The general fiscal policy as finally adopted by the committee is as follows:
1. The producers of this country are entitled to require from the Government that they should be protected in their home market against "dumping" and against the introduction of "sweated" goods, by which term we understand goods produced by labor which is not paid at trade union rates of wages, where such rates exist in the country of origin of the goods, or the current rates of that country where there are no trade union rates. We recommend that action be taken in regard to "dumping" on the lines (though not necessarily in the precise form) adopted in Canada.
2. Those industries which we have described as "key" or "pivotal" should be maintained in this country at all hazards and at any expense.
3. As regards other industries, protection by means of customs duties or Government assistance in other forms should be afforded only to carefully selected branches of industry, which must be maintained either for reasons of national safety or on the general ground that it is undesirable that any industry of real importance to our economic strength and well-being should be allowed to be weakened by foreign competition or brought to any serious extent under alien domination or control.
4. Preferential treatment should be accorded to the British oversea dominions and possessions in respect of any customs duties now or hereafter to be imposed in the United Kingdom, and consideration should be given to other forms of imperial preference.
5. As regards our commercial relations with our present allies and neutrals, the denunciation of existing commercial treaties is unnecessary and inexpedient, but the present opportunity should be taken to endeavor to promote our trade with our allies, and consideration should be given to the possibility of utilizing for purposes of negotiation with them and present neutrals any duties which may be imposed in accordance with the principles laid down above.
LIMITING PROTECTIVE PRINCIPLES
In view of the danger that the admission of the principle of protection, even to a limited extent, may give rise to a widespread demand for similar assistance from other industries, and consequently to an amount of political pressure which it may be very difficult to resist, the committee further recommends:
That a strong and competent board, with an independent status, should be established to examine into all applications from industries for State assistance, to advise his Majesty's Government upon such applications, and, where a case is made out, to frame proposals as to the precise nature and extent of the assistance to be given.
Before recommending tariff protection for any particular industry it should be the duty of the board to consider forms of State assistance other than, or concurrent with, protective duties, such as bounties on production, preferential treatment (subject to an adequate standard of quality and security against price rings) in respect of Government and other public authority contracts, State financial assistance, and also whether the position of the industry could not be improved by internal reorganization.
The board should also have constantly in mind the safeguarding of the interests of consumers and of labor, and should make recommendations as to the conditions which for these purposes should be attached to any form of Government assistance, whether by means of a tariff or otherwise.
The committee reports adversely on the changing of weights, measures, and coinage to the metric system.
BANK OF FINLAND, AT HELSINGFORS, WHERE THE RED GUARDS, ATTEMPTING TO BREAK INTO THE BUILDING, WERE REPULSED BY THE WHITE GUARDS