t of free trade and the
formation of an imperial Zollverein or Greater British Customs Union.
In this way capital would move more freely within the empire from one
portion to another--as if capital which has gone from Great Britain to
the Australian group of colonies to such a tune that the public
indebtedness there is three times the amount per head in the mother
country (to say nothing of the vast sums embarked in private
enterprise, bringing up the aggregate debt to a million and a
quarter), did not move quite freely enough as it is. Supply would at
last have an opportunity of accommodating itself to demand without let
or hindrance over a large portion of the earth's surface--as if more
were necessary for this than the simple reduction of their tariffs,
which is within the power of the protectionist colonies without
federation, confederation, or any other device whatever. As it is, by
the way, the colonies take nearly four times as much per head per
annum of our manufactures as is taken by the United States (32s.
against 8s. 4d.)

It is not necessary for me here, even if there were space, to state
the arguments against the possibility of a perfect Customs Union
embracing the whole British Empire. They have been recently set forth
by the masterly hand of Sir Thomas Farrer (_Fair Trade_ v. _Free
Trade_, published by the Cobden Club, pp. 38-60). The objections to
such a solution rest on the fact that it involves the same fiscal
system in countries differing widely as the poles in climate, in
government, in habits, and in political opinions. 'It would prevent
any change in taxation in one of the countries constituting the
British Empire, unless the same change were made in all.' To require
Canada and Australia to adopt our system of external taxation, to
model their own internal taxation accordingly, and to continue to
insist on that requirement, whatever their own change either of
opinion or condition might be, would be simply destructive of local
self-government. 'Free Trade is of extreme importance, but Freedom is
more important still.'

V.

Among the devices for bringing the mother country and the great
colonies into closer contact, we do not at present hear much of the
old plan for giving seats to colonial representatives in the British
Parliament. It was discussed in old days by men of great authority.
Burke had no faith in it, while Adam Smith argued in its favour.
Twenty years before the beginning of