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^ I 
 
 Finances of Canada. 
 
 ?s- 
 
 BUDGET SPEECH 
 
 DBLIVBRBD IX THE 
 
 HOUSE OF COMMONS OF CANADA 
 
 ON 
 
 TVaSOAT, FSSRVABT QOtli. 1877. 
 
 • 
 
 BY THE 
 
 
 HON. RICHARD J. CARTWRIGHT. 
 
 Mituatr of Finance. 
 
 jf 1877. 
 
The EDITH and LORNE PIERCE 
 COLLECTION of CANADI ANA 
 
 Slueen's University at Kingston 
 
/(p. 
 
 .i 
 

 I 
 
 8 
 
 4 
 
 • « 
 
It 
 
 THE FINANCES OF CANADA 
 
 BUDGET SPEECH 
 
 DRLIVKRID I.N- 
 
 IS 
 
 4 
 
 THE HOUSE OF COMMONS OF CANADA 
 
 On Tuesday, February 20, 1877, 
 
 ffoN. Richard T. Cartvvright, 
 
 Minister of Flnanre. 
 
 Hon. Mr. CABTWRIGHT rose and said :— 
 
 AVhatever diflference of opinion, Mr. Speaker, may exist among hon. 
 members of this House as to the policy which the Government has 
 pursued in the past, or as to the policy which it may be the duty of the 
 Government to pursue in the future, I tliink that hon. members of all 
 sides and parties in this House will agree with me in the statement that 
 the financial year which closed on the 1st July, 1876, was one of an 
 exceedingly critical character, and one which will be long remembered in 
 our financial history. Indeed, in some important points, it may be said 
 to mark the turning point therein. Now, sir, I fear that the quesMons 
 witli which the House will have to deal to-day will prove to be of a 
 somewhat complicated character, and I must beg the indulgence of the 
 House if I should appear to be somewhat unduly tedious in my treatment 
 thereof. 
 
 During the year to which I have referred, our expenditm-e has 
 touched the maximum point which, as far as we can judge, it is Ukely to 
 touch for a considerable time to come, and on the other hand, as not 
 unfrequently happens under such circumstances, our income (partly 
 
from extraordinary and accidental causes, partly from the extreme 
 depression of trade,) has been reduced to a very low point,— I would 
 fain hope to the lowest point that it is ever likely to reach. However 
 that may be, the net resiilt is this : that whereas our expenditure during the 
 year amoimted to no less than $24,488,000 in round numbers, our total 
 receipts fell to about $22,687,000 — being a total deficit of no less than 
 $1,901,000. Now, Mr. Speaker, I would be the very last man in the House 
 to make light of this fact. View it as we may, account for it as we may, the 
 existence of a deficit at all, much more of a deficit of this magnitude, is a 
 circumstance of a very serious and formidable character, none the less 
 because it is the first avowed deficit, thougli not the first that has really 
 existed, since the period of Confederation. And, Sir, if I believed that 
 this large deficit was about to become chronic, then there could be but one 
 question bcfoie us, and but one course for the Government to pursue. 
 In such case it would undoubtedly be necessary to adopt very vigorous 
 measures fcr the purpose of restoring the desired equilibrium between 
 income and expenditure. But if it should appear otherwise, — if a fair 
 and impartial consideration of the items of which this deficit is composed 
 should show to the Hoiise that there is good ground for believing that 
 by far the jjreater part is due to extraordinary and abnormal expenditures,, 
 not likely in the nature of things to occur again, then, of course, the 
 advice which ought to be given to the House might be materially 
 modified. . - , 
 
 Nov; if hon. gentlemen having the public accounts in their hands 
 will do me the favour to refer to the various items making up this 
 deficit they will find that a very large proportion of this $1,901,000 is 
 composed of items precisely of the character to which I have alluded. In 
 the first place some $184,000 are charged on account of the expenses 
 of the boundary surveys between ourselves and the United States, which 
 expenditure was actually incurred prior to the close of the year 1873-74, 
 and which, perhaps, as a matter of book-keeping even, ought to have 
 been charged to the expenditure of that particular year. They will find 
 also that no less than |> 2 10, 000 is charged for special services for the 
 Philadelphia Exhibition, for the loan to the Mennonite settlers, and 
 for the relief gi'antcd to the distressed settlers in Manitoba, all of 
 which are clearly extraordinary and exceptional charges. Now, 
 the House will recollect, with respect to another large entry in the 
 Public Accounts that the policy of the present Government has always 
 been to close at as early a period as possible the great expenditure which 
 
 
8 
 
 mses 
 rliich 
 18-74, 
 have 
 find 
 |v the 
 i, and 
 i\\ of 
 Now, 
 lu the 
 [iways 
 which 
 
 was going on ui^on what are generally known as Minor Public Works — 
 i.e. buildings and improvements of various kinds in different parts of the 
 country; and they wiU also remember that this expenditure was largely in 
 excess of the amount which, in our judgment, ought to be properly set apart 
 for this service, at least under the present circumstances of the country, 
 and that of the total sum so charged, ($1,980,000, in round numbers,) 
 $980,000 may be fairly treated as exceptional and extraordinary expendi- 
 ture, incurred for extraordinaiy purposes, the accounts for which are closed 
 and which need not recur again. Tliere remains only one item more to 
 which I shall call attention, and that is the charge of $250,000, or there- 
 abouts, made for the change of guage, and also for the substitution of steel 
 rails for iron on those portions of the Irltercolonial , Railway which 
 belonged to the old Nova Scotia and New Brunswick railroad systems. 
 These I also hold to be exceptional charges, and charges whifch in a 
 very short time will disappear altogether from our books. Therefore, 
 the House, if it will add these sums together, will sec that I am justified 
 in saying that $1,574,000 of the total deficit is really and fairly due 
 to exceptional causes, 'and that this deficit may therefore, to a very 
 considerable extent, be looked upon, as I have said, as one of an abnormal 
 character. But, sir, this is not all. I have a further proof, and I am 
 happy to say a much raore satisfactory proof of the general correctness 
 of that view. I find on examining the records of my Department that 
 the total expenditure to the first day of January, 1877, amounted 
 to about $10,100,000, whereas the total expenditure for the same 
 services during the like period of the year ending the 1st January, 1876, 
 was no less than $10,900 000. In other words, the reductions which 
 tlie Government have effected have amounted to no less than $800,000 
 in tliat period alone, a process which if it can be continued during tlie 
 next half year, would of itself almost entirely remove the deficit. I 
 ought perhaps, to add that the current receipts up to that date from all 
 sources, have almost exactly equalled the current re«eipts to the same 
 period for the year 1876, and that I feel justified in now stating to the 
 House and to the country that had we been favoured with even a barely 
 average harvest- had there not been an unusual and extraordinary defi- 
 ciency in the harvest throughout many portions of the country — the calcu- 
 lations on which the Government proceeded last year would have been very 
 completely verified ; and that not only would the deficit have been greatly 
 reduced, but I have no manner of doubt that I would have been able to 
 state to the House that it would have been absolutely extinguished by 
 the end of the ciirrent financial year without fui-ther exertion on our part. 
 
!i 
 
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 i ■ 
 
 And h:rQ aiv, I would pause to correct an impression wliicli 
 may posaibly have been made on the minds of some hon. gen- 
 tlemen, unless they have considered with some little attention 
 the note which I have caused to be appended to the statement 
 of receipts and expenditure laid on the table. The half year anding 
 ou the fir.-*t of January in any year, as hon. gentlemen opposite 
 probably know, is usually a much more convenient point of compaiuson 
 than any later period, for this obvious reason, that a groat many of the 
 payments which are made after the first of January are made at irregular 
 intervals, as has boon notably the case in the present instance. In 
 point of fact, in the payments up to the date of the lOtlx February, 1877, 
 §1,250,000 in round numbers has been charged on acco'Uit of interest 
 and of the smlcing fund investments in excess of the amounts charged 
 for tiiosQ purposes at the same date of 1870. Now I need hardly point 
 out to hon. gentlemen that it is a matter of no importance whatever, m 
 calculating our ultimate expenditure, whether these sums are charged 
 ten or twenty days sooner or later in the months of February' or March ; 
 but I am especially desirous of calling their attention to the fact — 
 because the statement itself otherwise might bo completely misleading, 
 not only to them, but to other parties here and elsewhere: and I might 
 also add that even the statements of receipts are scarcely to be relied 
 upon, because we had clear evidence last year that a very unusual 
 quantity of money was paid into the Public Treasury about this time in 
 anticipation of a change in the tariff — a cu'cumstance which has not 
 affected our receipts to any appreciable extent dm-ing the present period. 
 
 There remains, Mr. Speaker, however, another and a graver question 
 to consider, and that is the question — not how these receipts compare with 
 each other, l)ut what are our prospects for the future ? Is the revenue, 
 already so reduced, likely to fall, or is it likely to increase ? Now, sir, 
 with respect to this, it is not in my power, it is probably not in the 
 power of any human bemg in Canada, to say with absolute certainty 
 what the final result may be. I can merely give the House the best 
 approximate estimate I can make, with tlie facts and inferences I draw 
 therefrom, and to leave it to the House to say how far I am warranted 
 in the conclusions I have arrived at. I may, however, note this 
 fact, that, large and unusual as the expenditures for the past year 
 undoubtedly were, they are, nevertheless, well within the actual receipts 
 for the year endmg on the 1st July, 1875, — the actual receipts for that 
 year liavmg amounted to about $24,650,000, whereas the total disburse- 
 
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mente of last year amounted to $24,488,500, sliowing (which is wortli 
 noticing) that, compared witli the actual receipts for the year 1874-75, our 
 gross expenditure, large as it is, is still within the mark then attained. 
 That is a point of some little importance, because, as I had reason to 
 show on a former occasion, our receipts for that year were very consider- 
 ably diminished by thef operation of a variety of causes, to which I need 
 not now refer ; and, besides, the year itself was not one by any means of re- 
 markable prosperity, as compared with those which preceded it. It may, 
 also, be observed that the great loss in our revenue has arisen almost en- 
 tirely from a falUng off in one source alone. A great number of the impor- 
 tant items which go to make up our revenue receipts remain fairly con- 
 stant. One, tliat of Excise, has considerably increased, as compared 
 with the preceding year. The great falling off, as everybody knows, 
 occurred in the item of Customs. That reduction was simply enormous. 
 The Customs have fallen off from a total of $16,851,000 in the 
 preceding year to a total of $12,823,000, being a reduction at the rate of 
 about $2,600,000, — a sum larger than our entire deficit. I might also 
 observe tliat there can be no doubt that had wo enjoyed an impor- 
 tation equal to that of 1872-73 and 1873-74 the receipts, large as they 
 were, would have been very much increased ; and, therefore, that the 
 real reduction in Cu^ioms is very considerably larger than even the 
 heavy sum which appears in our public accounts. 
 
 I think, I am justified, under these circumstances, in saying, — ^not in- 
 deed that the Government were able to foresee exactly what would happen, 
 but — tliat the policy and expectations of the Government were reasonably 
 and fairly accuratf. We did not base our pohey on the expectation of a 
 steady advance, we did not base our policy even on the supposition 
 that we could maintain the great importations which had existed up to 
 that time. We made our preparations not only for a stationary period, 
 but for one of very considerable retrogression. The only thing we were not 
 fully prepared for was the enormous and almost unprecedented retrogres- 
 sion in imports, which took place between 1874 and the close of 1876. In 
 order that the House may fairly understand how enormous that depres- 
 sion has been, I would like, with their permission, to make a short com^ 
 parison between our position now, and in 1867, which is the first year 
 with which we can make any accurate comparison. Now, as I have 
 excellent reason to remember, and as many hon. gentlemen in this 
 House no doubt have excellent reason to remembet*, the first year of 
 Confederation could by no possibility be defined as a speculative or even 
 
mm 
 
 6 
 
 a faii-ly prosperous year. On the contrary it was a year in which almost 
 every merchant or importer felt himself bomid to pursue an extremely 
 cautious and conservative policy. Theie were many special causes 
 which conduced to this. That year was the last of a period of very great 
 depression. We had just lost the advantage of the Keciprocity Treaty 
 with the United States, and two of the oldest and largest banks in the 
 old Province of Canada had been obliged to suspend, resulting, in one 
 case in total loss, in the other, in a heavy loss to the shareholders. There 
 were also, as the House knows, very serious political compUcations regard- 
 ing which it was not possible for any man then to see the end. In one 
 word, the whole commercial pohcy of the country at that time was, as it 
 ought to have been, characterized by extreme caution. Now, 
 ther " is very good reason for believing that our total population in the 
 year to which I have alluded, could not have exceeded three millions 
 and a quarter : — (I am speaking of com'se of the four Provinces which 
 originally formed this Confederation ;) and it has even been doubted by 
 some persons who are well able to form a correct estimate on this point, 
 whether it was even three millions and a quarter. Since then matters 
 have considerably changed. The five or six years which have elapsed 
 since we last took the census, with the great exception of the last, 
 have beeh years of prosperity. Thei'e has been a good deal of 
 immigration into the country, and the total loss from emigration 
 has been comparatively veiy small. I am therefore disposed to 
 put the present population of these four Provinces ut four miUions, 
 and if that point be granted — though I do not think -- of very great 
 importance to the correctness of my argument — then we have this 
 somewhat remarkable result: That whereas in 1867-08, the first year 
 of' Confederation, we had a total importation of seventy-three and a half 
 ^/^ y— ^ millions, with a population of three and a Mf milUons, yet in the year 
 just passed, with a population of four millions we imported only eighty- 
 seven milUons, Manitoba, British Columbia and Prince Edward Island 
 being deducted. In other words, not only had we gone back to the point 
 we occupied in 1867-68, but if you take a per capita estimate, our impor- 
 tations were positively three millions less, relatively speaking, iu. the year 
 which has just passed than tliey were at the commencement of Confedera- 
 tion ; and even if you choose to take the goods entered for consumption in 
 place of those actually imported you will have an importation pei- capita 
 at the present time barely equal to that in 1867. Now, Sir, 
 the House knows, I have not been usually chargeable with the reproach 
 of over extravaganoe in estimating our resources ; but I have always 
 
 f 
 
-seen clearly tliat since the culmination of Confederation, there has 
 l)een a very great and maiked increase in the wealth of this country, 
 and that many indications show that this has been far greater in pro- 
 portion than the augmentation of our population, and, therefore, whatever 
 be the correctness of my calculations regarding the mere matter of 
 population at these respective periods, if I can show, as I think I can, 
 that we have advanced very greatly in relative wealth since that time, I 
 am justified in saying to the House, that there is good reason for sup- 
 posing, that we have seen probably the worst of the present depression. 
 
