On the subject of reconditioning and re . -equipping industry, which they
regard as urgently necessary, the Committee recommend Rationalization as the obvious Procedure. Lastly, we must mention one of the most striking points in the Report—the lukewarmness 'with which the Committee write about"Safeguarding and the McKenna Duties. They say that nothing is or can be more important than stability and continuity in tariff policy. " No substantial change in duties is justifiable unless there is evidence of such widespread support as will afford a reasonable prospect of stability." Although they think the key-industry duties sound in principle, they desire that these duties should be regularly reviewed. In the main they recommend adherence to our historic type of tariff policy, namely, a tariff for revenue subject to certain qualifications. They describe the experience of Safeguarding . so far as it has gone as " very inconclusive." The truth is that the indirect effects of Safeguarding are never thought out by its typical champions. To take only one example : the re-export industry—in other words, shipping—is appreciably hit by every Safeguarding Duty.
