Protective Duties.

Now, gentlemen, in coming to this important subject of protective duties, permit me to say that it has always been my habit and custom, when I am approaching any subject of large concern, to look first of all at the page 4 difficult points, and I propose to deal first of all, in connection with this election, particularly with this matter of protective duties, because I was informed, when I first intimated my intention of standing for Eden, and stated that I was an ardent free-trader, that I need not hope to gain the seat because this constituency, in common with all the other constituencies of the colony, had made up its mind for what is called Protection. Well, gentlemen, I make bold to say that I never form conclusions on any public question without endeavouring to satisfy myself, in some sufficient and exhaustive manner, as to the true rights and wrongs of the particular question. With regard to the conclusions that I have come to on the subject of protective duties and free trade, I can say that they have occupied my close attention for a number of years. My convictions with regard to the disastrous effects which we must necessarily feel in this colony if the crude and ignorant views of Protection that are abroad are carried out are intense, and I would sooner lose a thousand Eden seats than ever support a course of policy subversive of all hope of the colony coming out of its difficulties. I trust you will believe that every word I speak on this subject is spoken from deep conviction. Personally, I have no interest one way or another, except the common interest of love for the colony, and a desire that each of us may prosper in his own department of business. I have no special interest to serve like those who call so loudly for protection; and it becomes us as intelligent men to watch with the greatest care the efforts made by persons who expect to derive a personal and direct advantage from the imposition of protective duties before we make up our minds to be fools enough to grant everything which they so loudly demand. Now, it has been said that the science of political economy is really only a speculative theory of learned persons, and that no new colony like this can prosper unless its industries are protected. Now, down at the bottom of every great practical subject of importance there always lie important principles. It is the business of the scientific investigator to discover and exhibit these principles, and the political economist does this scientific work in connection with these matters of fiscal policy. The conclusions of the scientific investigator are sound; but, nevertheless, I am not going to give you a learned disquisition on the free trade and protective questions. I feel that it would be out of place in addressing a popular meeting of electors. I want to put before you to-night a few plain facts, and simply those that the most unlettered man in New Zealand cannot but grasp and see the significance of. Now, coming to the colonies, I am prepared to state the whole question of Protection versus Free Trade, not by reference to its effect in the old countries of the world, but by reference to the very colonies in which we live. If I am not able to show you to-night that protection is subversive of the prosperity, not only of a country like our old European countries, but of a colony like our own, and that the nearer we approach to protection just in so far we retard our advance to prosperity, I shall have failed in the purpose I have at heart to-night. I may say that a certain publication has been largely printed, in fact brought out by a distinctly interested organisation and largely circulated, in order to satisfy the population of the country, that the protected colony of Victoria is more prosperous, wealthy, and generally sound than the colony of New South Wales. We have in Victoria a colony in the position in which our protectionists desire to place New Zealand. On the other hand, we have in New South Wales a colony in the position in which theoretical and practical free traders desire to place New Zealand. And if it can be shown that the effect of protection in Victoria has been to increase the wealth of that country and to increase the rate of wages more than free trade has done in New South Wales, then facts like these cannot be disputed by any mere theorist. But I will show you tonight that in every material respect the colony of New South Wales is far ahead of the colony of Victoria. The document to which I have referred, and which contains a number of specious arguments culled from the Melbourne "Age," is simply nothing but a tissue of misrepresentations, and I will place before you the true position of the two countries as gathered from official statistics. First of all, I will deal with the increase in population of the colonies in question. The population of Victoria in 1866 was 636,982, and 20 years afterwards it had increased to a million, the increase being 363,018. New South Wales in 1866 had a population of 431,412, and in 1886 this population had also increased to a million, the increase in the latter case being therefore 568,588 as against 363,018 in this protected, and it is alleged, very prosperous colony of Victoria, showing that in the great indicator, increase of population, New South Wales had forged far ahead of Victoria. Now let us compare the numbers of the most effective part of the male population, viz., the males between the ages of 25 and 40 years. Of these, Victoria had in 1871, 135,413, and in 1881, only 99,497, showing a decrease in ten years of 35,916 in the most effective part of its working population. New South Wales, on the contrary, had in 1871 very much fewer of page 5 this class only 83,275, but in the space of the next ten years it not only overtook Victoria, but went far ahead of it, increasing this part of its population to 115,991, making an increase of 32,716, so that the difference between the two colonies in ten years was in favour of New South Wales by 68,632 men in the flower of their age. That speaks volumes to any man prepared to listen and reflect. Passing now from population to wealth, we find that the value of property in Victoria, rated or liable to be rated on extension of municipalities, is £116,283,570, and that the value of similar property in New South Wales is £197,028,429, showing a difference of about £81,000,000 in favour of New South Wales, or a good deal more than 50 per cent, over the value of property in Victoria. Let us now take the revenue of the two countries. In 1866, the revenue of Victoria was £3,079,160, and the revenue of New South Wales for the same year was £2,012,079. In 1885, the Victorian revenue was £6,290,361, and the revenue of New South Wales was £7,584,593, there being thus a difference of increase in favour of New South Wales of no less than £2,361,313. Then, again, when we come to the tariff taxation of the two countries, we find that there was collected by Customs and Excise in Victoria in 1885, £2,030,555, and in New South Wales £1,823,207; while in Victoria there was also collected by protected industries £1,250,000, whereas New South Wales collected only £100,000 by the latter moans. Allowing a proportion of one third for the amount added by dealers and retailers, we have a total tariff taxation for Victoria of £4,374,073, and for New South Wales of £2,564,276, or, at per head, £4 8s 2d in Victoria, and £2 12s 4d in New South Wales. These figures make it easy to see what it takes to keep up these local industries of Victoria. We will now compare the imports and exports of the two colonies. In 1885, the imports of Victoria were £18,044,604, whereas the imports of New South Wales were £23,365,196. The exports of Victoria for the same year were £15,551,758, and the exports of New South Wales were £16,541,745. The average total of imports and exports for Victoria in 1883-4-5 was £34,330,390, while for New South Wales it was £40,610,536, showing an average excess of £6,280,146, in favour of New South Wales, and thus proving that a much larger trade was done by that colony.

