorem rate of about 50 per cent. on the lower grades mainly imported into China, seems likely to affect the trade seriously, and as a very large proportion of this yarn is used in the manufacture of goods for re-export the imposition of this heavy duty is also calculated to have a very prejudicial effect on a growing native industry.
All through this section the duties have been assessed at a very high figure, and whilst it is permissible to doubt whether Chinese silk manufacturers will derive much benefit from this measure of protection, it seems at least probable that the demand for all silk and artificial silk goods will be curtailed.
In the case of yarn, the effect will be felt most seriously by Italy, which supplies most of the low grade product, but British artificial silk goods and mixtures may also find difficulty in bearing so considerable an addition to their cost.
212. Metals and Manufactures thereof. In the case of metals, the new duties show in most instances a reduction on those pro- vided under the old tariff, but on electro-plate and other metal- ware the rates have been advanced and now range from 20 per cent. to 40 per cent. ad valorem.
A step in the right direction has been taken by reducing the duties on machinery and scientific instruments, even that on sew- ing machines having been lowered from 12 per cent. to 7 per cent. Typewriters and other office machines form the only excep- tion, the duty having been raised from 12 per cent. to 15 per cent. There is an increase in the duties on motor vehicles, arms and ammunition, watches, bedsteads, and other articles, whilst reduc- tions are seen in the case of railway and tramway materials and certain types of electrical supplies.
It would not appear that British products are directly affected in any special degree by the alterations introduced in this section, but where duties have been increased, the probable effect will be to restrict still further the market for the better class article.
213. Food, Drink, etc.-On most items in this section, the duties have been raised to a much higher level, and whilst only a small proportion of the goods covered is of any interest to British exporters, the higher rates now imposed on such articles as biscuits, butter, confectionery, jams and other foodstuffs, and on wines, spirits and beer, may tend to decrease consumption and so affect our trade in these commodities.
214. Tobacco. The specific duties (which now include the consolidated tax) on cigarettes have been raised to amounts assessed on the basis of 50 per cent. ad valorem, and there is reason to fear
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