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JOSEPH HlIElIYiN T IN REPT.Y TO TIIK (CRITICISMS (W M. L. il. DES.IAIIDINS, M. W W Legislative Assembly, Sitting of the 8th Mardu 1889. MONTREAL : I'RINTEn DV THE HERALD CO 1889. If T THE FINANCIAL SITUATION OF THE — PROVINCE OF QUEBEC IX 1889. Complete Refutation of all the pretensioDS of tlie Opposition. SI^IEIBOS: OF THE HON. JOSEPH 8HEPIYN IX KEl'EV TO THE CRITICISMS OF Mk. L. C. DESJARDIXS, M.P.P. Legislative Assembly. Sifting of the 8th March, 1889. MoXTKE.M, : PRINTED l!V rm; IJEKaLD CO. 1880. >y/3/ * IJ i M 4t REPLY OF THE I HONOKABLE JOSEPH 8HEHYX, TREASURER OF THE PROVIXCE OF QUEBEC, TO TIIK CRITICISMS OF MR. L. G. DESJARDINS, M.P.P., OX T]IE BUDGET SPEECH. LEGLSLATIVE ASSEMBLY. Mxi. Speaker Siffina- of (he Sth 3Iarc/i, 1880. In moving the House again into Committee of Supply to continue to leplj to the inordinate critieism.s contained in the speech of the lion niemb.. for Montmo.ncy in answer to my statemem on the finan.:;::! ituation of tJie province. I do not undertake the task Avith pleasure ; o r 7 J '"""T n '' '^''''^'' "'^ ^^"^"^"^ ^'' proverbially uninteres.-' ng HI I cannot allo^v my hon. friend's criticisms to remain unchal- lenged. because to do so might be interpreted as a sign of weakness To offe^'^ ^'''^ '""'''^^ ''^'^''''' '" ^^' '^'' ''^' '"''"^^ ^^^ '^^ ^ ^'''^ "^^ ^^"l'^""^'« It is unnecessary for me to say to the hou. member for Mont- morem a long-winded reasoning, not so much to estalilish the truth as regards the linancial situation, as wholly and sohdy to gain a party end and to throw discredit ui)on his adver- saries. He manipulated his ligures — it is tnu' — with a certain skill, but bi'inu' careful enough, howevt'r, to use as a })asis premises that are abso- lutely false, which he did his l)est to conceal I'rom the public. The deception wmis artl'ully conceived ; but it was only a deception after all. as I will luu'e no difticulty in showing. The luAi. n\ember began by stating that I was a pessimist while in Opposition and that I have siiu'e become an ojitimist, or, in other words, that I only saw di'ticits arul extravagances when my hon. friends on the Icf: of the Speaker oicupied the Treasury benches and that now I see everything under smiling colors. Let the hon. member rest assured : it is not I who have changed, but tht' situation of our finances which has altered for the ))etter. That situation has improved, because the new Government, which the people have called to the helm, has seriouslv lal)ored to restore order in our linances and to carry out the true ])riuci- ples of a vigorous and healthy administration. As for myself ]ierson- ally, I have remained the same man I always was. and. if thini>s were now going as thiw' did when I criticized the administration of my hon. friends opposite, I would have no lu'sitation in stating the fact just as frankly and in exhorting the House to take the necessary measui'cs to restore pros]K>ritv. For my part, I shall not follow my hon. friend's insidious course of makiuL!' out against him charges of inconsistency as groundless as these he I'luleavorod to urge .igainsi nv . but which he has not bt>eii able to : [ I I I Mvppo t hyany tan^:hl. prooi: To hi« vaguo niul ^ratui.ou. assertion^, I hha n.p y by vev.rti„o. to hin own j,ast and by citing a IVnv of tho sp..j,.li..s .vhn-h he made whon his IVionds wero in pow^r, not nl!.i: '•••• 1^. p .asiuv ol humiliating. him-lV>r J di.sdain nurh mHhod.s-but to -" >1.- ho Hous. to better appn-ciato th. intility of tho argum.nts NNhnh h. nowuro.,.s ,g,v,„st onr administration. This retmspectivo ghiucc will .■onslitutc the first part of my remarks. AtV,.r,showin.. what w.-r. ih. finandal theories of mv hon. friend when he was a Ministerialist. I shall endeavor to demonstrate the ialla<-v and mjustiee ol his present eritieisms. I shall also follow him into th'e most mumte details into whh.h he has been pleased to drau- ns. because J do no des,re to leave any of his pettifogging arguments unanswered. All that f ask irom the House is a little patience and attention The hon. mem],.r for Montmoren.-y boasts that he has not varieeo.in by estab- lishing, ^vlth the help of his own declarations as a Ministerialist what were, m Ins opinion, th(> true principles and absolute rules oi" o-ood ii-iauce. do not undertake this task for the mere pleasure oi" puttin-.. my hon. Iriend in contradiction with himself. ],ut to enlio-hten the 1 ouse and the puldic ujKm the complete fallac-y of his hio-h!soundino- claims to unchangeableness and to prove that his present^M■itieism is ai ogether ni contradiction with the principles which he advocated when his Iriends were m oihce. I shall also show that the sound doctrine, oi which he makes so great a display, has never l,ecn in his bauds anything more than an exceedingly elastic and pliable in- strument which he has invaria]>ly, according to circumstances, adapted to suit his own purposes, in other words, it will easily be seen that 1 he accorded to my budget oue half of the indulgence"he extended to those oi my predecessors in the Treasury, he would bear me out o-i every point. 6 I shall not tire the House with long: quotations. It will Ix' suffi- cient i'or me to reeall his past th(>ones by indicating with care aud 'accuracy the date, volume and page of the Ilnnsar/l, in order thUt the text may be verified. It was in 1883 that the hon. nuMn})er made his debut as a speaker on finance. His great aim was to obtain a killing ellect by making up in (juantily what he lacked in quality, and, il' he did not succeed in being clearly understood, nobody at all events could complain that he did not speak long enough, lor, if I rememb»>r rightly, his first financial speech took up not less than three long sittings of the House. This certainly should have been enough to enlighten the House and the country, if both were not completely l)lind. Unfortu- nately, however — as you will remember, Mr. Speaker — this prolonged dtmouhitration only served to leave us all in the dark more than ever. The hon. member commenced his speech in a solemn tone, just as solemn a one as he put on the other day vvheii he criticized niy budget statement, laying great stress on his learning and knowledge in liuan- cial matters and posing as the sole possessor of the qualifications re(|uired to properly treat such .subjects, lie stated to the House, with the most charming modesty, that, though he had ncA'er been a business man and liad never engaged in commercial piirsiiits, he thoroughly understood iinani'ial matters, liecause he had u'lven the question long, patient aiul serious research and had studied up some of the best authors on the subject in order to post himself properly on the great principles of finance and to give us the beneiit of his appreciations of the past, his opinions on the present and his forecasts of the future. (See Debates of 1883, p. 528.) lie n(>xt insisted on the absolute necessity of i [nu>x the ordinary and extraordinary expenditure separate — the very thing he censures me ♦o'day lor doing. II.' treated the |16,000 for the public offices at Montreal in 187o-t(i as an extraordinary expenditure. He needed to do this in order to con- \erf the then deficit into a surplus of i^1,101.63 (Debates of 188:5, p. 531). And now, for iho sole reason that he must at any prk'e turn my surplus into a defii4t, he takes the very opposite ground by his refusal to acknowledge, as extraordinary, expenses much more legitimate than those which he then ranked in the category of extraordinary expenses. ■' n S8i-s_, h,. ass.Mtod that a sum ol' .^10,000 lor iH.rnum..ut .xhil.i- tion biuM.nns nt Monlm.l was imt an annual exp.nditur. an.l .hould not ho-un. as an ordinary .■xp.nso; and, or. tin- sauio prin.-ipl., h. at a loan is an „nlinury of the province." (D.'batos .'f iss. ",[,-,, 'i:,! J ~ "' ^'''' ""'^'""^ ^* "'« '"^""al liabilities $10,000 advanced to he I'rotestant Asylum, which is a loan nd not an exponditun. chargeable to the ordinary budget, Just as much as tl^ advance to the Trajqnst Fathers : ^'r^^^'ry'^^^^^^^^ '-penscs ,,o n,. be,..n, to the n.ukin,^ upti.e balance .,f tl,., „pora in" of flat payments „1 tlie year, ^^lum snuHs not tcMK.blo and further tlla. it wmttlnu^ovelli^p^^^^^^ '""^ '''''' ''''^ l'^^^^'^" Could there possil)ly l>e more downrio-ht self-eontradiction ^ Yet hronth ^ ^-;^^1/>1- impartiality with which the lu>n. member has Ihrouo-hout criticized my linan.nal statement. $.>,,8.000 oi commeivial taxes which I collected in 1887-88. lie contends mm that the biilk of this receipt, being made up of arrears, is imputable to capital. Nevertheless, wheu in 1882 Hon. Mr. Wurtele ranked as an ordinary receipt the So54,14f>.83 of t'-e Montreal debt, a\ lich was the collection of an asset, the hon. member for Montmorency approY»'d his action l)y the statement that ihe receipts from the municipal loan fund, although being receipts on capital account, should be estimated as an ordinary receipt because they would last for some years. And he added in a dogmatic tone as if to lay down the rule finally and without appeal in such cases : " Every .scnirce of ainnutl rovi'luic, wliich is to liave a certain duration, ciin witli niu 'li plausibility lie regarded as an ordinary resource." (.Mehate.s of LSSIt, jj. bob). Well, in applying this rule, it is perftM'tly clear that the receipts from the commercial taxes are much more durable than those from the municipal loan fund and that they are collections of re\'e)iue, while the receipts from the municipal loan fund are collections on capital account. It will thus be seen that my hon. friend completely forgot the nile of his own laying down in 1888. After stating in 1885 : " If yon strike oil' fnini the ordinary revenne tlie receipts on eapital iicounl, it is evident tliat, for llie same reason, yon ninst also deduct I'roiu the expenses of the sumo year the works inipntable to capital." (Debates of ISSo, p. 1()S8). He now seeks to ta}>ricate a dehcit for me by doing precisely the opposite of what lie then adA-o(>ated. Here are some of the rules which he then laid down to establish the di.stinctiou between the ordinary and the extraordinary budget : He estimated as an extraordinary expense the cost of the construc- tion, extension and completion of the public buildings (see Debates of 1883, p. rj2!t), and yet to-day he denies to me this privilege as regards a large amount of costs of construction, extension and completion. Not only did he count as an ordinary receipt in 1881-82 the $;.jo4,- 14t;.83 received from the city of Montreal, Avhich was the collection of an asset, but also the following sums : llefunds !$ 1 2,000 Fire loan 1,100 Trust funds (deposits repayable on demand) 25.327 S3^,48T • I e> Which, added to the ^5o4,14li.OO, made a tc.tal of |!502,633 of reeeii^ts that lie included in the ordinary l)ud,i>et without the slig'ht<'!si scruph^ while to-day he refuses to grant me the same privileii'e as regards receipts much more imputable to the ordinary l)udg'et than asset receipts, refunds and trusts. lie reproaches me with not having inserted in the ordinary Ijudgi t of the year certain special eypenses appertaining as arrears to the pr- - vious year, and yet these were the calculations which he nuide in 18^"i relative to the fiscal year 1883-S4. " From S1(KS,07'J.(M, let lis strike off tlio iJ74,:iflS.r)() of the iiicrt-ase in the service of the • lelit aiiil tiiere wilt remain a bahinoo of 84;>,r>~-l.(i;i. Jint it mii.st not be for^iotton tliat, dnr- int;- the year ]SS:;-S-1, we were olili^red to inriir alto^retlier S()ecial and nnforeseeii expenses. The linrninj^ down of the old l^irlianient lIon.se compelkHl ii.s to pay Sl">,ei'.o for the lilirary and ,'?2S,(i;>:.' for the temporary lionsinir of the Le-.'i.s!atnre. The jjrovinie eontribnt(!d .Sl"),i on towards tiio co.st of bnildiiijj: a new J)rill Hall at (^iel)e;'. The ('r(>wn Lands Department had, in ]S,s;]-S(, to ]:iay a snm of ,'?14,r)J',i.4!Mor expense.s inenrred in ]SS2-S;;. ]t is evident therefore that, to make a eorri^t comparison betwi'tni the i^xpense.s of the two liscal years, these .•rl4,."i4'.t.4',l shoidd be added to these of 1,ssl>-s;; and dedneted from those of JSs;^-.s-!. which wo\dd maki> a diirerenci^ of .S2(),(I!)S.0.(iS and exceed 1]y ,'-4;!,4.")(i.,'
  • ' hist year a diminn1i(in of S4;'.,4.")il.S!l in the expenses of tlie ordinary service of the jirovinre as compared wiUi the jjreceding lisi'al year." (iH'bates of ISS."), p, 'H\&2.) lie took good care then not to insert the iucrcnise in ihe service ol' the debt in his coinjiarative tables, saying : " The interest of the delit, tlie sum applie.l to the redemption of onr lionds, and tlie ex- j)enses of nianaizement are not included in tliis tabU', because they are not controllable expenses." ( Deljates of bS,s,^, p. ]0(i4.) To-day, he maintains utter silence, in his calculations, as regards the increase of interest and the expenses ol' sinking fund and management, for which ^ve arc in no sense responsible and which are entered as ordi- nary expenses. And yet he has the hardihood to diH'lare that, in dealing with me, he calculates in the same \vay as when his friends were in power. These are only a few of the member for Montmorency's fluctuations on the question of ordinary and extraordinary budu'ets. Here now an- some specimens of others on the increase of the expenses and the debt, and the means he takes to change a surplus into a deiicit, eti'. The j.e.'.l with w^hich tht' hon. member encouraged his IViends in 1888 to run into di'bt, to squandi!r public money, to pile up'delicits, to build railways at great i-ost and to sink millions iii Ihem, with the 10 iilteruative of selling them afterwards at a sacriliee as hud just been done in the ease of the North Shore Kailway, was truly surprising to witness. To spend blindly, to run into debt, was, according- to him, the way to get rich. Oh ! then, he was not disposed to quarrel with the Government about railway subsidies ; if he had had his way, millions upon millions would have been spent, and to carry out his object he would even have been quite willing to mortgage the whole province. In his speech of 1888, whole pages in support of these extreme views are to be found. But. to show him up in his true light all 1 have to do is to make a few extracts from his own rules as then laid down by him : " I protoiid "— .Siiitl ho—" with the (lonviction tliat I shall iiot boso'riously ooiitriidlcteil, that there is nothing' which jjrives a falser or mure exa jmibably exceed that before live years. The Inidgets of the (ierman Kmiire, of Austria, of Kussia, and ol Italy have increased in as great projiortions. Undoubtedly, each ofthe.se coinitries lias within the last thirty years spent millions for tiie defence of its Hag, its territory and its great foreign interests. lUit it is iM|ually certain tiuit a very (Considerable jxirtion of the increase of their annual ex ]ieniiiture has been necessitated by the retinirements of a more strongly consti- tuted public service to meet tb.e wants of populations rapidly increasing in mimliers, resources and dgricnltural, commercial and industrial wealth '1 he raiUva}' era has brought with it, in all countries in wliidi vast system.s have lieen built up, an era lA great tinancial development butii in expenditure and in revenue. " The same cause has produced the same ('Ifect in our own province. I'ar from being surprised or alarmed, we sliould rejoice at it, because it shows that, i)ropijrtionally at least, we are making as much progress as (jther countries. "1 f(^ir one— and 1 am convinced that the great nnijority of this House and of the elect- ors (.if this provin(e are of my opinion— see in this increase a cause f( r the liveliest satisfac- tion. 1 note with real gratilicalion tliat, gradually, since 18(>7, the resources of our provin- ( ial treasury ha\e en.ililed our iiredcci'ssors in this llou.se, as they are permitting us now . to lay out more and more towards the moral, intellectual ;'.nd material jirogress of our lieople, whicii shoidd te the chief aim of their rulers and repre.-;entati ves. We liave expended much more i u colonization, agricidtiire and education. Kveryoue should be fully satisfied witii this state of things and coiiiii-atulaie the direction of enlightened statesmen', have resolutely eirtered and w Inch they will not abandon, no nuitter what may lie said by tho.se who seem to take pleasure in discouraL'iiiL' them from their per.-evering ellbrt to build up their destinies on iimad and solid fouudationsi" (Deliates of bss;!, pp. ."i()!»-7(»-71-7:i,) 11 Thii... at that tim>>, according to the hou. member, there was no crime m comparing the young province of Quebec to the great countries ot Lurope with their millions of population and their colossal resources. The hon. member considered then as ridiculous and unpatrioti. all criticism on the expenditure. He saw in the increase of that exi.en- diture cause " for the liveliest satisfaction." The more extra .^agances did his friends commit, the more did they empty the public chest for objects which had only the faintest shadow of a public interest, the more did they fill his soul with ineitable happiness. Will it l,e believed tha It IS the same man who, in this House, the other day, emitted cries ot distress, because, in order to increase the revenue ])v $800,000 more than 111 188G, we had to spend a little more than the Ross Government during their last year of administratiou ? Now, let us hear him on the item of the debt : a.KlefIu.a..in„/nStriev^^^ •'ontrary one of the most powerful It was then the hou. member's opinion that the more one was in debt the richer he was. To-day, he is alarmed because we have con- solidated the enormous floating debt which our predecessors bequeathed to us. Assuredly, the hon. mem])er for Montmorency is not serious ^vhen he boasts of the immutability of his principles. I miuht, indeed say to him as he said in 1883 : ' fvar: 'vz:^z^:.:l:iii:;f^^:';^:[^^ ^r^^. -li-^H. and ahs,.;, ini.l disaster." (Del.ates\,f ISsL'; p.^V.'!'.) «^tra\agant prophene.'s ot rum, misfortune This is how iny ,.ritic wanted to guide his friends when thev were in power. ]-:xpenses, debts, were then nolhinii" in his eves so Ion- as they were incurred by a Government which he supported. In 1885^ ne still held to the same opinion : an iiu^liy: '^i'l:^^:::^^ in'tll;fvtr Tr^^ ^'T ^--r^l^tive Governments f;,r 1885, p. los.^.) '""l'^""'^'"^' "'"'"> '" "'« ^^ell understood pui.lie interest." (Debates of It is only siiu'o liis advoivsaries have lakou ovit the veins ot'govorn- m*'nt that lu' has suddenly ehany.'d his mind. In his i'amous speech of isS3, ^vhieh eonlaius a little ol" evei-ylhiny. I Hud the Ibllowing- o])servatioii : •' Tlio S;;,0(l(>,(ioo loan aiitluirized last session, ami that of S5(iO,(iOO wliich this Ia'lmsIu- t'lri' will sanction, aro til iiii't't an t'liual aiiiiiiint lit' tlic iilili;j:atii)ns whicii tVirni part nf tin' lialiilitifs of tlie jiroviino. ( iinsi'iinontly, the jirovinrial ili-lit will not bo i iicToasod to tiu- cxtLMit of a single dollar." (Pebates of t'hi' Jit>j:islature, ISs;;, )). r_'14.) Il my lion, friend was frank and sincere, he would now say: " Tlio i-^H.-'iiKi, 11(1(1 loan contracted in lss7 was to meet an e.|nal anionnt of the lloauii'.'- debt and obliu'ations bei|neathod ti tlie new (iovernnK'nt by its [iredeeessnrs and already forniin;;- ]iart of tiie lialiilities. Coiiseqnently, the jiruvinciai debit has not been increa.sei.1 to the t>xteiit of a single dollar." Instead of this, however, tlie lion, member proclaims as loudly as ]n» can that we liave increased the d 'lit to ixn alanniim' degree, 1> -cau^^^ we have committed th'' u'reat sin of ''onsolidating the iloatinu' debt Icii us l)y his friends. In the same way, instead of criticizing our loan, the hon. niemb 'r would plav a wi^er and a I'airer part by applying to lis the words he addressed to this House in 1883 : " ^Ir. (hairnian, the sub-amendnient of the hon. mendior for llochebiira is altogelbor inadnussible. It is nnijuestiiiiiable that it is better to consolidate the debt of the jir^- viuce. I'hat consolidation sluudd also be ent're. The inconveniences of a lloatini' debt .;re iidnutted by all. T believe it is in the interest of the province thai these is)li(l,uee of liie new loan should form part of the eonsolitlatevl debt." (l)ebate.s of JSS;5, p. 1L';]1.) And on the following page : " As regards the debt of the province, the evidently \\ isesl pulicy to jiursne is to ton- ilidate it and then pay it utf gradually by annual instalment.^ to the sinking fund and liy deinptiun.'' ( Debates of l.ss;;, p. li'ol'.) ' So re Again, with respect to th»' debt, the hon. member has now a dilli-rcin lule for estimating it from the one he followed when his friends were in pcnver. In his speeeli of lfss4, he did all he could to prove thai it was an error to count as an immediate liability the balance of the railway sul)sidi -s b/i'on' ihoy are actually paid out. (S.t iX'bates ol" 18?<4, p]). 104;i to ill.-,:],) Ill iss.'), he again alhided to the subject in these iin'uis : " 1 e.Kplained, last year, that the imblic debt was only made up of what was aetuiUy due at the date at whiidi the payment was made uji. Tliis method, which is linanciallv "a cvirrect one, i.s followed :'t Ottawa, Toronto and elsewhere &c., It IS uut'ovluuah. Hint tlii.s v-ry sum,' theorv. Avhi.h s..omed by his Iri-nds, but also with future and prospective lial)ilities, a part of which will perhaps never be laid to ourcharo-e. As for the consolidation of our lloatin- and the conversion of our funded debt, the memb.>r for Montmoreney has not alwavs held su. h llnn-s m horror; he merely did not foresee that before twenty y,>ars w.- ••ould ovt the money at 4 per cent. IL,4v is what he said on this head in his speech of 1885 : " Jf. ii» twenty years, the crodit of tho province i.s sucli tliat it can borrow ;i 4 ,.,.. ,.„..^ thero IS nothms: to prcwnt tliu renewal at that rate eit k r 1 v n p w ?^- '"^ "* I'*^^r.*ent., thrnngi,anotlHTlounof-tl,el,oncis,fortlu.n,..i;'n J^^ \ i,^ ^orth Shore l^tihvay is to he s,. a,>art by htw, it "the con. lallle \Xm to S wSd' t The hon. member further said, in his speech of 1888 : «itl,"ni"'*'"''^'i'"*!''"^'I','' '""•(^''«^s i'l the expen.litnre durin- a period of .severil v^ir. thout considering: at tl,e same time the devel'.pnu.nts of the reve u.e .s cer li^Uv ,. t tl ^ ^^ ay to correctly estnnate the linan.ial sitnation 'of a country." (Debutes of iS p. 574. ) To-day, my hon. friend has forgotten all this; he pretends to judo-e ot the situation by m.'rely looking at it from the standpoint of tile lu.'i-ease m the expenditure, which, by the way, did not frio-hten him very much formerly, taking good care to io-nore entirelv the increase in I lb' revenue which far exceeds that in the expenditure. Su.-h is the ' 'bates of 1883, p. t)01. 14 And yot ho, ^vho lormcrly was so lavish in words in favor of agri- cnilture and colonization, now oriticizcs the present administration for haviuff incurred the expense of a special department of Af^riculture and Colonization. On the question of surpluses iiud ddiiits, the same contradietions occur. At paiiv 547 ol' the Debates of 1S8^^, the hon. member, with an accent of deep conviction — and the House knows only too well how easily he is moved by a spirit of couA'iction when it siiits his purpose — euloffizes the " able. firm, jn'ogressive, prudent and economical policy " of the Chapleaii and ^[ousseau Governiuents, and proclaims, with all the appearance of a well felt sincerity, that tht^ era of deficits has ceased to exist. Nevertheless, the very fiscal yeiir, in the course of which he used this languag-e, culminated in a deficit of three to four hundred thousand dollars. That is what he termed ■ restoring the eqirilibrium in the budget." lUit he was then on the Ministerial side, while in the Opposition he follows a v<'ry dill'ereut process. To-dav, he accuses us of further pledging the credit of the pro- vince and sees only danger mid ruin in our administration of the public alfnirs and in our progressive policy. 