October 16, 1909.]
extent one of the least pressing sources of revenue is a duty raised from imports; and provided that the burdens were fairly distri- buted this has always been held to be quite consistent with the principles of Free Trade, and amongst others our Colonies without exception have adopted this system of tariff för revenue. On the other hand, the Home country, as not many years ago finding itself the larger producer and exporter, had learned from experience that lower duties on what it had to bring from abroad reduced the cost of production, and accordingly set remove the duty on the great majority of its imports. So long as foreign countries were content to accept the situation our exports had an undoubted advantage in the markets of the world, and the wealth and population of the country grew by "leaps and bounds." We had no object in promoting preferences, and we were content | that all should share alike.
itself to
-
The first promoters of Free Trade had reasoned all this out, and, their premises being undoubtedly correct, the foreseen results duly came about, and a period of marked prosperity followed, but even at the start there was seen a rift in the lute. The Home population was increasing, and the problem of food, aggravated by bad harvests, became a pressing one. It was indeed this pressure that finally prevailed in the accep- tance of the Free Trade doctrine To prevent the Home-lands being thrown out of cultivation, when they were competent, to feed the entire population, heavy duties on foreign food stuffs had been imposed. With increasing population and bad harvests, the feeding of the workers became a matter that could not be neglected; after many efforts, and the lapse of years, the necessity of freeing food supplies could no longer be resisted, and this it was that resolved the nation to adopt the policy of freedom of import all round. As above stated, it was perfectly successful, so far as things went on in the old routine. Tlie not perhaps un- natural result was that the principle of Free Trade was elevated into a fetish, which all were expected to bow down to and worship; and it became a subject of wonderment to its votaries why the whole world did not ac- cept unquestioned the new Cult.
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CHINA OVERLAND TRADE REPORT.
mined to apply the same principle to mann- factures generally.
331
sides have forgotten, and the Unionist camp has been in consequence split into two from simple want of knowledge. The country does not desire Protection, and wishes to be relieved of ill-effects-all the worse that they are forced into it under the false as- sumption of Free Trade.
A DIPLOMATIC INDISCRETION.
(Daily Press, October 13th.)
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*
One tele-
Nothing, of course, could be further removed from the principles of Free Trade; but Germany reasoned, what had Free Trade ever done for her? It had on the contrary thrown the trade of the world into the hands of Great Britain. Unfortunately, as We mentioned above, Free Trade had in Eng- land grown into a fetish, but, in the process its object had been forgotten; and it had come down to be merely an unreasoning The telegram which explains the recall of antipathy to Customs duties of all kinds. Mr. CRANE when he was on the point of The new race of British Free-traders saw in embarking at San Francisco for China to the movement nothing more than an oppor- take up the post of United States Minister tunity of procuring cheap goods; the fact to Peking, is unmistakeable confirmation of that the cheapness came from the especial the rumour that the United States Govern- horror of all good free traders, State bounty ment entertains serious objections to the was carefully blinked. The Cobden Club | Agreement concluded five weeks ago between was, in fact, supporting actively what Japan and China regarding Manchuria. COBDEN in his lucid moments had stigmatis- We are not acquainted with the nature of ed as the greatest of economical sins! The the statement alleged to have been made by consequence was the bankruptcy and partial Mr. CRANE at Chicago, but we may ven- ruin of the West Indian Colonies, and the ture to draw from this morning's telegram necessity of spending good money to restore the conclusion that the cables which have some sort of prosperity. But one financial |been reaching Japan within the last few sin paves the way for others as clearly weeks are based on the offending utterance opposed to the fundamental principles of attributed to the new Minister. Free Trade. The import of cheap bounty-gram dated from San Francisco, September. fed sugar gave rise to a new industry in 28th says: The United States Government England: it rendered possible the manu- is reported to be actively engaged in pre- facture of cheap confectionery; and Eng-paring a protest to the Japanese Government land began to manufacture for export this regarding the new Manchurian agreement artificially produced commodity. It need between Japan and China. The United hardly be said that the trade was not a States Government is taking this action in wholesome nor a legitimate one, dependingssupport of the principle of the open door, it lid on alien State aid, and existing at the based on the treaty signed by the late Mr. cost of the impending ruin of our once inost prosperous Colony.
