LETTERS TO THE EDITOR.
OLD-AGE PENSIONS.
[TO TUE EDITOK Or VIZ •SPECriT011.1
Sin,—Accepting your estimate that it would be necessary to raise £30,000,000 annually to provide adequately for old-age pensions, it seems impossible to devise any means of raising such a huge amount except by the imposition of import-duties, —a "short cut to Protection," as you put it. It is interesting, therefore, to see how this would work out, on the scale of our recent imports. The figuies below are based on the Board of Trade Returns, averaging the imports of 1904-6. Duty-paying food, drink, and tobacco are not included, and re-exports of foreign produce are deducted, as presumably there would be some provision for shipping this out of bond. The figures are in millions sterling :— Net imports of grain and flour meat..; ... • •• non-dutiable food, &c. .6649732
61.2 „ raw materials and articles
mainly unmannfactured 4160•5 Less cotton, wool, and other
textile materials ... 744
761
imports 124/ •
0181
It is assumed that the raw materials for our textile trades would be admitted free. To raise 230,000,000 on this import of three hundred and seventy-eight and a half millions there must be a net payment into the Treasury equal to 8 per cent., and allowing for the Customs expenses of collection and the inevitable curtailment of certain imports, the duty would have to be levied at an average rate of 9 per cent. on the whole of our net imports (except textile materials) not already subject to duties, whether from foreign or British sources. To raise the same amount on the present value of imported manufactures alone would require 25 per cent, duty, which would probably have the effect of speedily reducing those imports by a half or two-thirds.. I think there is mach to give pause to ardent supporters of old-age pensions in. this
articles wholly or mainly manu- factured, and miseellaneous calculation. As the cost of most home produetions would rise proportionately, working men in the priine of life would realise tha it is a costly method of tutoring to secure an old- age pension to pay an additional 10 per cent, for nearly every necessary they and their families consume throughout their
working days.—I am, Sir, Sal, F. ASHWORTH. Manchester.
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