15ut when, year after year, the oi)eri>tions of the Tren^ury showed only deficits varying between three and four hundred thousand dollars and sometimes running up to five or six hundred thousand dollars, what was the stand he took t Did he advov'ate a move prudent course ; did he warn his friends thnt they were leading the province to ruin? Oh I no, Mr. Speaker, nothinu' of the sort , he saw ever /thiuQ' in the brightest colors ; he loudly sang tlie praises of the men who were piling up on ns a de])t not of a few millions only, l)iit one that exceeded twenty millions; he did luit fear the slightest danger tlien. Those gentlemen, who wer(> accumulating- deficits upon deficits and proportionately increasing the debt every year, were — to i\se his own exprt>ssions — " prudent men, pursuing a wise, lirm, able. pro<>ressive and 'M-onomical policy." Let me recall the pleasant picture he drew in 1883 : (See Debates pp. S.VO-oOO). " It will lio iihvays to the lionur uf the Conservativo (iovernnient.s, wlio have adminis- tered the public affairs ot tlii.s province since ]s(i7, that they knew liow to apjireciate the true national character of the task which had devolved "upon them. They had fully understoiKl tliat their duty was to carry o\it ellectively the progressive ideas ofthe age, the henelicial aspiration.s whicli have been prevalent in tiie province since the union. To have refused, under the futile pretext of a misplaced economy, to ovcrste[) the restricted limits of tlu' provincial budget of oxpen.litnre as laid down at the .start bv the authors of Coufedera- I , tho five d ho ,v<'i'e tlie llu' i\'\v t'oar iiig' ery ise, the liins- tlie I'll II V the lavo \.!f of >ra- 1 I ' 15 tion wmilil luno boen a iiuuiifi'st ilereliction of ii siUTod duty, lufnortliy of tlie role of true stiiti'smen, mid would liiivo had fi ir oH'ect to repress the onward niovemeiit towards prositerity. which was so powerfully uuinifestinjj; ds(df even to the remotest parts of the proviuee. The C'ouservative party, in char^jf! of our destinies, did uot eonunit such a cajiital error. It was fully up to its true .standard, its re.sponsil)ility audits niissiou. The freiieral desire of tlie province \\as to (j;o ahead, and it not only secitnded its constant and .jiatriotic ell'orts in that direction with ardor, Imt ai'Coiuplished its task with foresi^dit and di.scernineut. The Conservative ( luxernineuts, like the province it.self, have fully understood how necessary it was for us to compete with all our miy;ht with the other mendiers of the union, so as to avoid fallin;; liehind them and to thereby ur. (dually lose the prominent and inlhu'iitial ])csi- tion we hold. To have remained stationary, while the others werci makiuj; rapid onward i)roy:re.ss, would ha\e rele;.'ated us io a jiosiliou of fatal isolation in the near future To liave been inactive tlirouu'li fear of financial responsibilities, when all around us we saw labor un pri id ca|pital, united tojii'ther for the purj)os(! of attainin;; their projzressive aims, oi)eratin;.: ,..odigi(;.s. Would have laid us open to the charjie of doin;^ nothing to increase the develop- ment of a country in which we enjoy the revenue, caused him no anxiety whatever ; he then took no account of the increased expenditure and experienced no alarm for the future, so long as his friends were in poAver. I)ut now that his adversaries are in olUce, what a change has taken place in his tone Y He is no longer in favor of a progressive policy, no longer for any advancement, lie charges us wuth increasing the debt, but why this increase? — to pay off the obligations which were a legacy left us by his friends, and to inaugurate for the benelit of tlie province the very policy of progress which he eulogized so warmly in ISSy. Far from being consistent with his own theories, the hon. member does not even agree with those of his friends. When Hon. Mr. "Wurtele, who was Treasurer in 1883, frankly admitted the existence of a deficit of $218,156 for 1881-82, (l^ebates of 1888, p. 892); while Hon. Mr. Robertson fixed the deficit for the same fiscal year at $5!»t),000, (Debates of 1883, p. 780), the hou. member for Montmorency asserted that the 1 10 cUlicit lor 1S81-H2 only amounted to $58,957. (D.'hatcs of l«s:5, p. 5:5i;). To-day wo aro in possession ol' the proof that tlie real deficit, accord- ing to the taV)le appended to the public acconnts, was $'208,000. It is this same learned mathematician, who modestly j^retends to a mo- nopoly of accuracy in financial matter,*^, who has undertaken the task of showing not only that the surplus of $:17'M9H for 1887-88 does not exist, hut on the contrary that there is a considerable deficit. AVith iny hon. friend's elastic principles, one could undertake to prove the unlikeliest things lie is as great an adept in forging deficits as he was formerly a success in manufacturing surpluses at the very time the pro- vince was running deeper and deeper into debt every year to meet its current expenses. Once more, let me remark that it is not for the mere purpose of humiliating the member for Montmorency that I recall these erroneous statements of his, but in order to enlighten and edify the House with respect to his pretended principles, which are nothing more or less than the excessive opinions of a servile and out-and-out partisan, more Ministerial than the Ministers themselves when his iriends are in power, and overbearing and intolerant in the extreme towards everything emanating from his adversaries. While on the Ministerial side, every- thing appeared to him under the most favorable light and the future of ihe province gave him no concern. Everything seemed to him legiti- mate — enormous increase of the public debt, insulhciency of the revenue, successive delicits — he found an excuse for all, just as to-day he finds imaginary grievances in every^ thing we do. The millions flew, but that did not cause him the slightest alarm, whilst he was spending them with his friends; consequently it was in his eyes the most natural thing in the world and he made intermin- able speeidres to demonstrate, by means of all the sophistries imagina))le, that the Opposition were wrong in expressing doubts as to the legiti- macy of such a policy. To make people believe that he was sincere, he even went so far as to cite authorities in support of his theories. Thus, in 1885 (see Debates, p. 1077) to support his views he quoted a passage from M. Leroy-Beau- lieu's treatise on the science of finance to show the fallacy of a policy of economy. Here is this passage from the French economist : "rndcr those oircniHstancos, tlio |)iib]io debt mav lie wmsidered us non-existent, beoiUKso the htate h-M an uviulal)le mvl realizable a.ssot whicli is suiwrlor to it. This good 1 ■■ 17 " f'urtMiio scslddiii Ii;i|iik;iih oxi'('|it 1(1 new ciniiitrit'H, wliii.-c tcrritury i.s not coiniilcUily occu* " jiicd or U!j;alii oxccpl tu cniiiilrk'H »\ liirli Imve ('(iiitracted (•nnsi^'",l'X).n,5 for the fiscal 'by;^£SSile't!^^rT*;f^fif:^t;.;^^^ receipts wni exceed M,e expenses 'ordinary receipts had reacL .^U,^^^^^^ On the 1st of Ap^il, the ' which left a suVplus ot\^7(l.\; «>=P^>''«es .SLM'.-..|,l.;:is;d'nf ^^fC^;;^' ''r '"''^f ^^ ='lto.ether diflerent necessity of tdvins up TS de ,1 o ld« f ,r/n^ r .5T '"'V'^" -''''^ ""•^^^•- t''^' Painf"! just heard, he ha.f to co.Kt tlie ri v fX /« ^'"'m'm' ^' ir"'-'=' *''^ «l*"^'' "« »'"ve in vain, to i.er8uade us to a mre • * "" ^'^'^^ "''"' *'^*^ '""^'^"*' " ''i^'' l^" 'adored, 20 " Iiistoad of tlio throo (iiiartors of a million hoped for and jiroinised, ilie Hon. Trcasnrer is fnrood to admit that his pretended surplus has dwiiidlt'd down very eonsidcraMy, and tliat, after everythiujj; luis been taken into account, it stanils reduced to $373,19().0o. Let us e.stal)lish the dillerence: Surplus promised .• :?750,0OO Amount calculated 87;),ll»6 Diminution $;}7(i,8(i4 " This shows a marked difference, a shortage of nearly four hundred thousand dollars. T cannot conceive how the hon. Treasurer coidd have made such a mistake in his esti- mates. When he promised u.s a surplus of three ijuarters of a million, wo were near the close of onr liscal year. It was then on the 14th June last and there only renuiined sixteen days to complete tlie year. " The Hon. Treasurer, who is at the fountain-heail iiself of all tlie ollicial information, should certainly have been in a position to estimate, within a few tliousand ilollars at all events, the result of the year's operations. That he should have made a mistake to the ex- tent, relatively enormous for a nudget like ours, of four hundred thousand dollars is proof against the reliability and accuracy of his forecasts, and is well calculated to induce the Ilouse to not accept those which ha has made for the future without some hesitation." Nothing" could be more unjust or i'utilo than this false interpretation of my words. But since my critic has stooped to such small means, I shall certainly not leave him his apparent advantage, because I deem it my duty to refute him on all points. It will be sufficient for me to cite textiuiUy and fully what I said on the head of this pretended surplus of three quarters of a million, to shov.' that my remarks could not possibly have the sense and Ijearing, which my hon. friend wishes us to see iu them at all costs. I expressed myself as follows last year in speaking of the fiscal year 1887-88, then current : " It will le readily understood that it is impo.ssiHe to indicate with i)recision the re- " suit of the operations of this fiscal year, before i^ has closed. An compared witli my " estimates, the real receipts and expenses show diflerenccs which are easily accounted " for. All that it is possible to do for the moment is to exandne a little the statement of " the receipts and payments to the Ist April and draw therefrom certain conclusions. " A glance at this statement sullices to show that the recei))ts will exceed the expenses '■ Ity a considerable anidunt. 1 speak of the ordinary ojierations. On the 1st April, '• the ordinary receijits had reached j-;!,0L'4,U81.()o, ami the ordinary expenses S'i.L'.ji^lKIO.H* " which left a Huriilus of !*7()0,OL'l.r)l, and it is probable that the surjihis at the end 'of the' " year will nut be materially diminished, if we realize all the receipts upon which we " count." ' That is all I said about the pretended surplus of S'7f>o,02l..')l. It dilTers A'ery consideral)]y from the language attributed to me bv the hon. member. It is only necessary to attentively read the first anil last phrases of the second paragraph to be satisfied that I did not intend to convey that the surplus would amount to $76,),021.r)l. "A glance at eg 21 thi« statoineuf indicates thai the rocoipts vnll exceed the expense. h„ a ron^derable amount. ' and lurthor on : •' It is pro]>nldc that tho .surplus a thc.ndot th.y.'ar willno.: b. muterially diminished, if vv. realize all the receipts upon which wo count." In these two phrases, two very distin<.th,no>. are in question; the apparent exc.-ss of receipts on the Ist April. wJu.h amounted to 8765.021.(;5, and the surplus at the end 01 the year Ihe hon. member is not serious wh-Mi he seeks to .place in my mouth statements 1 never made and never intended to maice. and, 11 he has closely studied the finances of the- province, he must ]>e wll aware that the surplus he accuses me of having- announced was not possib e, and that, in prediciing- a eonddecahte surplus, I could not have tX^^C ^^"^"'^" ^'^ '■''•''"''' •'^^^"^•^'^- ' --^^' ^--^ ^^^ ^_<^>" t^lit' 1st April, the ordinary expenses amounted to the sum of s,_..o.i,:w:,().14, and, according- to my estimates, includino- the supplemen- ^;; Vm'':^'!'' '\ ^^^^^ "^" '^'^ ^^^^"'^^^ expenditure should amount to ^to^Jn .''In' /'*';^^^?^*^"^y estimates, I counted upon a total of •^^i,U_0,,..2.so ol ordinary receipts, not includino- $40,000 re<^eived from the coinmon school fund over and above the $(=0,000 upon which I couim^d when 1 made my estimates, nor the $557,005.00, and a hun- dred thousand dollars of increase in other services, which I had not mduded m the same forecasts. These two amounts, making- together $o97.0...>.00, added to $3,020,522.S0. jrive a total of $:].Tls IsT^O Th^l was on the 1st April the amount in round figures of the receipts ui>on which I could count. Deduct from this amount the total of the ordinary expenses above mentioned, and the excess of rec-eipts was al>ou .S.J,S4,..00 in round figures. That was the sur,>lus upon whike in (his wav, and at that date 1 was well enough posted on the subject not to commit suc-h a ehildtsh blunder I ould tell a,>proximately enough .vhat would be le probabl.. balan,-e ol' receipts which remained to come in between the st April and th.> )!()th June, and (he figure of th,. expenditure was equally iamiliar to me from the estimates which 1 had given to the House and the credits voted. The Mouse and tlie country therefore will readily understand that, in predicting a considerable" surplus I .'ould not have been speaking- of three quarters of a million, and that the hon. member for Montmorency only seeks to mystify them by 22 imputing' to me lauii'iiuge which I never used and never possibly could have used. To a'aiu his end, he was compelled to only cite a jiart ot my words and to lenve aside what would have militated ag'ainst hiui- sell". This style oi" argunn'iit is one which honorable men in business, in iinance, prol'oundly disdain. The man, who should have recourse to these despicaljle means before such an aixdience. would be regarded Ity his colleagues as unworthy to sit with them, and would l)e at once set down as a dealer in bunoombj and a iinancial quack. TIIIKD MIS8TATEMi':NT. " UAKING UP THE PAST."' The hoii. membLM' is no more serious when he ])rt>tends that the application of my principles and of my way of calculating while in Opposition would produce the following result for the operations of the fiscal year 188T-SS : ExpoiLses of issT-ss f3,;'.:ir>,o;i2 To l)e iulded, the .siit'chil exj)eii,se.'r (iS( i,.");J:i Amount uf the exiwn.ses oflsss 84.015,o(.i4 Keceipts i;;j,7:)»,22S To ho (lodiictcil, for ( intiirio's iirreiir.s S Tii.hOii Fi>r iirrear.s of I'oimnorcial corporations -liln.iiiM) .-.00.000 3,'_':;s,-.'2S ;? ,S(i7,;;;io riu.«, sinkiiii.' fiuul of 1 jior cent, on S7,(iOO,(iOO 7(i (lOo This, .sinkiuu' fund, hahincc of the loan ofls74 :;(),s.">4 Deficit of 18S7-8S j; (»U,l!io "Tlus,"lie conchided, " w iiH the way the Ihrn. Tre.isurer cahuhited when lie was not re.'*pon.«iiileforthe liandlinu ofour linanic>H, and when hisnii>^.sion wa.sonl_\ toiriticize, .soth:ir, instead of the surplus of s;>7;!,l!Mi to which he referred, there would have heeu Ji deficit of J!dl,10(t in 1,SS7,S,S. Ho cannot complain if 1 turn a;.'ainst him and with so nnu-h ell'ect the arfzuniont.'? which he himself has placed iu my hands and of whiidi he unfairly made so great a use ajrainst hi.s predecessors. 1 have all the more riL.'ht to do so, hecau.se they enalile me to prove once more what little foundation there was for the financial criticisms of the Ihin. Treasurer when he was in Opposition. "1 Iiave only made the f >re.u'oint,' calculation to show how erroneous was tlie Hon. Treasurer's former niod(> of t'alculation." This extract from his criti.. ism reveals liis entire ]diin, showing that his great object is to ruin at all t;osts any reputation lor com- petency which I may have acquired during a long business c!>.reer. After this attempt to create the impressi(»n that, while in (Opposition, 23 i my fio-urcs and calculation, were only a tissue of errors and that my «ole aim was to m,« ead the Jlouse and country with regard to the real financud situation, he expects that it will be an easy task for him to demolish the value of my financial statement. lie knows very well however that I never indulgvd in the fanciful calculations he ascribes me bu his oljiect is to create the ],elief that formerly I had recourse to su..h despicable means, and to esta]>lisb that my antecedents are of a nature to lessen the confidence reposed in me l>y my colleag-ues. W .!^l' ''''^ ^^^;-^«^ary to rciute the puerile argument which "my hon. fiund bases on the oregoing. picture V I shall merely remind him in wrf ;: d"r^^ -''^'Tf ^^^'""^ in Opposition; were in ac!^ d AM,h the declarations ol his own friends, the Treasurers of the time nud to salisty himsdf on this head, he has onlv to turn to the sp'ee les at hese gentlemen and to mine. I may add that when I madl ho statements, whicli were fully corroborated by the ex-Treasurers th M^;:- in!"';' ""^''' '^ ^'"^^^■^^^' = ^'^'•^^^•^'' ^^ -- ^^^^ --^ -^^ i^z The best proof that my views were correct when I spoke of the deficits, which the ex-Treasurers were fon-ed to admit, s suppled by the tact hat to-day it is oflicially established, notwithstandinrL. artiulness which was then shown to conceal the truth, that, durino. t period I was m Opposition, there had accumulated deficits to the extend iipwai^s ol S3,^0a000 from 1875 to Ts8., l.sides a consolidaU^dtb 01 IM mi lions, .nid that when we came into otH.-e we found alividv existing in the shape of deficits in the ordinary budget and ot r ob H^ tions, a fioating debt of 4 millions m round figures or at the rate of a mi ifon a year Irom the date of the last loan. These are faCs that prove tha I was right in my past financial criticisms. Consequently. iV there be any one who should lear to stir u. the past, is it nol the ion. memb or Montmorency, who has talked black and white on the same question, and who. at the very time that his leaders acknowledged the existence ot deficits, cooly told the J louse that th re were no deficits between jvceipts and exp,^nses, whilst, according to the official declarations of IS own nends. they actually ranged from $:J00,O0O to .^5(30.000, and a floating debt was being piled up at the rate of a million a vear and up- \A arus. " * As regards my criticisms of the preceding adn.inistrations. thev are now lu^^torica and can at all times be verified by referring tj the //...s,.v/of 1884, 1S80, l88tJ and 1887. Let persons competent in such 24 niattors oxaniiiio thoin and tlicy will find that my calculations wovo only too weW loundcd. Jllithcr ihc lion. mcni1)or has not vuidcvstood them, wliich would not astonish inc. htM^msc they embrace financial oporations and statements ol' account wliich a mere theorist like liim cannot iiTa8[>; or he has succeeded in un(l<'rstandiim' them, and in that case he knowinii'ly misleads the House and lh<> country with respect to the real comdusions ol' tlrose speeches, whose object w^as to show in its true light a iinanciiil situation which was readily admitted, it is true, to be a straininl and a critical one. but which our i'riends of tin? Oi)i>osi- tion endeavored to rover tip by means oi' a system oi' erroneous state- ments, iearinii" to alarm the }niblic on the eve ol'the elections. Everyone remembers the lonii-w inded speeches in which the lion, member used to indulii'e at that time in order to in-ove what was not the case ; his I'riends found the sitiiation diilic'ult, critical — he found it excellent, llourishing' ; they admittecl di'ficits — he refused lo see any- thing of the kind. Yet it is the self same man who to d;iy d(mounce8 as heresies all my calculations, past and ]>resent, wliether in (Jpposition ov as Treasurer. This is the conscientious kind of criticism by which he pretends to have refuted my budget spe<'ch at the very same sitting, before he had liad time to evt>n read it or study it attentively, and with such a dis]>lay of haste in his reply as to rob his pretended refutation of all appearance of truth and serious study of the ([uestion A certain amotrnt of pretension is itermissible, but this goes beyond all bounds. But beibre dissectina" the figures used by him in his criticism, let us examine for a moment what was the financial state of the i)rovince on the 31st Janitary, issj, when we took clnirge of the administration — a retrospective tilance wliich Avill enable the House and the country to decide which of ns, my hon. fiiend or myseli', is the most w'orthy of credit. Here w as the financial situation at that date, according to the ollicial statements prepared by the departmental oilicers :— L" STATE 01-' THE CASH AC('OT\\T OX Till', 31sT .lANUAin', ISST. V 'ook the oaths of olfice on the liOth Jaiiuarv and assumed chara'O iepartments on the 81st. On entering the Treasury, 1 aslced Mr. Miiciuii, rhe a-sistaut-treasurer, for a statement of the cash, as well as 1." «»1 the i.n.hi.l.lr ivc.>ipts nnd (■xp,.H,s.'s lor 1 ho ivmaiucU'r ol' th.' cunviit liscMl y."iir. It was liniuhMl to mo shortly ari.'rw.rds. I disrovorcd th.ii all th,' ca^h Ave had on hand in ])aiik and available to lupot Ww ordinary expenses of the servire was the enormous sum of sl!i,24i).4!>. of wliirji sl.-i,.-i4(».S(i were in the Union Jjank and s;!,(i;i9.(;3 in the Eastern Town- ships Bank. On (ho other hand. I also asrertained that, on the :)lst January, the (lov.'rnment a.vonnt with the ^[onlreal l]ank had hrm overdrawn to the extent of .^i' i.-Hlso.", ; ihai ;,l (h>' Tr-asurv oHLe<> thrav, Avere oulstandinn- warrants to the amount of $ 14.832.8S. and" an order-in- eouneil authorizino- the payment of i^.-J.ljKiO.OO to the Ihiie des Chalrurs ]^iilw:,y on account of its subsidy, that is to say. that tliere were i?71,40U.98 worth of claims due and payable and only siji 10.240.40 avail- aide to meet them with, leaving- a shorta^-e of >i.52,l(i0.44. The outlook for tlie three monllis (>omprised between the 1st of February and the 1st Mav was even still more discouran-inii' than the state of the cash, ^ry predecessor had drawn and spciu all that ])orti..n of the Federal subsidy payable in the month of .lanuary. Th(> other heavy items of revenue, the receipt- iVom licenses and ' timber du s, would only come in in IMayand June, so that I'or those three months we had comparatively no revenue to count upon. On the other haiid. the pay- ments to be made during- those same moiiths were heavy. F.esides th.' additional expense incurred durinu- the session, there was the half- yearly int.'rest service on a laro-c part of our consolidated de])t. which had to be remitted before May, as this interest falls due in Eng-hmd on the 1st M.'iy. Lastly, the assistant-treasurer informed me that loi- those three months, it would be necessarv to lnak(^ provision ai4n. 000.40. indu.ling- the A10,240.4i» cash ou hand and avail- able on tlxe .'list January, 1887. Ill my hudu-et spcvh of 18ST. 1 gave in detail these tables of receipts and paym -nts prepared by the olii.-ers of mv di>partment and shoAving that the payments from the 31sf Januarv to the 1st May. I,s,s7. would amount to >; i,040,4o!i.08, and the receipts to come in for the same period to $411,000.40. They can be verified on reference to the JJ,anl of 1887, p. 426. To cover the shortage, there Avas no other resource left l)ut a loan. My hon. predecessor so well understood (his that, a few days Indbre the 20 rosiu'iirttion of the TJoss Ooverniuout, he iiistrxicted Mr. Macliiu to pre- pare ail order-in-eouncil to authorize him to burrow >i2.")0,0(i0. This orcler-iu-eoiiiicil woiikl have ix-eii passed and the loan would have been contracted by the hon. membtM' tor Sherbrooke, if the resiiiiiation of the Eoss Government and the defeat of the Clovernment of the hon. member for Montcalm had not intervened to piit an end to the transaction. It is not amiss to note that at the time tlie hon. mem])er for Sher- brooke Wiis tlnis preparina' to ])orro\v !5-'>0,000. lie bad lakeu in the part of the Federal subsidy payal)le in tlic month of January, ihat is to say, that he had just received from the Federnl Government a siam ot 8-">tl,- OS(;.40. Gut of this receipt, he h:id re])aid, on account of |;ToO,UnO of ti'mporary loans at the date of June oOth, lcS^^O, a sum of !s;2o0.0()0, as the bank was unwilliui>- to t'ontinuc this loan at 4J per cent., and it was iindou])tedly to replace these $250,000 that he wanted to ])orrow a simi- lar amount. • tSuch was the state of the cash when we took othce. What aston- ishes me is that the friends of the Government who left us such a sorry legacy shoiild have the couragv to accuse us of squandering, nay, even of plunderinii', when all wc found after them was an empty chest. OPEUATTONS .\ND llESUI/rs Ol'' THI-: FISCAL YEAR 188(5-87. Now, lei us brielly recall what were the operations and results of the fiscal vi'ur ended on the 80th June, ISST. Here is what I said on th(> sul)ject in my })udget speech of 1887 : " I'or tliiw fistal yrar, thf Ikiii. ini'iiilicr for Slierlimoke riilciilattHl liis ret'oipts at ir^lS.OOll,- filiL'.SO, and tilt' apprupriatidiis lie as^ki'd the Uduse to vote t(j covor tin; tutal expenses a'_'grej,'ateil a sum ei' ^"i,-is;j,i.''.t:).."i."i. " Inmi the Mdtli -Inne, lsS(i, to the :il.st .Tannary, 1SS7, the receijto were S2,0!i;!,L']:!.'Jl ; hut tills tsiitn includes ir7»i,7S(i.'ii; of receipt.s n(.t euvered by his c.stiniate.s, leaving:, as re- ceipts from the sources dt' revenue njion wliich he cdimted' only S'.',ul2,'.isS,()i> of (irdinary receijits. In any i-Anif, iA' tlie snni of s^::,(i',i;!,i;2'J.S(i at which my "jiredecessor e.-tinnited the receipts of the jiresent year, llien^ wen; still to eonie in irl' "S(i,ii:>4.1 1 betweiMi the 1st I'eliruary and the lidth June, lsS7. l^it his anticipations will not be n^alized. After a careful study and revision of the receijits ujiou which we can eoiint for the tive months in hts, wliik^ ].nM hiiimn^r hcl(,rc tho JIoiisi! that the :ivc>n in tii.- tahlc, the balance of ,,av- nicuts for this hscal year, that is to say, the expenses to ho incnrre.l from the .,lt,t January to the linth June, ]S«7, amounts t :7;l,194,i;(tO.;i;j " We miiHt (Icluct from this sum the crclit Vote.l for (he sinkintr fiin.l rendered useless iiy the le-islation of last session, or .' ;',0.s:)4.(i7 " IxMivinir 8l,l();;,4:l.').()(l '• Put the amount of the supiilementary estimate must he a•! as eimmerated in the table prepared by the Treasury otlieers. ""' ' ' ' " To meet these expenses, we only have the balance of the receipts for tli.use live months as estimated by the Treasury otlieers. in the same table '"""^'>' ' .; 05t;,!IS.Ul ,. ... .. "Tims leavini.' a shortage of Si l"i) 77'» is lor which no provision whatever was made in my predecessor's budget. ' ' " ' " riiis Is iiow the oi)erations of the present tiscal year are froinir to come out. ,.r.i,tl 9^" w'""r ''■*'*"*'' ?r ^''''^ ^^"'"•'"^^"■•* deficit, this h.'avy excess of payments over re- 00 j,ts? We have no other resort but a loan. On the 8Kst Januarv last the fi^oire of our Sulwi ;'r;f,uril'Vf'''''; ^''"'■'''n^ "'^'^''"^' ^^''''•'' '""^^ •'« '-'tracted t^^cove; Ue 11 f i, e fr , ' ' "■-".'•'■r 'il '"' ^^'is'''' to sl,,ioo,77!..l-_', tiiat is t , .sav. that, at the tempomrrWn^^^^^ ■''""'"'' '"''' "'"'^'"'' "'*■'' '"""•-"' an,! a half in' the shape of " Let us now turn to the tloatinir debt : "Hednct from the totaliiabilities the sls,l,v,,ni:].;;;<, remainin- nnpaid on the five eon- so < lated loans and the .