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TARIFF REFORM. British merchants, as described in the Consular reports, partly to labour disputes, partly to the decline in the relative efficiency of the British manufacturer and the British workman. That we are being beaten, even in our own markets, by goods produced in highly protected countries, goods in which we have long held a pre-eminent position, at any rate shows that Free Trade is not essential to cheapness of production. The recent advance of the United States is owing undoubtedly to a great extent to her natural resources, but even more to the energy of her people, which has certainly not been hampered by Protection, as Free Traders would argue it ought to have been. On the other hand, I no more think that the industrial progress of the United States can be advanced as a positive argument for Protection than that the greater relative progress of Free Trade New South Wales, as compared with Protectionist Victoria in the last few years, can be urged as an argument in favour of Free Trade. The progress of New South Wales has been due to her greater natural resources and the superiority of the administration of some of her public departments, notably her railways under Mr. Eddy. The general conclusion seems to be that the growth of British commerce, the enormous progress in material prosperity during the fifty years from 1840-1890, are not so much due to the adoption of Free Trade as is generally asserted, and that the greater relative growth of the trade of other industrial nations in the last decade has certainly not been hindered by Protection.

6. Finally we come to the Imperial point of view, which in many ways is the most important of all. Our Colonies have grown rapidly during the present century, 129