SOME FEARS.
Now, quite apart from whether:protective tariffs are or are not in the Interests of the Nation, the City believes that the experiment is being tried at a rather unfortunate Moment. Under normal conditions it is conceivable that the knocks given to countries hitherto- importing freely to us could have been- sustained without undue injury. To-day, however, the position is so strained- in ,many of those countries that it is feared the effect niay be so serious as to react in turn upon this country through an increase in the number of defaulting foreign debtors, a circumstance which in its turn, of course, would act dis- advantageously upon the National Revenue. .Moreover, whereas in normal times our trade position might have been quickened along the lines of increased exports, there is such a diminution at the-present-tittle in the purchasing power of many foreign countries that hopes of an early great expansion in our export activities do not run very high.' That the new duties will do something towards correcting the adverse trade balance is. probable enough, but the fear is that the check will come mainly, if not entirely, through a further restriction of imports, and to the extent to which imports are restricted so must the Exchequer suffer through small revenues from the tariffs.
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