--(.0,t,(M) of the gueb..e Court House Iomi, and the result .nves us the f .Liures ol the lloating ,l.d,t, which, on the IMst .lanuarv, 1,SS7, amounted b> -:;.7SS 4!j4 I "' .I'.iJl'.r r''""''"""'J^'""^ amount are clear and indisputable. The tirst'of them iii- a^gSaleifi^;iS:;>7!'sa^ ""•' ''"■ "-"^^ '•'""'^' ^^""■" '^'^'^^ — '^ - ^'- IJeposit, ('atholic Committee of the Council of Public Instruction s n <)4S 48 ])ep.,sit, Protestant Committee of the Council of Public listruction " -^s'im (lO leachers' Pension Fund iTvi-rV Marriatre Licenses •;.•. ^%'/, /• Deposits f,d veil as .security for public olliees ...". Jl'-, w', ,,„ 1 roceeds of insurance on old Parliament Hou.se .'.".'.'.'!!'.!!'.'.'.'.!!!!.".'.';.".'.'! s-^jii.-j OO f2l'l»,2L'7 67 1 likt» to rt'i'iill tliis pdvlion ol' my jmst d(>t'l;irnti(>iis, in the first placo, ))('crtiis(.^ it iii>i'tr.ivs in its trui' colors tlic luihu'i' ol' tlic onerous in- heriliinco which was hcfjucathi'd lo us l»y our i-ircth-ri'ssors and. in th'' next, hi'caiisr ii I'urni.shi's nic with the occasion I'ur a dinTcssion to cuci- U'cticalK repel till' uni'aircst and most uni'ouudcd. perhaps, ol' ;.!! the hon. nicnd)cr i'or Montnior< iicy'.s niisrcprcscnlations. My lion, ii'icnd has souii'ht lo make a !j,-reat deal nut ol'it and has tried to ascribe to nie a conteniptihle role, !>, 'cause, said he, in 1>(S7 I eslal>lished a shortay-e of $1, I2(i.77'-MS. while in isss. in rentlerini^' an account ol' the iiscal year 1880 -ST. 1 ainiounced a delicil of s;J24,00O. I therefore denounce vvilii all my strenu'th — and I Ixdieve that all right-thinking men will join me in denouncinu' — the intrt)duction of sui-h prnceedinu's into the discussion of the public interests. If the inemliers of this House are tn he hereafti'V exposed to the annoyance of seeing their own colleagues mak(! it a r«'uii- lar uame to knowinii'ly misrepresent their ideas simply for the wicked ph'asure of imposiiiti' u]">on the credulity of the iniinl'oniied in such matters, then 1 say that it is an attempt to lower the dignity of our debates. > 1 will not do the hon. memlier for Montmorency the injtistici^ of t>elie\iiig him incapable of makinu' a distinction between a eah'ulation embracing the au'gregatc of the i^ayments and reci'ipts of a year from all sources and one limited to the ordiiuu'y budget. When I spoke of a deiu-it of s;!24,0(K) for IsSil-ST. I indicated the dill'erence betwi'cn the ordinary receipts and exp>nises of that year; ami ^\ hen I stated that my predei'essor had left me a legacy cd" liabilities to mejt and payments to make exceeding l)y more than a million of di>llars the total resourct's he liail akso left me, it seem to nu' that I expressed niysell' ch'arh'enouii'h to spare me from so treacherous and puerile a charge of self-contradiction. I woiild never havi' l)eliev*'d that a nnm, who asjnres to be regartled as the financial oracle of his party, would havi' coiulescended to such a jday upon words and to take advantage, as one of the strong jioints of his argument, ol the use I had made of the w'ord ih'firil or slior/'i<:^e as applied to the totality of the opiU-ations of a iiscal year. r>;'twcen busi- ness men, such confusions of idi'as as those of my hon. friend are un- heard of; they do not indulge in such childishness. AVith men versed in Inisiness, no (Muifnsion of the kind is possible and the man, who. like the member for ^Montmorency, should see or tend to si'e a contradi(;tion in it, w^ould be simply laughed at. pre- «it Haviiii:' thnn disposed ol" this misstatonu'iit cf llif hon. uvnth'inaii, I now rt'sumt> tht> cxamiinvtiou of tho sitv\atiou with wliich vvf I'ouiid ourselves I'aco to Iiku' on coiuiny into iiower : " On tlu' ;!].st Jaiiiiiiry, 1SS7, l.lio aiuoiiiit of tlio fl.)atiiii: debt. }icrft>ctlv ck'ur mid inc.ii- ti'stal>l(', was .SJ,7SS,4:!I.;{L'. Aiii.nt; H'c lialiilitii'.s Inrinin;,' tliis a<.'i.'rfi:a"tc, tlicro an- sipiiii' wliicii will lie only payalil(> in a ivrtain tiin.', but the Imlk oftlKiin aro pavubU' l.i'twccn tliin and the cIuho ol llu> prcsiMit. liscal year. 'i'li(> li.st of those* liabilities oiitstandin<' or nnitnr- in^' lu'twoon thin and the end of the curnMit vear forms a sum of fil.SlKj L'(t;i.4'>s->", Ki Balance of claim.s for con.strnction of (^ M. (). if (). Railway 11 oolt tKi Loss on dejxpsit in Kxclian^e Uank to be reimbursed out of the price of sale'cif the ci(iod in the followin;^' statement, l)v which it will be .seen that there rennnned but S">00,L'80.54 of available assets to extinguish the floating debt of :fo,7SS 4:!4.i;2 that IS to say, the following amounts : — ' Sjwcial deposit in Jacques Cartier Raidi 8100 000 00 Cash on hand on :Ust January, 1SS7 ll!47;i 10 rroj)erty set apart for the reimlnirsenient of the cost of tin; .laccines Cartier Normal School ■ l.",s;!4s (f .Sundry loans and advances .."!!..!...."...!!!".'.! ss!-.'71 40 Interest due by Ontario on school fund ]i.(i (loo 00 Montreal's subscription towards Hull bridire ."jO^ooo 00 Due by Montreal for expropriations between Hochelaga and Dalhuusie square 7l'!is8 02 $.")()0,L'S0 ")4 "Among the asfsets just enumerated, there are several sums wliose realization is more than doubtful. Among such may be included the money loaned tu diil'erent parties, as lollows: — Loan for seed grain made to certain nmnicipalities of Charlevoix and Chicou- t'nii ^._)-, (mi ^(^) Loan to the North Shore Turnpike Tru.st to repair DiTohester bridu'e 15,000 00 Loan to Trappist Fathers ! lo'OOO On Total : i;oO,(i4(i 40 " I very much doubt whether we can ever collect tliese debts. It is next to impossible for the turnpike trust to repay the S1.'),000 they owe us, and I am inclined to look upon the advance made to the TrappLst Fathers more as an act of benevolence than a financial trans- action. As for the $2.3,040 40 due by the municipalities of Chicoutimi and Charlevoix, it is a clear enough asset, seeing that it is seenired by their bonds; but when we note wliat has been done within two or tlirec years past with the indebtedness to the municipal loan fund 80 and wlioii we mnsidiT tin- Icinrtli of tinu^ tliis dolit has liccii iliu-, twidvo or llftoiMi yours, I liclicxc it iM iiiit ri'a.sipiial)l(i tn base iiiiy scriniiM liopo on ilii' easy rctiirn of llu'St^ ;:^l'"i,iHii. t(» to till' 'Ircartiiry," " Till' cxplaiiaticiiis I liavi' jnst ^.'ivcii witli n'spoct tn s(>\oral()f tic itciiiH {i(i.'J.S(i.;)-l wiirtli hI'msscIs, wliicli we liavo tn nu'i-t our lloat'mi; dclit, slmw clearly ciiniiirli that it wuiild 111' I'pixirti'd t.'tlii' most cli'iiKMitary riili's of {inidi'iici' tn ri'ly ii|),iii n-ali/iiij? iiinrr than sl"ii,iiiMi. As rc^'ardM tin' llnatiiiu' dfht ainl the assi't.s \vi' jmiswi'sm to pay it nil", we thtTi'lnri' lind mirsrl' I's »cMit'niiitnd with tin' tulliiwiuu' situation: Ainoiiiit of incontt'stihlo liahiliticH loriniii^' tlin lloatiiin dohtoii tlio l?lst.Ttimi- ary, l.s,>7 ;<3,788,4:U ;;2 Amount iifassi'ts roali/.aMi> to oxtiniitiish or li(iiiiilati' this (loatiu'j debt 4(Ht,(MHi (lO Nft amount of thf lloatin;^ di-lit on ilu' ;>lsl .lauuary, ISs? !?a,S)s8,4;J4 32 " Over and ahovi' thi'so iiii'onti'stahlo liabilitii's, thi'ri' was a^'ainst tho < iovcrnmi'nt a host00 claim of the .Iac(|ueH CartiiT Jiank, etc In any case, these claims, of which I (.'ave the details in my Innh/et Sinsech of 1.SS7 (see JlilmUn of 1887, p. 443), unionnled to the sum of $4,5;>4,4il7.t>(i. " Mr. S])eaker, I am particular in j.'iviu>{ all these details in order to make the situation perfectly clear to thi' Houm'; hut it will he easily understood that, in the interest of the province, it is hetter I should express no opinion on auv of these disputed claims. .Ml I can say is that these claims have been put in, that the majority of them have been carried I'e- fore the courts, atid that, if we are condemned to pay only :'.0 ]ier <'t'nt. of them, it will add .■^l, :'iiS7." As all iht' lon^goiiio- ♦•xtrarts and labli's arc olHcial, their arciirary raiinot ho qucstioiu'tl. Thi'reforo, a.s I i'oinul it on tho ;]lst .Taiiuary, 1SS7, the liiiaueial situation may ])e siiniiiied up as I'ollows : — !Sil!'.<>'>0 cash on hand to meet |71,000 of immediate ohlij^ations. l)e- sides an overdvnwal of >;■-■"),'••"> in our ac(K)iint at the Ijank of Montreal ; 81.04i»,4'V.i.!i:} of payments to make within the next thret> month.s and a i^rol)ahli' receipt of only i^-lll, ()!•(>. 4'.t to meet them, that is to say, a shorlaii'c of n(;;;s. :}(;(>. 44 IVom the 31st January to the 1st May ; • In all. a sliortage of oiu' million bet vv eon the payment.s to be made and the availal)lc receipts from the ;?Lst .lanuary to the end of the fiscal year ; A iloatini^- debt of about 5^4,000,000, nearly one-half of which was payable within tho year, besides 84,534, i97 of disputed claims. This was tho true finant;ial situation on the 31st January, 1887, and the hon. member for Montmorency consequently only wastes his time and labor when he devotes himself to malicious and disloyal criticism 31 of my fali'ulatiouH whon I wos in Opposition ; I answiT by conlVonting him wiih the precarious condition of the fuuvnces as they were left to nn by our predecessors, Avhen all his hypothetic scalloiding will not stand for an instant in tlie face of such incontrovertil)le facts. Judge tlien of the value of the insidious insinuations which he has used neiiinst me merely with the view of injurini-' in the i)ul)lic mind my reinitation as a busi- ness man and ray cump^^tency in matters of liuance I 1)0- m1; uths THE h'EAL DEFKMT OF iss7_ss ACCOliDIXG TO MK. DES- JAKDIXS TllEOKY. The emphasis and self-sulliciency with which my hon. friend took lip this sul)ject were truly superb: " I shall iii)\\ " — said In'— " cali'iiiat*? tlie triii' result of tin' fmaiicial oiicratiniis of tho j)roviiu'c, (liiriiit: tin' liscal yi-ar ciidi'd uii tin' iMitii .lime last, tnr whicli the iiri'scnt Miin>-:try art' alniu' n'Spunsiiilc, and I shall dos'i in tho saiin* \va.\ I havi' always ralrnlatcd when I ik'l'ciidrd the ailininislralidii nf the iin'ci'iliin: (uixcniiiunits a).'aiiist tin' attarks nf tin- Hun. Treasurer. In liiiamaal, as in nther matters, I have nut chanired my ]iriu(i)i!es in ))assiii'_' I'niin the ri^'ht to the lelt dt the Speaker. In oppc sitioii, 1 shall ealeidato as I did when my friends were in power." I have already exi)lained the method he followed when he was a Ministerialist ; at that time he included the trusts aiul rt^iurids of every nature among the ordinary receipts and classed as extraordinary expen- diture the special sums disbursed to meet certain services, outside of the category of those that figure aninuilly as ordinary "urrent expenses. I haA'e also eifectively disiH)sed. I think, of his malicious insinuations with regard to my calculations while in Opposition, so that it only remains for me now to show "p the exaggeration of his erroneoiis figures and the falseness of his conclusions relative to (he present Grovernment's finan- cial administration. I shall give the Hoirse and the electorate an opportunity to judge whether his proceedings of to-day are the same as he boasts they were formerly ; we will at last be able to estimate at its proper value the i'ompetency of this learned iinancjer. who publicly pays himself the modest compliment of being the only mail conversant with the real linancial situation, and graciously awards to himself a diplonui for his infallibility and matlusmatical precision. We shall also once for all bo able to ascertain for ourselves the frankness and loyalty of his criticism and to appreciate leisiiiely the value of his maxims, of his financial principles, and of his methods of reasoning. 82 I coutiuiie to cite this part of his criticism iu order to ])etter demon- strate its i'utility : "Tho Ilidi. Treasurer tdlil IIS that the revenue of ISST-SS amounted to Sn,7as,2nS.-_'!>. But lie ineUiiles iu tlii.-: amount t»\( iu.jxirtant extraonlinary receijits — that of tlie S100,(iOU received from tlie ■.vernment of the iirovincc of Ontario for arrears of interest on tiie com- mon scliool fund and tliat of STjoS.OOd from tlie taxes on commercial corporations. Of tlic sum received from Ontario, only i?oU,(MiO and of the receipt from the taxes on commercial corporations uidy Sl-S,n(i() can be considered as regular revenue from those sources during the tiscal year 1SS7-SS. "The Hon. Treasurer manafies to nnike up a snrjilus only liy strikint: off from the expenses simdry disbursements to the amount of i;l87,7<>7.7(), which in reality are oidy ordinary exi>enses, that should be paid out of the ordinary and re<;idar revenue of the year. Tliis moile of calculation is wronj; and will soon lead the Hon. Treasurer into nushaps, which will be very prejudicial to the interests of the province." That, certainly, is very diti'ereut language from what he held as a Ministerialist. To make out the existence of a deficit, he lays it down as an absolute principle that I must take as a receipt, from the amount.s entered ns arrears, just the sum it pleases him to allow me; one cent more would not siiit his purpose, because it would disturl) and confuse his iigixres and completely spoil his aim, which is to change a r(»al surplus into an imaginary delicit. He overlooks in all this an important detail, which is that, in my estimates of the previous year, I had dis- tinctly counted, as an ordinary receipt, upon a sum of !|»)0,000 of arrears from the common school fund. It suits him, however, to allow me onlv S.")O,0O0 — up(m what principle, I iiijiore, inasmuch as that, when I sub- mitted to the Mouse my estimates of receipts for the fiscal year lS87-!^8. he made no o))jectiou whatever to my putting down there that sum as an ordinary receipt. Of the ^558.000 collected from the taxes on commercial corporations, he only deigns to allow me $128,000— in virtue of what arbitrary law, I am utterly at a loss to say, seeing that, when he sat on the Ministerial side, he never felt or showed the slighest hesitation to calculate as ordinary receipts the trusts, refunds, and sums derived from the muni- cipal loan fund. To-day that he is in Opposition, his ligures are quite different from those he used as a Miiiisterialist ; he no longer thinks of crediting the ordinary receipts with the same items, though, according to the public accounts for ] 887-88, where they figure as special receipts, they amounted to the sum of ;«; 1-20,000, and would, according to his former mode vl' countin strikes from the <"Xtraordinary expenditure to add to the ordinary expenses. A good thing to note by the way is his admis- sion tliat wc have collected an amount ol" ip3,7?]M,22S.?]ti. no part of which is composed of sums on account ot capital, but well aiul truly oi' re- ceipts legitimately recognized as not belonging to this hut category. Un. DESJAUDINS' DKFICIT, ^'ow, let lis turn to hi;; proposition assertinu' that T have charged extraordinary recei.)ts to the ordinary opi'ratiohs of the year and counted as exlraordinarv OxpiOiditure payments imputable to the ordinary budget, so as to conc.'al a real deficit of §314,000 instead of the surplus of !i^:j'7-'>,000 which I have announced. Hear the ( racle ! Saicl ht>:-"I(.st:iMisli asfullow.s, aiul a.ceraing to tlie true i)riiu'i|)les oC linanr>. the rf'Hull, (it tho (iiH'rati.iii.s <.riSS7-f-:S: ' , i'"^ Koicipts iif ISST-'^S ,.i'; -IS -lom . ,) Kxtraeniiiiary rcn'iiits tn 111' ■U'lluck'il : •>,.•!' ,— I'Tuiii tl.o jiniviuce (if'Oiitariii >: 70(1(10 0,) From the t'oiiiiiiorcial corporations 4:;oOn(i eo .")( 1(1,0(1(1 00 I?('al ordinary roveiuio of issT-.'iS -^"'is •'•>« •,'» KxiKMi.scs ." !!!'.!!."....".". s;.i(;,"^o;)''';(> " '"" To lo ail.lcd : tlu) t.illow iii-- .sponal itoms vliicli arc in reality only' ordinarv ('X|i(Mif--i\s : Mrfiili Normal S, i.ool o.MO 00 Arthal.aska ( oii.t ilousi' OOOo OO .MoiitroaM ourt House L'l ■!■'•' ,'<;! IltMtintr apjiaratus, <'ourt IIoil-'cs, new di.^itrirt.s ~()!(i("(~i 111) Cirrnit <',i(irt, Kamonrasl^;', .Vi" s(i(i l'> Ordinary real revenue of Issr-SS ..! ':; ";;,s'l|",s :is) „ ^'■•"•■'t ^v^TT^v^r 34 TT«'re we have a man who pridos himself on havina' discovered the absolute rale, the prceise measuri>, whiih shonUl be followed in such cases ; it is in virtne of this a])solute rnle that he manaii'es to transform a surplus of !$3T-j,1!>6.03 into a deficit of !i?814.r)71.7-). It is (>vident that, in strikinsi' otf the trilling amount of ^ioOO.flOO and in addinu' on the other side to the ordinary expenditure a sum of §18T.T<>7.Ti), wliiih leuitiniat«'ly belongs to tlu' extraordinary budget, such an astounding mode of casting up accoiints juust lU'cessarily jtro- ducc a deficit — at least on ]niper. This is elementary. It is certainly n'0 l)eyond the rttles of simple addition and stibtraction. Thus, on the arrears for interest on the common school i'und in the hands of the Ontario (lovernmeiit. and the receipt from the taxes on commercial cor\iorations, amounting tog''ther to $»J.)S, .■;'.(."}. 00, he only allows me SloS.oOo.itO : while 1 ap})ropriate 8->^5.1 97.00, and put down ihi' balance of !<-)T:!.llH].O0 as a suridtis to be used to cover an ecjual amonnt of the extraordinary expt'iiditure. Th(> whole dilTerence l)e- iwcen tis therefore is only in reality one of s1l>0,S()4.00. In other words. I deduct from the tn-dinary ri-ccipts in the form of suri)lus a sum ol' s;17:;,lon which I counted to meet the expenses of the fiscal year 1S«7-'^S and to which he took not the sliu-htest exception at the time :* I) 'duct then the.se s^.lO.dOO from the !i!;lJ(;,,S04, and there remains of the conuuorcial tax only a balance of |!ti),.S04 that I have appropriated over 85 and above tho sum that ln" allows me. Have 1 not really a right, at lea.st to the Innielit olthis moderate sum on ac(nmnt of the additional labor and eXi)ense entailrd upon us by the prompt collection of these arrears? IMoreover, did not the increase in the interest service, owino- to their liabilities which we were oblig-ed to settle, entitle me to appropriate an e(|ual amount of arrears to cover this increase in interest due to their own arrears Y However, all this is only intended I'or the purposes of discussion and to show the absurdity of the hou. member's pretension, because I consider I am fully in my right in carrying to the ordinary receipts the amounts reeeived from both these sources, for the yood reason that had these arrears been collected in the i roper time and place, the sum total of the liabilities bequeathed to us ])y our predecessors would have been smaller — that's all. This is only a waste of lime over idle delinitions, for after all the !l» esult conu^s to the same, whatever be the method adopted, as I .s tall further demonstrate in a moment. Bi'fore closing this refutation, it is riaht that I shotild also dispose of tlie objection raised by mv hou. friend relative to the sum of !$187.7(!7.T0. which he ])ersists in regardin"- as ordinary expenses. Let us therei'ore examine each of the items which he eooly transfers from the extraordinary to the ordinary expenses : — Among these expenses figiire the following: l^iilargement of the Court House, Montreal 8-1,42;] 03 Iron bridges in municipalities 2" OOO 00 l-ixploratii.-ns in Dorchester, i\rc j,. ,)0() qq >!•")(!, 42a 0:3 It j,s nu[in.„si])le that this sum should liuure as an ordinary expendi- ture. l„-!ms it i: included in the ifrnis to be covered by the loan authorized in IMST; so that, if the hon. membi-r persists in i)lacing it among the ordinary expenses, he should carry an equal sum from the prt^-eeds of the loan to the credit of the ordinarv receipts, Protestant Insane Asylum ijilO.OOO 00 Tl.i^ is not at all an expenditure, but an advance to be repaid out of the ].,i. 'cds of the Ledue farm, and, in jwint of fact, already partly reimijiui' .!. 86 Codifioation of thv laws s4r),000 00 llore. certuinly, is an oxceptional cxinniditiivc, which does not orcnr evt'i'v yoav. and which thereibre must be eliminated IVom the ordinary expenses. Then come the arrears oi" the Crown f.ands De]>artment due l)y our predecessors and amountinff to ^'kkS i-t.!):). This lia1)ility, which is not ours, can at the most be set aarainst the arrears collected during the course of this iiscal year, and paid off out of this fund. In classing" it as an ordinary expenditure, my hon. friend should therefore carry an equal sum to the cnvdit of the ordinary receipts and deduct a similar amount from the !^43(KO(MI of arrears of receipts which he takes awr.y from me. The Ibllowing items are the oui;, ^: remaining to ])e classed : — McGill Normal School >$2.o(iO 00 Court House, Arthabaska ,),onO 'lO Court Houses. n»'\v districts G.dOo 00 Circuit Court. Kamouraska O.OOU nO .5!li>,o(iO no These payments cannot be regarded as ordinary expenses, inasmuch as th(>y have l)een made, not for simple repairs, but for improvements which will eiiliance the real value of the t)uildinus in tjuestion. As such. th(n' are certainly amonu' tiie most legitimate of our expenditures on capital acconnt and, accordinu' to the true principles of linance so loudly and so ol'ten appealed to by tlie member for ^lontmorencv, ihey should be ranked as an extraordinary ex[)endiiure. llow scru])r\lous and aaxious aboxtt the classification of ciMtain expenses my hon. fiieml lias sitddenly beeome ! AVhy was he nut as much so when he rvas a Ministerialist. n.a\- 1 ask .' Correcth speakinjr. all these expen iitures for the iniprovnoeut of the ,iuMic property ar(> mucli moi*^ legitimately ',>xi)enses on capitr.l .'cconiir than what wi' |)ay out in tin' shape of subsidies to railway companies. l)ecause the forun r represent so much real value in the hand.v >; the (lovemment and are charges whicli should be classed as extraordinarv, while the rail- way subsidies rei)resent no direct vahae to the (Jovernnu'nt. In running into debt for the one, we remain with somethin'j' tanuil)le and convertible ' 87 into money, wliiK- IVoin the other we get iiothincr directly except getting' into d^bt to iiid I he developnn-nt of a liulway system \vhi(,'h is not our own property, and from whieh we derive no direct benefit, but merely an indirect one. Thus, therefore, tln> hon. member's theory relative to these frilST.TDT.T'i is not tena})le. It is really $1 ST, 707. 7(5 which should 1),? eliminated I'rom the ordinary and ranked among the extraordinarv ex- penses. It is therelbre so much to be struck from his pretended deUcit of !i!:]14.')71.78, ther(>by reducing that deficit to !j!l2fi,S04. I have already shown that this sum must also disappear from the deficit, which thus stands wiped out altogether, and my surplus of s:17o.lliif.,o52,800 12 Deficit $ :]14.."i7l 7:; ■ 3S Now, let us take his own fiuuros: — Tho (l.Mu-il. ho says, is $314,571 IS rane l:] ol'th*' iniblic aixount.s. tho total of the spocial or oxtraordinary oxponsosis >^()80.r):?-2 Ti", Less insurauce reoovered on tho Uuildiiig-s.. -'.LMtir) 00 Special expenses |t34T,7G7 7»i Dednol : special expenses, which, accord- ing- to the hon. inomber's pretensions, I'orni part oi' his deficit 1^7,707 7(5 ii<4(!0.oon 00 This pretended doiicit of s;ol4.o7l.7:l added to these special expenses, forms a total ,^ /*'' ^774,o7l 73 Deduct : receipts which ho strikes oH". sr)00,000 00 Extraordinary recoi])t derived I'roni the scttloniont with Montreal 02.40.') 1,8 ;-,,;o_4f);3 |g balance of special expenses >i212.070 oo Thus, with tho product of our ro.^-ipts, we not only ni.>t all the ordinary expenses, but also the greati-r part of the speeiaj expenses, the bulk of which was to bt^ covered l)y the hist loan. Let us now take niv liy'ures : ^'pecial or extranditur.' sanctioned la.si session. As can be seen by the above statements, the result of the two operations comes to the same, iinancially speaking. 89 Here is what would havo btHMi the result oi" the operations of tho fiscal year in qui'stion according to the member for Moiitmoreney's eal- culations, when he was a Ministerialist : Iteceipts ■<'•],! '■)'<. •22>^ ■'.'.) Add trust funds and special receipts 8i»,!t:2t! 41 $:5,Sl!i.l-,J iO Amount of ordinary expenses •],•■.'(!-"),( I.J2 ;l(! Difference over ik4.')4 ]2'2 -14 Redemption of bonds s; .3)i,,s4.j 00 Increase in the interest servi(;e as i-ompared Avith 188() 125,9.jO 00 Total amount ^OoO/.']? i' Sach would be the surplus according to his manipulation of Jigiires ^vhen he was a Ministerialist. It will thus be seen from the foreg-oiug' statements that the same result is reached, no matter 'what may be the system of ligurini>' pur- sued. Whether tlie hon. member taki's away from the receijits a sum of SoOO,000 or whether he displaces ^187. TUT. TU on the otht-r sidi' to form a deficit where none really exists, it is after all only a mere displacement of figures which amottnts to nothing, ])ccause either way ihe result is tin* same. The only motive which actuates him i.s knowingly or otherwise lo mislead the House and the country as to the true resiilt of the favor- able operations of the fiscal year 1887-8S. Let him make all the trans- positions he wishes, he cannot destroy the hard fact that our receii)ts considi'rably exceed, d the ordinary expenditure. He may dvAW an imaginary line as regards the classification of the receipts and expenses, if he pleases. l)ut it is only a question of terms, becaiise in reality the result is invariably the same. He cannot get over the fact that we received a sum of ^o, 7:58,2:^8. S'.t, wdiich was sufficient to cover not only the ordinary expendittire but the largest part of the special expenses, that, without this additional iiun-ease of receipts, w'oiild have pro- portionately increased our debt. 40 I !n'lif\t' tlnit I lunc now suliiciciilly dealt willi tliis dclicit of tlic lion. iiiiiiil»i'r'.s (•(nHULt't' to ishow Ihat liis critirisin »)l' this pal of my iinancial stnteiiii'iit is not serious and that ii is woithlcss hot li in hiu'ir and I'ait. It is only too ohvious tliat, in all this co-ordination oi' liu'uri's. ht^> has had hnt one ol>jt'ri in view: to my^'tii'y rather than to t'liliu'hten the electors and to mislead thi-m with rcspi'ct to the true result ol' the operatifins ol' this liscal year. (hi the subject ol" the si)!'cial expenditure, here is ^vhat he said: " It till' Hon. Tn-a.