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Las diagrammes suivants iiluatrent la m^thodo. irrata to pelure. n a □ 32X 1 2 3 4 5 6 I VAT a 2a 9^ jXuu.viWl'^''iO .:hented by C- A SCATHING EXPOSURES OF THE MISMANAGEMENT OF THE PROVINCIAL J^INANCES. MR. JNO. S. HALL excoriates THE TREASURER. PROMISES CONTRASTED WITH PERFORMANCES. GAZKTTE PRINTING COMPANY, MONTREAL. 1890. A SCATHING EXPOSURE OP THE MISMANAeEMENT OF THE PROVINCIAL FINANCES. Mr. JNO. S. HALL Excoriates the Treasurer— Promises Contrasted with Performances. From " The Gazette," Dec. 18, 1890. The following importaut speech was deli- vered in the Quebec Assembly on the 9th inst. by Mr. Jno. S.Hall, jr., member for Montreal West : — Mr. Speaker— I feel that representing one of the divisions of Montreal I should say a few words with reference to the financial position of the province, as revealed by the estimates submitted to the House and the Budget speech delivered by the hon. Trea- surer on Friday last. I might say the House has had a rare treat to-day in listening to the Hon . Mr. Robertson in his criticism of the Treasurer's speech, assuring us that he has lost none of his former vigor and leav- ing it quite evident, from the Treasurer's excited reply, that tha thrusts have been driven home. Mr . Robertson aptly chai-ges the hon. Treasurer with inventing and carry- ing into effect anew double-barrelled breach leading gun in twisting and manipulating his figures. I am not much of a sportsman now, but as the hon. Treasurer delivered one speech on Friday and one to day I may con- clude that both barrels of bis gun have gone off and I can approach the figures with a certain degree of safety. I cannot concur in the method of the Treasurer in deal- ing with his subject. I have just read over his last four Budget speeches, and one thing strikes me as peculiar. In all these he labors hard to throw all the responsibility of his adminis- tration upon his predecessors, and nothing pleases him more than to abuse bis prede- cessors. I should think that, now that we are dealing with his own administration, it might be well for him to defend and explain, in view of his promises and those of his "artv, his own acts and expenses. It is ex- traordinary also for the Treasurer, in view of his flattering speeches on the bright finarcial situation of the province, to now say that he is POWERLESS TO MEET THE EXPANSES without a loan, because the House has voted various sums. I contend it was and is bis duty when the House is attempting to pass votes of money, if there are not sufficient moneys to meet the votes, to tell the House so plainly. Not only has he not done so, bat both he and the Premier, by their speeches in and out of the House, have all along led the House and the country to believe that all these sums of money that had been '^^oted could easily be paid. On this I will speak a little later on. Now, what my friend the Treasurer Is charged with by the Hon. Mr. Robertson, is violating previous promises as to economy, in increas- ing expenditure in every department and in manipulating figures to throw discredit on former administrations to show that he had a surplus each year, while as a matter of fact none ever existed. Now, one of these manipulations consists in placing under the head of extraordinary or special expendi- ture amounts which should not be so in- cluded, and by eliminating these from cur- rent expenses endeavor to show a suplus. I will not weary the House with details of these items, but let us take some of them. Let us take for 1890-91, Tourt house, Sher- brooke, $3,000 ; Court h se, Iberville, $3,- 000, and $20,000 lor nigut schools. Now, what does this mean ? Take it in a business way, it means an expense to these court houses last year, but it also means, and every one knows it means, that next year a similar or like amount is required for other a. ., ..1 laobt tepaifS »D;u im- proTementB we shonid provide out of or- dinary revenue. Well let us Bee how the hon. TreaHurer deflaed expenses of this na- ture in 1887, when he made his first Budget speech, and when he was FREE KKOM POLITICAL EXIGENCIES or fetters. The Hon. Air. Robertson had a vote passed of an extra and special expense of $100,000 for colonization over and above the auQonnt usually voted. Here is what Mr. Shehyn said at page 10 of his speech :— '• I have included in the ordinary expenses a sum of $100,000 applied to colonization roads. This sum, although specified in the Budget as to be taken liom a loan, really falls into the category of ordinary expenses. It ie quite true that it is exceptional on ac- count of its figure, but not so on account of its use, since expenses of this nature occur every year. How now can he come back on this detiuition and pretend that these ex- penses of repairs to court houses, gaols, and night schools, etc., should not be con8lder- ed as expenses of 'a nature occurring every year.' " If he can do this we will find practi- cally everything come under this heading and then how is it to be paid for ? Are we to borrow money to do so, and if the latter, how are we to pay the interest? It seems to me useless to try and hide the situation by a transfiguration in the accounts. MU. shkhyn's ertimates. Now let us take the Treasurer's speeches for the last few years and examine his political or financial prognostications. He always preached economy and retrenchment. In his speech he promised, with the assist- ance of the Premier,who was then .