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6
DOMINION FINANCES.
The Enormous Debt and Expenditure. Facts showing how under
lory Rule, Debt and Taxation Increase by Leaps and Bounds.
Why the Population Increases Slowly.
In a recent article entitled the " Dominion Finances," a Tory organ, the Mail,
repeats the usual stale falsehoods touching the increase of the public debt and
burdens of the country.
1. The i/aa calls the "net "debt of Canada $196,407,692; going back for
this pui*pose to June, 1885.
it does this knowing that Mr. McLelan, the Finance Minister, on che 3rd day
of March, 1886, in the House of Commons ( vide Hansard, page 42) stated the " net *'
debt to be $208,522,695.15; and that since that date the country has accepted
$20,000,000 from the C. P. R. for $30,000,000, thereby raising the so-called " net "
debt to $218,522,695, at least ; without counting a very formidable list of liabili-
ties incurred by statute, amounting to many millions more, and without takiug
into consideration the well-known fact that a very considerable amount of the al-
leged assets are of very doubtful value.
2. The Mail says that Mr. Mackenzie was responsible for an increase of the
public debt of forty and a half millions from 1874 to 1878.
This is utterly false. It has been proved that almost all of the increased
debt incurred between 1874 and 1878 was caused by the foolish and onerous ob-
ligations entered into by Sir John Macdonald's Government prior to Mr. Macken-
zie's taking office, but for which Mr. Mackenzie was obliged to provide, although
in nearly every instance they had been incurred contrary to the protests and
warnings of the Reform party. Herewith is a short summary from Return
No. 44, which wad laid before the House of Commons on the 28th February, 1878,
showing the total amount chargeable to capital, expended on public works batween
January 1st 1874, and February 28th, 1878, under progress when Sir John Mac-
donald's Government resigned in November, 1873 : —
St. Lawrence Canals $3,320,489 93
Welland Canal 6,948,849 63
Ottawa works 1,403,859 80
Bale Verte Canal 080 25
Public Buildings, Ottawa 913,182 05
Railways— N. S. and N. B 1,355,276 33
Intercolonial Railway 5,926,559
Pacific Railway 81289,348
33
85
P.E. Island Rail way 288,632 73
$28,447,188 90
Add Amount expended on above works between July
1st, 1873, and January 1st, 1874; and March 1st and
July 1st, 1878 $ 4,000,000 00
Total ,
.$ 32,447,188 90
It is the very height of absurdity and unfairness to argue that because a reck-
less and profligate Government like Sir John Macdonald's chose 'In spite of all
wainings) to entftr into innumerable oigagements just before being turned out of
office for gross corruption that Mr. Mackenzie, who succeeded them, is to be held
i'oKU 18.1 rOTEn,
responsible for the expenditure thus forced upon him, but it is of a piece with the
. whole argument.
• I" -■ .1 Uiiii
3. The Mail says that the taxation per head has only increased 8 cents —
from S5.32 in 1875 to $5.40 cents in 1885.
The facts are these : —
In 1875 the estimated population was 3,850,000 ; the actual taxation ( vide
the Public Accounts,) was $20,664,878, being nearly $5.32, as stated, and giving
about a million surplus.
In 1886, the present year, there must be raised in taxes to make both ends (of
ordinary expenditure) meet $27,500,000 out of a white population of barelv 4,500,-
000, being at the rate of $6.10 per head, an increase per head of nearly 78' cents,
(an inorease equal to four dollars per family,)
instead of 8 cents, or nearly ten times the sum stated by the Mail. There has
ako to be faced, thanks to the blundering imbecility which brought about the re-
bellion in the North- West -a deficit of $5,865,553 for the year ending 30th of
Juixe 1880, vide Official Gaz tie, November 12th, 1886.
Passing over the important fact that the nominal taxation— i. e., that which
actually finds its way into the treasury— is less by many millions than the sum
the people have to pay, and proceeding to : —
4. That the rate of interest per head is now the same as it was in 1878 or
1879. viz., $1.59.