 I do not attach any great value to such indications of prosperity 
 as are to be found in the number of banks established in this country, 
 but these banks do, undoubtedly, afford us ctjrtaui standards by 
 which we may estimate with tolerable precision the increased volume of 
 business throughout Canada; and I find that the general increase i'l 
 various matters which are usually considered reUable signs of the 
 advance of the population in wealth, have been very marked during 
 that period. For instance it is well known that the amomit of the 
 circulation of a country, at different periods, affords a very tolerable 
 indication of the volume of business ^ done therein; and I find tb'it 
 whereas, on the 1st of January, 1868, our total circulation amoui ted to 
 barely $14,000,000 at the same period of the year 1877, tliat cii-cu- 
 lation (deducting in each case the Government notes held by the banks) 
 had increased to. as nearly as possible, $26,000,000, an increase 
 of nearly 100 per cent. Similarly, within the same period, the bank 
 deposits in the Provinces of Ontario and Quebec, for which alone 
 we have returns, have increased from $29,689,000, to a no less sum 
 than $70,450,000, the absolute increase in that case being 180 per cent.; 
 and the deposits in Government Savings Banks from $1,686,000 to 
 $7,178,000, an increase of fully 400 per cent., which is specially valuable 
 as showing th? growth of habits of thrift and frugality among our popu- 
 lation ; while the quantity of shipping owned and registered in this 
 Dominion has grown from 776,000 tons in 1867, to 1,204,000 tons in 
 1877, being a total increase of Q5 per cent., — deducting from this estimate 
 tlie outlying Provinces since added to the Dominion ; and, although the 
 gross volume of exports do not show equal additions, yet the exports 
 •^of our own products from the four original Provinces have grown from 
 $45,000,000 in 1867, to $65,000,000 in 1877, exhibiting an increase 
 in this direction of 45 per cent. 
 
8 
 
 1 r 
 
 But, Sir, great as that increase is, an examination of the items of 
 which it is composed, will go even farther than the statement of the gross 
 bnsineBs transacted, in sliowing the accuracy of the statement I make, 
 that the absolute wealtli of Canada has increased far more than 
 in proportion to its population within the past decade. In tlio 
 first named year, Mr. Speaker, the total produce of the Fisheries 
 amounted in value to 13,357,000, whereas diu'ing tlie last named year 
 the exports from that source amoimted to about $5,250,000. The 
 exports of articles from the forest amounted to about $19,750,000 
 in 1876, &B against $18,250,000 in the first named year, this increase 
 bei^g very small, while the exports of animals and their products have 
 risen from $0,893,000 m 1868, to no less than $12,805,000 m 1875. 
 The exports of agricultural products during the same time advanced in 
 value from $12,871,000 to $20,469,000; deducting, in all these cases, 
 the exports of the Provinces recently added to the Dommion from the 
 calculations. There was also an equal proportionate increase in the 
 department of manufactures ; and there are some other increases which go- 
 incidentally to prove the truth of my statement. For instance, tlie total 
 importation of sugar has risen from fifty-seven millions of pounds 
 in 1868, to no less than one hundred and ten millions during the 
 year just closed ; and although I have not accurate statistics on the sub- 
 ject of life insurance, I believe I am correc^ in saying that within the 
 past five or six years, the gross amount of policies of Life Insurance 
 outstanding in Canada has increased from about $85,0000,000 to aboiit 
 $85,000,000. Moreover, new and valuable branches of trade, as the 
 House knows, have been developed ; a large additional area of land has 
 been taken ixnder cultivation, and the land which is imder culture is, as 
 I can testify concerning certain portions of the country, and as no doubt 
 other lion, gentlemen could testify respecting other sections of the country, 
 very much better cultivated than ever before ; our stock has increased in 
 number and greatly improved in quality ; our railroad communication is 
 better and more extensive than it was, as compared with the previous 
 period ; and although a large portion of the railway expenditure incurred 
 within that period was of little practical utility, — much money being spent 
 wastefully and much prematurely — ,and although I fear that no incon- 
 siderable part of the inflation and extravagance, from the effects of which 
 the country is now suffering, has resulted from the improvident engage- 
 ments which were entered into in that direction, whether by English 
 shareholders or Canadian municipalities, still, notwithstanding all these 
 drawbacks, it is clear that much valuable work has been done, and that we are 
 
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 lisli 
 
 [c80 
 
 I arc 
 
 9 
 
 justified in believing that considerable profit will accrue to the country 
 at large therefrom, however misdirected may have been the eflforts of 
 many of the parties originally engaged in these enterprises. I may 
 add that the Customs Returns up to the pi»sent time afford very tolerable 
 evidence that an improvement has already commenced. Not only 
 have the receipts maintained themselves fairly, as compared with the 
 corresponding period of last year, but I also note with pleasure, that 
 there has been a decided increase in tliat great item of tlie 17^ 
 per cent, list, on which, during last year, we sustained our 
 heaviest loss. I am sorry to say, Mr. Speaker, that I cannot 
 give an equally good report of the condition of the Excise 
 Department. Though the receipts in this branch ha\e been 
 as large as they were during the year 1874-75, there has been a decided 
 loss as compared with 1875-76, partly perhaps, attributable to tlie 
 exertions of our temperance friends, partly, no doubt, to diminished 
 consumption from ordinary causes, and partly to illicit distilla- 
 tion, which the low price of barley and hard times combined, have 
 contributed to develope in certain portions of the country. Other 
 branches of revenue have not only maintained themselves well, but 
 have even increased somewhat, compared with the corresponding period 
 of last year. I may also observe that our railway receipts, which are 
 necessarily just now at then* lowest ebb, may, I think, be reasonably 
 expected to go on increasing, and improving, as new traffic develops, as 
 ought and probably will be the case, along the lines recently opened. 
 
 Turning to the estimates I have recently had the honour of presenting 
 to the House, you will perceive that the total sum demanded for tlie 
 service of the year varies a little from the sum demanded for the past year 
 — amounting to $23,167,000 as against $23,031,000, an augmentation 
 of about $130,000. Now with reference to the augmentation, I may ob- 
 serve that it is almost purely nominal, being composed in part of an item of 
 about $nl5,000, which appears on both sides of the account, (in one case 
 as an addition to the Sinking Fund, and in another as investment of the 
 interest of the sinkuig fund,) and in part of $60,000 or hereabouts, com- 
 posed of interest on money, which we are about to pay . and for which 
 funds are lodged and actually bearing interest at this moment. The 
 estimates are therefore substantially almost identical in amount with 
 those submitted during the preceding year, although, as the House will 
 see by reference to them, we have been obliged, in consequence of the 
 conti'action of the recent loan in London, to increase the annual charge 
 2 
 
 I 
 
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 10 
 
 [( i ! 
 
 on the public debt by nearly $600,000. These estimates in a general 
 way will speak for themselves. There are, however, two or three items 
 to which I would desire to call attention. A certain increase is 
 necessarily demanded for the efficient performance of the Light-house 
 and Coast Service, which is partly «lue to the natural increase of the cost 
 of this service, and partly for repairing injuries caused by violent 
 storms on some portions of our coast. The increase, however, to 
 which most interest and probably most importance should attach, 
 is the large item of $86,000, required for the services for Indians, 
 to which I shall presently allude. Before doing so however, it is a 
 matter of some importance that the House in looking at these estimates 
 should bear in mind how very large a proportion is occupied by charges 
 over which we can hardly be said to have any control. If the 
 House will apply to these Estimates the same division introduced 
 in the abstract in the Public Accounts, they will find that the 
 total charge for "ordinary expenditure" during the years 1877-78 is 
 no more than $6,603,848, being a reduction of very nearly two 
 millions on the actual charges which were incurred for these services 
 in either the year 1878-74 or 1875-76 ; and that, too, although as the 
 House will perceive, the expenditure for Indians, to which I have already 
 alludedj has increased enormously, and although there is a much heavier 
 charge on accoimt of the Mounted Police in the North West than in 
 1878-74. Now, sir, these charges for Mounted Police, for Indian treaties 
 and indeed, for the whole Government of the North-West, are, I think in 
 a certain sense and to a certain degi-ee, to be fairly regarded as charges 
 on capital. Not that I at all propose so to treat them or remove them from 
 the ConsoUdated Fund ; but it is evident to every lion, gentleman that 
 when we undertook the government of that great region, we un- 
 dertook a task in performing which we must make very large present 
 sacrifices for the sake of the future gain which we hope may accrue 
 therefrom. And I desire to call the special attention of my lion, friends 
 from British Columbia, who, on former" occasions, have made it a charge 
 against the Government to which I belong, that we were utterly callous 
 and indifferent to the prosecution of the Pacific Eailway, to the fact that 
 the present Government has expended, from 1st July, 1874 to 1st 
 January, 1877, no less than $6,000,000 on the work of the Pacific 
 Railway and the survey thereof; and that the present outlay for 
 Mounted Police and for Indian Treaties, and the Government of 
 the North-West, — all of which are absolutely indispensable prelimi- 
 naries to any successful attempt to colonize that region or con&truct a 
 
 
11 
 
 general 
 36 items 
 rease ia 
 lit-house 
 ' the cost 
 
 violent 
 rever, to 
 
 attach, 
 Indians, 
 , it is a 
 sstimates 
 
 charges 
 If the 
 troduced 
 that the 
 )77-78 is 
 irly two 
 
 services 
 h as the 
 e already 
 h heavier 
 it than in 
 ti treaties 
 [ think in 
 i charges 
 lem from 
 nan that 
 
 we iin- 
 3 present 
 ,y accrue 
 II. friends 
 
 a charge 
 y callous 
 
 fact that 
 
 4 to Ist 
 
 e Pacific 
 
 utlay for 
 
 ament of 
 preUmi- 
 
 in&truct a 
 
 railway through it, whether it be done with our own funds or by agree- 
 ment witli contractors or other parties, — will entail, an addition to our 
 ordinary annual charges of no less than $800,000. Now, if that sum 
 were to be capitalized, it would represent, at 4^ per cent., no less than 
 $18,000,000. I think, therefore, whatever other charge the Govern- 
 ment may be liable to, that of indifference to the prosecution of this 
 railway, or reluctance to do everything which we could reasonably and 
 fairly be expected to do for that purpose, is certainly not one. 
 
 Hon. Mr. TUPPER — Do I understand the hon. gentleman that the 
 expenditure since 1874 on the Pacific Railway has amounted to 
 16,000,000 ? 
 
 Hon. Mr. CARTWRIGHT— From 1st July, 1874 to 1st January, 
 1877, the amount of $6,000,000, as nearly as may be, have been ex 
 pended on the railroad works and the surveys, — the survey of course, 
 Absorbing a considerable portion of that sum. 
 
