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PROBLEMS OF EMPIRE. goods of the mother country in their markets. If Colonial produce is admitted free you would not in the long run benefit British agriculture, and you would have nothing in hand with which to negotiate with the Colonies for the lowering of their duties against British produce.

It is naturally the object of Mr. Chamberlain's opponents to concentrate public attention on the proposal to tax foodstuffs, and they freely assert that his policy will result in raising the cost of living. Mr. Chamberlain has declared in the most express terms that the cost of living will not be increased for the people of this country unless the people themselves wish it. He is prepared to do one of two things: to use the revenue derived from the duties imposed on corn and meat or other agricultural produce to reduce the duties to even a greater extent on tea, sugar, coffee, and so forth. If this is done, the cost of living will not be increased. Or, if the people so prefer it, he is willing to utilise the money derived from these additional duties for the purpose of providing old age pensions. Mr. Chamberlain is constantly misrepresented. I ask you to bear in mind exactly what Mr. Chamberlain has said, and to examine his proposals carefully for yourselves. I repeat now what I said at Battle during the recent election. I look upon tea and sugar as being as much necessaries of life as wheaten bread was sixty years ago, and if we are to raise any revenue from indirect taxation, as I believe we must, it is better to raise it upon an article we can produce in this country rather than on things we cannot. In the former case we, at any rate, derive an indirect benefit from the encouragement of an important industry 154