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AN OBJECTION ANSWERED.

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AN OBJECTION ANSWERED. The correspondence between Mr Asquith and Mr Hewins has utterly smashed the favourite doctrine of Free Traders that Preference means the taxation of raw materials. They now turn round and ask Why do Tariff Reformers ob- ject to taxing foreign wool while they declare that foreign corn or dairy produce may be tax- ed without raising its price?" Assuming that prices are governed by supply and demand rath- er than by duties, the question arises whether the market for wool in a given country—say, Germany or England—is as inelastic as the mar- ket for food. A moment's reflection is enough to show that the market for food is fixed by the number of the population, which cannot vary greatly except over relatively long periods of time. On the other hand, the market for wool is capable of immediate expansion by the simple process of building more factories. Supposing then that the Argentine wool grower found that he had to pay a toll before he could sell his wool in England, while he could sell it in Germany without paying any toll. Obviously this cir- cumstance wourd induce him to sell it in Ger- many, unless the English manufacturer was will- ing to recoup him by paying a penny a pound more than the German manufacturer. A duty on wool might, therefore, make the price higher in England than in Germany, and thus handi- cap the English woollen industry. Suppose, again, that the Argentine wheat grower found himself liable to pay two shillings a quarter be- fore he could sell his wheat in England. Turn- ing to Germany, or any other great market, he would find himself confronted by a much heavi- er duty, designed to protect home agriculture. England would, therefore, still be his. freest ex- port market, and in order to retain his hold up- on it he would have to overcome the duty by paying it .out of his profits. In course of time he would probably find it more and more diffi- cult to compete with the less taxed producers within the Empire, who would thus come to monopolise the market even though the price of wheat we re steadily to decline owing to the in- crease,d supply from the Colonies. But this dis- tinction, elementary as it is, between the condi- tions which would govern the price of food and of raw materials, never seems to occur to the opponents of Tariff Reform. -+- The itrnll, priz. (1jijtrihutinn at Barmouth Couvtr So': o >1 took place on Thurs a?. Mr J. D-viee, D>ff.-vn, P^aided, Mrs G wyroro DftTiei distributed the priiSB*, and Professor Hadaom Wil iams, Bangor,delivered an address on tfa» m- ^i^nron^ent as ap e t » I taeCOr.

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