 Before proceeding to discuss other matters, it may be as well that I 
 should give the House details of the loan which I contracted recently in 
 London, and the reasons which induced me to issue it in the mann^^r I 
 did. As the House is aware, in last November I had occasion to issue a 
 loan for .£2,500,000 sterling in London, at the fixed price of £91 per cent. 
 That loan was made with the usual allowances customary in such cases ; 
 and the usual commission of one per cent, and no more was paid to the 
 agents entrusted with tlie negotiation thereof. I may add that that loan 
 fetched the highest price ever obtained on our own unaided credit, and I 
 may further add — and it is a good illustration of the correctness of the 
 judgment of the Government in deciding to issue a four per cent, instead 
 of a five per cent, loan — that that loan fetched absolutely a higher price 
 at wholesale than the highest retail price obtainable for our five per 
 cents., payable in 1903, the actual value of that loan at 91 being as 
 nearly as possible equivalent to five per cents, at 108, whereas the cur- 
 rent selling price of those five per cents, was barely from 105 to 106^, 
 deducting accrued interest. Now, Mr. Speaker, the bare statement of 
 these two facts might, and, under ordinary circumstances, would pro- 
 bably have been sufficient ; nor should I have felt it necessary to weary 
 the House with a prolonged explanation of the reasons which induced me 
 to issue this loan at 91, or to adopt the mode of issuing it at a fixed 
 price instead of by way of tender, save for one consideration. I am 
 aware that the propriety of the course I adopted has been called in ques- 
 
12 
 
 tion; and (which is of much mbre importance) I foresee that it is neces- 
 sary to disabuse the mind of the pubhc of some gross misconceptions on 
 this point, if we would avoid serious difficulty and danger in future nego- 
 tiations ; and I shall, therefore, be compelled to speak at some consider- 
 able length as to the exact position in which Canadian loans have stood 
 for some few years past, and my grounds for the steps I took. And, in 
 the first instance, I must beg the indulgence of the Ho^jse while I glance 
 at the general position of Canada in the London money market. It 
 must be remembered that the late loan was only one of a sericb, — that two 
 other loans had been issued, and that it was known that other loans must 
 follow within a very short period. Now, I do not at all wish to arrogate 
 to myself any peculiar wisdom in the negotiation of these matters, but I 
 must say this, — that no Canadian Minister of Finance has ever he i such 
 a task before him, or has ever had to discharge it under circumstances 
 similar to those under which it has fallen to my lot to issue a series of 
 loans in London. The House must bear in mind that the change of 
 security from a 5 to 4 per cent, stock, was necessarily an experiment, and a 
 difficult and delicate experiment, and that there was a great deal of tacit 
 but very decided resistance to such an issue. It was perfectly under- 
 stood on the Stock Exchange and elsewhere that, if Canada succeeded in 
 estabUshing 4 per cent, as the rate at which she could borrow, all the 
 other colonies of good standing would follow her example, and possibly 
 other foreign countries ; and therefore, not imnaturally, considerable diffi- 
 culties were thrown in our way ; nor was it a very easy matter to place 
 Canadian four per cents, on the market as a favourite and popular secu- 
 rity. Indeed, for some time it was very doubtful if we could establish 
 them at all. It was matter of notoriety in London that a large amount 
 of our loan of 1874 remained for a long time unabsorbed in the hands of 
 the capitalists who had taken it, and perhaps it is not so well known as 
 it ought to bo that this loan was for a time at a discount in the Lonilon 
 market,whioh would have been enhanced but for the precautio)is taken 
 by large holders of the loan to sustain it. Under the circumstances in 
 which I for-«d myself placed, I think the House wiU agree that the 
 Finance M^ister had a double duty to discharge. It was not enough 
 for me to negotiate a single loan on good terms. I was boimd to obtain 
 the best reasonable price for our securities; but I was also bound to take 
 all possible precautions to guard against the risk of failure. I need 
 scarcely say that there can be no man in the country more anxious than 
 the Minister of Finance, whoever he may be, to obtain as good a price 
 as he can for the securities of Canada, but I may add that there is neces- 
 
 SI 
 
 a| 
 
 p| 
 al 
 
 \ 
 
 i 
 
18 
 
 ih&t the 
 enough 
 
 obtain 
 
 to take 
 
 need 
 
 us than 
 
 a price 
 
 neces- 
 
 sarily no other man in Canada who is or who ought to be so keenly 
 alive to tlie possible consequences of failure, or who, if he is fit for his 
 position, is so well able to judge of the mischief which may ensue therefrom, 
 as the Minister of Finance ; and therefore I say that any man who goes to 
 London charged with such a duty has the right to expect that he will 
 receive from his colleagues and fi'om the counti-y a reasonable amount of 
 confidence, and full plenary power to do as he may judge best m tlie 
 interest of the country. 1 do not object to any fair criticism of my con- 
 duct, but I desu'e to point out that I had two things to consider, — not only 
 how to get the best immediate price, but the possible consequence of 
 failure in negotiating this loan, which I do not hesitate to say would have 
 been of the most serious moment to Canada. I d>j not wish to cast 
 the least reflection ujion any hon. gentleman opposite; but I have 
 felt on more than one occasion that it was a personal misfortune to 
 myself, and to the Crovernment, that ti^c/e is no lion, gentleman on 
 the Opposition benches, who has at any time filled the position of Minister 
 of Finance. I felt that if any of those distinguished gentlemen who filled 
 the office before me, if Sir Alexander Gait, Sir Francis Hincks, or Su" 
 John Rose were sitting beside the hon. member for Kingston, it would 
 be unnecessary for me to enter into these lengthened explanations, as 
 they would understand that the Finance Minister had only taken the 
 precautions which they themselves never failed to practice, and that 
 they would be the first to declare that a Finance Minister who neglected 
 to take these precautions, for the sake of a little temporary popularity or 
 a little doubtful gain, would deserve the severest censure of the intelli- 
 gent portion of his countrymen. Nor would they have made the vulgar 
 blunder, to which a great deal of all this misconception is owing, of catch- 
 ing at some stray quotations in some odd English newspapers, and dis- 
 regarding the steady current of quotations for months together. To 
 judge of the price which can be obtained for any loan at wholesale by 
 mere accidental retail quotations shows a very partial acquaintance with 
 the real state of the case. If quotations are continued for a long time, and 
 are genuine bondfiile quotations, of fan." amount, they do, it is true, afford a 
 guide which may be relied on to a great extent, tliough it often happens that 
 a market which would be well sustained with a small quantity of stock to 
 dispoie of, would drooj) exceedingly if any large amount should be sud- 
 denly thrown upon it. As is well-known in London and, as I should imag- 
 ine, ought to be equally well-known in Canada, there are many stocks in 
 wliich a peremptory order to buy or sell even the small amount of £50,000 
 or £100,000 sterling would have sent the stock up or down, from 1 to 2 
 
m 
 
 i I 
 
 14 
 
 per cent., as the case might be. Moreover, the fact seems to liave escaped 
 observation tliat tlie quotations usually referred to are those of the old 
 loan of 1874, a loan which, having run 2.J years, is necessarily more 
 valuable and likely to attract the attention of largo investing companies 
 in preference to a similar loan which has 80 years to run. I am not, 
 however, disposed to confine the case to mere general arguments. I have 
 here a statement carefully pr pared from journals of high financial repute 
 — from the London Economint and tlie Investors' Monthlt/ Manual — show- 
 ing the actual quotations, after deducting accrued interest, (another matter 
 which has been entirely overlooked) of the old loan, which, as I have 
 shown, was preferable to the new. Now, sir, on the 1st July the 
 Economist quotation, (which I think lion, gentlemen will admit to be as 
 high an authority as can be produced) showed that the actual retail price, 
 of our four per cents, varied from £90 6s. 8d. to £01 6s. 8d. — a quotation 
 which was not disturb© J diuring the entire month of July. In August 
 it had risen to £90 lis. 9d., varying towards the close of the month 
 from 90^ to 91^. The same state of things prevailed not only through 
 September, but through the greater part of October, and only towards 
 the close of October, through legitimate but accidental and temporary 
 causes, did it range as high as 92^. The quotations from the Investors' 
 Mamial, deducting accrued interest, and based on actual business done, 
 shew that the quotations varied from 90^^ during two of these months to 
 90j in September, and reached the maximum of 92 in the month of 
 October. This is all" the more important because, in each case, these 
 figures represent the actual latest business done ; and though I am quite 
 aware that one or two stray quotations may have ranged a point higher, 
 I had very excellent reason to know that this advance was purely 
 temporary and could not possibly have been maintained. 
 
 Now, sir, while I am on this matter I ought to state to the House 
 the fact that, so far from those gentlemen who engaged in this tran> 
 saction having the opportunity of making a lai'ge sum of money at the 
 expense of Canada, the actual fact was that, the moment the new loan was 
 issued, the price of the old loan, (which, as I said before, is a preferable 
 security) appears to have fallen to 91^, a rate at which I need not 
 remark no possible profit would accrue to any body who held the new 
 issue ; and it appears during the whole month of November never to have 
 touched as high a rate as 92, (deducting accrued interest,) while 
 during the month of December it varied from £90.18 to £91.5, these 
 quotations being taken from the official markings on the Stock Exchange 
 
 ■ -v- 
 
15 
 
 re escaped 
 of the old 
 irily more 
 companies 
 I am not, 
 K. i have 
 nal repute 
 tl — show- 
 ier matter 
 IS I have 
 July the 
 to be as 
 ;tai] price, 
 quotation 
 n August 
 ;he month 
 y through 
 y towards 
 emporary 
 Investors* 
 less done, 
 nonths to 
 month of 
 ise, these 
 am quite 
 it higher, 
 IS purely 
 
 le House 
 his tran< 
 at the 
 
 oan was 
 referable 
 leed not 
 the new 
 
 to have 
 while 
 
 5, these 
 
 xchacge 
 
 ,) 
 
 from the 10th or 12tli November to the Slst December, 187C. To 
 those who understand the meaning of these quotations, it will be appa- 
 rent that it would be perfectly impossible for anybodj' to gam any wide 
 profit out of our loan by purchasing into tlie new issue at a fixed price 
 of 91, even deducting the allowances to which I have alluded; and if any 
 hon. gentlemen are desirous of maintaining that it is possible for any 
 man — I do not c ire who he may be, — I do not care what security he may 
 be dealing in — to obtain anything like as high a price at wholesale for 
 a loan of several railUons sterling thrown suddenly on the London 
 market, as they can for the same securities by retail, I would desire to call 
 their attention to the circumstances under which a variety of loans were 
 issued by other Governments doing business in the same market. 
 
 Country. 
 
 Biuzil 
 
 do 
 
 Chilian 
 
 do 
 
 Belgian 
 
 French 
 
 do 
 
 Hungarian 
 
 do • 
 
 [talian Tobacco loan 
 
 do 
 
 Russian 
 
 do 
 
 Swedish 
 
 do 
 
 Noinvegian 
 
 Date. 
 
 1871 
 1875 
 1873 
 1875 
 1874 
 1871 
 1872 
 1873 
 1874 
 1868 
 1869 
 1873 
 1875 
 1868 
 1876 
 1876 
 
 Amount 
 
 of 
 
 Loan. 
 
 £3,000,000 
 5,301,000 
 2,276,500 
 1,000,000 
 1,440,000 
 
 88,000,000 
 140,000,000 
 7,500,000 
 7 ^00,000 
 . ,404,762 
 6,200,000 
 
 15,000,000 
 
 15,000,000 
 1,150,000 
 2,000,000 
 1,320,000 
 
 Fixed 
 at 
 
 89 
 
 96J 
 
 94 
 
 88;- 
 
 75, ; 
 82;- 
 
 84^ 
 89 
 
 9U 
 81t 
 
 73J 
 
 93 
 
 92 
 
 90 
 
 96i 
 
 96| 
 
 S 
 
 f2^ 
 
 5 p.c. 
 5 
 5 
 5 
 3 
 5 
 5 
 6 
 6 
 6 
 5 
 5 
 
 6 " 
 
 Quotations of pre- 
 vious issues of 
 similar cliai-acter. 
 
 97 to 99. 
 
 100 to 101. 
 
 97. 
 
 91 to 92. 
 
 No quot. in Engl'd. 
 
 No previous issue. 
 
 84.85 frs. to 87.85. 
 
 > 1st issue. 
 
 No previous issue. 
 
 84. 
 
 96^. 
 
 96 to 98. 
 
 1st issue in Engl'd. 
 
 97 to 99. 
 Ist issue. 
 
 Taking all the loans of any note whatever which have been made during 
 the period from 1868 or 1869 up to the present time, we find these 
 results : — Brazil in 1871 issued a loan of £3,000,000 at 89,— the market 
 price at that time being no less than 97 for similar securities. These 
 were, however, to expire in a fixed period of no great length, and there- 
 fore that quotation does not quite fully represent the actual state of 
 
w 
 
 >\\ 
 
 16 
 
 things ; but in 1875 that country issued an important loan for a larger 
 amount at 96^; the then market quotations being from 100 to 101. 
 The Republic of Chili about the same time issued a loan at 94, the 
 current market price thereof being 97. It afterwards issued a loan at 
 88^, the detailed quotation being 91 to 92. Apparently, the loan issued 
 by the French in 1872 was placed at about 80. In the case of the 
 Italian loan, which was issued at about 09, the difference was also very 
 great. For that, I presume, there are sr^Jcial causes. In the case of 
 Russia, in 1878, there was also a great difference. In the case of 
 Sweden, in 1876, one or two loans were issued at 96J,the retail quotation 
 being 97 and 99. The same remark applies to the Norwegian loan, 
 made at nearly the same period as mine. The fact of the matter is this. 
 Sir, — and it is thoroughly well understood elsewhere, and is, I may 
 say. apparent on the face of it — that it is quite impossible to obtain the 
 same price at wholesale for any sum you may place on the market, by 
 at least one or two per cent., as you can obtain in the small retail trans- 
 actions on which these quotations are usually based. 
 
