256 WHEAT PRODUCTION IN NEW ZEALAND 
may have a superficial advantage’’—a danger which is 
always present in popular arguments on economic 
questions—is exceptionally great. The recent attempt 
to found a New Zealand Board of Industries demon- 
strates this,* and the report of the New Zealand 
Efficiency Board wherein the first statement refers to 
the desirability of higher protective duties. No reasons 
are given for this, and one may well enquire as to 
how higher protection would increase our efficiency as 
producers. 
In New Zealand import duties were first imposed to 
raise revenue. During the last three decades our 
attitude towards the tariff question has changed; and 
now New Zealand fiscal policy has a distinct bias towards 
protection. Most manufacturing industries are highly 
protected, 20 and 25 per cent. being in most cases the 
extent of the protection, a high duty when we remember 
the natural protection enjoyed by the New Zealand 
manufacturer through the high freights on over-sea 
goods. The milling industry is protected by an import 
duty of £1 per ton on flour, which amounts normally 
to 10 per cent., while the wheat industry also receives 
protection from a duty of 9d. per cental, or 6d. per 
bushel, which at normal times is equivalent to over 
124 per cent. <A study of the effects of these import 
duties is difficult from two standpoints. In the first 
place, there is the difficulty peculiar to the study of 
dynamic economics—namely, the impossibility of isolat- 
ing phenomena which it is desired to study. Secondly, 
*An interesting controversy on ‘‘Scientific Tariff’’ sprang 
from this. The writer had the opportunity of following it 
elosely. Those favouring Protection were unable to meet the 
criticisms of their opponents, and a reviewer of the controversy 
gave the honours to the Free-traders. This is of interest as it 
shows how easy it is to argue the case for protection to the 
satisfaction of the less critical. But where strong arguments 
based on economic knowledge had to be faced, the Protectionists 
withdrew. 
