Trade of British Possessions with Germany.

Average of Three Years (1890, 1891, 1892).—In Thousands Sterling.

Imports from
Germany.
Exports to
Germany.
India1,5565,338
Australasia1,6311,106
South Africa228113
North America781113
West Indies5285
Other British Possessions351691
Total4,5997,446

WHAT CAN WE OFFER?

This table shows that the Colonial producer stands to lose as much, or more, than the Colonial consumer by cutting off trade connections with Germany. What can we offer in return? It is suggested by the advocates of preferential trade that we should offer better terms to Colonial products in our markets. But already all Colonial products, except tea and coffee, enter the United Kingdom free, therefore we can only give better terms to the Colonies by imposing a tax on those foreign products which compete with the principal Colonial products. What, then, are these competing products? With some trouble I have extracted from the Custom House returns the following list of articles in which there seems to be tangible competition between foreign countries and British Possessions:—

Colonial versus Foreign Goods.

Principal Competing Articles Imported into the United Kingdom in 1895.
Millions Sterling.

From Foreign
Countries.
From British
Possessions.
Animals, Living7·52·4
Bacon and Hams10·1·7
Butter and Cheese14·84·0
Caoutchouc and Guttapercha2·91·2
Copper3·91·1
Corn and Flour44·05·7
Dye Stuffs and Dye Woods2·32·5
Fruits5·8·6
Hides, Skins, and Furs3·83·6
Leather4·63·5
Linseed2·31·1
Meat, Salt and Fresh6·94·8
Oils2·91·6
Rice·61·4
Sugar (Unrefined)6·81·5
Tallow and Stearine·42·1
Wood and Timber12·44·0
Wool4·622·8
Coffee2·61·1
Tea1·68·7
Cotton (Raw)29·6·8
Jute (Raw)·04·3
Other Articles150·816·0
Total321·295·5

It will be seen that without exception the articles in the above list belong either to the category of raw materials or to that of food. Any taxation therefore imposed upon any portion of these articles for the benefit of the Colonial producer would be a disadvantage to the British manufacturer, either by increasing the cost of his raw material or by diminishing the effective wages of his workpeople. Remembering that the main object of the British manufacturer is to keep his hold on the markets of the world, is it likely that he would ever consent to allow himself to be handicapped by such taxation? For all you can offer him in return is preferential treatment in Colonial markets, whereas more than three-quarters of the trade he wishes to retain is with foreign countries.

DIVERGENT AMBITIONS.