-^tiror insists tli;',t tlio.sc spciMal oxpenMo.s iln nut lii-hinLr In tlie (inlinary cxjicndituro and slinuld not lie includtHl in tin- payMii'nts ui' tlio year wlion nialvuijj; nji tlu- staU'MKMil (if tlie yoar'.s njicrations, I w ill answer liiin that liis iiroteiisiun cannot ho sns- taini'd. and niorfiver, that it \vili nut imiirovo iiis iiositi(pn. 'ilu'ro slionll he no ilhision on this head. It a hnduet dt cxinMisos ofa sjuHial nature and on i-aiiital acconnt lit' created in a {lernianent way, tliero are oiUy two ways to provido tor their jiaynHMit: 1st. ICither l>y raisiiijr a spllicient annnal revenni', or '-'nd. J>y loans which will annually augiiioatthe deht. A\'e iiuist choose liviweou the.si" two alturnatives. " It is obvious that it would Ih> a \i'ry bad tinaui'ial policy to every year incur a S|)ecial exjienditure to the extent of one luindrcd and lifty t) two hun Ircd tiionsand dollars and to have tu pay thcni by means only of a loan. i>y pursuing; tiiis (lan>.'crons system, the liovcrnnicnt wunld ailii a lonsidcrablc anionut every year tu the deiit oft le province. If the Ministry believe thai they must make these onthiys in the publii- interest — and they will lind it very ditlicnlt to justify tliom, — they should have the couraiie to create tlie amiual revenue necessary tu meetlhem witlmut annually indelitint.' the jiroviure. J.et us see whither the sy.stem of Ixirrowiiii,' for this purposes would lead us; Special exjienditure in lss7-8s .'risii,7il7 7(i '• ISSS-Sli, as per estimates ' lii.").i.'21 21» " " " IbS'.Mtu, as per :.'eneral estimates l.')U,.V.i:} iH! Amount in three years 6-")n:),.")S2 ".'S " With this dangerous system, you will tons have indebted the jirovince to tlu^ extent of Sodo.'iSL'.'.is in three years. It is impi ssihle to continue it, and it is therefore the duty of the House to insist either that the » ioverument shall irreatly reduce the expenditure or that itsliall take adei|uate linan<'ial measures to equalize the annual revenue; and ex[)eniliture." For a man who not so lont^ aii'o. as a Ministerialist, was in the habit ol' making- so minute a classification of the expenditures which shotild not be considered as part of the ordinary ex])enses, the hon. member has become singularly strict now that ho is in ()pi)osition. Then he iised to class under the head of special expenses everytliinu' that he could possi- V)ly In-ing- under it on the slightest pretext and he did the same with the ordinary receipts, among whi(;h he even Went so far as to place not onlv the repayments on account of capital but even the moneys of which we were the simple depositaries and which we were liable to be called on to refund at any moment. That is the way he proceeded when he was a Ministerialist, but iu)w that he is in 0])i)osition, he repudiates all spe- cial i'xpenditure, even the most legitimate. So great is his anxiety to ■h h % 41 n Jcpi'iiivto our administration that, in liis headlong' /cah in his dcsiro to show a dclicit at any « ust, he ranks anionii- the ordinnry cxponses even the itrms lor wliich the lonn was contracted, withoxit credit- inii' the revenue at the same time witli ;in eqxial sum to the one lie carries to the debit. Wha. splendid bookkeeping! AVhat a (ioschen in em]>ryo I ^[ore than that : he even goes so far as to class nmoug- the ordinary expenses the advances and loans which have to be repaid. This is surely the reversol ol' all the accepted notions in iinance and, coming as it does from a man who constantly boasts of possessing the true science in such nuitters. who modestly claims to bi'long to the .'-chool of statesmen, who — if we are to believe him — never (Uiffau'es in a linaiu'ial dissertation except in com]>any with Sir P'rancis iliiuks. Sir .lohn Jiose, Sir Charles Tupper, lion. Thomas AVhile. Sir ]iichard Cart- wright and a host of others for whom, at nei'd, he even goivs to l-higland and France : such as William Pitt, Cladstone, Disraeli and Thiers, and wlio. ))y dint of constant association with such illustrious comi)any. has come to believe himself to be their ecjual. such heresies as I have just noted are altogether incomprehensible. It is not therefore surju-ising that he should freely use these great n;im(>s on all oi-c, ions, that he should constantly remind us of his serious studies, aiul that he should lay claim to a monopoly in this pro- vince of the true princii)l(\s of iinance. so that his hearer, stunned and dazzled by this i>-reat show of learninii', is s(nnetimes inclined, if he be at all unsophisticated, to place faith in the hon. member's plausible argu- uK'nts. Alas ! all this is only illusion; we have l)efore us a mere poli- tician whose specialty is to accommodate and ])end all the rules of liiuince to the interests of his party, findinu- that all goes well when his friends are in power and pretending to be seriously alarmed when the administration is in the hands of his adversaries. He, who formerly crammed all he could under the head of speiial expenses, turns round all of a sudden and imperiously refuses us all !) " " " KSSIMIO loo',.5!t;j it3 s:r)(i:;,,-)S2 98 •' With this daiiperons .system, vou will thus have indebted the province to the extent t.r.<)():;/)SL'.!l8 in three years." 4-I Lt't Its try to dispi'l tlu' tears ot" tho hou. momb.'V who tuniuM'ly did not lu'sitato to cncourauv the (rovt'rinnt'nt.s ht» snpporttMl to run tin' provinct' into millions of dobt, when ho advocated tho doctrine of run- ning into debt as the way to heeonie rich. He seems to overlook the sums which we collected xmder the li.-ad ol' special receipts during the iiscal year 1SS7-SS and which can he legitimately set against these special expenses : Forlsj^S !^ 80,!>:2(; 4o From the ;K»th June, 1S88, to the 3 1st December of thoi same year, we collected | From the :51st December. 1,SS8, to the 30ih June next, Ihisj ^^O.^Ol 57 amount will probably be exceeded ' It may be ]iresunu'd that for the year 1890, there will be collected fr(»m this source an additional sum, say, iu round ligures, of 80.000 00 Total *l!41,488 00 Now add to this amount of 241,488 00 Tlu^ i/fius which figure as special expenses and which are covered by the loan of 18S7 .",(;. I:i2 8:) Protestant Insane Asylum to l)e reiml)urscd out of the pro- ceeds of the sale of \\u' Leduc farm 10.000 00 Crown Lands Department : arrears due l)y our priHleci\ssors and which cannot !> ' legitimately imputed to our ordi- luiry expenses 55,841 00 In I^SO: Jle includes amonii the ordinary expenses : extension of the Montreal CVnirt House, amount covered by the loan, but which may not ])e all expended 50,000 00 rrotestant Insane Asylum — loan for which we luive set'u- rity 15,000 OO Loan to Dr. (lauvreau — on mortgage. 2,500 00 For 1800 : Iron bridges — amount revoted 50,000 00 s 480,! (51 8:5 Expenses authorized by statute and which do not exist :^0.000 00 1510,051 8:] ^ 48 "\\ t' iiiiuht add to those amounts tho nnmcrous sums wo have ln'i>ii ol)li'^vd l<. pay to scttlr old claims Irft unpaid hy the l{oss (tovfrnmciit. Thcrr rfmains nolliiny tlinvl'oiv of the prctendod del)! wliich we were to acrnmnlate in three years, in so IVir as we are responsible. Here then we Inive another prool' ol' the erronoouisut'ss (»i" the hon member's calculations. Comment is unnecessary. ^ yUl. DES.IARDINS- ItKPLY To Till-: K'KI' I'TATIOX OF AN OLD CUAUOK. The hon. member stales that '• lion. I'reniier, the Hon. Treasurer and their I'riends have accused the past Ooverument ol' administerinu- the linauces with an averaye yearly dclicit of s.")Oi),()oo or hall' a million in round Ijo-ures." Here ag-ain the hon. member is phivinu' on words Which past (Jov.'rinin'nl dot's he mean .' Is it Mr. Oliapleau's, Mr. Moiisseau's or ]Mr. Ross" :" Hi ISS.". and issc. tin- (hdicits were materially diminished by the additional sul)sidy of s;2t7.00ii. in round ligures : but in issT. a year for which the ex-(lovernment is responsibhv th" deliit in the ordiiuiry budget amounted to a sum ol' .'ii!:!24.:.*.')].ll. I must confess that it is a very difticult task to follow the hon. memlier's criticism ; whether through desin'n or ignoraiu'e, I cannot say which, but he constantly mixes up and coni'ouiuls two things m-verthe- less very distinct: the orditiary budt-'ef and the extraordimiry one. He vises indiscriminati'ly the terms '" ordinary and exlraordinarv expen- diture,"' jumbling them up touether and thus succeeds in makinu' us say the most unreasomd)le and contradictory things, whi witli w hii'h we had chartrcd tho (lid (iovcrnnn'iit.-^, I liiid, said he, w 1 Mo 1-". amiexol to the piihlic ai'coiiiitti oC 1SS7-SS, the iiu'oiitrovt'rtiblo jiroof tliat tins t . : . ■ liail imt the sli'.dit- t'St t'oiiiKhitioii. Aceordin^; to talHe K, tlio detieit.s of the whole of the two last vears of the Conservative (ioveruiiieut was hs follows : F,,r is,S-!-s.-, >;1(»..")S.-, ill For is8o-m; s;;,(i-io lo Ainoiint for two rears Si'Ll.GiSl 01 44 ■ " Let lis coiitr i>l tliis u itli the cliar-'f iiiailc a;^iiiii,>.t tlic t'x-(iuvi'riiiin'iit : I'n'ttMKlcil (Iclicits nrtlic tAVd years I'^S-t-S'i a nil lss,")-S(i sl,ii(iii,i(i;ii iiii I'l'lic-it.s lis cstililislicd by tln' llmi. 'rrcasiin'r in tin- ]pulilic aciDUiits tor 1^^7-^s '. !M,(;:;! dl J>ilUT<'iict> j! ',iOii,:i(is Dii " Tlic p\--( iuxcninu'iit's aihcrsarifs i'iir.H('i|iit'iitly iiiaiK' a inislaki', williiiulv ir iiirt. kiK.wiiiu'ly (ir 111 t, i4' ii|p\\ar(i.s III' iiiiu' liiuiilri'il tlniiiMaiul ilnllars when ilioy ciniiitiMl on a ilclicit i>t' a iiiilliiiii fur tin' two year-* jiisi nii'iitinncd." Il is rt'ally iminrul to inc. ^Ir. Sitcakcr, to liavt' lo coini" lirl'orc this eiiliu'litt'iicd and liouoial)l(' 1 loiisi' to vrl'utc siuh alisurdilifs. In read- inff this j-iavt of liis rmaavks. I liavf asked niysflf wln'thcr tlii> lion, niciiil)!'!' Avas icaliy serious in jdaeinii' hefon' tlie House coniparisoiis so exan'ii'erated and erroneous. Let VIS verily tlie i'aets year ]>y year, hen'innini.'' willi i -^S."). Open I lie IhitDiurd of issc, at i>au-e 10.")(). It uill he seen that I e.stal)lished that, instead of Mr. iuihertson's pretended surplus of s21,'.t.")i», the deficit l)et\veen the ordinary receijds and exj^enscs Avoiild have heen one of s7-> .'ii*o.S4. if he had not eiiterv'd as an ordinary re- eiMpi a sum of :J;4:i.»n.S4 derived from the niuniei])al loan fund, and if he had jn'ovidcd, as the la^^- ohliu'cd him. for the sinking fund on tlu ]>alance of the loan of \X~\. namely, a sum of !|'50.8r)4.0(l ; the achlitioi. of these sums gives a dcJicit cd' .s7:l.-")2rj.84. I added on the same [lau'c : " Tlm.«, in a t ( ciitiug o\t'ii tl.o i^tatcnu'iit fiirnisliecl uh by the TrcaKiirer, it will lo found that the ordiiiar y (.■xien.^e.s have cxi eided the i.rdinary rewij.t.s to the extent ol' $7;i,.">L'o S4, or. in (itlier word a, that there i.s in the hnd-il ol' < rdiiiary receipts and exiienses a deticit of .>?7S,5L'5.84." It is peTfectly (dear that, as the ^30,8r)4 of thi' sinking fund service were not invested in ISS,'). that sum could not have ])een entered in table E cited hy my hon. friend. But the otlnn- Hem of ^42,(171. X4, counted as an ordinary reetnpt ])y the then Treasurer, iigures in tahlc E as a spec'ial receipt, and, ])y striking off this sum from the then Treasurer's pretended surphis of s;24.'.t;>(). that prtdended surplus is turned into a deficit of ^17.7i?l.S4. It is therefore easy to reconstruct my calculation of iSSti; hy striking oil' these S4-2,t)71.84 and ])y not paying the s;50.- 854.00 to the sinking fund I can state that the dtdicit, as estalilished })y me at the time between the ordinary receipts and expenses, deducting the surplus of A24.950.00, was !?17,721.84. All the dillerence with mv 45 J thfii ciilruhilioiis is that 1 liad oiiiitttMl to lukr into ar, ount ili,' |)ri'- tt'iulfd surplus of s-J4/.trjU.(Jii. lluis ii'!..")7").s I. Si> luuch for 1>*s.'). As lor ill • yar IsS.V-Sf., j rstahlishrd. as will l»i' seen at [lai^'i' .".I'l oi' till' Um/sir'/ oi' jssT, )li;ii 111,' ai)|)ar.'iil d'ticit hct w.'i'ii the or«liuai'v rcffijiis and ''Xii'iisrs was one of s;7,s.,V|.',, lo, L;'t us sum uj) thcst' caK'ulal ions : Accov(liii'4' to my spi-cdios (sfi> //,///>• .-/v/ HSii. p. ln.')(), .md I hni^^iiril 1887. p :;iil); D.'iirit for 188.") sl7.7:il Sj " l^si; 7S..VI.") 10 AiKU'OtJ !i4 Accordiiu:' to tal)l(' I'] : ]>('licit tor iss;, , slt),:)8."> !>l •• 1S8(; S:!.(l|.-, ID DiffertMU'o l)i't\vt'cn Tuy tlu'u calrnlations and tnblc lil s -lyu)') ;••■! Tliis is vrry lav IVoui tlu' diH'.i-'uri' ol' siltOlJ, 3(53. I'M cast up to lac by tlif hon. uicnii)i'r. • It is rvidnit thai, to n'ivt.' some color (d' truth to this Uousi'Jisc, he kuowinii'ly or unknovvinii'ly conioundrd with the service ol'the ordinary budq-et what was paid durinu' tliose two years on capital arcount. In I)oiut of fact, during- the liscal year 1S8"). Ave expeiuled on acecuint of capital a sum ol' .■j;7-'>3,b")r;.05 l)eyond our resoitrees (see speech of the member lor Sher]>rooke. HdiiKitrtI 188t), j). lt)14, and my s])eech, .same llm/sdn/. y^i^. lO.")! and I0o'2.) In IB^iti, the amount expended on capital account was !§.)tU, 118.48 (see Hansard, 1887, pp. •■)l>4, ■)'.>'> and ;!'.•(;.) These two sums tog'ether form : For 1885, according to lion. Mr. liobertsoifs own calcuhi- tions •■:;; I')-]. ]■')'■) d.') For 188G otUJlS 4S si, 317,271 53 "^'^smmHfHm 46 .•^(.'I'ordiuii' to my calculations n IW"), the sums expended on account ol'ciiiiital amounted to !$8!>:2,827.1:^. But IVom this amount there should 1)1' deducted a railway chiim left in aheynnce to the extent of s(;(;,147.o4. the ^;] ).S.")4.t»!l. lor till sinking i'und service, which was iu)t invested and #4:i,i>71.''^4, amount oi' capital reimbursed on the municipal loan I'und. Uy di'ducting- tliese three sums we gvt s7,');J,l,");j, \i, hich was the real net amount expended on account ol' capital. Excess of payments over receipts during those two years. .-i^l.^^n, 271 oo "Which, in round ligures, ex<'eeds even the lion, member's a Idition. I (lefv liim to deny the accuracy of these cahmUvtions c')ntaiued in my speeches. As may 1)e seen, his preteiuh'd refutation lias only served to tlirow into bolder relief the despicabh' proci-edings to which he has recourse to misleiul the House. To dtMM-ive those who are not in a position to verifv his assertions, he mixes up the amount paid on capital account with the ordinary service of the budget. It is unnecessary for me to t'haractt>rize such a ]iroceeding, for it is of lu) value in the eyes of any one goinu* to th-' trouble «.u' verifvinu' matters for himself. (.'OMTAKISON lU'yfWl-KN THE EXPENSES OE lss7-Ss AND OF 18So-><(;. BY MR. DESJAKDIXS. " W'v. are"— .said l>e — " in ;i iMisitinu thif^ year to ciiiiii.ure tlic |irc.scnt .Miiii.stry's cxjh?!)- ditiirc witii tliatof tlie prfMrdiipj ( i'>v('riiiu"nt uiid to prove that tliouc, who liail |iroiiii-('d tlie most ri;:id eroiioiuy, liavc on tlie contrary, l.een tlie nio.st prodijial -Mini.'stiir.s who have \et goviTiH'd tlie Province. "In charLrinj.', as 1 iiave already .stateil, to tlio acconnt of capital, jiaynient.s to the amount of iu>arly two hnmlred thousand dollars, the Hon. Treasurer h.i.s .succeeded in apparently reducin>: the true li'.'ure of the expenses of 1,S>S7-SS. '• .Vccordiu^: to the jpuMic accounts, the ordinary (expenses of 1SS7-SS, wer,- :*.'i,;!().').(>;i2 ;',(! " Aei-ordin^r to tahle I', of the same pnhlic acconnt.s, the oxpeiLse.s (jf 1SS.">-S(;, only amounted l( ;'.,(t;}-',ti()7 i.>5 Jii'rease J XVJ ,4'S> U '• I'.ut I have already jtnned that tlu^ ordinary expenses really ran up to ;'.. .").■)!', 8( mi \'2 '• N(i\v coiui)are with the expens-.'.s of ISS.'i-S'i Ii,(i;i2,()(i7 -b Keal increase <; b'M,\'J2 .S7" 47 5:3 }\y I'is .omparivou Ix'tu-fii tlic ordinary expenses of ISsT- ?-. <(-. 'K'.U')i) 02 A\ liich \\-ould leave the increase for which we aie m p: it resjxmsihle. comparatively with issil, at N2iit;,474 4Ii and not at his erroneous fiu-ure of 8">-". !'•'-. S7. But there is a .simjder method to settle this point : ^o compare the ordinary re<-eipts and expenses of 1880 with those of Isss. . lu 188t;, the ordinary expenses amounted to >;-),():!L',ti(J7 j:) And the ordinary receipts to 2.!t4!i..")(;2 Ij Deficit in 1880 | ,s:;.()4.-, lo Iji 1888, the ordinary receiiits were s-! 7-N •>•>>< •'<, And the ordinary expenses $-5,o05,(».;j ;]0 Li>s8 the increase in the interest service for which we are not responsible !•_'."). 050 02 :!.2:]!t.081 74 ^^^I'Plus iC; 4!t!i,140 (io Take, if you will, the receipts as calculated by the hon. member himself, deducting the SoOn.dOO of arrears, or Mr. Desjardins' liu'ure sis:] -'lis '^-'S :''» ICxpenditure for which we are in jiart responsible :!.2:;i".081 0") So that even, uecordin;8,7:'.8,22S ;^(> 18S(; 2,!»4!»,.")ti2 1". IiKU'ease of the reiH'ipts over 188t» >( 788. (JOU 24 Expenditure in 18ss, inchulinu' the imroase in the interest serviee s:!,;;(m.u:!2 o» > Expenditure in 188t) :5,0;12.tin7 25 Inereasi' in the exiienditiire in 1888 !«! .■!:!2,42.) 11 Thus the inerease in the receipts lor 1888 compared with 188(1 amounts to s; 78 5 24 And the increase in tlie expenditirre in 1888 compared with 1880. to 332.42.1 11 $ 4,)t;,2 41 13 Compared \villi 18!i(), the inercasi' in tlie recei]>ts. alter deduclinu- tlie increase in the expenditure in 1888. iherelore amounts to .S45<>,*i4l.ll-J. Under tlie cir.cumstances. wluit h.'comes ol' the member I'or Mont- morency's ahirminp' calculations :" Was I not Justilied in saying' that he is misleadinii' the House aiul the country hy a reu'ular system ol' I'also representations and errone()us calculations ; The hon. member next presented us with the I'ollowinu' stalenient, which he described as sadly interest inu'. ol'lhi* increases and reductions in the expenses oi' the diir-renl l)ran<'hes ol' th" servii-e : IiiiriM.^cs. " Interest o\\ tlie ilelit, reil(Mii|i1ioii and expenses nf niana.Lre- niriit, IssT-ss .T;l,ln:!,710 ii4 Inti rest en the lic' I re leiuj t im ainl ex|)''ns"s (.(' iu:umi;e- ment, ISS- • i !t77,7'-' SlL'r),!i."i(l i\2 .LeL'isiatieii, ISST-ss .S •_>:'S,ii(i4 SS do iss:,-sti 1S1,>)S7 ;•') ■17,ee7 l;5 Civil j.'(i\eriuuenl,, tss7-Ss i; •J(is,ii77 ill du ]ss:,m; Is;!,ii7:i 41 '2r>,OU-2 L'u AdniinistratiiMi nf juslicc, lss7-ss ^ 4;>S,7'i.") 10 d.i ' .in is8:>-s(i ;i(i;i,74(> 4S 7'),ii(ts (i2 rolico, ISS7-SS »; IIMIL'O (HI ilo iss:)-s(; l4,a-.'() ee — :.,(i(iu (in InHjiretion ol' [ndilie ollices. 1SS7-SS ,S 7,')!)'_' .S4 do di issrvSd (i:i;i7;'.:( — l.l.v. :.l :4i i;J 49 Public instruction, 1887-,SS 5; ao4,219 SO <-lo do l,S8,-,-8t;; ;!44,785 00 Liteniry iind scientific institutions, 1887-88 ~* TT-o,, tu ^'■*'^"* ^^ ^« ! 14-> O'M) 84 40 Charities, 1887-88 ^ .,..,0,,. „. »>2,o00 51 do 1885-80 '^ .i-'-r n _'()(,/,() 00 INIiscellancous, iiu'.udin._r ii-ent in France, commission on lunatic ^'''^'^^^ ^ asylums, i*cc., l,ss7-88 ' ;- 10,-) 714 ••,•> Miscellaneous, including mining engineers, agent in rrance,'&c '^^^^■^^' ' <)2,348 no Crov.n Lands Department, 1887-88 ~"^ 181,V)4 !)3 ^^•"'^^'•^ •^'' '^" d" 1S80-80 ; ;;;;;; ■' i;V),ooo oo Payments by revenue otiicers out of collections made by them, <> 1^^^-^" ' 20,531 79 Sj-ecial expenses s .r t T) • T. ^ Heductions. Ki^formatory Prisons, Reformatory and Imliistrial Schodls ,i«s,v8(i : ' ' ^ ,^ .,.,., .,_ i; I'urmatory Prisi.ns, Keformatorv and Industrial Schools " '""" "' ^^^"■^'^ ' 88,708 13 liiunigration, 18S,-).80 "TJ J7oS!i 71 '^ ''"'^ ^^ ''•' l^^'-'^^ ^ 7!30(i 00 ( .^..ni.ation, lsso-s,i ^Jl^^iT^^ ''"''" "^ d'^ '^^'-^^ 87,0(1(1 00 S 7;;, 705 40 Total reductions jg fji jjj) 05 " Thus, as against increases to the amount of more than six hundred and one thousand dolhirs, we only have reductions to the amount of eighty one thousand, ^^ hi.h, as proven l.N^Hie foregoing hgnivs, ..stablishes an increase of live hundred and twenty thousand In this sliitoinont, lli.^ hon. mt'uihev tales «rood fuiv to contiust the •'xpoiuliture ol' 1888 with the yeiir most l\ivorabU' to hiiiiisoli; aiul rveu iii this conii.arisoii ho is unjust, because he imputes to that liseal year au 'mmmmBmmm mmmmmm 50 amount of charges, some of Avhich should not figure in the ordinary budget, while the others, as 1 have already shown, are expenses for which we are not responsible. Why does he not make a fair and loyal comparison ? Because to do so would not serve his cause — his object })eiiig at all cost to place our administration of the finances in fault. This is the sole reason why he selects for his comimrison a iiscal year whiih dois not indicate the average of the expenditure of the preceding years and the succeeding one. AVith him, it is a settled point to exaggerate our expenditure, but in that case he should at least mention the increase in the receipts. He is very careiul not to do so. because that proceeding, one nev»n-the- less of the simplest justice, would show that, even in accepLing his singular method of casting up the accounts, we get for the fiscal year 1887-!^8 a iinancial result far siiperior to tliitt of 188(i, seeing that the latter year, thouiih indirating a smaller amount of expenditure, cul- minated in a deficit of NS;3,04r).l(i. while 181^8 showed a surplus. My hon. friend himsflf moreover, furnishes me with ]n'oof of his error. AVlu'U lu' was a Ministerialist, he laid it down as a principle that the only way to determine witli accuracy the movement of the expen- diture was not to compare one year with another, but to apply the com- parison to a series of three years. In his oi)ini(,)n, this was the true and only rational practice to follow. Why then, may I ask, is he the first to completely ignore his own rule, especially in the face of his preten- sion that his mode of calculating in Oiiposition is [)reci8ely the sanu' as it was when he supported a Croverument after liis own choice Y Is not this the indication of a false and partial criticism, having for its sole aim the misrepresentation of the situation :* I shall therefore" not waste time in again going over the comparison of the exi)enses. item by item, between the Iiscal years 1887-88 and 1885- 86. I have already done this in my budget speech and given on all points the fullest information. I shall simply appi\ ih^' ]>iliiciple laid down by my hon. friend himself, and establish from the public accounts the movement of the expenditure for a certain number of years, deducting the gradual increase in the interest service from year to year, in order to ch'arly show what has been the in<'rease in the ordinary expenditure. 51 This is what we loani from the official ucc oiints : 1883 Total ordinary oxpensos DoJiut interest Net ordinary i'xp;Misi\s. 1884 Total ordinary i'xpcuses. IX'dui't interest Total (Ordinary expiMises Uv'duct interest Net ordinary expenses.... I8s(; Total ordinary i'xp>'nses., D.'du'-t interest Net ordinary exn;'nses 1887 Total ordinary expenses D^dnet interest 18S7-S8 Total ordinary exp;Mises... Deduct interest $3,0!tn,!l81 00 «S!t,7!t4 00 82,201,187 00 ■'*i3,os8.07.5 OJ !>t;4,i2r> 00 Net ordinary rxp;>n8(\s s:.> ]•)■] ,sx;< 00 *8.031,443 00 !'«(),] 10 00 s2.u.'il.3:;3 00 83,023.283 00 !'77.7(;i) 00 !^2.04."),r)23 00 8:\28(;.232 00 1,<»10,022 00 Net ordinary expenses 82.27i) ••'lo 00 83.303,032 00 1.103.71O 00 Net ordinary expenses 82,2o0,322 00 These lio-ures sh.nv that, except in 1885 and 1880, the avera-e con- troHahle annual expenditure was about the same as that of the la^t hsea year, and, as for the years 188o and 1S8.:. it is well to l,ear in mmd that those years were the years which inimediatelv preceded the ureneral ele.-tions. In view of that event and with the object .d' trvin- to concihate the good o-races of the electors, the then' (fovernmen't 52 thoug-lit iv liiali liino to take a new dt'parturo b) .mradiiig* a policy vory diHiTt'ut from that which they had until thcu Uowod. They all at once began indiscriminately to cut down expenses in the diilercnt l)ranches of the public servi*;e, to such a degree as to threaten tlieir etliciency, in order to present an a}>pearance of economy and to endeavor to reduce to a minimun the delicits which up to tluit time had llgured in '.hi' ].ublic accoxuits. It is needh^ss to say that this was only an apparent economy, tor, when we (^ame into i)()wer on the 81st .lanuary, li-»87, the Treasury was empty, the ex-Government had already exceeded their appropriations before six months were hardly out, and an estimates of the l)a]ance of the receij^ts likely to come in for the renuiiuder of the year, and of the exj^enditure to ho ])rovided against for the same })eriod showed that those a impropriations were quite insuflicient. The result was that we were compelled to apjily to the House lor additional siip- plii's to meet the case. Th(> increase of the exi)enses has therefore not been i«;o20,192.S7 as stated by tlie hou. member. "We must begin by striking oil' the !*!l!