 But if my hon. fi'iends ask for fui'ther proof, I think I might fairly 
 refer them to the circumstances imder which Mr. Tilley negotiated a loan 
 in 1873. Now, it must be borne in mind that Mr. Tilley was able to present 
 to the English market a security having very great advantages. Our 
 four per cents., bearing the Imperial guarantee are, to say the least of 
 it, as good as any security which exists in London or any other part of tlie 
 world. Mr. Tilley issued that loan, — and I desire to say, in the first place, 
 that I am not in the slightest degree censuring Mr. Tilley for anything 
 which has been done : I am merely calling attention to the circumstances 
 under which he acted and to the utter impossibility of obtaining as high 
 rates for a wholesale transaction as for a retail operation, however good 
 the security may be. Although it bore the Imperial guarantee, he was 
 unable to obtain as much for it, within five per cent., as Sir John Rose 
 obtained for the mixed loan issued by him in 1868-9, allowing for the dis- 
 count on our five per cents at that date. The actual result was that Mr. 
 Tilley netted about 102^, the retail price of guaranteed fours at that mo- 
 ment, as any hon. gentleman can see by reference to the Economist, being 
 from 104^ to 106, while I, who netted 90^ on quotations ranging from 92 
 to 98 at retail, got quite as close to the maximum price with my decidedly 
 inferior security as Mr. Tilley was able to do with the loan he issued. I 
 may mention another curious fact bearing on a point to which I hereto- 
 fore called the attention of the House, and that is this : — that whereas 
 
 k % 
 
^ 
 
 17 
 
 the real intrinsic value of Mr. Tilley's fours, when issuecl, was no less than 
 i'114, as contrasted with the then price of consols, which were 92, Mr. 
 Tilley was unable, as the House will see, to obtain within twelve per 
 cent, of the sum which he ought to have got if we merely regard the 
 actuarial value of the two securities, — the fact being that it is a matter 
 of considerable difficulty in England to negotiate any loan at a premium, 
 and such is the effect of long custom or of prejudice in the London 
 market, that any new security, no matter how good the guarantee may 
 be, is always very much cheaper than the old and better established 
 ones. Now, I have already alluded to the fact that the loan of 1874 was 
 a loan from which almost all the parties, who took an interest in it, 
 derived very little or no profit. The House is probably not aware, but 
 the returns of the Stock Exchange and other official documents will show 
 that all through 1875 and the greater part of 187G our loan (deducting 
 accrued interest) was positively at a discount — in one or two in- 
 stances going to as low a figure as 8GJ. I am not disposed to inflict 
 on the House another long list of those quotations, but I shall be 
 happy to verify the statement either with the hon. member for Cumber- 
 laud or any other gentleman who desires at his leisure to investigate it. 
 
 As to the question of employing middlemen — in other words as to the 
 possibility of dispensing with agents and other intermediaries in London, 
 in negotiating our loans, — I beg the House to remember that any country 
 going to London to borrow money, must, more or less, conform to the 
 customs of that market. The Loudon market is, to a very great extent, 
 under the control of a cori)oration, (I might almost say of a close corpora- 
 tion,) consisting partly of a number of very powerful capitalists, and partly 
 of brokers and agents ; and the position which the outside English invest- 
 ing public occupy in relation to Canada can be only described as one of 
 great indifference, of which a substantial proof may be found, in the fact 
 that many EngUsh papers of large circulation do not insert Canadian 
 or indeed any colonial securities, among their daily quotations of tran- 
 sactions on the Stock Exchange. This, no doubt, is a matter to be 
 regretted, and it is one which I hoi)e to see remedied by-and-bye : 
 meantime, I think I would have been very much to blame, if, under 
 such circumstances, I had failed to avail myself of the ordinary means of 
 placing our loans on the market. If I had done so I would have run the 
 risk of making a total shipwreck of the transaction. In fact the whole 
 question of employing middlemen and agents in London, resolves itself, 
 to a great extent, into a question of insurance. No doubt, under a 
 
1 
 
 18 
 
 I 
 
 peculiar combination of favourable contingencies, you can float a loan 
 without tlie intervention of thcHC agencies ; but, in ho doing, you are 
 very much hi the position of a merchant who sends a ship on a dan- 
 gerous voyage with a most valuable cargo uninsured, and I did not feel 
 it in tlie interest of Canada to run any risk at that moment, which I 
 could fairly and honestly avoid. 
 
 As to tho other question, whuthor, even admitting all that Ifhavo 
 said, it was a prudent act to issue the loan at a tixed price or by tender, 
 I frfinkly admit that this is a fair question for argument, — as is also the 
 question of the employment of agents, — but I repeat it is necessary in all 
 such cases to pay some regard to the temper and preferences of the mar- 
 ket in which you are dealing. Now, Sir, the same remarks that I made with 
 respect to the question of issuing loans at wholesale prices, one or two 
 per cent, below ordinary retail quotations, applies, and applies with even 
 greater force, to this question of issuing at a fixed price and not by ten- 
 der. Let us take the list already referred to, which is in fact a list of aU 
 the countries which have issued any loans of magnitude — that is, all the 
 countries of good standing — for the last eight years. Brazil, in 187 a, 
 issued a loan of £3,000,000 stg. at a fixed price; in 1875, one of 
 £5,500,000 at a fixed price: Chili, as I before remarked, did the same: 
 the Belgian Government issued one of £1,400,000 at a fixed price: 
 France issued her two large loans at a fixed price : Hungary issued its 
 large loans in the same way : Italy did the same : Russia did the same : 
 Sweden issued its loans, each of similar amount, at a fixed price : 
 and, lastly, the Norwegian Government, almost at the same time 
 that we issued ours, issued its (at a much cheaper rate to the 
 investor than mine,) also at a fixed price. These loans exliibited 
 every yariety of diflference m the rate of interest and in other particulars, 
 but they presented one common point — that they were all issued at a 
 fixed price and not by tender. I find that they were issued by houses of 
 the highest reputation, by the Rothschilds, Baring Bros., Stern Bros, 
 and otliers, and I put this question to the House : — Are we to suppose that 
 all these countries and all these well-known houses are entirely mis- 
 taken in their judgment of what is desirable and wise, in dealing with the 
 London market ? Or are we to believe that these houses so well and 
 honourably known in every exchange in the world, conspired together to 
 defraud those who put trust in them ? I repeat. Sir, that although these 
 loans differ in almost every imaginable particular, the House will find 
 them all alike in reference to the important points, — that in each and 
 
 '•'"~'-^*- 
 
10 
 
 every case tlie wholesale price is less tlmii tho retail price, nntl that in 
 each case they were issued at a fixed price and not by tender. I need 
 not say that this was a point lonj? and earnestly discnsKcd by the agents 
 and myself. 1 was aware of the prejudice that existed here on this 
 question ; antl if I could have done so witl; a duo regard to tho interests 
 of Canada, I would have humoured the prejudice — groundless, as I 
 believe it to be. But I think that it will bo found on due examination, 
 that there are only two cases in which parties may safely venture on 
 issuing by tender. First, where, as in the case of a bond bearing the 
 Imperial guarantee, they have security so gool that they are masters of 
 the situation ; or in cases where tim? or imu ediatc success in the 
 negotiation is a matter of indifference. As an appropriate illustration 
 of the correctness of this view, I may stato that one of tho most 
 important Australian colonies had occasion sometime ago to negotiate a 
 loan of £1,500,000. That loan was offered to the market by tender, 
 with a sealed mmimum. The tenders at or above the minimum 
 only amounted to some i'300,000. The minimum was then dis- 
 closed and tenders again invited, but only another £.S00,000 or 
 £400,000 could be obtained. After many efforts to float it, the 
 loan was finally withdrawn and the balance was tjvken up by the 
 Australian banks, on private arrangements best known to themselves. I 
 need not say that our case was directly opposite to this. Time was of 
 •ital importance, and any failure in the negotiation would have been 
 attended with serious consequences to tie credit of this country. As it 
 was, we just escaped meeting with impleasant reverses. Altiiough no 
 time was lost, although our prospectus appeared in the London papers tlio 
 very moment that the armistice was agreed to between Tiu-key and Servia, 
 yet within twenty-four hours of the closing oi" the loan, the whole market 
 was completely deranged by the speech made by Lord Beaconsfield at the 
 Mansion Hou^e, and replied to by the Czar of Russia next day ; and I 
 have the best possible reason for saying that it would have then been 
 impossible to negotiate a loan on anything like the advantageous terms 
 that Canada actually obtained. While on tliis question I may repeat 
 that the London Stock Exchange have taken the strongest possible ground 
 against the issue of loans by tender at sealed mininums, and that I 
 much doubt if it would be pnident to adopt that method of floating a 
 loan, except perhaps in the case of Imperial guaranteed bonds. It is 
 well-known that in the case of an open minimum thei*e is not much chance 
 of getting more than a few shillings above the price named, and that 
 
' ) 
 
 !! I 
 
 IN I 
 
 20 
 
 there was but a very (loubtlul tulviintajjje to be j^iiinod in luuninti; the risk, 
 as we certainly Avould have done, of losing; a great many valuable sub- 
 scribers, — men whose names I desired for various reasons to see recorded 
 on the list of subscribers to the Canadian loan. Unhtippily, tliere seems 
 to exist a rather serious delusion as to the readiness with which we can 
 borrow money in the Tjoudon market. Doubtless our securities are 
 gradually creeping into a good position there ; but unhai>pily the mere 
 fact that money is plenty in London does not by any means insure suc- 
 cess to a Colonial ^linister of Finance in negotiating a loan there. Money 
 is plenty in a great many cases simply because credit is scarce, and it, by 
 no means, follows that it is therefore always easy to induce investors to 
 put their money in a comparatively unknown security. I may add that 
 there were certain special features in our case which I was bound to 
 consider, and which this House was bound to consider. It 
 is perfectly well-known that Canada is not looked upon with 
 a friendly eye by persons having great influence with the 
 London i^ress. More than once, during the progress of the 
 
 negotiations of previous loans, hostile articles have appeareu in Lon- 
 don journals of widely extended circulation ; and I had good reason 
 to know that if there was much delay we might be exposed 
 to the same adverse criticism, to the very serious detriment of 
 the operation. It must be borne in mind that it is as well known in 
 London as it is h :'e — at least by those interested in such matters — 
 that a very coibiLljrable deficit iu the revenue of the past year was 
 inevitable ; in fact they had only to refer to my budget speech to see as 
 much. The depression which existed in Canada and all over North 
 America, was perfectly notorious, and would necessarily exercise an 
 unfavourable iutiucuce upon this class of securities. The fact that we 
 had heavy engagements to meet for various public works, and that we 
 had a serious difficidty with British Columbia in regard to the Pacific 
 Eailway was eciually well-known; and, furthermore, we were weighted down 
 by the ckcumstance that a very large amount of English capital, amount- 
 ing in all to a sum very nearly equal to the whole of the national debt of 
 Canada, is unhappily locked up in railway investments from which very 
 little return is at present looked for. I need scarcely add that it was 
 likewise known to many on the Stock Exchange that large masses of 
 Canadian indebtedness were maturing within one or two years, and that 
 other loans must be contracted for the purpose of paying them oft". 
 Now, Sir, bearing in mind the facts I have stated, and bearing in mind 
 that, for months l^foro and for months after the issue of this loan, the 
 
 'U ' 
 
21 
 
 the risk, 
 able sub- 
 recorded 
 ;re seems 
 1 we can 
 ■ities are 
 the mere 
 sure suc- 
 e. Money 
 aud it, by 
 vestors to 
 add that 
 bound to 
 er. It 
 )on witli 
 vith the 
 s of the 
 i in Lon- 
 3d reason 
 exposed 
 •iment of 
 known in 
 matters — 
 year was 
 to see as 
 ^er North 
 ercise an 
 t that we 
 that we 
 le Pacific 
 ted down 
 amount - 
 al debt of 
 lich very 
 at it was 
 masses of 
 and that 
 hem oft", 
 in mind 
 loan, the 
 
 retail iirice barely ranged from 90 to 02 at the very outside, with perhaps 
 the exception of one or two stray unimportant quotations, I must say it 
 did but small credit to the good sense and patriotism of my critics to 
 find that, without waiting for those explanations which I alone Had the 
 power to give, there were i)orsons found indiscreet enough to attack not 
 only my conduct in negotiating the loan — which they were perfectly 
 welcome to do — but the personal honour of the distinguished hous(>H which 
 had been employed l)y me, as tlioy were for many years by my prede- 
 cessors, in conducting the financial aft'aii's of Canada. Those attacks 
 were dastardly, dishonourable and thoroughly to be deprecated : I trust 
 before this debate closes there will be an universal expression of disgust 
 at it from both sides of the IIoiisc ; and I desire to say with reference 
 to the houses of IJariug and Glyns, that on both occasions, in 1 874 and in 
 1876, every penny of our stocks which they took, was taken up especially 
 at my recpiest, and at my earnest desire. They asked for none, and 
 wanted none. It was I who took the responsibility of inducing them to 
 subscv'be, for reasons which would induce me, I'lider similar circum- 
 stances, to repeat the request. And I have to add that the special 
 means which these firms have of ascertaining the true value of the stock, 
 and the fact of their being very large subscribers, had a great deal to do 
 with the success which attended this loan. That success was remark- 
 able, and was attributable to two causes. First tb the precautious 
 taken; and secondly to our good fortune in the choice of the 
 ' moment of issue. I need not say that in the present state of Europe, 
 and in the state in which it was when I last made my appearance 
 in London, no man could say how soon the market might have 
 have been thrown into utter confusion, or when the present complications 
 might have resulted in universal war, or how that contingency might 
 have affected our chance of borrowing money at all. I hold that it is the 
 very keystone of a sound financial policy for a country in our present 
 condition with such large responsibilities, accruing and accrued, to be 
 always well in advance, and never to allow ourselves to wait for the last 
 moment for obtaining a loan,-— more especially as it really costs 
 this country very little, as I am always able to obtain nearly, if not 
 altogether, as good a rate for whatever amount I have in hand as I have 
 to pay to the lender. Moreover. Sir, anotlier advantage of this loan was 
 that it left no less a sum than £2,100,000 stg., Imperial guarantee, 
 still in reserve, which may prove exceedingly valuable to this country, 
 inasmuch as it is a security which I can always succeed in floating, no 
 matter what difficulties or embarrassments may attend the negotiation 
 
m\ 
 
 22 
 
 of ordinary securities in tiio English markets or elsewhere. However, 
 my main object is to correct two false impressions which I found i)re- 
 vailing on this side of the Atlantic. In the first place I desire to correct 
 the absurd idea that it is possible, under any circumstances, to obtain 
 as much for a large sum at wholesale as at retail prices ; and I desire to 
 call attention to the falsification or misconception of the quotations 
 which actually exist in the London market. Let hon. gentlemen take 
 any recognized authority they will— whether the Economist or the 
 Investors' Manual or the official markings of the Stock Exchange, and 
 they will find that with the possible exception of a few stray transac- 
 tions, the whole current of the quotations of our loans are precisely as 
 I have descibed them. Now, Sir, any attacks made upon me can do me 
 little harm, and I am perfectly able to defend myself here or 
 elsewhere ; and any attacks which may be made on the personal 
 honour and integrity of the agents of Canada will do them very 
 little harm. But I cannot but feel that they may do this country 
 very considerable harm ; and it is on that account that I have deemed it 
 my duty to indulge in this somewhat long and tedious explanation, in 
 order that every lion, gentleman may satisfy himself that the advice 
 given by our agents was fair and sound, and based on the true condition 
 of the market. And I repeat that before this debate closes, I hope that 
 the right hon. member for Kingston — who, as the first Minister of the 
 previous Government, must have been intimately acquainted with the 
 whole of the transactions between Canada and these two great houses 
 for a considerable time — •will take occasion to disown the attacks which 
 have been made upon the integrity of those gentlemen. If he does not, 
 I am afraid even his silence may be construed into an endorsement of 
 this most unfortunate attack on men who, both m former times and now, 
 have done and are doing all in their power to maintain the good name 
 and the credit of Canada. 
 