HAY ten years ago. The United States But the absurdity of Government is now engaged in collecting the the position had not yet been reached in necessary information from Tokyo and Peking full. A Unionist Government, mainly to form the basis of the protest." Evidently through the influence of Mr. CHAMBERLAIN, this was information not intended for the had succeeded in showing some of the
ears of Japan just yet, for it appears the continental Powers the suicidal effect of the Government of the United States, before bounties, and with their goodwill had placed making representations to Japan desired a countervailing duty on the bounty-fed the new Minister to sound the Ministers of sugar imported. One of the first acts of a other Powers at Peking with a view to professed Free Trade Government on its ensuring the support of at least a majority accession to office was, under pretence of of the Great Powers which accepted the restoring freedom of trade, to remove the Open Door policy. We gather from the state- duty; and here comes in the most absurdments published in America that the Govern- part of the entire proceeding. The removal ment has strong objection to Articles III. of the duty was actually accomplished at the and IV. in the Agreement, granting to Japan Perhaps it was the very fact that the demand of the confectionery manufacturers, mining concessions which are held to manufacturing industries of the world were and was demanded by them on the ground defeat the principle of the
open door" one after another being transferred to that without the bounty cheap beet sugar that all principal Powers have definitely British soil that aroused the fears of the was impossible, and the continuance of the undertaken to maintain. By Article III. continental peoples; at all events, Free Trade duty meant the decay of the bounty-fed in- the Chinese Government recognises the to Britain's advantage did not commend dustry. Such was the result of the first right of the Japanese Government to itself, and gradually nearly all the continen- pretended Free Trade Budget. The in- work the coal mines at Fushun and tal peoples returned to undisguised Protec-portant fact that the maintenance of the Yuentai, and the Japanese Government on tion, but with comparatively little effect.
their part undertake to respect the full sovereignty of China and pay to the Chinese Government a tax on the coal produced in those mines. If the Powers have any objection to this particular article, it ought to have been raised three years ago, for “all coal mines" in the regions of the railway- were definitely ceded to Japan by the Ports- mouth Treaty, and the new Agreement simply requires an acknowledgment of Chinese sovereignty by the payment of a royalty on the coal taken out of the mines. Article IV. is more open to question. It reads: All mines along the Antung-Muk- den Railway and the main line of the South Manchurian Railway, excepting those at Fushun and Yuentai, shall be exploited as joint enterprises of Japanese and Chinese subjects upon the general principles which the Viceroy of the Eastern Three Provinces and the Governor of Shingking Province agreed upon with the Japanese Consul- General in 1907." How far these “general principles " may mitigate this clear infringe- ment of the Open Door policy we are unable to say, as the document in question has not
artificial industry was being carried on at the cost of the West Indian Colonies, who were being bled to support it, was by the new generation of would-be Cobdenists for gotten, or conveniently ignored.
It was under these circumstances that a new departure was determined on. Great Britain had grown rich because under the stimulus of cheap production she was able to underbid her rivals. She had so effectu- Now the unfortunate part of the present|| ally occupied the land that a resort to agitation for Tariff Revision is that its similar methods would not be sufficient; advocates, from overzeal, probably, as well still it was seemingly possible that by as from ignorance of the accepted truths of cheapening production by grants of money the fundamental principles of freedom of direct, German manufactures might be arti- trade, show themselves as incapable of appre- ficially hatched. The case of sugar was an ciating the true financial conditions. There instance in point. After the Napoleonic are certain fundamentals which are indis- wars a vast amount of soil was left untilled putable, but the tendency, since the time, at for want of a market for the crops; might least, of J. S. MILL, has been to confuse these it not be brought again into cultivation by under a mass of heterogeneous conclusions, utilising it to grow beet, from which the which are by no means fundamental, but chemists had proved that it was possible to merely accretionary; and it is round these extract sugar? True, it could not compete points that controversy has been centred Free with the cane sugar from the West Indies, Trade, though the principle is undeniable, but that could be remedied by putting a has to be altered in its details to suit chang bounty on it; the State would be repaid by ing conditions. What under certain con- the increase of population thereby induced. ditions we have seen may be Free Trade. The scheme proved so far successful that it under others may become unblushing Pro- afforded an object lesson, which at once tection. This is the fact which in the appealed to the nation; and it was deter-present moment of heated controvery both
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