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 return trade of the Mother Country. But it is said that colonial manufacturing interests demand more protection against the Mother Country. It is true that this movement exists; equally true that only preference can restrain it, by increasing the agricultural vote, which in new countries is always for relatively low tariffs; absolutely true that without the restraining influence of preference the process of tightening the tariff in all the great Colonies must become nothing less than fatal to British trade.

Even if colonial rates upon our manufactures became rather less favourable than now, they would remain far more favourable than they otherwise could be. This at least will be admitted, by anyone who knows the Colonies, to be as certain as a result in mathematics. Yes, but preference, by its very meaning—relative advantage—will bring another factor into play. Whatever the absolute rates in the Colonies may be, we shall always enjoy under them a relative advantage over our foreign competitors. The higher they are, the greater will be the extent of our advantage over all foreign competitors. Instance the working of the American preferential tariff with Cuba. The duty against Indian rice is that of the general tariff, 1 dollar 20 cents per 100 kilos, with a preference of 40 per cent. upon that rate in favour of Louisiana and Texas rice-growers. Their advantage, therefore, over Indian competitors is 48 cents per 100 kilos. But to make the preference more effective it is proposed to more than double the general rate. Rice from the United States will pay more than double what it does now, but still 40 per cent. less than Indian rice, so that the absolute advantage per 100 kilos over the British product will be raised from 48 cents to 1 dollar 10 cents, and America, though paying heavier duties than before, will get the whole trade. We could hardly have a more opportune illustration of the effective working of 'relative advantage,' no matter what the absolute rate may be.

With a fixed percentage of deduction in our favour, the higher the Colonies made their general tariffs the more decisive would be our advantage in their markets