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J » --"" BALFOUR S SPEECH.

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J » BALFOUR S SPEECH. Exclusively Confined to Fiscal Policy. 444 Free Trade an Empty Farce." We Muqt Meet Tariff by Tariff. The Prime Minis-tor's fateful pronounce- ment on the future fiscal policy of the Empire -was made known on Thursday evening at iShetficld, before a vast and enthusiastic gathering. Mr. Balfour asked for the lend to upproach foicign countries with a view to (negotiating for better treatment into the com- mercial aieua, and made a statement to the effect that any tax on food was at present im- practicable. Mr. Balfour, who had a remarkably en- ■ ithusiastio reception, prefaced has remarks by 'that he intended dealing with but -one subject that night, viz.. the fecal ques- tion. He proceeded HOW THE TOPIC COMES TO THE FRONT. There are those who would attribute this new importance which it has acquired to a. great speech delivered by a gieat man, in tlhe month of May la-st. But after all, it was not in May last that Mr. Chamberlain—(cheers)— first uttered the sentiments which he there expressed with such burning eloquence, and sometlhinig nioie is requirtd to account for the phenomenon unparalleled in the political ex- perience of any man whom 1 am now addiess- ing. Wilwt, then, is the reason why taniff reform has come so much to the front? I -attribute it. to more than one cause. In the first place remember that tie late war lias brought us into closer and more conscious touch with the great Colonial EmpÙe- (cheers)—of which this country is the centre. Remember, also, that the Prime Ministers and the representatives of those Colonies brought before this country and the Empire in the most categorical and explicit terms the question of tariff reform in connection with our Colonial Empiie. and remember, also, that there has been for some time past—long, indeed, before the recent development ot this tariff controversy—a great uneasiness among all parties- and among men of the most vanied opinions—a growing uneasiness—-as to tlhe condition of British trade in its relation to the trade of the world (Cheers.) CANADA'S IMPERIAL PREFERENTIAL EFFORT. Having alluded to the interest aroused in "the fiscal controversy-, the Premier continued Xow that feeling was greatly (intensified by what occurred in relation to Canada's im- perial effort to give preferential treatment "to this country. You all have the particulars of that incident in your mind—how Canada gave preferential treatment to our manufac- tures. and how thereupon Canada was threa- tened by at least one foreign Power with .-i'-onie suspicioais of retaliation for the efforts she had made. That brought home to many minds the consciousness of our helplessness "under our existing tariff system to deal with a situation of that kind. (Hear. hear.) You •cannot go to war over tariff questions. Tariff attacks can only be met bv tariff replies— (cheeis)—and I think every Englishman felt when he heard that there was some danger lest that Colony should be penalised for her efforts after closer Imperial union tor Eng- land-l say. ft It that we were helpless, in- deed, under our existing tariff system to meet a. situation unexpected, and so dangerous. (Hear, hear.) And that feeling of helpless- ness his not been diminished by a survey of the commercial monopoly of the weild during the last two generations. Sixty years have passed, or nearly sixty years, since the grea- test. or, at all events, the most notorious, step was taken in the direction of tariff re- form in this country in the great epoch be- tween 1841 and 1846. Those sixty years have been filled wctlh refutation of the prophecies made by the great tariff reformers. (Hear, bear.) NOBILITY OF THE COBDEN IDEAL. What was Mr. Cobden's ideal? He looked forward tt. a world in which national (livJ- sions might, indeed, remains, but their em- phasis largely diminished, if not wholly t-f- •' iaced in which the division between na- tions would in no sense correspond with the physical and romniercial divisions in which Free Trade would have swept asunder alto- gether all rivalry between men of different races, of different creeds, and of different political institutions in which the world would commercially be one without artificial barriers, and i:1 which production would fol- low its natural lines, and in which interna- tional manufacture would take, not a conipeti- -five. but a co-operative, shaoe. [0'iie.n.s.) That was his ideal. He drew from it ihe -concliii-iioni that in a world thus industriously orga: ised war would he a practical impost- b lity that nation would be so linked to na- tion by commercial and financial ties that it would be impossible either for national ambi- ■ tion or national vanity to break the great peace which was to brood over the face of the world. Who shall deny that lb at ideal had r m it elements of great nobility? Not 1, for one. But that ideal world is not the world tin which we live. (Hear. hear.) It is not merely—and let this be noted, for it is im- :portant-that. protection has survived &s a -relic-a barbarous relIc. as Mr. Coclben would have thought—of a past time it is not merely that nation is still divtided from nation by poltitical and racial peculiarities. The fact, the actual facts, are far stronger and nunc significant than that. What has happened is that the sentiment of nationality lias re- ceived an accretdon of streniztih since that time of which no man then living would have dreamed for a moment, and that contempor- aneously with this growing sentiment of lla- <tionalitv we have found Protection in foreign countries not holding on as the creed of the obscurantist minority. but. growing in strength day by