 Perhaps before finally disposing of this question, I may as well em- 
 brace this opportunity of explaining to the House the application which 
 has been made of the very large sums of money which have, at various 
 times, been borrowed by this Government. We have borrowed in 
 all — on three separate occasions — the nominal sum of ^69,000,000 sterling, 
 realizing an actual net result of $41,000,000 or $42,000,000. I find, 
 on examining the public accounts, and those of my Department not 
 yet produced, that it is accounted for as follows : — From the 1st July, 
 1874, to the 1st January, 1877, we have expended in all on the 
 
 '! 'i 
 
 .Jl 
 
23 
 
 However, 
 
 ound pre- 
 
 to correct 
 
 to obtain 
 
 I desire to 
 
 quotations 
 
 3men take 
 
 ist or the 
 
 lange, and 
 
 ly transac- 
 
 recisely as 
 
 can do me 
 
 f liere or 
 
 } personal 
 
 .hem very 
 
 is country 
 
 deemed it 
 
 ination, in 
 
 the advice 
 
 ) condition 
 
 '. hope that 
 
 later of the 
 
 i with the 
 
 eat houses 
 
 «ks which 
 
 does not, 
 
 sement of 
 
 and now, 
 
 ?ood name 
 
 s well em- 
 ion which 
 at various 
 rrowed in 
 lO sterling, 
 , I find, 
 ment not 
 1st July, 
 ill on the 
 
 
 
 Intercolonial Railway tlie sum of 14,173,000. We have expended 
 on capital account for the Nova Scotian and New Brunswick Railways, 
 a further sum of $922,000. For the completion of the Prince 
 Edwa Island Railway we have expended some $1,()18,000. On the 
 Pacific Railway survey we have expended $1,652,000 ; and on the worics 
 of construction therewith connected we have expended $4,356,000, 
 making a gross expenditure on what I may call railway account of about 
 $12,121,000. With respect to other pubhc works, chargeable to capital, 
 we have expended on the Lachine Canal, $1,457,000 ; Welland Canal 
 $4,296,000 ; and on other canals, about $1,238, 000. On the comple- 
 tion ( !' these buildings (the Parliament Buildings), $629,000 ; and on 
 what are known as improvements of the RivMr St. Lawrence, conducted 
 under the Montreal Commission, $564,000, — making the total for other 
 purposes $8,184,000; or a total expended in tliese two years and 
 a half, $20,305,000 on capital account. We have, besides, now in hand 
 a sufficient sum of money to expend between $6,000,000 or $7,000,000 
 on the various works mentioned m our estimates. And I have also made 
 provision for the redemption of something like a couple of millions of 
 dollars which fall due within the next nine or ten months. We have, 
 moreover, paid off debts or made advances to the various Provinces, 
 amountmg to between $16,000,000 and $17,000,000, with this satis- 
 factory result, that, whereas we have increased the charge for interest by 
 about $1,750,000 on the one hand, we have reduced it on the otW by 
 about $930,000. In other words, the $27,000,000 (composed of the 
 sums now in hand, which we are about to spend, together with the 
 expenditm'es which I have just enumerated), will cost this country very 
 nearly three per cent, per annum, which is not a very bad financial opera- 
 tion, — always admitting the necessity of constructing these works at all. 
 Now, it is perfectly well known that I myself have never approved of 
 the construction of all these works at one time ; and although I do not wish 
 at this present moment to enter on anything Uke a political discussion, 
 I must observe that I beheve there is not a single one of the works to 
 which I have alluded, for which, or for the inception of which, the 
 present Government can in any way be held responsible, with the 
 exception of a certain part of the expenditure for the construction of the 
 Pacific Railway. 
 
 And now, Mr. Speaker, having shown to the best of my 
 abilities the results of the general financial policy of the Govern- 
 ment, and having given such explanations as I think the House can 
 
\ 
 
 I 
 
 i ■ ■ 
 
 : 1 
 
 i 
 
 1 
 
 ! 
 
 i 
 
 i 
 
 Ui 
 
 « 
 
 fairly demand at my liaudn, of the reasons which induced me to select 
 lie particular mode and price of issue of the loan recently effected, I 
 ought perhai)s to add that, for obvious reasons, I have not hitherto stated 
 o the House certain circumstances which came to my knowledge as to 
 the difficulties with which we met in establishing our four per cents in 
 the English markets. I would now repeat my assurance that these 
 difficulties were neither few nor slight, and that we required, not months, 
 but years of patient negotiation to overcome some of the most formidable 
 of them. , , • . . ( 
 
 The only other point on which much further explanation is 
 needed, is with reference to the future position we are likely to occupy 
 as regards both our ordmary annual expenditure and our capital 
 outlay on those other great works which we are obliged to undertake or 
 proceed with. It is extremely necessary in estimating the present 
 position of this country, and in judging correctly of the policy which the 
 Government arc about to advise the House to pursue, that we should 
 bear accurately in mind the liabilities now existing, (or which will exist 
 when the funds at present in hand are expended,) as compared with 
 th 36 which we found impending at the time we assumed office. In 1874, 
 counting from the 1st July of that year, I find that our liabilities up 
 to 1880,* were computed by me pretty nearly as follows : — I expected 
 to bo obliged to spend on the completion of the Intercolonial Rail- 
 way, a sum varying from $6,000,000 to $7,000,000, which I may say,, 
 
 is almost exactly the amount that has been or will be spent for this 
 purpose, if the estimates for 1877-78 are fully expended. I also expected 
 
 that the task of completely repairing the Nova Scotia and New Brunswick 
 
 Railways, as contra-distinguished from the original Intercolonial Railroad, 
 
 would require a total of about $2,000,000, which I proposed to expend 
 
 and have expended, partly from capital and partly from income. 
 
 ' Intercolonial Railway >7 ,000,000 
 
 Nova Scotia and New Brunswick Railways 2.000,000 
 
 Prince Edward Island Railway 1,000,000 
 
 do do LaiidOrant 800,000 
 
 Minor Public Works 4.000,000 
 
 Welland Canal 10,000,000 
 
 Ijichino Canal 7,000,000 
 
 Ottawa Canals 2,000.000 
 
 St. Lawrence Inrprovements 1,500,000 
 
 Paciflc Raflway 10,000,000 
 
 Advances to Provinces 1,000,000 
 
 Maturinjf DebU .' 35,000,000 
 
 $81,300,000 
 St. Lawrence Canals, say 9,000,000 
 
 «)0,300,000 
 
me to select 
 J effected, I 
 therto stated 
 wledge as to 
 per cents iu 
 ) that these 
 not months, 
 it formidable 
 
 planation is 
 ly to occupy 
 our capital 
 indertake or 
 the present 
 y which the 
 ; we should 
 h will exist 
 ipared with 
 3e. In 1874, 
 labilities up 
 hi expected 
 onial Bail- 
 may say,, 
 
 ent for this 
 so expected 
 Brunswick 
 al Railroad, 
 I to expend 
 u income. 
 
 000 
 000 
 000 
 000 
 
 ooo 
 ooo 
 ooo 
 ooo 
 
 KK) 
 MX) 
 
 wo 
 
 MX) 
 
 )00 
 KK) 
 
 )00 
 
 
 26 
 
 For the Prince Edward Island Railway, I estimated $1,000,000, which 
 has been slightly, though not much exceeded, and their land grant would, 
 I knew, require $800,000, if they chose to apply for it. I estimated the 
 expenditure for a great variety of minor public works then m hand, 
 including the completion of the Ottawa Buildings, at something like 
 $4,000,000 — and I fear that this expenditure has rather over-run 
 than imder-run my estimate. I estimated that the cost of completmg 
 the Welland Canal, as from that date, would involve the expen- 
 diture of about $10,000,000, and the Lachine Canal, of $6,000,000 or 
 $7,000,000. For the Ottawa Canals, even without prosecuting them to 
 their full extent, as was at one time contemplated, I knew, fully 
 .$2,000,000 would be required, and for the St. Lawrence improvements 
 and similar objects, I set down the sum of $1,500,000. 
 For the Pacific Railway I was obliged to make merely approxi- 
 mate estimates, and these I placed at something like $10,000,000. 
 The advances to the Provinces on old engagements represented about 
 $1,000,000. I knew that we had a mass of debts maturing to the 
 amount of no less than $35,000,000, and I expected that the St. Law- 
 rence Canals would consume a further amount of from $6,000,00 to 
 $9,000,000. In other words, I knew that between 1874 and 1880 the 
 country would be called upon to contract loans either for the pur- 
 pose of redeeming outstanding debt, or for carrying on the public 
 works then actually commenced, which would amount absolutely to 
 $81,800,000 ; or if you include the last named items, to no less a sum than 
 $90,000,000. I knew also that the expenditure which might be 
 incurred in the North-West Territory, for the purpose of properly orga- 
 nizmg and managing that great country — although then unknown — 
 would certainly be very large ; and that the mere expenditure for some 
 years to come in running the Intercolonial and other railways would 
 likewise consume a very considerable portion of the public revenue. 
 Now, comparing the estimate as made in 1874 with the estimate I have 
 before me of the probable expenditure from the year 1878 to 1880, I am 
 able to congratulate the House and country on the enormous reduction 
 which is being made in this great mass of liabilities. I have every rea- 
 son to believe that the total capital expenditure on the Intercolonial 
 Railway proper will bo entirely closed by that date, (1878), though 
 possibly a small balance may remain to be provided in the case of the 
 Nova Scotia and New Brunswick Railways. The Prince Edward Island 
 Railway, as well as the Prince Edward Island grant, has, as the House 
 
26 
 
 I I 
 
 : rni i; 
 
 knows, been finally closed. Expenditure on minor public works, including 
 the Ottawa buildings, will, I hope, be also closed before that time; and, as 
 to the Welland Canal, the estimates which have been brought down, 
 togetlier with a small supplementary estimate, will come so near 
 defraying the cost of the final completion of that great work, that I am 
 informed the sum of $2,250,000, at the outside, will be all that will remain 
 to be expended for that purpose, while the sum of $2,500,000 will, it is 
 expected, suffice for everything really required in the case of the Lachine 
 Canal. The outlay on Ottawa Canals, and the St. Lawrence Improvement 
 Fund, will likewise by that date be closed, and although I am 
 imable to fix any absolute limit to the expenditure on the Pacific 
 Eailway, yet, bearing in mind the facts stated as to the large sum 
 already expended, I think it a fair estimate to say, that $4,000,000 
 will represent the probable outlay from 1878 to 1880. Now, even allowing 
 $2,000,000 or $8,000,000 for general miscellaneous piirposes, I think 
 that this result will follow : — That, as against absolute engagements in 
 1874, of $46,300,000, we can say that, after 1878, we have provided for all 
 save about $11,000,000, against which I hold intact and unbroken, 
 £2,100,000 sterling of Imperial guarantee ; and, as against the 
 mass of debt of $35,600,000. we only have thirteen millions of 
 dollars remaining to refund, after deducting the sums for which I have 
 made provision. With respect to the St. Lawrence Canals, I am 
 of opinion, as is also my lion, friend beside me, after full consideration, 
 that the expenditure on those works can fairly and reasonably be delayed 
 for a chort time without the least prejudice to the public interests. 
 
