y there is no argument and no reason for such a course, and the
only argument which could justify it is the argument used by Dr.
Smartt at the Colonial Conference when he said (page 514 of the Blue
Book), "The foreigner pays, and we do not." Mr. Deakin felt the force
of the objection which would be entertained in this country to
introducing such a tariff as the right hon. gentleman has proposed,
simply for fiscal purposes, and he proceeded to say that Great
Britain, if she was a party to such a bargain, should be permitted to
raise the money in her own way, and to contribute her proportion to
the common fund. That was a great concession to the self-government of
the Mother Country.

There is no doubt a great difference between subventions and
preferences. A subvention may be raised by a perfectly orthodox fiscal
process. No more money is taken from the taxpayer than is required.
The whole yield of the tax by which the subvention may be raised
certainly goes to the Exchequer, and when the subvention is paid to
the foreign or Colonial Government, it does not go, as a preference
would go, to benefit particular interests in the Colony, but it goes
to the Government of the Colony for the general purposes of State, and
not for private advantage on either side. Therefore it seems to me
that the method of subvention is on all grounds to be preferred to the
method of preference.

It is of course necessary, however, in examining a question of
subvention to look at it on its merits. This proposal of 1 per cent.
put forward by Mr. Deakin carried the support of the official
spokesman of the Opposition. Let us look at it on its merits. Look
first at the proportions on which this new fund was to be subscribed.
Canada was "to dedicate"--that was the expression used by Mr.
Deakin--L400,000, New Zealand L20,000, Newfoundland L6,000, Cape
Colony L40,000, Natal L26,000, Great Britain L4,500,000, and
Australia--the proposing body--what was she to "dedicate" to this
fund? No more than L100,000 a year, or one forty-fifth part of the
contribution which was to be made by this country. And for what object
was this fund to be accumulated? It is hard enough for the Chancellor
of the Exchequer to raise the money to carry on so great an
establishment as this country is forced necessarily to maintain. But
here is a proposal to raise no less than L4,500,000 of extra taxation.
For what objects? For objects not specified, for objects not yet
discover