4 APRIL 1931, Page 15

TARIFFS AND A NATIONAL POLICY

[To the Editor of the SPECTATOR.] Sin,—As a constant reader of the Spectator I noticed with great interest the article which appeared in a recent number entitled " Tariffs and a National Policy." In that article reference was made to the Free Trade argument that a reduc- tion of imports (which would be the result of the tariff) would mean a reduction of the exports which pay for the imports.

Is there in fact any real foundation for that fear ? Will not the object of a tariff be, not to diminish the volume of our imports, but to change their character ? Those who advocate Protection believe that, by imposing a tariff, British industry will be given the confidence and security needed to permit of greatly increased production in this country at world prices, and thus to strengthen its power to compete in foreign markets. Those exports would be paid for by imports of foodstuffs and raw materials for British industry, and by manufactured goods whose production was not a speciality of Great Britain. Our imports would thus be complementary to our own production, rather than compe- titive.

Few Protectionists would claim that a tariff is designed to cut off all our imports of foreign manufactured goods but, at any rate, such manufactured goods as do enter will at least pay to the National Exchequer by way of import duties a sum comparable to what British goods pay to the Exchequer by way of taxation, instead of escaping, as they do at present, this burden, and thus being in a privileged position as against that of our own manufactures.—I am, Sir, &c.,

21 Tothill Street, London, S.W . 1. GUY Lococx.