 The general result of all this is, therefore, that whereas when this 
 Government came into office, it was confronted with total liabilities 
 amounting to fully $90,000,000 (according to the programme laid down 
 by the hon. gentlemen opposite), without taking into account the enormous 
 obligations incurred if the Pacific Railway contract was to be carried out in 
 its entirety, we have now a total amount of liabilities to be provided for 
 rather under than over $24,000,000, an amount which, if we only 
 succeed in floating another small loan on anything like as advantageous 
 terms as the last, is not likely to give us any considerable trouble, 
 I might properly add, — because this is a very material point in estimating 
 our present position — that we have every reason to beUeve that the estimate 
 for the cost of governing the North- West has now attained its maximum, 
 and that we will not be obliged to come down to the House, and demand 
 
27 
 
 'ks, including 
 Ame; and, as 
 ought down, 
 >me so near 
 'k, that I am 
 it will remain 
 300 will, it is 
 ' the Lachine 
 [mprovement 
 ough I am 
 X the Pacific 
 e large sum 
 b $4,000,000 
 3ven allowing 
 Dses, I think 
 jagements in 
 ovided for all 
 d unbroken, 
 against the 
 
 millions of 
 which I have 
 mals, I am 
 msideration, 
 y be delayed 
 
 ic interests. 
 
 is when this 
 
 al liabilities 
 
 ,e laid down 
 
 le enormous 
 
 arried out in 
 
 provided for 
 
 if we only 
 
 dvantageous 
 
 ible trouble, 
 
 1 estimating 
 
 the estimate 
 
 3 maximum, 
 
 md demand 
 
 any large addition for this service, unless some entirely unforeseen accident 
 shall occur. So, in the case of the Intercolonial Railway, it will be mani- 
 fest, I think, to every lion, gentleman that there is reasonable ground for 
 believing that that expenditure has attained its maximum, and that the 
 receipts may be expected to increase from time to time, which amounts 
 substantially, of course, to the same thing, so far as reducing the deficit 
 for that service is concerned. , 
 
 Nor, Mr. Speaker, is this all. It will be observed, as I have said, 
 that we have demanded a total vote of about $28,170,000, for 1877-78, 
 although, as I have explained, at least $100,000 is merely a cross entry. 
 The House may very fairly say, suppose that you do expend, as on your 
 Own showing you expect to expend, this additional $11,000,000, will you 
 not be compelled to incur fresh outlay in providing for the interest 
 thereon ? Sir, for that, also, I think I shall be able to satisfy the House, 
 sufficient provision has been made. If, as I said, I succeed in effecting 
 another loan on the same terms as the last — of which there is a reason- 
 able probability, — the reduction in the rate of interest on thirteen miUions, 
 coupled with the charge on certain sums now about to be discharged, 
 will give a total reduction on that item amounting to no less than $250,- 
 000. Then, as I have said, there is every reason to believe, tliat the 
 losses incurred in runningthe Intercolonial Railway, (which, Imay observe, 
 now includes the whole system of the Nova Scotia and New Brunswick 
 Railroads), will be diminished in one way or another by a sum of at least 
 $260,000. The House will bear in miild that in making this state- 
 ment I am not depending on increased receipts. I am merely call- 
 ing attention to the fact that the sum of about $250,000 is now charged 
 as extraordinary expenditure, for changing the guage and replacing the 
 iron by steel rails, — an expenditure which, in the nature of the case, 
 must very soon cease altogether, nor will it require to be renewed for a 
 great many years to come. . . , t -•• 
 
 Hon. Mr. TUPPER — What do you estimate the cost of working 
 the railways above receipts ? 
 
 Hon. Mr. CARTWRIGHT— The present dead loss to us is, as 
 nearly as I can recollect, about $550,000, including the cost of running 
 the Prince Edward Island Railway which will amount to above $100,000. 
 
 Hon. Mr. TUPPER— You expect to reduce that by $260,000. 
 
in I 
 
 Ijijiini !■ 
 j I I 
 
 B t 
 
 !l I 
 
 28 
 
 Hon. Mr. CARTWRIGHT— By about that, owiiij,' to the fact that a 
 large i^ortion of the extra charge is caused hy replacing iron by steel 
 rails. My hon. friend beside me (Mr. Mackenzie) maintains that the 
 estimated life of the steel rail very greatly exceeds that of the iron, — the 
 former of which he places at from fifteen to twenty years as against six 
 or eight in the case of the latter. That, of course, is a matter on which 
 I am not in a position to give much information to the House. But the 
 point to which I wish to call attention, is this that we have, in these two 
 items alone, reasonably well ascertained means of meeting the increased 
 interest for the increased expenditure on capital account, to which I 
 have alluded, without further charge to the people, while, if the expecta- 
 tions entertained (no less by hon. gentlemen opposite than by myself,) 
 as to the increased commerce which may fairly bo expected to ffow 
 through the Welland Canal when opened on an enlarged scale, are 
 even approximately correct, I am warranted in expecting that some 
 addition may come to the public exchequer kom that source. The 
 lowest estimate at which that is placed is $250,000 ; and looking at the 
 fact that the canal pays a considerable net revenue even now, when it is 
 able to admit only vessels not exceedmg 400 or 500 tons, there is really 
 fair ground for believing that a considerable augmentation of the public 
 revenue may be looked for from that som-ce. But that being an 
 uncertainty and a matter yet remaining to be proved, I have not felt it 
 wise on the present occasion to do more than call the attention of the 
 iJouse to it as a probable source of increased revenue ; for which reason, 
 like .vise, I do not calculate on the additional revenue we may expect to 
 derive from the increased receipts of the Intercolonial Railway. The 
 House will therefore see that there are certain very important points 
 which may be regarded as reasonably fixed in considering our present 
 position. They will see that our total expenditure has at last attained a 
 position which it is not likely to exceed for some time to come, always ex- 
 cepting such casual cross-entries as are caused by accumulating interest 
 on Sinking Fund, which amounts to .$130,000, if not more, since 1874. 
 With such exceptions, we are in a position to assure the House that an 
 expenditure of about twenty-three millions and a few hundred thousands, 
 more or less, either way, ought to meet the working expenses of 
 Government. We have also so greatly reduced our absolute engage- 
 ments, and so greatly reduced the amount of debt we are positively 
 obliged to pay off, that I do not anticipate anything like the same 
 difficulty in dealing witli that question, which I dreaded in the past. 
 
29 
 
 the fact that a 
 
 iron by steel 
 
 taius that the 
 
 the iron, — the 
 
 as against six 
 
 atter on which 
 
 )Uso. But the 
 
 0, in these two 
 
 f the increased 
 
 it, to which I 
 
 if the expecta- 
 
 an by myseh',) 
 
 )ectecl to ffow 
 
 ged scale, are 
 
 ing that some 
 
 source. The 
 
 looking at the 
 
 low, when it is 
 
 there is really 
 
 I of the public 
 
 hat being an 
 
 ave not felt it 
 
 tention of the 
 
 which reason, 
 
 lay expect to 
 
 lailway. The 
 
 portant points 
 
 ig our present. 
 
 ast attained a 
 
 He, always ex- 
 
 lat^ng interest 
 
 e, since 1874. 
 
 'ouse that an 
 
 ed thousands, 
 
 expenses of 
 
 )lute engage - 
 
 are positively 
 
 ke the same 
 
 in the past. 
 
 1 think we have guaged with tolerable accuracy the extent of the 
 depression up to the present time ; although I must admit it is, 
 unfortunately, yet a matter of some uncertainty as to whether the future 
 depression may not even exceed the point which has now been attained. 
 It is a question of some considerable interest whether the taxes which 
 Avere imposed in 1874, did or did not diminish the importations to such an 
 extent as materially to reduce the benefit accruing therefrom. I may say 
 that after giving the subject much consideration, I aiu inclined to think 
 they did not; and I base that opinion on several grounds. In the first place, 
 as the House knows, the imposition of the additional two and a half j)er 
 cent, ad valorem was neutralized, or nearly so, by the very great fall in 
 the average value of the articles on which it was imposed ; or, to put the 
 matter in another shape, had'the duty been specific, instead of ad valorem, 
 the country without any no minal increase , would have obtained a very much 
 larger revenue than it now does. The fact was, that the diminution in 
 values has cost us much more revenue in proportion than we got from 
 the increase of two and a half per cent. duty. Moreover, I have 
 caused special inquu-y on this matter to be made by gentlemen of 
 known authority, and, although they differ on minor points, all 
 agree in believing that no serious diminution in importations has taken 
 place from the imposition of that additional tax. I might add that we 
 had pretty strong evidence on that point in the demand for the imposi- 
 tion for further duties for purposes of protection, wliicli has been 
 advanced by my hon. friend from Montreal West and others, on the very 
 ground that no diminution of imports had taken place, and to a certain 
 extent in the testimony which was given by the lion, member for 
 Cumberland on the occasion of the debate m 1875, in which the hon. 
 gentleman admitted that such were the resources of the country that no 
 hardship whatever had resulted from the imposition of the additional 
 duty. Moreover, on examinuig the free list and the articles on which 
 no alteration in duties was made, it will be seen thit a corresponding 
 reduction took place in importations — and that even to a greater extent 
 in many cases. For these reasons I am strongly inclined to believe that 
 no diminution in the total volume of our imports resulted from the steps 
 taken by the Government in 1874, for the purpose of providing additional 
 revenue. 
 
 It being six o'clock, the Speaker left the chair. 
 
80 
 AFTER RECESS, 
 
 Hon. Mr. CARTWRIGHT resumed. Ho said : Mr. Speaker, before 
 tbe recess, I had taken the opportunity of explaining to the House 
 my views on the general position of the country at tlu present moment. 
 I had stated to them certain reasons, which appeared to me valid, for 
 supposing that we had probably seen the extreme point of depression, 
 or, at least very nearly the extreme point that is likely to be reached, and 
 that we had a fair ground for hoping that we would not liave any 
 serious reduction on the revenue received last year, (1875-76.) I had 
 also stated that, but for the unfortunate deficiency in the harvest which 
 occurred last year, I had no doubt whatever that the expectations of the 
 Government would have been fully realized, and that it would have been 
 easy for us to have paid oiir way without having recourse to the disa- 
 greeable necessity of imposing any further burc'ins upon the people. 
 Unhappily, as the House knows, the last year's harvest, so far from being 
 a fair average, was decidedly deficient; and that calamity, .coming on 
 the top of an unprecedented depression in trade.did undoubtedly upset 
 all reasonable calculations, and will, in all likelihood, inflict upon us 
 a deficit, although a small one, in the operations of the current year. I 
 think, on the whole, that it is expedient, taking all things into considera- 
 tion, that we should take steps to suj)ply that deficiency. The House 
 knows that no matter how it may be explained, no matter under what 
 circumstances it may have arisen, a repetition of these deficits in the 
 revenue would seriously affect our credit ; and for many reasons, it is 
 obviously desirable that the credit of Canada should be maintained at as 
 high a point as possible. Now, there are two things which it especially 
 becomes us to consider at a time like this. I have always held that the 
 Government of this country were not justified in imposing any duties 
 whatever that the necessities of the revenue did not fairly demand. That 
 principle I had occasion to expound at great length last year, and I shall 
 do no more than briefly allude to it on the present occasion. It is obvious 
 also that at a time of depression it is desirable not in any way to increase 
 the already serious burdens of the people of this country ; and, in the 
 proposals I am about to submit to the House, we have endeavoured as far 
 as possible to keep in view the necessity of meeting a deficiency in the 
 revenue, and also of so readjusting the tariff that the net result shall 
 either not inflict any loss at all, or at all events as small a loss as pos- 
 sible on the pockets of the general public. Now, Mr. Speaker, in con- 
 
81 
 
 formity witli my pledge to the House last year, it becomes my duty to 
 consider in the first instance, the proposal of the hon. member for Stan- 
 stead, affecting the present duties on petroleum or coal oil. As to this, 
 I may say, in the first instance, that it was a duty which I never liked 
 and would never have imposed myself, and which always appeared to me 
 decidedly objectionable, though I did not consider that the general cir- 
 cumstances last year warranted me in opening up the tariff, and, perhaps, 
 provoking a series of long and awkward discussions for tho sake of a single 
 article. Moreover I felt then as I feel now, that there was something to bo 
 said on tlie side of the refiners also. I felt that their complaints were not 
 wholly unreasonable, and in especial that their complaints as to the vexa- 
 tious restrictions which necessarily attend the collection of any excise 
 duty, deserved the attention of Government. Sir, it is very well-known 
 to this House, that it is impossible to collect an excise duty without 
 so interfering with the manufacture, as, in many cases, to prevent 
 valuable improvements and experiments from being carried out; and in 
 fact it is laid down almost as a fundamental rule that every excise duty is 
 proportionately more oppressive to tho manufacturer than a correspond- 
 ing customs' duty of equal amount. As respects the amount of duty invol- 
 ved, I find, as nearly as I can calculate, that the total consumption of coal 
 oil throughout Canada may be estimated at about 8,000,000 of wine 
 . gallons, that being the measure on which the duty is imposed. Of this 
 total of 8,000,000 about 5,500,000 are manufactured in Canada, about 
 800,000 are imported, paying duty, and according to the calculations of 
 my hon. friend from Stanstead, (which do not differ very widely from 
 tliose of tho officers of the Customs Department,) probably double that 
 quantity has been imported into Canada without paying duty — 
 
 •! 
 
 An hon. member — Smuggled. 
 
