ESSAYS IN PERSUASION

PART

278

no discriminating protective taxes, but wouldcover as wide a field as possible at a flat rate orperhaps two flat rates, each applicable to widecategories of goods. Rebates would be allowedin respect of imported material entering intoexports, but raw materials, which make up animportant proportion of the value of exports,such as wool and cotton, would be exempt. Theamount of revenue to be aimed at should besubstantial, not less than .£50,000,000 and,if possible, £75,000,000. Thus, for example,there might be import duties of 15 per cent onall manufactured and semi-manufactured goodswithout exception, and of 5 per cent on all foodstuffs and certain raw materials, whilst otherraw materials would be exempt. 1 I am preparedto maintain that the effect of such duties onthe cost of living would be insignificant—nogreater than the existing fluctuation betweenone month and another. Moreover, any con-ceivable remedy for unemployment will havethe effect, and, indeed, will be intended, to raiseprices. Equally, the effect on the cost of ourexports, after allowing for the rebates whichshould be calculated on broad and simple lines,would be very small. It should be the declaredintention of the Free Trade parties acquiescingin this decision to remove the duties in theevent of world prices recovering to the levelof 1929.

1 [In a subsequent article I agreed that this precise scale ofduties could not be relied on to produce so large a revenue asthat suggested above, and that £ 40,000,000 was a safer estimate.]