To the Editor of the SPECTATOR.] S111,—Desperate efforts are being

made by the Protectionist caucus in the House of Commons to induce the Government to turn their National emergency mandate into an instrument to give effect to the Tory clamour for a general tariff. If the reactionary agitation were not serious for the country the expressed motives would be amusing. By an interview with Sir Henry Page Croft he is reported to have said that their chief concern is the welfare of British industries, when the very purpose of their agitation is to shut out the material which is the life-blood of our manufactured goods for the export trade, and that for benefit of protected combines who, when competitive supplies are removed, at once raise their prices of raw material to the manufacturers, regardless of the crippling and possible extinction of their export trade. I would challenge Sir Henry Page Croft to give one instance where this has not been the case.

Then as a further inducement to gain support for Protection, they talk about an adverse trade balance by quoting the following figures=that our imports last year were £862 millions, against exports of only 1389 millions. Inferring that we imported foreign manufactured goods more than double what we exported. This is absolutely misleading. What are the facts ? The £862 millions, according to the Board of Trade returns, include £417 millions of foodstuffs, without which we should starve ; and £173 millions of raw materials. This leaves a balance of £272 millions against a net export of Manufactured goods of £306 millions. There is no adverse

trade balance here. And this proportion is quite in keeping with the previous year 1930 as follows :

Millions.

.. £1,044 Total export s £475 Less foodstuffs ..

Raw materials 251 Raw materials 64

— 726

—

112

£318

£459

In both eases the trade balance of manufactured goods shows an excess of exports over imports evidenced by the

Board of Trade returns.—I am, Sir, &e.,

Total imports .. Less foodstuffs .. Millions.

. 1571 1.48