 Hon. Mr. CARTWRIGHT — As my hon. friend remarks, — speaking 
 briefly — have been smuggled., I agree to a great extent with the hon. mem- 
 ber for Stanstead, that the loss to the country by' this duty is decidedly 
 greater than the amount of the duty itself. It is known that in the case 
 of duties bearing so high a proportion to the value of the article as the 
 present duty on coal oil, you must add a considerable percentage for the 
 additional loss inflicted on the consumer before it ultimately reaches its 
 destination; and, therefore, assuming a consumption of 8,000,000 gals., I 
 am very much inclined to say that the position taken by tlie hon. member 
 
82 
 
 for Staustoiul that a loss varying from $1,100,000 to $1,200,000 was in- 
 flicted on the public, is not very much out of tho/way. My own opinion 
 is, that it is not quite so great, but that, nevertheless, a very serious 
 loss, is inflicted on the public. The Government, therefore, have care- 
 fully considered this whole question with a desire to reduce the burdens 
 of the people as much as they could, and yet not utterly to wipe out of 
 existence a Canadian industry which had grown up under the protection 
 of the law as enacted by hon. gentlemen opposite. The conclusion we 
 liave come to is this : — We propose to abolish the excise duty altogether, 
 and to reduce the duty on irapoi-ted petroleum from 15 cents per gallon, 
 as itiis at present, to 6 cents ; and by this operation, I belie^e the people 
 of Canada will be the gainers by the full 9 cents and more on every 
 gallon of the 8,000,000 at present consumed. If we adojit my hon. 
 friend's calculations, the saving to the people would amount to $1,200,000. 
 In my opinion, the people of Canada would be the gainers by at least 
 $750,000, and as far as I can see, the loss to the revenue — because I 
 believe the entu'e amount now smuggled would be brought in paying 
 duty — would be only a little in excess of $200,000. 
 
 It is necessary for us, under existing cu'cumstances, to 
 take back an equivalent for that amount ; and we desire to do 
 that with the minimum of disturbance to existing interests, and 
 in such a way that, if better times come, it may be removed as 
 easily as possible. So, therefore, as we are giving the country the 
 benefit of a reduction of duty, varying from $750,000 to $1,200,000, 
 according to one or other of tlie calculations which I have submitted, we 
 think we may fairly ask the country to recoup us by paying an additional 
 ^ duty of one penny sterling, or two cents per lb on tea imported into 
 the country. That would make us tolerably square, and restore the 
 desired equilibrium as far as it goes. But there is a certain deficit which 
 it is highly desirable we should make good ; so we have to propound, for 
 the acceptance of this House, certain other changes, which, I venture to 
 .say, will disturb the current of trade as little as any alterations which 
 would bring the required amount of revenue. The main change is one 
 affecting the article of malt and beer brewed therefrom, I impose that tax 
 with some reluctance, and can quite understand the objection of all 
 English speaking men to pay a fiurther tax on beer ; but, on the whole, 
 we believe that our proposal will be in the interest of the country. We 
 propose to put a tax of one cent per pound on malt, and of three cents 
 
88 
 
 (or a trifle more,) per gallon on beer, if brewed from other articles thnn 
 malt. That constitutes the main change to which we shall ask the 
 House to consent; but there are certain other alterations, suggested 
 by my honJ friend, the Minister of Customs, which it is desirable to 
 make ; and these are mainly in the direction of a readjustment of the 
 revenue, and, with one exception, cannot, I think, be said to involve any 
 serious additional charge on the consumer. It has been found, in 
 collecting the revenue, that, under the tariff as at present worded, 
 very considerable discrepancies exist in the duties collected on various 
 articles. One man is found paying one duty at one port, while another 
 pays a different duty at another port, and so, great hardship is suffered 
 by the honest importer; and in various ways there is a con- 
 siderable loss to the revenue. Some of these anomalies we propose to 
 remove, mid in the following way: — Wo iind, for example, in the 
 article of cotton and linen thread, that the language employed in the 
 Customs Act renders it, in practice, nearly impossible for Collectors to 
 discriminate between those particular kinds subject to 10 per cent, and 
 those subject to 17i per cent, (and it is very doubtful whether it will be 
 possible to arrange the Act so as to avoid these discrepancies), from 
 which cause the revenue is suffering considei'able loss. For the purpose 
 of avoiding this injustice and this loss to the revenue, we propose to 
 place all these in the same list of unenumerated articles — that is, to 
 remove them from the 10 to the 17i list ; and I cannot understand very 
 clearly why the distinction was originally made. Then there is a 
 (luestiof which may touch some of my hon. friends more nearly. The 
 Customs authorities have been subjected to considerable diflBculty in 
 dealing with the duty on cigarettes, and they think that, as the 
 law stands, tliey should pay duty as cigars ; but wo intend 
 to remove all doubt by expressly includmg them under the head of cigars. 
 Wo propose — as many objections were raised at the time the tariff' 
 of 1874 was introduced, against the apparent injustice of taxing 
 a low grade of cigars at tlie same rate as a high grade, — to sub- 
 ject all cigars to a specific duty of 50 cents per pound, and an ad 
 valorem duty of twenty per cent., which will allow the low grades to be 
 imported at precisely the same duty as at present, and, at the same time, 
 allow us to secure a little more revenue. On the article of perfume, which is 
 now paying several rates of duty, we propose to place a uniform rate of 25 
 per cent, ml vtdorein ; and as this is vei-y clearly an article of luxury, I 
 do not suppose hon. gentlemen will raise any very serious ol)jection to 
 5 
 
 MH 
 
 i 
 
84 
 
 this alteration. We propose also to remove the article known as tubing 
 from the free list. The presence of this item on that list has caused 
 considerable inconvenience, and considerable loss to the revenue. It is, 
 in practice, almost impossible ^o discriminate ' etween the various 
 classes of tubing, and, therefore, we propose to ma.ve the duty on the 
 whoi^. of these articles 17^ per cent. I am also inforiaed that some con- 
 siderable difficulty, in respect to the duty to be levied on certain parts of 
 locomotives and tubular boilers, has occurred from the same cause. I 
 never could understand why this was placed on the free list, and I do not 
 know any reason why it should not pay 17i per cent., as well as other 
 unenumerated articles and other kinds of tubing. We have found, also, 
 that very considerable fraud has existed in connection with the importa- 
 tions of wine, an(^ that all sorts of charges, such as bottling, cartages, 
 labelling, packing and things of that kind are placed ui invoices, in such 
 a way as tp reduce the wine below the standard to which it properly 
 belongs. We therefore propose to amend the tariff in that respect, so as 
 to prevent these frauds, occurring in the future. We puipose to intro- 
 duce an alteration in the law regarding packages, under which (not to 
 delay the House by reading the clause which is somewhat long), in certain 
 cases therein provided, packages, when they contain goods subject to 
 specific duty, shall be required to pay 17^ per cent., and when they 
 contain goods subject to ad valorem duty, shall be included in the fair 
 market value of such articles. These matters, however, may be more 
 fairly and advantageously discussed in committee when these resolutions 
 are in the hands of hon. gentlemen. I should say that on imported malt, 
 2i cents per lb is to be placed. The alteration in respect to packages 
 has reference to the frauds that are at present committed in connection 
 therewith. Perhaps I had better read the resolution. 
 
 Mr. WOOD — How arc you going to manage in the case of free goods ? 
 Will free goods make the packages free ? 
 
 Hon. Mr. CARTWRIGHT— I am inclined to thin)^ that my hon. 
 friend is correct, — they do so. It has also been found oxpodiont to alter 
 the duty on ale, beer and p ortor imported from other countries. This, 
 we propose to make specific, in i>laco of the present mixed specific 
 and ad valorem duty, and we will put the duty at 18 cents per imperial 
 gallon in the case of ales and porters imported in bottle, and 12 cents 
 per imperial gallon in the case of ale, beer and porter, imported in wood. 
 
85 
 
 There Was one article that I omitted in the free list, cotton thread in 
 haaks, coloured and unfinished, No. 6 ply, which we propose to remove 
 from the free list to the 10 per cent. list. The duty on ales and porters 
 is in fact a redistrihution, a slight increase having heen made in 
 consequence of the duty we propose to impose on malt and on beer when 
 manufactured in the country itself. > 
 
 Now, to put the matter briefly, the net result is this, that 
 while the revenue wiU certainly gain a considerable sum — probably 
 between $400,000 and $500,000, (a sum which I think will be 
 sufficient to make good any deficiency that is likely to arise next year, 
 even should our imports remain at their present low figure) we 
 will, at the same time, put an end to tlio mischievous practice of 
 smuggling, which is beginning to prevail, and although we do take 
 $400,000 or $500,000 out of the pockets of the peodle in one way, 
 under the operation of the increased tariff, which I propose to impose, 
 they will nevertheless gain $800,000 by the remission of duties on 
 petroleum. So that the net result to the people of Canada will not be 
 an addition, but a direct and considerable diminution of the burdens 
 under which they are at present labouring. 
 
 As regards our expectation of ,future revenue from these various 
 sources, — we estimate the Customs duty likely to be received during the 
 year of 1877-78 at something like $18,600,000 ; our Excise duties, which 
 of course are diminished by the loss of the duty on petroleum, at about 
 $5,800,000; and om* other receipts substantially as in the year before — 
 that is to say: Stamps, about $250,000; Post Office, $1,100,000; Public 
 Works, $1,750,000; and Miscellaneous, from various sources, about 
 $1,400,000,— makmg a total estimated income of $28,400,000 for 
 the year 1877-78. It will be seen, therefore, Mr. Speaker, that the 
 Government has adliered strictly and rigidly to the policy they have 
 heretofore laid down ; that they are not disposed to add to the burdens 
 of the people in any way or shape, unless the necessities of the revenue 
 really require it at tlieir hands. And, when we consider the depression 
 which prevails elsewhere, — which prevails almost all over the civilized 
 world, and notably in the neighbouring States — I think I have reason* 
 able ground for saying to the House that after all, severe as the depression 
 has been, much as we have suffered, we certainly hava not suffered 
 more, — it is a question whether we have buffered as much as the 
 neighbouring people. 
 
86 
 
 Sir, as the United States has heen held up to us as a model 
 and example of fiscal policy, I would desire to call the attention 
 of the House to the practical results of the policy which has 
 heen in force in that country for a considerable- number of years past. 
 In the first place, as there has been an extraordinary and unpre- 
 cedented diminution in the imports of this country during the last few 
 yeare, it may be as well to see how the United States have fared during 
 ft similar period. In 1878 the gross imports into the United States, as 
 given in the quarterly report of the Chief of the Bureau of Statistics 
 amounted to $663,000,000, faUing in the succeeding year to $595,000,- 
 000, in 1875 to $653,000,000, and in 1876 to $476,000,000. ^n other 
 words, the imports into the United States have fallen off in three years 
 nearly one-third, — in all about $200,000,000. And I regret to say that that 
 diminution still contumes, for I find that the gross importations 
 into the United States during the three months ending Septem- 
 ber, 1870, only amounted to about $102,000,000, as compared with 
 $127,000,000 in the corresponding three months of 1875. Now, Sir, it 
 will be seen, from that brief statement, that, whatever misfortune may 
 have overtaken this country, we, at any rate, are not one atom worse off 
 than our neighbours on the other side of the line who have enjoyed the 
 benefits of a fiscal policy, which, according to some hon. members, is a 
 panacea for all the commercial evils that can possibly overtake any 
 country. I may add, that if I were disposed to pursue that analysis 
 further, — thai, if we were to deduct from those imports to which I alluded, 
 the importations of such articles as tea, sugar and coffee, and of bullion, 
 and make a corresponding reduction from the imports into our own 
 country, we would find that the reductions in American imports were 
 even more marked in proportion than it is in the statement that I have 
 submitted. And, it may be as well, before I finally pasg from this sub- 
 ject, to call attention to the fact, that even the United States' exports in 
 1875-76 — of which we have also heard a great deal — do not compare at 
 all disadvantageously for us with the exports from Canada durnig 
 the same period. I find that the total exports from the United States 
 during 1876 amounted to $644,000,000, 1'feported in mixed values as their 
 custom is, of which about $525,000,000 in gold were reported as the pro- 
 duce of the United States. Now, out of this $525,000,000, I find that 
 no less than $498,000,000 (representing a gold value of about $440,- 
 000,000) were made up of the following raw materials : breadstuft's, 
 $132,0n0,00O; cotton (raw), $198,000,000; provisions of various 
 
# 
 
 kinds, about $90,000,000; oil and oil cake, $88,000,000; tobacco, 
 something like $28,000,000, " and about $12,000,000 of products of 
 the forest, — while miscellaneous articles such as leather, quicksilver, 
 tallow, coal, live cattle, etc., make up a sum of $40,000,000 more. 
 The net result is that the total exportation of manufactures from 
 the United States, reduced to gold value, is very little more than 
 $53,000,000 or $54,000,000, which, in proportion to our population, is 
 ratlier less than the exportation of manufactures from Canada, which 
 amounted to about $5,320,000 of the same kinds of articles. If there is 
 any advantage at all It has been on the side of Canada, which is export- 
 ing quite as many manufac cures in proportion to population and area as 
 the people of the United States, notwithstanding the fostering protection 
 they have so long enjoyed. And, Sir, if, deducting the article of coin 
 and bullion, you compare our gross exports during that year with the 
 exports of the United States you arrive at this result : — That our 
 gross exports, making the requisite I'eduetions, are about $72,500,000, 
 against theirs of about $575,000,000, gold value, — in other words, the 
 exports of Canada, per capita are fully one-third larger than the total 
 exports of the United States. Indeed, I am not certain that the per 
 centage may not be properly placed very considerably higher. It must be • 
 borne in mind that the reduction of the imports into the United States 
 has taken place on a vastly smaller importation per capita than that into 
 Canada, and that, at this moment, whereas the United States, with all 
 their great advantages, are not exporting much more than $11 or $12 
 per capita, we in Canada are exporting at least $18 ; and whereas they 
 only import $10 or $11 per capita, we in Canada, even in a season of 
 great depression, are importing about $22 per capita. In other words, 
 Mr. Speaker, our general trade is fully twice as great as that of the 
 United States, and not only do we both buy more and sell more than 
 they do in proportion to our population, but we sell and buy on better terms 
 for ourselves, because the much talked of balance of trade in favour of 
 the United States, although it may mean their slow recovery, may, 
 and probably does mean, that they are paying a great deal more for the 
 articles they are importing, thanthey are worth, and may also mean, 
 and probably does mean, — as is freely alleged to be the case in regard to 
 the exportation of certain manufactured articles, — that they are encourag- 
 ing an artificial commerce at the expense of the American tax-payer. 
 Now, comparing the result of our fiscal policy with the result of the 
 American fiscal policy, I say boldly, that so far as these figures show. 
 