^7,T»u.T*i oi' special expenses already referred tt), as well as the in- crease of Sl2;"),iio0.o2 in the interest service, for which we are in no way resi)onsible. or a total of $813,710.28 to be dedinted from these s520,- r.i2.M7, \vliicii leaves a sum of s>2ii(),474.4'.i as the real increase in the expenditure of is^iS over that of 1S8(). I say real iiu'reasi', but I miuht show at need thai these s!20t5,474.4'.i of ailtlitional expenditun' include sevi'ral items for which we ■'ve not at all responsible. Ikit my lii>n. friend should have completed his statement and sliown at the same time thi' movement of tlie receii)ts. By n comparison Ix'tween the receipts of 18SS and these of 1880, lie would have found a real increase of !i>;788, (!(!(!. 24. There is not a business man. Avitli ilie slightest experience in such matters, who, at :; ii'lauce. will not understand that an increase of revenue cannot, be secured within ihe si>ace of two years without necessarily entailina' ini increase ol' exi)enditu!e. On the contrary, all will admit that, in the actual case, the increast> in tlu' expenditure has been trilling in propor- tion to the increase in the receipts, and that the operations of tli ■ liscal yi'ar 1887-8X. have l>een much superior to those of I88r), the one selected amoiiii' all as a point of comi)aiison l)y the member for Monfmorencv. In point of fact, the result is the niost magnificent ohtained for many vears. 53 Mli. DES.TARDINS' OriNIOTs^ OX Till' OUTH'IUXDINCJ W.\RjiANTS. n in'f'^ tT'" "^,V>'''^'" I'-'f i'I."t",Knvluit important puint. 1 i.M'!'l'Li<;a^;rniintsshuuMhat, ou Lsss, tl.o cash l.ulaiuv ..i him.l auonnUnl to ^l.,-',,,s„(M»,. J „t I hav,. a.s.rrtainr.l witl. .surprise that, at the .sanu" Ilat,- l-Tl .'V'ft ""'"'V <;Mt.-tan,l,n^ tu tl.o amount nf S4(;n,,-,l,S.h-. ]t will l.o admitted tlia. i>/linri'^';''','^'''-'-,r''^'y'' "'"''*' "r " ■-''^^"'"^■'" "^ tl.o „npaid warrants ,.nt- ti.M.S(.\Narramsontiic.,(iil, ,Imu., ],s,s,, and l.Vss, and on tin- odthJmio of tlio prBce.Uii- And h.' tht'ii ,sii])mitt:fd n ,stat(>in(Mit of the outstaiuTing warnmts :iL the end of each year from LSTil to 1S88. " Jt will 1„> stvii,- he addod, " tliat the outstandinc; warrants wl.i.'l., from 1S7!) to issr, liadnoti'xiyododthosnniof j^ii:!,(i.-,(Mi4. aniMinitrd .,n the :;ntli .Inn.>, |s>7 t. S'MO 7:.:: -'7 andontlKY.oth.lniu. is.ss, t,,,^4(l(i,-,is.,v'. Thr rash i.alan.v .,n the llnth .lune.'is^s, ^^^.^ considerably reduivd hy these ontstandinj; warrants." In ivadino- these lines. I have wondered whether the hon. memVxn- was really serious in thus laying- stress on the amounts of the warrants o^^tstandill^• on the -JOth June of the years 1SS7 and 188S, as I cannot perceive what advantage he expects to derive from such an argument. AYilh his experience as a member of this House for a numl)er of years and his pretensions as linancier of the ()i)position, he ouo-ht to have readily understood the causes which, during the two years in qu(\stion tiMided to raise the warrants to a higher figure than in previous years. With a little retlection he would have satisfied himself on this point, which is one easily understood by those who are versed in com- mercial matters, and especially by parties conversant with the adminis- tration of the Treasury department. The exceptional amount of warrants outstanding on the .'lOth.Tune, 1887 and 1888, is easily accounted lor. In 1887 the prorogation of tlie Legislature having ])een delayed till the 18th May, it was onlv on that date that th(> Sui>ply bill was sanctioned and that we could avail our- selves of the credits voted for the iiscl year which would expire on the 301 h June. 1887. C'onseqtuMitly, in order to include in the public accounts before tin' ;!()th June, 1887, all the payments belonging to that year, we had, in the brief interval between the 18th May and the 30th June, to issue warrants to cover all the ]>ayments of that year, which warrants had uatixrally not yet been paid on the 30th June, Tlie same thing occurred in 1888, ^^'e w^i-re still in session on the 12th .luly, and the supplementary estimates had not been sanctioned on 54 tlu> e^Oth .Tun»\ This ^vas the only case, I bi'liev*', MiK^e Con teclora lion tliat a session comniencod towards the closi' oi' a fiscal year and ended in the l)i'!iinnin<>' of the following i)ne. The ])ooks had therefore to l)e kei)t open in order to enter all the payments belonging to that y*'ar. Tliis is the whole explanation of the profound mystery whi<'h so strongly arouses my hon. friend's suspicious. There could be nothing ])lainer or simpler, commercially speaking. A larger amount of warrants was issued from the Treasury department ill 1S87 and l^SA, owing to the fact that the sanction of the Supply l)ill did not take place al an »>arlier date. The payments ellected by thest' warrants were entered in the public -iccoiints I'or the year to which they 1)elonged ; but as the che(|ues iss\ied U])on these warrants had not yet come in on the 80th June, there rennvined at that date a larger amount of outstanding warrants. This is the whole mystery of this all'air. It is, in fact, the very same opi>ration as that of the merchant, who, al)out the date of his inventory, makes certain payments to his furnishers by means of cheques drawn on liis bankers. These payments are entered in his books as made, but tin' cheques which he drew not having retiirnod, the balance to his credit at the bank represents a larger amount th:;n it would if the cheques in (|ut>stion had been paid. lUit, in his balance statement, lie takes good cure to dediict these cheques from the amount of his crt'dit at the bank. On the oiu' hand, iie has paid to his creditors an amount equal to the cheques drawn ; on the other, he takes this into account when he makes up liis l)ank account. The operation is the same in the case of a Government. As long as its cheques liave not l)een paid, its cash on hand represents a larg(>r amount, it is true, but where is the harm if you account for the warrants issued and deduct them from your cash in 1)aiik in tlie statement of assets and liabilities ' Too much haste is at times j)rejudicial. If the hon. member had not prepared his reply to my buduet speech long beforehand, he would have posted himself up in the matter and would not have fallen into such an error. He woukl have been aware, that, if the amount of the outstanding warrants was higher than usual, it was solely because the sessions had been held at a date lat»'r than iisiuil ; and he would thus have avoidt>d dwelling on a subject of no conse- quence and of no inten'st to the House. As the session 1)ega1i in January this year, the amount of outstanding warrants on the JJOth June lu'xt will not exceed the ordinarv figure. f 55 FISCAL YEAU 18SS-89. For tlu' cunvut year, tlie hon. meiubcr presents a statement fully as erroneous as tliose that have preceded it, and just as easy to demolish. Let us first cite it so as to enal)le us intelligently to judge of its merits. The following, according to his own making up, is a statement of the proposed expenditure for 1SHI». whi and to present the situation under- its worst aspect, he deducts a whole list of special expenses from the capital account and, with one stroke of the pen, adds them to the ordinary expenses. AVith him it is the same policy through- out, the same settled system of presenting the accounts in, a muddled state. With such a system any one could easily manage to show up ■deficits under the best conducted administration. For instance, he puts down as ordinary expenses items which really should rank as extraordinary expenditure, and which he himself, when he was a Ministerialist, took good care not to count as ordinary expenses — a circumstance, however, which does not prevent him from solemnly declaring at this day that he has in uo way changed his ..system of calculating : " The following iteina," said he, " must be iid.led : 66 ■^ .SfioiiciT \V(mm1, cimstriKtidii of a vonctabli' irllar, hIiciI aiul j:iiiiril Imtisc S 4,0iK) (K) Iron liri(l/<'s 10(i,(|(mi ml KiiiiiuurasUa (irciiit Court i imw Imildiug) '-'.■■>(t(i on Ik'iitiii'^' apiiaraUis in mnv ilislrictH ti/KHi en ( 'Miistriirtiou of a wiii;^' t urt lioiiso and i^aol, Iionavmitnro .' -t,(i(i(i i«i (.'onrt iioiiMi' anil isnul, Arthaba.^ka, (new lonndationn) l,4(Mi imi (."odilication of the Ntatiite.s .. 3l8t Dt'coinher lust w." liud cor^eotod, ai)art from our (.idiniuy recoipts, a sum of s^SO.OOO of si^viiil receipts, and this sum may possibljr r.'ach a hundred tliousand dolhirs. X.'v.-rthch'ss, mv lion, fri.-nd takes no ae,-ouiit whatever of this, althcuyh lie classed the same re.-eipts as ordinary ones when his I'riends were in powiM'. Therefore, even if you accepted his present calculations, you must set aii'ainst the S!22').0(MI which he wants to adxpenses which he adds to thi' ordinary expiMiditure. To be logical, ho should at least strik- oil' these $ K ;.").( I0(» from his 821'."), 000 ; but he does nothiim' of the kind, as all through he has but one object in view : to build up a delicit and depre- «-iate our administration in the eyes of the country, even if he had tt) turn the whole arithmetic upsidi^ down. . Having managed by his false calculations to make out a total expenditure in round figures of $3. 050,000 (»0 He estimates his receipts at :),4.5O.00O mo And by this manipulation of ligures he shows up a pre- tended dehcit of I 200,000 00 Such a calculation is worthless, as I have just shown. From the amount of the expenditure as made up by him, in round figures, at !3;3,()50,000 00 There must be dedmited, as already explained, the special expenses which ]w adds to the ordinary expenses, but which should not iigure uuder that head 223, DOO 00 "Which leaves the real amount of the ordinary expendi- ture at 83.424,100 00 Besides, from this total amount must be further deducted the difference between the otticial, budget and his 18,422 12 The total ordinary expenditure wall therefore only be $3,405,677 88 68 As for thi' r.'ci'ipts, I taki» his own figuri'H, although they may reach a hiirhcr amount !$8.t.)0,0()0 00 Total ordinary «'xpt'nditur(' .'},40."),(;77 00 There wonld therefore remain a surplus of S 44,32:} 00 This is far from the di'ticit wliieh he has in his own imai>ination managed to make out. Now, how will the operations of the present fiscal yt^ar compare with those of ISS.VStl, th last year lor which the preceding Crovernment was alont^ wholly responsible'^ Expenditure of 1S8S-89 63,40r,,r.7Y H8 18H;3-«t; 3,o:]2,ii07 25 Increase in 1880 over iSStl i§ ;373,070 43 Deduct : im-rease in the interest service in 1888 over 1886, for whicli tlie preceding (iovernment is responsible, say, in round ligures 12.), 000 00 $ 248,070 43 The increase ot expenditure for which we might be held respon- sible is therefore, as compared with 188t), only $248,070.43. instead of !«;»!1 7,302, as predicted by the hon. member, who only makes a mistake ot .^360,322 in his calculations. Let us now extend the comparison to the receipts, a thing which lie Aery carefully avoids to take up : Estimated receipts in 1880 !«;3,4;)0,000 00 Receipts of 1886 2,949,562 15 Surplus of receipts oA'cr 1886 * .' (»,437 85 True, the estimated expenditure amounts to $2-ix. , more thai; in 1886, but on the other hand our receipts show an in. "Hse of |500,- 437.85. Is not this a splendid result, and far superior to laat -1 1886, Avhich has been so much extolled hy my hon. colleague ! , 69 YEAR IS'ilt-OO. N.'xt yi.Mvs l)iuln-..| hits iilso IxM'ii IkhkIKhI l)y Ihr 1k.ii. iiirialH-r for M(»iihn(irciicy in ihc sanu- <'Xtriior(liiiiiry manner.' "\\. hav''," h.' Siiiil, ''iin ri'iisiMi t(i li«)|,e Inr iin iiiipn.voiiitMit in the sitiuitic.n iliiriiiL' iioxt yrar, I lie I,.11,,\mii-: arc tlif fMtiiiiate.s Inr tliat year : "tillXKKAl, IiriKil'/r OF lsS!)-iMi. Expi'iiscs ^,, .,.., ,-|| .. Siicrial I'xiK'iist'H, \N linli aro only <'r(liiuiryf..../.V.V..V.....V,V/.V//.V./"/.'..'.*. ".V.^ " ''k!(|'."i!'i;; ii;i A 11 H Mint S:;.")(i.") 7(i4 44 Sn|v[il«Miit'ntary rstiniaics and .■siiccial warrants, at i(viI-'t..V^^"..'.."."!!."."."!..'.','."..'..'.'.". ' "'lliv'i()(l 00 Aniutint v'!ri"-/'i II !• ,• , , ., ,, „, u'.i,ni,>,(i)4 44 i-.-iti mates \sli:ill tlior.'loro a-aiii liavo in lW.i-00 a dclicit of num' than twohiindrcil liiousaiid "lollar.s. This is:io-aiu the f-iiine procetHlina- oxnctly as ho applit^d to tho pre- vious yi-ars. My hoii. tVifinl, cooly, hut very eoiivenieiilly for his own puri)ose, swells up the expenditure hy addin<>- an amount of special oxpenditure to the ordiiuiry expenses of the year. The items here also nre of the same Uiiture as those he has added to the ordinary budg-et of the other two liseal years, so that it would be needless to refute over again similar pretensions. For examide, we again lind an item of S100,0(IO for the eonstruetion of iron bridges, an amount that may not ])e entirely expended, besides other expenses, consisting eil Iter of old claims lor which we ar*- not responsible, or of improvements to (rovernmeut properties, which should not be regarded as belonging to the ordinary Jjudget. Let lis theji briefly correct his figures. According to his statement, the expenditure of lS.S!(-it() will ho $";,G1 •■],7i!-l: 44 But from this amount there must be deducted for special expenses wrongly added by him to the ordinary ^>"^^^!iP^mppip|iv«Hni (10 "We .xhould lurtluM' Icnv.' out th,. 8Ui.pl..m..niarv ostimat.vs ..lul spe.'ial Wiinants wlii.li have as y.M no (•xisf.Mi.v and tho iiinotint of whi.h. if any .should be requiivd. will ,',itiivly deiviid on th,. exio-encirs cf \hv puldi,- NMvi.val tlir pn.p.r lime and phuv .^ nO.OdO 00 ^^'"^''■'■"''•' ^Z^.^^^jrTi ^ '^'''•'••<'l'«''v.lh.M.stimalrdordinaiyrxp..naiiuivonlvaln(.unt,sinivalitv to.N^..:;.>:;j<(.sian(lnotto*-:..il::,7n4.-M.asassortedbythehou. lueudn.r." Anrrdrdurriui.lhi.s.sumrr..m.heani(,unl(.rih(M.stinn,t(.d,v.-(.ipt.s: Ordinary r.'Vcnu,-. estimates ^.. ,„- ,.- , ,,„ Unlmary ,.xp(Mis.",s. as Inrcsecn ,,,_,, ^, , •;.■)•!•.. 1(11 Si Oil th.. .(.iilrary, a.-.-ordinti-to theaetual ostiinat.. a sui- plus Nvill h,. lound of ^ ., -,,j ,,., Now, IH us .onipare the estiiuat.,! .hai-es of |SS!....„ ^vith those of l.H,s.)->(), so eomplaisantly .'it-'d by uiv .ritic ; Ordinary ..stimatrd ..xpeiiscs lor ISS'i-|i() \f>-'--> i-n wt Ordinary exprnscs oi lS,-(.-,-,X(; ., ,,., , ,.,,_ ,. •).o-)j,i)()< :j.) Say, a iM-obablo incrcas*. ol" si -'.jo - ,~^- But wv must d.'du.t IVcm this in-reas.. ih^ intnvst srr- vi.e lor whi, h our pivde-'^ssors an- ivsponsilile. sav, ill round liij'ur.'s " iL'.i.OdO 00 !§ 1 !•.')..".»;;! .")0 The r.al in.reas.. lor u hi.h we are responsible, will th.refore onlv «. ....li >..;:)...; whu.h is ^^ ol S..S,,..,!..,,,,.,, ,vhirh IS another ..xainpl.. ,>| his aeruraey. J.'t us now .'ontrast th.. rer, ipts of the same two lisral yrars : The iv(vipts for issil-iKi ar.. •■stimatrd at.. «•. ,„- ,-., ^„ The receipts lor Ism;.-s,; ^^ „,,> ...:::::.'^'^''^::Z |^^n!:■^ Z Tn.reasein the receipts of Is-.O as compared with thos. ol isht; $ WiO.IlO (i,", 61 Thus, tht^ ("((rosiM'ii cxpi'iulitm-c I'or IS'.ti) compared with that of 1SS(>, as far as tliat i>art ol' tlic same lor which we aii' vi'spoiisiblo is couci'riu'd, is roally only !*il".»'),.')(i:',..')(; iuoi\> than in lSS(i; t)ut, on tlu' othtT hand, it should not h>' i'orgott.'U tliat tlu' ostiuiati'd rci-fipls for 18!>() ari> !8i4')ii,n<>.(i.') nmre than in lSS(i. This is what should he taken into account, but whi(.h my hon. tViend takes good care to overlook. Let us now add together the surpluses of th.> three years: SurphrsoT ISST-S'^ !s:;7:].1'.m; 0:1 I'ossihle surplus lor isss-,s;t 44,:]-J:5 OD " lH8it-i)0 .")2..".(ll !»;» Amount of surjdus it)r the three viars 84TU.0i'l 02 Here au'ain we are verv far from the conclusions reached hv the hon. memh.'r, who. hv means ol' absolutely erroneous calculations, has managed to make up a collective delieit ol' >;"22.tiil2 lor th>' same three years. His system ol' account-ke(>pinLi' is t'uiulamenlally wrouLi. so that all his conclusions are necessari'M I'allacinus. and I ha\'e only to tolluw ihem up one alter tlie other to overthrow them. He makes another calculation l)as.'d on tlie s:ime I'tiiulamental »'rror. He adds together his pretended increases in i!ie expenditure for \\\,> years ISSS. ms',\ and l^^'.'i' comi)ar((l with tho>e of lS,s.')-S(i. and iiets the I'ollowinLi' result ; — In issT-SS ^ .') -20.020 I„ -jsss-sii til7.-"li'2 111 lss',)-;iO •• .>1.1.")7 Total increase nI.T1S,.".T>i " 'I'hcsf li'iiinvs " —ill- iiMcil in a tuiic of siiuiiluto! I'c.ir— " reveal a truly .■il.iriiiiiiir situ- iiliuii. Till' Ministry are iiiin'.iNiii'.^ tin' exii.Miilituri' at a raU'wIiich .sImiiI i lai.ilo' the Ilmisc .-.eriiiii.sly ri'lli'ct. lii three years of ..llicc the prcsiMit ( ieveruiiieiit will lia\(> iiicreaseil the ■ •riliiiary e\|M'iises .if t!ie niilijie sorx ioinl. aiul all I have to do is to rc.apitiilate my own calculations. 1 defy him to seriously deny the aeeuracv of tlie followinii' statement : {>-2 For 1SS7-SH " 1889-90 iucludiiiir tho iiuroase in the iuterest service. Here is the real increase of the expenses : Total increase in the three years as compared with 1H8(J... ^^^k> Now let us deduct the increase in tla- interest service for which we -^ not responsible : i" u w e I ^73,070 43 ( 320,r)()3 o() are For 18S8. " 1SS9 " 1890 Sl2.'i,9r)0 (52 12."). 000 00 i2r.,Ofio 00 !tf37.").li,jii (i2 The real iurrease in th<' total expenditure for the ordim-ry s.-rvice, for whi.'h we are j)artly responsible durino- th.'se three years, will therefore ])c. iSO.30. lOX 4s Hon 1 ^'^'^^^'^■•^ly ^l"'nie the real situation and to not UHs!ea,l the House and country as n-o-ards the true linancal state for these three iscal years, as compared uith Iss,;. we must set against this evp.udi- ^"- ^'- -->-^< <'''the receipts dunnu- the eorrespo^din,. period Forthellseal year isss, reeeipts colleeted |3,7:!s -N oo ;; 1SS9, probable receipts 04-,, ^ ,,,^ 3. ;').),(;72 so Total receipts lor the three vears. •!$10,.")93,900 SO Averaire per year Keceipts for Jssi; !^ ;;.;"):;i,;;(io 27 2,949,.-it;2 15 R( .eal inen-as.- of the receipts per year over those of ISSO This yearly in,-rease during thmry;:;;;,:;,;;;;;;;,;^;,f^- '^l'^ ,';: The mcn-ase of expenditure dunnu' th. ,ame period ,n- ' " eluding the ad.I.tional interest service, for whi.h we are not responsibh', as compared with ISSO. would amount to 1.02t!,o:)9 10 Difference i n our favor 4. ~7,7777~7, % 63 ■21 15 H> ■ Then' is th.-rt'lore a diirorcnce ot $719,150.26 in favor of our admin- istration as rompart'd uitli iSSt). Now, by deductiuii' the increase in the interest service for which our predecessors are responsible, or a total for the tliree years of .$875,- t>o0.<12 in round liyures, you have a total of !$^,09^>,10o.8^i in favor of our administration as compared with ISstj. This is a very different result from tlie one jireseuted ^o the House by tlie hon. member, and which, lar Jiom beini>- an object of alarm as he pretends, is superior to anvtliiny- done at any time by our predeces- sors. The lii>-urcs I liaA-c just given, all of which are odicial. clearly show what little faith is io be jjlaci-d in my Imn. IVii'ud's criticisms. Tht- hon. nu'mber Ihouuht t<> imiKtse upon llie House and ihe country by an array ol' i;ill:i( ions statements so mani[)ulatcd as to mish'ad tlicm witii rcs|)i ci to (he true Hnancial position of the ))rovince. If he liad the real intcresl.s of tlie country at liciwt. in.stead of strivinu' to dcpi'cciate its Hniiiicial siittalion. he would on the contrary admit tliat it is at present far sui)erior inc\ery respect to what it has been at any tinu' since 1875, l)ccausc dnriiig the whole of that period there WHS nothirig l)ut deficits. In his criticism, the hon. nicnil)er has been lU'ither Irank. nor just to our administration, for not only did he (h» his best to swell up, know- inii'ly and witliout cause, the iln-ure of the expenditurt> so as to make tilt! sit nation appear as unfavoraldc ;is possible, but he even went so lar as to make no reference to tlie increase in our sources of revenue. How (jualify such a criticism ? I charue him with another ay oi" his calculations and arguments. . 1 i". ^^'' """* ^^T^' ^ '^''^^ i'"'^"''"^ ''' statement lor the period from 1 SS2 to 1S84, showing the receipts and expenses, as well as the deli<.its of those three y.n.rs, s..-ondly, I shall take another scri.-s of three years embrac- ing 1S^.^ IHh. and 18S7 ; an, l8!tO, whiclj ' th i is ours li 18sl>, l8s;J 1884 xeet'ipts. E xpenses. >i:i.t;tit'.,(i.-.1 ill $2.874,!t10 1 -,"•■^^,707 21 Deficits. •3 !i;ii>08,8:)8 22 •■).0!i(;.!i4;{ 27 2,82:!..-iii.-i ;,() 3,124.(!lli 'M *8,24.K:)2i 1 Second i)..iiit of compari.M.n ■» •^'.•.<»!IG,47;} 'U 1,28(5 06 .'J01.0:)4 (54 ■>1 ■'«i8.)l,U8 i»2 1 88o , 188*), 1887. K'eti'ipts. E xpenses. >i2.:i2t;,147 Oa !^2,!i;{(;.73;5 8G 2.!»49,:)(;2 1. O ( 3,():;2.<;(i7 2." 2,!»ti.-,..")f;(i i',2 3.288.7!) .!'7 78 1^841, 27ti 112 *:),2;'i8 138 8 !» Point of coinparisdn with the I 1888. 188!». IS!t(l irst and Ju'ceipts. $ 3,738,228 ;!!) 3,4.')0.()(H) IK) 3.4o,'),t;7i> so )nd series ] iXpeiises. !(;o,0: ••) •>! 3. 4'!."), (177 00 3..'!.')3, 170 81 Deficits. 83.04:» 10 323.231 lii |i41t;,>s(J2 17 Surpluses. 44, 00 .■)2.r)0] !i!t M0,A!»3,!»01 i:i ¥10,123,880 17 .j470,O2l 02 66 Now, let us contrast, one with the other, the three series of total receipts : Difference less compared with Receipts. 18H8 to ISOU. 1S82 to 18S4 ^ 8,24r),:524 45 $2,348,;-)Tf5 t)9 1885 to 1887 8,841,270 72 l,752,t;24 47 1888 to 1890 10,503,!I01 19 The series of three years belonging to the present administration ^<00, we count on a probublf surplus of :is4TO,021.02, and on $l,7r)2,()24 of receipts more tliau those for 188.') to 1887. Statement of the expenses during these periods: Total expenditure of 1882 to 188-1 ^ !»,Oit(),4T:5 37 188,-) to 1887 !t,2.-j8j:58 80 " >' 1888 to 18;t0 1(1,12:1,880 17 Compared with the atiii'regate of the expenditure for 1882 to 1884 and 188,') to 18S7: The total experditun' for the three liscal years 1888. 18S!l, 18!Ht. amounts to 810,128,880 17 Less the increase in the iutcresl service for wliich our prcdei'c^isors an' responsible ;)7.">.'.'.')0 (!2 Keducinu' the iol:il amount to $ l'.747.1'2'.i .■>.') Compiireil with the total I'xpeiiditurc for the iis,0:m;.47-) :]') l)ilf.'rence in exci'ss >$ 0.-)1.4.-)t> 18 The real iiiereas ■. for w liich we can h • leid in part responsible, com])are(l with the ihror years of the liisl si-ries. i^ therefore §t»ol.4-")ti.l8. Ijct Us now api)lv tlie same compaiison as \\n} foreiroiny to the second series of l^s-"). l8S(i, l!-iS7, for which our predeci'ssors are respon- sible : Total expenditure from isss to I81i(l si!l.747,!»2!t oo 188.-) to 1887 !t,2.")8,l:j8 8!» iJilfereiic.' over S 48!t,7!'0 (iO The aui^'mentation of tile exj)en(lit ure during the second series of our i>redecess()rs, compared witli that of 1888 to 1800, for which the present (lovernment is responsible, amounts therefore to i3i48;>,790.t!G, after deducting the increase in the interest servicv>. I believe that these tables, based on oflicial documents, will be •bund sullicient to show how groiindless are the hon. member's tears on 67 the head of the fiuaucial situation ol" the proriiKH' uikIt our admiuis- tratiou, and what littlo laith .should \n> attached to his d.ndarations. I was thcreloiv pt'rli-ctly warraiitod in stating- ihsit his critirism was illusory and falcuhxted not only to mislead the House and the country, but to do great injury to the credit of the province. Instead of si'i'kiny to make politi.al (nil)ital with all the blindness of an extreme partisan, instead of discussing- iinance with th.' warmth and t.'inper of a hustino-s dispute, he should have borne in mind that a discussion on ligures sIk.uUI l)e conducti'd with calmness, rellcction and moderation, and that, before treating- with a .-avalier oll'-handed- ness, sometimes bordering- on insolence, thi> opinions of a man who is liis senior in the study of linancial questions, and who has ac(|uircd a certain amount of exi),:M-ieuce in business, he sliouid have h'^-un by hasinu- his .-rilicism on more solid foundations tlian those of the exag-g-(>ratcd .style whirh he has chosen, and on which he h.is huilt up a foundation of erroneous and misleading calculations tliat I am now showinu- up in their trui' liulit. I think I am not - loo far in say- ing that his dissertation will )>e look^'d ui)on as l)un(^omb,' and nothing more by serious business men and bv all engau'ed •>! iinance. ^TATKMICXT SlloWlM^ Tlfl-: HXCK.SS Ol' ()( U> IMM-DKCKS- SOKS' PAYMHXTS C'OMIMRKI) WITH Til HI U IfEiKIl'Ts. I have just g-iven a comj^arative statement ol" th> rec 'ipts aiid ex- penses for t wo serit's of years while our advi'rsaries w -re in i> (\v.'i- I shall now submit aiu)ther statement which. 1 think, c.uuiot fail to ci.m- l>letely (hnnolish the hon. memb r for iNbnituiorencv's i)retensions re"-ard- inu' the linancial aduiinist ralion of our i)reile,'essors. The following- iigurcs are olhi-ial and have hi-en taken IVom the public accounts prepared !)y the otli(-ers of the Treasury under the direction' of the Conservative Ministers: STATK.MENT Ol'" Till': I'AV.MKNTS MADK I-'IMM ISSJ TO ISST. Showing- year by ycarthi' total ol the amounts paid lor ordinary services and th<' amount on capital nccount, with the exception of temporary loans and reimbursements of trust funds: 1882 Total payinonts iji 4,t)S«),18!t 7!* 1««3 '• " 8,024,872 51 ^«^4 " " 8,!h;i.2:{0 07 1«^'> " " 8,74(;,a72 38 l'^^'' " " 8,G82,!ii)2 80 1«87 " '• 4,o80J04 48 Aggregate paynnMits during this iH'iiod $24,581,002 SH REVENUE KECEIl'TS AM) RKIMUUKSEMEXTS OX CAl'ITAI. ACCOTNT. (Exfopt tho temporary loans and trust funds, th«} receipts are those on which we can legitimately count, including revenue so called and reimbursi'ments on account ol'cai)ital :) 1MS2 Ordinary and extraordinary receipts ^ 4.U28,»,)70 4»i 1^>^-'' " " " 2,85»]!o78 51 1^^-^ '• " " :U05.0i;7 22 lf>>^5 " " " 2 07-"{310 '^0 188.5 '■ " .. 