A reasoned defence of Australia's Protection policy is attempted in
an instructive little pamphlet by Mr. Skene Smith, of the London School of Economics, entitled The Structure and Working of the Australian Tariff (P. S. King, 2s. 6d.). He remarks at the outset that here " it is only just being recognized that a tariff cannot be valued solely according to the laws of international trade theory, useful though they may be," but according to its effect on each industry. He then endeavours to show how the tariff has affected the protected and non-protected trades, their output and prices, and Australian and British trade in general. Mr. Skene Smith observes that, after India, Australia is our best customer, and he seems to think that by fuller co-operation we might- improve our position there. It is a notable fact that last year the Australian cost of living index figure was only 46 per cent. above that of 1914, as compared to 65 for Great Britain, 62 for New Zealand, 53 for Germany and 70 for the United States. The very heavy increases in the tariff since 1921 would not appear, therefore, to have injured the Australian workman, though the figures may be deceptive and may not justify any such definite conclusion.
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