38 
 
 and so far as the facts are known to us, they show we huve no cause 
 to dread a comparison. As for their home market, I have said before 
 and I now repeat that tl^e number of persons employed in manufactures 
 in the United States is not greater relatively to population, if indeed as 
 great, than the number so employed in Canada. And not only do they 
 not employ more men, but they do not, at present, at any rate, pay them 
 one whit more. Indeed, I doubt much whether the purchasing power 
 of wages inthe United States is at all as great as that of similar wages 
 in Canada ; while, as to the condition of the general iabour market, 
 it must be a matter of common notoriety to every lion, gentleman in this 
 House, that if there is (as unfortunately there is) depression in Canada, 
 there is still greater depression in the United Statos ; and if there are, 
 unfortunately, men now unemployed in our largo cities, in New York 
 alone, on the other hand, it is reported that something like one-fifth or 
 one-sixth of the entire male adult population are unemployed, and clam- 
 ouring for employment at the popular expense. Now, I have never 
 doubted in my own mind, that a people, so intelligent, so enterprising and 
 so industrious as the inhabitants of the United States, and possessing 
 almost unexampled natural resources of every imaginable descrip- 
 tion, must naturally become a very important manufacturing people. But, 
 I doubt whether, in some important respects, they are taking the right 
 way to secure their speedily acquiring this position. I believe, myself, 
 they would have made greater progress in their whole trade, export and 
 import, whether, as regards manufactured articles or ordinary raw 
 material, if they had adopted a system more closely analagous to the 
 system we now possess. Taking into consideration the extraordinary 
 severity of the strain to which Canada has been subjected, I am inclmed 
 to think we have not unreasonable ground for congratulation, when we 
 remember that we have had to contend with a most extraordinary general 
 depressicm, affecting our best customers as well as ourselves, and exas- 
 perated by an unusually indifferent harvest, at th6 very moment we have 
 had to defray special expenditures on our pubUc works and to provide for a 
 great mass of debts maturing. I think the country may be congratulated 
 that so dangerous a crisis in our affairs has passed without our sustaining 
 any very serious loss. I hold that equilibrium is now being restored. Our 
 credit has been sustained, and more than sustained, and despite our 
 deficit and the difficulties with which we have been loaded, our securities 
 have obtained a better price than ever before, and unless another such 
 misfortune as the last overtake us in the present summer, we will be 
 
39 
 
 able without very much diflficulty to weather the storm. If we are disap- 
 pointed, the Government knows its dutj and is prepared to do it. Canada 
 has yet ample resources untouched to enable it to meet its engagements ; 
 and, although I trust I will not be compelled to again add to the pr.blic 
 burden, still, if the public service demand it, I am sure the people of 
 Canada will not allow their credit to be impaired. And, Mr. Speaker, 
 allow me to say this, that had it been possible for us in 1874 to have 
 foreseen the situation as now developed, could we have foreseen that 
 within two years we would have had to contend simultaneously with a 
 loss on importations amounting to about ^35,000,000 on a total of 
 $127,000,000, with a bad harvest, with four consecutive years of depression 
 in the United States, and that, during such a crisis, I should have been 
 obliged to appear in the London markets on three successive occasions to 
 negotiate loans to the extent of .f 45,000,000, I would have said that it 
 -was utterly impossible we could have escaped one quarter as easily 
 as we have. Doubtless much caution is still needed, — that given, I do not 
 fear the result. I count, as I think I have a right to count, with some confi- 
 dence, on a steady though gradual improvement m a young country like 
 ours. That is almost a condition of our national existence ; and has 
 never disappointed reasonable calculations. My position is that the infla- 
 tion which culminated in 1872-78 and 1873-74, and the reaction which 
 has succeeded it were both excessive ; and that it would be as impolitic to 
 believe that we will long remain in our present condition, as it was 
 impolitic to assume that great inflation as a sound basis for entering 
 into those enormous engagenrents which I, to-night, have endeavoured to 
 depict. If the country is content, as I believe it is, to atone for. past 
 extravagance and folly by the simple recipe of thrift and hard work, tliere 
 *ieed be no ground for apprehension, and the Government will endeavour 
 to set the example of a reasonable and prudent economy. I admit that all 
 these calculationsare based on the average probabilities on which calcula- 
 tions, as to ordinary human affairs, are constiintly based. I don't pre- 
 tend to say, Mr. Speaker, that I can guarantee this country against the 
 consequences of another bad harvest or misfortunes of the like character. 
 We may have a bad harvest, — the depression in the United States 
 may bo prolonged, — or lion, gentlemen opposite might return to power. 
 Misfortunes never coftio singly, and one great misfortune might be 
 followed by a still greater ; but, otherwise, Sir, I belieVe that wo are 
 drawing moderately close to dear water, and if it is not possible, — as 
 undoubtedly it is not possible, — for us to escape from the position in which 
 
40 
 
 we found ourselves, without some loss or peril, the damage we have sus- 
 tained is, all things hcing considered, very much less than might have 
 been expected ; and I hope, with some degree of confidence, that on the 
 next occasion on which I may be called to address this House, I may be 
 able to congratulate it on seeing the deficit which now exists entirely 
 extinguished, and our Treasury once more restored to the state in which 
 for some years back it was happily maintained. Sir, I have the honour 
 to move that you do leave the chair, and that the House resolve itself into 
 Committee of Ways and Means. 
 

 
 41 
 
 
 
 • 
 
 
 
 ^. 
 
 Prutes of Canadian Fours. — From the Economist, 
 
 Accrued 
 
 Interest. 
 
 1 
 
 1 
 
 j Date. 
 
 • 
 
 1 Prices. 
 
 Value Less Accrued 
 Interest. 
 
 i' s. a. 
 
 1 
 
 .. r' ' 
 
 ■ 
 
 £ s. d. 
 
 £ 8. d. 
 
 13 4 
 
 July 1 
 
 " a . . . . : . 
 
 91 
 
 91 
 
 92 
 
 12 
 
 90 6 8 
 8 
 
 91 6 8 
 91 6 8 
 
 
 " 15 
 
 j 
 
 91 
 
 92 
 
 90 8 
 
 91 6 8 
 
 
 " 22 
 
 91 1 
 
 m 
 
 90 16 8 
 
 91 16 8 
 
 10 
 
 " 29 
 
 91 i 
 
 921 
 
 90 10 
 
 91 10 
 
 
 Augt. 5 . . . . 
 
 91J 
 
 92^ 
 
 90 11 9 
 
 91 11 9 
 
 
 " 12.... 
 
 92 
 
 93 
 
 91 1 8 
 
 92 1 8 
 
 
 " 19.... 
 
 92 
 
 93 
 
 91 1 8 
 
 92 1 8 
 
 1 6 
 
 " 26.,.. 
 
 92 
 
 93 
 
 90 13 4 
 
 91 13 4 
 
 \ 
 
 Sept. 2..., 
 
 92 
 
 98 
 
 90 15 8 
 
 91 15 
 
 1 
 
 9.... 
 
 92 
 
 93 
 
 ',90 15 3 
 
 91 15 8 
 
 
 " IG.... 
 
 92 
 
 93 
 
 90 15 8 
 
 91 15 3 
 
 
 " 28.... 
 
 92 
 
 93 
 
 90 15 3 
 
 91 15 3 
 
 1 13 
 
 " 80.... 
 
 92i 
 
 90$ 
 
 90 16 8 
 
 91 16 8 
 
 / 
 
 Octr. 7.... 
 
 92J 
 
 93i 
 
 90 18 4 j 
 
 91 18 4 
 
 
 " 14.... 
 
 93 
 
 94 
 
 91 8 4 
 
 92 8 4 
 
 
 " 21.... 
 
 93 
 
 94 
 
 91 8 4 
 
 92 8 4 
 
 2 
 
 ' " 28.... 
 
 94^ 
 
 95i 
 
 92 10 
 
 98 10 
 
iH 
 
 List of transactions in Canada Four per cents (old issue) taken from 
 Official markings on tlie Stock Exchange, from the Gth November, 
 to 31st December, 1876. 
 
 Date. 
 
 Business Done. 
 
 Accruec 
 Interes! 
 
 ' Date. 
 
 1 
 
 Business 
 Done. 
 
 Accrued 
 Interest. 
 
 Actual 
 A'alue. 
 
 1 
 
 1876 
 
 Loan Issued. 
 
 
 187G 
 
 
 s, 
 
 d. 
 
 t' s. d. 
 
 Nov'r G 
 
 9n—i 
 
 
 Dec. 1 
 
 No business 
 
 G 
 
 8 
 
 I 
 
 . " 7 
 " 8 
 
 92i 91i 
 ' 92|-i 
 
 
 " 2 
 
 " 4 
 
 9U 
 
 No business 
 
 1 
 
 
 90 18 4 
 
 " 9 
 •• 10 
 " 11 
 
 92i— ^ 
 921 92| 
 No business done 
 
 
 " 6 
 " C 
 
 " 7 
 
 i 01 i 
 91f 
 92 
 
 8 
 
 
 
 91 10 10 
 91 6 8 
 91 12 
 
 " 13 
 " 14 
 
 " 15 
 
 do 
 
 on 
 
 
 1 " B 
 " 9 
 " 11 
 
 m ■ 
 
 92f 
 92 
 
 
 
 91 1 
 91 15 
 91 10 
 
 " 16 
 
 91i— ^ : 
 
 
 " 12 
 
 92-1} 
 
 
 
 91 10 
 
 " 17 
 
 9H-l~k 
 
 
 " 13 
 
 9U 
 
 
 
 91 
 
 ■" 18 
 
 91f 
 
 
 " 14 
 
 on 
 
 
 
 91 7 
 
 " 20 
 
 92i 
 
 
 " 15 
 
 92 
 
 10 
 
 
 
 91 10 
 
 " 21 
 
 92i 
 
 
 " 16 
 
 92-1 i 
 
 
 
 91 10 
 
 " 22 
 ." 28 
 
 92^—2. 
 92— li 
 
 
 " 18 
 " 19 
 
 9U 
 92 
 
 
 
 91 2 G 
 91 10 
 
 " 24 
 
 91i-2|S. 
 
 
 " 20 
 
 on 
 
 
 
 91 
 
 " 26 
 
 •« 27 
 " 28 
 
 92-i • 
 92-i 
 9U— g— 2 
 
 
 " 21 
 " 22 
 
 02h-n 
 No business 
 
 12 
 
 
 
 91 10 
 
 92 
 
 • • • • • • * 
 
 " 29 
 
 No business done 
 
 
 " 28 
 
 on 
 
 
 
 91 2 
 
 " 30 
 
 91J— 2 
 
 
 " 27 
 
 on-2 
 
 
 
 91 5 
 
 
 \ 
 
 ' 
 
 " 28 
 " 29 
 
 9U 
 No business 
 
 13 
 
 4 
 
 91 6 
 
 • •• • ■ •> • 
 
 
 '■ 
 
 
 " 80 
 
 do 
 
 
 
 • • • • • ••• 
 
i 
 
 48 
 
 Latest business clone in Canadian 40/" (four per cents.) 
 Iitvcsion' Manual, from January, 1875, to date. 
 
 Months. 
 
 1875. 
 
 January ... 
 February . 
 
 Mai'ch 
 
 April 
 
 May 
 
 June . . . . . 
 
 July 
 
 August .... 
 September . 
 October . . . 
 November. 
 December . 
 
 1876. 
 
 January.... 
 February... 
 
 March 
 
 April 
 
 May 
 
 June 
 
 July 
 
 August . . . 
 September 
 October . . . 
 November . 
 December . 
 
 Latest 
 
 Business 
 
 Done. 
 
 89^ 
 
 90i 
 
 90^ 
 
 90^ 
 
 88 i! ex. d. 
 
 88A 
 
 90J 
 
 9U 
 
 917. 
 
 92^ 
 
 90^ ex. d, 
 
 90i 
 
 011 
 91 
 90i 
 
 92i ^ 
 90g ex. d, 
 
 9U 
 
 92i 
 
 92^ 
 
 92i 
 
 94 
 
 92 ex. d 
 
 92 
 
 Accrued 
 Interest. 
 
 1 
 
 H 
 U 
 2 
 
 From the 
 
 1 
 
 U 
 11 
 2 
 
 1 
 
 u 
 
 If 
 
 2 
 
 1 
 
 n 
 
 n 
 2 
 
 f 
 
 £ s. d. 
 
 88 15 
 
 89 8 4 
 88 14 
 88 17 G 
 
 87 9 
 
 89 7 6 
 
 90 3 4 
 90 4 
 90 2 6 
 
 89 9 
 
 ♦ 
 
 90 5 
 
 89 13 4 
 88 16 8 
 
 90 10 
 
 90 10 
 
 91 6 
 
 91 7 C 
 90 16 8 
 
 92 
 
 91 6 8 
 
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