[To the Editor of the SPECTATOR.] SIR,—The letters from Mr.
Douglas Graham and " A Safe- guarder " are most interesting as they show clearly the assump- tions on which the advocates of safeguarding base their claim. But I submit that the decision should not be based on the assumptions of advocates but on the- teaching of experience, and in this matter we are fortunate in having the experience of- Protectionist countries to guide and warn us of tbe con- sequences of a mistaken policy. Here is an extract from the Consular Report for Germany (Cd. 5465-166) for September, 1911. •
•
" The Berlin Chamber of Commeice in its latest report frankly states the German method has proved impracticable ; -a donvictioh is steadily gaining ground that the present road can no longer be followed.; . that the present duties weighing upon all articles have granted the individual industries a protection for their manufactures but that they render such protection illusory through the duties resting upon those raw and half-finished goods which they -finish off.
Again in the Consular Report for Germany (Cd. 7620-14) of read December, '1914, we read :—
" For these finishing industries the export is rendered increasingly difficult because the increasing over-production among the manu- facturers of the half-finished goods is exported' below the home selling price, so that the German finishing industries have to compete abroad against finishing industries working with cheaper German raw material. Export bounties granted to German exporters represent at best an unsatisfactory compensation fOr the difference betWeen the home and foreign selling prices of halficmished goods ; they depend upon the goodwill of various syndicates not always working in harmony, and they are granted reluctantly and often too late. . . As far as the labour market is ccincemed, there can be but one result ; the finishing industries are forced to resort to cheap labour—juveniles, females, and foreigners."
The proposal made by your correspondent " A Safeguarder " for the Government control of prices justifies the statement made by Lord Sumner many years ago that Protection is a form of Socialism. If a government may control and regulate commerce then why not prices and all industry and all labour ? Logically we are led to State Socialism and State Slavery as in Russia.—I am, Sir, &c.,
GRAHAM BOWER.
Sbolwell Lodge, Droaford, Hants.
Previous page