day. and day by day more and more separating the nations commercially from one another. We have to take account of the facts of the world in which we live and neither the individual nor the nation can venture with anv prospect of felicity or sue cess .to act a.s if he lived in an ideal world, and not in a world which actually and in mat- ter of fact surrounds him. (Laughter.) I .am afraid tihat in these years we have too much been tin the position of dreamers, con- fident in the country and the virtue of our own idea. refusing to see that it was not con- formed to by our neighbours or the world "with which we had to deal, and the result is that we have watched for fitti- vears. without saving it. word, or making a sign, a wall of hostile tariffs growing up dividing nation from nation. and dividing us from the nrotec- tive nations of the world. We have seen our own Colonies, our own flesh and blood.the very sinews of the Empire that is to be building up one vested interest after an- other, a system of Protection which when it reaches its logical and its natural conclusion will make it as hard for us. their Mother 'Country, pledged to defend them, bound to them by every tie of affection and regard- will make it as hard for us to export the re- sults of our industry, our enterprise, and our capital as we now find it to export those re- suits to America or to other protective coun- TOBDEN'S COMMERCIAL TREATY WITH FRANCE. 1 ought, however, to make one exception. One meat effort, and in its measure- one suc- cessful effort, Avar, made, and it w i.s mad" bv Mr. Gobden himself. ] allude to the famous commercial treaty with Fiance nego- tiated in 1859, and brought to a happy and successful issue in 1860. When I consider the history of that treaty I ,>,k mvself whether Nl'r. Cobden was, indeed. « Coil,d, n- ite. (Laughter and "H-ar. hear. What was the essence of that t". lty? W\. wet then in tin; process of completing a gieat <uies of ri foims, mainly due to Oonserv itiw statesmen, wlr-ch did so much for Engii.sh commerce, and set so good an example to the 'w!«rld. In 1859 there were certain taxes still in exi»tince which the then Chancellor of the Exchequer and the financial authori- ties :)f the day thought might \11 be repeal- ed. but for the repeal cf which they desired to obtiin froi" the French (loveinment. then the most Protectionist- nation with whom we had lar;.ro. dealings—some concessions in the- direction of fn e exchange of goods. The milks winch were promised to the Franc it Government as a consideration for some dir>- inution of their protective tariffs were duties to which no value was attached by the Brit ish Exchequer. When Mr. Cobden negotiat- ed that tre Ity he and thosa who sent linn must have either been resolved to keep on these duties if the treaty failed or they must have been resolved to give them up in any case. If the latter, if they were determined to give up these duties, which on their merits they desired to repeal, then they were ask- ing from the Franch Government eonsidera- tion without value received, and the most complimentary epithet that I cm imagine for a diplomatic transaction of that kind is that it was extremely dexterous. In the opinion of Mr. Gladstone and Mr. Cobden. in 1859 and 1860, it was legitimate to keep on taxes which wouhl liive been from a purely Treasury and revenue point of view j'lpgiti mate, in order to put pressure on a foreign Government to relax it. "FREE TRiDE" AN EMPTY FARCE. I take it, ladies and gentlemen (continued Mr. Balfour), that it is quite impossible for any man to say—I know it is quite impossible for any tree Trader to say—that we h.ive not suffered deeply and profoundly by for- eign tariffs in this country. (Cheers.) Free Tiadeis. indeed, an empty name, a vain fa ice, it thc fact that foreign nations are setting themselves to work to divert our in- dustries into channels into which they would never have naturally flowed, to exclude our manufactures from their markets, and to limit as far as they could the international play of supply and demand--1 say that Free Trade is, indeed, a farce if those thing.- do not produce an evil effect not merely upon the country which imposes piotective duties, but on the Free T"ade Country, and there is one—(l--ilighter and cheers)—wnieh has to endeavour co the bait of its ability to pierce them. Alluding to the danger of trusts, and of which Mr. Balfour said Cobden had never even dreamt J, they Lid a right to a.sk f he knewofacuie. He knew of a palliation. (Cheers.) It w ts to get the great countries of the world to abandon Protection. What they had to deal with was a world in which international < ornmercial relations were gov- erned entirely by the arrangements come to by the nations concerned. Was it common s i;s tlut in a world which is commercially governed by treaty they, the greatest com- mercial nation of all. sho.iid come forward ::nci is:«y. "We will tndcavour to arrange tieatie-y with yen"—(laughter)—"wv have nothing to withhold frella you; we throw ourselves upon your mercy, and upon your consideration." (Renewed laughter.) "1{, member, please remember, how good we a-ie to your commerce"—(la .tghter)°-"how we throw no impediment in its way. how we do a.n we can for you, and please don't forget us when vn» ;w uuiiang your next treaty." (Renewed laughter, and cheeis.) FREEDOM TO NEGOTIATE. He was incapable of believing that a nation which deprived it-elf of its nower of bar- gaining is a nation Likely to make very good bargains. He had been asked by friends whe- ther there was really any ground for believ- ing that they should make better bargains if we had the fieedom of negotiation, which he asked them to give the Government. (LuiHI cheers.) His request therefore that night— the