This b wholly erroneous. The facts are as follows :—
1878. — Population. Interest and charges of Management
4,000,000. $7,238,000.
Per capita $1.81.
1886.— 4,500 000. $9,512,000.
Per capita... $2.11.
being an excess of 30 cents per head, or $1.50 cenis per family, and that will be
considerably increased in the current year. In that account is not taken of the sum
to be raised for the Sinking Fund, nor are the sums deducted that have been re-
ceived as interest on investments. These figures are taken from the Public J^ "-
counts and from the Estimates, and they represent the actual condition of afiL i
to-day, of which very probably both the Premier and his organ, the Mail, are in
blissful ignorance.
Briefly the Mail stands guilty of these several frauds and misstatements :—
1. It has, with full knowledge of the facts, understated the net public debt by
over twenty-two million dollars.
2. It has suppressed ^he most important circumstance that we are liable bv
statutory enactments for many millions more which must be provided for.
3. It has falsely charged Mr. Mackenzie with very many millions of debt
really incurrea by his predecessors and against his very strung remonstrances.
4. It has (with Mr. McLelan's statement before its (jyes that he requires to
raise 8'27,200,000 by actual taxes) misrepresented the sum required to be raised as
if it only involved 8 cents additieual per head, whereas it is really 78 cents addi-
tional, being nearly ten times the sum stated in its columns.
5i, 5. The Mail has similarly misstated the amount of additional interest now
required to be paid, aileging that this is no more than in 1876 ; the iact being that
rr/ef ""^^ ^l^ P^r * V'^ -^'^^ts additional, and that too althou-h there has Bee i
H„ j^fl. K ^'^'■'', ""^ ^*'^"^' *^ ^^^ Jo'^'^ Macdonald or his collea-uea.
PODukttnUn hrn^'-P"'^^ ^''^^'' advantage of. Canada ought Twith an increased
population) to be paying very much less to-day per head thaS it did in 1878 or 1879
that HCtSrfd'^L^'X "•' «»-"' --^-»' of ">« 1-t Ve^ /et!
Ti"*" ^ii'^r^""*/'!' ^°^ ^^^^'^y a", tl^e truth of the case,
taxatliln a^fex^^ndUurl "'""' "'"'^ 1875. the year of Mr. Mackenzie's highest
.aused SwC'?^ *"^'^ ""^^ *^^'f ^'^^^ expenditure was proved to have Keen
•aused by the outrageous commitments of his predecessor for minor public works
m 1878 the population in that year being a little over 4,000.000 fthouffh that
fc%rr;.'^ Xit "'-'" *^^^"''" *"-^*''^^«' ^'- '»« '-- --^
1^ T'it® ^* '^ ^^^^ *^'®''® was a deficit of Sl.100.000 in 1878, and that if this be
added the necessary taxation would have been $ 19.000,000.' being at the rate of
m.7o per head in Mr. Mackenzie's last year tuo inte oi
„o oif ""' ^^^""^ "^t" *,^'°.* i^^""'^ °^ $2,240,000 in 1885, for which fehe Mail makes
no allowances and which, if calculated for,
WOULD MAKE THE NECESSARY TAXES FOR 1885,
iTrt?-]''"/ Pe^Y-f^'^^'Pl""^ S27,62-i,000. being over $G per head and over $30
per family for a white population of 4.500,000. "v«i «>uu
^ Take 1882-3. In this year the white population was 4,350.000 (at outeide)
bp«H o^«^^^^r T ^^^'^^^'f ^' ^'^S ^^-72 per capita. This is $1.40 7er
head or $7 per famdy greater than in 1875 (Mr. Mackenzie's highest year), and
(S:Ltl^^!!t%^a^^^^ ^^^" ^^^ "^^-^^'^ ^--^^' - ^«'-«'
«nrv?nT«f!^Q^^^'®^^ "^^ """^^ ^^^ ''°°'^^^^ taxation, which came into the trea-
The actual taxes paid by the people under the present system are at least
FIFTY- PER CENT. MOEE THAN IS RECEIVED INTO THE TREASURY.