'Z^.Z'ZZ'. 3!u.;^riod were llMno.284 02 The diflereme between the receipts and the payments for the period from 1MS2 to 1887 was therefore ^ 4,!»1 2,727 70 This sum repr.'sents the amount expended on account of capital from 1SS2 to 1887, but does not include the amount of the outstandinu" liabilities on the 80th .lune, IHH7, to which 1 will refer in a moment. CO The Goverumonts whit-h prtM^edecl us thorofore iudebttHl tho pro- viuee to the extent of nearly five millions of dollars in the brief space of only six years, and this enormous debt for six years of administration was covered by our adv(^rsaries by means of loans, some at lout-- term and others temporary. To sum up : during the i),'riod of six year '^mbra(H>d between 1SS2 and 1S87, the Conservative ^Governments inci. a;.. ' le debt at an aver- age yearly rate of SfSlSJST.'.H',. This is what was annually added to capital account, in the shape of deficits between the ordinary receipts and expanses, as well as of pay- ments under the head of extraordinary expenses, by those who are light- ing us to-day on the pretext of economy. In the face of such a state of thing's, it come." vith a vcrv bad grat-e from llu' hon. member to criticize our administration and especially to cavil over uiiimi>ortant details. I stilted a moment ago that our predecessors had expended !$t,'.i|-J,- 7*27. T'i more than the legitimate resources of our province during the years 1SS2, lss;l. 1SS4, l^tSo, ISSii and 1SS7, and I no\v prove it liy showing the iinancial operations l)y which this expenditure beyond our resources was covered : On the 30th June. |ssi, the temporary loans amounted to..s; 7')0,()iM) 00 Tot:il amoimt of the increase of the debt from 1SS2 to 1SS7.. 4.in 2,727 7<> Total amount ^ji,'), 002. 727 70 By cash : Cash on hand on oOth June, ISXl .•»; o:')'),777 71 Less warrants of ISS] paid in lss2 r),40;3 48 Net amount of cash on hand >; ."i;)0,:]74 'I'-) Amount of trust funcls received, less re- imbursements 171,054 GO Insurance on old Parliament House 32,70;") 00 In 1S,S3 long term loan l,110,r)00 00 " 1S84 " " 2,303,033 34 " 188;-) Court Ilou-se debentures Io0,000 00 " 1880 " " ,")0,000 00 " 1887 temporary loans 1,110,000 00 70 To nn-ft the liabilities ol" our predeocssors ">,A13J2 to Ilov. Trappist Fathers 10,0(10 00 $5,50(],7-2t) ,")7 r),508,72t; ,"»7 Balance due on :{Oth June, 1SS7 By warrants issiied, but outstanding on ;!Oth .lune, 1SS7 Thus, on -lOlh June, ]SS2, the temporary loans amounted to Wanants issued, but outstandinoc ^ 15!».('01 10 1') 0,001 10 $1,100,000 00 lol»,001 10 $1,250,001 10 This sum of $l,2.V.»,001.1!i represents the amount which we had paid at thai date on account of our predecessors' liabilities, but which was to be reimbursed out of the last loan. Now. let us establish in round fiii-ures what were, on the 30th June, ls,s7, the liabilities contracted and not settled by our jiredecessors, over and al)()ve the anu.unt of >ii4,!»12.727.7') cents ])er acre, payabk^ according to i)r()gress of ^\"'''^« 1.473,H21 70 For construction, rarliament Buildings 75,123 00 Court House 100,4S7 2S Approximate balance, claims again.st (^. M. (). ^: () 00,070 00 Jjoss on l"]xchange Bank deposit 27,000 00 Statues — contract awarded by our predecessors 25,000 00 $2,520,714 4S Cost of construction. Court House and Parliament Build- ings, including settlement of contested claims, say. in round ligures ." 500,000 00 Total amount of obligations for which our i>redecessors are responsible 13,020,714 48 lit 1'.) 48 71 If you luld to this the jvuiount sottlcd to tht" -"lOth June. l^SST. rcpn'sentiiii'- the incivase of the debt from 1SS2 to 1SS7, us t'stiihlishcd liy tlie prrccdiiif^ stiiti'inrnt, viz 4,!I12,727 76 r,933,442 24 Therofoii', the totiil amount of the obligations contraeted from 1S82 to 1«,S7 was !i^7, !»;]•■>, 442. 24. or an increase of !:;; I,;522,240 i>er annum. Such was the result of our ]>redecesKors' operations. If we add to the $;!,02<>,714.4S of objigatious in round iigures the $1.2r)!».(i()l.l!) settled on the -'lOth June, 1SS7. l)y temporary loans and outstanding warrants, we get a sum of !$ t.27t',71").»!7 as the total of the unpaid obligations at that same date and for which our predecessors are responsible. In face ol' such a sum of obligations left us l)y our adversaru>s when they were obliged to resign, how can the hon. mem})er dare to- day to criticize our (iuancial administration, espi'cially in view of the etiorts we have made to imi)rove the situation and to e.Ktrirate the pro- vince from the rut into which he and his friends luid sunk it :" The receipts were insufficient to cover even the ordinary expenses, and deficits in tlu' ordinary budget were the order of tlie day. Nevertheless, in spite of this uusatislactory state of alfairs, we went courageously to work, and, in the very first year fir which we are responsil)le, we managed to bring down a budget, showing a surplus of $37-),<>ading the eh'ctorate, rt'g'ardU'ss of the consequences which such utterances may have beyond the province. MOKE OF MR. 1)ES.TARDIN8' ERRONEOTS CALCULATIONS. ■ The hon. member states : ) i "The jircsiMit svill doiilitless a^rree with me, that it is important to make np the snin of all these receipts, dutsido of the re;,'nlar revomie of the province derived from existinir sonrces when the chanire of .Ministry took place, and to Hee what ha.s l)econu! of all tliis nmney to the anmnnt of several millions, and whether the (iovernment is able to render a Mitisfactiry acconnt of it. " t'.xrhisive of the ordinary rovenno of the province, as it was in LSS(), the present Government has collectiMl the follow inji iiniounts in two years and a few diiys since the 31st .lannarv, ISM7 : k Temporary loans ?l,onO,nfin fiO Lonj: term loan :V")<>(i,(i(i(i (10 From the province 100,000 (lO lncri'a.se, viroiind rents of tin, lier limits, lS.>^s-Sii 47,00(1 (lO Trnst funds, dediutin;^' payments, municipal hwinfnnd and roind)nr8ements.... 1'_'l',.')74 00 Total ,«."), 71 7,54S 00 "Now let ns establish the amount of payments which the lion. Treasurer was obliged to make on capital account : Pavments on caiiital account from .'51st .huuiarv, 1887, to IJOtli June, 1887 — ■ Railways ". $ 11(),30() 80 Payments on cajiital accomit from lilst Junuarv, 1S87, to lioth June, 1S87 — Public buildings '. l.'r)l.',327 48 Jaoiiues ('artier Hank KMJ.OflO ital acccnint \ ""-1 (i.')" "ID 15'iliinw i?l,(i "Altlion;.'li, as will 1»« Hccii, tlicru is a lialancf of Sl,(;(i.|,7!M» l.t'Uci-ii the rfi'»'i|.ts and (■x|ioniliiiir". 1 have noted with astoiiislmuMit that, from tlin niillions « hicli he n'l'civcl, witliin till' List two years, there remained, (iteen days since mi the 1st I'ehrnarv instant, in the hands cf the ( iovernment, uidy a niea;.'re halan'ce uf ?;7ii,.')41, after dediirtin^' the *:)(M';id n Ist IVhrnary, ISHs ' ' 7(i'.vii J'iirt'"''"'' Sl.SSS.L'.VS " What has liecomo of this sum .if cuie miHion and a half of d(. liars, in nmnd ti'Mircs, which should hoavailalile t<< help to pay elf the lloatin^r marked down there in black tmd white what has In-come of this million and a half I The hori. aiember has but one end in view in putting such a question : to insinuate to the House and counlrv that this sum has been misused ; in I'act. he says as much in another part of his speech. But when making this assertion, upon what foundation does he rely? Is it upon a correct system of good book-keeping? He takes great care not to do so, as he knows weHthat figures could not be made to give eA'en a color of truth or likelihood to his dishonest assertion. But, to attain his object, he assumes an air of apparent simplicity, yet one that indicates a'E the same time a considerable amount of audacity, 74 aiul ihis is how ht> proceeds: he swells up the reeeipts as min-h as possible and leaves out altoijerher a part ol' the payments made; lor, if he had included them in his statement, that would have at once dani- auvd his case, which was to exiiihit a financial statement under its worst asp 'ct. lUit. unluckily lor the uTeat oracle of thi' ()i>position, we can easily show thinufs in their true liuht. In a few words, 1 shall clearly i)oini out what my hon. iViend has omitt-d in his untrulhiul and lallacious calculations. The lollowiny- statement will show ai»proximalely the use made of this million and a hall': Purchase ol' ijfround lor iMilarii.'nu'Ut ol' the Montreal Court House in JSST ^i is.oOO no lieli'ii lictwci'ii the ordinary revenue and the ordinary I'xpensi's of 1SS7. lur wliicli ihe memhi'r for Mont- niorcnc\'s friends arc ri'sponsild- (see Tuhlic Accounts "f l^^T) ',]-2A,-2:>\ 1(1 Si)e( i;d i>r cxiiaordinary expenses (see I'uhlic Accounts of l^ss, p;m-,. i;!) ■2-2i)J)-]-2 "li 8peiial expenses from ."'(Mil . I uiie to -list Deeemher, 1 SSS. (see statement of 1 he recei[)i s aiul pavmenis, paife ;•)... 4s.lii'T 7') Incicase in tiie interest service in is.s-:, compared with iSSt;, f,,i' which liis friends are responsihle 12.'),:t.')0 d-J IHtl'erence l>t't ween iheamounlof the l)onds of tho new loan intended to j)ay oti" their liabilities and the net proceeds realized iL'j.tiiix im) Cash on hand on -'{Ist itect>ml»er, isss l'i.*7,47s \*-2 Protestant Asylum. Montreal, loan on niortiraufe l."».(l(Mi oil Ihlference hetween the ordinary re eipts and onlinary exjx'nses from the ;i(l(h .lune to "ilst Deceinher, ISHS, excess (»f expenditure 14S,4,S4 43 Kxcess of expenditure ill isss, as compared with Imhc, ei- cltisive ol' the interest sernce -l.">,7lt!i no Also to he (led u< ted : LMOund rents iind ;)roceeds of sale of titnh.'r limits \ I 47.0(HI (m» 1 75 V 1 (Thcso sums should not 1>,' taken into account hi'lbic thoy ar.' actually r.M-oivcd aiul form part ol' the .sources of rovt'inii' lor issit.) lucreaKc in the expenditure in Issn. ;,s compared with isst). includinii- the increase in the interest service, dill'erenci' over for ti months 1!I4,7S-J 42 |1.H0'),S7;-) Of) T liave just clearly shown hy -.k tual fmun^s, and not after the fashion of my critic. \vhos<' tactic is to jjroceed hy insinuations, that the employment of th-' anK.unts collected 1;! 'e the .list January. Issy. is fully set forth in the puhlic aivounts. ! repeat it: the hon. member's duly should have heen primarily to post himsi-lf up IVom ollicial soun^es heibre makino- such false assort ions ai-ainst the (lovenimeut. Kutiu); he prefers to submit an incomplete statement in ord.T tlie ]>,.|i('r to mystify his hearers and lo pi.rsuade them that a millinn ami a half of dollars have dis:ii)pcared from the Treasury without leavint-' even a trace behind. is this, 1 ask. phiying- a role worthy of a man who wishes to be rcgard'«d as serious, who sets up as the type of mathematical i)ri'cisioii, and who <>-ravely and sententiously pretends to alone innately possess the scien.'e of linaiic." .' No ; there is only one word to i>ioperly cluirac- terize such a style of ciiticism : it is(|uackerv. It is for the House and ( (nnilr\ to appreciate at what it is worth this oriLi'inal mode of accomitiivii". tiie wliole secret of which consists in niakini>- out a stat 'vue -t i.j' the sums received without allowinu- for all the payments nui le, for the sole purjtose of creatin'j a fals.' impression in thi' minds of b;s uudien<.v And this is what thi" hoii. memb.-r terms an expose of the true hnaticial situation of the in-ovince. It is needless to say that a proeeedinir of this kind, when once properly understood by serious men. will have f..r dlect (o show up t)ie falsene,-.s of his calcula- tions in the eyes of all honest people. I must frankly admit that the hoii. nuunber's st vie of criticism is l>e} tonlidenrc of those who seek and like truthfulness ahove all thinj^s. The faet is that no Treasurer has ever had to sul)mit to a more \in- fair eritieism. In all dise\issions of this naturi', men may honestly ditfer ; hut. in the present instanee, from thi^ beginning to the end of my eritie's speech, I have had to eontend against a l 1. or, in other words, our ordinary t'Xpi'nditun- cxcctdt'd Dur ordinary rcnipts to tliat t'xt-'Ul, whi<-'h cou- htitutcM an acfuniuhiti'd (K-lifit of «1, •Jtis.nl 1. However, this is not all Our funded debt, which in lSS-2 amount- ed to !$ 14. 07 1,51:1;!:'). has now readi-'d !5;21..")7ers friends are alone re>ponsihle. Yei. in face of the deliejis. in fa.M> of the in> rease of th>' i'undeil resent;itions auainst our administration. Not onlv do'S he ileny i he e\isi iic'ol the past dehi'itis. whirh are recoided ill Mark and white iii llie puhii* aeeoimls . I.iii h<- also hoMly ivlu>.r> to ainalion ' Such a man is capahh' ol' s. lire j)ath aiul Ihrounh a lahuiiith of in. oinpivh.'iisihle liifures, which In- alon.' se.'iU!* 'X \i) un\v in tlif Opposi- lioii and i»t't ausc he lias niailr iij* his niiuil Id find nothiiiu' u^ood in our iidmiiiistralioii. Ncvt'rtlii'h'ss, lie i.- thi' sainc man who ronslituti'd linn- Ki'll'thi' '■ staiidiiin" apoloLi-ist "' of th" most disastiotis iidmiiiistrat ioiis t hat havo I'VtT y<'t ruled the province llul wliai ihi'ii i^ our LiTi'at. crinn' ' Is it to havf pul an imuI to dt'iifits and replari'd theui l)y sui'1)1um's ' Is it lo havi' raised oui- sonrei's of re\ mue trum s;lI.'.hmi.(iii(I in round lin'ures. as tlu'V stood in Issii. (,, "J;;;. :,;((>. I II (I I iu ISSN, say, an in.'reas • of .si;(H»,Omi w itliin ih ■ space of I \\ > y.'ars. wiihout imposinii' onerou- sacrilic,'s on the taxpayers? ( Irani iuLi' even ih;u niv hoii. I'ri' ud miiilil loyally and reasoiiahlv (iiiler in opinion with me as i<» c'rlain details ol' iinancial administration, should he iini. iih" had any spirit ol" impartiality, liive way Itdore the evidenci' of sii. h lellini;- I'act^. which oU'er so luarUed a contrast to the short. 'oniiniis of previous ;id;uiu;st rat ions ' Why has iieiakcti so inncl> p:;iir-. to mislead I he House ;ind t !i ■ count ry .'' I >o"s he exj) 'ct to attain his (.lijr« i hv simpl\ resiini:' his ease on cdlumiis of hypotlie«ses and erioiiri.iis i»rete!isioiis .' lie should, however. I» • wrll aware that that is lint I hr wav to proeeeil. wli'U I h"rc is an honest desire lo ascer- tain the iru ' Iinancial --itnalion ot a country. II. • will not liiid a s.di- tai\ mill of aii\ coiiipeien. \ in sti h malli'rs. who W'Uild risU hinisell In sii. h a |)a;li witlhuii havinii' at ih'- start rclialtle data lo support his li^'ures and calciilat ions. lor my part. 1 would not .are totindeitake hUch a task without Jirsi hninu' the iie.' ssary olli' ial information in ord'i- to rihli' critic, who has onl>.- a political ohjei t I.I sul»ser\ e. aiid I dare h.dieve ih.il th" 'i:2 (IT 79 Ci»iiii>arf(l with the stntt'incnt ol" the 31s1 .Taiuifiiy. 18S7, wlu'U \vt' ciimt' into ollict', tin- i-xccss iil tliat diitc was n,;!s!>.l)17 11 Exft'ss of lial)iliti<'s ovit assets on -iDtli .Tuiif. isss, as (•niup;ii-t'!' the loan or loss l)tt\vt'('n i»ar and tlu' lU'l sum ivalizi'd 6 !:21.ii7 to cuniplcii' ( "ouit llotisc and raiiianuiit lUiild- ii,ns :2Ja,(>iiii nil U.ilaiirr due I'or imrrhast' of i>-round and otiu-r » laiiiis roii- lir.tcd w ih ih.- sal." ol' tlio q M. ( >. \' O. Kailway... '.lOjiDM 00 C'onlracis foi' statues — ohliyation of ouf in'etlet essors :i."),0(io on These diirerenl sums toirolher 17»rui a total of i^ -If.l.t'aiT '") Tiie ditferenie hel weeU the exeess (if ill.' liahl Hi ies and tills last sum isa.eouiiied Inr l)V the fa< t ihal ih si o| the e..iisl ru. i inn .f ..ur ItuildiliLis exeet d'd lie- credits, whieh were to he .(.vered hy llle loan Sueh was the I riie slatenieui as reuar(U our liialini:- del'i on ihe ;'>///,< the ditreri'Uce hetwtn'U the receipts and ex- penditure which would l)e e(|Uali/i'da lew days later by <('rtaiii receipts upon which we counted. Indeetl. every one knows that the cash on hand at a particular date do.'s not always indicate the true situation, as it ot'ten happens thai at certain dat«'s we pay out more tiiau w ;• t.ike in lie further I'oru'ets to set oil' against his ))reteuded lloiitinii' d>'ltt tlie realizal>le assets, u'hich amount tu sJi.'ino.noO in round ligures. He also adds to the lia])ilities the railway subsidies voted at the last session to certain companies and which will l)e only i)ayal)le u'radually as the works progress. In lliis way. the i>ayment of the subsidies will l»e spread over several years, and. amouii the sul)sidized companies, there will, diiubiless. he s(_»mi' whil will not ■.•onii)i\ with the recjuiremenis ol tiie law. while others w ill la[)se or never g>> into up, 'ration. His ai imn m seeking' t<( saddle us witli ol)liL;ations. some of which r.iav. perhai)s. never have anv existence, while others will l>e j)ayahle onl\ al a reiimte time, is aciually ciiulemned l>y the lion, memher him- sell. w hose present rormal (tpiiiioiis are in C'.ntradiction with his own I'l'iiier de( laratioiis on this verv (jueviion. Here i.s what he said in |ss4 (see Jl,iiis has Ikh'm tuiiiniiUi'il, wliirli lu'iiiUt'ssly it'_"_'ra- \ai('s tilt' |>usitiiiii (if iiiir all'i'ir.s and iin'Vi'iUs an accurate a|(|>n'. iatiou of it fruni Kciiig .'. rnicil. \Vc I avo liccn countin'^ hs a ilclit actually cuiiiracti"! tin- luilancc cif the sulishlics aiitliiirizcil hy l.iw to lie j)aiil to ccrlaia railway coni|>anie, ''i tho :!lst Itcn'nihcr, iss;;, thiM lialancc anionntvil to ?l, nnder.-tand .Moniethiuj: of iinauce, the nulliouft t ' he «'X|iiMi !• ! ie the future, under le/islative .sanction, on ^'real public w 'unnioii. ( Iih'u the |iidihc acconnt.>< of ( '.luada for iSS'J-s;!, .'Mill, ill llie .stati'Mient, aunex-'d thereto, of the Dominion's liabilities for the whole iK'nint - i»e».' the union of the iirovii.cfs, you w ill .see that never ha.s more tliae the .sum actually due on the lii'tli .tune in eai'h tisi I year been taken into account. The Liberal ( i.ivernuienl (f Mr. Mackenzie, as well as its ( 'ouservative predece'^sors, follow e, I tho same sysleiu, for the \ery j.'oih1 reason th.il, linancially s|ieaking, it is strictly th irreet one. Sir Kii'liard " 81 l\i»h ( 'artw ri^rht, lln- l-'inuiicc Minister of tlio l.il'cr.il < i.iscriiin.'iit \s hidi ln-M nUi.c IVmiu 1 >7:! tn ISTS, and iiiiiiiicj-linii.-ilOy ihi' stnmv'i'st aiithi.rily ijf I li<' (i|,|Hisiii(iii in such matlcrs, ik-mt tliniiL.'lit,any inciri'llianSir.loliu lInHf.Sjr !■ raiuis J limk.s.iir Sir Li'inianl 'I'illi'V, tlii'( 'hm.s.ts a- tivf I'iiiaiiri^ Miiiisl ITS since iMiT, nf acl(lin'_' U> llio lialiilitics of ( 'anaila at tli'MMi.l nf a liscal vt-ar llic siilisidics ant)i..ri/c(i 1,\ law, I'lii. m.t yet due, ni.r tin-, sums wliicii will ciTlaiiily liavi' ti) I'c (iisbiirscd I'nr |iul>!ic wurks in course nf cxi'cntiMU. " < Mit 111' till' S7(i,(i(iii.(iiiO (.r tlnTcalMMitH cf cxiM'nditiirt' w liicli arc actually autliorizeil liy till' stutiili's of* 'anada an., Inrt'sccn, I'lir till' liaiauc^' ul' tin' ^'raiit t'l the (aiiadiau I'acitiV 1 tail way ( 'iiuipany. fur tli" luau tii tlic sann' cuiniiaiiy, Inr llic cust nf ci instruct ion i if tin- si'c- tii.n iif tiio I'aiilic Kailw ,iy w liicli tin' < nivcrnnii'iit was ii|ili;.'('d tu Imild under tin' cuntract. fcr till' w idi'iiiu;.' and dci'|>enint,' uf tlic canals, fur tiic liitiTculdnial, fur ad\ ancos t'l tin' I lar- Inir ( 'nniiiiis.siiini'-s of (^utdn'i and Mnutnal, and fur tlic new d<'|iartuii'nlal luiiidiii'.'s at ( )ttinva, lint (11 II' dill lar, and very riL'litly si, \s ill lie added, at tlic end < if I lie next liscal sears, til tlie lialii lilies nf Canada, lief .re tlicy have liccn actually iiaid mit t'nr mie nr ntiier nf I imse t)lijects. '■ Wiiulil it nut, I ask. he allnjether irrejular and e\i ii dciriineiital ti lie ltcjiI natinna! interest iif the credit 1 if the I 'iiniiii' in tn rc|iresi'iit the deht as L'reater hy >7ii,iiiiu,M(iii than it actually is '.' Is it imt, in tlie future intercsi nf t lie cijuntrs , a duty nri niir |iart tn explain that it will lint iiet'anada, as it i,,s tn-day, which will he ri'S|inn.sihle fur this accrued d"ht nf seventy inillinns, hut a ( 'anada traversed thrmi'^hnut itswimle leiiuih liy a u'reat railway coiMiectiu;.' the two oceans, and covered hy a new netwnrk nf several tlmusand miles nf irnii » f , rninlH. It will lie a Canada, with tlie cnMpletinii nf tiie tiiiest and innsi extensive canal svH- « teiii ill the vvnrld, with its L'reat weaimrts imprnvcil, with hiiudreils nf millions nt acres nf fertile laiid.s throw u niieii tn settleiueiit, and .villi all the resources of lialf a coiilini'iii turned to pri'lilahU' aeiomit hv an iiilollijieiil, Htroinr, active and free iieojile. " \\'liv lint a|i|ily, t iicrcl'nre, tins rule sn just, liiL'ical and cnrrei I. when iiiakiii„' 'i|i tlio tiiiaiicial sUiteiuent lit niir jimv iiicial deht " < »ii the same iiriuci|ile that t!ie ti^'ure nf tiie nrdiiiary exju'iises nf liie 1 mi llic service nf tlie ]irnviuci' slmtild iint he ma.L'nilied hy aildiuL' therein the exiieiiditurii ft wnrks iminitalile to capital, the aiimuiit nt niir lialiilities shniild lint he swelled up liy coiMitiiitr, as deht actually cniilracti'd, sums w hicii vv ill only in- paid after tiie fnlldinent. iimre or less reiiinte, ot certain conditions extremclv heiielii lal to the cniintrv s prnirress, or sitins vi hich, |ierlia|is, as iiiiirhl ver\ wi'll happen, may he never more than partly expended. The jirov ime nf (^uehec, w liii'h will he respniisihie for the accrued deht of nearly .>LV't " i,'"" ', if all tiiis siiui he exju'iidi'd, will lint he then in the same pnsitinii as it stands tn-day, hilt w ill he i;ie pmvince nf (^iiieliec w illi yreat railwavs exiciidinj; to J-ake St. .lo'm and to remhmke, to the imrlh nf .Mniitreal and • ittaw a and tn the Maiii(> frontier, with stately lefzislative and departmental huildines, and a inaitniliceiit i mirt Imuse in its capital city, it will lie, aiinve ail, tlie priv ince ,>( (^uehec, w itii till' millions I if acres of land of the Sajiiicnav , of the tii"vnshi|is to the north of >h ait real, nf the valley of the ( >ttawa mill of lieance throw n oik'ii to a more rapid and hetter system of cnlnui/.ation, aiiil w illi new iiindes of coiiveyanee fnr provisions and tiinher to facilitate and extend liiiiihi'riii'.i o|K>ra» tiniis in our vast fnri'sts of tlie North ! I, for one, see in it a very ^;ruat dill'erence, " i am positive tluil im iiiirchant includes atuou^r his liahilities a deht which lie intends tn cuntract in tlie fiitiiro in nrder to imjirnve the facilities for coiitiuiiiii_' and developing' Im conini'rcial npcr.Uiniis. Whv t hen keep up in our provincial tinances a system nf Inmk- keopiiiii wliicli i .iniiol he fniind m the honks of any of the husiness houses of llie cnuiitry V Till' hull, nii'iiihi'f Inr Slioi-lii'iiiilu'. thi'ii Tri'tt.suivr, nlso i'.Ki>ri'.'>.'S4, p. '.HIC). As \vi' liavi' |tisl si'i'U. till' lit! ^'I'iiiifis III I ho hull, iiii'iuli T t'lir Mmit- liloielli'V Wt'l'i' .so cinpliat li' ami milili>l iikcalili' mi tills ln'ad llial I aiil juslilii'd ill askiiiy \\li\ In- Imltls lanii'tiati'' so tlilli'Vi-iil lutlay .' Is it siiiiplv ln't aiisi' lii.s iVii'inls aii' im Idiio'.t in power.' Ili' ran jiossihly (i 82 hii\t' 11(1 otlicr n-nson. l>ut llirii wluit I'iiith rjiii you iittiich lo his di-cl;,- Tiiticiis iiiviiit,'," hiinsclf out ;is the t>iil\ nliahlt' man on liitsi' (|ui'sii(iiis and nuulcstly posini:' as an autlioiily on linancial nialliTs :" 1 tliink'I have suliicicntly sluiwn tin- al»Kurrovin((' is at tiiis nionu'Ut in a ln'iicr state thant'V»'ril has lnvn sinci' ls7»>. Hut this I had already amply proved V>y my statement ofreceijits and expenditure, showinii' surjiluses instead of delieits and a lartro increase in the revenues as conij)ared with the vear l^iSti, n \t';ir, hy the way, wrongly selected l»y him as jxtint ol'coui- piirison. because it tlot s noii>ive a correct idea ol tlie average auufUiit oi the receipts and the expenditure under tlie precedini>' administrations. I think 1 have dearly exhibited the sitiu\tion as it was on the ;5otii June, ISKS. We have ci.ntracted no othereiiijaifenients than those whi.li have been laid belore the House and api)roved by it, that is to say, the settlement ol" the .lesuits" l<]slates and tlie railway subsulies, both measures whicii. it' I am not mistaken, received thesupjxirt ol my hon. friend himself. 'I'liis is all that has b-en done, and this policy has been sanctioned }»\ the House, a circumstance w hich lea ves the erroneous and mish-adiini' criticism of the member lor Montmorency withoxit a shadow ol just iticatioii. THI'. LO.W OF !si3,oO(>,0(»0. Here aiiaiii \\ e have a specimen of the hon. meniliers false calcula- tions. Tlirouulioui iM\ whole businesN career I ha\e never yet come across anythinii- like tlicm in the wav ofcriti>ism. and it is really ;•. ([uest iou whether I sliould noiire such insanities as those contained in this part of his speei h. Here is what llie hull member stated under the head ol '■ The loan of !5;:i,.'»(Mi.(lllO ; ■ "'I'lic ll.iu.Hi' an^l the previiicc will n'rall tliat llie < >e\iTiiineiit have rr|)CMt«'ill\ .icchircil tliiil they .piil_\ ciihtrucled the Im.mi <<( ,>'... ")U(i,U(»e la.st year, I'ccaa.te they were feneil t.i dose ill (jnler lu p.iy ell' the .ilili)iatl(ins el' the tlealinir ileht lpei|acalhe.l to thl'llihy their pri'ile- cfss ,r.s. The Hell. I'rfinier iiiul the lluii. 'IreasMrer a.tserteil this over iiixl (i\cr au'iiii" hetli in lhi.s IleiiM- and uiit.'-iile ef it. S i that there iniyiht imi he any dunht en this j.eint, they went I'Mrthcr and a-s.-^erted it through their su|i|iiirterH in the ilniise, «s well an in the vei y jireiinilde r the law ant heri/.iii^' the lean. That pre. imhle eniinierateH the ditlerent .■blii.M- tieiis \s Ijirh the (iiixernnuMit pretended tiiat they weidd lie ferred to pa\ at a ver\ early s:5 f .lilt.