(Attorney- General, to reduce the expenses of the ad- ministration ; reforms were also promised in the Department of Crown Lands, and, to a certainty, the expenses of legislation and civil government were to be materially re- duced trom their extravagant figure. I can- not take up the time going through every year, but let us take his spetch of 1887. The following are his estimates, and also the actual result : — Actual Estimates. Exiendlture 1887-88. 1887-88. Public debt $l,074,H68 $1,103,700 Legislation 181,786 228.994 Civil Bovernment. . 192,850 208i677 Justice 471,122 5.')4.15.5 Education 871,085 87,5 458 Agriculture 155,150 192,500 Puhlic works 58,906 145,906 Asylums 280,000 241,000 Charities 39.316 39,810 Miscellaneous 226.250 27^,180 $3,000,829 $3,365,026 This you will see, Mr. Speaker, was not a good beginning, but still they are facte. Perhaps now it would be well for the Treas- urer to think over these figures, and see if he is right in attacking the hon. member for Sherbrooke, and also to see if ho has kept his promise. I need not go into other years ; they are on the same basis, but let us take the tacts in other yeais, and show the general expenditure, and I will take as a commencement and average year 1885-1886 the last year of the lloss-Taiilon Govern- ment. I must also ask the House to bear in mind that these expenses are within the control of the Government. The following were expenses in the various departments durinp; the years given. CROWN LANDS. ffi"l88?:;:;;::::-;:;:::-:::;:::::::;:«}^«;?«? 1887-l'<88 ll'y'7'in i«8«-i889 ...::: 201 ooo 18«9-1800 ;: 250,033 In the year 1887-88 there appears a won- derful diminution, but in this year ihe new invention of giving letters of credit arose, and the result of these appears in the year 1888-1 889. Let us now take expenses of the administration of justice. Of course my friend, the present Attorney General, is not responsible for this ; but in view of the special declaration made by the Treasurer of thg extravagance in this department and the determined and combined iateotion of his and the Premier's to reduce it, the figures are interesting and perhaps testimony of promises. ADMINISTRATION OF JUSTICE. 1887-1888 fi55*3l'> 1888-1889 559 12« i««9-i«9o ::..::.::;:: l^liss This shows an increase over the adminis- tration, of which the the hou. member for Sherbrooke was Treasurer, of $100,000 to $150,000 annually Coming now to the question of legislation, which is so largely under the control of the Government, we find the expenditure to have been : liEQISIiATION. J««^^-J8«6 $181,987 188b-1887 278,169 18S7-rs88 228*994 1888-1889 2^1812 1889-1890 .::;...::.::::;;; 312:948 I will take up but one more heading to again show that we have a right to com- plain aiji accuse the Government of ex- travagance : — mvih OOVBBN^KNT. 1»8«-1887 19;S,904 1887-18HH 2()8[677 1888-188!) '2'Ati'iiit7 183!1.1890 v. ......::. 25B:144 Now, Mr. Speaker, candidly and fairly, have we not Kood cauwe and justification to charge tbe Government with recklesH and ueelesB expenditure, and especially so when we find no beneficial results? Can we not use the Treasurer's own words and accuse him of extravagance and incompetency, and as having violated all the party's pledges and promises ? Let us now come to another feature of the hon. Treasurer's speeches, and as an illus- tration I will take the expenditure by him on TflE yUEHKC COURT HOUSE and the Parliament buildings. It has special bearing on account of the charges that the Treasurer made agaiubt his prede- cessors on this score, charging them as he did and as I will show from his own speeches with incompetency, imbecility and practically crimiual negli- gence, ow, sir, I don't wonder my friend, Mr. Robertson, resent d these charges, and I do, too, and I am here to-night to put these charges not on Mr. Robertson, but on Mr. Bhehyn. Let us see with what apparently but now simulated righteous indignation Mr. Shehyn qualified the conduct of his prede- cessors. Take bis speech of 1887. and in order that I may do him full justice and let the count.y pronounce the verdict, I will take his own v7ords He makes an assault on the general expunditure on these build- ings and then conig language, but applicable, obtaining money ucder false pretences. Has not the Treasurer in holding iigures show, iug surpluses each year led bis party to be- lieve there were ample funds far all these expenditurei^ ? Why, sir, what did the Trea- snrer say in his last Budget speech on the 21st February, 1890, not ten months ago. I will give his own words ; " If, on the one band, the servleesjust enum- erated (and be bas been aliudlnK to some items of general expenditure) have cost us more, no one, 1 am sure, will attempt lo blame UH for bavioK Increased for objects so useful and so necessary to the province the expenses of those services, and, on the oiber, we have succeeded by a wlise and Arm admin- istration In finding the means to meet the re- quiiements of our policy." And ngain, In the conclusion of his speech, he adds : " As for the tinancial situation I think 1 can safely assert, without fear of serious contra- diction, that it is Infinitely superior to what it was when we came into power. With our f>r#sent resources we have .succeeded In cover- ng past deflplls, meeting the Increasf In the Interest service, providing for unavoidable expent-es and in showing a respectable sur- plus. This is certainly the best proof that our exertions have not been unsuccessful," On the same evening after Mr. Desjardins had exposed the Treasurer's figures and openly stated thev were wrong, and