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Here, again, the relative insignificance of the trade with our self-governing Colonies, taken separately, is evident, and also how unimportant the item is as a whole.
Preferences to British Goods.
It will, of course, have been obvious that we have not considered the other side of the question—namely, that the Colonies would, in return for our preferences, give us a more favoured position on their markets. As a matter of fact, these concessions have already been made to us to a large extent, but in practice they have turned out to be generally illusory, though useful in particular instances. In fact, the colonists start from the basis of effectually protecting their own internal factories against all comers—including the British ones, who are the most formidable. The door of imports is locked against us, and it is very little good, except as a compliment, to double-lock it against the foreigner. In counting up the reciprocal values of concessions it must also be remembered that colonial preferences mean a reduction in duties in the Colonies and possibly a further reduction in the price to the consumer, owing to British competition being even remotely possible. All this means a reduction in the cost of living. English preferential duties would, however, have to be imposed to begin with, for they do not exist at present. This would raise the cost of living here by the Customs Tax, and also incidentally by the protection which the new duties would give to our home production. Preferences here and in the Colonies thus mean absolutely different things. They are advantageous to the colonists, who buy more cheaply owing to the reduction in duties, by which they benefit. The situation in England would be reversed.
Foreigners and Preferences.
We have hitherto mainly considered preferences from
