QUESTIONS OF TAXATION. 165 



product. Many practical examples have shown 

 that the local manufacturer, when secured in his 

 home market, is often able actually to reduce 

 prices below those of the Free Trade era. 



The next great subsidy that the Australian 

 landowner garners in is from the railways. Prac- 

 tically all the lines are owned by the various 

 State Governments, and all those Governments, 

 by a system of differential rates, favour the 

 farmer. Roughly, the customers of the railways 

 stand in this order of favour — (1) the farmer, 

 (2) the pastor alist, (3) the miner, (4) the mer- 

 chant, (5) the suburban passenger. Since the 

 railways are made to pay (they are, as a rule, 

 admirably managed), the position really is that 

 other classes of the community have to pay 

 higher rates in order that the farmers' produce 

 may be carried at a below-remuneration rate. 

 That no one seriously objects to this is shown 

 by the fact that in all the States this differential 

 railway system is carried on without protest. 



Some smaller subsidies are these : The State 

 maintains a staff of agricultural and veterinary 

 experts to deal with plant and animal diseases, 

 and to analyse soils and advise on local condi- 



