50 Mr. Merriman, Some Remarks on [Nov. 25, 



proportion was raised to no less than 23-4 per cent. ; or, in other 

 words, nearly one-fourth of the gross value of the goods had to be 

 paid in taxes — a result without example in any other part of the world 

 except the United States, where percentage amounted in 1884 to 29 

 per cent., but where in estimating the burden imposed by such a per- 

 centage we have to take into account the natural resources of the 

 country, and its marvellous productive capabilities. The only other 

 countries which approach the Cape Colony in the severity of the 

 incidence of their tariffs are Portugal, with 22 per cent., and New 

 Zealand, with 18'3 per cent. In respect to the latter, it will be 

 observed that we have caught up and passed it in the last few years 

 in this respect. In Great Britain, a reference to Table A will show 

 that though nearly one-fourth of the whole taxation is derived from 

 Customs, the burden only amounts to one-twentieth of the gross 

 value of imports, while in the Cape we raise nearly one-third of our 

 revenue b}'- this means, but it amounts to almost one-fourth of the 

 gross value of goods imported. I have selected Yictoria and New 

 Zealand as colonies for comparison, as their tariffs are notoriously 

 high ; and I have given the last two financial periods in this Colony 

 in detail, in order to show the percentage more clearly. 



It is, however, when a closer investigation is made into the details 

 of our Customs and revenue, that the full comparison with other 

 colonies is brought to light. There are certain articles, as you know, 

 which are in every country, except perhaps our own, considered 

 legitimate subjects for taxation, and to which in financial difficulties, 

 the Ministers in charge of the finances naturally turn. I refer, of 

 course, to Drink and Tobacco. In England actually most of the 

 revenue is derived from this source ; and in the Australian colonies, a 

 very large portion is so derived, and I have prepared a table showing 

 the effect of the taxation of these articles upon the Customs revenue 

 in our own Colony, as compared with that in Great Britain, New 

 Zealand, and Yictoria. I am afraid that the result rather leads one to 

 the conclusion that in the Cape, the ordinary consumer is crushed, 

 while the drinkers and the smokers are treated with a tenderness not 

 usually shown by the tax-gatherer to that fraternity. [See Table D.] 

 I think that I am justified in saying that the figures contained in 

 this table are striking. The true measure of the burden of our 

 Customs taxation is to be found in the last column, which shows the 

 percentage which the duty collected, less the duty on Intoxicants and 

 Tobacco, bears to the value of merchandise, less the value of such 

 articles. It will be seen that in 1877, this amounted to 12-2 per cent., 

 while in the last financial period, ii: had reached the large proportion 

 of 21-1 per cent. Comparing this result with Great Britain, it will 

 be noticed that the taxation in that country raised by means of 

 Customs, except that derived from Intoxicants and Tobacco, ovl\j 

 amounted to lo per cent, of the articles taxed — as against 21-1 per 

 cent, in this Colony. If, therefore, the British tariff was equal to our 

 own, and the value of the imports remained the same, the 

 revenue derived would amount to the astounding sum of nearl}^ 

 82 millions, or considerably more than the whole sum now raised by 

 taxation in Great Britain. The comparison with the Australian 

 colonies of Victoria and New Zealand is perhaps even more surprising, 

 as showing that the latter colony raises no less than 40 per cent, of its 

 Customs revenue from the source above indicated, which has the 



