Mr. Balfour's pamphlet—which, curiously enough, the news- papers are forbidden
to reproduce in. extenso—is an attempt to state the philosophy of the fiscal question. The Prime Minister considers Great Britain an island whose people have preferred an industrial career to a reliance upon agriculture, and are now threatened with a general shutting of markets by the nations which have universally adopted Protection. This process, the author says, will continue, and may be moat injurious. He admits that we are prospering, and sees "no evidence that we are `living on our capital " ; but holds that if we exclude coal, ships, and machinery, our exports are visibly dwindling. He wants, therefore, to have a weapon placed in the hands of the. Government by which it can induce or compel foreign States to moderate their tariffs. This instrument must be a system of Protective duties, imposed, not for Protection, for Mr. Balfour thinks himself a Free- trader, but for the further enfranchisement of foreign trade. Mr. Balfour does not even allude to preferential duties or taxes on food, and thus gives up Mr. Chamberlain's pro- posals for the present. Indeed his logic required this, for if we are to induce or coerce the foreigner into moderation, we must also induce or coerce the Colonist, who is equally in favour of high tariffs.