-, iiii.l -.■i.s fc.rtli that It \\aH solely |,, r t tli.'s.' i,ayiM..iil.-. and t.. honor tli.' .■iiLM".'in.iit< ..t til.- |,rovin.'.' that they .l.-sin-ti to l.orrow. Xow, what S,),;i;iI on wliat you j.romised to |.ay oil with the j.n.ceeds of the loan. " I will !ie asked, what has hecoine of this sum of s:l,(>85,0:?l '.' ' " WlK're IniM it^fone' A portion, to the iinioniil of seven hundred and s .me thousand tlollars, has heen lined to |.ay a sum on account of the new sul.sidies \<,te 1 t(p railways at the demand of the ])resent Ministry, and the halance of nearly a million has heen swaljowed up hy the deficits aiicl liy the really extraordinary increiise of the ex|ieuses of the province, for which th»! present (iovernment alone hear the wei;.'hty respoiiisihility." This is what tlu* Hon. m«'inhtT fur Moiitmoi-cncy savis ; Imt, st'i'iiii>' that it has already In'on repeatedly eKlahlished that the !$;;,;,()(i,ii((0 loan was necessary to meet the (d)ligations left us hy our i)redecess()rs, it is useless to go into new and tiresome detail; on the suhject. The hon. meml)er savs : "What is the situation to-day '.' The tliKt'c millions ami a half have heen horn. wed. To this amount has heen added two millions and a ipiarler collected from the com nial corporation.s, from Ontario and from the Crown lands, or a total, as 1 have alreadv stated, (.f more than live million seven hiiudreil tli(.iisaud dollars. All this money has heen s|K'nt.' It has dis.ipl«'are 1, auiiln>al From thi' coniiiurciiil lorpoiatioiis since 1st .Inly, isss. Ill rcasc oi' liiound rents, tiinhcr limits. IxmT-ks Auction siilc un(l icnis oi timber limits. 1hss-H!) Trusts 117..') si 47,0(10 li>tia- tion «)i the ])ermancnt loan, and that it was repaid out of that loan ; this. at one stroke, knocks oil" a million from his pretended receij)t of s,').7l7,. ')4S, so that there is only a million antl a <|uarter left instcnd of two millions and a qmirter The i? 100.000 from Ontario and tlie >;:):)S..",!I3 from arrears of (axes are entered in the |mblic acconnts for isss jind it is with these sums that I (.btained ;i surplus of >?:!7;l.l!'"; The emplovnieiit of these amounts has been suiliciently explained in my lemarks on that vear As has been seen, they have been eniploye for the delicits of ISSO ami IssT and to meet at the same time (he addi- tional amount of interest \vhi( h we liave (o jtav ami for which we are nol resi)onsi}>le, say. >il'2r).000 a yi-ar in round liiiures. j-or (hose two years (his makes a sum of i§-2.')0.(iii(l more (Init we have to pav. Next, it was not 8'^,-')0O.000 lliat was yit-lded by our loan, bii( .ii3,:J7ls.:!32..V.i. which makes another dill'ereiice less of !iiil21.()tJ7.t!o. t» f* 6* A\ c li;i\i' jiiNl s.MMi ih.ii, (,| ih,. iw,, iiiilliuii.s ;iii(l ii <|U;iit.'r w lii< h th.' III. II. iiii'iiil).'!' siiv«; wi- r-Tcivrd ,.v,M' and :il.n\,' ili,. s;!,:,(i(f,MtMi ,,| ih.- l\' Montreal, which are entered in the puhlic acc(uuits and whose emplovmeiit i< then-in explained As for the other items. I hey form part, as I have already conchlsi\('lv proven, of t he receii>ts upon which we cojint to meet the expenses of the ordinary puldic service. In the lirst place, i he hoii. member makes a inistaki' of a million in his • alculatioiis ; which is (Uily a trilie with him, it is trui-. The million of temporary loans was roitlaced by an equal amount out of the s;.1.."iIHI,. 000, t^o that million in his statement is counted i\\ ice Secondly, lit' brinu's in oilier i/ems, which should disappear, for it i.s unjust to revive them under dill'erent forms at one ami the same time ; they have already been discussed and it is \iseless to revert to them. Now, of all this amount of ^.I.TIT.'W^. which lie has paraded with Kurh a llourish of trunii>ets in order to iini>ose upon the public credulily, of all this aiu'i'dote about t wo millions and a (juarter collected moi'e than in I8K»), tliere only remains therefore the product of the permanent h)an, IMAGE EVALUATION TEST TARGET (MT-3) k A A a"- ^<, 1.0 fM IIIIIM I.I 1.25 2.2 ii: ii£ illllO 11= U i 1.6 V] <^ /] /y 0% ;;> js; >^ c^ Photographic Sciences Corporation 23 WEST MAIN STRl'f:T WEBSTER, N.Y. MSSO (716) 872-4503 it' #? ^ ^/ f/. J 86 which is $:l,37S,33-2,.'')0 and not $8,500,000. All the rost has heeu duly accounled i'or. To sum up ; my hon. friend's persistence in seeking- at all cost to lurce me to render account, twice and in two diilerent ways, of the same amounts, is simi^ly ridiculous. This manner of doubling up the figures to suit himself is nothing more or less than a mystification, which the House and the country will know how to appreciate at its proper value. There is nothing astonishing in the fact that, once started in this false direction, politit^al fanaticism should haA'c impelled him to the wildest ccmclusions. With the most serious face in the world, he pre- tends that, of the oldigations of the floating del)t on the olst January, ISS". enumerated in the preambh^ of the law, there still remains to he paid a sum ol >;l,i;K."),!i:J1.4r). This is only another mistake of addition on the part of my hon. friend. With the proceeds of the loan ^3.o78.3o-2 00 we have paid on the obligations spei'illed in the pn.^- ambleofthelaw ' 2.-2S»1.23t».4."), as he pretends, but only $1,0!»2,037.30. Here tlierefore he makes another trifling mistake of §593,804.15. He does not take into account either that on this balance we have been ol)ligcd to pay over and above the obligations eutimerated in the pream])le, and for which his friends are resi#nsil)le, the sum of $400,000 and ui)wards in rotind figures, which proportionately reduces the balance i)f the loan. This expenditure was occasioned l)y their carelessness in drawing up the contracts, whereby the door was left op.>n to contesta- tions and claiijfis for extras recognized as legitimate by the engineer and officers of the department of Pul)lic Works, and which we wi>re forced to settle. La.stly, if ac(X)Uut be taken of the cash balance and the assets, the l)alance of !|1,0!»2,037.30 is immediately explained. «#•' 87 Tho hon. meuil)t'r iiiuuot ci'rtaiuly be serious in pimiu'U' us suih questions, or, il'lie is, he speaks on a suhjeci which lie does not uiuler- stand. It is neiMllcss to say any more on this head, as the House and tlie country must liy this lime thoroughly comprehend \vhat opinion should be entertained nf tlie hon. u-.-ntleman's veracity. Till-: rKOYINCIAL AND THE M0NTR1']AL LOANS. Here is what the mcml)er lor Montmorency said of our last loan : — " I alsn wtric'h tiie Ministry liad lieeii (ililiiicil tn hnrrie.lly cincjude with the Credit l.yon- iiais, after their uidurtnniite New York eiiisode, had canseil a loss to the i^ruvince uf a I'on- sideralde anionnt, whicii, takin.L' it at the very lowest, I tiuui calculated at .■rl7-"),iMii). I lihuned the Ministry for having' .sold the bonds of thi.s l.ian at a rtxod price, instead of oller- inu the)n on the nidnev market to the coniiietition of jier.sous in search of sure and ailvanta- {.'eons inve.stnients, wherehy tin' province had lo.st the .sure jzain which it would have derived from .such compt'tiliou. " When I thus siinke, I luul no idea that hefore six months an important event would occur to hear me out conipletelv and to destroy all the ( iovcrnment's pretensions to a linan- cial su<'cess in the operation of "their loan. The city of .Montreal ne'j,otiated a loan of .several millions in London last fall, 'the c.rporation deputed the nuiyor of the eity,_ lion. Mr. Aliliott, and the chairman of the Tinance ComnnUee, Mr. ■laciiues (Ireuier, one of the most devoted partisans of the pn>sent ( iovernment, and, 1 believe also, the city treasurer, to ^o to London for the t)urpose. 'flie Montreal delcirates put up the city loan to c.tuipetition. The rate of interest was three jier cent, and the loan was issued at a mininuim of Si',}. It realized an avera>je of x:t and a fraction. (Mlers, for a pretty larvae amount^ went as hidi ad Soi. I'.v the soU'ellect of compelition, the corpor.ition of Montreal re.ilize I over iri'.'i.Odu. pr. "(.outrast this Montreal loan with that nc.rotiated by the Ministry on beludf of the \ 1 nci* ' ' "Th. (.iovernment obtained from the Crcilit Lyonnais W jier cent., less exi>enses. forti.e 4 per cent, bonds of the iirovince. " The eorpcratiou of Montreal obtained s;',, less expenses, for the!! percent, detienlures of the city. % '• l'',i>ditv-lhree for I) per cent, securities is eipiivalent to lli) for -1 jier cents. Now, the (T.»V(>rnn'ieut onlv obtained ".•'.• instead of lie ; that is to say, that the terms of the Montre.il loan are 11 per cent. Ix'tter than those of the provincial loan ne^iotiated by the ( .overninent. The dill'erence 1-ss of 11 per cent, represents, (Ui the jirovincial loan of ^;;!,.^(Ml,^(Hl, a loss to the province of e^oS.^.dlid. This is alreadv far too nmch, but it is not all. lie.sides the loss of capital, there in a li>ss on llie annual interest to be paid. TIk; real interest which the pro- vinc.i pavs on its last loan is 4. IS percent. That of the city of Montreal is only ;! i.e per cent u d"iirereuce of (I. ")S per cent, in .Montreal's favor. The diU'erence ol n.,-)S per cent, in the real interest on #:'.,.")(I0,(M)(I amounts to s;-.'e,;!oil a ye.ir, and, on forty years, the perio I lor which the bonds of the lust provineial Imm have to run, the lo.ss will be SSl'_»,oiil». 88 " I.i't. i;s iitiikt' tiio iuliliriiiii : — " ],.iss i>( 11 i)er (viit. 1)11 tlio caiiital 8 ;3S."),00(t LnHs iit'o.oS per I'eiit. n(),(Mi(i; S20,8t"i a vcar anil fur forty years '. SlL',(iy the city of Montreal, those of mir luau represent a certain, imiisputaMe loss ti> tiie i>rovinco uf ,'?l,lii7,000. Evidently tlie .Mini.stry )ia\(' no reason to lioast of tiiis success." In my ])ndget. speech, last year, I ii'ave all the explanations possible as to the nature of the steps we took at New York to lloat our loan ; it is therel'ore needless to g'o again over details which have no present actuality. 1 may be permitted, however, to simply repeat Avhat I then stated — that our nco-otiations in New York would have succeeded only for an accident which it was impossil)le to control and which, ultimately, was the or .y cause ol' our want of success on that market. In any case, the province lost nothing by it, for it was, owing to those negotiations, that we were brought into contact with the Credit Lycmiiais, one of the most important financial institutions in France, and that it was through its medium that we succeeded in negotiatinir one of the most advan- tageous loans ever yet contracted by the province. It was, thanks to this institution, w*^ obtained so hiuh a value for our bonds, for the very im- portant fact must not be overlooked that otir own banks in this province did not seem disposed to take much Miterest in our loan, and that the offers which we had received from certain English banking houses were not suliicieutly encouraging to indtice us to continue our negotiations with them. Indeed, we were reliably informed at the time that there was a complete organization in London to th^feat the loan l)y imposing upon us the most onerous conditions. The member for Montmorency should be the last to blame us for not having put it np to public competition. He, undoubtedly, knows as well as I do that certain of his political friends looked with an unfavorable eye upon the negotiation of a loan on more advantageous terms than those previously obtained by themselves. Moreover, the hon. member is very wrong in giving it to be under- stood that our efforts were conhned to the New York market, when it is to his knowledge that we were also in correspondence with English banking-houses ; \n\t the oilers which came to us from that quarter were, as I have already stated, not of a nature to encourage us to i>ut up our loan to competition on a market, in which there was a combination ii 4u 80 to dopreciato tho valu<' of our l)on(ls. It should not be forgotten that the hi^st ollvr \ve received was from 02^ to !)4, which was inu'di interior to the lirm i)riee of the Credit Lyonnais. How can the h on. member, under sijiih circumstaufes, have the face to criticize us to-day i'or not havino- ofTcred our lionds to public competition ^ He is neither acting frankly nor loyally when si>eakinu- in this way ; account must be taken of the value of our .') per cent, bonds. Avhich were quoted on the London market at lO'.i to 111, equivalent on the average to U per cent. IMore- over, our English correspondents gave us to understand that, in the event of our deciding to ])Ut up the bonds to competition, it would be impossible to lix the minimum at more than 05 per cent. In view of the state of our credit on this market, where our predecessors had never obtained more than par i'or our live per cents— was ii prudent, I ask, to offer them to ('ompetition on so unfavorable a market V 'i I The hon. member is therefore not serious in his criticism. He appears to forget, knowingly or not, that our predecessors :iever dared to risk public competition and that they had always been satisiied to accept a lirm price under pat for their -'> per cents. How can he have the assurance to blame us to-day, when he had not a word of blame against the (Jovernment which he supported, for having sold our 5 per, (^ents at a firm price at par to the lUmk of Montreal and when the latter a few days later resold at T per cent, premium the very same bonds which it had just bought '? Why did he not then criticize that GovtM-nment for not having placed those securities on the mark(>t and for having made the province lose the profit of T per cent, realized by the IJank of Montreal ? Less than two years afterwards, we go into the same market and obtain as high a price for our 4 per cents as our predecessors did for their a per cents. We can judge from this what i» the worth or value of the crititdsms of the hon. member, who has always two diflerent scales at his command when needed. Neither does the hon. member act in good faith when he states that we caused the province to lose a considcn-able sum by selling at a fixed price instead of ottering our })ond8 on the money market to the competi- tion of parties who are on the look out for safe and reliable investments. He seems to forget an important fact— ^.hat the market in question had been practically closed to us by the financial mismanagement of his friends. !M) The hoii. mt'inbt'r extols the recent loan effected by the city of Mon- treal on the London marki't. a loan w hich had the sujijiort of the Federal Government's entire credit on that market, compares it with onrs and draws therefrom the most erroneous conclusions, as 1 will sJ»o\v in a moment. The real price obtained for the city of Montreal's debentures is not {' capital, there i.s a Ins?- on the uiiiinal iiitorest tu ]io jiaiih The real interest whieh the ]irnvince jiays (in its last tian is 4.1s jut cent.; that of the city cif Mnii- treal is (mly :i.(i(i a ditlerence dV e.."iS jicr cent, in Montreal's favor. This (iiU'erence of 0.08 per cent, on the real interest of ;^;').,')0(i.Oii{) anioiint.* to •?20,:!(i() a year, an,<>()0. Let iis now sum up his calculutions and see what is the tru.e diU'ereuce hetweeu these two loans: Loss of 11 per cent, on the capital, according- to Mr. Desjar- dins )i^ 38o,U00 Loss of 0.r)8 ou the yearly interest of i5!3,50O,()00 ; !^:20,300 a year during forty years, say 812,000 Totalloss $lJlt7,000 " Thns,"— siiid ho— " as (■(nuiiari'il with the terms ohtuiue.! hy tlie city of :M(vntreal, tlioHC of our loan reiire.sent a eertain, imliwpiitahlu !oi-.s to tiie iiroviuec of i^l.iyT/KlU. Evidently the ^Ministry have no roason to hoast of thi.s suecess." Such is the liuio-uagc of the honorable member who boldly dt>clares a certain, indisputable loss of !^1, 107,000 ; but the real and cfrhiin loss in principal and interest is only !^420,000, whii-h is a mistake of 8*770,000, or a sum of over three quarters of a million less than his cah-ulation. ^\ e have here again another sample of the hon. member's certain, indisput- able calculations. It is true that, in financial matters, he is of a very elastic turn «»f mind and exceedingly free with the arithmetic ; millions count for nothing where the object is to saddle them on his adv^^rsaries, and he allows no obstacle to stand in his way whenever he desires to injure a political party not his own ; he distorts and misrepresents facts with the utmost cooliu'ss, apparently l)u.sies himself in making up additions and stibtrac- tions, which are i>f no value, for the mere i)urpose of leading his hearers astray, and puts down any figures that pass through his mind, us we have just seen in the case of the famous comparison betwa^en the Provincial and the Montreal loans, which is from ln'uinning to end only a tissue of errors clumsily put together to impose on- the public credulity. This is the man who accuses me of being a pessimist in Opposition and an optimist in the Government. But there is something stronger still to confound the hon. member. He, the great oracle of Unance. the authorized mouthpiece of the OppositioS, in whom it has placed all its confidence as being the only reliable man in such matters, he seems to have forgotten, knowingly or not, to tell us that the Montreal loan is a perpetual and consequently irredeemable loan, that is to say, that it l)inds the [, of loss a year between par at 3 per cent, and 3.85 which the city of Montreal is obliged to pay fon-ver, say, |20,750 a year during- 40 years, amounts to i$l, 190.000 Grain to the province s^l, 703,750 The loss to the province during the first 40 years by its loan at 4.05 instead of 3.85. which the city of Montreal now pays, will amount to 420,000 Gain to the province of Quebec.... s*;!, 373, 750 All considered, tln-refore, our loan is in reality as much superior to that of Montreal as the hon. member has endeavored to make it apj)ear inferior. Moreover, it is really inexcusable on the part of a public man, who poses as a model of mathematical precision and financial erudition, to serioiisly compare a perpetual with a term loan, and to carefully con- ceal such important details from his liearers. in order to arrive at the miserable and ridiculous conclusion that 4 per cent, at 40 years is worth less than 3 per cent irredeemabh'. Such caleulations indicate an ignorance so self evident, and of a nature to lower the hon. member in the estimation of his I'riends, that I cannot do otherwise than come to the conclusion that he has acted knowingly throughout his erroneous statement, as, in fact, he has done throughout his whole criticism. 4 t " THE FINANCIAL POLICY OF THE GOVERNMENT. This is the title with which the member for Montmorency has headed another part of his written speech, and which I projiose to quote freely from in order to clearly show the House and the country that I oa 4 Y do not fear the light, but on the contrary that I desire to sqiiarely meet and dispose oi' every one ol' liis lanie arguments. " The situiition is iJiruvc. It is useless to roncfiil tlic fiirt from onr.solvt's. We nmst imt llattiT iiiirsclvcs witii Viiiti ;mii I'atiil illiiNimis. Tlit; ii\vaki'iiiii<; will he tiTrii)li'. It is iii- liiiitt'ly hettiTtu ciilfuhitL' cxartly Imw we .stand. " The (irdiiiary t'xpon.ses 111" the ])iil)lic sitn ici- (if the ]iru\ iiicc, the avera<_'t' nf which, iliiriiij: the fiscal years from Issi' tn is8ii, had liccii ^IJ.driO, 0(1(1 in roiiiid li).'uri's. hav(> in two years, been increased by the [jresent (nivernnient tn tlie tiynre of .■<;i,()r)(l,(Ki(l. We have here liierefore an average increa.se of ;(i(iO,o(i(i, and the jirodigality of the Ministry .> I'vi'u at this. " As for tiie revenue, it has also increased, lnit not in as lar<;e jiroportion.s as the (Wiieii- diture. As for this tleveloimient of the n^venuc, the old (ioverni(;nts and their friends liave alone the rifrht to claim for thenisclves nearly the entire merit. With the single exci^itioii (f the iironnd rents .f the timber limits, the stnmiia^e dues, and the license dnties, the (iovernment are indebted to our linim-ial poljiN fur tiic now sources ipt of •'r:'>,4o(i,0(i() a year in round fiy:ures. This woidd be sullicient for a wise, jtrudent and ec(int. This makes all the diff'erenee in the world. It is easy for the hon. member to invent delicits— all he has to do in that case is to strike off from one side and add to the other. This systeiu of iinfurinir up may have its merit in the eyes of somt^ people who are not in a position to p.'rsonally verily the accuracy of his calculations, but such exag-g-eratiou cannot deceive any person qualiiied to urasp the true situation. I say that the hon. member's system of misrepresentations is in the highest degree reprehensible, in the sense that by distortin,«r the true facts of the case, such a line of conduct is of a kind that will cause a serious injury to the interests of the province. Even if his assertions were true, he would still be very wrong- in speaking and calculating as he does ; but what opinion can w^e have of a man who, knowingly or otherwise, cooly misleads the House and the country as to the true financial situation, which, far from being in the alarming state that he wants to make out, has never since 1875 been as good as it is at this moment ? If the situation be so alarming with a revenue increased to the ex- tent >f half a million and with the average of the controllable expen- . diture very little higher than that of past years, what must it have been when our predecessors had nothing to show us but deficits of #300,000 to !i^400,000 betw^een receipts and exp.Miditure, and of upwards ol a million and a quarter in the expenses on capital account ? I say it and without hesitation : ray hon. friend is not serious ; his language is that of a wag. After having run down the financial situation of the province, as far as it was possible to do so by having recourse to all that is erroneous and false to show it up under an aspect which is not true, h;^ does not rest there. He is not yet satisfied, but goes further still and furiously attacks the proposed conversion of our consolidated debt by usin<»- figures and statements which are not one whit more reliable th^n thos' he had previously submitted. He does his utmost to depreciate an operation, which, if it should succeed as we desire, would have for effect to relieve our budget on the interest service of a considerable ;>.') sum that would be vt-ry useful to tin- itvoviiK-e at a time when there is^ s(» much to he (h)iie to ameliorate its condition. He is .so anxious tO' destroy the prospects oi' a transaction, which is wholly and solely in the ,!:eneral interest, that he even goes so far as to represent, as vaiiv Utopias, projects, the success of whit tlic tlflit aiKJ the iiuTcasf'ol' the Ftnh'ral Hubsidy in confdrinity witli the resolution of the Iiitcri)rovincia]> (.'onftTLMiro." He opposes these two projects as not heint? realizable. He gO(>s- into long calculations to prove what? That the conversion' will not produce precisely and exactly the amount mentioned in the Hon. Premier's speech at the banquet of the Club National. According- to his Inw and infttnihle calculations, he comes to the conclusion that it. is impossible to elfect a really advantageous conversion. Thus, the hon. member admits that we have stibmitted a general! iinancial policy, the object of which i.« to increase the revenue of the province, but he adds that two of the lueasures threaten very much to end iu complete tiascos : the conversion of the debt and the increase ofc the Federal subsidy. Naturally, these tw-o schemes do not meet his views, for the simple reason that the initiative iu the matter has not come from his friends. If iluy had originated from his side of the House, h*; would hold very dilh'reut language from that which he uses to-day. Instead of having recourse to arguments by which he attempts to prove that they will not attain the object which we have in view, he would find th*>s;^ measures- exc*dlent. It is impossible for the hon. member to remain in an exact m'edium, and to allow to his adversaries that share of merit to whicb they are entitled. All that emanates from his friends is perfection, but the case is iust the opposite when his adversaries are in q.uestion ; he. then sees all things in their worst aspect and it is he who then becomes the real pessimist. The t-ictic pursued bv the hon. membcf on thes.^ two questions is. his usual one— to try to instil ( oniidence in hi« hoarers by telling them- lit; %vith ill! iisHiiiiu'd uir of sinciM'ilN' that he Iiiin s<'rinusly studied the sub- ject iuhIct disfussiou and that his i ah-nhitioiis art' accuratt' and unassaihihU'. But wt> now kn()\v thf valuo to l)i' plact'd on his di'i'hira- liciis ill this n'spt'ct. and also ran say ht'ion'haiid, what will he his lonrlusit.n.s. that is to say, that thi'y will Ix' always in the stMisi' that lio dt'sii(\s I hem to 1).\ according to the interest at stake. If he favors a eausi\ 1)0 it liood or had, he is sure to always lind it uood, especially if it ))e of a natnre to henelit his party and i»roniote its interests. lie states that the (lovernnieut cannot count u])on the conversion of the deht to diminish the expenditure. 1 Naturally, as he is not desirous that this nu-asure should he brought to a successful iiisue, he takes care to manipulate his iii^ures so as to suit hi.