When we look at the shipping trade of the two colonies we find that the tonnage in and out in Victoria in 1866 was 1,325,720, and in New South Wales 1,514,735 tons, but in 1885, the tonnage for Victoria was only 3,260,158, whilst that of New South Wales was 4,133,077 tons. In Victoria over a period of seventeen years, tracing back from 1885, there were 1479 more insolvencies, and the amount of deficiency by insolvencies exceeded that of New South Wales by £780,232. Then when we come to manufactures and works, you will say, "There must be something magnificent in Victoria in this department, for trade has been ruined, and taxation increased in order to secure a magnificent manufacturing population." What do we actually find? Nothing of the kind. The hands employed in Victoria in manufactories being men — mark you this, for it is exceedingly beautiful—were in 1886, 41,542, while in New South Wales they actually numbered 42,289. So this cry of "Protect our industries" won't find work for the population, seeing that a free trade country has got a greater working manufacturing population without it. It is true that there are 7,755 females employed in Victorian manufactories and works and only 3,494 in New South Wales, thus giving in the total number of operatives a little superiority to Victoria. But, gentlemen, I do not think that our colonists are the men to wish to see a state of affairs in which the women are turned into beasts of burden and mere labourers for bread. (Applause.) Then, when we compare the number of manufactories and works opened during the last ten years we find that Victoria only opened 510, while New South Wales opened no less than 1256 without protection at all. When we compare the machinery used by the two countries we find that Victoria has in horse-power 20,160, and New South Wales 25,192, or an excess in horse-power of 5,032 horses. If we look again at the value of plant and machinery, we fine in Victoria their value to be £4,643,893, whereas New South Wales has plant and machinery to a value of £5,801,757, or an excess in favour of New South Wales of £1,157,864. When we look at such points as general business—for this is a very good indication of relative prosperity—we ascertain that the number of letters received and despatched were for Victoria 36 per head, but for New South Wales 40 per head, and telegrams despatched in Victoria during 1885 were 1,634,666, and in New South Wales 2,625,992, or as nearly as possible two-thirds more telegrams in the free trade colony.