<^M .on nno '^T r'^'P^' ^°r J'"*^^-.^ "^^^^ $23,009,582. Add 50 per cent., say
5151 1,000,000 Real amount of taxation inflicted in 1882-3 was $40,769000 i be n^
at^therate (taking population at 4,350.000 whites) of $9.35 per head, or per family
No wonrlor tile population grows slowly, and that two-thirds of the consti-
tuencies cannot keep their natural increase, and that the population of the whole
iNorth-west lerntories outside Manitoba la^tyear Wiis only 23,000 whites i
Ihose who vvill ttike the trouble to consider what the facts we give reallv
mean will never afterwards pav the slightest regard to any assertion, whither made
oy c>jr JoJin. or his orcran, the Afa.iJ. oran^^rif hw anKoi/iu^/i t>:^«i:-~~ ;,, xu. u
or „ the Press, te the effect that Sir John Macdonald " has not incrc^vsed the
burdens of tl.o people of Cana.la."
4
In lici67 the actual annual expenditure of the Dominion was $13,486,092.
And the actual taxes raised were $11,700,681.
In 1880 the actual annual expenditure is known to be $39,176,970- or sav
$36,176,976, by deducting $3,000,000 for war expenses.
And the necessary taxation without allowing any marffin. is not less than
$27,500,000. 6 J 6 . »»
In nineteen years, the actual annual expenditure (less war charee') has
increased $22,690,884. * ^
And the actual necessary taxation has increased $15,800,000.
Who has done it ?
AS TO ACTUAL ANNUAL EXPENDITURE.
Sir J. A. Macdonald found it $13,486,000 in 1867, and he left it in Nov. 1873,
at an estimated expenditure, as per Sir L. Tilley, of $23,685,000, being an increase
in his first term of $10,199,000 per estimate, and $9,830,000 actual expenditure.
Mr. Mackenzie spent in 1873-4, $23,316,000 (being $369,000 less than Sir John's
estimate), and left it, in 1878, with an actual expenditure of $23,503,000. beincr
a total increase of $187,000. *
Sir John returning found it, in 1878, $23,503,000, and now requires $36,000,-
000, being an increase in his second term of $12,500,000. So that of a total
increase of annual expenditure of $22,690,884, Sir J. A. Macdonald is responsible
for $22,403,000, and Mr. Mackenzie for $187,000, being as nearly as may be
one hundred and fourteenth part.
Remember also that in his term of office, Mr. Mackenzie had to provide for ■ —
1. Interest on $32,000,00i> debt added (to meet Sir John's *
engagements) from 30th June, 1874 to 30th June, 1878. $1,280,000
2. Extra charge for Mounted Police 135,000
3. Extra charge for Indians 275,000
4. Extra charge for Post-Office 340,000
5. For Supreme Court 80,000
6. For working several hundred miles additional of Intercolo-
nial Railway, which Mr. Mackenzie completed, estimated 500,000
7. For additional sinking fund 430,000
Total (omitting very many minor items) $3,040,000
Mr. Mackenzie did all this, and besides provided for expenses of, at least,
300,000 more people in 1878, than in 1874, and he only added $187,000 to
the annual charges.
Precisely the same thing occurs as to actual taxes.
In 1867 these were $11,700,000
In 1874 these were 20,129,185
In 1878 these were $17,841,000, and allowing for deficit the
necessary taxes would have been 19,000,000
In 1886, the necessary taxes are 27,500,000
Total increase from 1867 to 1886 is $15,800 000
From 1867 to 1874 it is $8,429,000.
From 1874 to 1878, the decrease is $1,129,000 (allowing $19,000,000 for 1878)
From 1878 to 1886 the increase is $8,500,000 (adding 1,103,000 in 1878).
And in tlie face of those self-evident facts, the neopie are aslced
to believe Sir John Macdonald has not added to the financial hur-
dens ot Canada!