-; purpose. I am familiar with the lalculations which he has suhmitt^'d, for I have nuide similar ones myself, as ^TeIl as many others, of whicli he has not spoken, bet^ause they miiiht damage his cause. As 1 do not intend to allow this i)art of his demonstration to reinain unchal leu Lied, I am o1)liged to cite him textually: "'liir (iiicistion ■' — .s;iirrocl, ratiniial and wi'll-foiinded ojnnion on the .suliject, I have niailc Huino (-('(Milation.s w liicli 1 lielievc In Iw really unassailable and I liavo fonio to tln' (■l.^n'ln^i^ln that, in the aclnal state nf tlie niarUet and the present rating: nf our !)i)nd.s, a X'lliiiilarv eon^erKiiin would only seiMire us s(Hn(> imniodiate lienelit l>y saddliuij; ]pro|inr- tiiiM.il>'ly the near future with much heavier t)bliv;atiiiii.s. " It «u» while I w .IX niakiuf. these ealenlation.s that 1 lieeanie further CDUvinced a.s to tliG extent '4 the Mini-»try's mistake in liaving launelied out so imjirudentl.\' into this adven- tiirnns Si-hiMne ration, announeed so contidently and made with so UHich ability aii-l darinir, enunciated his projcict in the jrreat spet'ch whii-li lu; delivered at the tiaiitpit't <>*" the • lub National, last si)rin>.'. Without l)eforehaiid taking; the trouljle to properly itost Imnself up, be declared that, by the conversion of the debt, lie wriidd effect m. uaviUL' w-iich mi^ht run up lo as nuicli as S"-'.')O,0(Mi. It is easy to immediately jjerceive how t'xau'iieraTi'd this (ijriire IS. It was not i)nssible to exitect from the conversion more than a j;ain of one per cent, in tlie rat« of interest. Now, to ol)tain a saving' oJ S2."i(),fHl(t by means of U redU'tt^Mi of one \»'r cent, in the rate of interest, we would have to convert ,SL'5,0(l(l,(>f)0. But -th tl\e "ituh .tuiw'. I'«"^''<, our I'onsolidated debt only amounted to .■?L'1,570,;JI>;>, say, nearly tlirev millions and a liaH less than twenty-live millions. We cannot convert more tiian we owe — thill is perfecth' I'Uiar. " I.s it possible t>i convert the whole of our consolidated delit of $21,570, 3.'!3 ? Certainly not. Thi' last loan of $;),.")t>", to hi nvi'i'ti-d $14,18") 27;! '■ li' tlii.s debt of SI 4,1s."), L.'?:! I 'on Id Im con vcrti'd at par, liy 11 rcdnction of laic per rent, in tiiii interest, the annnal .saving wonld lie SI ll,s.")L;,Hay, :?lo.S,|"4.s less than tlic snni calruiatcd hy the lion. I'reniii^r. This mak 'h already a dillerence which shows a rednction worth s|Knikinf.'. " Unt it is certain tiiat a conversion at par is not [lossihic. We wonld niiiimditedlv Inivo to p;iy a idirh jinnninni for onr own dehentnrr.i repn'sentin^' onr delit. Would there' hi; in an operation of the kind, a snilicient niarudn li'lt lor ininiediale aihantaires to the |)rovinc(\ which wonld ontweij;li the sacritices it wonld I'utail npon it in the future'' 1 do not. la^sitate to say no and I base my conclusion on the f.illowin;,' ■•alcidations which I imv 'uade on thi^ round Sinn of Sl4,n()0,ll(i(l, In the lirst place, there is n(, douht that, at the m. inr-ity .if tlie juri'sent bonds, we may borrow at ;U ]ier cent, at par. The rapid devidopnumt ,1 d ail\ance i4 the public credit and the ))rodiL'ions accnnuilatJon of rapital in onr times whii'h will ahvuys pi on incnnisin;_', thaid-.s to the astouniling aitivity of tlie means of (iroductiou which are getting greater every ihiy, are ii snre guiiriintee lor us on this head. " L(>t UH calcnlaUi fo*- ji •■ ■- m of twenty yiMirs at "> pi^r cent, and for on(^ of f irl \ Use yrar.-i at ">-i pi^r c(!nt., whiidi iiIuk. np tlu^ t'rni of sixiy-li\e vcars of tno bonds i'lendi'il, by tla; conversion, Id PMilace those actually on Hie market. The interest of .-ifl 4,000,000 at ."> per cent, i.s ."?700,0(iO » year and for 20 years '4,0on,000 The interest of $14,000,000 at ;U jier cent, wnuld be , $490,000 a yearanl dnriuu' forty-live years 22,0.")0,IIOO Tins principal to be paid at maturity 14,000,000 Amount $.')0,0.')0,()00 " Under these oircumstances, the province wonld have to pay, in tli(( conr.si! of sixt_y-live years, in iirinci]>al and interi>st, the snm uf $o0,050,000. '.'Now let us see what wonld be tlu^ nssidt of a conversion nnulii immediately for a term of .sixty-live years at 4 per cent, and a preLninm of 10 per cent : Actual capital $ 14,000,000 rrenuum of 10 per cent, to be added 1,400,000 $1.'),400,000 The annnal interest of $1."),400,000 at 4 per c(Mit. wonld be §010,000. And for the sixty-five years 40,040,000 I'his principal to be paid at maturity 1;3,400,000 Amount $oo,44(),000 " J5y this conversion, the province would pay in the course of six..y-five yeans a total sum of $."k),440,00(I. " Now, let us compare with the SMu to lie paid l)y the provinc* in the ease calculated above : • 7 98 i Amount to bo ))aicl liy the convorBion at ii iiromitim of 10 j>or cent, with intorost lit 4 ycT cent !f5o,440,000 Amount to l)e paid liy a\vuitin<^ tlic maturity ol' tlio Iic.kIs in twenty years and 1)y renlacini' by new l)<)nds at IJi i)er cent, interest for a term of forty-live years 50,0r,0,(K)O Loss to the province by the conversion $ r),3U0,000 "I therefore e.staldiHli by tbe.se figures and in an irrefutable manner that, oven if the annual interest durinj: the lirst twenty years was diminished by |84,()(l(», the higher interest wliicli the province would pay during tlie Ibrty-iivo years with the conversion would in the long run caudo it to sutler a real loss of i^"),;UI(i,00(l. " I have nuide similar calculaHons with a premium of.") and of 15 per con!;. At a pre- mium of 5 i)ercent. tlio loss would amount to §2,870,000 and at one of 15 per cent, it would reach $7,yiO,(X)0. " T therefore conclude that, under the circumstances, it is impossible to effect an advan- tajoous conversion. 1 think that the (iovernment should abaiK'an this scheme for another reason, which is that, to make the conversion, they must renonnco the right of redomi)tion during sixty-tive years, and, consetiuently, also the idea of paying off our debt before that remote date. " T also surely conclude tiiat the (iovernment cannot count on tiie conversion of the debt to diminish tlie expenditure by a large reduction of tiie annual amount to be paid for the interest service." Let us look for a moment into this long spun out dissertation : The hon. member compares a conversion at the maturity of our bonds with an ac'tual conversion. It is perfectly clear that, if you compare on one side a conversion at 3| per cent., and on the other a conversion at 4 per cent., the former must be considered the best, all things being equal. To simplify the question in this way may be very artful, but it is certainly not fair. The hon. member calculates for a term of 20 years at o per cent., and for 45 years at 3^ per cent., which makes up a term of ti') years for the bonds intended by the conversion to replace those actually on the market. The interest of $14,000,000 at ') per cent, is 1700,000 a year, and for 20 ycin-s $14,000,000 The intt^rest bf $14,000,000 at 31 per cent, would be $4!>0,000 a year, and for 4.) years 22,050,000 Plus principal to be paid at mat urity 14,000,000 Amount that we would have to pay at the end of 05 years... $50,050,000 Thus, the amount that we would have to pay at the end of 65 years by a conversion of oiir present })onds effected at maturity would be $50,050,000. As mi»y be seen, he calculates on a conversion iu 20 years at 3 1 per cent. • 1 99 1 But, how doos lu' proreini in the rase of an iramodiate conversion? lie bases his eah-uhitions on a conversion at 4 per tent., and the bonds at 10 per cent, premium, and, on this basis, he gets ;!•');"), 440,000 as the amount we wouhl have to pay in (i.) years by a conversion at 4 j^er cent. Very naturally, in this way, he figures out a loss of #5,890,000. This is how the lion, meinljer calculates. On the one hand, he reckons that, in 20 years, the annual interest will pro])ably bi! reduced to -5i per cent.; and, on the other, he takes for basis a conversion at 4 per ct-nt. From such a standpoint, it is easy to foresee the result of his calculations. It is evident i'rom the figures he uses that it is not the interest of th(> conversion which he has at heart, but a political object which he has in view, and which is that of showing the House and I'ountry that no faith should be attached to the advantages upon which we count from this operation. To attain this end, he selects as the basis ol" his calculations a moderate figure on the side he wishes to defend, and a somewhat higher one, on the side he is anxious to oppose. This is th(^ whole secret of the hon. member's little gam<', which is not more ofiensive than that. What reason is there to believe that we shall not sutM'ced in clt'ect- ing a conversion on more favorable terms than those he has mentioned Y For instance, if the city of Montreal has succeeded i)i lloating a loan at 82f for ;3 per cents., who says that the province would not succeed in elfecting a conversion far above the rate which he uses as the basis of his calculations, say. at ^ per iieut or less, and at a much lower pnnnium on our bonds ? He cannot deny that thtne would be a real advantage in a (conversion carried out on this basis. All his cal(!ulations are useless, to say the least, for they will have no application until the i)roject is regularly enunciated. Needless to say that if the operation i-annot be carried out on desirable terms, it will not be made, heciuise we hnve no intention to ellect a conversion, the results of which would be null. The hon. member does not at any cost desire the sui'cess ol' the oi)eraHon ; he is like the nran who is oi)posed to a thing and wishes to find arguments against it, ))ecause it does not suit his i)urpose. mmmmmm 100 Let 118 uow see what would be the result oi" a conversion at -VJ per cent : The hon. member asks if the w^hole of our eonsolidated debt of $21,570,383 can be converted? " Certainly not, said he. The last loan of $3,500,000 has been negotiated at 4 per cent, interest. There is there- fore no means to convert it." As to this last loan, its conversion would ])e advantageous, if it coiild be effected at 8J per cent. With regard to the French loan, the hon. member is mistaken ; it is convertible. In the statement which the hon. member has submitted, he has calculated at 4 i)er cent, interest and 10 premium for our actual bonds. He has naturally taken the highest figure for the couA'ersion. But a conversion at oi per cent, is quite possible, and, in such case, what would be the result at that rate and at a premium of 10 per cent. for the redemption of our bonds, as the hon. member calculates V To simplify the operation, I take as convertibh^ the same figure as the hon. nnuaber $14,000,000 Actual capital $14,000,000 Add 1 per cent, for premium 1 .400,000 Amount $15,400,000 The annual interest of $15,400,000 at 3J per cent would be $530,000 a year, and fur ()5 years 35.035,000 $50,435,000 Now, let us comi>are with the lirst case calculatrd for a conversion at the maturity of the l)onds : Amorxnt to be luiid for the conversion at 3i per cent, and a l>remium of 10 per cent $50,435,000 Amount to be paid by waiting for the maturity in 20 years of tlie V)onds, and by replatdng with new ones at 3.J ])er cent interest for a term of 45 years 50,050,000 Difference $ 385,000 I establish by these figures that the annual interest during the first twenty years would be reduced by $101,000 a year on $14,000,000, whii'h constitutes an important njduction in the interest service. Th(^ ^• 4- f ■» 1l 101 t !•* only diir«'TOUce with tho second case by \v]ii« h (He conversion would only bo etil'cted at the maturity of the 1)onds, is that we would have to pay in capital and inteivst $:lSo,000 more at the (>nd of d') years, but this surplus wWnild be amply compensated ])y the enjoyment of ij*! 101,000 a year diiring 2i» years, which would i'orm a (capital of i^:5,---0.000 at the end of 20 years. The av-rag-c interest on thes'.> ^ per eent. annuities, calculated at simple interest, would amount to )i^ 1,1 27,000, which, added to i|:;,:)20,000, would form a total of $4,;! 47,000. The use during- 20 yi'ars of a sum, the product of which with interest at U per (^ent. would amount to a capital of s4,:V17,000. would amply comi.ensate for the surplus to be repaid at the end of O') years. On these terms the conversion would be really advantau'eous. From these calculations, it will be Keen that the hon. member lias wrongly chos'.m the less advan- tageous of the two cas 's in ord .r to deprei-iate the advantag.^s of a conversion, which, a.s a matti>r of fact, would immediately ellect a saving of !^1()1,000 a year in the interest service. I shall not carry on (h" discussion on this subji'ct any further with th(^ hon. member, as it would be neither wise nor prudent in the ])ublic interest to do so, whih^ the conversion is still under consideration. Although the conversion is wiihin the domain of actuality, a discussion on this important question WMiuld be unadvisable at the mnnu'iit and mia'ht bi' injurious to tlie cause we have in view. We have already had an example of this evil in conn.'ciion with the negotiation of our last loan. We then saw that our advi'rsaries did not hesitate to throw in its way all tlie obstacles possible. For these reasons. I sluiJl not enter for the moment into ehihorai.' and precise <'alculations to show the exa.t amount .)f prolit In be realized Woui a conversion either at one rate or another. As I have already stat.'d, all such cah-ulations WM)uld l)e inopportune, while our project is not yet on the market. It will be time enough to calculate the prolit when we are brought fa.-e to face with the reality. Ibit 1 contend that if this operation can lie carried on! on tlie desiivd t 'rms, and I c-aiinot see why it .annot be, th.>re would be a real advantage m it. Unfortunately, it' is not by pursuing such a line of conduct as the lion, member has laid down for himself that we shall siU'" 'ed in bring- ing this transaction to a successful issue. It is not by depreciating our credit through misrepresentation of the linancial situation for the sole 102 purpose of injuring a political party ; it is not by exciting the prejudices not only of the electors, but even oi capitalists against the credit of the province by exhil>iting to them falsi; and deceitful statements on the financial situation, that we shall succeed in raising our standing in the money markets of the world. The hon. member knows as well as any one else— and he cannot deny it— that a conversion, not at 4 per cent,, but at a lower rate, would be very advantageous, but, to effect it, our own fellow countrymen must not place obstacles in the way ; on the contrary, it is essential that they should frankly give us their support. Should this undertaking in which the province is so deeply interested suffer a check, it will be due to such men as the hon. member for Montmorency, who is doing all in his power to shake public confi- dence in the soundness of the country's fiuancial condition. ■ Almost all the i-ivilized nations of the world have from time to time resorted to a conversion in order to reduce the interest service on their previous loans and to raise their credit on the money market. In following a similar policy, we have but one thing in view — to lessen tht> burthen on our budget resulting from the ontM-ous loans con- tracted by our predecessors in the House. It cannot be denied that the idea is a patriotic and promising one. Yet how has it bm'n received ? It is bitterly opposed by our own fellow countrymen, and of this we have an example in the conduct of the hon. member for Montmor.Micy, who would prefer to see the operation fail, through fear that its succjess might inure to the benefit of the present administration. This is the great and generous sentiment which animates that hon. gentleman and his party. We can judge of it from his (;riticisra on the Government's finan- cial measure to increase the revenue through the augmentation of the Federal subsidy, which he does not dare to op*>nly opposi' in i)rinciple, but the success of which he does not desire, as it might displease liis friends at Ottawa. He speaks like a man who is in thv; secrets of the gods, knowing beforehand that the men in power at the Federal capital are opposed iq the projecit, not because it is not just and reasonable, but be(^ause that polic-y emanates from our side of the House In connection with this project, as with all others, the hon. member is not afraid to 103 sacrifice the dearest interests of the province rather than displease the masters whom he serves with such slavish fidelity. The hon. member is doing all he can to depreciate this measure, which would be so fraught with good results for us, if it succeeded. From the character of his remarks, it is clear that his whole desire is to see it unfavorably received. Nevertheless, it appears to me that, on a question of this nature, all political dissensions should disappear and Jl, be replaced by an unanimous sentiment — a sincere and loyal desire for the success of a project of so much interest to our province. The hon. member has not a word to say against the policy which is swallowing up millions in the North-AVest ; on the contrary, he finds it admirable, but the moment that a few thousand dollars are in ques- tion for his own province, which has so largely for its part contributed to the development of the other provinces, he and his friends, through fear of displeasing their friends at Ottawa, are ready to sacrifice our dearest interests. On this project of the re-adjustment of the Federal subsidy, he does not dare to attack the principle of the question ; but all the same it is easily seen that he does not want it to succeed. His language was quite the other way in 1883, when an almost analogous measure to the one adopted at the Conference was presented. That measure was then pro- posed by his political friends, and it is well understood that not only did he support it by his vote, but by a speech which can be found in the Hansard of 1883, at pages (JOt, 608, 609, 610, 615, 616, 619, 620 and 621. There was then sound reason in his eyes for this policy ; but now not only does he assail it, but he goes further and expresses doubts as to the possibility of its realization. To-day, he makes objections and acts generally like a man who is afraid that the proposition may be favorably accepted, because it would cast too much glory on his adversaries. It is obvious, too, that his friends are inspired by the same senti- ments, and, if they show as much zeal as he does in depreciating these two measures, which are of the highest importance to the province of Quebec, it is very certain, I say, that we shall not succeed in happily carrying out a policy which should have the support of all who have at heart the progress and advancement of the interests mmmm 104 that thoy should defoiid with all thoir might. It will he upon them that the responsibility of the failure will rest, and their spirit of partial- ity must be very great and incurable if they take that grave responsi- bilitv without shame or fear. Mr. Speaker, I have accomplished the task I had undertaken of not leavi)ig iinanswered a single one of the hon. member for Montmorency'B criticisms and I believe that I have done so. I regret that I have been obliged to take up so much of your time, but it was essential that I should destroy the tissue of fallacies cleverly enough woven together, it is true, but which must have c^ntailed on my hon. friend a very labor- ious task, and which was even prepared long before 1 had delivered my budget speech. Properly speaking, therefore, his reply was not a real refutation of my financial speech, but rather a preconceived statement concoct'^d long in advance with the well settled determination to see nothing good in our administration, and made up for the express pur- pose of misleading, for iwlitical ends, the House and the country as regards the true financial situation. I had consequently to follow up all the threads of his insidious arguments and to show up their weak- ness ; and what have we found ? An entire system of calculations based, as a mtltter of fact, on absolutely false premises. It was necessary to restore order among the mass of figures intended to conceal the truth and, for that purpose, to examine closely his long drawn out demonstra- tion, to go back to his starting point and to make up afresh as they should be my hon. friend's erroneous calculations. I began by showing what were the financial princii^les advocated by the member for Montmorency when his friends were in power, *and it was sufficient for me to contrast them with his present theories to clearly expose the utter futility and absurdity of his criticisms. It has been seen that, while we never neglected to represent the financial situation as it was and that we to-day follow exactly the same rules as when we were in Opposition, he, on the contrary, has never ceased to make his pretended principles suit circumstances and the exigencies of his party, using two scales, one for the Government composed of his friends, the other for his adversaries. I next directly attacked each one of his criticisms on our adminis- tration. A'ituated by a fairer spirit for him than he entertained towards -». 9L^» M lU") aif* nit'. I ans\v*M-od his (nvn words und his i)a1>lic dcchvratioiis and not ti hiniruiiuf which 1 attributed to him and which h(? had uover used, as he did in my ease. Thus 1 have demonstrated tliat the deficits li^ured out by him were contemi)ti})b' fa])rications, that, to reaih that point, he had ]>een obliged to mix up the ordinary and extraordinary budgets, and tliat. ii' he had applied the same rules as he ibrnn-rly did to the budgets of his own friends, a much larger surplus than the real one would have b'cn shown. I also pointed out that he did not rest satislied with painting the situation as regards the expenditure under the most dismal colors, l)ut to make the picture wors(\ he was disloyal .mough not to sav a word as regards the increase, in the revenue, oi' ^800,000, in round lio-ures, an increase which was far above the increase in the expenditure as Compared with 188<), of which he makes such a parade. Lastly,! made up all over again hiscalcuhitions with the greatest care,and corrected them with the help of the official figures, and. on each point, I gavi' the House proof that throughout his entire criticism the hon. member had had but one aim : to mislead a)id deceive it. I have too much ♦•onfi- dence in the spirit of justice, which animates the House and the electors of this province, to believe for an instant that they will allow them- selvi's to be carried away by such clumsy siibterfuges as those to which the member for Montmorency has resorted to disfigure the true financial .situation and to represent it under the darkest and most alarming hues, wh.-n in reality we have succeeded, by dint of hard work, prudi-nce and activity in replacing it on an excellent footing and in rendering it more llourishing than ever. With such a showing, ^^ e can confidently await the judginent of the House and of the province. :«» i ('u.\sri;ri.\(; [xdkx. I lUST l»AUT. !'.\'h;m. .Mr. IVsjanlins, Oj.pnsitinnist, .•„nfV,un.I,.,l l,y Mr. DosjanlinH, ^linistorialist, on tl,.. tdlliiwiii!.' points : Iii.stiii,'ti..ii to l)e iim.l.- Lciwocn onlinarv uii.l oxtnionlinury ImdL'cts (| Distinction to hv. niudu bctw.vn oniinury and .■xtra,.nlinary rc.cii.t.s 7 How he dussified tho spcial cxpon.v. and arrears of rerripts in his finanHal Hpeochi's He did not then take into account the nn, ontr.,MaM<. expenses, servi.v of the debt, redenijition of l)onds, exjienses (-1' niana'-;enient <) Ho a.lv.,cated tlie increase of the ex|,en,linire and c,f the d..ht as si^-us of wealth... -i-lO His tlieories Willi respect to lloati 11^' debts lj_j.. How he made II]) tiie actual debt !„ His enthnsiasni in the past for the consolidation of the tloafinu debt aiul the con- version of the fniided delit ,.> li) He did n.itthen forjet to take into account the increase .,f thi' revenue as aixainst tlie increase of the exi^nditure ^^ How he figured up surphises and rleficits j4 Ho contnidicts him.self and iiis cnvii leaders l.j-lii SECOND PAKT. •Mr. Shehyu's opinions in Opposition corroborated by Hon. .Messrs. Wurtele an Ojierations and results of the fiscal year 1880-87 .),;_;:{] Why the §10(1,000 received from Ontario, and the ^TwS.OOO collected from the com- mercial corporations should be counted in the ordinary receipts of the year... .31-32 Futility of Mr. Desjardins' pretended deficit of $314,000. 3;{_34 f l'Ai.i:.s. Anoxtr:iMnliii:iry ox|«Miilitiiro nt';?ls7,7(;7.7ii wliicli Mr. Dcsjanlin- wislu-s to cniiiit iis an iiriliiiary cxik'usc :'..i-.l7 Mr. lifsjanlin.s' ildi.'it ri't'iitfii ■ :!7 :'>!> Aiiswor tn tlic utiji'i'tioii lliat it is (lani.'i'M\is to crinac a luiil^ri't >>( hpcrial t>.si»Misi's.. -l(M-_' Wliat vMTi' tiK' rral .Irli.-ils in l.ss.'^ an.l lss<.i •l"'-^'' Till' real I i)iiiiiari.«iin U< \'v niaili- tu'twci a tiic unlinary lpii(l;.'ia.s nf 1S,S7-H.S an.l iNS.-.-j-d' fxpondituif inrroa.sed tiv :r;;;V.',-lL':),ll, Imt rcviMine aii),'niciit<'il liy ^-.c,,;,;.,, -)(;-,-)•_> >( ^> iii)i)._ I Why llu' nnt^lanllin'J warranto wore liiirlirr in lss7 aiul isss >:',-A Errors uf Mr. 1 icsjanlins "U tin' ri'snlt cf iiit> lis^'ai year lf5--r)7 Sniii'rinritv S Stiiii-riority -f tlit> oiKTali"n.'< of IM'd over iIiosl- of ISSil .V.Mil I'rojK^r coiupari.son tn \ i'X|H'nsfs ami rcri'iptH of Isss, l.ssi) and IS! HI, and tho.^r of ism; (''--'i:'' .\li|4iration "f an old prini'i])lf of Mr. I Uvsjardins' rc^'iinlin^' the conipari.son of l)nd'.:<'t,s l>y serins of tiircc yoar.M *'"* Conipari.-i ,n lu'twcen i^xpi'ii.s.'s and receipts liv .series of three years sinre l.'^s-.' Ii4-(i7 Same opi-ration for tlie deli