XXII. Preferential Tariffs
Preference to our Colonies involves putting on tariffs against the outside world. Disguise it as we may, it is Protection.
XXIII. The Canadian Preference
Its results are disappointing. It changed a decline into an increase, but the increase is not proportional to that of other countries which have no preference. As differentiated, the tariff still presses most heavily on us, and favours the foreigner.
XXIV. Our Possible Gain from Colonial Preference
When we deduct imports we could not send, and imports we cannot in reason hope to send, the amount of trade which we might possibly take from the foreigner is quite insignificant.
XXV. The Price of Preference
If we give a Preference, it must be on articles of importance to our Colonies; hence the proposal to tax Food. This should raise its price. But, if it does not, the Preference has failed. If, however, it does, we are taxed in hundreds to give an extra profit of tens to the Colonies. Would not a direct subsidy be much cheaper?
FROM our possible gain by getting a Preference, we turn to ask what is the price we shall have to pay in giving one.
XXVI. How Preference will Affect Agriculture
A rise in prices will induce the return to wheat growing here, with the result that when, in time, prices fall again, our farmers will be caught as they were sixty years ago.
XXVII. The Price of Empire
Summing up, the Return to Protection involved in preferential tariffs is a heavy price to pay for an experiment. Granting all the attractiveness of a “unified empire” it is more than doubtful if this would not be a long step towards its disintegration.
XXVIII. Taking Stock
If the case for Free Trade remains unshaken, there are at least two lessons we have learned. (I.) That Free Trade is merely a condition under which men trade; it may be outweighed by the natural resources of other countries; by their wiser government provisions; by their better methods; by their better habits of life.
Appendix. The Abuse of Shipping Statistics
SHIPPING is one of our greatest industries. Its services, as “invisible exports,” play a large part in explaining the Balance of Trade. It is, moreover, an industry on which much, politically, depends.
Index
Africa, South, 59, 229, 236.
Agriculture, 62–63, 77–78, 144, 171, 243, 261–262. See Preferential Tariffs.
America, 5, 7, 23, 24, 157, 164, 180, 195, 198; Exports of, 16, 41, 139, 205; and Protection, 50, 54, 59, 60, 63–66, 116–117, 152, 217, 272.
Argentina, 16, 251.
Asquith, H. H., 195.
Australia, 29, 229, 232, 235, 256. See Preferential Tariffs.
Austro-Hungary, 16.
Balance of Trade, 15–27, 40–42, 275.
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