It must bo borne in mind, that taxation of tho kind has always a tendency to raise the price of goods by more than the amount of taxation, and to impose restrictions upon trade by more than the apparent restriction. The explanation may chiefly be found in tho i fact that each consumer does not import what he requires, but makes his se lection from an excessive importation. In other words, large stocks have to be kept, and the interest on the cost of these, the losses incident to their being held, and to their being damaged, are in some mea sure thrown upon so much of the stocks as passes into consumption. Again, the sol vent consumers have, in one shape or or other, to pay for those who do not pay; or, in other words, an extra price lias- to be charged 5 to cover bad debts. The cash pay ments that Shipping Charges or Customs Duties entail on importers thus become much increased by the time the goods reach the consumers. An increase in the price leads also to a reduction in 5 the stocks which tradesmen are able to. hold, and thus to a limitation of; the : choice of the coiunimer. It is in this way t that oppressive dtities limit trade mosi v BuyeranaUir&Uy flock to the market where -, there is the largest choice, aiid thus trade 1 tends to increase trade. The capital V laeked-upju payment of duties reduces ; by so much the means to keep in 1 stock a largo selection of goods. Tlu 7, trade of Melbourne, for instance, has been much. affected by tho protective it Tariff, for it has tended to lessen its a power to maintain itsell as a convenien

emporium for buyers to flock to. Heavy snipping charges in Buncd'n wouM ftimiJarly affect the power of the merchants to hold largo stocks futul to make the place ilio emporium for buyers from other parts ' o!f the Colony to iloek to. But shipping charges do not affect the cost of goods in wards only, they affect also outward freights, and tend to lessen the quantity of shipping demanding such freights. 