fundamental and essential request, to which everything he had to say in the re- mainder of hia speech was subsidiary and accidental—was that the people of this coun- try should give to the Government ot this country, from whatever party that Govern- ment may be drawn, that freedom of nego- tiation of which they tad been deprived, not by tho force of circumstances, not hy the action of oveimastering forces, not by the pressure of foreign Powers, but hy :"ollle- thing which he could only de-scribe a." our own p.dantry and our own self-conceit. He had pointed out- to them that they had allowed the world to slide in to a system of high pro- tective duties against this country without effort and wutln/ut remomstration, 'but tihat world consisted partly of our own Colonies who have and must always retain fiscal au- tonomy. The problem was a distinct one, but as regarded their relations with the Col- onies they had been strangely blind to the abnormal and anomalous situation in which the British Empire was placed. "We" (con- tinued Mr. lialfour) "have been content, apparently, as far as our Empire is concerned, to see divisions—fiscal divisions—growing with our strength, and at the very moment 1 he population of our Colonies is increasing, and in other respects the sentiment of com- mon interest, common blood, and common in- stitutions is gaining strength we see these fiscal divisions growing up of which no man can prophesy tlhe ultimate result, and which. I venture to say. no man ot sober judgment or any knowledge of history can contemplate without disquiet. (Cheers.) Well, that is the first branch of the problem—I am dis- posed to say that in many respects it is the most important branch—(hear. Inai)—and I have soriowfully to admit that it. is also the most difficult branch, and for this reason the evil litis l:e?n allowed to snow, both by us and by our Cohmies. to a point in which it is. probably, incapable of any complete sol- ution. and in whichever an attempted solu- tion, so far as 1 am able to see. would invo've the taxation of food in this country. NO TAXATION OF FOOD. He did not think public opinion in tiie country was lipe for the taxation of food. That was the conclusion to which he had ar rived, but he thought the evils of taxation of ft.0 1. kept within narrow limits, had been exaggerated beyond what reason and logic yustified. (Loud cheers.) The question of the abolition of the corn tax had, however, burnt into the historic imagination of people. It could not be eliminated by the b^st logic, the most conclusive reasoning, or the most eloquent speeches. He had been asked, then, how he meant to carry out that liberty for negotiation for which lie asked in respect of fmeign countries. He believed these1 coun- tries did not wishio completely destroy Eng- land's trade, but to improve their trade at our expense. He would, for the n oment, put questions to himself. Very well (continued Mr Balfour) the first, question which I put to myself is this. Icanimagittethegentie- man who interrupted me most courteously a few minutes ago, putting tliis question to me. He may say. "Do you mean to come for- waid. and ask the country to reverse the ver- dict arrived at in the great law suit between Free Trade and Protection in 1845 and 1846 My answerds simple and plain. I regard the controversy of 1846 as one of no interest what ever to us row—(hear, hear, and cheers)—ex- cept from a historical point of view. All that was appropriate in 1845 and 1846 is utterly inappropriate in 1903 and 1904. Our grand- fathers fought out that battle as men, and with a view to the actual situation of the world in which they lived. Let us in that le-speet imitate their example, and let us not be misled by Iliillsty debates, living enough to those who took part in them, but which are as dead to us as ours will be to our grandsons sixty jnars hence. That is the first quest:on which I put. The second question I w iU im- agine put to me is thcs :—"Do you desire to reveise the fiscal tradition, to alter fundamen- tally the fiscal tradition, which has prevailed during the last two generations?'' Yes, 1 do. (Loud cheers.) The country should have again what every other country in the world passessed, and that of which no other country in the world would think of depriving itself —the liberty to negotiate, and something to negotiate with. (Cheers.) His object- was to mitigate as far as circumstances allowed the. injury done us by foreign tariffs. ;\111. BALFOUR'S DETERMINATION "1 have" (continued the Premier in con- clusion) "been asked to give a lead. (Hear, hear.) I think that ehe request- was a reas- onable one. Aman who, however unworthy, is called upon to lead a parly, must lead it— (hear, hear)—and so long as I am in that position I mean to lead it. (Loud and pro- longed cries of "What about Joe? and some interruption.) I have given this great topic niv let thoughts, my most earnest consid- er'" tion and I am firmly convinced that the Dclicv which 1 now recommend to the party, and to the country, is not only in absolute harmony with all our best traditions— (,'heers) —not o'niv finds its precedent in the state- ments of all our greatest leaders, is not only in p rfect conformity with the spirit of the great bodv which we here represent, but that also and bevond all, that it is the best which tlis country, depending as it does, solely, upon its commercial manufacturing position in the world, it is the best thai this country can adopt. In that faith. III that bekef, and with all earnestness of purpose. I recommend it to your favourable consideration. The riifht hon .gentleman then resumed h's s at. amid great cheering, having spoken for an hour and' twenty minutes.

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