that notwithstanding the increased revenue the figures showed enormous deficits, a floating debt of about six million dollars in round numbers, and that a loan was necessary, what did the Premier say. Let me give you his words also. After alluding to the railway subsidies he sajB:— " We have paid a fourth or fifth of these sub- sidles without borrowing a cent ; we have tald $400,000 to the Jf suits : we have paid lOO.uoO for the construction of Iron bridges; we have paid the $50,000 for seed grain; we have paid all these sums, which you know of, and yet these gentlemen have the audacity to tell you that we are leading the country to bankrupty. * • » • And he (Mr. Desj r- dins) asserts with infailtble knowledge that the treasury is empty and we mUst borrow. Well. Mr. Speaker, let him say sO; the prov- ince of Quebec is not the less in a prosperoug state and the treaiursr In excellent condi- tion." Now, sir, how can we characterize these declarations and statements made, not on the hustings, but from the responsible places of the Premier and Tieasurer in the House. They must have known the true situation, and the Treasurer bas just told us. In less than four years be has a floating indebted- ness of $6,700,000 WITH NOT A CENT TO PAT IT, nor any asset to pay it. For 1890 our ordin- ary expenses were $800,000 more than in 1886, taking Mr. Shehyn's own ciassiflca- tlon of the accounts. The Treasurer's statement shows for years of 1889-90 a deficit of $551,963, or that amount more paid out than received from the ordinary revenue of the year, and his estimates show for the current year a larger deficit. And all this has taken place during these years when he received as special sums— $100,000— for education from On- tario, which should have been invested but has gone into the ordinary cost ; $656,000 arrears of tax on commercial corporations; $125,000 in settlement of a debt for prison- ers from the city of Montreal ; $150,000 from the proceeds of two sales of Crown lands, or a total of $931,000, and also annual- ly each year in revenue ?^125,000 from the commercial corporations ; $150,000 increas- ed dues from ground rects and timber dues, and from $40,000 to,during the last two years,' $130,000 increase from licenses The ex- penditure can be taken from the Treasurer's own figures and classification : — 1886-1886— Ordinary '^3,088,1«3 Special l,05v;,903 Total $4,i4l,0U6 1886-1887— Ordinary . . . $3,280,697 Special 1,6(>8,917 Total $4,7«8,616 1887-1888-Ordinary $3 865 032 Special 2;861.710 Total .. $e,2i6,743 1888-1889-Ordlnary $3,543,618 Special l,58o|518 T°ta* - $5,124,136 1889-1890-Ordlnary $3,839,839 Special 1,473.067 T°^*l $5,312,907 18nn?«Jf"^'^HP ^^ "^^^ TREASURER. 1890-1891-Ordlnary $3,425,646 Special 1,462,183 '^°'*^ $4,877,828 rlALi. l.^ A , ^ .0 fv 8 1891>1 802— Ordinary fa,BnR,H94 Special I .H'26.6H1 Total 3t5.:iH5,476 There is but little doubt theee eBtlmates for these two will b« exceeded very largely, aa tht-y bare been in the paHt yearH. Yet the TreaHurer'H eRtiniates for receipts in these yeatR in $3,528,677 80 for the year 1890-1891, and $3,602,835. I know, Bir, that figures are ▼ery tedious to listen to, and I wilt not, as I might, go into the question of the INCREASe IN THE PUBLIC DEBT, and the quention ot these trust funds. Suf- fice the calculation of our funded debt on 30th June, 1887, according to Mr. Shohyn's figures, was $18,165,0i;{, with certain as- sets on hand reducing " the net figure of the consolidated debt or the excess of that debt over the assets was $8,161,813. It has now been increased $3,500,000 by the loan in 188/ and will be increased by six or seven million more with the present float- ing tebt and no assets to show or an increase by the present admiuistration in less than four years of at leust $10,000,000 more. Over $2,000,000 of trust funds and railway deposits received and paid out indiscrimina- tely for ordinary purposes ; and hundreds of thousands of dollars of the Municipal Loan fund remitted in counties for the sole pur- pose of assisting Qovernment candidates in elections. It does appear to me the situation is not salabrions, the treasury is not in excel- lent condition, the age of a surplus does not exist nor is there any diminution in the ex- tent of the expenditure. We are willing to see the country develop and assist in its progress, but we should all require the Treasurer to show us how we are to pay the debts we have and bring our expenditure within our inf^ome. It ik bad principle without assets to have recouroe to loans to meeting floating indebtedness. To me it would seem to indicate we will soon have to borrow to pay the interest. I sympathi/io with the Treasurer on account of the de- mands made on him and it is time the people of the province should be educated to the point of assisting themselves in the development of the country and not be run- ning every minute to the Treasurer for sub- scriptions and aids to horse-trots, damages from hail storms, deepening rivers, building piers, etc. In conclusion, I hope the Treasnrer will not feel that I have sometimes usel biird language, but he must remember he con- demned my friends, his predecessors, and more particularly my friend, the Hon. Mr. Bobertson, and I thought it only well to criticise his own figures and to say that the questions of misleading the House by mani- pulating figures, the charges of extravagance, recklessness, incompetency and lack of ad- ministratlTe capacity might be properly charged to others, but not on my friend, the Hon. Mr. Bobertson.