In order to find out which of the two populations is living under the easier conditions, we turn to the consumption of luxuries, and we find that the consumption of these per head is much greater in New South Wales than in Victoria in all the following articles: Tea, sugar, currants and raisins, spirits, beer, and particularly tobacco, which latter article affords us a very curious illustration. In Victoria the consumption of tobacco per head was only 35½ page 6 ozs., while in New South Wales the consumption was 46 ozs. per head, The fact is that the Victorian operatives are living under such miserable conditions that they have even to cut their "baccy" short in order to make both ends meet. (Laughter.) And this is the state of affairs they want us to brine into this beautiful colony of New Zealand. So much for the comparison of the two colonies, and I could speak for a week if I were to allow myself to go into the question in a full manner. I am only able to-night, however, to give you a few points to meditate upon. Turning to the old countries, we find (he miseries and wretchedness resulting from protection intensified. Let us take, for instance, the rate of wages. In France, which is a highly protected country, the rate of wages is 58 per cent, lower than in England, although the operatives in the former country work from 12 to 14 hours daily. In Germany the wages are 42 per cent. lower than in England, and the operatives work from 13 to 16 hours daily without deduction for Sundays or holidays.—(J. S. Jeans.) It is the same, or nearly the same with Belgium, Italy, and Russia. And if we turn to the United States, which have not had time to develop such a state of things we find them drifting in the same direction as was shewn very clearly in a very able speech of Sir William Fox the other night. I will simply state that it is a country where the rate of wages is higher even than in England, but still over the whole of the United States the rate of wages, for operatives only, averages 4s 8d a day, while the cost of living is something frightful in connection with the number of lines in every day use. A gentleman was telling me the other day that a suit of dress clothes cost him from twelve to fourteen guineas in the States. In a great agricultural country like that food is actually dearer than in England, where they have got to import everything almost that they have. The state of affairs in America is so exceptionable that it would be quite intolerable to live there if it had not been for the enormous natural advantages which it possesses in the vast extent of its virgin land, and other valuable endowments of nature which the older countries have not got. But for these, protection would have crushed the population long ago. The best men in the country are now rising up and asking that this stupid, abominable, and ignorant system should be done away with. I should like to tell you one or two facts with regard to protection in New Zealand. Fortunately the statistics of the Registrar-General with regard to the state of the manufacturing industries in this colony were published only a few months ago. The total number of operatives, male and female, who are engaged in manufactures of every kind in New Zealand during 1885, as compiled from statistics published in January last, was 25,655, and the total value of the articles manufactured by them was £7,436,649. I made an analysis of these figures—a rather troublesome operation—and it disclosed the fact that the number of operatives engaged in printing offices, grain mills, flax mills, timber mills, fellmongeries, quarries, brick works, gold and other mines, ship yards, etc., all of which may safely be classed as unprotected industries, was 17,724, of whom 327 were females, and the value of the articles manufactured by those whom we call free operatives is certified at £5,319,865. This leaves a balance of only 5,674 males and 2,167 females, so that whilst of the free trade labourers only 324 were women, when we turn to the protected operatives we find the women nearly half as numerous as the men—the very same result as we get in the case of Victoria, or worse. Now, We in New Zealand have a total of 7.931 operatives engaged in the manufacture of articles to a value of £2,116,785, under a tariff which may be regarded as protective—that is to say, a 15 per cent, ad valorem tariff. I need not trouble you with the very large amount of information which is published in my letters to the "New Zealand Herald," written shortly after I made these discoveries in March last. But, as I have told you, the value of the articles manufactured by the protected operatives was £2,116,785, and taking the average of duty on these goods as 15 per cent, ad valorem, we find that this protection results in an annual loss of £276,102 to the revenue. You will observe that this loss of a quarter of a million sterling to the revenue means that the settlers of the colony have had to pay that amount in order to protect the 7931 operatives, being an average of £34 16s 3d per head. Now, I want you to exercise your minds and to try and realise what this means Put it in this way. Suppose you and I are free operatives or free men standing on our two feet in this beautiful colony, and that somehow I am able to make enough with my two hands to live upon. You do not hear me say to you, "Give me £34 16s 3d every year to enable me to live." (Laughter.) You would think me insane if I did so. If I were insane enough to do so you would say, "No; I have got enough difficulty to live myself. You had better find work and live by your own exertions." Or suppose that were we all engaged in those enterprises which all real colonists engage in to earn a living, and that 7931 men came in ships to our shores and said, "Now, look here, you are paying for your coats at the rate of £1 apiece, and for other things in proportion. We are going to propose great advantage to you. We want you page 7 to consent to pay us 25s for everything that you have paid £1 for hitherto, and in return we will come and live amongst you and you will be wonderfully well off, and we will make this a prosperous country," I wonder how we should receive them. If we were sensible men we should say. "No; we are making a living. Come in if you like and make your living, and we shall make you heartily welcome; but if you want us to pay you £34 16s 3d each a year to make boots and shoes, clothing and furniture,—well, you had better go somewhere else, because we are not such fools." (Laughter.) That is the answer which I should give to these individuals. The thing, gentlemen, to me is perfectly ridiculous Now, this being the case in regard to New Zealand, you may say, "Ah, but what industries are we to follow? There is a large population rising about us. What are we to do with them?" Well, gentlemen, I would say that it would be better to kill them (loud laughter) - to shoot them through the head and have done with them, than to bring in a state of affairs contrary to every principle of common sense and to everything that ought to govern sensible men. There are immense tracts or land in the colony—sufficient not only for the rising generation but for twenty generations, and if only the affairs of the colony were put on a sound footing and the cultivation and improvement of the land and other industries really native to the country were recognised as the real work of the colonial, there is not a man amongst us who could not make a living. They can't expect others to make a living for them. What I want to put into the head of every man, every woman, and every child in the country, is this—that God has endowed each of us with powers to make a living, and that we each are responsible for doing so. And what I want to see put out of their heads is that they are to seek by protective duties or any other device to sponge upon their neighbours, or hope to get somebody either from charity or foolishness to help to make their living for them.