PROTECTIVE FREE TRADE.
[To THE EDITOR OF THE °' SPEOTATOR.1 SIR,—Ever since Mr. Joseph Chamberlain hurled the bomb of Fiscal Reform into the Unionist camp I have consistently urged that the only true reconciliation of the claims made on behalf of the principles of Free Trade and Protection respectively would be found in the establishment of an ad valorem market toll charged- upon all commodities imported froth abroad—this toll to be differentiated only so far as " necessaries " and " luxuries " arc concerned ; in peace not to exceed a maximum of 5 per cent. on " luxuries ". and 21 per cent. on " necessaries," in war time these maxima and minima to be increaeed to 5 per cent. and 10 per cent. respectively ; in the case of the Imperial Dominions and Dependencies, only 50 per cent. to be charged, on the condition that they reciprocate by reducing their re- spective tariffs by 50 per cent. in favour of the Motherland ; a similar concession to be made to all importers who arc prepared to reciprocate in a similar manner; the revenue derived from such market tolls to be used for the purpose of paying ono half of the duties charged by hostile tariffs upon our exporters, inanufacturene and producers at home. I have submitted these views to many of our leading statesmen and economists, as also to the public Press (you were good enough to guillotine a letter of mine on this very question—absit omen!), but hitherto I have been like a pelican crying in the wilderness whilst the arid controversy. betwixt Protection and Free Trade has gone merrily on—not without regard to political eventualities and the " smart " snatching of votes. It is therefore a pleasant surprise to find the Spectator comingeout strong on behalf of such an ad valorem market toll as I have advocated above. The use of the title " A General Tariff " is to a certain extent misleading, inasmuch as tariffs for the most part contemplate differential taxation of imports, coupled with schedules favouring specific commodities and discountenancing others, according to the log- rolling requirements of the producers and manufacturers, who happen to possess the bigger political " pull." A uniform ad valorem market toll has nothing to do with devices of this kind, and would, I believe, prove of infinite advantage to this country during tho strain and stress of war. Could such a system of market tolls be coupled with a universal graduated Income Tax, our financial system would become scientifically complete, whilst the potentialities of direct and indirect taxation would be judiciously conserved. One last word not wholly relevant to the point at issue, but I believe well worthy of consideration at the present time. Let all Government contracts henceforth be paid as to one half in cash and as to the balance in 5 per cent. £100 redeemable Exchequer bonds. At the same time, let all wages for Sunday work or overtime be paid in 5 per eent. £1 Post Office bonds. Then the true foundation of war economy will be established in our midst. —I am, Sir, &c., Hammerfield, Penskurst, Kent. ARNOLD F. Haas.
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