A POLITICIAN IN A DIFFICULTY
[To the Editor of the SPECTATOR.] SIR,—The whole of the difficulties of Mr. Hamilton Fyfe, and of those who think with him, can be solved—as far as clear thinking is concerned—by recognizing the true factors responsible for trade depression, and the consequent financial disasters towards which we are inevitably drifting. Any alteration in our fiscal system in the direction of " Pro- tection " (under its hundred and one aliases) cannot possibly affect, otherwise than injuriously, the economic stability of the nation. Moreover, the dominating factors are likely to become static, as will be seen from the following table, and quite outside the range of any influence that any tariff- monger can devise CAUSES Or TRADE DEPRESSION.
1. Crushing and senseless taxation.
2. The relief of Allied 'nations of their debts (guaranteed by us) at the expense of the British taxpayer.
3. European impoverishment duo to the effects of the War. Our former customers cannot buy from us as much as they used to for the quite obvious reason that they can't afford it.
4. National upheavals in India, China. Egypt, &c„ whereby business and commerce has been dislocated and markets tem- porarily (we hope) lost.
5. The undoubted fact that many nations are now making for themselves goods formerly purchased from us.
0. The humiliating reproach that foreign nationals work harder, for longer hours, for less wages, and exercise sufficient common sense not to disrupt wantonly the industry by which they live.
7. The absolute atrophy engendered in personal effort, ambition or thrift (the great trinity snaking for true national prosperity, represented by the word " independence ") by the modern curse on the development of individual character—miscalled "social services "—which shifts the responsibility of the man to support himself and his family to the State, and which is rotting the founda- tions of the character of the people.
8. Tho idiotic fiscal theory that trade can (under the foregoing conditions) only prosper by making the consumer pay more for ass article than he need. People are not buying because they have not the money to buy with. " Look after the consumer and trade will look after itself."
9. The fact that we are over-populated ; and it is my considered belief that under no conditions (at present to be envisaged, if not permanently) will it be found possible to find employment for all the workless, or any considerable proportion of them, either now or at any near future time--quite probably never.
10. (a) Tho narrow basis upon which direct taxation depends. (b) The insane "death duties" which are burning up the capital resources of the country, and leading inevitably to the transference IA investments abroad, and gradually an emigration of the investors themselves.
These are the real reasons for our present commercial and financial plight ; and no economic system—Free Trade or Protection—can possibly save this country from pro- gressive capital attrition, leading certainly to national ruin, except a drastic cutting down of all expenses and an equally drastic reduction in taxation—the latter, of course, dependent on the former.--I am, Sir, &e.,
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